This document discusses mobile financial services in Kazakhstan provided by Beeline. It provides statistics on Beeline's digital financial services business including the number of issued cards, active cards, cash top-ups, transactions, users, and turnover. It outlines Beeline's legal structure for providing these services and describes the products and services offered including payments, remittances, airtime, cash out, and incoming loans and insurance. Metrics are presented on performance from 2016 to mid-2017 with growth rates. Customer interfaces and driving further adoption are also discussed.

1. ©VEON Ltd 2016
Astana, July 5th, 2017
DIGITAL FINANCIAL
SERVICES
Arshidin Tokhtamov | Product Manager | KaR-Tel LLP

2. MOBILE FINANCIAL SERVICES
IN FOCUS
1. Telecom market is transformed
3. The need to search for new points of financial growth
2. The cost of telecommunication services tends to «0»
4. Transition to a non-cash economy

3. Factors of success
WHY WE BELIEVE THAT DFS WILL TAKE OFF

4. BEELINE DFS KPI

5. HUGE OPPORTUNITIES FOR FINANCIAL SERVICES
17
51%
81%
89%
‹1%
Number of issued
cards in Kazakhstan
(mln)
Active cards as %
of total issued
Beeline balance
top-up by cash
Share of cash
volumes
MFS users in
Beeline Customer
Base

6. 6
NATIONAL BANK
COMMERCIAL BANK
LICENSE ENTITY
MNO
CLIENT
DFS IN KAZAKHSTAN:
LEGAL STRUCTURE

7. What we offer?
WHAT WE ARE DOING IN BEELINE KAZAKHSTAN

8. 1500+ merchants
in 2017
Offline Payments
Utilities, Games,
Transport…
Sim 2 Any Sim Card | ATM | Post CONCEPT WAS
CREATED
Digital Payments Remittance Air Time Cash Out Google DCB
A CARD YOU
CANNOT MISS
Beeline Card
X2
BEELINE IS THE FIRST MNO IN KAZAKHSTAN TO OFFER
FINANCIAL SERVICES IN 2016 …
200+

9. COMING SOON…
Q III (2017) Q IV (2017) Q I (2018)
Beeline Insurance Loans E-Ticketing
… WHAT’S NEXT?

10. Beeline DFS
DO OUR CUSTOMERS NEED OUR SERVICES…?

11. Unique DFS users
170+ K
35% - QII(’17)
Transactions
1.3+ M
35% - QII(’17)
Turnover
2+ B
40% - QII(’17)
Beeline DFS KPI
Performance 2016 – Q2 ’2017

12. CUSTOMER INTERFACES
TO USE DFS
Online payment portal
Money.Beeline.kz
DFS Mobile App USSD & SMS
Payments
Beeline Pay
BUTTON on the
merchant’s site

13. GOOGLE DCB
NOW IN KAZAKHSTAN

14. Beeline DFS KPI
Performance 2016 – Q2 ’2017
Unique DCB users
37 K
FROMAPR ‘17
Transactions
70+ K
FROMAPR ‘17
Apr May Jun
Transactions
398%

15. What about offline?
CUSTOMERDAILYFINANCIALROUTINES

16. High entry threshold
to merchants
High entry threshold
to clients
Customer
Experience
…STILL TOO VAST UNBANKED MARKET

17. QR PAYMENTS: 1,500 + LOCATIONS IN 2017
Scan Pay Go

18. 18
The card for
your balance…
1,5%
Cash back
0%
Cash withdrawal
6%
Balance interest
Free
Card Issue

19. 19
Virtual Prepaid Card
VPC to boost non-cash
payments
1.3 mln
Cards in H2 2017
Required: National Bank confirmation of issuing process
Instant issuing at web site

20. ©VEON Ltd 2016
THANKYOU!