ZAAD ServicesCharging Proposal

1st Sept, 2012

Abdirahman Adam ShireZAAD Services Manager

OUTLINE Fikrad Guud Oo Ku Saabsan Tariffs-ka MMT-ga

Waa Kuwee Adeegyada Aan Charge-garayn karnaa?

Soo-jeedinta Qaabka Tariffs-ka, Rates-ka & Odoros-ka Revenue-

ga laga samayn karo

SIDEE LOO QIIMEEYAA KHIDMADDA ADEEGYADA MMT-GA? Waxa la isla waafaqsan yahay in lagu saleeyo khidmadda MMT-ga “Value-Pricing Approach”

Marka la dajinayo khidmad waa in jawaab cad loo helaa Afarta su’aalood ee sawirka hoose ku xusan:

QAABABKA KHIDMADAHA ADEEGYADA MMT-GA

Waa habka ugu fudud;

Ma aha qiime macquul “Competitive Price” ku ah Low Value Transactions”-ka;

Dakhli lagagama samayn karo lacagaha badan “High Value Transactions”-ka;

Ma jecla Agents-ku.

Waa hab dakhli badan lagu samayn karo;

Dakhli lagagama samayn karo lacagaha yar-yar“ Low Value Transactions”-ka;

Ma aha qiime macquul “Competitive Price” ku ah High Value Transactions”-ka.

Waa hab dakhli badan lagu samayn karo;

Waa hab u fiican Agents-ka;

Waa habka ugu adag.

Habka Tiered-ka Waxa Isticmaala Shirkadaha

TARIFF SHEETS-KA QAAR KAMID AH MMT SERVICES-KA

 ACTIVITY Transaction Tiers CHARGES

   Min.   Max. Local

 PAY IN CASH  5,000  1,000,000 0

 SEND  MONEY       

              To Registered user   5,000  1,000,000 800

      To Non-Registered/Mobile user

      (MTN or Local Network)

 5,000  30,000 1,600

 30,001  60,000 2,000

 60,001  125,000 3,700

 125,001  250,000 7,200

 250,001  500,000 10,000

 500,001  1,000,000 19,000

 WITHDRAW       

              By Registered user 

 5,000  30,000 700

 30,001  60,000 1,000

 60,001  125,000 1,600

 125,001  250,000 3,000

 250,001  500,000 5,000

 500,001  1,000,000 9,000

              By Non-Registered/Mobile user

              (MTN or Local Network) 5,000  1,000,000 0

 PAYMENTS      

      Goods & Services

     (pay bills for DStv, Water etc.)

 5,000  125,000 400

 125,001  250,000 700

 250,001  500,000 1,000

 500,001  1,000,000 2,000

 PURCHASES       

      MTN Airtime  5,000  1,000,000 0

GOLIS – SAHAL SERVICES CHARGING

May, 2011 ayay soo rogeen charges-ka;

Waxay charge s-ka u sameeyeen si ay u

dabooli karaan kharashaadka adeegga ay u

galaan;

Waxay charge gareeyaan (1) Send

Money [P2P], (2) Merchant to Merchant

[B2B], (3) Merchant to Customer [B2P];

Hoos u dhac kabadan 50% ayaa ku yimi

isticmaalkii adeegga markii ay charges-ka

soo rogeen;

Koriin muuqdana muu samayn dakhliga

(Revenue)-ga ay ka sameeyaan balse waa

mid qunyar socod ah .

Customer Send Money (P2P), Merchant to Merchant (B2B) and Merchant to Customer (B2P)

Min Max Rate0.02 1 0.021.01 3 0.033.01 10 0.05

10.01 20 0.120.01 30 0.1330.01 50 0.1650.01 100 0.18

100.01 500 0.2500.01 1000 0.17

GOLIS – SAHAL TARIFF SHEET

SAHAL SERVICES CHARGING Waa habkii Tier transaction charging system;

Maadaama uu ahaa mid faham-kiisu adag yahay way sii adkeeyeen markii ay farabadiyeen ranges-ka transactions-ka;

Waxay ka ilaaliyeen fraud inuu yimaaddo markii ay isku mid ka dhigeen dhamaan saddexda nooc ee Send Money-ga ah P2P, B2B iyo B2P;

waxay ka ilaaliyeen in Competitors-koodu jaanis ka helaan markii ay qiimaha u jabiyeen si xooggan.

WAA KUWEE ADEEGYADA AAN CHARGE GARAYN KARNAA?

ADEEGYADA ZAADNo Service Type

Total TransactionsJan-June, 2012

%

1 Customer Deposit 736,792 1.56%2 Customer Withdrawal 405,935 0.86%3 Customer Send Money 28,054,721 59.49%4 Hawala Sent By Customer 2,702 0.01%5 Hawala Sent By Store 3 0.00%6 Airtime Recharge 10,068,197 21.35%7 Customer Bill Payment 6,237,019 13.23%8 Merchant Withdrawal 19,597 0.04%9 Merchant to Merchant Transfer 110,945 0.24%

10 EVC Agent Recharge 102,769 0.22%11 Merchant to Customer Send Money 1,143,884 2.43%12 Inter-Network Incoming Transfer 102,505 0.22%13 Inter-Network Outgoing Transfer 67,943 0.14%14 Bank Deposit 16,513 0.04%15 Bank Withdrawal 32,205 0.07%16 Data Recharge 53,638 0.11%17 Inbound International Hawala 1,874 0.00%18 Inbound Forwared International Hawala 537 0.00%19 Outbound International Hawala 52 0.00%

Total 47,157,831 100 %

ADEEGYADA HADDA CHARGE-KA LEH

No Service TypeTotal Transactions

Jan-June, 2012%

1 Customer Withdrawal 405,935 0.86%2 Hawala Sent By Customer 2,702 0.01%

3 Hawala Sent By Store 3 0.00%4 Inter-Network Outgoing Transfer 67,943 0.14%5 Outbound International Hawala 52 0.00%

Adeegyada shanta ah ee sare ku xusan waa kuwa hadda charge-ka leh, waxaanay ka yihiin

guud ahaan transactions-kii dhacay Jan-June, 2012 nisbad aan ka badnayn 1.22% .

Waxa sidoo kale jira adeegyada:

a) In-bound & Inbound Forwarded International Hawala

b) Inter-Network incoming Transfers

oo Partners-keenu charge gareeyaan inaguna aynu commission ku leenahay.

N.B: Commissions-ka Inter-Network incoming-ku waa 50% halka In-bound International

Hawala – Taaj Express uu yahay 50% , Tawakal Express-na uu yahay 20%

ADEEGYADA HADDA LEH CHARGES-KA, RATES-KOODA & COMMISSIONS-KA KA BAXA

Customer Withdrawal ChagresMinAmount MaxAmount Rate Commission Rate

0 50 0.2 0.1650 100 0.35 0.28

100 200 0.4 0.32200 300 0.5 0.40300 500 1 0.80500 700 1.5 1.20700 1000 1.75 1.40

1000 1500 2 1.601500 2000 2.5 2.00

Hawala Send By CustomerMinAmount MaxAmount Rate Commission Rate

0 50 0.4 0.1650 100 0.7 0.28

100 200 0.9 0.32200 300 1.5 0.40300 500 2.25 0.80500 700 3 1.20700 1000 3.5 1.40

1000 1500 4.25 1.601500 2000 5 2.00

Hawala Send By StoreMinAmount MaxAmount Rate Commission Rate

0 50 0.4 0.1650 100 0.7 0.28

100 200 0.9 0.32200 300 1.5 0.40300 500 2.25 0.80500 700 3 1.20700 1000 3.5 1.40

1000 1500 4.25 1.601500 10000 5 2.00

Inter-Network Outgoing TransferMinAmount MaxAmount Rate Commission Rate

0 1 0.1 50%1 10 0.2 50%

10 20 0.25 50%20 30 0.3 50%30 50 0.4 50%50 100 0.5 50%

100 1000 0.5 50%1000 2000 6 50%2000 5000 8 50%5000 10000 10 50%

Out-bound International Hawala waxay leedahay charge ku base garaysan wadan, Commissions-ka Partners-ku inaga qaadaan waa sidan:

- Taaj Express: 50%- Tawakal Express: Unknown

ADEEGYADA AAN WAXBA LA CHARGE GARAYN & SOO JEEDINTA KUWA LA CHARGE GARAYN KARO

No

Service TypeTotal Transactions

Jan-June, 2012%

1 Customer Deposit 736,792 1.56%2 Customer Send Money 28,054,721 59.49%3 Airtime Recharge 10,068,197 21.35%4 Customer Bill Payment 6,237,019 13.23%5 Merchant to Merchant Transfer 110,945 0.24%6 EVC Agent Recharge 102,769 0.22%7 Merchant to Customer Send Money 1,143,884 2.43%8 Bank Deposit 16,513 0.04%9 Bank Withdrawal 32,205 0.07%

10 Data Recharge 53,638 0.11%11 Merchant Withdrawal 19,597 0.04%

Total 46,576,280 98.78%

Adeegyadani waxay isugu jiraan saddex qaybood oo kala ah:

1. Adeegyo aanay suurta gal ahayn in wax la charge gayeero marnaba oo ka ah transactions-ka 23%, waana kuwan:

a) Customer Depositb) Airtime Rechargec) EVC Agent Recharged) Data Rechargee) Bank Deposit

2. Adeegyo mustaqbalka laga fakari karo charge-kooda oo ka ah transactions-ka 13%, waana:

a) Bill Paymentb) Merchant Withdrawal

N.B:Shirkadaha Mobile Money-ga bixiya qaarkood Bill-Payment-ka Utility Agents-ka & TV-yada ayay Charge ka qaadaan.

ADEEGYADA LA CHARGE GARAYN KARO

No Service TypeTotal Transactions

Jan-June, 2012%

1 Customer Send Money 28,054,721 59.49%3 Merchant to Merchant Transfer 110,945 0.24%4 Merchant to Customer Send Money 1,143,884 2.43%5 Bank Withdrawal 32,205 0.07%

Total 29,341,755 62%

Fiiro-gaar ah:

1) Waxa feker dheer u baahan saamaynta ay isku yeelan doonaan Transaction Limit-ka iyo Charge-ku.

2) Waxa jira adeegyo ay baahi u qabaan macaamiisha Inter-Network –gu, charge-na laga dhigo karo balse aynaa hadda lahayn waana:

a) Inter-Network Bill Payment

b) Inter-Network Merchant to Merchant

c) Inter-Network Merchant to Customer3) Adeegyda Send Money waxa kamid ah asbaabaha loo adeegsado:

a) Payroll Paymentb) Bulk Payment

Waxa muhiim ah in charges-kooda tix galin gaar ah loo sameeyo isla markaana TranType gaar ah ay noqdaan.

SOO JEEDINTA QAABKA TARIFFS-KA, RATES-KA LA CHARGE GARAYN KARO IYO ODOROSKA REVENUE-GA

LA FILI KARO

ABLA-ABLAYNTA TRANSACTIONS-KII P2P, B2B & B2P AHAA EE JULY, 2012

P2P, B2B Iyo B2PNo Range ($) # Trans %1 0.1 - 1 1,563,985 29%2 1.1 - 10 2,563,694 47%3 10.1 - 20 466,007 9%4 20.1 - 30 189,494 3%5 30.1 – 50 233,114 4%6 50.1 – 100 198,195 4%7 100.1 – 1000 199,534 4%8 1000.1 - 2000 40,263 1%

• Macaamiisheenu ZAAD waxay u isticmaalaan lacagaha yaryar taas waxa muujinaya shaxdan oo si muuqata u cadaysay in 76% transactions-kii dhacay July, 2012 ay yihiin lacago u dhaxeeye $ 0.1 - $ 10 halka 16% ka hadhayna ay yihiin $ 10.1 – $ 2,000.

0.1 - 1 1.1 - 10 10.1 - 20 20.1 - 30 30.1 – 50 50.1 – 100 100.1 – 1000

1000.1 - 2000

29%

47%

9%

3% 4% 4% 4%1%

ABLA-ABLAYNTA TRANSACTIONS-KII BANK WITHDRWAL-KA AHAA EE JULY, 2012

BANK WITHDRAWAL TRANSACTIONSNo Range ($) # Trans %1 0.1 - 1 0 0%

2 1.1 - 10 0 0%

3 10.1 - 20 1184 22%

4 20.1 - 30 496 9%

5 30.1 – 50 854 16%

6 50.1 – 100 938 18%

7 100.1 – 1000 1671 32%

8 1000.1 - 2000 83 2%

9 < 2000.1 57 1%

0.1 - 1 1.1 - 10 10.1 - 20 20.1 - 30 30.1 – 50 50.1 – 100 100.1 – 1000 1000.1 - 2000

< 2000.1

2%

22%

16%

8%

11%10%

19%

5%6%

HABABKA CHARGING-KA EE SYSTEM-KEENU LEEYAHAY?

A) Hababka Charging-ka/ Location

Intra-City

Inter-City

Inter-Network

Intra-Zone

Inter-Zone

B) Hababka Charging-ka/ Ranges & Structuring ModelsMinAmount MaxAmount Rate IsRatePercent

0 50 0 050 100 0 0

100 200 0 0200 300 0 0300 500 0 0500 700 0 0700 1000 0 0

1000 1500 0 01500 2000 0 0

• Waa Ranges-ka hadda system-keena ku diyaarsan;

• Ranges-ku way fara badan yihiin, waxaanay sababi karaan faham yaraan;

• System-ku waxa uu u diyaarsan yahay qaababka Tiered & Percentage Model labadaba;

• Hababka sare dhamaan waa ka suurta gal system-keena, balse waxa shaqeeyaa kaliya waa Inter-Network.

• Dhamaan macaamiisheenu transaction-ada ay sameeyaan ee aan ahayn Inter-Network-gu kuma xadidna location.

TARIFFS / COMMISSIONS SHEET (SOO JEEDIN) Charge Rates-ka services-ka hadda charges-ka leh iyo commissions-ka la xidhiidha sidooda haloo daayo.

Services-ka P2P, B2B iyo B2P ee aan hadda soo jeedinayno rates-koodu waa inay isku mid noqdaan si fraud iyo xeeladaysi looga badbaado.

Charges Rates-ka & Ranges-ka aan soo jeedinaynaa waa sidan:

Tiered P2P, B2B & B2P Fee Structure

No Range ($)Rates

(USD/S.SH)

1 0.1 - 1 0.04/260

2 1.1 - 10 0.07/455

3 10.1 - 20 0.14/910

4 20.1 - 30 0.2/1300

5 30.1 – 50 0.25/1625

6 50.1 – 100 0.30/1950

7 100.1 – 1000 0.35/2275

8 1000.1 - 2000 0.40/2600

Tiered Bank Withdrawal Fee Structure

No Range ($) Rates Comm

1 10.1 - 500.10 50%

2 50.1 – 1000.15 50%

3 100.1 – 10000.20 50%

4 1000.1 - 20000.35 50%

5 < 2000.1 0.50 50%

SAADAASHA DAKHLIGA (PROPOSED CHARGES):

No P2P, B2B Iyo B2P Expected Revenue With Reduction of

Range ($) # Trans July, 12

Rate 0% 30% 50% 60%

1 0.1  -   1 1,563,985 0.04 62,559 43,792 31,280 25,024 2 1.1 - 10 2,563,694 0.07 179,459 125,621 89,729 71,783 3 10.1 - 20 466,007 0.14 65,241 45,669 32,620 26,096 4 20.1 - 30 189,494 0.2 37,899 26,529 18,949 15,160 5 30.1 – 50 233,114 0.25 58,279 40,795 29,139 23,311 6 50.1 – 100 198,195 0.3 59,459 41,621 29,729 23,783 7 100.1 – 1000 199,534 0.35 69,837 48,886 34,918 27,935 8 1000.1 - 2000 40,263 0.4 16,105 11,274 8,053 6,442

Total Expected Revenue $ 548,837 $ 384,186 $

274,418 $ 219,535

No Bank Withdrawal Expected Revenue With Reduction of

Range ($) # Trans July, 12

Rate 0% 30% 50% 60%

1 10.1 - 50 2,534 0.10 253 177 127 101 2 50.1 – 100 938 0.15 141 98 70 56 3 100.1 – 1000 1,671 0.20 334 234 167 134 4 1000.1 - 2000 83 0.35 29 20 15 12 5 < 2000.1 57 0.50 29 20 14 11

Total Expected Revenue $ 786 $ 550 $ 393 $ 314

ZAAD SERVICES PROJECTED INCOME STATEMENTFROM APRIL, 09 - 31ST JULY, 2012

RevenueDirect Revenue:Inter-Network Incoming Revenue

Hormuud 7,424.01 Golis 59,574.40 Total Inter-Network Incoming Rev. 66,998.41

Inter-Network Outgoing RevenueHormuud 6,212.14 Golis 49,936.32 Total Inter-Network Outgoing Rev. 56,148.46

In-bound -ZAAD- International RevenueQaran 34,232.29 Tawakal 156.40 Taaj Express 281.59 Total In-bound ZAAD Revenue 34,670.28

In-bound -NonZAAD- International RevenueQaran 681.71 Tawakal 19.36 Taaj Express 15.14 Total In-bound -Non-ZAAD Revenue 716.21

Withdrawal Revenue 20,684.55 Hawala Revenue 9,426.68

Total Direct Revenue 188,644.59 InDirect Revenue ZAAD Airtime Recharges 3,430,862.67 Customer Retention - Total Indirect Revenue 3,430,862.67 sales ExpensesWithdrawal Commissions 16781.45Hawala Commissions 1144.4Salaam Transaction Fee Expense 11740.4Total Sales Expenses 29,666.25 Gross Income 3,589,841.01

ZAAD SERVICES PROJECTED INCOME STATEMENT

AS OF 31ST JULY, 2012RevenueDirect Revenue:Inter-Network Incoming Revenue

Hormuud - Golis 4,850.54 Total Inter-Network Incoming Rev. 4,850.54

Inter-Network Outgoing RevenueHormuud - Golis 3,366.95 Total Inter-Network Outgoing Rev. 3,366.95

In-bound -ZAAD- International RevenueQaran - Tawakal - Taaj Express 189.98 Total In-bound ZAAD Revenue 189.98

In-bound -NonZAAD- International RevenueQaran - Tawakal - Taaj Express 10.92 Total In-bound Non-ZAAD Revenue 10.92

P2P, B2B & B2P Revenue 274,418.00 Withdrawal Revenue 234.80 Hawala Revenue 167.30

Total Direct Revenue 283,238.49 InDirect Revenue ZAAD Airtime Recharges 183,650.01 Customer Retention - Total Indirect Revenue 183,650.01 sales ExpensesWithdrawal Commissions 187.84 Hawala Commissions 8.43 Salaam Transaction Fee Expense 816.04 Total Sales Expenses 1,012.31 Gross Income 465,876.19

ARIMO MUHIIMAD U LEH HIRGALINTA CHARGES-KA IYO

HORUMARINTA ADEEGGA

Hirgalinta Agents External ah

Customer & Merchant WithdrawalNo Range ($) Customer Merchant Total % 1 0.1 - 1 1,897 13 1,910 2%2 1.1 - 10 17,353 233 17,586 22%3 10.1 - 20 12,073 346 12,419 16%4 20.1 - 30 6,332 178 6,510 8%5 30.1 – 50 8,488 300 8,788 11%6 50.1 – 100 7,220 265 7,485 10%7 100.1 – 1000 14,199 968 15,167 19%8 1000.1 - 2000 3,207 380 3,587 5%9 < 2000.1 4,097 843 4,940 6%

Total 78,392 100%

Macaamiishu lacagaha ay ku sameeyaan withdrawal-ku waa lacago yaryar.

Withdrawal transactions-ka $ 0.1 - $100 ahi waxay ka yihiin 69%

Hadii la hirgaliyo Agents External ah waxa culays badani ka dhici karaa xarumaha shirkadda waxaana abuurmi kara Eco-System laga wada faa’iidaysto.

ABLA-ABLAYNTA TRANSACTIONS-KII WITHDRWALS-KA AHAA EE JULY, 2012

Thank You