ECONET WIRELESS ZIMBABWE LIMITED

Robust infrastructure, resilience through innovation

Unaudited Abridged Consolidated Financial Results

for the half year ended 31 August 2015Financial Highlights

Unaudited 31 AUGUST 2015

Unaudited 31 AUGUST 2014

Percentage Change

SUBSCRIBERS

OVERLAY SERVICES REVENUE

CONTRIBUTION OF OVERLAY SERVICES

TO REVENUE

MOBILE BROADBAND

REVENUETOTAL

REVENUE EBITDA

9 186 871 $35.5 million 11.0% $52.3 million $323.0 million $122.5 million

9 026 332 $27.5 million 7.0% $55.9 million $392.3 million $155.0 million

1.8% 29.1% 4.0% (6.4%) (17.7%) (21.0%)

33.2%

35.1%

1.9%

DEBT TO EQUITY

RATIO

Econet Wireless Zimbabwe Limited: Incorporated in the Republic of Zimbabwe. Company registration number 7548/98 | Directors: Dr. J. Myers (Chairman)*, Mr. S.T. Masiyiwa, Mr. K.V. Chirairo, Mr. M. Edge*, Mr. C. Fitzgerald*, Mr. G. Gomwe*, Mr. D. Mboweni, Mrs. T.P. Mpofu*, Ms. B. Mtetwa*, and Mrs. S. Shereni*. *Non Executive | Group Company Secretary: C.A. Banda | Registered Office: Econet Park, 2 Old Mutare Road, Msasa, Harare, Zimbabwe. E-mail: info@econet.co.zw Website: www.econet.co.zw | Registrars and Transfer Secretaries: First Transfer Secretaries (Private) Limited, 1 Armagh Avenue, Eastlea, Harare, Zimbabwe | Auditors: Deloitte & Touche, West Block, Borrowdale Office Park, Borrowdale, Harare, Zimbabwe.

for the half year ended 31 August 2015Unaudited Abridged Consolidated Financial Results

(All figures in US$ 000)

Unaudited

31 August

2015

Unaudited

31 August

2014Revenue 323,001 392,342 Earnings before interest, taxation, depreciation and

amortisation

122,535

154,976 Depreciation, amortisation and impairment (64,665) (60,403)Profit from operations 57,870 94,573

Finance income 1,917 418 Finance costs (21,232) (17,449)Profit before taxation 38,555 77,542 Taxation (14,747) (27,923)Profit after taxation 23,808 49,619

Other comprehensive (loss)/income Other comprehensive (loss)/income net of tax (329) 220 Total comprehensive income for the half year 23,479 49,839

Profit for the half year attributable to:- EWZL shareholders 24,112 49,959 Non-controlling interest (304) (340)Profit for the half year 23,808 49,619

Total comprehensive income for the half year

attributable to:-

EWZL shareholders 23,783 50,179 Non-controlling interest (304) (340)Total comprehensive income for the half year 23,479 49,839

Earnings per share Basic and diluted earnings per share (cents) 1.5 3.2 Number of shares in issue 1,640,021,430 1,640,021,430 Weighted average number of shares in issue 1,541,074,812 1,558,426,364

(All figures in US$ 000)

Unaudited

31 August

2015

Audited

28 February

2015ASSETS Property, plant and equipment and Intangible assets 864,171 883,187 Other non-current assets 43,660 33,983 Deferred taxation 18,230 19,001 Financial instruments 61,614 43,761 Banking current assets 58,168 61,498 Other current assets 198,181 215,062 Total assets 1,244,024 1,256,492

EQUITY AND LIABILITIES EQUITY Share capital and share premium 40,765 40,765 Retained earnings 612,240 614,112 Other reserves 4,305 5,894 Attributable to equity holders of the parent 657,310 660,771 Non-controlling interests 4,221 4,525 Total equity 661,531 665,296

LIABILITIES Deferred taxation 114,283 120,458 Long-term interest-bearing debt 143,483 165,758 Current liabilities 294,903 263,344 Banking current liabilities 29,824 41,636 Total liabilities 582,493 591,196

Total equity and liabilities 1,244,024 1,256,492

(All figures in US$ 000)

Unaudited

31 August

2015

Unaudited

31 August

2014

Cash generated from operations 134,188 150,325 Income tax paid (12,706) (33,369)Net cash generated from operations 121,482 116,956

Investing activities Acquisition of property, plant and equipment and intangible

assets

(45,650)

(80,013)(Decrease)/increase in deposits due to banks and

customers

(11,812) 13,280 Decrease/(increase) in loans and advances to bank

customers 7,833

(38,641)Other investing activities (3,861) 328 Net cash used in investing activities (53,490) (105,046)

Cash flows from financing activities Finance costs (17,525) (20,314)Dividend paid (4,834) (20,030)Share (buy-back)/disposal (22,261) 34,386 Proceeds from borrowings 19,404 66,113 Repayment of borrowings (38,235) (48,913)Net cash flows (used in)/from financing activities (63,451) 11,242

Net increase in cash and cash equivalents 4,541 23,152 Cash and cash equivalents at the beginning of the period 95,239 71,331 Cash and cash equivalents at 31 August 99,780 94,483

Comprising: Short-term investments 512 4,501 Bank balances and cash 99,268 89,982 Cash and cash equivalents at 31 August 99,780 94,483

31 August 2015 31 August 2014

(All figures in US$ 000)

Cellular Network

Operations Other

segments

Inter-company

Eliminations Total

Cellular Network

Operations Other

segments

Inter-company

eliminations Total

Revenue and net interest income 269,352 53,649 (75) 323,001 348,107 44,235 - 392,342

Depreciation, amortisation and impairment (61,803) (2,862) - (64,665) (57,335) (3,068) - (60,403)

Segment profit 9,533 13,624 651 23,808 46,390 3,229 635 49,619

Segment assets 1,214,013 519,658 (489,647) 1,244,024 1,195,480 472,161 (400,129) 1,267,512

Segment liabilities 487,934 458,250 (363,691) 582,493 497,188 381,254 (279,864) 598,578

This is a summarised segment report showing the Group’s major segments, Cellular Network Operations and other segments. Included in “Other” are the results of the following segments: Financial Services, Beverages, Investments and Administration.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 August 2015

UNAUDITED CONSOLIDATED STATEMENT OF CASHFLOWS For the half year ended 31 August 2015

UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the half year ended 31 August 2015

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the half year ended 31 August 2015

CHAIRMAN’S STATEMENT TO SHAREHOLDERS

SUMMARISED UNAUDITED SEGMENT INFORMATION

(All figures in US$ 000)

Share capital and

share premium

Retainedearnings

Otherreserves

Attributable to equity holders

of the parent

Non-controlling

interest Total

Balance at 1 March 2014 37,449 561,883 463 599,795 3,924 603,719

Profit for the period - 49,959 - 49,959 (340) 49,619

Dividend paid - (20,030) - (20,030) - (20,030)

Other - - 1,239 1,239 - 1,239

Sale of treasury shares 3,292 31,095 - 34,387 - 34,387

Balance at 31 August 2014 40,741 622,907 1,702 665,350 3,584 668,934

Balance at 1 March 2015 40,765 614,112 5,894 660,771 4,525 665,296

Profit for the period - 24,112 - 24,112 (304) 23,808

Share buy-back - (22,261) - (22,261) - (22,261)

Dividend paid - (4,981) - (4,981) - (4,981)

Other - 1,258 (1,589) (331) - (331)

Balance at 31 August 2015 40,765 612,240 4,305 657,310 4,221 661,531

1. General information The main business of Econet Wireless Zimbabwe Limited (“the Group”) is mobile

telecommunications and related value added services. The abridged consolidated financial results incorporate the subsidiaries and associate.

These financial statements are presented in United States dollars being the currency of the primary economic environment in which the Group operates.

2. Accounting policies The Group reports in terms of International Financial Reporting Standards (“IFRS”). The

principal accounting policies of the Group have been applied consistently in all material respects with those of the previous year.

3. Statement of compliance The results which are summarised by these abridged Group financial statements have been

prepared in conformity with IFRS promulgated by the International Accounting Standards Board (“IASB”), which include standards and interpretations approved by the IASB as well as the Standing Interpretations Committee (“SIC”).

The abridged financial results do not include all the information and disclosures required to fully comply with IFRS and should be read in conjunction with the Group’s annual financial statements as at 28 February 2015 which were distributed at the Group’s AGM.

Unaudited Unaudited 31 August 31 August

2015 2014

4. Depreciation and amortisation of property, plant and equipment and intangible assets $64.7 million $60.4 million 5. Commitments for capital expenditure Authorised by the directors but not contracted $27.2 million $59.2 million

The capital expenditure will be funded through internal and external resources and supplier credit.

6. Current liabilities Unaudited Audited 31 August 28 February

(All figures in US$ 000) 2015 2015

Current liabilities are comprised of: Deferred revenue 21,049 18,382 Financial instruments: - Trade and other payables 155,790 138,569 - Short term interest bearing debt 102,404 98,175 Other payables 15,660 8,218 294,903 263,344 7. Investments Financial investments are split into listed and unlisted investments. The carrying amounts

of the investments are equal to the market value and director’s valuation respectively.

8. Earnings per share Unaudited Unaudited 31 August 31 August

2015 2014 Earnings Profit for the half year attributable to ordinary shareholders $24.1 million $50.0 million

Number of shares Weighted number of ordinary shares for the purposes of basic and diluted earnings per share calculation 1,541,074,812 1,558,426,364

Basic and diluted earnings per share (cents) 1.5 3.2

9. Contingent Liabilities There is no material financial impact arising from events that occurred since publication of

the last annual financial statements.

10. Events after reporting date There have been no significant events after the reporting date at the time of issuing this

press release.

11. Going concern The Directors have assessed the ability of the company to continue operating as a going

concern and believe that the preparation of these abridged financial results on a going concern basis is appropriate.

INTRODUCTIONThe global telecommunications industry is increasingly being transformed by the mass adoption of connected digital technologies and applications by consumers, businesses and governments. We have continued to evolve the business model to keep pace with such industry trends whilst enhancing our leadership position in the market place. Our adoption of digital strategies in the Zimbabwean market is unparalleled as we continue to innovate products and services covering voice, broadband, content and overlay services. Our focus remains on unlocking and delivering sustainable value through enhanced customer experience, new revenue streams and efficient execution.

OPERATING ENVIRONMENTThe country is currently experiencing deflation, characterised by company closures, shrinking employment, diminishing incomes and increasing defaults on loans by both companies and individuals. These factors have all contributed to reduced spending patterns by individuals and companies alike.

Against this very tough economic backdrop, some significant regulatory changes have also impacted our telecommunications business. On 1 January 2015 the Postal and Telecommunications Regulator of Zimbabwe (POTRAZ) implemented a 35% reduction in regulated tariffs. This was in addition to the 5% excise duty on airtime sales which the Government introduced in October 2014, and which operators were not allowed to pass onto their customers. This is the first reporting period with the full impact of these fiscal measures since their introduction. While the regulator anticipated increased usage based on reduced tariffs, the anticipated price-elasticity of consumer demand has not materialised, and our revenues have clearly been adversely impacted.

BUSINESS INTERVENTIONSNotwithstanding these headwinds, the business continues to use its robust investment, innovations and strong product offerings to stabilise performance as we keep our sights and optimism on Zimbabwe’s future economic prospects and abundant opportunities.

The results of our revenue diversification strategy have, therefore, been apparent from the fact that the contribution of overlay services to our revenue has increased to 11.0%, from 7.0% in the previous year. This contribution continues to grow as we relentlessly pursue revenue and value enhancing opportunities in other sub-sectors. In this regard, the Company has extended business operations in the Mobile Financial Services; Banking; Remittances; Insurance; Internet of Things; E-Commerce and Health sectors.

The systemic deterioration in the economic environment has also necessitated a significant cost reduction effort throughout the business. A 15% reduction in the cost of supply was negotiated with all suppliers and business partners along with a 20% reduction in employee remuneration. The full impact of these cost reduction measures is not yet fully apparent in the reported performance as they were introduced in the period under review.

In addition, to preserve value under the difficult operating conditions, a review of the capital expenditure budget was undertaken to align our capital expenditure with the challenging market conditions. This has resulted in capital expenditure declining from 20.4% to 14.1% as a percentage of revenue.

In our continued efforts to demonstrate our commitment to Zimbabwe’s economic development and contribution to wealth-creation for all, the business continues to approach policy makers for dialogue on interventions that are required to protect and enhance the sector’s and Company’s contribution to the broader economy. All other things being equal, the sector’s capacity to boost economic growth exists, as evidenced by the fact that, over a 6-year period since dollarisation in 2009, the Company has paid over US$ 1.1 billion to fiscal revenues in various taxes and levies to Government, a contribution equivalent to 8% of the country’s 2014 GDP.

OPERATIONS REVIEWTo cater for growing data demands in line with global developments, the Company is constantly modernising and improving its technical infrastructure. Our network modernisation program aims to create a full Internet Protocol (“IP”) core network and an agile radio network that can support further expansion of our existing 2G, 3G and 4G/LTE capability whilst laying a solid foundation for future technologies such as 5G and Internet of Things. A simplified network architecture will reduce capital expenditure and generate operating expenditure efficiencies.

With a subscriber base that has grown to 4.9 million and over 21 000 registered agents over a 4 year period since its introduction on 28 September 2011, EcoCash is now amongst the leading mobile money service providers on the continent. To further strengthen its innovative footprint in the mobile money transfer sector, EcoCash has, through its remittance partners, opened up a wide network of international remittance channels. It is now possible for the diaspora community in South Africa to send money directly from their host country mobile phones to mobile phones in Zimbabwe. These innovations help to harness capital flows into the country.

Product and service innovation remains a high priority. During the period, various self-help and value adding convenience tools for the customer were introduced. The total number of queries handled through new self-care initiatives is now about 40% of all customer queries handled by the business. In addition, various software products were developed for customer convenience. One such product is the EcoCash application which was developed and published on the Android and Apple on-line stores to improve transacting convenience.

FINANCIAL PERFORMANCERevenue for the period under review closed at US$ 323.0 million, a 17.7% decline from prior year. Overlay services revenue, however, grew by 29.1%. Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) decreased from US$ 155.0 million to US$ 122.5 million, a decrease of 21%. The EBITDA margin declined by 1.6% to close at 37.9%. The Group has continued making debt repayments, and to accumulate profits from trading, as a result of which its debt to equity ratio has improved from 35.1 % to 33.2%.

Of note is Steward Bank’s turnaround from a negative EBITDA of US$ 3.9 million in the prior year to the current positive EBITDA of US$ 3.2 million. Its profit after taxation for the period amounted to US$ 1.9 million compared to a loss after taxation of US$ 3.7 million for the prior period. This turnaround in the bank’s performance is mainly as a result of maximising synergies as well as the cost reduction initiatives.

CORPORATE SOCIAL INVESTMENTOur very extensive corporate social investment continues to support vulnerable and orphaned children through scholarships and talent development. There are now 27 Learning Hubs, developed across the country, which provide a platform for online educational research. A cumulative total of 340 000 students have benefited from this initiative, and over 980 teachers were trained in basic Information Technology. Through its Talent Development programme, Econet continued to support academically gifted and socially responsible students on full scholarships. Over 620 students are currently on the programme studying at local and overseas universities, including Yale, Harvard and Oxford.

OUTLOOKWe have had to react decisively in the face of tough operating conditions in order to preserve shareholder value. The full effect of the measures taken will continue to flow through the financial results over time. We will continue to leverage the strength of our business model, our exceptional people, our diverse product portfolio and our robust infrastructure to build a strong and sustainable business. We will continue to exploit

NOTES TO THE UNAUDITED ABRIDGED CONSOLIDATED FINANCIAL RESULTSFor the half year ended 31 August 2015

Tip-offs Anonymous

Deloitte & ToucheTelephone: 0800 4105 Address: The Call CentreFreepost: P.O. Box HG 883, Highlands, Harare, ZimbabweE-mail: econetzw@tip-offs.com

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our extensive technological capabilities to expand our revenue streams and develop new businesses. The rapid shift of our technological landscape towards a digital world offers tremendous opportunities for the business. We have built and will continue to enhance the pillars that make us a viable leading player in the digital world.

APPRECIATIONI would like to thank all our shareholders, valued customers, regulators and strategic partners for their continued support. We are grateful for the support we have received from our suppliers and business partners, which has been invaluable in the current difficult trading environment. The employees of the business have made extraordinary contributions to the Company. I extend my appreciation to all staff and their families. I appreciate the counsel that the Board continues to provide.

DR J MYERSCHAIRMAN OF THE BOARD

6 OCTOBER 2015

DIVIDEND ANNOUNCEMENTNotice is hereby given that at its meeting held on 6 October 2015, the Board of Directors considered the current trading conditions and resolved to defer consideration of payment of a dividend to year-end.

By Order of the Board

C A BANDAGROUP COMPANY SECRETARY

Other reserves relate to the Steward Bank regulatory reserve and fair value movement in available-for-sale financial assets.