Sonatel : Financial results 1st semester 2021 Sonatel Group

Financial Results

S1 2021

Warning !

This presentation contains information that may be deemed to be forecast.

Regarding the outlook, although the Company believes that these declarations and information are based on reasonable assumptions at the date of publication of this press release, they are by nature subject to risks and uncertainties, which may give rise to a difference between actual figures and those indicated or implied in these declarations and information.

SONATEL cannot guarantee or be responsible for the accuracy, completeness, consistency or effectiveness of any of the statements or information given in this press release relating to forecast data.

2

Key Figures

#1

Country of

presence

Market

GDP* : 15 035 GXOF

GDP Growth* : 5.2%

Inflation* : 2.03%

Population* : 17.2 million

Penetration : 116.25%

Market share: 55.03%

Position : Leader

4G Coverage : 81.6%

SénégalSenegal

GDP* : 874 GXOF

GDP Growth* : 3%

Inflation* : 2%

Population* : 1.86 million

Penetration : 90%

Market share : 51.84%

Position : Leader

4G coverage: 58%

Bissau

Gui nea

GDP** : 9 060 GXOF

GDP Growth** : 5.6%

Inflation** : 12.3%

Population* : 12.9 million

Penetration : 119%

Market share : 59%

Position : Leader

4G Coverage: 69.2%

Guinea

GDP* : 10 720 GXOF

GDP Growth* : 4.02 %

Inflation* : 1.67 %

Population* : 20.2 million

Penetration : 103.9%

Market share : 58.4%

Position : Leader

4G Coverage : 88%

Mali

GDP* : 2 540 GXOF

GDP Growth* : 3.04%

Inflation* : 15.50%

Population* : 8.2 million

Penetration : 80.6%

Market share : 51.6%

Position : Leader

4G coverage : 38%

SierraSierraLeoneone

• *Economic data: source IMF April 2021
• ** Economic data: source ADB 2021

Market and Competition

Highlight

• Orange remains the leader in volume market share in all of its countries of presence. Resumption of leadership in Bissau.
• Very aggressive competition on Mobile money with the rise of the challenger in Senegal.
• Launch for Orange Money response on June 1 in Senegal
• Increased penetration of mobile, data and OM services

Business

• Very good sales momentum in all countries of presence
• Regain on mobile prepaid in Senegal thanks to the effects of the new offers.
• Launch of 4G+ in Sierra Leone. Maintenance of the floor price applied since 2020
• Strong entry of the new symmetrical interconnection tariffs with the main competitor at 2.5 FCFA / min.
• Tariffs reform on mobile data and OM in Mali with a positive impact on volume elasticity.

Performance

• Significant revenue growth driven by all countries despite the Covid19 context and a price war on mobile Money in Senegal
• Improved profitability and growth in Free Cash Flow
• Maintenance of investment, particularly on very high speed
• Diversification operations: SBIN partnership with the State of Benin, with Envol Technology on the SOGEM / OMVS project

Environment

• Stable pandemic situation in S1 2021
• Tense security context in northern Mali with ongoing attacks and the suspension of military operations by France
• ECOWAS and AU have decided to suspend Mali from all their institutions until constitutional order is restored
• Riots in Senegal during the month of March
• Good progress of the cashew campaign in Bissau
• Currency exchange issue for the Leone and the Guinean Franc

Regulation

• Arrival of Hélios Towers in Senegal with the purchase of the towers of the main competitor
• Introduction of surcharges on calls to Guinea Conakry (20F / min) and Bissau (5F voice on net, 3F sms and 5% on other data and SVA services)
• Guinea's suspension of Free Roaming agreements
• Obtained additional frequencies in Guinea (U900, TDD2600) for $ 12.5 million
• Inauguration of the 1st rural site of the ASAP project in Bissau
• Suspension of IVS in Senegal
• Recovery in Sierra Leone by Natcom for the use of unauthorized frequencies and by the NRA tax authorities (withholding tax, BNC)