1"

2"

1.#Our#Business"

3"

2.#Pillars#of#Business#Growth"Crea7ng#an#op7mal#revenue#mix#

ͻ��ĞǀŝĐĞ�ĮŶĂŶĐŝŶŐ�ƉĂĐŬĂŐĞƐ�ƚŽ�ƐƵƉƉŽƌƚ�ŐƌŽǁƚŚ�ŽĨ�ŵŽďŝůĞ�ďƌŽĂĚďĂŶĚͻ�WůĂƞŽƌŵ�ƚŽ�ƌŽůůŽƵƚ�ŽǀĞƌůĂLJ�ĮŶĂŶĐŝĂů�ƐĞƌǀŝĐĞƐ

4"

3.#Subscriber#Growth"Strong#market#leadership#

Subscriber growth

0

1

2

3

4

5

6

7

8

9Millions

2011 2012 2013 2014(August)2014

Voice Broadband EcoCash

Market share analysis

Source: Internal Analysis

Zimbabwe Mobile Subscriber Share: as at 31 August 2014

Telecel NetOneEconet

65%

Econet

Telecel

NetOne

18%

17%

5"

4.#Country#Posi7on"Solid#investment#

Source: BuddeComm

Angola Zambia85%73%

Mozambique56%

Zimbabwe106%

Botswana159%

Namibia117%

South Africa154%

Lesotho71%

Swaziland86%

WĞŶĞƚƌĂƟŽŶ�Ͳ�DŽďŝůĞ�

6"

5.#Broadband#Penetra7on"Evolving#landscape#

7"

6.#Econet#Market#Presence"Enhancing#customer#experience#

8"

7.#Opera7onal#Highlights"

9"

7.1#Econet#Broadband"Success#of#our#Broadband#offering#

10"

7.2#EcoCash"Exci7ng#developments#

11"

7.3#LifeMtransforming#Solu7ons"Enriching#lives#

ͻ�ZĞƉƌĞƐĞŶƚƐ�Ă�ƐŵĂƌƚĞƌ�ǁĂLJ�ŽĨ�ůĞĂƌŶŝŶŐ�ĂŶĚ�ŽīĞƌƐ�Ă�ǁĞĂůƚŚ�ŽĨ�ŬŶŽǁůĞĚŐĞ�Ăƚ�LJŽƵƌ�ĮŶŐĞƌƐ

ͻ�^ŝŐŶŝĮĐĂŶƚůLJ�ƌĞĚƵĐĞĚ�ďĂƌƌŝĞƌƐ�ƚŽ�ŝŶĨŽƌŵĂƟŽŶ�ĂŶĚ��ĞĚƵĐĂƟŽŶ�

ͻ�EĞǁ�ƌĞǀĞŶƵĞ�ƐƚƌĞĂŵ�ĨŽƌ�ƚŚĞ�ďƵƐŝŶĞƐƐͻ��ŽŶŶĞĐƚƐ�Ăůů��ůĞĂƌŶĞƌƐ�ĂŶĚ�ƉƌŽǀŝĚĞƐ�Ă�ŐŽŽĚ�ƉůĂƞŽƌŵ�ĨŽƌ�ĚĂƚĂ�ƵƉƚĂŬĞ

Connected learners

12"

8.#Preserving#and#Crea7ng#Shareholder#Value"Posi7ve#long#term#return#on#investment#

Share Price Performance

13"

14"

1.#Group#Highlights#"Driving#revenue#growth#through#strategic#investments#

Subscribers#(m)# EBITDA#(US$m)#Revenue#(US$m)#

Capex#(US$m)#Data#Revenue#(US$m)#Ecocash#Revenue#(US$m)##

""

U"

Aug-13 Aug-14

8.5 9.0 6%

Aug-13 Aug-14

377# 392#

4%

AugM13# AugM14#

169 155

AugM13# AugM14#

#13###27##

110%

AugM13# AugM14#

#85## #79##

AugM13# AugM14#

#33###56##

68%

15"

2.#Revenue#

[CATEGORY NAME]

[VALUE](77%)

[CATEGORY NAME]

[VALUE](4%) [CATEGORY

NAME] [VALUE](9%)

[CATEGORY NAME]

[VALUE](5%)

[CATEGORY NAME]

[VALUE](3%) [CATEGORY NAME]

[VALUE](2%)

Revenue#(US$m)# Non-voice Revenue (Excl. SMS & Beverages) (US$m)

""

0#

130#

Aug-12 HY to Feb-13

Aug-13 HY to Feb-14

Aug-14

30# 40# 63# 76#110#

CAGR#92.0%#

""

Aug-12 HY to Feb-13

Aug-13 HY to Feb-14

Aug-14

340# 356# 377# 376# 392#

CAGR#7.4%#

Revenue#Composi7on#

""

Contribu7on#to#Total#Revenue#Trends#

""

6%# 7%#9%#

10%#

14%#

1%# 2%#3%#

5%#7%#

0%#

10%#

20%#

AugM12# HY#To#FebM13# AugM13# HY#To#FebM14# AugM14#

Data## Ecocash#

Voice67%(77%)

SMS 3%(4%)

Broadband14%(9%)

Overlay Services10%(5%)

Other6%(5%)

Note:&Prior&year&figures&in&brackets& 16"

Sustained#Revenue#growth#and#changing#revenue#mix##

•  Data driving growth •  EcoCash driving growth •  Decline in voice revenue is lower

than local market average of 15%

•  Decline in voice and SMS ARPU partially compensated by increase in data ARPU

•  ARPU figures remain fairly competitive

ARPU#(US$)#

""

Revenue#Growth#

""

3.#Revenue#&#ARPU###

Aug-13 Aug-14

10.8 9.9

Aug-12 Aug-13 Aug-14

13 11 10

Revenue#(US$m)#

""

AugM13# Voice# SMS## Broadband# Overlay#Services#

Other# AugM14#

$377# $392#

M7.1%#

M1.2%#6.0%#

5.0%#1.5%#

Aug$13 Voice SMS Broadband OverlayServices

Other Aug$14

$377 $392

$7.1%

$1.2%6.0%

5.0%1.5%

17"

Sustained#ARPU#through#revenue#diversifica7on#

4.#Broadband#Revenue#Growth#Evolving#the#business#from#minutes#to#bytes#

Growth driven by: •  Introduction of innovative data

bundles (eg Facebook and WhatsApp) •  Investment in extended 3G capacity

and coverage •  Clear concise and compelling value

propositions driven by a strong communication and awareness plans

•  Improved smartphone penetration

•  Consumer preferences and spend patterns are becoming more data based

•  Strong infrastructure pillars built to support future growth

Broadband#contribu7on#

""

Revenue#(US$m)#

""

Aug-13 Aug-14

33 56

68% $56m

14%"of"""Revenue"

18"

EcoCash#contribu7on#

""

Revenue#(US$m)#

""

Aug-13 Aug-14

13

27

110%

$397

$27m

7%"of""Revenue"

5.#EcoCash#Revenue#Growth#Excellence#in#execu7on#

•  Support"from"Steward"Bank"in"agent"liquidity"•  MMT"services"a"key"strategic"lever"in"

retaining"customers"•  Strong"correlaHon"between"EcoCash"

customers"with"consistent"ARPU"and"consecuHvely"acHve"voice"&"data"customers"

Revenue#increase#driven#by:##•  Greater"awareness"of"product"Diversity"of"

product"range"Strong"brand"affinity,"convenience"and"funcHonality"

•  Agent"network"a"key"strategic"advantage"•  EffecHve"pricing"model"that"incenHvises"the"

distribuHon"and"agent"network"•  EcoCash"debit"card"likely"to"be"a"strong"

offering"to"drive"further"adopHon"

19"

6.#Total#Costs#

Total#Costs#(US$m)#

""

Aug-12 HY to Feb-13

Aug-13 HY to Feb-14

Aug-14

187 205 211 225 250

Total#Costs#(US$m)#

""

•  9% increase in network costs despite 17% increase in sites demonstrating better cost efficiency

•  18% decline in marketing expenditure through effective cost rationalisation

•  Power availability remains a key factor adversely affecting network costs

•  Increase in network and computer costs due to increase coverage and investment in more sophisticated billing systems that allow for more effective bundling and pricing mechanisms

•  Direct costs increase due to increase in MMT commissions and cost of sales related to devices

Direct#Costs#(US$m)#

""

AugM13# AugM14#

#98###118##

General#Admin.#

Network# Computer#costs##

Employee#Benefits#

Interconnect#&#Roaming#

Marke7ng,#Sales#&#

Distribu7on#

#Direct##

#40##

#72##

#5##

#39###27## #26##

#16##

#46##

#71##

#10##

#47##

#23## #22###31##

AugM13# AugM14#

20"

Inves7ng#in#the#future#

7.#EBITDA#Margins##

EBITDA#(US$m)#

""

EBITDA#Margin#

""

Aug-13 HY to Feb-14

Aug-14

45% 43% 40%

Aug-13 HY to Feb-14 Aug-14

169 163 155

•  Decline due to changes in product mix

•  EBITDA margin expected to recover through growth in data and overlay services revenues

21"

Delivering#robust#EBITDA#

8.#Taxa7on#

•  Effective tax rate 36% (HY2013: 33%)

Taxa7on#(US$m)#

""

Aug-13 Aug-14

36 28

Effec7ve#Tax#Rate#

""

Aug-13 Aug-14

33% 36%

•  Tax charge declined in line with profit before tax

22"

Managing#our#statutory#obliga7ons#

9.#Deprecia7on#and#Amor7sa7on#

Deprecia7on#&#Amor7sa7on#(US$m)#

""

Aug-13 Aug-14

46 60

•  Depreciation as a % of depreciable asset base increase from 5.3% to 6.7%

•  Depreciation levels are reflective of the high level of technological changes in telecommunications

•  Depreciation ratios comparable to the industry norms

Depn#&#Amort./Asset#Base#(%)#

""

Aug-13 Aug-14

5.3% 6.7%

•  Depreciation as a % of revenue at 15% reflective of level of capitalisation

•  Depreciation affected by high capitalisation phase over the last 5 years post hyper-inflation

•  Approximately 15% of the increase in depreciation and amortisation is due to the licence renewal

23"

Unique#stage#in#our#development#cycle#

10.#Profit#Aeer#Tax#

•  PAT higher than second half of FY2014

•  Data and EcoCash revenue growth are expected to continue to impact profitability"

•  Depreciation and amortisation growth higher than other MNOs due to: -  High capitalisation post

hyperinflation -  Amortisation of licence"

PAT#(US$m)#

""

PAT#(%)#

""

Aug-13 HY to Feb-14 Aug-14

71 49 50

Aug-13 HY to Feb-14

Aug-14

19% 13% 13%

24"

Delivering#strong#shareholder#returns#

Focus#on#key#revenue#drivers#in#CAPEX#investments#

11.#Capital#Investment#

CAPEX#(US$m)#

""

CAPEX/REVENUE#(%)#

""

Aug-13 Aug-14

23% 20%

Aug-13 Aug-14

85 79

•  Continued investment in: -  3G coverage and

capacity -  LTE (4G) roll-out -  Network optimisation -  Transmission network "

•  Declining CAPEX to revenue ratio"

25"

12.#Cash#Genera7on#

•  Impact of payment of US$ 137.5 million licence still apparent in the working capital gap

•  Additional facilities secured to finance additional CAPEX requirements

•  Cash flow in August 2013 distorted by effect of working capital strategy to finance licence renewal fee payments

Net#Current#Assets/Liabili7es#(US$m)#

""

U120"U60"0"

60"120"

AugM12# AugM13# AugM14#

66#

M66# M42#

Maintaining#strong#cash#flow#genera7on#

Net#Working#Capital#Movements#(US$m)#

""

"(50)"

"U""""

"50""

"100""

AugM12# AugM13# AugM14#

M9#94#

8#

26"

Cash#flow#From#Opera7ons#(US$m)#

""

AugM12# AugM13# AugM14#

122#186#

117#

13.#Borrowings#

•  Debt to equity ratio continues to decline

•  Effective interest rate remains at approximately 13%

Balancing#debt/CAPEX#requirements#

Debt#to#Equity#(%)#

""

Debt#Evolu7on#(US$m)#

""

Aug-13 Feb-14 Aug-14

247 240 255

Aug-13 Feb-14 Aug-14

45% 40% 37%

Net#Interest#Expense#(US$m)#

""

Aug-13 Aug-14

17 17

27"

Broadband & Overlay Services remain the growth drivers

Increase in costs to sustain revenue growth

Focus on quality and new revenue drivers

Focus on margin improvement

Focus on continuing to reduce debt

Sustaining and improving free cash flow

In#Conclusion…#

28"

29"

Outlook"

30"

Staying#ahead#of#the#curve#

31"

Statement#of#Financial#Performance#

US$000’s# Aug-14 Aug-13 Variance (%)

Revenue 392,342 376,558 4% EBITDA 154,976 169,089 -8% Depreciation, amortisation & impairment (60,403) (45,746) -32% Operating profit 94,573 123,343 -23% Net finance costs (17,031) (17,270) 1% Profit before tax 77,542 106,073 -27% Income tax expense (27,923) (35,506) 21% Profit after tax 49,619 70,567 -30%

Non-controlling interests 340 (61) 657%

Attributable profit 49,959 70,506 -29%

EBITDA Margin 40% 45% -5% PAT Margin 13% 19% -6%

US$000’s# Aug-14 Aug-13 Variance (%)

Revenue 392,342 376,558 4% EBITDA 155,013 169,089 -8% Depreciation, amortisation & impairment (60,403) (45,746) -32% Operating profit 94,573 123,343 -23% Net finance costs (17,031) (17,269) 1% Profit before tax 77,542 106,074 -27% Income tax expense (27,923) (35,506) 21% Profit after tax 49,618 70,568 -30%

Non-controlling interests 340 (61) 657%

Attributable profit 49,958 70,507 -29%

EBITDA Margin 40% 44% -4% PAT Margin 13% 19% -6%

32"

Statement#of#Financial#Posi7on#

US$000’s# Aug-14 Feb-14 Variance (%) ASSETS

Property, plant & equipment & Intangibles 904,386 884,150 2% Other non-current assets 66,611 58,805 13% Current assets 296,515 230,709 29% TOTAL ASSETS 1,267,512 1,173,664 8% EQUITY & LIABILITIES Share capital 40,741 37,449 9% Other reserves 1,702 463 268% Retained earnings 622,907 561,883 11%

Minority interest 3,584 3,924 -9%

Total Equity 668,934 603,719 11%

Long term interest-bearing liabilities 147,515 134,852 9% Deferred taxation 113,477 109,838 3%

Current liabilities 337,586 325,255 4%

Total Liabilities 598,578 569,945 5% TOTAL EQUITY & LIABILITIES 1,267,512 1,173,664 8%

33"

Statement#of#Cash#Flows#

US$000’s# Aug-14 Aug-13 Variance (%)

Cash generated from operations 150,325 209,361 -28%

Tax paid (33,369) (22,987) -45%

Net cash from operating activities 116,956 186,374 -37% Acquisition of property, plant and equipment and intangible assets (80,013) (205,286) 61%

Other investing activities (25,033) 31,180 -180%

Cash used in investing activities

(105,046) (174,106) 40%

Cash used in financing activities 11,242 (50,557) 122%

(Decrease)/Increase in cash & cash equivalents 23,152 (38,289) 160%

Cash and cash equivalents at the beginning of year 71,331 78,229 -9%

Cash & cash equivalents at the end of the year 94,483 39,940 137% 

US$000’s# Aug-14 Aug-13 Variance (%)

Cash generated from operations 124,965 242,007 -48%

Tax paid (33,369) (22,987) -45%

Net cash from operating activities 91,596 219,020 -58%

Acquisition of property, plant and equipment (80,013) (205,268) 61%

Other investing activities 328 (1,467) 122%

Cash used in investing activities

(79,685) (206,753) 61%

Cash used in financing activities 11,242 (50,557) -122%

(Decrease)/Increase in cash & cash equivalents 23,153 (38,290) 160%

Cash and cash equivalents at the beginning of year 71,331 78,230 -9%

Cash & cash equivalents at the end of the year 94,484 39,940 137% 

34"

Disclaimer#

US$000’s# Aug-14 Aug-13 Variance (%)

Cash generated from operations 124,965 242,007 -48%

Tax paid (33,369) (22,987) -45%

Net cash from operating activities 91,596 219,020 -58%

Acquisition of property, plant and equipment (80,013) (205,268) 61%

Other investing activities 328 (1,467) 122%

Cash used in investing activities

(79,685) (206,753) 61%

Cash used in financing activities 11,242 (50,557) -122%

(Decrease)/Increase in cash & cash equivalents 23,153 (38,290) 160%

Cash and cash equivalents at the beginning of year 71,331 78,230 -9%

Cash & cash equivalents at the end of the year 94,484 39,940 137% 

35"

36"

Thank#You"