15 YEARS - Zain

15 YEARSofTRANSFORMINGJORDANZain Jordan 2010 Sustainability Report

Table of ContentsCEO Message 315 Years of Leadership and Innovation 5Creating a Wonderful World 10Zain Jordan Sustainability Snapshot 12Heart - Empowering People 13Providing Access to All and Digital Inclusion 15Connecting Across Borders 17Mobile Money 19Delivering Mobile Content and Entertainment 21Activating Youth 23Belonging - Transforming Jordan 25Contributing to the Economy 27Mobilizing Business 30Enabling Government 32Investing in Communities 34Radiance - Striving For Excellence 41The Zainers 44A World Class Network 50Caring for Our Customers 53Our Business Partners 56Environmental Stewardship 59Responsible Business 63Our 2011 Commitments 67Appendices 68Appendix A – Zain Jordan’s Stakeholder Engagement 68Appendix B – Scope of the Report 71Appendix C – GRI Statement 73Appendix D – GRI Index 74Appendix E – Glossary 77Appendix F – Acronyms 79Supporting a Low-Carbon Society 381

About This ReportWe at Zain Jordan are in the process of implementingsustainability management practices as a way to improve,environmental and social performance. This report will act asa baseline from which we will report annually to stakeholderson our sustainability performance.In preparation of this report, we have followed the GlobalReporting Initiative’s G3 Guidelines - the leading internationalguidelines for sustainability reporting. The GRI has assessedand confirmed that this report achieves a GRI ApplicationLevel B.This report is one of many steps that we are embarkingupon in order to achieve greater stakeholder engagement,collaboration and innovation. Therefore we would encourageall of our stakeholders to provide us with comments, feedbackor questions regarding the contents of this report, or to get intouch with our internal sustainability committee.Get in Touch with us at info.jo@jo.Zain.com, Amman, Jordan,P.O. Box 9408212

CEO MessageWe believe that achievingthe ongoing andsustainable developmentof Jordan is not onlythe responsibility ofgovernment, but alsothe responsibility of thepeople, organisationsand companies that operate within this country. It is ourcollective responsibility as citizens, and corporate citizens towork together in a coordinated and responsible manner thatcreates value and prosperity for all.At Zain Jordan we celebrated our 15 year anniversary in 2010,a key milestone as we continue to innovate and lead themobile telecommunications sector in Jordan and the region.With this position of leadership comes responsibility to ensurethat we have a positive impact on the economy, society andenvironment of Jordan.Building upon the success and recognition for engaging withthe community through our well established corporate socialresponsibility activities, we have committed to embark on ajourney towards the implementation of organisation-widesustainability management and public sustainability reportingas the next step in management excellence. This strategicmove is designed to ensure that as an organisation weimprove our ability to measure, manage and ultimately delivergreater economic, social and environmental performance andimpact.With the publishing of this 2010 baseline SustainabilityReport, and the creation of our sustainability framework, wehave taken the first step in our journey towards improvedsustainability performance. Within the report itself weprovide an overview of how our core business, organisationalvalues and products and services align to the principlesof sustainable development and demonstrate how we arecreating a Wonderful World by:- Empowering People,- Transforming Jordan, and- Striving for ExcellenceTo demonstrate our impact we have presented our baselineperformance data and disclosed information on how weapproach important sustainability related issues, in line withthe internationally recognised framework for sustainabilityreporting – the Global Reporting Initiatives (GRI). In usingthese guidelines we have self-declared this report to haveachieved a GRI Level B for transparency and disclosure and3

15 Years of Leadership and InnovationZain’s Values: Radiance, Heart and BelongingZain’s Mission: to cement Zain as a leading global mobileoperator that provides professional, world-class mobileand data services to all our customers, wherever they are,worldwide. And we aim to achieve this by exceeding ourcustomers’ expectations, rewarding our employees, andproviding returns beyond reasonable expectations for ourshareholders.Zain JordanIn 1994, Zain Jordan (formally known as Fastlink) becamethe first mobile services company to operate in Jordan.Today, Zain Jordan is the leading integrated mobiletelecommunications provider in Jordan and a leader ofmobile innovation across the region.As a result of market liberalisation in 2001, Zain Jordanoperates in one of the most competitive mobiletelecommunications markets in the region. Zain Jordan hasevolved from a provider of mobile content; voice and ShortMessage Services (SMS), to a provider of fixed and mobilebroadband, data services, enterprise solutions, and recentlyin 2011, mobile commerce, becoming a truly integratedmobile telecommunications provider that caters to theneeds of individuals, families, businesses, government andorganisations of all sizes.Voice & SMSZain Jordan delivers a widerange of voice and SMSservices to suit the needsof Jordanians across theKingdom.Zain EnterpriseZain Jordan delivers fullyintegrated enterprisesolutions that createoutstanding value forbusinesses and organisations.IntegratedServicesBroadband and DataZain Jordan delivers fixedand mobile broadbandservices that are unrivalledin speed and coverage.Mobile CommerceZain Jordan providesmobile financial servicesthrough Zain E-mal Service.5

Zain Jordan in 2010Number of Customers Calls made Broadband Customers Market Share SMS Sent2,462,473 252,000,000 24,162 40% 1,524,000,000Awards and RecognitionIn 2008, Zain Jordan won the Arabian Business magazine award for The Best Telecommunications Company in Jordan. Zain Jordan won due to its outstandingperformance, technical excellence, quality of services, level of social engagement and local community support lent by the company through a comprehensiveCSR policy and various kingdom-wide initiatives, which have touched important aspects of Jordanian life, namely education and training.In 2009, Zain Jordan received A Royal Tribute from His Majesty King Abdullah II for its Corporate Social Responsibility. Zain Jordan is the first and only company inJordan to receive such an award.Zain Jordan was awarded Best Arabic Applications at the 4th Annual Telecoms World Awards, Middle East in 2010Zain was awarded Best Brand at the 4th Annual Telecoms World Awards, Middle East in 20106

MembershipsMember of the GSM AssociationMember of the International Telecommunication Union (ITU)Member of Int@j – the Information Technology Association - JordanMember of the GSMA Mobile Alliance against Child Sexual Abuse ContentMember of the Arab Sustainability Leadership Group – a Queen Rania Al Abdullah InitiativeMember of the Regional Cable Network Alliance (RCN)Member of Injaz7

History and Milestones2005Introduced 2.75GEDGE Technology1994First MobileTelecommunicationsoperator in Jordan2002First Middle Eastern operatorto launch MMS service andGPRS technology2004Achieved ISO 9001 forQuality Management2006His Majesty King Abdullah IIvisits Zain Jordan’sheadquarters in recognitionof its corporate socialresponsibility activities2000First Middle Easternoperator to launch WAPservices2003Zain Jordan joins Zain Group inthe largest single acquisition inthe Middle East and largestprivate sector investment inJordan at the time2005Achieved ISO 27001 forInformation Security2005Offered InternationalGateway Servicesdirectly through ZainJordan’s network.2006Won the CommsMEA’s awardin the category ‘Best NewNon-voice Service’ for itsBLOG service2006Established ISP arm –Zain data8

2007First Automated SpeechRecognition (ASR) system inthe region2007Started deployment oftransmission technology2008Achieved ISO14001 forEnvironmental Management -Jordan2009A Royal Tribute from His MajestyKing Abdullah II to Zain Jordan’sCorporate Social Responsibility.company in Jordan to receivesuch an award.2007Rebrandedto Zain2007First to introduce Blackberry services, the onlyMiddle East Operator to receive the RIMInternational Award for Excellence20082007 Introduced the ONE Networklaunch Wi-max in Jordan2010Her Majesty Queen Raniavisits Zain Jordan inRamadan2011 andbeyondFirst to launch Mobile Commerce in JordanFirst to launch HSPA+ (Mobile Broadband)with nationwide coverage in Jordan9

Creating aWONDERFUL WORLD

Creating a Wonderful WorldZain Jordan’s Sustainability FrameworkOur values of Radiance, Heart and Belonging go hand in handwith sustainability as we have a direct impact on individuals(Heart), on the society and community of Jordan (Belonging)while continuing to strive for excellence in our internalbusiness operations (Radiance).Our sustainability framework reflects our values and is focusedon the three key ways in which Zain Jordan is helping to createa Wonderful World.- Belonging – Transforming Jordan through technologicalinnovation and an ever increasing contribution to thesustainable development of Jordan, its economy andcommunity.- Radiance – Striving for Excellence and leading the way withimagination and vision, creating a business environmentthat is full of joy, colour and richness, yet able to deliver thefastest, most reliable and modern technological solutionsto our customers, in a responsible and sustainable manner.Transparency and AccountabilityBELONGING Transforming JordanWith this report Zain Jordan has made a commitment togreater levels of transparency and accountability, broadeningthe dialogue we have with our stakeholders; increasingthe opportunities for mutually beneficial collaboration andinnovation, while ensuring we meet their expectations.RADIANCE Striving for ExcellenceHEARTEmpowering PeopleCreating a Wonderful World by:- Heart – Empowering People to live their lives withcourage and resolve, supporting the individual to connect,collaborate, conduct financial transactions, be entertainedand informed in real time, all the time, anywhere.In this report, we continue to map out who our keystakeholders are and what their expectations are of us. Thedetails of which can be found in Appendix A on page 70.Within this baseline report we demonstrate our progress todate towards creating a Wonderful World while recognisingthat implementing sustainability is an ongoing journey that wehave committed to in the long term.11

Zain Jordan Sustainability Snapshot2008 2009 20102008 2009 2010Heart - Empowering People2G Population Coverage 98% 99% 99.8%CSR Expenditure as a % of Pre-tax Profit 3.36% 2.08% 3.27%% of Customers Using E-vouchers - - 30%HSPA+ Population CoverageNew Indicator% of Customers Using E-billing (Post-paid) - - 3.5%Customers Covered in ONE Network(‘000’000)Number of Active E-mal Customers63.5 72.5 67*New IndicatorNumber of F.U.N. Members/employees 130 110 369Number of F.U.N. Members EmployedWithin 5 Months of GraduatingBelonging - Transforming Jordan60% 60% 80%Zain Jordan Internet Subscriptions - 510,735 521,917Radiance Striving for ExcellenceZainer Engagement (out of 5) 3.60 3.70 3.99Full Time Zainer Turnover 20% 10% 14%Total Number of Base Station Sites 1,262 1,378 1,478Network Availability (%) 99.89 99.93 99.93% of Shared Sites 3.5% 12% 15.5%Customer Satisfaction Rating (out of 10) - - 7.8HSPA+ Population CoverageNew Indicator% Spent on Local Suppliers 60% 59% 43%Zain Jordan Revenues (’000 JOD) 343,495 339,653 363,751Zain Jordan’s Contribution to TelecomsSector Revenues- 41% 43%Zain Jordan Direct Employment Generated 914 1,075 1,272Zain Jordan’s Direct Contribution toTelecoms Sector Employment17% 19% 27%Indirect Employment Generated - - 37,000Water Consumption (m3) 8,128 7,384 7,122Energy Consumption (KwH) 951,915 941,860 688,494Greenhouse Gas Emissions (CO2Equivalent – Tonnes)3,302.75 3,064.80 2,209.16Level of GRI Sustainability Reporting - - B% of Business Units Analyzed for Risk ofCorruption (of total)27% 33% 33%Ashghali Line SubscriptionsTamweelcom M-Commerce UsersNew IndicatorNew Indicator*This is an estimated number that includes customers of all Zain operations,Jawwal, and Africa’s operations included in the ONE Network.12

HeartEMPOWERINGPEOPLE

Empowering Peopleto live their lives with courageand resolve, supportingthe individual to connect,collaborate, conduct financialtransactions, be entertainedand informed in real time, allthe time, anywhere.14At Zain Jordan we recognise the immense potential that ourproducts and services have to improve and enrich the lives ofpeople across Jordan. Our greatest impact and opportunityfor contributing to sustainable development in Jordan comesthrough empowering the individual by:- Providing Access and Digital Inclusion – creating productsand services that cater to underserved markets orunderserved areas of the country, while striving to provideuniversal 2G and HSPA+ service coverage.- Connecting Across Borders – allowing our customers tointeract with Zain customers across borders, and with ourbrothers in Palestine through the innovative ONE Networkand international roaming agreements.- Delivering Mobile Content and Entertainment – developingonline, local, and personalized mobile content in bothEnglish and Arabic.- Mobile Money – pioneering M-Commerce services in Jordanwith E-mal, turning mobile phones into mobile wallets.- Activating Youth – maximizing youth opportunity anddevelopment through the Future University Network (F.U.N.),Ibda3 and youth specific packages.Empowering People Key Performance Indicators2008 2009 2010 2011 Target2G Population Coverage 98% 99% 99.8% >99.8%HSPA+ Population Coverage New Indicator 97%Customers Covered by ONENetwork (‘000’000)Number of Active Zain E-malcustomers63.5 72.5 67* -New Indicator 50,000Number of FUN Members 130 110 369 500Number of FUN MembersEmployed Within 5 Months ofGraduating60% 60% 80% 80%*This is an estimated number that includes customers of all Zain operations,Jawwal, and Africa’s operations included in the ONE Network.

Providing Access to All and Digital InclusionUniversal CoverageIncreased access to telecommunications can have significanteconomic, social and environmental impacts, empoweringpeople to connect, interact and collaborate more than everbefore. Zain Jordan continues to invest in increasing coverageand providing access to the latest technologies to as much ofJordan’s population and geography as possible.Service Coverage2008 2009 2010 2011 Target2G Population Coverage 98% 99% 99.8% >99.8%HSPA+ Population Coverage New Indicator 97%HSPA+ Speed New Indicator Up to 21 Mbps2G ServiceZain Jordan’s 2G network population coverage reaches 99.8%of the population, more than any other provider in Jordan.Zain Jordan strives to expand its coverage to reach the wholeof the population.HSPA+In March 2011, Zain launched Jordan’s widest and fastestmobile broadband service (HSPA+) upon receiving theoperating license from the TRC. Covering more than 97%of the population upon launch, Zain Jordan is providinghigh speed access to mobile broadband services to thosepreviously not served by existing providers of wireless or fixedbroadband services. The unprecedented launch includedcoverage for all governorates in Jordan while at the same time,connecting internet users at home, at work, and on the go.As only the second operator in Jordan to receive the operatinglicense, the launching of Zain Jordan’s HSPA+ products andservices will open up a whole new range of opportunities andinnovation as competition adds to the development of addedvalueservices and mobile applications. For more informationsee the ‘Delivering Mobile Content and Entertainment’ sectionpage 21.Serving the UnderservedWe at Zain Jordan have identified numerous untappedsegments of society which are unconnected or underservedby mobile telecommunications. We created a number ofproduct offerings to help overcome barriers to access totelecommunication, and provide reliable and accessiblecoverage and services by lowering entry barriers.Providing Internet AccessZain ego2go – is a USB dongle that allows customers toconnect their computers to Zain Jordan’s mobile broadbandservices. This is providing internet access to those withoutaccess to an ADSL line, with cheaper rates for those living inJordan’s underserved governorates.15

Innovative Voice PackagesThe Nile Line – offers cheap rates when calling Egypt,providing a useful solution to Egyptians working in Jordan tostay connected with their family and friends back home.The Governorates Line - targets customers in thegovernorates, offering them preferential rates when placingcalls from within the governorates to Zain customers, nomatter where they are in Jordan. The following governoratesare considered ONE ZONE – Irbid, Jerash, Maan, Al Karak,Ajloun, Al Tafealeh, Madaba, Al Mafrag, and Al Salt City.The Al Zarqa Line – provides customers in Al Zarqa with apreferential tariff when calling Zain customers (wherever theyare in Jordan) from Al Zarqa.Access for Less Able CustomersAccording to the World Bank reports on disabilities in theArab World, it is estimated that the number of disabledpersons in Jordan sits at approximately 4-5% of thepopulation. It is also estimated that in 2011, citizens over65 years old will represent 4.8% of the population. Thisrepresents a significant underserved market that couldbenefit greatly from improved access to telecommunicationsproducts and services.In 2011 Zain Jordan commits to reviewing the ease of accessto telecommunications products and services by less ablecustomers, with the aim of developing a range of tailoredproducts and services that provide for this underserved, yetsubstantial, market within Jordan.The Zain Aqaba Line – offers preferential call rates to Zainand other networks (no matter where the receiver is in thekingdom) when calling from Aqaba. It also offers a convenienttariff when calling from outside Aqaba.For more information about products and services please visitwww.jo.Zain.com16

Connecting Accross BordersOne of the fundamental ways in which Zain Jordan is ableto empower its customers is through connecting them andbringing them closer to their families, friends and colleaguesacross the Middle East and across the globe.The ONE NetworkThe ONE Network, launched in 2008 is a step towardscreating the world’s first borderless mobile phone network;connecting customers from across the Zain family. Todaythe ONE Network enables Zain Jordan customers to movefreely between all Zain operators in other countries, andsome former Zain Africa markets, while being treated as localcustomers in terms of price and service.Without changing any setting on their phones customers areable to:- Make local calls and send messages at local rates,- Receive incoming calls free of charge from all Zainnetworks across the region,- Use General Packet Radio Services (GPRS) (access theinternet, e-mail, BlackBerry and use Multimedia MessagingService (MMS)) at local rates,- Access their home country’s customer services, and- Use local vouchers to top up their balance.ONE Network2008 2009 2010Countries Covered 17 22 16*Customers Covered (‘000’000) 63.5 72.5 67*** Since Zain Group sold its African operations, a number of operators haveleft the ONE Network.** This is an estimated number that includes customers of all Zain operations,Jawwal, and Africa’s operations included in the ONE Network.With the sale of Zain Africa’s operations in 2009 the networkhas contracted. However, the ONE Network continues toconnect over 67 million people in the Middle East and Africa.The ONE Network and PalestineA large number of Palestinians currently live and travel toand from Jordan. This has prompted Zain Jordan to developcloser relationships with telecommunications companiesin Palestine working with them to provide increased opencommunication options.Cementing the historic, geographic and demographicties with our Palestinian brothers; in 2010 Zain Jordan andPalestine Communications Group (Paltel) launched the roll outof the ONE Network services between Jordan and Palestine,serving over 4 million mobile customers in both countries. Themove will see customers of Paltel’s mobile service Jawwal, andcustomers of Zain Jordan benefit from all the ONE Networkinnovations when travelling between the two countries.17

International RoamingAt Zain Jordan we have signed over 300 agreements withinternational carriers to keep customers connected whereverthey are. We are also pioneering a range of other roamingservices including maritime, in-flight roaming and globalBlackberry.In-Flight RoamingZain Jordan is amongst the first few mobile operators inthe world to introduce In-Flight Roaming services wherecustomers can use their mobile phones while flying. Theservice was successfully launched in 2010 on a number ofairlines in cooperation with Onair and AeroMobile.Maritime RoamingMaritime Roaming aims to provide coverage while at sea withZain Jordan providing this service in partnership with MaritimeCorporate Partners (MCP) and Siminn (Oceancell Service).Global BlackberryZain Jordan supports the use of Blackberry services globally.The services allow Blackberry subscribers to use and operatetheir Blackberry services through 76 operators in over 60countries through the activation of added packages.For more information about products and services please visitwww.jo.Zain.com18

Mobile MoneyAfter a year in development, in February 2011 Zain Jordanlaunched a revolution in the field of m-commerce in Jordanaimed at giving customers the power of conducting financialtransactions through their mobile phones.Zain E-malZain E-mal is a new and exclusive service for all of Zain Jordancustomers that turns the mobile phone into a mobile walletwhich can be used for deposits and withdrawals, local moneytransfers and shopping. Zain E-mal also allows subscribers topay their Zain mobile phone bills as well as recharge their talktime balance through their phones.Zain E-mal Services Include:Cash-InCustomers can deposit money in their m-wallets at any of theZain shops or accredited touch-points.Cash-OutCustomers can withdraw money from their m-wallets at any ofthe Zain shops or accredited touch-points subject to a cash-outfee.TransferCustomers can transfer money to other m-wallets, or to otherZain Jordan customers through use of temporary m-wallets.Customers wishing to withdraw money from temporarym-wallets can only do it at the Zain shops. This service is subjectto a fee.Zain Bill PaymentCustomers are able to pay mobile phone and internet billsthrough the service.Airtime Top-UpSimilar to bills payments, customers are able to top-up theirairtime or others’ through using credit from their m-wallet.Micro-Finance Loan PaymentZain Jordan customers can now use Zain E-mal to settle theirmonthly micro-loans payments.ShoppingCustomers can use the Zain E-mal Card to pay for goods at anyshop part of the Zain E-mal network.19

20Social ImpactIt is estimated that around 78% of the population in Jordanis unbanked. With a customer base of around three millioncustomers, Zain Jordan recognises that it is in a uniqueposition that enables it to provide easy to use and affordablefinancial services to all Jordanians, at their own convenience.It is expected that this service, currently available exclusivelythrough Zain Jordan, will bring significant social impacts tocommunities across the kingdom.- With the Zain E-mal service, people living in thegovernorates will be able to transfer money to theirchildren studying in Amman universities through theirmobile phones, replacing conventional money transferswith bus drivers and via acquaintances.- Communities without bank branches within close proximitywill receive banking services through Zain E-mal allowingthem to store, spend and send money.- Zain E-mal offers a simple, fast, and secure way to managemoney and to track financial transactions, minimizing timeconsumed, need for transport, and use of paper.In 2011Zain Jordan aims to increase the number of Zain E-malservices to include more advanced features such as:- International money transfers and across borders top-upservices.- Using Zain E-mal to pay for merchandise through the useof a locally-branded card.- Payment of utility bills and traffic tickets. This comesin particularly handy for owners of shops and smallbusinesses, as they will not have to shut their shops ordelay business in order to undertake such transactions inperson.- Near Field Communications (NFC) – widely seen as thenext step in mobile commerce, NFC will allow customerswith smart phones and Zain E-mal to purchase goods bysimply placing their mobile phones next to an NFC reader.Mobile commerce also has great potential in mobilizing smallbusinesses. See Zain’s support to the ‘Tamweelcom’ project in‘Mobilizing Business’ section page 30.Cooperation with Jordan’s Banking SectorTo ensure the security and effectiveness of this service, ZainJordan has had to work very closely with Jordan’s bankingsector.In June of 2010, Zain Jordan acquired the license to provideZain E-mal services from the Central Bank of Jordan with theagreement setting a limit of 2,500 JOD for the size of eachmobile wallet.Zain Jordan also has an agreement with Capital Bank asits trust bank, in which each mobile wallet JOD is backedup with a real money value of 1 JOD. Capital Bank alsoundertakes KYC (Know Your Customer) and AML (Anti-MoneyLaundering) checks for customers and grants approvals beforeactivating m-wallets.

Delivering Mobile Content and EntertainmentMobile phones are no longer devices for just calling andmessaging; they are increasingly becoming portals into aworld of information, communication, collaboration andentertainment. With estimated worldwide revenues of $5.2billion in 2010 and forecasts of 1,000 percent growth to reach$58 billion by 2014 1 , the mobile application stores are one ofthe fastest growing and most lucrative subsectors.Content development in the region, especially Arabiccontent, has been lagging behind with less than 1% of onlineapplications in Arabic, when 5.1% of the world’s populationspeaks Arabic. These facts are against forecasts predictingthe Middle East and Africa to be among the fastest growingsmart-phone markets with a sustained compound annualgrowth rate (CAGR) of 39% in the next four years 2 .Current content and entertainment offeringsRing Back TonesOffers the optionof personalizingthe Ring BackTone by thecustomer (itcould be a song,joke, corporatecommercial etc.)ChannelsOver 900 SMS,MMS and WAPPush channelsthat includespecialisedcontent availableon all handsets.Content includenews, religious,health, sports,and horoscopesSMS 2 MediaA tool wherebycustomerscan interactwith TV andradio stations.Customers canvote on certainprograms, entercompetitions,and downloadcontent fromthose mediachannelsDownloadsA variety ofcontent availablethrough ZainWAP Portal orthrough certainshort codemessages,wherebycustomerscan get tones,games, pictures,themes etc.With the launch of high speed mobile broadband (HSPA+),Zain Jordan has a unique and exciting opportunity to play avital role in pioneering and supporting the development ofonline and mobile content thus bringing greater value to ourcustomers.1 Gartner’s website / press releases. Available: http://www.gartner.com/it/page.jsp?id=15292142 International Data Corporation (IDC)21

Our Goal:“To establish Zain Jordan as a main driver for contentinnovation in the Middle East”Zain Jordan will make significant progress to this goal bybuilding an application eco system that hosts third partyapplications – developed by other content providers - aswell as those developed by Zain Jordan. By supporting localtalent in development and by following a strategy that aims to‘appify’ everything, Zain Jordan hopes to empower individualswith standard handsets and with smart-phones and give themaccess to information, specialised content, entertainment andservices previously not available.In 2011 Zain Jordan will launch Planet Zain as a platform forcontent and applications. This will be the first step towardsachieving our goal.Green ApplicationsWe believe that the potential for environmental/greenapplications is set to grow in the future as awareness ofJordan’s environmental issues increases, and as machine-2-machine mobile telecommunications technology makes thepossibility of smart grids and smart houses a reality.In 2011 Zain Jordan commits to conduct research togetherwith partners on the potential for environmental/green mobileapplications, and M2M products and services.Intellectual PropertyZain Jordan recognises the importance of protectingintellectual property in order to ensure a vibrant and growingeco system of mobile applications, products and services.As a result, in November of 2010 Zain Jordan became astrategic partner of the World Arbitration Forum for IntellectualProperty (WAFIP). In doing so Zain Jordan is hoping tobecome more actively involved in the development andinstitution of a new legal approach to prosecuting intellectualproperty violations and in forming arbitration procedures.Through the interaction of international organizations andoutstanding academic personalities, the Forum is expectedto play an important role in paving the way for legal reformregarding intellectual property issues in Jordan.22

Activating YouthComprising over 70% of the Jordanian population 3 , youngpeople are the heart and future of our business and of Jordanas a whole. Young people, by their very nature, embody ourcorporate identity; their fearlessness and thirst for life matchour company ethos to ‘be first, be daring, be different’ and toseize every opportunity that comes our way.It is for these reasons that Zain Jordan has made engagingwith youth a top priority through the creation of the FutureUniversity Network, Ibda3 and a wide range of youth targetedproducts and services.The Future University Network (FUN)As a direct response to the local and regionalchallenge of youth unemployment and inlinewith Jordan’s ICT sector goals, the FutureUniversity Network (FUN) was establishedin 2005 as an independent companycompletely owned by Zain Jordan. The FUNis a network for university students, with a vision of creating anetwork of young leaders and entrepreneurs adding value toZain Jordan and empowering young Jordanians.Members of the FUN are offered a collection of structuredtrainings, mentoring sessions and work experience to developtheir professional and entrepreneurial skills. Through revenuegeneratingopportunities set within a professional corporateenvironment, students are equipped with a range of skillsfrom project planning to sales, and are responsible for runningthe FUN business. This, in turn, directly contributes to ZainJordan’s success.10008006004002000241.821FUN in Numbers130 110572.663Number of FUN membersRevenues (thousands)2008 2009 2010 2011 Target369740.589500834.7722008 2009 2010 2011 TargetUniversities 13 18 23 23Number of Leadership Positions 5 3 28 40FUN Graduates Employed by Zain 7 10 15 19*FUN Graduates Employedwithin 5 Months of Graduating60% 60% 80% 80%* This number depends on the number of vacancies since all vacancies are internallyadvertised; priority given to Zain Jordan’s employees, then FUN members3 United Nations Development Program UNDP – Jordan. Available: http://www.undp-jordan.org/index.php?page_type=projects&project_id=8&cat=123

In 2010, around 295 FUN graduates were employed within 5months of graduating, 15 of which were employed by ZainJordan. The graduates are head-hunted by some of thelargest companies in the region. FUN had a presence in 23out of 32 universities (covering 90% of university studentsin the Kingdom), directly communicating with 36% of totaluniversity students.Ibda3 – Innovation... and BeyondLaunched in 2010 by the FUN, Ibda3 is an incubator programwhere students submit new and innovative telecom-relatedbusiness ideas. The winning project earns its team officespace in the Zain Jordan headquarters with access to all ZainJordan departments when in need of support or advice toimplement the project and ensure its success.By providing access to Zain Jordan’s knowledge andexpertise, business development processes, tools &specialists, Zain Jordan is able to nurture and support thesefuture entrepreneurs during the early stages of their projectshelping to empower them to build successful businessmodels. Winners of the first round of ideas will be announcedearly in 2011.Z-internetZain Jordan has created an internet product specificallytailored to students at universities, colleges and otherlearning institutions. It offers the opportunity for 5 studentsto subscribe and simultaneously use one internet account,offering 1Mbps speeds and free downloads from 8pm until8am. This offer provides young Jordanians with fast andreliable internet access at an important time of their lives asthey work to successfully complete their higher education.Zain SkyzZain Skyz is a club created for the youth community wherelatest offers, benefits, surprises and promotions await Skyzmembers.Zain Jordan has also issued the Zain Skyz Card in cooperationwith e-Points – a network of over 400 outlets which rewardcustomers with points for every JOD spent- through whichcustomers can redeem their e-Points and use them forpayment of their Zain Jordan’s services. Customers can alsouse their e-Points to recharge their friends’ mobile balance,and are able to check their e-Points balance through theirmobile phones.For more information about products and services please visitwww.jo.Zain.com.24

BelongingTRANSFORMINGJORDAN

Transforming Jordanthrough technologicalinnovation and an everincreasing contribution tothe sustainable developmentof Jordan, its economy andcommunity spirit.Jordan is our home and so we are rightfully committed to thelong-term sustainable development of the country’s economy,society and environment. Ultimately, it is through our productsand services and our expanding operations that we are ableto have the biggest impact. We view our contribution totransforming Jordan as:- Contributing to the Economy – boosting our direct andindirect economic contribution to Jordan by recognizingopportunities and capitalizing on Jordanian talent throughour operations, initiatives, and programs.- Mobilizing Business – offering business a whole new worldof opportunity and convenience to help it prosper in theJordanian market, while enjoying access to the latestcutting-edge technologies.- Enabling Government – leveraging our capabilities toenable government to reach all citizens and provide themwith services wherever and whenever.- Investing in the Communities – ensuring that we are positivelyand sustainably contributing to the community through oneof the largest community investment programs in the country,covering education, health and social development.- Supporting a Low-Carbon Society – providing our customerswith opportunities to reduce their environmental impact,and ours, through a range of innovative products, servicesand technologies.Transforming Jordan’s Key Performance IndicatorsZain Jordan’s Contribution to Telecoms SectorRevenues2008 2009 2010- 41% 43%Zain Jordan’s Direct Employment Generated 914 1,075 1,272Zain Jordan’s Direct Contribution to TelecomsSector Employment17% 19% 27%Indirect Employment Generated - - 37,000CSR Expenditure as a % of Pre-tax Profit 3.36% 2.08% 3.27%% of Customers Using E-vouchers - - 30%26

Contributing to the EconomyIt is estimated that revenues of the ICT sector, comprisingof multiple subsectors including, radio, TV, computingand network hardware, software, fixed and mobiletelecommunications, make up over 14% of the Jordan’sGDP (10% direct and 4% indirect). With annual growth ratesof around 25% it is one of the biggest drivers of Jordan’seconomy, and is helping to achieve His Majesty King AbdullahII’s vision of transforming Jordan into a knowledge-basedeconomy.Our Contribution to the ICT Sector in JordanCreated in 2007, Jordan’s ICT strategy has guided the sectortowards achieving this vision setting three high-level strategicobjectives to be achieved by 2011. As one of the largesttelecommunications companies in Jordan, we at Zain Jordanconstantly strive to leverage our capabilities and align ouractivities with the National ICT Strategy contributing to theachievement of its objectives.2011 ICTSector GoalInternet UsagePenetration toReach 50%ICT Sector Revenuesto Reach USD 3 BnZain’s ContributionConnecting the Un-ConnectedThe launch of Zain Jordan’s HSPA+ service is expected to have a major impact on accelerating internet penetration in Jordan as marketspreviously under-, or un-served are provided with mobile broadband coverage. For further details please see the ‘Providing Access to Alland Digital Inclusion’ section page 15.Establishing Digital Community CentresZain Jordan has established three Digital Community Centres in Karak, Baqa’a Refugee Camp, and Ma’an. The main purpose of the threecentres is to provide access to internet services for all members of the community.Providing Internet to TeachersThe ‘PC for Every Teacher’ is an extensive internet-based technology initiative launched by Zain Jordan in partnership with the Ministryof Education and the Ministry of Information and Communications Technology. Zain Jordan’s three million JOD Fund will help to boostinternet penetration and improve the quality of education.Zain Jordan has committed to provide all Ministry of Education-employed teachers with packages that contain a computer, a broadbandsubscription, and a mobile broadband line with special tariffs as part of this initiative.Continuous Leadership and InnovationWith its leadership position in the market and as a telecoms provider in Jordan, Zain Jordan’s contribution to GDP and sector revenueshave been increasing year on year. After achieving a contribution of around 17% to sector revenue goals, Zain Jordan aims to increase thiscontribution in 2011 with further investment into new innovative products and services. For more information please see the ‘EmpoweringPeople’ section page 13.27

ICT Sector DirectEmployment toReach 35,000 JobsTrainings in TelecommunicationsZain Jordan has established the first specialized Mobile Maintenance Centre in Jordan.The centre offers free training in mobile maintenance for its students, increasing theiremployability, fostering entrepreneurship and contributing to the ICT job market. Around100 students graduate from the centre each year.Zain Jordan has also created The Mobile Telecommunications Lab in Jordan University ofScience and Technology. The centre offers training for hundreds of university and postgraduateengineering students every year enabling students to carry out specializedresearch in the telecommunications field.In addition, Zain Jordan partners with ‘LoYAC’, a non-profit organization offering youthdevelopment opportunities while serving the community. We offer 10 paid internshipsthrough ‘LoYAC’ for university students, for a period of six weeks each.Additional programs and initiatives to train young graduates and prepare them for the jobmarket are available in the ‘Activating Youth’ and ‘Investing in Communities’ sections onpages 23 and 34 respectively.Our Contribution to Telecoms in JordanSector RevenuesIn 2010 Zain Jordan’s revenues reached 363 million JODaccounting for over 43% of the telecoms’ sector totalrevenues 4 , representing the largest contribution from themobile telecommunications subsector. Zain Jordan aims toincrease this figure in 2011 with further investment into newinnovative products and services.Sector EmploymentIn 2010 Zain Jordan supported 1,272 direct jobs, a figurewhich includes all those employed by Zain Jordan directly,not including its Jordanian subsidiary companies. Thisfigure represents nearly 27% of the total employment by thetelecoms sector in 2010 in Jordan.In addition, it has been estimated that by working with tierone business partners alone, Zain Jordan’s operations supportover 37,000 jobs in the Jordanian market. Please see ‘‘OurBusiness Partners’ section page 56 for more details. ZainJordan sees investment in the Jordanian employment marketcentral to ensuring the future prosperity of Jordan and theongoing supply of highly skilled labour.284 Calculations for contribution to telecoms’ sector employment and revenue are based on figures from the‘ICT & ITES Industry Statistics and Yearbook 2010’ published by Int@j and The Ministry of ICT – Jordan

Our Contribution to the EconomySince founding in 1994, Zain Jordan’s contribution to thestate treasury stands well in excess of one billion JordanianDinars, one of the biggest private sector contributions togovernment tax revenues. It is estimated that Zain Jordanadded 190 million JOD of direct and indirect economic valuein 2010. This represents a total contribution of 2.2% to theJordanian GDP.Economic Contribution2008 2009 2010Economic Value CreatedRevenues (‘000 JOD) 343,495 339,653 363,751Economic Value DistributedContribution to Government (‘000 JOD) 120,170 112,650 134,205Contribution to Community (‘000 JOD) 3,055 1,966 3,331Contribution to Employees (‘000 JOD) 23,052 22,447 26,147Contribution to Suppliers (‘000 JOD) 143,816 215,091 180,1042010 witnessed an increase in Zain Jordan’s revenues and anincrease in the economic value distributed by Zain Jordan tothe government, community, and employees.29

Mobilizing BusinessThe current information revolution is providing businesseswith new tools to communicate, collaborate, innovate andstreamline processes, whether for dealing internally withemployees, or externally with clients. It also poses new riskswhen it comes to the storage, management and movement ofconfidential data and information.As a result Zain Jordan aims to provide next-generationsolutions such as Managed Security Services to help mobilisethe business community in Jordan to take advantage of thisinformation revolution.Supporting Small Businesses and EntrepreneursAt present, Zain Jordan is supporting small businessesand entrepreneurs through a variety of integratedtelecommunications solutions. More products and servicesare due to come on-line in 2011 with the launch of HSPA+wireless broadband.TamweelcomIn December of 2010 Zain signed an agreement to offerZain E-mal services to entrepreneurs receiving micro creditassistance from Tamweelcom, the Jordan Micro CreditCompany – A Noor Al Hussein Foundation project.Through the agreement, Tamweelcom’s clients will be ableto use Zain Jordan’s E-mal services to pay their micro creditmonthly instalments through their m-wallets. The servicewill help clients who live in remote areas, with less accessto transportation, to conduct financial transactions via theirmobile phones, removing obstacles that have hindered accessto Tamweelcom’s funding in the past.The second phase of the project includes providing loansthrough mobile phones and Zain E-mal services.Ashghali LineThe ’Ashghali’ line, created in 2010, caters to small businesseshelping them to connect with employees free of charge, withpreferential rates when calling Zain Jordan and non-ZainJordan subscribers. Subscription is free, as is the creationof the closed user group, with the package also allowingmanagers and entrepreneurs to control mobile allowances.Business SolutionsZain Jordan is constantly developing new and innovativebusiness solutions, which include the development andimplementation of machine-2-machine mobile technology;set to allow a new range of innovative solutions such as smarthouse and smart grids in the future.30

In 2010 Zain Jordan offered the following business solutions:- Fleet Tracking – a vehicle tracking service that enablesbusiness owners to control their fleets using machine-2-machine technology,- SMS Messaging – allows businesses to reach largenumbers of customers through customised SMSmessaging services,- Data Centre Co-Location – businesses are able to hostservers in Zain Jordan’s fully equipped, state of the art datacentres,- Leased Lines - permanent, dedicated high performanceconnection which can carry voice, data and Internet traffic,with bandwidth of up to 1GB, and- Managed Security Services – in partnership with I(TS)²,Zain Jordan is able to provide services to help customersprotect their data against a wide range of IT securitythreats.For more information about products and services please visitwww.jo.Zain.com.31

Enabling GovernmentWith over 100% penetration rate of mobile phones,the mobile phone provides the Jordanian governmentwith an innovative and potentially more effective way tocommunicate, interact with, and ultimately serve the citizensof Jordan.Zain Jordan continues to collaborate with the Jordaniangovernment to provide communication solutions andinnovative ways to deliver governmental services andinformation through voice, SMS, internet, and mobilecommerce channels.The E-Government InitiativeIn 2006, the Jordanian government began theimplementation of the e-government initiative torevolutionise the way in which the government and thepublic interact. The initiative (www.jordan.gov.jo) is aprogram to provide governmental services and informationand two way communications with the public throughthe internet, SMS, e-mail and other ICT solutions. Theservice ultimately enhances the speed and accuracy ofgovernment services, in addition to the added conveniencefor all citizens. Zain Jordan is one of the strategic partnersinvolved in the project.In 2010 a number of services were available:- Push Messages: messages sent from the government tocitizens without their request like reminders, awarenesscampaigns, and status of a transaction.- Pull Messages: messages sent from citizens togovernmental departments to request information. Citizenscan request information through sending the number of theservice in a text message to the number 94 444.E-Government2008 2009 2010Number of Pull Messages 418,657 720,885 656,166Number of Push Messages 7,000,000 8,300,000 4,500,000Number of GovernmentDepartments Covered10 19 26In 2011 the e-government initiative is expanding to includemore government entities, and to provide a wider range ofelectronic services. The initiative is to include 28 governmententities in 2011. Zain Jordan is planning to utilize its ZainE-mal service in an integrated way with the e-governmentservices, by which citizens can pay their utility bills,governmental fines, and any other related payments throughthe use of their m-wallets.32

Public AwarenessToday, the mobile phone is one of the fastest and most powerfulforms of communication, creating an unrivalled opportunity toraise public awareness on key issues facing the Kingdom.In 2010, Zain Jordan played an effective role during thenational elections, urging citizens to practice their democraticrights of voting. Also as one of the most water poor countriesin the world, Zain Jordan has collaborated with the Ministry ofWater and Irrigation to launch a widespread campaign to raiseawareness about water conservation.GPRS Water Monitoring SystemIn partnership with the Ministry of Environment and theHigher Council for Science and Technology, Zain Jordanlaunched the ‘Real Time Water Quality Monitoring System’project. Zain Jordan established a GPRS system that monitorsand controls the quality of water in Jordan spanning 13 fieldstations, including Al-Yarmouk River, the Jordan River and theKing Abdullah canal.33

Investing in CommunitiesSince inception, Zain Jordan has invested in the developmentof communities with programs and donations costing over25 million JOD. Our community investment efforts havebeen recognized by visits to Zain Jordan by His MajestyKing Abdullah II in 2006 and by Her Majesty Queen Rania AlAbdullah in 2010.In 2010 our community investment programs focused ona number of themes including education, health, youthand sports and philanthropy. Our CSR department has anallocated annual budget that is independent of revenuesand financial performance allowing us to continually invest ininitiatives over a long period of time to ensure delivery andmaximum impact.Community Investment in Numbers2008 2009 2010Number of Initiatives 21 25 30Initiatives Linked to Products andServicesCSR Expenditure as a % of Pre-taxProfit2 2 33.36% 2.08% 3.27%As Zain Jordan moves towards the implementation ofsustainability management, we continue to evolve ourcommunity investment practices to leverage our corecompetencies, recognizing that telecommunicationstechnology can be the single most powerful tool in thepursuit of sustainable development. This will begin witha comprehensive review of our current CSR practices andthe development of an integrated community investmentstrategy.34

Education“Education = Opportunity. The opportunity to work.The opportunity to escape poverty. The opportunity tolive healthily. The opportunity to live confidently. Theopportunity to hope.”15001200900Number of students( Zain Educational Fund)Avg. cost per studentper year (JOD)1,4001,4001,4001,400500400300Number of students(Al aman Fund for Orphans Future)Amount Invested (JOD)(Al aman Fund for Orphans Future)50,000 50,000Her Majesty Queen Rania Al Abdallah 5600200With more than 70% of Jordan’s population under 30 yearsold, Zain Jordan invests heavily in programs and initiativesrelated to improving education and learning environments.MadrasatiIn 2008, Zain Jordan became a partner with Madrasati, aQueen Rania Al Abdulla initiative that aims to repair andrestore public schools in Jordan. To date, Zain Jordan hasadopted 7 schools in the Madrasati initiative providinginfrastructure and maintenance support as well as educationalprograms.Zain Education FundWith a yearly budget of over 250,000 JOD ‘The ZainEducation Fund’ covers tuition fees for a number of honourstudents. The fund was created in 2004 and 45 beneficiarystudents have graduated to date, with another 184 studentsreceiving funding from the program in 2010.30001161432008 2009 2010 2011 Target1842251000252010 2011 TargetAl Aman Fund for Orphans’ FutureZain Jordan contributes to ‘Al Aman Fund for Orphans’Future’. The Fund was created to provide scholarships tosupport the higher education of orphans around Jordan. In2010 Zain Jordan sponsored 25 scholarships.Shine AwardThe ‘Shine Award Program’is a talent award programwithin private schools thatwas launched in 2005.Awards are distributed forfour categories: academicachievements, sports, music,and photography and arts.505 Queen Rania Official Website, Vision. Accessed:June,2011. Available: http://www.queenrania.jo/rania/vision35

36Sibaq Al Ma3refeh‘The Knowledge Race’ program is a competition launchedby Zain Jordan between 32 Jordanian universities competingfor ‘The Knowledge Cup’ and a grand prize of 10,000 JOD.Aired on Jordan’s National TV, the program has managed tocreate hype amongst competing universities while openingcommunication channels between Zain Jordan and students.Other Educational Initiatives- Zain Jordan sponsors the communications section of theAmman Children’s Museum and supports annual summerprograms held by the museum.- Employees and managers volunteer to give sessions atschools and share experiences as part of our partnershipwith Injaz 6 .- The ‘PC for Every Teacher’ initiative launched in 2010 aimsto increase the quality of education in Jordan by equippingteachers with telecommunications tools and easy accessto the internet. For details see the ‘Contributing to theEconomy’ section page 27.HealthThe Zain Mobile ClinicCreated in 2002, The Zain Mobile Clinic provides a set ofmedical and educational services to communities, focusingspecifically on the governorates and remote villages. Themedical staff on-board includes a paediatric specialist, apaediatric dentist and a professional nurse/midwife.6 “Injaz” is a non-profit organization that seeks to educate and inspire young people to succeed in a globaleconomy.The clinic itself is equipped to offer patients medical anddentistry services, distribute medications and to holdeducational sessions. These services are currently providedto 20 rural villages in coordination with the Ministry of Health,covering villages in the North, South and Centre of Jordan. In2010, 3870 patients were served by the Zain Mobile Clinic.5000400030002000100002,4082,9601,027 1,1203,8701,4905,0002,5002008 2009 2010 2011TargetMobile ClinicPaediatric Clinic VisitsDentistry Clinic VisitsKing Hussein Cancer CentreOur support for the King Hussein Cancer Centre ‘KHCC’ - acentre providing cancer treatment for free to all Jordaniansto the highest international standards - started in 2003 whenwe joined efforts with the centre to launch the ‘Towards Life’campaign, a fund raising and direct cash donations campaign.In addition to direct monetary donations to the centre, ZainJordan donated a waiting room in 2009 and launched anSMS campaign during Ramadan in 2003 to collect donationsfrom Zain subscribers, which has continued into 2011. Thecampaign, Quroush El Khair, provides our customers withchannels to actively and easily donate by simply sending anSMS code to a designated number with the amount donated.The donation amounts are deducted from subscribers’balance or added to their monthly bill.

To date our contribution to the King Hussein Cancer Centre,with the help of our customers, has amounted to over 800,000JOD. In 2011 Zain is set to launch a new campaign, in which 10Piaster donations will be deducted from customers’ accountsupon their request.PhilanthropyZain Relief FundAs a result of receiving increasing requests for financialsupport, in 2004 Zain Jordan established the Zain Relief Fundin order to coordinate and institutionalize the process offinancial aid. The fund was established in partnership with theMinistry of Social Development, so that Zain Jordan couldproperly allocate funds to those in genuine need.Beneficiaries of the fund include individuals that do notfall under the umbrella of the Social Ministry’s National AidFund and can request assistance by simply filling out specialapplication forms in Zain Jordan shops.UNRWAInitiated by Zain Jordan, the partnership between Zain Groupand the UNRWA represents the first of its kind between theUNRWA and the private sector. The aim of this ongoingcampaign is to support financial, health and educationalprojects in Palestinian refugee camps.Zain Jordan also works on other projects in partnership withthe UNRWA, including a relief fund that provides financialassistance and essential needs for Palestinian refugees inJordan. For more information visit: hope.Zain.com.SOS Children’s Village Association of JordanZain Jordan supports the SOS Children’s Village Association ofJordan by covering the annual running costs of the Zain FamilyHouse in Irbid that was built by Zain Jordan in 1999. Today, eightchildren reside in the Zain House along with their SOS mother.Jordan River FoundationZain Jordan supports the Jordan River Foundation (JRF), a nonprofitNGO chaired by Her Majesty Queen Rania Al Abdullahto empower society, especially women and children. We havecontributed with the free hotline for reporting family violence andby purchasing our annual gifts and items from the JRF gift shop(hand-crafted by women in need in Jordan).Mabarret Um Al HusseinWe support Mabarret Um El Hussein Orphanage with a numberof programs and initiatives including a university scholarship, 10employment opportunities at Zain Jordan’s call centre and othervarious charity programs and activities.Youth and SportsPublic ParksZain Jordan, in partnership with Hikmat Road Safety, hasestablished a number of public parks in Amman and thegovernorates designed to provide a safe and secure environmentfor young people and their families to walk and play sports.Harat ZainWhich means Zain’s Neighbourhoods is an annual footballtournament for children aged 10-12 years from public schools.Launched in 2003, the children play under the supervision of qualifiedcoaches. Thirty-six teams and 350 children participated in 2010.37

Supporting A Low Carbon Society38With a number of major environmental issues facing Jordan,including water scarcity and global warming, the need andurgency for transitioning towards a low carbon society is growing.We at Zain Jordan aim to support this transformation byworking to reduce our extended environmental impact byproviding greener products and services to our customersand helping them to dematerialise. Zain Jordan is alsocontributing by increasing the ease and awareness ofrecycling, creating a Zain forest and by developing options fordealing with the growing global problem of e-waste.Greener Products and ServicesTopping UpIn 2008, Zain Jordan converted 100% of its Top-up scratchcards from plastic to recyclable carton. This has not onlyhelped to reduce waste, but has also generated significantcost savings. This initiative has now been scaled up to beimplemented on the Zain Group level.In 2010 Zain Jordan also launched an e-top-up servicewhereby customers with prepaid lines can top up their mobilephones credit without the need for a physical scratch card.Around 30% of our customers are currently using this service.E-billingIn 2010, we launched an e-billing service allowing our postpaidcustomers to view their bills through an online portal orin PDF format. This initiative has great potential to reduce ourprinted paper consumption and transportation, helping us toreduce cost and our environmental impact, while offering asolution to our customers to reduce their impact as well. Ourtarget is to ensure that around 6% of our post-paid customersare using e-billing by the end of 2011.Start Up KitsAll Zain Jordan start-up kits have been converted from plasticto paper; a transition that did not have a significant impacton reducing costs but has had a major environmental savingas Zain Jordan distributes well over 1 million of these startuppacks every year. Zain Jordan recognizes the next step forimproving environmental performance is to ensure that thepaper used is recycled.Supporting a Low-Carbon SocietySavings Achieved fromSwitching to RecyclableCarton Scratch Cards (JOD)% of Customers UsingE-vouchers*% of Customers UsingE-billing (Post-paid)Number of Start-up KitsDistributed2008 2009 2010* The % of customers on e-vouchers is value based2011Target15,680 246,705 174,252 160,000- - 30% 30%- - 3.5% 6%1,404,718 1,634,876 1,301,678 1,200,000

Plastic BagsEvery year Zain Jordan distributes around 30,000 plastic bagsto its customers, which is why we are currently working onconverting to using paper bags in the future.We are committed to reducing the use of plastic bags in 2011and using recyclable paper bags instead.As part of our continued commitment to greening ourservices, in 2011 we commit to conduct feasibility studies intothe possibility of rolling out biodegradable and micro SIMcards.Zain E-malZain Jordan’s mobile commerce service Zain E-mal will helpto reduce the environmental impacts of the financial servicesindustry as all transactions are conducted online saving theenvironmental costs of transport and paper usage.E-WasteE-waste is increasingly becoming a major issue in Jordan asnew technologies are deployed and old electronic devicesdiscarded, with no widely available e-waste options availableto businesses, government and the public at large.Since the mobile telecommunication industry is a majorcontributor to this issue, Zain Jordan is currently exploringthe potential of launching a nation-wide e-waste recyclingprogram that would provide all Jordanians with a safer andmore environmentally friendly option for discarding their oldhandsets and other electronic devices. We hope that this mayalso prove to be a unique stand alone business opportunityas e-waste from all sectors is ever increasing and naturalresources decreasing.In 2011 we commit to begin the implementation of anationwide e-waste recycling program.Community RecyclingIn 2010, Zain Jordan launched a schools recycling project inpartnership with JETT 7 and the Jordan Environment Society toinclude all schools in the Madrasati initiative. Paper waste willbe collected from schools to be recycled and re-distributedlater to schools in recycled forms.In 2011 Zain Jordan is planning to distribute recycling binsacross all its shops, King Hussein Park, and Zaha CulturalCentre.7 JETT is a bus company in Jordan39

Zain ForestIn 2008, Zain Jordan partnered with the environmental NGOAl Shajarah which means ‘The Tree’ to establish a forest in‘Thagret Asfour’ village in the governorate of Jerash. Selectedin cooperation with the forestry department at the Ministry ofAgriculture, the site was subject to illegal logging activities,and minimal eco-system rejuvenation due to overgrazing.Zain Forest in Numbers2008 2009 2010Total Number of Trees 4,000 4,200 4,800The establishment of the forest has not only providedprotection, but has also created a number of revenuegeneratingopportunities by employing local cistizens toconduct regular improvements in the Forest, and contributedto a sense of ownership and responsibility in the localcommunity.Zain Jordan aspires to grow its Forest in the coming yearsto have a significant impact on sequestering CO2 fromthe atmosphere, and to be able to offset some of its CO2emissions.40

RadianceSTRIVINGFOR EXCELLENCE

Striving for Excellenceand leading the way withimagination and vision, creatinga business environment that isfull of joy, colour and richness,able to deliver the fastest,most reliable and moderntechnological solutions to ourcustomers, in a responsible andsustainable manner.The key ingredient to the empowerment of individuals andtransformation of Jordan are our internal operations. Wecontinuously strive for excellence in the following areas:- The Zainers – we value our Zainers by rewarding themwith exceptional benefits, nurturing their talent, givingthem ownership and creating a safe and rewarding workenvironment.- A World Class Network – we pride ourselves in the strengthand advancement of our network, the backbone of ourbusiness and the bloodline that nurtures our innovation andleadership.delivering our brand promise adhering to the highest ethicalstandards.- Environmental Stewardship – we work hard to identify areaswhere we can minimize our environmental impact throughminimizing waste, deploying energy efficient measures, andusing renewable energy resources, to fulfil our responsibilityin preserving the environment.- Responsible Business – we adhere to high standardsof ethics, governance and accountability to all of ourstakeholders.- Caring for our Customers – we want all our customers to feelappreciated, respected and protected,- Our Business Partners – we consider our suppliers andcontractors business partners. Thus, we work closely withthem to enhance their sustainability performance while42

Striving for Excellence Key Performance IndicatorsZainer Engagement(out of 5)2008 2009 2010 2011 Target3.60 3.70 3.99 4.00Full Time Zainer Turnover 20% 10% 14% 7%2008 2009 2010 2011 TargetWater Consumption (m3) 8,128 7,384 7,122 6,765Energy Consumption(KwH)951,915 941,860 688,494 585,220Total Number of BaseStation Sites1,262 1,378 1,478 1,560Greenhouse Gas Emissions(CO2 Equivalent – Tonnes)3,302.75 3,064.80 2,209.16 1,831.07Network Availability (%) 99.89 99.93 99.93 >99.93% of Shared Sites 3.5% 12% 15.5% >15.5%Customer SatisfactionRating (out of 10)- - 7.8 8% Spent on Local Suppliers 60% 59% 43% 47%Level of GRI SustainabilityReporting% of Business unitsanalyzed for risk ofcorruption (of total)- - B A27 33 33 5043

The ZainersOur employees, the Zainers, are the key enablers for thecreation and delivery of a Wonderful World. Numbering 1,272in 2010, they form a unique family that is young, dynamic anddedicated to delivering on our brand promise by living ourvalues of Radiance, Heart and Belonging on a day-to-day basis.To ensure this family is strong, healthy and best equipped todeliver, the HR and Admin department, made up of 86 Zainers,aims to create an inspiring and people centric workplacebased on five key principles designed to ensure Fortune, Fun,Fitness, Future and Freedom for all employees at Zain Jordan.Zainers2008 2009 2010 2011 TargetTotal Zainers 914 1,075 1,272 1,270Full-Time Zainers 756 712 971 970Part-Time Zainers 158 363 301 300Senior Management 14 13 14 15Middle Management 61 66 85 88Employees 684 633 872 867of middle management and full time Zainers in 2010. Therehas also been a major increase in the number of part timeZainers since 2008 which can be attributed to the hiring ofundergraduates or recent graduates on more flexible workcontracts. Building on their experience with Zain Jordan, parttimeZainers will be equipped to launch themselves into thecorporate world. Zain Jordan expects that these part-timeZainers will become the full-time Zainers of the future.DiversityThe Zain family is a mixture of young and old, male andfemale, experienced and just starting out, committed forthe short term and committed for the long term, with Zainproviding opportunities for all, be they undergraduateslooking for paid workplace experience, or highly-skilledexperienced communications specialists.Diversity*2008 2009 2010 2011 Target% Male 72% 72% 69% 65%% Female 28% 28% 31% 35%Daily Casual Employment 155 363 301 300We have experienced year-on-year growth in the total numberof employees with significant additions made to the number% Females in MiddleManagement% Females in SeniorManagement30% 32% 28% 28%29% 15% 29% 29%44

% 18 – 30 48% 53% 60% 60%% 31 – 40 43% 40% 34% 33%% 41 – 50 7% 6% 6% 5%% 51 – 60 2% 1%

46Turnover Numbers Broken Down By Category2008 2009 2010 2011 TargetFull Time 152 (20%) 74 (10%) 133 (14%) 68 (7%)Part Time 64 (41%) 144 (40%) 253 (84%) 252 (84%)Senior Management 7 (50%) 7 (54%) 11 (79%) 6 (40%)Middle Management 21 (34%) 10 (15%) 10 (12%) 11 (13%)Employees 124 (18%) 49 (8%) 112 (13%) 93 (11%)Daily Casual Employment 64 (41%) 152 (42%) 253 (84%) 210 (70%)Male 160 (24%) 170 (22%) 280 (32%) 218 (26%)Female 56 (22%) 48 (16%) 106 (27%) 102 (23%)18 – 30 141 (32%) 178 (31%) 309 (41%) 242 (32%)31 – 40 62 (16%) 30 (7%) 64 (15%) 67 (16%)41 – 50 13 (20%) 5 (8%) 6 (9%) 7 (11%)51 – 60 0 (0%) 5 (33%) 7 (70%) 4 (16%)Compensation and BenefitsCompensation for full time employees is highly competitivewithin the Jordanian market and is adjusted based on theemployee’s expertise and education. Part time Zainers areprovided with specialised contracts or a competitive hourlywage above the Jordanian national minimum wage. Our maleto female pay ratio is 1:1 for all levels of the organisation.Zain Jordan also has a comprehensive employee benefitprogram designed to support Zainers in all aspects of theirlives while rewarding them for their contribution and loyalty.The program covers all full-time Zainers, with some benefitsextended to short term and part-time Zainers.Full-time Zainers enjoy a number of benefits including:BenefitInsuranceLeavesEntertainmentChild CareAllowancesCommunicationTravelESOPFUNDSubsidiesDetailsLocal and International Health Insurance in which employeesand their family members are covered worldwide except forthe USA, Life InsuranceIn addition to the leaves assigned by labour law, Zain Jordanprovides employees with paternity leave.Club Membership based on employee levelVacation / Education Allowances based on employee levelAccess to on-site day care centre established especially forstaff’s kids aged between 3 months and 4 yearsOvertime Allowance based on business needs and onagreement with manager, Shift / On Call Allowance,Hardship Allowance for jobs of high riskInternet subsidy, handset subsidy, post-paid line withminutes and SMS package, Staff Lines for FamilyTravel Per diem for each country, Sponsorship for Umra TripsInvolvement in the Employee Stock Ownership Programupon fulfilling a set of eligibility criteriaProvident Fund policyHousing Loan Subsidy for employees after completing 3years of employment

Benefits extended to include full-time and part-timeZainers include bonus based on company performance andindividual achievements and as per Zain’s internal guidelines;transportation allowance (based on level and functional role);subsidized meals; and access to the Zain on-site clinic which isstaffed by a doctor and two nurses.Since all employees in Zain Jordan are members of theNational Social Security Fund, as per the Jordanian LabourLaw, Zain pays 11.5% of employees’ salaries to the SocialSecurity Fund monthly, while employees are meant to pay5.5% of their salaries monthly.Provident Fund - All our employees are members in the ZainJordan provident fund. Five Percent of employees’ salaries arepaid to the fund, with Zain Jordan matching what has beenpaid with double the amount on behalf of the employee.Employees can pull out of the fund membership at any time.They are required to work for Zain Jordan for three years toaccess 60% of the benefits and for five years to access 100% ofthe benefits.The fund’s capital stands at around five million JOD to date.The fund has a separate governance body consisting of sevenmembers; five members nominated by the employees andtwo by the CEO to manage the fund and its investments.Investing in our ZainersEvery year 100% of our employees receive at least oneperformance and career development review as part ofa program called ‘Zain Dialogue’. The purpose of thesedialogues is to ensure that Zainers have what they need inorder to excel within the organisation. Based on these, theHR department is able to provide the needed training anddevelopment programs to fill skills gaps, or to provide theneeded inspiration, motivation and confidence to all Zainersto push themselves further.Training and Development2008 2009 2010 2011 TargetTotal Training Hours 28,448 14,099 23,702 40,000Total Cost of Training (JOD) 221,219 88,829 241,213 250,000Average Hours of Trainingper ZainerAverage Cost of Trainingper Zainer31 13 18 32242 82 190 197Zain Jordan offers a number of dedicated managerialprograms to promote the ongoing training and developmentof all junior, mid and senior management, including:Managing at Zain, Leadership in Disguise, LeveragingBusiness Strategy, HR for Non HR Managers, NegotiationSkills, Finances for Non Finance and Team Motivation.47

48In 2011 Zain Jordan will launch an ‘Internal Trainer Program’designed to create a pool of trainers who can guide anddevelop newer additions to the Zain family. With thisprogram we hope to further improve the quality andconsistency of our training programs while reducing costsand strengthening loyalty, commitment, skills and thecompetencies of all Zainers.Engaging ZainersAs part of the Zain dialogue and collaboration culture,we regularly measure employee satisfaction through our‘Employee Engagement’ survey. We also have a wide range ofrecognition and communication programs in place designedto engage, recognise and motivate Zainers at all levels.In the first quarter of 2011, Zain Jordan launched a newinternal communication and engagement tool entitled“3ailetna” as part of the development of the Zain JordanIntranet and in its efforts to build an online community whereemployees receive the latest news and updates of people,departments and the organization.Employee Engagement2008 2009 2010 2011 TargetEmployee Engagement (out of 5) 3.60 3.70 3.99 4.00Formal Ongoing RecognitionZain Jordan has a range of formal recognition structuresincluding:- The ‘Star’ award is for Zainers who directly interact withcustomers, and the ‘Soldier’ award is for Zainers workingin support functions and is awarded to Zainers whoshow outstanding performance supporting Zain Jordanin achieving its strategy, while showing enthusiasm anddedication to their job.- Exceptional team work performance is awarded with‘Sawa’ which means ‘Together’.- ‘Fekrati’, which means ‘My Idea’, is another reward thatis given to the Zainer with the best idea for businessdevelopment. Ideas are implemented and assessed forpositive business impact and the award is accordinglygiven to the owner of the idea.Informal RecognitionTeam leaders, managers and directors have access to‘Thank You’ cards and can award them to any Zainer in anydepartment as a sign of appreciation for high quality workthat has met the deadline on a high-efficiency level. Uponcollecting three Thank You cards, the Zainer is eligible toexchange the cards with an award of cinema tickets, lunchvouchers or gas coupons.Formal CommunicationsSince all Zainers are registered with the Jordanian NationalSecurity Fund, they are part of the Jordanian Labour Union,making them formally represented in collective bargainingagreements with the Union.

Health and SafetyZain Jordan actively manages a range of health and safetyissues from providing the optimum office environment toresponding to building fires and natural disasters.Our building measurement and monitoring system ensuresthat our employees are working in a safe and healthyenvironment as we continuously measure the luminousemittance (LUX), dry and wet temperatures, humidity levels,air change rates in the indoor environment and O2 and CO2concentrations to ensure they are all at the optimum level.Health and Safety Performance2008 2009 2010 2011 TargetA health and safety committee comprised of 35 Zainersspanning all floors of our HQ and shops have been trainedto manage evacuation incidents and to provide first aidsupport in cases of emergency. The number of the committeemembers depends on the number of departments in ZainJordan, ensuring that a certain number of members coverevery floor. Accordingly, organizational restructuring affectsthe number of members on a yearly basis.Injuries sustained in 2010 comprised of 2 slip-down injuries; 2minor cuts; and 7 non fatal road traffic accidents that occurredeither an hour before or after work, measurement of which ismandated by Jordanian Labour Law.Number of Injuries 14 18 11 0Number of Fatalities 0 0 0 0Number of Employees partof Formal Health and SafetyCommittee45 43 35 3049

A World Class Network50In 2010, a customer satisfaction survey showed thatZain Jordan has the highest network satisfaction ratingamongst operators in Jordan 9 . Zain Jordan has investedheavily in creating one of the most advanced mobiletelecommunication networks in the region comprised ofstate of the art fibre optic network together with over 1400transmission base stations connecting the North, South Eastand West of Jordan.Network InfrastructureTotal Number of Base StationSitesSites Awaiting Confirmation tobe Built2008 2009 2010 2011 Target1,262 1,378 1,478 1,543- - 29 7The investment made to create a network surpassinginternational specifications has ensured that Zain Jordanis ready and able to deploy new technology, carry greaterloads and ensure reliability and availability at all times. Itis what has allowed Zain Jordan to launch HSPA+ acrossthe country immediately upon receiving the license fromthe TRC. It also represents a major contributed towardsachieving His Majesty King Abdullah’s vision of Jordanbecoming the ICT hub of the region.In 2010, around 29 sites were awaiting instalment permissionsand an additional seven sites planned for 2011.9 The Customer Satisfaction report was commissioned by Zain Jordan and conducted by Ipsos Marketingin April 2010A High Quality, Reliable and Available NetworkCentral to the successful development and implementationof new products and services that empower people andtransform Jordan is the need for a reliable, high quality andreadily available network.Network Quality2008 2009 2010 2011 TargetNetwork Availability (%) 99.89 99.93 99.93 >99.93Call Set up Success Rate (%) 93 94 98 >96SMS Success Rate (%) 97 98 98 >99With our ever improving reliability and availability Zain Jordanis now able to provide new products and services designed torevolutionise sectors such as banking, health, education andgovernment that rely on failsafe systems.Site Sharing and Hybrid TechnologyZain Jordan has taken the lead in working together withcompetitors to encourage the adoption of site-sharing.Site sharing has the potential to be a major contributorto sustainable development as it optimizes resource use,reduces visual impact, limits duplication, generates revenueand gears investments toward more important pursuits suchas providing access to under-served areas, product innovationand customer care.

In addition, Zain Jordan is currently investing in transformingsome of its base stations to utilise hybrid technology reducingenergy use, costs and environmental impact.Base Station Vandalism2008 2009 2010 2011 TargetSite Sharing2008 2009 2010 2011 TargetNumber of Stand Alone Sites 1,218 1,167 1,179 1200Number of Sites on ExistingStructures0 46 70 113Number of Shared Sites 44 165 229 230% of Shared Sites 3.5% 12% 15.5% >15.5%Number of Hybrid Sites 0 8 12 17Network Security and VandalismZain Jordan’s base station sites, which span the lengthand breadth of Jordan, have been subject to incidents ofvandalism and theft over the past few years, but the numberof incidents is continuing to fall.Number of Sites Vandalised 55 15 13 ≤ 13% of Base Station Vandalism 4% 1% 0.9% ≤ 0.8%In 2010, we managed to reduce the number of incidents from55 in 2008 to 13. This was mainly due to a number of actionstaken including the isolation of sites, hiring security guards,and installing/maintaining fences and security alarms.Mast Siting and MaintenanceZain follows the TRC’s policy and regulations in choosingappropriate sites for all base stations which includes acquiringapproval from citizens in the surrounding area. A number ofchallenges are faced by Zain Jordan in locating new basestation sites including the placing of sites in highly populatedareas, expensive land rentals, difficulty acquiring citizens’consent and health concerns raised by residents.The TRC supports Zain Jordan in resolving issues surroundinghealth as Zain Jordan complies with all of the TRC’sregulations on emissions and Electromagnetic Field (EMF)issues, which are in line with the International Commission onNon-Ionising Radiation Protection (ICNIRP) guidelines.51

A Regional NetworkOur network not only provides for Jordan but also connectswith Syria in the North, Iraq in the East, Palestine in the West,Saudi Arabia, the Red Sea and Egypt in the South. Thisensures that Zain Jordan has a variety of internet suppliersand can also supply other countries with internet servicesincreasing reliability and opening up new markets.It is also the reason why Zain Jordan is part of multi country,multi company $500 million initiative to build the longestcable network (Regional Cable Network) in the Middle East,designed to reduce cost and increase reliability of internetservices across the region. This will no doubt make Jordan ahub for telecommunications in the region upon completion inthe second half of 2011.52

Caring for Our CustomersAt Zain Jordan, we continuously strive not only to enhanceour customers’ experience, but also to ensure they feelappreciated, respected and are protected from any form ofmobile misuse or security breaches.RespectAppreciating our CustomersTwo-way CommunicationWe highly appreciate our customers and value their feedbackand comments. Thus, we ensure that communicationchannels are always available and easy to use to encouragethe dialogue between Zain Jordan and customers, ultimatelyfostering a better relationship through enhanced services.ProtectCUSTOMERCAREOBJECTIVESAppreciateCommunicationChannelCallCentreShops►►DetailsFeedback is logged through Call Reason System andlooked into on a daily basis. Top management reports areproduced once a week.Through our ‘How Can We Serve You Better?’ initiative tocollect feedback, or through one-to-one meetings withcustomers. Reports are produced three times a month.Our customer care department, in collaboration with otherdepartments, ensures the delivery of the highest standardsof customer care throughout every step of the customer’sjourney with three focused objectives spanning the whole ofthe customer journey: appreciating, respecting and protectingthe customer.Customer SatisfactionCustomer Satisfaction Rating(out of 10)2008 2009 2010 2011 Target- - 7.8 8WebsiteSocialMediaSurveysFocusGroupsStreetBeat►►►►►Feedback is collected through the ‘Contact Us’ page onthe website then channelled to Customer Care for furtheractions. This is an ongoing daily process.Feedback is collected through Facebook and Twitter - a newstream for collecting recently initiated in November 2010.Customers are encouraged to provide their feedbackthrough satisfaction surveys conducted by the CustomerCare team.Customer Care conducts various Focus Groups to collectcustomers’ feedback.Customer Care goes down to the street and askscustomers directly for feedback.53

In 2011, we commit to opening up more communicationchannels through SMS texting and social media that willresult in an increase in our customer engagement andcommunication.Customer Complaints and Service LevelsWe have a sequence of steps for the management ofcustomer complaints and service levels. The complainthandling process starts with the call centre, in which FirstCall Resolution (FCR) is conducted by the call centre officers.If the complaint was not handled on FCR, it is escalated tothe Complaint Management Unit ‘CMU’ for handling. TheCMU acts as a hub for customers’ complaints and inquiries.Issues that could not be resolved internally by the ComplaintManagement Unit are subsequently forwarded to specializeddepartments for resolution.The customer satisfaction rating for our call centre hasscored the highest in Jordan as judged by the IPSOS reportconducted in 2010.Complaints and Service LevelsPercentage of CustomerComplaintsInternationalStandard*2008 2009 2010- - - 12%GSM Service Level (%) More than 80 75 82 87GSM First Call Resolution (%) More than 80 - - 82GSM Average Speed ofAnswer (sec’s)Less than 30 28 19 13Broadband Service Level (%) More than 80 - 63 83Broadband Average Speed ofAnswer (sec’s)Less than 90 - 69 40* International standards for level of service are adopted by Zain Group andare based on international benchmarks for telecom call centres54

Respecting our CustomersClarity of ChargesWe respect the customer’s right to clear information oncharges. Zain Jordan provides customers with information onour products, services, tariffs and charges through all availablechannels. Channels used include our Interactive VoiceRecognition (IVR) system, call centre and our website.Ease of BillingWith regards to ease of billing, the most recent IPSOS reportfrom 2010 has shown that our customers are highly satisfied inthis area. We continue to improve our billing and collectionsservices to cater to the customers’ needs.Protecting our CustomersInformation SecurityZain Jordan has a set policy and a management systemin place for data protection and information security. Ourmanagement system is ISO 27001 certified and is in-line withthe TRC regulations with which we are working to ensure theypromote and align with the GSMA Mobile Privacy Principles -principles that Zain Jordan officially endorses.As part of our existing policy Zain Jordan does not discloseany customer information to any third party except in casesof national security and crime detection. Governmentalagencies are required to provide warrants that enableaccess to the required information. All such cases requirethe CEO’s approval. We conduct regular vulnerability testsand produce regular reports for system breaches, if any.Zain Jordan has not encountered any major breaches ininformation security to date.EMFAs stated previously in the Networks section of this report ZainJordan fully complies with the TRC regulations with respectto Electromagnetic Fields and radio-waves. We also continueto participate and monitor developments in this area throughthe GSMA and other respected bodies.Mobile MisuseDemonstrating our commitment to tackling the problem ofmobile misuse, we are fully compliant with the campaigninitiated by the TRC for the official registration of all mobilelines. This initiative will result in the reduction of mobile phoneharassments and misuse.Additionally, Zain as a group, has formally joined the GSMAMobile Alliance against Child Sexual Abuse Content, in effortsto prevent the exploitation of minors.55

Our Business Partners56At Zain Jordan we do not just have suppliers and contractors,we have business partners whom we aim to invest in and workclosely with in order to ensure the best possible outcome forpartnership, Zain, and most importantly, the customer.Zain has built relationships that help to deliver physical Zainbranded products and supporting materials, develop thenetwork and ensure distribution and sale of our services. Anestimated 37,000 local jobs are supported by Zain through itstier one business partners. Some of the key material issuesfaced by working with a wide range of multiple businesspartners include:1. Local Sourcing – ensuring that money spent on ourbusiness partners stays within Jordan, contributing to animproved local economy.2. Environment, Health and Safety – ensuring that all businesspartners work in a responsible manner that ensures thesafety of their employees and minimal environmental impact.3. Distribution and Sales – ensuring that we have an activeand dynamic distribution and sales network that reflects theZain brand promise.Local SourcingWe realize that our industry requires continuous deploymentof the world’s latest technologies and advancements;a requirement that local suppliers cannot always meet.Therefore, our procurement policy gives priority to localsuppliers and reverts to non-local suppliers only whenrequirements could not be met locally. Additionally, ZainJordan encourages and requests many of its non-localsuppliers to develop local branches and distribution points,leading to local employment and boosting the economy. In2011 Zain Jordan aims to increase local sourcing from currentlevels of 43% in 2010.Business PartnersAmount Spent on LocalSuppliers (JOD)% Spent on LocalSuppliers (Jordanian)Amount Spent on Non-Local Suppliers (JOD)% Spent on Non-LocalSuppliersThe Environment, Health and Safety2008 2009 2010 2011 Target47,705,075 33,770,580 36,946,021 35,250,00060% 59% 43% 47%31,983,169 23,229,018 48,881,165 39,750,00040% 41% 57% 53%Zain Jordan requires all contractors to register their employeeswith the Jordanian National Security Fund, which coverstheir employees for all work-related injuries, health insuranceand ensures all partners are not engaging in child or forcedlabour practices. Regarding issues of human rights, we do notcurrently have a screening process of contractors in place.

All relevant contracts and agreements include requirementsand policies regarding issues of corruption, informationsecurity, and environmental management. We do not currentlykeep track of contractors’ environmental, health and safetyperformance, but aim to begin doing so in 2011.Our Delivery and Sales Networkhas six main dealers, with the majority performing distributionfunctions to over 3700 sub-dealers and points of sale. Thereare no differences between Zain-owned shops and thefranchises with service levels, look and feel and quality; shopsare created to be exactly the same.Zain’s Distribution ChannelsZain Jordan’s products and services reach the customerthrough a number of distribution channels. CorporateAccount Managers, Outdoor Consumer Sales and Tele-Salesare channels managed internally by Zainers.Tele SalesNumber of Zain Retail Shops /Run by ZainNumber of Employees in ZainownedShopsNumber of Zain Retail Shops /Franchise2008 2009 2010 2011 Target25 19 20 19138 160 110 1207 14 19 22OutdoorConsumerSalesCorporateAccountManagersZainDistributionChannelsZain ShopsIndirect SalesNumber of Employees inFranchise ShopsNumber of Employees inCorporate ServicesNumber of EmployeesOutdoor Consumer SalesNumber of Employees inTele-Sales18 35 66 7653 57 61 600 0 5 5- - 45 57Of the 40 Zain Shops around Jordan; 20 are Zain-ownedshops, and 20 are franchise shops owned by our dealers. ZainNumber of Sub-dealers 4300 4410 3700 380057

Zain Shops and FranchisesEmployees Training - All employees in Zain shops andfranchises go through a structured training program startingwith 21-28 days of full training in Zain offices, followed by 10-14 days of on-job training in a fully owned Zain shop, finishingwith practical and theoretical tests.Zain Standards – Zain ensures that the six dealers maintainhigh quality and delivery of our brand promise throughouttheir operations. We have a number of criteria for selectingour dealers, and there is a points-based system in place forassessing their performance and ensuring adherence tostandards. There are 105 standards in our check list that alldealers need to align to at all times.Regular Checks for Responsible Performance – We conductregular evaluation checks to ensure that quality is maintainedwhile conducting responsible operations. For example,Zain sets employees’ salaries to ensure they are being paidfair wages and dealers have to adhere to those standards.Dealers might lose points for a variety of reasons includingpoor performance in human resources managementresulting in high turnover rates and low employeesatisfaction. Dealers are also assessed for their performanceand can lose points for under-delivering on targets. Checkupsagainst the point-based system are conducted quarterly,in addition to Zain’s managers’ assessments, official checksand mystery shopper checks.Optimising our Distribution NetworkZain Jordan’s inventory and delivery management arecontrolled by the Enterprise Resources Planning (ERP-Oracle) system. The system selects Zain Jordan’s delivery andcollection routes (Procure to Pay Cycle) to optimize deliveriesand collections; reducing the number of delivery transactions,and consequently reducing cost and environmental impact.The logistics company, out-sourced by Zain, is responsible fordelivering our products to the sub-dealers and points of sale.It is also responsible for collecting faulty or used scratch cardsto be stored in Zain’s warehouses and eventually recycled.58

Environmental StewardshipThe Zain Jordan Environmental Management System (EMS)was accredited the ISO 14000 certification in April of 2008making Zain the first telecommunications company in Jordanto hold and implement an internationally certified EMS.This system has helped to identify areas of environmentalimpact in all aspects of our operations, while also determiningthe best approach to improve performance while ensuringadherence to environmental regulations and exceedingrequirements.In 2010, our network including over 1500 base stations andsites, were covered by our EMS, in addition to our facilities;including our headquarters and shops and our vehicle fleet.Significant impact areas have been identified and categorizedinto the following main areas:- Resource Consumption (energy and water, and materials)- Waste- GHG Emissions- Spills and LeakagesResource ConsumptionIndirect Energy Usage1,000,000800,000600,000400,000200,0000951,9153,427941,8603,391688,4942,479585,2202008 2009 2010 2011 TargetTotal Electricity Usage (KwH)** includes facilities and NetworkTotal Electricity Usage (GJ)2,107Indirect energy conservation has been given major attentionin recent years at Zain Jordan yielding reductions in electricityusage and costs simultaneously. Initiatives to reduce indirectenergy consumption include:- Running a solar powered water heating system at ZainJordan’s headquarters creating savings of around 11,000JOD a year.- Equipping our headquarters and some shops with asophisticated system of motion detectors in meetingrooms, which reduce lighting and air conditioning whennot in use. This is creating energy savings of around 20%and roughly 33,000 JOD every year. In addition, digitaltimers have been installed to control electricity and airconditioning in our shops.- Installation of motion detectors in our parking lots.59

- Installation of compact florescent light bulbs throughout ourheadquarters and shops.Our aim is to achieve a 15% reduction in our indirect energyuse in 2011, mainly as a direct result of implementing aBuilding Management System (BMS) at the end of the 2ndquarter of 2011.Direct Energy UsageDirect Energy Usage2008 2009 2010 2011 TargetNetworks - Diesel (Liters)* 950,000 750,000 503,000 410,000Heating - Diesel (Liters) - 28,000 20,000 16,000Fleet – Diesel (Liters) - 32,960 37,080 30,000Fleet – Petrol (Liters) - 59,520 66,960 60,000Total Diesel Usage (Liters) 950,000 810,960 560,080 456,000Total Petrol Usage (Liters) - 59,520 66,960 60,000Total Direct Energy Usage (GJ) 34,633 31,530 22,629 18,811* These numbers represent networks’ generator diesel usage, and are theaverage usage as calculated by our Networks DepartmentDiesel used through our network of base stations constitutesthe majority of our direct energy consumption. Thus, ZainJordan is running a number of projects and pilots to reduceconsumption and costs associated with our network and fleet.These include:- The introduction of hybrid technology (battery and diesel)generators to 8 base stations sites in 2009, extended to 12sites in 2010. This has resulted in diesel savings of over 40%,amounting to over 50,000 JOD in cost savings.- The transition of 28 sites from running on diesel to runningon electricity by connecting them to the electricity grid(commercial power).- The installation of solar-powered warning lights at the topsof our towers.We are currently conducting feasibility studies to install anumber of pilot renewable energy (wind and solar) basestations in 2011.Water Usage10,0008,0006,0004,0002,00008,1289.1%7,3847,1223.5%2008 2009 20106,7665%2011 Target% Reduction in WaterConsumptionWater Consumed -Utilities (Thousand m 3 )60

Most water taps are installed with motion detectors ensuringminimal waste and leakage. We intend to increase awarenessamongst employees to achieve a 5% reduction in 2011. Ourwater supply is provided through the Municipal Water Systemand we do not currently recycle or re-use water.Material ConsumptionMajor material consumption by Zain Jordan is comprised ofcivil, telecoms and power materials such as cement, poles,cables, etc. Our usage of such materials has increasedover the past 3 years with the continuous expansion ofthe network. Within our internal operations the only othermaterial consumption currently tracked includes paper whichhas increased over several years. We have set a target forreducing consumption in 2011 through initiatives such asdouble sided printing.Material Consumption2008 2009 2010 2011 TargetOil (litres) 8,000 6,000 4,500 3,500Civil (tonnes) 9,300 10,100 10,500 11,000Telecoms and Power Materials(tonnes)1,250 1,350 1,400 2,000Paper 2,820 10,130 19,045 16,188WasteAs part of our commitment to the environment, Zain Jordanaims to cut waste through initiatives designed to reduceconsumption, reuse materials and recycle as much aspossible. To date most effort has been placed on the recyclingaspect, although initiatives to ensure double sided printing,and to reuse dismantled base stations, towers, generators,and their packaging are already in place with much success.Zain collects a wide range of materials through recyclingbins placed in our headquarters and shops. Our cleaningand cafeteria staffs are trained to separate waste intorecycling categories and to monitor the quality of recyclingmaterial produced.Recycling (Amount Recycled)2008 2009 2010 2011 TargetPaper 2,533 9,801 18,713 15,378.8*Glass - 1,740 2,991 3,020.9Plastic 410 1,303 4,670 5,137Cans 405 1,774 1,798 1,887.9* Amount recycled is predicted to decrease due to reduced usage61

With regards to the actual recycling of the materials, ZainJordan gives all materials to licensed and respected recyclingfirms. When no company or facility exists to deal with therecycling of certain waste, Zain Jordan stores certain kindsof waste in its warehouses until finding an environmentallyfriendly way to dispose of them. This includes for example 165dry batteries, 436 aerosols, 65 Freon gas empty bottles and740 litres of generator disposed oil.Zain Jordan has also recently signed an agreement withHOPPECKE for the safe and proper disposal of expired basestation generator batteries. The Ministry of Environmenthas just completed the licensing of HOPPECKE as anenvironmentally friendly disposer of batteries. Zain aims torecycle 250 tonnes of batteries, currently in storage ready forrecycling in 2011.GHG Emissions3500300025002000150010005000740.752,562.003,302.75732.932,331.873,064.80535.771,673.392,209.16455.401,375.671,831.072008 2009 2010 2011 TargetEmissions Due to IndirectEnergy UsageEmissions Due to DirectEnergy UsageTotal GHG EmissionsWith 1500 sites of generators and boilers, we have agenerator maintenance program in place to ensure efficiencyand reduce amount of diesel consumed. We also have GHGemission regular checks to ensure all emissions are within themaximum allowable limit set by the Ministry of Environment.Vehicles are constantly tested to make sure that theiremissions are within the maximum allowable values set by theMinistry of Environment.Spills and LeakagesAs part of our EMS we have taken major steps to ensure theelimination of spills of oil or fuel required to run our basestation sites and used in our headquarter buildings. Theseinclude the installation of concrete barriers around dieseltanks to block any spillage an extra drainage system designedto collect spills in special pans and the availability of sandbags. Zain also conducts fortnightly and monthly checkstogether with ongoing monitoring and regular testing by thepreventative maintenance team to ensure there are no issues.As a result there were no spills recorded in 2009 or 2010.Spills and Leakages2008 2009 2010 2011 TargetTotal Number of Spills 2* 0 0 0Volume of Spills (Litres) 1,500 0 0 0* Incidents were a result of a burst in a diesel pump in our headquarter building62

Responsible BusinessGovernance, Accountability and ownershipGovernanceHeadquartered in Amman, Jordan and registered as JordanMobile Telephone Services, Zain Jordan is 96% owned by theMobile Telecommunications Company Group (MTC), knownas Zain, and 4% owned by an independent investor.As part of the Zain Group, Zain Jordan is accountable tothe Group’s Board of Directors, which is made up of eightboard members; seven male and one female. All directorsare elected once every three years by the shareholders of theorganisation. Experience and business acumen of electeddirectors are viewed as important criteria for selection. Thereare internal processes to avoid conflict of interest, and in2010 all members were non-executive independent directorsincluding the Chairman of the Board.There are two internal board committees which differentmembers preside – the Audit Committee and theRemuneration and Investment Committee. Boardremuneration, based on business performance which isannually reviewed, is voted on at the Annual General Meetingand disclosed in the Annual Report. However, at presentthere is no linkage between board compensation and specificsustainability performance.At present there is one formal mechanism of communicationbetween the board and employees of the organisationand that is through the Annual General Meeting. Howeverthe Employee Stock Ownership Plan also provides anothermechanism for employees concerns to be heard by the board.63

StructureCEOMedia PR & CSRActing DirectorLanuchManagementRegulatoryAffairsDirectorCustomer CareDirectorSales DirectorInformationTechnologyHuman ResourcesAdmin & BEActing DirectorData StrategyDirectorFinance DirectorWholesale &BusinessDevelopmentDirectorMarketingDirectorNetworkDirectorFUN ManagerLegal ManagerData SegmentDirectorMar ComCommunication& SponsorshipDirectorVoice & TundedProducts Director64

Internal AuditOne component of good corporate governance is an effectiveand independent internal audit function. An Internal AuditDepartment was created in 2003 on the Zain Group levelcovering operating companies’ operations in all countriesincluding Zain Jordan.Internal audit is an independent objective assurance andconsulting activity designed to add value and improve theoperations of Zain. It helps the Group and all operatingcompanies accomplish their objectives by bringing asystematic, disciplined approach to evaluate and improve theeffectiveness of risk management, internal control systemsand governance processes, ensuring all risks includingconflicts of interest and corruption are avoided.The scope of internal audit activities is derived from theInternal Audit Plan which is approved by the Zain Board. Thescope of work contained in internal audit plan will be basedon the Group Internal Audit Department’s assessment of theinherent risks and the significance of these risks to the Group.Ownership StakesIn 2010, Zain Jordan as an entity had ownership stakes in avariety of other organisations which have been mentionedthroughout the report, but not included in the scope of thereport, these include:- 100% of the Future University Network (FUN);- 100% of Reach Telecommunications Services;- 100% of Pella Telecom;- 26% of MADA JordanMeeting Shareholder ExpectationsAs one of the oldest members of the Group and as a leader inthe Jordanian market, Zain Jordan is expected to consistentlydeliver high performance and value to the Group and itsshareholders. This has been achieved year after year throughthe dedication to innovation and leadership shown by ZainJordan to empower people and transform Jordan.Meeting Shareholders’ Expectations2008 2009 2010Revenues (‘000 JOD) 343,495 339,653 363,751Profits (‘000 JOD) 91,006 94,680 101,803Compliance with Governmental RegulationsZain Jordan complies with all governmental laws andregulations of the Hashemite Kingdom of Jordan, including allthose set by the TRC-Jordan.Zain Jordan has had no legal cases against it in areas of labourrights, product responsibility, and environmental performance.65

Zain’s approach to tackling fraud and corruptionPolicy and TrainingThe Zain Jordan Fraud and Revenue Assurance is a subdepartmentof the Finance department responsible for handlingissues of corruption and fraud through implementation of theZain Jordan Fraud and Corruption Policy.Zain Jordan places high regard on the protection ofpersonnel, customer information, business processes,systems, software, data and property. The company policy onfraud is to ensure that all aspects of the business are properlysafeguarded, bearing in mind obligations to shareholders,customers, and employees and taking into consideration theappropriate regulatory and legal requirements.Analysis of business units and departments for risks ofcorruption is regularly conducted with 33% of business unitsanalyzed for corruption in 2010. Departments analyzed in 2010included the Sales, Credit & Collection; Finance, Marketing,Call Centre, Shops, Warehouse, Roaming and Security.Risk Analysis and Corruption2008 2009 2010 2011 TargetPreventive MeasuresWe conduct awareness sessions with employees to introducethe general fraud policy. Main points include emphasizingthe importance of information security and Zain’s intolerancetowards fraudulent behaviour. Also, the process of reportingsuspected fraud incidents is introduced to employees.Escalation Process of Fraud and/or Corruption IncidentsIn the event of suspected fraud, the Fraud Management teamconducts a thorough investigation to validate the case usingall available information. If internal fraud is confirmed by theFraud Management team, a multi-departmental committeeis formed to conduct further investigation and decide onappropriate action to be taken. Committees formed inresponse to internal fraud incidents include members ofthe Fraud Management team, the HR department, therelated employee’s management and sometimes the legaldepartment, depending on the nature of the incident. Insome cases where legal action will be taken at later stagesZain involves local authorities.Number of business unitsanalyzed for risk of corruption% of Business units analyzed(of total)% of employees trained onanti-corruption policy5 6 6 827% 33% 33% 50%0 0 10% 20%After any incident of fraud and corruption, an overall in-depthanalysis is conducted including analysis of the root-cause ofthe incident, corrective measures taken if any and preventivemeasures for the future.66

Our 2011 CommitmentsEmpowering PeopleReviewing the ease of access to telecommunications products andservices by less able customers, with the aim of developing a range oftailored products and services that provide for this underserved, yetsubstantial, market within Jordan.Conducting research together with partners on the potential forenvironmental/green mobile applications and M2M products andservices.Developing new E-mal features, and have 50,000 e-wallets activated bythe end of 2011.Transforming JordanReducing the use of plastic bags in 2011 and using recyclable paper bagsinstead.Conducting feasibility studies into the possibility of rolling outbiodegradable and micro SIM cards.Beginning the implementation of a nationwide e-waste recycling program.Distributing recycling bins across all shops, King Hussein Park and ZahaCultural Centre.Growing the Zain Forest in the coming years to have a significant impacton sequestering CO2 from the atmosphere and to be able to offset someof its CO2 emissions.Striving for ExcellenceLaunching our comprehensive and user-friendly intranet system whereZainers can interact and engage with other Zainers and the managementteam on an on-going basis.Launching an ‘Internal Trainer Program’ designed to create a pool oftrainers who can guide and develop newer additions to the Zain family.Opening up more communication channels through SMS texting andsocial media that will result in an increase in our customer engagementand communication.Increasing local sourcing from current levels of 43% in 2010.Achieving a 15% reduction in our indirect energy use in 2011, mainly asa direct result of implementing a Building Management System (BMS) atthe end of the 2nd quarter of 2011.Conducting feasibility studies to install a number of pilot renewableenergy (wind and solar) base stations in 2011.Increasing awareness amongst employees to achieve a 5% reduction inwater consumption.Recycling over 250 tonnes of batteries, currently in storage ready forrecycling.Start keeping track of our contractors’ environmental and health andsafety performance.67

Appendix A – Stakeholder EnegagementWe identify our stakeholders by a collaborative process between the CSR department and other departments. Theprocess takes into account the legitimacy, urgency and power of stakeholders, and takes departments’ feedback onefficient and effective methods of engagement. We strive to continuously engage with our stakeholders, thereforealthough the level of engagement might vary, we have communication channels with our most relevant stakeholders aspresented in the table below:Customers Business Partners Employees Zain GroupCommunicationChannels- Newspapers, Radio and TV- Direct Marketing- Call Centre- Shops- Website- Social Media- Surveys- Focus Groups- Eye on the Street- Darak, the VIP Lounge- Open Door policy- Intranet- Employee Committees;Health & Safety, and Go Greencommittee- Employee Stock OwnershipPlan (ESOP)- Logistics and ProcurementDepartment- Specific contact person for eachcontractor within Zain- Contracts and agreements- Continuous communicationbetween country and Group’sdepartmental counterparts- Board meetings- Training and strategy meetingsTheir PriorityIssues- High quality, un-interruptedservice- Affordable pricing- Availability of latest globaltechnologies- Convenience of services,including billing- Clarity of charges and tariffs- Fair and competitive wageswith an attractive benefitsscheme- High-quality training andpersonal and professionaldevelopment- Safe and vibrant workingenvironment- Non-discrimination- Recognition and engagement- Fair tendering processes withclear requirements- Responsible procurement- On time payment upon delivery- Adhering to the policies andguidelines set on the Grouplevel- Generating revenueand contributing to thedevelopment and reputation ofthe Zain brand- Innovation and contributionwith new and innovativeproducts and services68

Zain’s PriorityIssues- Being a pioneer in the marketby providing the latesttechnologies- High quality un-interruptedservice- Communicating effectivelyand continuously with ourcustomers- Providing access and digitalinclusion- Paying fair wages that ensuredecent lives for employees- Employee satisfaction- Attraction and retention oftalent- Eliminating forms ofdiscrimination- High-calibre and professionalstaff- Delivering contracts to thehighest specs- Adhering to Zain’s terms andconditions (including health,safety, environment, and labourstandards)- Receiving the required supportto plan and execute initiatives- Support and approval fornew products and servicessuggested by Zain Jordan- Recognizing Zain Jordan’sefforts and performanceZain’s Response- Offering a range of productsand services that respond tothe needs of different segmentsof the community- Utilizing all communicationchannels available tocommunicate with ourcustomers- Zain pays all its employees fairwages- Continuous training programs- Exceptional benefits- Health & safety policy andcommittee- Recognition schemes in-place;formal and informal- Intranet and programs toreceive employees’ ideas andcontributions- Applying a standard selectioncriteria to ensure fair selection- Regular checks to ensure theprovision of the required highstandards adherence to termsand conditions.- Zain’s policy for contractorscontact: an assigned contactperson within Zain to becontacted for issues concerningcontractors.- Generating revenue for theGroup and contributingpositively to the Zain brand- Continuously working oninnovating new products andservices, and being a leader inthe marketCommunity Environment Government & RegulatoryBodiesICT Sector PeersCommunicationChannels- Zain Jordan’s website ande-mail- Newspapers, Radio and TV- Social media- Public meetings with thecommunity- Zain shops- Regular communication withthe Ministry of Environment- Sector dialogue with the TRC- TRC Representatives- Ministry of ICT – Jordan- The E-Government initiative- int@j- GSMA69

Their PriorityIssues- Impacting the communitypositively through products andservices- Minimal disruption to theenvironment and localcommunity- Clear and transparentexplanations of the benefitsand disadvantages of basestations in the community- Minimizing the environmentalimpact of Zain’s operations- Minimizing the environmentalimpact of Zain’s products andservices- Using innovative technologyto contribute to environmentalawareness and action- Compliance with laws andregulations- Provision of employmentopportunities- Contributing to the economythrough taxes and revenues- Contributing to Jordan’s ICTvision- Not engaging in anticompetitivepractices- Compliance with laws andregulations- Sharing benefits andcollaboration for site andinfrastructure sharing- Maintaining a healthycompetition environment withgood relationshipsZain’s PriorityIssues- Investing and empoweringthe youth in society, andaccordingly impacting on theJordanian economy- Building close relationshipswith communities withinclose proximity to Zain’s basestations, and acquiring theirconsent when needed- Supporting long-termsustainable community projects- Minimizing environmentalimpact of Zain’s operations- Minimizing environmentalimpact of Zain’s products andservices- Contributing to environmentalawareness- Adhering to internationalstandards- Acting as a good corporatecitizen- Positively impacting theJordanian economy- Contributing to Jordan’s ICTvision- Not engaging in anticompetitivepractices- Compliance with laws andregulations- Sharing benefits andcollaboration for site andinfrastructure sharing- Maintaining a healthycompetition environment withgood relationshipsZain’s Response- Having one of the mostcomprehensive communityinvestment programs in thecountry- Creating the F.U.N. for youthdevelopment and employability- Putting in-place an easy way ofcommunicating to communitiesin need through applicationforms in shops- Creating an environmentalmanagement system- Investing in energyconservation programs forinternal operations- Investing in renewable energygenerating technologies- Providing customers withenvironmentally-friendlyoptions- Timely payment of financialobligations – taxes- Providing direct and in-directemployment opportunities- Promoting and supportingentrepreneurship- Compliance with laws andregulations- Compliance with laws andregulations of Jordan- Sharing benefits and minimizingimpact through implementingsite-sharing agreements70

Appendix B – Scope of the ReportDefining Report ContentThe data in this report corresponds to the year 2010 ending31st of December, 2010. However, the report was written inMarch, 2011 and thus has reported on the launch of servicesup to March, 2011. We believe the information presented inthis report covers the range of economic, environmental, andsocial impacts relevant to Zain Jordan.Materiality - We have undertaken a systematic approachto identify material issues relevant to our economic,environmental and social impacts which are captured inour sustainability framework. We believe that we havecaptured all of our and our stakeholders’ material issues inour sustainability framework, and have covered those areasthroughout the report.Stakeholder Inclusiveness - We believe that we haveidentified all of our key stakeholders, and the sector specificstakeholders that we deal with as a telecommunicationscompany in Jordan. We have also outlined our stakeholders’expectations of us, the communications channels that wehave with them, and our response to their expectations.Sustainability Context – We considered the sustainabilitycontext of this report and our sustainability framework takinginto account local and regional realities, while consideringglobal and international trends. In some instances, we drawattention to the more specific sustainability context of Jordan.Ensuring QualityBalance - We believe that the information and data providedin this report represent a balanced account of the positives ofour performance, and the negatives that require improvementin the future.Comparability - Wherever applicable, we have providedKPIs and data from 2008 – 2010 (each year ending 31st Dec)to aid the year-on-year comparison of our performance.We have also attempted to adhere to the GRI G3 reportingguidelines to facilitate the comparison of our performance tosector peers and other companies engaging in sustainabilityreporting.Accuracy - We strived to ensure the most accurate collectionand presentation of our performance data in the report.We have clearly indicated within the report wherever anyassumptions or estimations have been made.71

Clarity - Every effort has been made to present theinformation in this report in a clear and concise manner thathighlights sustainability impacts and issues. Section coversheets, the table of contents, the GRI index, glossary andacronyms lists provide further direction for mapping outinformation.Reliability and Assurance - All the information in this reporthas been compiled, validated and signed off by the originalsource. A GRI level check has been conducted to confirmthe level of disclosure of the report. This report has not beenreviewed and assured by a third party.Reporting Boundaries and LimitationsBoundaries - This report represents the baseline report ofthe sustainability performance for Zain Jordan, an operatingcompany of Zain Group. To the best of our knowledge, thereport captures the economic, social and environmentalimpact of our operations in Jordan for the year 2010, anddoes not cover the operations of owned companies andsubsidiaries by Zain Jordan.Limitations – We recognize that as the first and baselinereport, this report has limitations, and we have set out anumber of commitments throughout the report to helpovercome those limitations for our 2011 report. Currentlimitations of the report include:- Data: All information included in the report is accurateand represents the data currently available at Zain Jordan.It is clearly indicated in the report wherever estimates oraverage numbers were used due to availability of compileddata only.- Outsourced Operations: This baseline report doesnot include all numbers corresponding to outsourcedoperations and services due to limited data fromconcerned parties. However, we included numberscorresponding to outsourced operations when available.We aim to report on these areas in our 2011 report.72

Appendix C – GRI Statement73

Appendix D – GRI IndexGRI Page(s) GRI Page(s) GRI Page(s)Standard Disclosure Standard Disclosure… Continued Labor… Continued1.1 3 4.12 7 LA7 Partial: 491.2 3 and 11 4.13 7, 8 and 9 LA10 Partial: 47 and 482.1 63 4.14 68, 69 and 70 LA11 472.2 5 4.15 68 LA12 472.3 63-65 4.16 68, 69 and 70 LA13 44 and 632.4 63 4.17 68, 69 and 70 LA14 462.5 5 Overall Management Approach Disclosure –Economic 6, 27-29 and 65Overall Management Approach Disclosure – HumanRights 44, 45, 48 and 562.6 63 EC1 29 and 65 HR2 562.7 5, 15 and 16 EC3 46 and 47 HR4 452.8 5, 12, 44 and 65 EC4 No government assistance received HR6 452.9 No significant changes EC5 Partial: 46 HR7 452.10 6 EC6 56 HR8 No training has been offered so far3.1 Calendar Year 2010 EC8 27-28, 34-36 and 39 HR9 None3.2 N/A – baseline report EC9 27, 28 and 29 Overall Management Approach Disclosure – Society34, 35, 39 and 663.3 Annual Overall Management Approach Disclosure –Environment 59-62 and 65SO1 Partial: 27, 28, 34-37, and 38-403.4 2 EN1 61 SO2 663.5 11 and 71 EN3 60 SO3 6674

3.6 72 EN4 59 SO4 663.7 72 EN6 None SO7 None3.8 72 EN7 59 and 60 SO8 653.9 72 EN8 60 and 61 Overall Management Approach Disclosure – ProductResponsibility 53, 54 and 553.10 N/A – no previous reports EN10 61 PR1 553.11 N/A – no previous reports EN13 40 PR2 None3.12 65 EN16 62 PR5 53 and 543.13 72 EN17 62 PR8 554.1 63 EN18 59 and 60 Telecommunications Sector-Specific Indicators4.2 63 EN23 62 IO5 514.3 63 EN26 38, 39 and 40 IO7 514.4 63 EN27 Partial: 38, 39 and 40 IO8 Partial: 514.5 63 EN28 None PA1 15, 16, 27, 28 and 294.6 63 and 65 Overall Management Approach Disclosure – Labor44-49PA2 Partial: 15, 16, 27 and 284.7 63 LA1 44 PA4 6, 15 and 504.8 5 and 11 LA2 46 PA5 15 and 164.9 3 LA3 46 and 47 PA10 554.10 63 LA4 48 TA3 Partial: 38, 39 and 404.11 3 LA6 49 TA5 2275

Appendix E - GlossaryPhraseGlobal Reporting Initiative(GRI)GRI G3 Reporting GuidelinesGSMA Mobile Alliance againstChild Sexual Abuse ContentI(TS)²Integrated MobileTelecommunications ProviderISO 14000ISO 27001Near Field Communications(NFC)DefinitionA network-based organization that pioneered the world’s most widely used sustainability reporting framework. GRI’s core goalsinclude the mainstreaming of disclosure on environmental, social and governance performance.A set of guidelines for sustainability reporting developed by the Global Reporting Initiative and based on the GRI’s SustainabilityFramework – the most widely used common framework for sustainability reporting.The Alliance>s aim is to ensure that individuals or organisations are prevented from profiting on child sexual abuse contentusing the mobile environment. This is achieved through a combination of technical measures, co-operation and informationsharing. The Alliance, made up of mobile operators from around the world, will create significant barriers to prevent the misuseand inappropriate exploitation of mobile networks and services.A company that provides integrated security solutions, security consulting services and security training & certification curriculumand is ISO 27001 certified, in the Middle East.Provides a package of products, services, and technologies that function more effectively as a whole than the sum of theindividual elements that comprise itThe ISO 14000 family addresses various aspects of environmental management. ISO 14001 deal with environmentalmanagement systems (EMS). ISO 14001:2004 provides the requirements for an EMS.The ISO 27000 standards provide good practice guidance on designing, implementing and auditing Information SecurityManagement Systems to protect the confidentiality, integrity and availability of the information.Near Field Communication (NFC) technology makes life easier and more convenient for consumers around the world by makingit simpler to make transactions, exchange digital content, and connect electronic devices with a touch.76

Regional Cable NetworkAlliance (RCN)SustainabilitySustainability ManagementSustainability ReportingUniversal Service ObligationAn alliance of regional telecommunication companies to construct and maintain a multi-terabit cable system extending from theUAE to Europe, passing through Saudi Arabia, Jordan, Syria and Turkey. The project aims to provide alternative and additionalroutes for internet services, and spans participation from partners in the Middle East and Europe.The definition is derived from the definition of Sustainable Development; development that meets the needs of the presentwithout comprising the ability of future generations to meet their own needs.The integrated management of economic, social, and environmental performance.The practice of publicly reporting to stakeholders on an ongoing basis, the organization’s economic, environmental and socialperformance including the issues most relevant to all of its key stakeholders.The Universal Service Obligation is an obligation which can be imposed upon the dominant telecom operator (usually theincumbent). This obligation includes a demand to meet any request for provision of a particular telecom service to anybodywithin the country. The purpose of having such an obligation is to ensure national coverage of a particular telecom service also inremote rural areas, where provision of telecom service may become less profitable.UNRWAThe United Nations Relief and Works Agency for Palestine Refugees in the Near East provides assistance, protection andadvocacy for some 4.8 million registered Palestine refugees in Jordan, Lebanon, Syria and the occupied Palestinian territory,pending a solution to their plight. UNRWA is funded almost entirely by voluntary contributions from UN member states.77

Appendix F - AcronmysAcronymDescription2GSecond Generation Wireless Telephone TechnologyICTInformation and Communication Technology3GThird Generation Wireless Telephone TechnologyISOInternational Organization for StandardizationADSLAsymmetric Digital Subscriber LineISPInternet Service ProviderCEOChief Executive OfficerITInformation TechnologyCSRCorporate Social ResponsibilityIVRInteractive Voice Recognition systemEDGEEnhanced Data rates for GSM EvolutionJODJordanian DinarEMFElectromagnetic fieldJRFJordan River FoundationEMSEnvironmental Management SystemLoYACLothan Youth Achievement CentreERP SystemEnterprise Resources Planning SystemMTCMobile Telecommunications Company GroupFCRFirst Call ResolutionNFCNear-Field CommunicationsFUNFuture University NetworkNGONon-Governmental OrganizationGDPGross Domestic ProductOPCOOperating CompanyGeSIGlobal e-Sustainability InitiativePCPersonal ComputerGHGGreenhouse GasesPDFPortable Document FormatGPRSGeneral Packet Radio ServicesSIM CardSubscriber Identity Module for a mobile phoneGRIGlobal Reporting InitiativeSMEsSmall-Medium EnterprisesHQHeadquartersSMSShort Message ServiceHRHuman ResourcesTRCTelecommunications Regulatory Commission – JordanHSPA+High-Speed Packet AccessUSOUniversal Service Obligation78ICNIRPInternational Commission on Non-Ionizing Radiation ProtectionWAPWireless Application Protocol

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