Tigo Cash: Mobile Transfer for Emerging Markets. Steven Jurgens Head of Region & Group CSR Millicom International Cellular S.A.

Transcription

1 Tigo Cash: Mobile Transfer for Emerging Markets Steven Jurgens Head of Region & Group CSR Millicom International Cellular S.A. November, 2008

2 Who are we? Millicom Highlights 25 years of emerging markets history Luxembourg company; Swedish heritage; 16 countries Latin America, Africa & Asia ; > 30 million subscribers Triple-A strategy Affordability: - Low denomination reloads Accessibility: - Ease of purchasing minutes Availability: - Extensive & good network coverage One global brand: Tigo Use of proven technology broad range of services Employs + 6,500 people (+100% from 2006) Revenues of 2.6 billion US$ & Investments of 1 billion US$ in 2007 Listed on Nasdaq 100 market capitalisation of approx. 5 billion US$ Part of MSCI (Morgan Stanley Capital International) World index YYMMDD_Country_DocumentName

3 What does Tigo Cash do? Our business model Going beyond making a profit and starting to make a difference Churn avoidance G-Cash customers in Philippines show 80% lower churn rate vs. regular mobile users. Payment & remittance Services Tigo Cash makes profit from transaction fees. $250 Bn of intl remittances globally (WB, 06) and national remittances Airtime self top-up Tigo saves commission to distributive trade when customers buy airtime via self top-up Providing banking and remittance services to the poor: - Micro-payments The debit card for low rollers - National remittances Mobile to mobile - International remittances Online / Outlet to mobile

4 What are the benefits? Sharing the value pie TIGO CASH Product Retailer benefit TIGO Customer benefit Millicom benefit Payments High end retail services (gas stations, malls) - Lower Commission vs. credit / debit cards - Air time promotions - Loyalty club with benefits - Churn avoidance - Loyalty - Revenue Mass Market retail services FMCG supplier is paid with Tigo Cash by the retailer Retailers sell grocery products for Tigo Cash - Reduced cash handling - Security -Customer traffic - Reduced cash handling - Security - Airtime promotions - Loyalty club with benefits - Churn avoidance -Loyalty -Revenue National Remittances Tigo customer service and sales shops - Cash-in fee - Cash-out fee - Lower cost - Smaller amounts - Safer than informal channels - Transaction fee International Remittances Tigo customer service and sales shops - Cash-in fee - Cash-out fee - Lower cost - More cash-out points - Spend directly with Tigo Cash - Transaction fee

5 Who are we working with? Our partners Name of sub project Financiera El Comercio Fundación Paraguaya Banco Continental B King, Pizza Hut, etc. Cervepar Citibank Hiperseis Aprobados Inverfin Unilever Barcos y Rodados Pares Lubripar Petrosur Netel 09/XX/07 Cash in and Cash out. International remittances Microcredits in main cities and countryside. Interact bank account and electronic wallet (Tigo Cash). Aspirational businesses to contact our young audience Local largest beer distributor: will use Tigo cash to collect payments from the points of sale. Escrow Account The largest supermarket chain in Paraguay with 13 branches Games in local popular TV program. Chain of POS FMCG, Tigo Cash will be the way to collect payments. ( 09) Oil Company. POS Description Coca Cola in Paraguay. Tigo cash, will be the way of pay of it direct sales Oil Company. Cash in and Cash out in their shops and payment of products. More than 230 base stations ( 09) Oil Company. Cash in and Cash out in their shops and payment of products. Sale of Aprobados tickets and E pin Network of payment: more than 1500 collection points. Cash in and Cash out in their branches

6 How does it work? Tigo Cash and Micro-credit Benefits For Microfinance Institutions: Less time and admin costs Instant receipt of loan Avoids risk of money transport For Customers: Avoids cost and risk to pick up money Easy to check debt status Avoids risk and cost to pay back loan

7 What are the key success factors? What we learned in Paraguay Bank partnership Cooperation with local regulator 100% security and reliability of Tigo Cash platform Business and marketing plan Visibility Agreement with distribution channels on commission structure Education and training of agents, internal support and subscribers Churn rate is 10% of average Average reloads up by +$1 YYMMDD_Country_DocumentName

8 Thank You!