Zain Sustainability Report 2016 I OUR PRODUCTS AND CUSTOMERS 93 AND CUSTOMERSAND OUR PRODUCTS Value Management THE CHALLENGE IN 2016, WE: As part of our stakeholder engagement strategy, our Value Management program is rooted 34% of the population in Saudi Launched the TransformMe in the premise that satisfied customers stay with us longer. Value Management is a key initiative Arabia is classified as obese App in order to encourage in our customer retention strategy with the program aiming at providing relevant and timely targeted people to take a proactive offers designed to increase tenure and develop usage. The development tool aims to provide approach towards their health our customers with pertinent and timely offers in order to cater to customers’ needs. and well-being Digital With sectarian violence Partnered with Altibbi.com continuing in the country, Iraq which is an website and Digital transformation is emerging as a key driver of change around the world with the potential has lost around 25-35% of its mobile app that offers access to to significantly improve customers lives and create broader societal good, while providing medical staff medical information as well as businesses with new opportunities for value creation with our industry at the forefront of this 15 direct e-connections to around transformation. 100 doctors At Zain, we recognize the importance and impact of having a robust and innovative direction in order to address and exceed our customers’ expectations: 2.3 million refugees are based Continued to provide services in the MENA region with the that target refugees such as Al Digital at Zain has two primary objectives: great majority residing in Tawasol Line in Lebanon and and Lebanon13 Syria-Sim Service in Jordan The first objective is aimed at transforming our core business to ensure we become more efficient, and at the same time deliver an improved customer experience. As a result, we have increased our digital channels via our mobile applications as well as digitized our contact centers. As part of Zain’s inclusive business strategy, the company took further The second objective is to diversify our revenue streams by playing a bigger role in customers’ steps in order to ensure that our customers experience, greater levels lives. We aim to not only increase our share of wallet but in doing so provide relevant services of service, as well as ensuring their needs are efficiently managed and and innovations. addressed. Key initiatives revolved around data monetization, value management, and digital transformation. The digital transformation initiative is fundamental towards the sustainability of the organization as a whole as it provides the company with the means to proactively address the disruptions that Data Monetization are unfolding the telecommunications sector.

Zain continued to make significant investments in expanding its 3G and 4G network so as to address customers’ expectations when it comes to data usage. The expansion provided greater capacity and coverage for our customers. Data monetization while providing value as another revenue stream for the organization it also provides significant value for our customers with increase coverage and the ability to access a wider range of services. During 2016 we expanded our data monetization program in order to ensure that we offered data services to a greater number of customers. Data monetization has tremendous potential for the benefit of society as well, as it can play a critical role when planning smart cities, urban developments in addition to providing vital information in the humanitarian front and disaster recovery and response. Furthermore, the expansion of the 3G network in Iraq has played a positive impact in the country as it has provided citizens with the ability to access a greater variety of services thus enabling them to experience greater socio-economic growth.16 Zain Sustainability Report 2016 I OUR PRODUCTS AND CUSTOMERS 95

Digital Services Launched in 2016: Booking.com Reward Program Zoom Portal In May 2016, Zain in partnership with Booking.com came together to offer a unique Launched June 2016, Zoom is a digital marketplace portal where Zain subscribers can access and groundbreaking service that is offered to Zain customers located in , Iraq, Bahrain, a wide range of content such as music, games, applications, pictures, video channels, and articles. and Lebanon. This service offers Zain customers additional complimentary mobile services This service was created in order to give users one place to access all content related to entertainment. as a reward for accessing the hotel service via a dedicated URL. Users can either use the content that is free of charge or purchase points from the portal by This partnership puts Zain at a competitive advantage as it gives its customers exclusive benefits deducting from the credit balance. 7,000 users are registered on the portal and 5,000 out of the which are based on the value of their booking. 7,000 are active with a total of two million visitors. Zain ensures that it monetizes data by creating such services to make it easier for users to find and access digital content.

SUMO-BOT Competition touch in collaboration with The Little Engineer, a foundation dedicated to empower youth in areas of science and technology focusing on robotics, renewable energy and environmental related sciences. The SUMO-BOT Competition, launched in September 2016, targeted children and teenagers of 10-15 years of age. 45 participants participated in this competition with the winners receiving free training from the Little Engineer and a gift voucher from Virgin Megastores. touch released a 30 second clip on Television broadcasted on several channels, publish press releases to 16 news channels and leveraged on touch’s reach and social media channels to spread awareness regarding the competition.

The company continues to address the needs of all its customers, particularly customers that are vulnerable and marginalized. Through various services offered by Zain, the company addresses multiple topics which include quality education, health, and the refugee crisis. Below are some of the most notable developments that have taken place across our operations.

Addressing Social Deficits Through Our Services:

Zain KSA

Kidotainment App: In order to promote quality education, Zain KSA launched an app called Kidotainment that aims to educate children starting from 0 -12 years old and above. This app uses gaming elements to assist children when it comes to learning new concepts in an exciting and enjoyable way. Through Zain Rzoom videos, audio series and games children can learn a wide range of concepts from the alphabet, colors and shapes Zain Jordan launched an application targeted for children from the age of six and above. to scientific concepts offered both in Arabic and English. This application allows users to create customized animations. The user has a wide range of effects By digitizing how children learn and acquire new skills helps and features to choose from in order to create the characteristics of the character, from voice over improve access to education and gives a more inclusive of the character, to facial expressions, and body movements. This application gives the user access approach to learning. to export the animation clip in different formats for any interactive personal use. Launched in August 2016, 10 thousand customers are using this application. This application helps stimulate creativity and enhance design skills through a simple and easy tool. Zain Sustainability Report 2016 I OUR PRODUCTS AND CUSTOMERS 97

TransformMe App: Zain Iraq In , obesity is an extremely alarming issue as it has numerous effects on an individual’s health, psychology and socioeconomic status. With around 34% of the Saudi population classified as Al Tibbi App: obese in 2014, the rate of obesity in the Kingdom has grown exponentially throughout the years. By Falling under the e-health sphere, AlTibbi.com is a website that offers information related to medical launching an app dedicated to promote a healthy lifestyle, Zain addresses this issue that is prevalent to and health issues and an app version of it is available as well. This website can directly connect the country it operates in. TransformMe allows the user to customize their own workout and diet plan subscribers to over 100 doctors located in the region.14 This application provides users with no specifically built for the user’s body and objectives. In addition to creating a diet and workout plan, this access to medical experts a channel by which users can access medical information as to avoid life app has the ability to track the user’s progress. The app is available in both Arabic and English. threatening medical issues. Vulnerable communities living in remote areas, IDPs, and refugees who have no access to medical services can benefit from this service.

FreeBasics.com: Social Media plays an extremely important and pivotal role in everyday life as people are constantly connected to their devices to ensure that they are up to date with upcoming trends and world events. Zain Iraq in partnership with Facebook provided a service where users have access to 18 online websites free of charge without data charges. The 18 websites chosen can be accessed through freebasics.com which is sponsored by Facebook. The content on the websites covers topics such as the news, employment, health, education and local news. Facebook, Bing, Refunite, Wikipedia, SmartBusiness, ACCU Weather and more are examples of the websites that users have access to.

Protecting Customer Privacy “Adherence to the GSMA Mobile Privacy Principles continues to be of upmost importance for Zain. Compliance with these principles ensures that best practices are followed on matters related to the privacy and confidentiality of customer data. Protocols in place assure the protection of customer data in order to avoid data leaks, theft and/or loss. Responses to related issues are dealt with the utmost precaution and diligence. The company complies with all laws and regulations related to the protection of customer privacy and data and takes steps to align with ISO certifications standards related to the matter. Protection of customer privacy is paramount for Zain, and as such, all necessary prudent measures will be developed on a constant basis in order to protect the customers’ data at all times.” Lebanon

Light a Candle Application: Launched in 2015, Light a Candle application is a self-care application that aims to raise funds for young cancer patients living in Lebanon. This application uses dynamic animations where customers can light a virtual candle every time customers donate to the cause. The money donated is deducted from the credit of customers using prepaid lines or is added to the bill of customers with postpaid lines.12 Due to the success of the application, it has continued in 2016. In 2016 alone, a total of USD 63,839 was donated to the Children Cancer Center of Lebanon (CCCL) which results to a total of USD 121,765 collected since its inception.

Tawasol Line: Source: 12 https://www.cccl.org.lb/monthly-hope.php Zain created several commercial packages that are intended to facilitate connectivity, which is 13 http://www.unhcr.org/figures-at-a-glance.html much needed amongst refugee and IDP populations. The Tawasol Line offered by touch offers 14 http://www.al-monitor.com/pulse/originals/2016/10/health-iraq-doctors-dohuk-kurdistan-brain-drain.html discounted rates for Syrian refugees for voice, SMS and data, as well as discounts for calls and 15 http://reports.weforum.org/digital-transformation/wp-content/blogs.dir/94/mp/files/pages/files/dti-telecommunications-industry-white-paper.pdf messages to Syria. With over one million Syrian refugees hosted in Lebanon, there is a high 16 http://www.adastra-partnering.com/big-data-monetization-telco-industry/?gclid=CjwKEAjwrMzHBRDW3saA88aT80MSJACbvo1TnGmjUy lb_CWhDArf9VI80eTCU3vs1aoGANqHB47-0hoCBzXw_wcB demand for the service, which accumulated an unprecedented number of more than 50,000 subscribers within one month of its launch in May 2015 which is still running up to date.