Algiers, June 2018

1. June 2018 | 1| Algiers Smart city | Algeria Investment Context
Algeria Investment Context
Smart Cities Global Technology and Investment Summit
June 27-28 Algiers

2. June 2018 | 2| Algiers Smart city | Algeria Investment Context
Venture Capital in MENA
Source: Deloitte PE & VC in the MENA Region 2016 report and menabytes
VC investments and deals activity VC investments volumes by region in 2016
Big exits of 2017 VC investments volumes by sector in 2016
107
121
29
205 213
172
51 54
34 33
122
175
0
50
100
150
200
250
2011 2012 2013 2014 2015 2016
Funds raised (USDm) Total number of investments
Number of investments 2016: 175
Investment value 2016: USD 127 million
Total funds raised 2016: USD 172 million
34%
21%
20%
10%
8%
4% 2% 1%
UAE Lebanon Others Egypt KSA Jordan Morocco Tunisie
UAE saw the highest level of
VC activity
UAE, Lebanon and Egypt are
the major hubs in the region
2…
20%
15%
12%
7%
5%
5%
5%
3% IT
Others
E-commerce
Fintech
Healthcare
Transportation
Media
F&B
§ Amazon acquired Souq,com for $580 million
§ Emaar malls acquired 51% stake in Rocket Internet’s Dubai based
fashion startup Namshi for $150 million valuing the company at $296
million
§ Delivery Hero acquired Kuwait based food delivery startup Carriage for
$100 million
§ Alabbar Entreprises acquired JadoPado for unknown amount
§ Souq acquired Wing.ae, a delivery startup that it had earlier invested
in

3. June 2018 | 3| Algiers Smart city | Algeria Investment Context
Startup funding in MENA
Source: MAGNiTT 2017 MENA State of Funding
5 top disclosed funding rounds in MENA Funding statistics by country
Active institutions in startups funding (by number of deals) Tickets sizes observed in MENA startups fundings
75.0
10.0
5.0
3.0
2.4
Souq
Careem
Wysada
Knockmart
DrBridge
2014
Total: USD 95,4M
60.0
11.0
11.0
10.0
5.5
Careem
Fetchr
Enerwhere
Modanisa
Arabia
Weather
350.0
270.0
67.0
22.0
20.0
Careem
Souq
Wadi
Snapp
Property
Finder
2015
Total: USD 130,5M
2016
Total: USD 734,0M
Target Fund Size Target Fund Size Target Fund Size
Target Fund Size Target Fund Size
Jordan
7,7M
10%
USD 25M
UAE
9,3M
50%
USD 232M
Lebanon
6,0M
13%
USD 43M
Egypt
90,0M
8%
USD 24M
KSA
32,0M
4%
USD 13M
Population Deals completed (in % of total MENA deals between 2014 and 2016)
Total deal value between 2014 and 2016
21
20
20
11
6
Wamda Capital
Middle East Venture Partners
MENA Venture Partners
Beco Capital
Womena
Number of disclosed deals between 2014-2016
<$50k,
12%
$50-100k,
12%
$100-250k,
25%$250-500k,
20%
$500-1000k,
15%
>$1000k,
16%
% of deals according to ticket size

4. June 2018 | 4| Algiers Smart city | Algeria Investment Context
Algeria … The African giant
Algeria
Largest country in Africa by area
Largest natural gas reserves in Africa
Largest oil crude reserves in Africa
Largest shale gas reserves worldwide
Largest energysupplier to the EU
1st
2nd
3rd
A country rich in RESOURCES
ACCESS to regional markets
7 Border markets: Tunisia, Libya, Niger, Mali, Morocco,
Western Sahara and Mauritania
Proximity to the European, African and Arab markets
Membership in the agreement of the Arab Free Trade
Area and Association Agreement with the EU
Nominal GDP in 2015
Real GDP growth rate vs world
average of 2.5% in 2015
GDP per capita in 2015 (PPP)
Largest holder of foreign currency
reserves after Saudi Arabia
External debt in 2015, compared to
US$25.3bn in 2000
$167 bn
3.9%
$14,532
2nd
ECONOMIC stability
Population in 2015
Urbanisation, the highest in North Africa
Middle Class population
Consumption expenditure growth in 2015
40m
71%
77%
9.3%
Favourable DEMOGRAPHICS
Macroeconomics REFORMS underway
2005 - 2014 infrastructure investments
Announced New Economic Growth Model in 2016,
aimed at diversification of economyfrom hydrocarbons
2011-2030 Renewable Energy Development
Programme to promote the renewable energysector
3rd
$3 bn
$500 bn
Source: IMF, World Bank, EIA, ANDI
4th
$533bn PPP GDP 2015

5. June 2018 | 5| Algiers Smart city | Algeria Investment Context
Developed infrastructure
2015 – 2019
Investment
program includes:
- Hospitals
- Transport
infrastructure
(ports and airports)
- City Transportation
systems
- Wastewater
management
- Desalination
Airports
§ 17 international airports
§ 16 national airports
Electricity
§ Accessible to
99% of the
population
Water
§ Accessible to 98% of the
population
§ 94 Dams
§ Achieved UN millennium
access to water goal
Education
§ 97 universities
§ 2,200 high schools
§ 22,000 schools
IT / Telecom penetration:
§ Mobile: 110%
§ Internet: 60%
§ 49000 Km Fiber Optics
deployed IUT
Hospitals
§ 210 hospitals
§ 1,616 polyclinics
Maritime Transport
§ 45 marine infrastructure
§ New port of 23 quays and 6.5m containers p.a. capacity
Total
Infrastructure
Spending
Roads
§ 112k km network
§ Longest highway in
Maghreb (east-west)
§ Trans-Saharan linking
Algiers to Lagos
2005-2009 2010-2014 2015-2019
$286bn
$486bn
$220bn$200bn
Rails
§ 3,973 km network
§ Network to triple
railroad network
over next 15
years
Source: ANDI, BMI, Reuters, Tell Estimates

6. June 2018 | 6| Algiers Smart city | Algeria Investment Context
Powering hub
Country Characteristics:
§ 10th largest country in the world (2.4 million sqm)
§ Largest country in Africa
§ 10th largest natural gas reserve worldwide; 2nd in Africa
§ 16th largest crude oil reserve worldwide; 2nd in Africa
§ 3rd largest shale gas reserve worldwide; 1st in Africa
§ One of the highest rates of insolation worldwide
12.2 Bn Barrels
proven reserves (OPEP)
4.5 Tn m3
proven reserves (OPEP)
Crude Oil Natural Gas Shale Gas
20 Tn m3
reserves (EIA)
Solar Energy
Solar potential of about
170 000 TWh/y
(avg of 5.7 kWh/m2/day)

7. June 2018 | 7| Algiers Smart city | Algeria Investment Context
Draft
Labor Cost (US$ per hour, 2016) Electricity cost (US$ per KWh)
Source: Tell , other sources
Algeria combines low wages and low electricity costs, making it the ideal regional platform for the
development of labor-intensive and energy-intensive industries
10.7
5.1
4.2
3.7
3.4
3.2
2.8
2.7
2.27
France
Slovénie
Espagne
Grèce
Portugal
Turquie
Pologne
République Tchèque
Algérie
0.25
0.215
0.17
0.15
0.135
0.07
0.06 0.055
0.04
0.02 0.016 0.015
0
0.05
0.1
0.15
0.2
0.25
0.3
5 times cheaper than France 16 times cheaper than Portugal
A competitive country

8. June 2018 | 8| Algiers Smart city | Algeria Investment Context
Draft
Source: Portail Algérien des Energies Renouvelables
§ The southern regions, given the availability of space and
the significant solar and wind potential that favors these
regions. Hybridization of existing diesel power plants,
thereby reducing the consumption of fossil fuels. It is also
planned to electrify scattered sites that can not be fed by
the conventional network
§ The highlands regions, which have potential for sunshine
and wind, with the possibility of acquiring land
§ Coastal areas and this depending on the availability of field
plates with the exploitation of all possible spaces
Measures and applications
Initial Renewable Energy Plan
Solar CSP
Solar PV
Wind
Biomass
13,5 GW
2 GW
5 GW
1 GW
2030 Targets
22 GW 1st Phase (2015-2020) 2nd Phase (2021-2030)
Biomass 360 640
CSP 0 2000
Wind 500 4500
PV 5000 9575
0
5000
10000
15000
In MW
4000
Solar
60%
1st Phase of 4 GW
Benefits
§ > 13.5 GW de PV (60% of 2030 mix)
§ > 13 B$ investment (CAPEX)
§ > 500.000 Jobs (35-40 par MW)
§ Access to very cheap ¢/kWh (2017 record PV)
§ Subsidy on the price of electricity
§ Gaz export
Renewable Energy programme for 2030

9. June 2018 | 9| Algiers Smart city | Algeria Investment Context
Strategic geopolitical
position
One of the world largest
potential solar site
Little debt
Financing capacity
Become one of the biggest
players in renewable energies
The biggest country in Africa Location
Gateway to Africa
A solar field that exceeds
5 billion GW/h
Coastal
Area
Highlands Sahara
Area 4% 10% 86%
Average sunshine duration (h/year) 2 650 3 000 3 500
Average energy received
(kWh/sqm²/year)
1 700 1 900 2 650
Year
Domestic
Market (MW)
Export (MW)
2020 2 600 2 000
2030 12 000 10 000
Source: Ministry of Energy
Exceptional solar capacity

10. June 2018 | 10| Algiers Smart city | Algeria Investment Context
Booming private sector
20151966 1986 1987 1998 19991990 1991 1995
The private sector
represents 95% of
the total active
economic entities
For the first time,
the concept of fair
entrepreneurial was
introduced through
the constitution
300
1m
1,7m
14K

11. June 2018 | 11| Algiers Smart city | Algeria Investment Context
New economic model
A sustained growth path for
non-hydrocarbons as
contributors to national GDP
A two to three time increase in
GDP per capita income
A doubling of the share of
manufacturing industry in terms
of added value
A modernization of the
agricultural sector in order to
achieve food security and to
realize potential for
diversification of exports
An energy transition allowing, in
particular halving the annual
growth rate of internal energy
consumption
Export diversification to support
the financing of accelerated
economic growth
The stimulation of the
creation of enterprises in
Algeria
Rapid private investment
outside of energy
Strengthening industrial
policy
Reorganization and
integration of industrial land
management
Ensuring resource safety
and energy diversification
Ensuring new governance to
go along with a new growth
model
Target Objectives
Strategic Growth Policy
Source: Algerian Ministry of Finance

12. June 2018 | 12| Algiers Smart city | Algeria Investment Context
Key Sectors of Focus
Consumer
Driven
Sectors
Agribusiness Energy Infrastructures
FMCG
Pharma
Healthcare
Entertainment
Retail
Processing
Packaging
Warehousing
Logistics
Distribution
Renewable Energy
Oil and Gas
Mining and
Industry
Natural resources
ICT
Environment
Construction
Car Industry
Heavy Indusrty

13. June 2018 | 13| Algiers Smart city | Algeria Investment Context
Draft
Algiers Smart City
project using
startups in the
Cloud and Big
Data
+25 millions subscribers
Mobile Internet
21 millions internet users
+80% of smartphones
on the Algerian Market
19 millions mobile internet
users
16 millions Facebook
users
Development of internet and
mobile payment
60% of Algerian internet users
Between 18 and 35 years
Launch of the
country’s first
telecommunication
satellite: Alcomsat
1 in December 2017
Strong growth for
VTC services:
Yassir and
TemTem
The smartphone
is the tool that
will allow
consumers to
access new
services
Natixis
launched its
first online
bank in Algeria
in 2018
Source: 2 π Digital, ONS, ARPT, Alexa.com, Facebook.com, BPCE, Global Digital 2018
Optical fiber
submarine cable
between Oran
and Valencia
Algeria is Africa’s
second most
connected
country to social
networks
Digital: a substantial growth axis for Algeria

14. June 2018 | 14| Algiers Smart city | Algeria Investment Context
Controls on foreign
exchanges
§ Guarantee of repatriation granted to foreign investors and applicable to foreign investment proceeds
§ This provision extends the guarantee of repatriation to cover contributions in kind concerning assets
located abroad, but only after the issuance of a contribution auditor’s report.
The Algerian state’s
preemptive right
Relocation of the rule
49/51
Guarantees
§ Which any sale of shares by or to foreign investors is subject to the State’s pre-emptive right. However,
only the pre-emptive right as a principle is provided by the new law.
§ The new law maintains the State’s right to purchase (improperly called pre-emptive) in the event of sale
of shares in a foreign company holding shares in an Algerian company which benefited from advantages
or facilities during its establishment.
§ The rule which limits the shareholding of a foreign investor in Algerian companies to 49%.
§ Fair and equitable treatment with regard to the rights and obligations attached to their investments.
§ The principle of non-retroactivity applies to investments .
§ In case a dispute involves the Algerian State and a national of one of the signatory States of the treaty, it
is possible to resort to arbitration through the arbitration clause provided by such treaty.
Foreign Investment
THE LAW NO.16-09 OF 3 AUGUST 2016 ON THE PROMOTION OF INVESTMENT

15. June 2018 | 15| Algiers Smart city | Algeria Investment Context
Incentives
• The aforementioned so-called « common » advantages are not
exclusive and can therefore be cumulated with advantages
provided by other incentive measures introduced in Tourism,
Industry, Agriculture
§ Number of tax exemptions and the bank interest rate subsidies
concerning thirteen (13) activities in the industrial sector:
üThe steel Dies
üMetallurgical
üHydraulic binders
üUtilities
üHome appliance
üIndustrial chemistry
üMechanical and automotive
üPharmaceutical
üAerospace, shipbuilding and repair
üAdvanced technologies
üFood industry
üTextile and clothing
üLeather and derivatives and wood products and furniture
industry
üThese advantages are established by an agreement that is
negotiated and signed with ANDI following an approval by the
CNI. The qualification criteria for this kind of investments are to
be set out in a coming implementing regulation
üThese advantages will at least include the so-called “common
advantages” (and, when applicable, the so-called “additional”
advantages) granted for longer durations. In this context, it should
be possible to request additional benefits such as, for instance, a
stabilization clause relating to energy price
The project should benefit from exceptional tax exemptions as it will
be classified in sectors of high priority for the government
Additional advantage to privileged activities and/or creator
of employment
The exceptional advantages for projects presenting a special
interest for the national economy:
ADDITIONAL & EXCEPTIONAL ADVANTAGES OF THE LAW NO.16-09 OF 3 AUGUST 2016

16. June 2018 | 16| Algiers Smart city | Algeria Investment Context
Governance
The Investment Monitoring Committee (CSI) have been created by executive decree on the 13th of March 2017
• To monitor investment acts,
• To suggest all the ways and
means to contribute to the
development of the act of
investing in Algeria,
• To anticipate all the
difficulties that may arise
and slow down the national
investment policy,
• To be interactive to propose
actions and facilitation
solutions,
MISSIONS OF THE COMITEEATTRIBUTES OF THE COMITEE
• Collect, process and analyze
investment and environment
data/information,
• Monitor and actively watchdog the
investment environment and the
conditions under which investment
projects are carried out,
• Detect any evolutions or changes in
the investment field and/or the
eventual obstacles to the act of
investing and creating companies,
together with the exchange of good
practices (benchmarking) between
Wilayas.
DATABASES MONITORED
• Allocation of land by Wilayas,
• Financing investment projects
records
• Records of investment projects in
progress
• Uncommitted investment projects
and their classification according to
difficulties and obstacles
encountered.
• Other database that can contribute
to the improvement of visibility and
anticipation in the field of
investment.
ANALYSIS AND ALERT NOTES
The investment situation and
prospects for its development
Measures or actions likely to promote
the improvement of the investment
environment.
Anticipation of constrains and
investment opportunities
INVESTMENT MONITORING COMMITEE

17. June 2018 | 17| Algiers Smart city | Algeria Investment Context
THE PRINCIPLE
CENTRAL BANK
FOREIGN
INVESTORS
DOCUMENTATION
IN CASE OF
LIQUIDATION
Banks and regulated institutions have the obligation to execute without delay, all requests related to the transfer of
dividends, profits, revenues from the disposal of foreign investments as well as attendance fees and bonuses for
foreign Directors (members of the Board of Directors).
The Central Bank’s audit is performed subsequently
Profits and dividends are transferrable for an amount equivalent to the foreign contribution into the capital.
In the event of disposal or liquidation of investments, the amount transferred is equivalent to the selloff price or the
value of the liquidation surplus to the profit of the foreign investor
For the transfer of profits, bankers may request all attestations relative to the initial capital contribution and to all
capital increases
THE PROCEDURE
Trading activities are not eligible
for profits transfers, unless justified
by a significant investment effort
Transfer of advances and down
payments on profits and dividends
are prohibited
Disposal and liquidation: Transfer
to be executed for an amount
equivalent to the real value, free of
taxes of disposed goods
File to be presented
(Instruction Central
Bank 01-09)
Process of transferring capital, capital gains and dividends
Transfer of dividends

18. June 2018 | 18| Algiers Smart city | Algeria Investment Context
Tell Capital SAS
42 rue de Bassano
Paris 75008, France
T: +33 153 578 290
F: +33 153 578 291
Paris
Tell Limited
403 Burj Daman, DIFC
PO Box 506983 Dubai, UAE
T: +971 44 53 11 46
F: +971 44 53 10 59
Dubai
Company Website
tell.group
Algiers
Tell Markets SPA
3 Chemin les Crêtes, Hydra
Algiers 16035, Algeria
T: +213 21 60 02 63
F: +213 21 60 02 91
Regulated by COSOB
and Ministry of Finance
Contact Us
facebook.com/tellgroup
linkedin.com/company/tell_group
twitter.com/tell_group
Regulated by DFSA
Mohammed Khelfaoui
Mohammed.khelfaoui@tell.group
LUXEMBOURG
Tell Group S.A.
128 Boulevard de la
Pétrusse
L-2330 Luxembourg
+352 276 27856