ANNUAL RESULTS PRESENTATION FOR YEAR ENDED 31 DECEMBER 2017

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1 ANNUAL RESULTS PRESENTATION FOR YEAR ENDED 31 DECEMBER 2017

2 GOVERNANCE POST THE RE-CAPITALIZATION Executive Directors Jose Dos Santos Chief Executive Officer Tyrone Soondarjee Chief Financial Officer Robert Pasley Chief Strategy Officer Non-Executive Directors Kuben Pillay Independent Chairman Laurence Nestadt Deputy Chairman Joe Mthimunye Independent Director Chris Seabrooke Non-Executive Directors - Shareholder Nominees Brett Levy Nominated by: Blue Label Telecoms Mark Levy Nominated by: Blue Label Telecoms Herman Kotzé Nominated by: Net1

TOP MANAGEMENT STRUCTURE STRENGTHENED Jose

for Government Relations Douglas Craigie

3 TOP MANAGEMENT STRUCTURE STRENGTHENED Jose Dos Santos Chief Executive Officer Tyrone Soondarjee Chief Financial Officer Michelle Beetar Chief Customer Experience Officer Surie Ramasary Chief Executive: Content Graham Mackinnon Chief Legal Officer Björn Flormann Chief Executive: Wholesale Business Nihmal Marrie Chief Digital Officer Juliet Mhango Chief HR Officer Joshua Moela Managing Executive for Government Relations Douglas Craigie Stevenson Chief Operations Officer Robert Pasley Chief Strategy Officer Sherhaad Kajee Chief Property & Procurement Officer Dana Bakker Chief Technical Officer Key new appointments were made to strengthen top management team (CFO, CDO, COO, CHRO)

4 HIGHLIGHTS 2017 KEY PERFORMANCE INDICATORS +12% YOY Service Revenue R13.2 billion +7% YOY Revenue R15.7 billion +151% YOY EBITDA R7.8 billion +29% YOY EBITDA Margin 50% +660% Net profit after tax R4.1 billion 8% of revenue Capital Expenditure R1.2 billion

5 POSITIVE RESULTS Summary of reported financial information R bln % Change Service revenue Non-service revenue Total revenue Gross margin Gross margin % 52% 51% 1 EBITDA >100 EBITDA margin % 50% 21% 29 Net profit after tax >100

6 UNPACKING OUR SUBSCRIBERS OTHER KEY PERFORMANCE INDICATORS Million % Change Total active subscribers MVNO subscriber base Total active data subscribers Data revenue (R bln) Capital expenditure (R bln) Network Investment Rand % Change Total ARPU Prepaid Contract Increase in smartphone users YOY 21 Smartphones on our network (million)

PRODUCTS & SERVICES AT A GLANCE DATA Data revenue increased by 29% whilst data usage has increased by 90% YOY; Data revenue now makes up 40% of service revenue compared to 34% a year ago; and The

7 PRODUCTS & SERVICES AT A GLANCE DATA Data revenue increased by 29% whilst data usage has increased by 90% YOY; Data revenue now makes up 40% of service revenue compared to 34% a year ago; and The effective price of data per MB has decreased by more than 36% YOY. VOICE Voice revenue decreased by 4% YOY in line with the effective price of voice per minute decreasing by 4% YOY; and Voice traffic carried by other means such as WhatsApp Calling and other VoIP services. WHOLESALE Wholesale revenue increased by R315 million (or 79%) to R717 million YOY driven by the growth in the customer base; and Customer data usage in this area generated the bulk of the revenue growth. FTTH Competitive products and pricing; and Exceptional organic growth aided by acquisitions going forward.

8 black THE FUTURE OF ENTERTAINMNET NOW. Market Disruptor - First to market, on demand, multi media interactive entertainment platform Accessible on any network across multiple devices Offering Movies, Series, Music, Sport, Games, Live TV and so much more (Local & International) Flexible pricing from as little as R5 a day Subscribe for a week, weekend or month Simple payment options first to introduce payment via Prepaid Airtime, in addition to cards and vouchers

FIBRE TO THE HOME Launched C-Fibre in 2016 with open access FNOs Vumatel, FrogFoot and Mitsol In 2017 we launched C-Fibre on Openserve, Metrofibre and Octotel on open access Fibre Networks Cell C

9 FIBRE TO THE HOME Launched C-Fibre in 2016 with open access FNOs Vumatel, FrogFoot and Mitsol In 2017 we launched C-Fibre on Openserve, Metrofibre and Octotel on open access Fibre Networks Cell C offers unlimited, unrestricted, unshaped symmetrical and asymmetrical fibre packages C-Fibre subscribers benefit from value added services that include a FREE Wi-Fi Router, FREE installation, FREE connection, personalised device set-up and 1GB LTE mobile data p/m for 12 months. In Q2 2018, Cell C will launch a triple play offer that will include mobile, fibre and entertainment through the black platform C-Fibre Base growth % Revenue growth % New connections >100 >100

10 FINANCIAL RESULTS

STRENGTHENED BALANCE SHEET R bln Dec 2017 Dec 2016 % Change Network assets 8.6 8.7 1.1 Intangible assets 1.3 0.8 63 Trade receivables and other assets 4.9 4.2 16 Deferred tax 4.0 1.

11 STRENGTHENED BALANCE SHEET R bln Dec 2017 Dec 2016 % Change Network assets Intangible assets Trade receivables and other assets Deferred tax >100 Total assets Loans and borrowings (6.8) (17.3) 61 Other liabilities provisions (6.9) (8.0) 14 Finance leases (1.5) (1.7) 12 Total liabilities (15.2) (27.5) 45 Net equity 3.8 (11.7) >100

12 CASH FLOW ANALYSIS R bln Dec 2017 Dec 2016 % Change Cash flows from operating activities Cash flows from investing activities (1.5) (2.6) 42 Cash flows from financing activities (0.22) (1.9) 88 Net decrease in cash and cash equivalents (0.15) (0.5) 70 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

2017 RESULTS PRESENTATION REPORTED FINANCIAL KEY PERFORMANCE INDICATORS R bln 7 months 2017 Pre-recap 5 months 2017 Post-recap Total 2017 Dec 2016 Dec % Change Total revenue 9.0 6.7 15.7 14.

13 2017 RESULTS PRESENTATION REPORTED FINANCIAL KEY PERFORMANCE INDICATORS R bln 7 months 2017 Pre-recap 5 months 2017 Post-recap Total 2017 Dec 2016 Dec % Change Total revenue Once off items >100 EBITDA >100 EBIT >100 Net Finance Costs (2.6) (1.1) (3.7) (0.8) >100 Net (loss)/profit before tax (1.9) >100 Tax Net (loss)/profit (1.9) >100

2017 RESULTS PRESENTATION NORMALISED FINANCIAL KEY PERFORMANCE INDICATORS R m 7 months 2017 Pre-recap 5 months 2017 Post-recap Total 2017 Dec 2016 Dec % Change Total revenue 9.0 6.7 15.7 14.

14 2017 RESULTS PRESENTATION NORMALISED FINANCIAL KEY PERFORMANCE INDICATORS R m 7 months 2017 Pre-recap 5 months 2017 Post-recap Total 2017 Dec 2016 Dec % Change Total revenue Normalised EBITDA Normalised EBIT Net finance costs (2.6) (1.1) (3.7) (0.8) >100 Normalised net (loss)/profit before tax (1.8) (0.3) (2.1) 0.3 >100 Tax Normalised net (loss)/profit (1.8) 1.8 (0.026) 0.3 >100

IMPROVING COST BASE Operational Expenditure R bln 7 months 2017 Pre-recap 5 months 2017 Post-recap 2017 2016 % Change Direct expenditure 4.4 3.1 7.5 7.

15 IMPROVING COST BASE Operational Expenditure R bln 7 months 2017 Pre-recap 5 months 2017 Post-recap % Change Direct expenditure Operating expenditure Depreciation and amortisation Total expenditure Capital Expenditure Capital expenditure has been strategically focused to enable us to provide mobile voice, data services and content through a combination of our own LTE-Advanced network that overlays our LTE, 3G and 2G networks. Cell C capital expenditure has slowed in H due to the delayed recapitalization but picked up again post recapitalization. Our total capital expenditure was: R bln Network investments

16 KEY RATIOS OTHER KEY PERFORMANCE INDICATORS % Var Interest expense/ Revenue Interest cover >100 Net Debt/EBITDA Net Debt/Normalised EBITDA >100 >100 Net Debt/Capex Please note that the recapitalisation occurred in August 2017, as a result the full impact on interest cost savings cannot been seen in 2017 financial results.

17 VOICE VS DATA REVENUE Voice vs Data revenue Growth in customer base Increased customer spend Data centric product offerings Increased smartphone users Improved network quality Voice Data

18 SERVICE REVENUE VS EQUIPMENT REVENUE R m Service Revenue vs Equipment Revenue 18,000 16,000 14,000 12,000 Service Revenue CAGR 9% 10,000 8,000 6,000 4,000 2, Service revenue Equipment revenue

19 IMPACT OF IFRS 15 AND IFRS 16 IFRS 15 Impact IFRS 16 Impact Equipment revenue will be recognized at the amount received from the subscriber and not the Communications Equipment Company Proprietary Limited ( CEC ). The subsidy provided to customers will be offset against revenue. Admin and margin fees payable to CEC will be recognized as an interest expense. The revaluation of the financial guarantee expense will be recognised an operational expense. Costs incurred to obtain and fulfil post-paid/hybrid contracts are capitalized as an intangible asset and amortised over the contract period whilst prepaid costs will be recognised in the period incurred. Cell C has elected to early adopt IFRS 16 effective 1 January The standard requires the recognition of an assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Increase in EBITDA, Net debt, depreciation and finance charges.

HANDSET FINANCING AND SUBSIDIES Overview The 2017 financial results consisted of an off-balance sheet structure The book value of handset financing is R2.2 billion (2016: R2.

20 HANDSET FINANCING AND SUBSIDIES Overview The 2017 financial results consisted of an off-balance sheet structure The book value of handset financing is R2.2 billion (2016: R2.5 billion) Handset financing consist of the following components: R m Var. Var. % Interest Charge % Subsidy Provision for future losses % % Subsidy is the difference between the amount billed to the customer and the amount received from CEC.

21 DEFERRED TAX ZAR bln Estimated tax losses available for utilisation Applied to recognise deferred tax asset Estimated unutilised tax losses (12.0) (3.9) The available assessed losses will be utilised in future by the below, amongst others: Generation of future taxable profit; Tax efficient debt restructure.

22 DEBT PROFILE Rating Overview R bln 2017 Outstanding Principle 2016 Outstanding Principle % Change We have chosen S&P as our rating agency going forward; On 7 August 2017 S&P released its updated ratings, post the restructure; Cell C currently has a long-term US$ corporate rating of B- with an outlook of Negative; The Cell C Senior Secured Bonds on the Irish Stock Exchange, due 2020, currently have a rating of B. The Recovery Rating on the Bonds is 2. Looking forward Cell C s intention to re-finance the short tem capex facilities and obtain a RCF; Cell C are actively managing the key rating drivers for a rating uplift. Restructured debt Bonds Long term debt Capex facility Gross debt <100 Less: Cash Net debt <100 Finance Leases Net debt (incl. finance leases) HSF/CEC (On- and Offbalance sheet)

23 OUR STRAGEY

24 CELL C A TURNAROUND STORY UNDERPINNED BY SUSTAINABLE GROWTH & beyond Price-driven revenue growth Innovation-driven revenue growth Recapitalisation: New shareholders - equity R7.5 billion Debt for equity conversion - R9 billion Restructured debt - R6 billion Innovation Service Quality People 12% Service Revenue R bn 15.9% % % EBITDA R bn Reported >100% 7.8 Normalised 63.2% >100% >100% * 2013 reported EBITDA 0.8 vs operational EBITDA; 2017 Normalised ; 2017 forecast

25 MARKET SHARE HAS INCREASED OVER THE LAST 5 YEARS 2017 Service Revenue Market share Cell C s 2012 share was 9.2% 12.2% 32.7% 50.7% Data driven growth 4.5% Vodacom Telkom MTN Cell C

OUR CAPEX STORY - TARGETED NETWORK ROLLOUT AND COVERAGE STRATEGY Own build focus on large urbanised areas 3G LTE Coverage map Reliance on Vodacom roaming

26 OUR CAPEX STORY - TARGETED NETWORK ROLLOUT AND COVERAGE STRATEGY Own build focus on large urbanised areas 3G LTE Coverage map Reliance on Vodacom roaming for other areas Population coverage: 2G 99%, 3G 96% Rapid LTE-A coverage expansion 51% of sites have fibre connectivity enabling smooth transition to LTE

27 CAPEX INVESTMENT HIGHLIGHTS & TARGETS CAPEX (excl. Intangibles and finance lease) (Mln ZAR) 17% 18% 16% 16% 8% Capex to revenue Efficient capex investment model 11.43% 9.3% 8.5% 8.4% 9.6% 10.6% Infrastructure sharing Spectrum Site planning (reduce roaming and improve quality) * Site rationalisation (decommissioning) Capex Roaming % * In 2017, delays in the recapitalisation resulted in a lower than expected capex spend

28 CELL C SUPPORTS THE WOAN ECA bill Addresses market failure Reduces cost Improves service levels Empowerment opportunities

CELL C STRATEGIC PRIORITIES & INNOVATIONS Business plan

Customer service excellence (Including network quality) Cell

Commissions Network expenses Fibre Site optimisation

R1.5b run rate revenue WhatsApp bundles Launched Q3 2015 R1b

transformation Network planning Distribution Products

29 CELL C STRATEGIC PRIORITIES & INNOVATIONS Business plan drivers Core revenues (Prepaid, contract, wholesale ) Customer service excellence (Including network quality) Cell C s innovative plays MVNO Cost efficiencies Roaming Commissions Network expenses Fibre Site optimisation Administrative Capital structure Wholesale Launched H R1.5b run rate revenue WhatsApp bundles Launched Q R1b run rate revenue Balance sheet strengthening Digital transformation Network planning Distribution Products Efficiencies FTTx Launched late 2016 R200m run rate revenue black Launched late /4 year play

30 Q & A

31 THANK YOU

ANNUAL RESULTS PRESENTATION FOR YEAR ENDED 31 DECEMBER 2017

ANNUAL RESULTS PRESENTATION FOR YEAR ENDED 31 DECEMBER 2017 GOVERNANCE POST THE RE-CAPITALISATION Executive Directors Jose Dos Santos Chief Executive Officer Tyrone Soondarjee Chief Financial Officer Robert