Bringing Light and Hope to Afghanistan

The Private Sector as a Catalyst for Change Potential Roles of Businesses in Challenging Environments

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 1

Roshan

Afghanistan: Country Overview

       32 million people:   3% growth per annum.

60 million people by 2050.

 50% of the population below 15 years.

Literacy rate is approximately 30%.

Life Expectancy:   Female: 44.0 years.

Male: 43.6 years.

53% of populations lives below the poverty line.

Unstable security environment, increasing security issues outside of the turbulent south.

Poor infrastructure: limited roads, power and transportation systems.

Afghanistan is the second most corrupt country according to Transparency International’s Corruption Perceptions Index.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 2

Roshan

Backed by Experienced Partners

 Roshan is owned by an international consortium comprising the Aga Khan Fund for Economic Development (AKFED), Monaco Telecom International (MTI) and TeliaSonera: The Aga Khan Fund for Economic Development (AKFED) – 51%  Roshan’s majority shareholder, is part of the Aga Khan Development Network (AKDN) and promotes private initiatives and building economically sound enterprises in the developing world. Monaco Telecom International (MTI) – 36.75%  MTI is a 100% subsidiary of the Monaco Telecom Group; MTI Group’s shareholding includes Cable & Wireless.  MTI operates in Afghanistan, Algeria, Kosovo and Tunisia.

TeliaSonera – 12.25%  A Swedish- Finnish company, TeliaSonera is the leading telecommunications company in the Nordic and Baltic regions.

  Strategic partners, including the Asian, French and Germany Development Banks, help Roshan extend the reach of its network to the most remote and rural areas of the country.

Part of the Vodafone Partner Markets program.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 3

Roshan

AKFED’s Approach to Development

 Long-term investments in developing countries with the aim of promoting entrepreneurship and building economically sound enterprises.

 Creating operating companies that provide essential infrastructure, goods and services.

 A “hands-on” approach through the provision of managerial and technical expertise.

 Bold, but calculated investment, in environments that are fragile and complex with the prospects of improving the lives of people Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 4

Roshan

Our Values

 Ethics  Integrity  Social Responsibility  Respect  Commitment  Focus. Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 5

Roshan

Why Telecommunications?

 A 10% increase in mobile penetration in a developing country can have a 0.6% positive impact on GDP.

 The

“single most transformative tool for development.”

 Mobile phone is an extremely significant vehicle to:  Improve security.

 Extend financial and economic opportunities.

  Provide information.

Improve livelihoods for isolated and insecure communities.

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Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 7

Serve as a Catalyst for Change

Roshan

The Fastest Growing Market in the World

Roshan Entrance 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2003 4 th Operator 2004 2005 2006 5 th Operator 2007 2008 2009 2010 2011 2012 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Subscribers Penetration  Fastest growing mobile market in the world:  Roshan’s subscriber base has grown from 30,000 in 2003 to 4.4 million today.

  Market has grown to about 13 million total subscribers. Hyper-competitive market with five operators, two of which are major regional players.

 Mobile penetration rate has risen to 35%.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 8

Roshan

Afghanistan’s Leading Telecommunications Provider

Widest nationwide coverage:

 More than 230 cities and towns.

  All of Afghanistan’s 34 provinces.

Over 60% of the population.

A regional focused business:

 Look at each region differently.

 How can we improve the overall customer experience?

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 9

Roshan

Creating an Identity for Afghans

 No Afghan brand and limited foreign brand recognition.  Conducted focus group to choose name Roshan, which means light and hope in Dari and Pashto.

 Slogan: Nazdik Shodan – “Bringing you Closer”  First billboard with Afghans, including females.

 Sponsored cultural and music programming, including Afghan Star.

 First Brand Ambassador, Farhad Darya, who speaks to Afghans of all ages.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 10

Roshan

Touching the Customer

 Built largest distribution network in Afghanistan:  Creating jobs and building entrepreneurial spirit in the country. Developing a middle class.

 30,000 jobs created throughout the country.

 More than 2,600 points of presence, as well as 300 kiosks and 8 flagship shops nationwide.  More than 5,700 Public Call Offices (PCOs) to provide access to telecommunication services and 120 WPCOs.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 11

Roshan

Setting Standards in Customer Care

 Introduced the concept of Customer Care to Afghans:  Intense training programs, including product training, system navigation and soft-skills development.  First western-style Customer Care Centre in Afghanistan:  Equipped with a multi-lingual Interactive Voice Response (IVR) system that supports Dari, Pashto, and English.  Over 160 seat Customer Care Centre.

 Setting standards in Customer Care, including outbound calling campaigns, loyalty and retention programs and specialized support for dealers.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 12

Roshan

Afghanization for Today and Tomorrow

 Creating jobs, training the leaders of tomorrow and fostering entrepreneurial spirit.

 Average age of employee is 23, barely high school educated and from refugee camps.

 Afghanization focused.

 Roshan directly employs more than 1,200 persons:  93% are Afghan nationals, representing all ethnicities.

  55% of Senior Management Team are Afghans.

20% of employees are women.

 Investing more than $1,500 per year per employee in training programs. Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 13

Roshan

A Catalyst for Change

Roshan Community

is a driver in the reconstruction of Afghanistan, investing in the communities in which Roshan operates, reducing distress, and educating to build human capacity and potential.     Supporting educational activities by serving nearly 500,000 meals each year Providing educational scholarships Dubbing children’s programming in Dari and Pashto Building fifteen playgrounds and three schools for children who are the future of Afghanistan.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 14   Providing women with technical training through Cisco Networking Academies Program to bridge the digital divide Building entrepreneurial spirit through 120 Women’s Public Call Offices.

  Telemedicine project with the French Medical Institute for Children, the Aga Khan University Hospital, Bamyan Provincial Hospital and Cisco to touch, save and improve human lives. Built 58 wells across the country to keep communities healthy.

Roshan

Segmentation to Meet Customer Needs

Urban Housewife Small Bus. Owner High End User Student Young Urban Woman Young Professional Farmer

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 15

Roshan

Innovation for Tomorrow

Health Information Services Education Networking Content Mobile Money  Services Roshan provide need to fill gaps because infrastructure is still absent in Afghanistan.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 16

Roshan

Afghanistan’s Leading Telecommunications Provider

 Largest GSM operator in the country with leading market share.

 Approximately 4.4 million subscribers.

 Afghanistan’s largest private investor with over $450 million invested to date.

 Largest taxpayer with $178m, comprising 6% of Afghan Government’s overall domestic revenue.

 Setting the benchmark on new products and services, customer service and corporate governance.

 Catalyst for development through Roshan Community.

Roshan Corporate Presentation TDCA Ltd. Confidential February 2011 – Page 17