Stepping out of home: Challenges and Successes ARABCOM June 16 th 2004

1. Stepping out of home: Challenges and Successes ARABCOM June 16th 2004

2. ESSENCE OF PROFOUND INSIGHT IS SIMPLICITY ( From Good to Great: By Jim Collins) UNITED KINGDOM

3. Agenda • Opportunity • The Challenge • Sources • 3X3X3 Strategy • Achievements

4. Overview • MTC founded in 1983 • MTC is offering services to over 2,000,000 + customers. 1,000,000 GSM customers in Kuwait 61% market share (revenue), 53% of total market share (customers*) • 1,000,000 GSM customers in Jordan75% market share (revenue), 75% of total market share (customers*) • Pioneered mobile services in Middle East, Kuwait, Jordan and Bahrain 3G EDGE, MMS, and

5. Kuwait Stock Exchange • Largest Non-Bank (second largest overall) • Market capitalisation $US 7 billion in 2003 • Gross Revenue 2002 $US 436 million • Gross Annualised Revenue 2003 $US 835 million • Projected Gross Annualized revenue 2004 $ US 1 Billion Operations: Kuwait, Jordan, Bahrain, Lebanon, Southern Iraq UNITED KINGDOM

6. UNITED KINGDOM

7. The Opportunity UNITED KINGDOM

8. % of Mobile Subscribers in ME and Africa Pyramid research 2003

9. Total Mobile revenues in MENA Region Pyramid research 2003 UNITED KINGDOM

10. The Challenge UNITED KINGDOM

11. GREATRESULTS WHAT’S INSIDE THE BLACK BOX? GOOD RESULTS The transformation process= the Black Box UNITED KINGDOM

12. $500 $400 $300 $200 $100 0 1970 1976 1982 1988 1994 2000 Good-to-Great Companies: $471 Direct Comparison Companies: $93 General Market: $56 • Notes: • $1 divided evenly across companies in each set, January 1, 1965. • Each company held at market rate of return, until transition date. • Cumulative value of each fund shown as of January 1, 2000. • Dividends reinvested, adjusted for all stock splits. UNITED KINGDOM

13. Good is the enemy of Great UNITED KINGDOM

14. THE CHALLENGE OF SCALE • Vodafone 133.4 million (May 2004) • China Mobile 153.27 million (May 2004) • China Unicom 143 million (May 2004) • Orange 50 million ( May 2004) • T-Mobile 87 million ( End of 2003) • NTT Do Co Mo 45,926 million • Verizon USA 39 Million ( 2004) • AT&T Wireless (21.6 million March 2004) (Company information) UNITED KINGDOM

15. BORDERS Borders……….Borders………….Borders……………… UNITED KINGDOM

16. ECONOMY IN THE SERVICE OF POLITICS RATHER THAN …… POLITICS IN THE SERVICE OF ECONOMY UNITED KINGDOM

17. GDPs • USA $10,400,000,000,000 • CHINA $5,700,000,000,000 • Japan $3,550,000,000,000 • Germany $2,184,000,000,000 • France $1,540,000,000,000 • UK $1,520,000,000,000 • Arab Countries $ 531, 000,000,000 (CIA World Factbook 2003) UNITED KINGDOM

18. Operators: 2 GSM + 1 iDEN + 1 GSM license in progress Operators: 2 Operators: 2 Operators: 2 Operators: 2 Tunisia Egypt Syria Jordan Lebanon Subs: 0.9 million Subs: 1.3 million Subs: 1.9 million Subs: 5.9 million Subs: 1.1 million Revenues: US$ 0.2 billion (3) Revenues: US$ 0.4 billion Revenues: US$ 0.4 billion (1) Revenues: US$ 1.1 billion Revenues: US$ 0.9 billion (2) Morocco Kuwait Operators: 2 Operators: 2 Subs: 1.8 million Subs: 7.3 million Revenues: US$ 1 billion Revenues: US$ 1.2 billion MTC Present Bahrain Algeria Operators: 2 Operators 3 Subs: 0.5 million United Arab Emirates Oman Subs: 1.3 million Revenues: US$ 0.2 billion Operators: 1 + I GSM license in progress Operators: 1 + 1 GSM license in progress Operators: 1 + 1 GSM license in progress Operators: 1 Revenues: US$ 0.3 billion (4) Subs: 7.5 million Subs: 3.0 million Subs: 0.4 million Subs: NA Saudi Arabia Revenues: US$ 4.7 billion Revenues: US$ 1.3 billion Revenues: US$ 0.3 billion Qatar Revenues: NA The Contemplated Vision The Arab World Revenue Pot With around 33 million subscribers, the Arab world generated approximately US$ 12 billion in revenues from mobile telephony in 2003 EFG Hermes research 2003 UNITED KINGDOM

19. THE TRANSFORMATION “ A PROCESS OF BUILD UP FOLLOWED BY A BREAKTHROUGH” 3 stages UNITED KINGDOM

20. Disciplined people UNITED KINGDOM

21. Disciplined Thought UNITED KINGDOM

22. Disciplined action UNITED KINGDOM

23. B R E A K T H R O U G H ! B U I L D U P . . . LEVEL 5 LEADERSHIP FIRST WHO… THEN WHAT CONFRONT THE BRUTAL FACT HEDGEHOG CONCEPT CULTURE OF DISCIPLINE TECHNOLOGY ACCELERATORS DISCIPLINED PEOPLE DISCIPLINED THOUGHT DISCIPLINED ACTION F L Y W H E E L UNITED KINGDOM

24. Greatness is not a matter of Circumstance But Largely a matter of conscious choice UNITED KINGDOM

25. Service is an art that is totally based on HUMAN SKILLS UNITED KINGDOM

26. Distinction of Human Skills is the only sustainable competitive advantage UNITED KINGDOM

27. The Challenge is the richness of sources not the abundance of resources UNITED KINGDOM

28. SOURCES UNITED KINGDOM

29. CREATIVTY UNITED KINGDOM

30. RELIABILITY UNITED KINGDOM

31. excellence UNITED KINGDOM

32. The challenge is to create sources not collect resources UNITED KINGDOM

33. 5 S UNITED KINGDOM

34. sources UNITED KINGDOM

35. service UNITED KINGDOM

36. systems UNITED KINGDOM

37. Skills UNITED KINGDOM

38. Super UNITED KINGDOM

39. Utility to Entertainment to Lifestyle UNITED KINGDOM

40. Our Human Resource Philosophy 5xF UNITED KINGDOM

41. Future UNITED KINGDOM

42. Freedom UNITED KINGDOM

43. Fortune UNITED KINGDOM

44. Fitness UNITED KINGDOM

45. Fun UNITED KINGDOM

46. OUR VISION 3x3x3 UNITED KINGDOM

47. 1st Three Regional expansion UNITED KINGDOM

48. 2nd Three International International UNITED KINGDOM

49. 3rd Three Global Global UNITED KINGDOM

50. ACHIEVEMENTS • Strategic partnerships • Value Added Investors • Sufficient amount of Funds • Capability to Deliver