© VimpelCom Ltd. 2016 Global Partnerships for Local Impact Rabat – 28 March 2016 Tomas Lamanauskas Group Director Public Policy 1 Empowering people through digital opportunities © VimpelCom Ltd. 2016 “Our Vision is for our business to play a key role in the socioeconomic success of the communities where we operate by providing high quality services to our customers, behaving as a responsible corporate citizen, and leveraging our technology to support development.” Alexey M. Reznikovich Chairman of the Supervisory Board 2 Digitization is changing the global economy From To Tangible Intangible Dependence Interdependence Multinationals Start-ups & SMEs © VimpelCom Ltd. 2016 Tangible flows of physical goods Innovation flows from advanced economies to emerging markets Multinationals drive growth in knowledge and innovation 3 Intangible flows of data and information Innovation flows between advanced economies and emerging markets Start-ups and SMEs disrupt industries and have a global reach Based on McKinsey Global Institute (Digital Globalization: The New Era of Global Flows, March 2016) © VimpelCom Ltd. 2016 Fueled by global data flows… 4 © VimpelCom Ltd. 2016 …and becoming slightly better distributed 5 Arab States outpace other regions in terms of connectivity growth… Mobile broadband subscriptions (per 100 inhabitants) © VimpelCom Ltd. 2016 Individuals using the Internet (per 100 inhabitants) 90 90 80 80 70 70 60 60 50 50 40 37.0 30 30 20 20 10 10 8.3 5.1 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Africa 6 40.6 40 Arab States Europe The Americas 2011 Africa 2012 2013 Arab States 2014 2015* Europe Source: ITU The Americas …but 230 million people remain unconnected © VimpelCom Ltd. 2016 World 7 Arab Region Connected Unconnected Connected Unconnected 3.2 billion 4.1 billion 155 million 230 million (43.3%) (56.7%) (40.3%) (59.7%) Based on the ITU data Challenges remain: Internet use Individuals using the Internet (per 100 inhabitants) 92 91 90 140 79 © VimpelCom Ltd. 2016 Mobile broadband subscriptions (per 100 inhabitants) Developed 75 64 57 106 99 Developed 46 44 World 32 28 74 54 25 Developing 18 48 44 World 27 11 8 126 114 70 11 27 21 Source: ITU, Data for 2014 19 14 Developing 6 3 Challenges remain: international bandwidth Developed (198) International bandwidth per Internet user (kB/s) © VimpelCom Ltd. 2016 67.74 50.1 49 44.5 33.7 30.5 25.9 Regional average 23.9 12.5 10.8 9.3 8.9 7.9 4 9 2.5 1.4 Source: ITU, Data for 2014 Challenges remain: connected devices per capita Number of connected devices per capita 2014 > 2019 4.4 > 8.2 Europe (West) © VimpelCom Ltd. 2016 6.1 > 11.6 North America 2.4 > 4.3 Europe (East) 1 > 1.4 Middle East & Africa 1.6 > 2.5 Asia Pacific 2 > 2.9 Latin America 10 Source: Cisco VNI Mobile Why it is important: direct contribution from the mobile ecosystem © VimpelCom Ltd. 2016 Contribution to GDP $122B Contribution to public funding $13B $161B $18B Contribution to employment 2015 2020 11 1M 1.4M Source: GSMA © VimpelCom Ltd. 2016 Why it is important: growth 12 Source: Intel © VimpelCom Ltd. 2016 Why it is important: financial inclusion 13 © VimpelCom Ltd. 2016 Why it is important: jobs and income 14 Source: PayFort, Data for 2013 ICTs are key enablers for the SDGs © VimpelCom Ltd. 2016 “The 2030 Agenda for sustainable development has embraced the spread of ICTs of having great potential to accelerate human progress” (United Nations) 15 © VimpelCom Ltd. 2016 VimpelCom 16 © VimpelCom Ltd. 2016 VimpelCom 17 Mobile customers 217m Population covered 740m Mobile customers 17 Leading mobile operator Average country IDI Rank: 87 Data transmitted 1.13m TB Country IDI rank 113 Data per user 416MB © VimpelCom Ltd. 2016 VimpelCom: customer-centric strategy Customer 18 Example: Mobile Financial Services 7 markets 30m users © VimpelCom Ltd. 2016 40m monthly transactions Financial coverage in markets with significant levels of underbanked 465m underbanked within VimpelCom’s footprint Gender equality: 40% of our MFS operations are headed by women Airtime transfers form the basis of our services in Algeria 19 Policy areas that are gaining importance Cloud Services Network Integration 5G / Spectrum … E-Health SDN / NFV / Converging Networks eID Internet of Things / M2M Media / Video Cybersecurity MFS © VimpelCom Ltd. 2016 Privacy / Data Transfers E-Commerce Platforms / OTT Industrial Internet Big Data / Data Analytics Broadband for Development New National Security Challenges Traditional areas are still important: licensing, infrastructure, competition, interconnection, international bandwidth, universal services / access, retail regulation, taxation… 20 For success… Local impact, knowledge and expertise Funding to fuel development © VimpelCom Ltd. 2016 Private sector International community Best practices and international solidarity 21 Investors National Governments Enabling policy, legal and regulatory environment Enabling environment for ICTs © VimpelCom Ltd. 2016 Confidence and trust Access to ICT infrastructure Access to e-development applications 22 “Successful reforms must take into account the need for comprehensive changes that cut across traditional technological and commercial boundaries” (World Bank) Enabling environment for ICTs: innovative approaches for policymaking © VimpelCom Ltd. 2016 Outcome-based regulation 23 Speed of technological change demands forward-looking, principles-based regulations with clear intent, rather than prescriptive regulations Co-regulation Rules and codes developed by the industry, in consultation with the government, and with legislative backing should be considered as alternatives to direct regulation Self-regulation Where appropriate, self-regulation may be adopted, for which industry itself is responsible for enforcement Partnerships are key to our success © VimpelCom Ltd. 2016 “Sustainable development can only be achieved with a broad alliance of people, governments, civil society and the private sector, all working together to secure the future we want” (UN General Assembly) 24 Our commitment to local development Flagship programme Algeria © VimpelCom Ltd. 2016 Djezzy has launched ‘iMadrassa’, a new digital tutoring service, aimed at helping high school students in Algeria prepare for their graduation examinations. The goal of MYM is to empower young people to make a positive difference, through increased access to education and through inspiring social entrepreneurship, particularly in the digital arena. Learn more: http://www.vimpelcom.com/Responsibility/Make-your-mark/ 25 Djezzy has been supporting national competitions to develop new applications and promote local developers. These were held at two Djezzysponsored events, the first-ever ‘3G Cup Algeria’, and the third FIKRA Conference. As part of its efforts to support youth education, Djezzy has opened a new reading room in the city´s historic Casbah; working with the Casbah Association. Tomas Lamanauskas Group Director Public Policy Tomas.Lamanauskas@vimpelcom.com © VimpelCom Ltd. 2016 Thank you www.vimpelcom.com 26