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Leading provider of pan-African communication services
Delivers the platform for growth in African total communications solutions
♦ Leading provider of pan-African voice and data connectivity services to the African mobile industry ♦ Leading provider of managed network IT solutions to multinational corporations operating in Africa
Blue-chip global customer-base Blue-chip African customer-base Gateway
Rapid growth in demand for
Africa’s most extensive network directly connecting 40 countries
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African telecoms infrastructure
Local presence in 13 African countries with strong and broad management team
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Africa’s most extensive communications network
Direct connectivity into 40 African countries
Teleports
(Belgium, UK, USA and Germany)
Full IP, Next Generation Network Network Gateway POP London/Brussels/ New York International carriers WACS cable
♦ Network connects 40 countries across Africa
SEACOM cable Sat-3 cable
♦ 43 equivalent transponders of satellite capacity1
♦ Satellite capacity suppliers include Intelsat and SES Newskies ♦ Major satellite hubs in 5 African countries
♦ SAT-3 and SEACOM cable capacity, WACS planned
Strong and broad management team with unparalleled African experience
• Sales and support office
Mali
• Group headquarters (finance and sales)
UK • Regional office—
Major hub (sales and technical support)
Nigeria
• Support office
Sierra Leone
Cote d’Ivoire
• Major technical and support centre
Belgium
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• Support office
Uganda
• Support and technical offices
• West and North Africa
Ghana
Tanzania • Support and sales
office
Kenya
Gateway
§Seychelles
Cameroon
• East Africa and Angola headquarters
Mozambique • West and North Africa
headquarters
• Sales, support and technical office France • Support office Angola • Central Africa headquarters
• Sales, support and technical office
Cameroon
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South Africa Zimbabwe
Angola headquarters
• Sales, Support and Technical office
• Commercial and sales
Switzerland • Sales office
• Sales, support and technical office
Angola
• Sales and support office being established
DRC
• Major hub office, Southern Africa headquarters
Strong relationships in key industries
Long-term blue chip customer base
African mobile
International carriers
Gateway
International carriers
Banking and finance
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Contribution and gross margin by line of business
Gross margin contribution by line of business (9M 2008)
32 48 40 48 53 10 32 Inboun d voic e O ut boun d voi ce Da ta se rv ic e s D at a & te rn e t O th e r¹ VS A T O Gateway Source: Gateway Note:
1 Other includes e-commerce services, equipment sales and operations and maintenance
D In O Inbound voice 55% Data services 18% VSAT Other 17%
Revenue contribution by line of business (9M 2008)
55%
Outbound voice 27%
18% VSAT
51%
Data & Internet 32%
17%
27%
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Figures at a glance
9M 2007
9M 2008
Growth
1(%)
Year-end December
9M 2007
Growth (%)
Number of voice minutes (m)
9M 2008
813
1,232
51.6
Year-end December
Revenue (US$m)
179
253
41.1
GatewayEBITDA (US$m)
30.1
35.8
19.1
EBITDA margin (%)
16.8
14.1
2.7
Average VSAT sites
971
1,391
43.3
Note:
Gateway best positioned for growth in total communications
Gateway has a track record of success in total communications and is best positioned to lead growth in the pan-African total communications market
Focus on high-growth
Pan-African
Local on-the-ground
markets
Infrastructure
presence
Pan-African
connectivity for mobile
operators
Blue-chip customer
base
Meet the needs of MNCs
in Africa
Gateway
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Gateway provides growth and synergy opportunities
Accelerates international expansion
♦ Broadens Vodacom’s international footprint into key regional markets, especially Nigeria
♦ Provides platform for further regional expansion
Provides platform for further expansion
♦ Opens new growth markets in Africa and allows Vodacom to exploit growth in mobile services without GSM footprint expansion,
♦ Complements Vodacom Business
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♦ Leverages Vodacom’s capital strength to accelerate Gateway’s growth
Strengthening of total
Gateway
♦ Provides access to Gateway’s blue-chip corporate customer base ♦ Places Vodacom at the heart of African broadband growth story
Strengthening of total communications strategy
♦ Cost savings from satellite operations, vertical integration and procurement ♦ Further potential upside through co-operation with Vodafone operations
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Gateway Communications — Carrier Services overview
Gateway provides the highest quality inbound, outbound and intra-African voice and data connectivity services
♦ One of the largest providers of carrier network solutions in Africa ♦ Extensive satellite network and multiple sub-sea fibre landing points
♦ Major clients include Vodacom Zain and Millicom as well as major European and global carriers ♦ Major clients include Vodacom, Zain and Millicom, as well as major European and global carriers
Inbound voice services Outbound voice services Intra-Africa connectivity
GATEWAY Gateway Satellite dish Satellite Satellite dish VSAT Bandwidth Modem VSAT Hub Modem VSAT Hub
International wholesale and retail carriers and partner operators
African
operators International wholesale and retail carriers and partner operators
African
operators Router Router
Hub Hub
Modem Bank Modem Bank
MSC Veraz iGate Media Gateway Veraz iGate Media Gateway Radio tower
Radio tower Radio tower
Modem Router
Modem Router
Fixed or Mobile Operator B Fixed or Mobile Operator A
MSC
Radio tower
Gateway POP
Radio tower Radio tower
Gateway POP
♦ Gateway provides African interconnection to international
♦ Gateway provides international network connection for African
♦ Gateway provides intra- Africa network connectivity for the
Fixed or Mobile Operator B Fixed or Mobile Operator A
telcos for the completion of calls originated internationally
telcos for the completion of international calls
completion of calls between African telcos
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Carrier Services—Data
Gateway is the leading provider of cellular backhaul and internet services in Africa, providing high-quality, reliable connectivity for mobile networks
G
A
Cellular backhaul Mobile internet (GPRS / 3G)
A
TEWAY
Gateway
Public Internet & Private IP
♦ Gateway provides national connectivity to allow mobile operators to connect switches and cell sites within a particular
♦ Gateway provides high speed internet connectivity to mobile operators to support the roll-out of GPRS and 3G services
♦ Gateway has recently launched IPJetDirect, an enhanced internet i d t th i t f ll l t
p country
♦ Gateway provides international leased-lines for voice, data and signaling traffic
service geared to the requirements of cellular operators
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Competitiveness Service offering
Leading competitive position—Carrier Services
Gateway’s unique business model makes it well suited for serving the African market
Operator African focus Price Quality Voice Data Satellite VAS1
Cellular Backhaul
Gateway Carrier Services 9 9 9 9 9
Belgacom International 9 9 8 9 8 a to rs Carrier Services 9 9 8 9 8 France Telecom 9 9 9 9 8 British Telecom 9 9 9 9 8 Gl ob a l o p e ra T-Systems (subsidiary of Deutsche Telekom) 9 9 8 8 8 Taide (subsidiary of Telenor) 9 9 9 8 8 T l It li 9 Gateway Global Telecom Italia 9 9 9 9 8 IDT 9 8 8 9 8 Tata VSNL 9 9 9 9 8 Af ric a n Mednet 9 9 8 9 8 M-Link 9 9 9 9 8 h e
r Global Global Voice Voice 9 9 8 8 8
Africa n e r Ot h Intelsat – – 8 9 9 8 9 High Low
Source: Gateway estimates Note:
1 Value added services
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Carrier services—voice
Revenue per quarter Number of voice minutes
94 104 109 110 105 249 342 385 406 429 396 19 429 19,348 18 932 47,312 53,975 58,185 60,167 58,345
Revenue per quarter Number of voice minutes
$ thousands Millions 152 163 248 281 297 319 291 21 86 94 173 249 20,883 21,532 30,291 35,161 38,756 40,819 39,413 12,556 15,775 17,021 18,814 19,429 19,348 18,932 33,439 37,307 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Outbound Inbound Q107 Q207 Q307 Q407 Q108 Q208 Q308 Outbound Inbound
Gross margin 1 Average voice revenue per minute
Gateway 0.14 0.13 0.12 0.13 0.13 0.13 0.14 0.18 0.18 0.18 0.18 0.18 0.18 0.18 7,500 8,886 9,098 9,672 10,710 9,931 9,349 $ thousands $ 0.12 2,549 2,991 3,362 3,235 3,931 3,765 3,952 4,951 5,895 5,736 6,437 6,779 6,166 5,397 , Q107 Q207 Q307 Q407 Q108 Q208 Q308 Inbound Outbound Q107 Q207 Q307 Q407 Q108 Q208 Q308 Outbound Inbound Source: Gateway
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Carrier services—data and other
Revenue per quarter Average leased line and data bandwidth
687 711 785
847
754 736 751
674 1,355 126 2,647 1,604
Revenue per quarter Average leased line and data bandwidth
$ thousands Mbps 10,229 10,506 11,778 12,128 11,131 10,719 11,553 126 , Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Data Other
Gross margin1 Average leased line and data revenue per
average MBPS provided Gateway 14,889 14,776 15,010 14,380 14,763 14,274 15,383 5,640 5,164 6,748 6,202 5,488 6,336 6,274 average MBPS provided $ thousands $ Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Note: 1 Excludes inter-company Source: Gateway
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Gateway Communications—Business Services overview
Gateway’s business service segment provides the most extensive range of corporate telecommunications solutions in the region, with unparalleled local presence in 13 African countries
♦ Gateway is a leading provider of high quality, end-to-end connectivity solutions to MNCs and large businesses operating across Africa
K li t ti l i l d fi i l i il & i i f t i d f t i d ♦ Key client verticals include financial services, oil & gas, mining, manufacturing and fast-moving consumer goods ♦ Strong VSAT, VPN, microwave and internet access services and capabilities
♦ Experienced strategic and OPCO management team and technical support staff
GATEW
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♦ Gateway provides private satellite networks to major multinational
♦ Gateway provides managed data network services using
♦ Gateway delivers high capacity corporate Internet access via
A
Y
Gateway
VSAT services Managed data services Internet services
networks to major multinational corporations for their IT
applications, data and voice communications
data network services using MPLS, Frame Relay and ATM for business critical
communications and access to Gateway’s e-Commerce
corporate Internet access via both satellite and terrestrial transmission links
y services
Private Customer
Network Gateway Comms
Disaster Recovery
Local
Connectivity InternationalConnectivity Banking Services ASP y RAS Access Analog/ISDN
Modem Remote User
WWW
Network Management
Fax Services Public Internet &
Private IP
Computer Computer Computer
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Track record of product innovation in business services
Broadband Wireless MPLS expansion Ku-Band
BWA-Access Benin
Gateway
♦ Gateway is rolling out broadband ♦ Gateway is expanding its ♦ Gateway is implementing a Ku Band
♦ Gateway is rolling out broadband wireless networks in the 10.5GHz frequency band to provide last mile access in urban areas as a cost effective and reliable alternative to
♦ Gateway is expanding its
international MPLS network to all of its African points of presence, to provide high capacity access to multinationals operating across
♦ Gateway is implementing a Ku Band VSAT service targeted at distributed networks of bank branches, retail chains, garage forecourts etc fibre and microwave services, and
as a replacement for its 5.8GHz wireless links
Africa who require high quality yet cost effective shared data network services
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Competitiveness Service offeringLeading competitive position—Business Services
Gateway’s unique business model makes it well suited for serving the African market
Operator
Pan-African
focus Price Quality VSAT
Managed
data Internet Projects BWA
Gateway Business
Services 9 9 9 9 9
Cable & Wireless 9 9 8 8 8
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Orange Business Services 9 9 8 8 8
British Telecom 9 9 8 8 8 GE Satlynx 9 9 9 9 8 rnational serv ic prov iders GE Satlynx 9 9 9 9 8 Schlumberger 9 9 9 8 8 DCC 9 8 8 9 8 9 9 9 9 9 Gateway Inte r a ye rs Telnet IPNX 9 9 9 9 9 K-Net 9 9 8 8 9 Netcom 9 9 9 8 9 Regional pl a Internet Solutions 9 9 9 8 8 MTN Network Solutions 8 9 9 8 9 Telkom Business 9 9 9 8 8 SA play ers
Source: Gateway estimates Note:
1 Value added services
High Low
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Business Services
Revenue per quarter Average number of business VSAT sites
1 025 1,092 1,128
1,423 1,538 9,034 9,396 9,748 10,078
11,852 12,602
14,210
Revenue per quarter Average number of business VSAT sites
$ thousands
929 958 1,025
Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q107 Q207 Q307 Q407 Q108 Q208 Q308
Gross profit1 Business VSAT revenue per average
number of sites Gateway 4,985 5,542 5,121 5,582 4,860 4,460 4,677 4,496 5,072 5,250 4,971 5,870 5,763 6,890 number of sites $ thousands $ Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Source: Gateway Note: