Orange Money Branchless banking: progress & potential for new business models Aurore NOUMAZALAY – Marketing @ Orange Money European Microfinance Week 2011 - Luxembourg, Nov 3rd 2011

Orange Money is launched in 8 countries, with already more than 2 Orange Money is launched in 8 countries, with already more than 2.8 million customers Cameroon launched in May 2010 Mali Launched in September 2011 Senegal Launched in June 2010 Launched in June 2010 Niger Kenya Ivory Coast Launched in Oct 2010 Launched in Dec 2008 + 1 million customers Madagascar Orange Money is the Orange branded mobile money product designed exclusively for emerging countries with low banking penetration Available in 8 countries. It is a must have products for all our AMEA affiliates and will be launched in all our footprint by end of 2012 (except regulatory issues or exceptional situations like political turmoil ….) Launched in Sept 2010 Botswana Launched in August 2011 Orange Money countries Orange AMEA footprint

… and innovative merchants accepting Orange money as a mean of payment Orange Money launched in partnership with leading banks on African Market … Partnership to issue electronic money and to apply compliance framework Partnership to distribute Orange Money services across the bank & MFI distribution channels … and innovative merchants accepting Orange money as a mean of payment Orange Money used to pay for Orange bills, electricity bills, TV programs, school fees …. Orange’s initial strategy has been to team with banks BNP Paribas if they have a subsidiary NIGELEC

Link with account at financial Institution (bank, MFI) Orange Money’s basic value proposition is to transfer, pay & buy with the mobile Need to hold an Orange line to open a wallet Compatible with all mobile handsets Account open free with no minimum amount basics money in money out access Orange Money Account Salary disbursement Merchant Payment National Money Transfer Link with account at financial Institution (bank, MFI) Bill Payment Airtime Top up Most common usages today: secure money in the wallet & top up mobile. Banked users influence penetration among unbanked populations (transfer, salary payment …) Reaching the BOP is a challenge: need to adapt regulatory environment, improve product design, extend agent network & built new business models (KYC, user interfaces, cash out points …) Services available at agents: cash in, cash out On line account management: balance enquiry, mini statement access

Our ambition is to attract the unbanked and deliver financial services on top of Orange Money Orange Money is the primary “financial account” + money transfer services + mean of payment at acceptance network transfers payments account Bank/MFI provides financial services for OM customers = interest bearing account + credit @ lower interest rates savings credits Insurance company provides micro-assurance for OM customers = health …. insurance

Get additional revenues as MNO cash agents MFI have been traditionally considered as users of Orange money platform or cash managers in the agent network INTEREST FOR MFI Improve service to existing customers through the MNO mobile banking platform Get additional revenues as MNO cash agents MFI integrates technically to MNO’s platform to offer mobile based loan disbursements, repayments and saving deposits to customers Orange provides mobile based money transfer to unbanked & payment acceptance network MFI branches are part of the MNO agent network and ensure cash liquidity for agents/customers MFI pays fee to MNO MFI optimizes internal processes costs MFI receives commission from MNO MFI’S ROLE BENEFITS FOR MFI

Extend business portfolio leveraging MNO customer base MFI should reinforce financial capacity and ultimately gain new customers through extended partnerships with Orange MFI brings MFI gets High volumes of cash from MNO & improves credit portfolio capacity Collects information on users savings & financial behaviors Reaches new customer segments for credit Banking/MF license B2B2C product design solutions for MNO to help them offer savings on interest bearing accounts Extend business portfolio leveraging MNO customer base SAVINGS Banking/MF license Designs credit products for qualified customers CREDITS Orange brings Brand, capacity to manage large scale technical, distribution networks & marketing programs

Orange Madagascar: innovating with saving & micro-insurance SAVINGS - Orange Madagascar has launched a first live test in October Value proposition: Customers earn interest on their Orange Money account Opt out service Interests are paid on a monthly basis 4 to 6% depending on account balance Partner is MICROCRED (MFI & Bank) INSURANCE – coming life insurance Subscription @ OM agents All payments/disbursements on mobile

Thank you aurore.noumazalay@orange.com