Airtel Africa21.pdfThe information contained in this presentation in relation to Airtel Africa plc ("Airtel Africa") and its subsidiaries has been prepared solely for use at this presentation

January 29, 2021

| Mobile Services I Mobile Money |

Airtel Africa plc

ORK

Airtel Africa

Report on the results for the third quarter and nine months ended December 31, 2020

The financial statements included in this quarterly report fairly presents in all material respects the financial position, results of operations and cash flow of the Group as of, and for the periods presented in this report.

Page 1 of 60

Supplemental Disclosures

Basis of preparation: - The results for the nine months ended 31

December 2020 are unaudited and in the opinion of management, include all adjustments necessary for the fair presentation of the results of the same period. The financial information has been prepared based on International Accounting Standard 34 (IAS 34) and apply the same accounting policies, presentation and methods of calculation as those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 March 2020 except to the extent required/ prescribed by IAS 34. This report should be read in conjunction with audited consolidated financial statements and related notes for the year ended 31 March 2020. The comparative information has been drawn based on Airtel Africa plc’s Audited Consolidated Financial Statements for the year ended 31 March 2020 prepared under International Financial Reporting Standard (IFRS).

Use of certain Alternative performance measures (APM):- This result

announcement contains certain information on the Group’s results of

operations and cash flows that have been derived from amounts

calculated in accordance with International Financial Reporting Standard

(IFRS), but are not in themselves IFRS measures. They should not be

viewed in isolation as alternatives to the equivalent IFRS measures and

should be read in conjunction with the equivalent IFRS measures.

Further, disclosures are also provided under “7.2 Use of Alternative performance measures (APM) Financial Information” on page 33

Safe Harbor: The IAS 34 financials considered for the purpose of this

report is unaudited.

Convenience translation: - We publish our financial statements in

United States Dollars. All references herein to “US dollars”, “USD”, “$”

and “US$” are to United States dollars. Translation of income statement

items have been made from local currencies of Africa operating units to

USD (unless otherwise indicated) using the respective monthly average

rates. Translation of statement of financial position items has been made

using the closing rate. All amounts translated as described above are

provided solely for the convenience of the reader, and no representation

is made that the local currencies or USD amounts referred to herein could

have been or could be converted into USD or local currencies

respectively, as the case may be, at any particular rate, the above rates

or at all. Any discrepancies in any table between totals and sums of the

amounts listed are due to rounding off.

Others: In this report, the terms “we”, “us”, “our”, “ Airtel - Africa”, or

“Africa”, unless otherwise specified or the context otherwise implies, refer

to the Airtel Africa plc and its subsidiaries and its associate, Bharti Airtel

International (Netherlands) B.V., Airtel (Seychelles) Limited, Airtel Congo

S.A, Airtel Gabon S.A., Airtel Madagascar S.A., Airtel Malawi plc, Airtel

Mobile Commerce B.V., Airtel Mobile Commerce Holdings B.V., Airtel

Mobile Commerce Kenya Limited, Airtel Mobile Commerce Limited

(Malawi), Airtel Mobile Commerce Madagascar S.A., Airtel Mobile

Commerce Rwanda Limited, Airtel Mobile Commerce (Seychelles)

Limited, Airtel Mobile Commerce Tanzania Limited, Airtel Mobile

Commerce Tchad SARL, Airtel Mobile Commerce Uganda Limited, Airtel

Mobile Commerce Zambia Limited , Airtel Money RDC S.A., Airtel Money

Niger S.A., Airtel Money S.A. (Gabon), Airtel Networks Kenya Limited,

Airtel Networks Limited, Airtel Networks Zambia plc, Airtel Rwanda

Limited, Airtel Tanzania plc, Airtel Tchad S.A., Airtel Uganda Limited,

Bharti Airtel Africa B.V., Bharti Airtel Chad Holdings B.V. , Bharti Airtel

Congo Holdings B.V., Bharti Airtel Developers Forum Limited, Bharti

Airtel Gabon Holdings B.V. , Bharti Airtel Kenya B.V., Bharti Airtel Kenya

Holdings B.V., Bharti Airtel Madagascar Holdings B.V. , Bharti Airtel

Malawi Holdings B.V. , Bharti Airtel Mali Holdings B.V., Bharti Airtel Niger

Holdings B.V. , Bharti Airtel Nigeria B.V. , Bharti Airtel Nigeria Holdings

II B.V. , Bharti Airtel RDC Holdings B.V. , Bharti Airtel Services B.V. ,

Bharti Airtel Tanzania B.V., Bharti Airtel Uganda Holdings B.V., Bharti

Airtel Zambia Holdings B.V., Celtel (Mauritius) Holdings Limited, Airtel

Congo RDC S.A., Celtel Niger S.A., Channel Sea Management

Company (Mauritius) Limited, Congo RDC Towers S.A., Gabon Towers

S.A. (under dissolution), Indian Ocean Telecom Limited, Madagascar

Towers S.A., Malawi Towers Limited, Mobile Commerce Congo S.A.,

Montana International, Partnership Investments SARL, Societe

Malgache de Telephone Cellulaire S.A., Tanzania Towers Limited (under

liquidation), Bharti Airtel Rwanda Holdings Limited , Airtel Money

Transfer Limited, Airtel Money Tanzania Limited , Airtel Mobile

Commerce Nigeria Limited, Airtel Mobile Commerce Nigeria B.V., Airtel

Mobile Commerce (Seychelles) B.V., Airtel Mobile Commerce Congo

B.V., Airtel Mobile Commerce Kenya B.V., Airtel Mobile Commerce

Madagascar B.V., Airtel Mobile Commerce Malawi B.V., Airtel Mobile

Commerce Rwanda B.V., Airtel Mobile Commerce Tchad B.V., Airtel

Mobile Commerce Uganda B.V., Airtel Mobile Commerce Zambia B.V.,

Airtel International LLP, Tigo Rwanda Limited, Airtel Money Trust,

Seychelles Cable Systems Company Limited (Associate), Airtel Mobile

Commerce Gabon B.V., Airtel Mobile Commerce Niger B.V., Airtel

Mobile Commerce DRC B.V., Airtel Money Kenya Limited and Airtel

Digital Services Holdings B.V. (incorporated w.e.f. 12th November, 2020).

Disclaimer: By reading this presentation you agree to be bound by the

following conditions.

The information contained in this presentation in relation to Airtel Africa

plc ("Airtel Africa") and its subsidiaries has been prepared solely for use

at this presentation. The presentation is not directed to, or intended for

distribution to or use by, any person or entity that is a citizen or resident

or located in any jurisdiction where such distribution, publication,

availability or use would be contrary to law or regulation or which would

require any registration or licensing within such jurisdiction.

References in this presentation to "Airtel Africa", "Group", "we", "us" and

"our" when denoting opinion refer to Airtel Africa plc and its subsidiaries.

Forward-looking statement

This document contains certain forward-looking statements including

"forward-looking" statements made within the meaning of Section 21E of

the United States Securities Exchange Act of 1934, regarding our

intentions, beliefs or current expectations concerning, amongst other

things, our results of operations, financial condition, liquidity, prospects,

growth, strategies and the economic and business circumstances

occurring from time to time in the countries and markets in which the

Group operates.

These statements are often, but not always, made through the use of

words or phrases such as "believe," "anticipate," "could," "may," "would,"

"should," "intend," "plan," "potential," "predict," "will," "expect," "estimate,"

"project," "positioned," "strategy," "outlook", "target" and similar

expressions.

It is believed that the expectations reflected in this document are

reasonable, but they may be affected by a wide range of variables that

could cause actual results to differ materially from those currently

anticipated.

All such forward-looking statements involve estimates and assumptions

that are subject to risks, uncertainties and other factors that could cause

actual future financial condition, performance and results to differ

materially from the plans, goals, expectations and results expressed in

the forward-looking statements and other financial and/or statistical data

within this communication.

Among the key factors that could cause actual results to differ materially

from those projected in the forward-looking statements are uncertainties

related to the following: the impact of competition from illicit trade; the

impact of adverse domestic or international legislation and regulation;

changes in domestic or international tax laws and rates; adverse litigation

and dispute outcomes and the effect of such outcomes on Airtel Africa’s

Page 2 of 60

financial condition; changes or differences in domestic or international

economic or political conditions; the ability to obtain price increases and

the impact of price increases on consumer affordability thresholds;

adverse decisions by domestic or international regulatory bodies; the

impact of market size reduction and consumer down-trading;

translational and transactional foreign exchange rate exposure; the

impact of serious injury, illness or death in the workplace; the ability to

maintain credit ratings; the ability to develop, produce or market new

alternative products and to do so profitably; the ability to effectively

implement strategic initiatives and actions taken to increase sales

growth; the ability to enhance cash generation and pay dividends and

changes in the market position, businesses, financial condition, results

of operations or prospects of Airtel Africa.

Past performance is no guide to future performance and persons needing

advice should consult an independent financial adviser. The forward-

looking statements contained in this document reflect the knowledge and

information available to Airtel Africa at the date of preparation of this

document and Airtel Africa undertakes no obligation to update or revise

these forward-looking statements, whether as a result of new

information, future events or otherwise. Readers are cautioned not to

place undue reliance on such forward-looking statements.

No statement in this communication is intended to be, nor should be

construed as, a profit forecast or a profit estimate and no statement in

this communication should be interpreted to mean that earnings per

share of Airtel Africa plc for the current or any future financial periods

would necessarily match, exceed or be lower than the historical

published earnings per share of Airtel Africa plc.

Financial data included in this document are presented in US$ rounded

to the nearest million. Therefore, discrepancies in the tables between

totals and the sums of the amounts listed may occur due to such

rounding. The percentages included in the tables throughout the

document are based on numbers calculated to the nearest $1,000 and

therefore minor rounding differences may results in the tables.

No profit or earnings per share forecasts

No statement in this communication is intended to be, nor should be

construed as, a profit forecast or a profit estimate and no statement in

this communication should be interpreted to mean that earnings per

share of Airtel Africa for the current or any future financial periods would

necessarily match, exceed or be lower than the historical published

earnings per share of Airtel Africa.

Audience

The material in this presentation is provided for the purpose of giving information about Airtel Africa and its subsidiaries to investors only and is not intended for general consumers. Airtel Africa, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

Page 3 of 60

TABLE OF CONTENTS

Section 1 Performance at a glance 4

Section 2 Financial Highlights

2.1 Consolidated - Summary of Consolidated Financial Statements 5

2.2 Consolidated - Summary of Statement of Financial Position 6

Section 3 Segment Wise – Summary of Financial Statements

3.1 Summarized Statement of Operations 7

3.2 Segment Wise Contribution 10

Section 4 Product wise – Summary of Financial Statements

4.1 Mobile Services – Summarized Statement of Operations 11

4.2 Mobile Services – Segment Wise Contribution 15

4.3 Mobile Money – Summarized Statement of Operations 16

4.4 Product Wise Contribution 17

Section 5 Operating Highlights 18

Section 6 Management Discussion and Analysis

6.1 Reporting Methodology 22

6.2 Key Company Developments 22

6.3 Results of Operations 24

Section 7 Detailed Financial and Related Information 29

Section 8 Net Debt and Cost Schedules 36

Section 9 Trends and Ratio Analysis 38

Section 10 Key Accounting Policies 51

Section 11 Glossary 56

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SECTION 1

PERFORMANCE AT A GLANCE

Financial Year Ended Quarter Ended

2020 2019 2018 Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Operating Highlights

Total Customer Base 000’s 110,604 98,851 89,262 118,903 116,371 111,461 110,604 107,140

Total Minutes on Netw ork Mn Min 250,080 207,334 159,549 85,651 80,375 71,891 68,870 65,086

Data MBs Mn MBs 710,510 392,631 237,563 320,568 293,919 279,541 219,015 189,798

Mobile Money Transaction Value US$ Mn 30,224 23,582 18,888 12,959 11,637 9,038 8,031 8,001

Netw ork Tow ers Nos 22,909 21,059 19,731 24,693 24,246 23,471 22,909 22,253

Total Employees Nos 3,363 3,075 3,273 3,498 3,453 3,432 3,363 3,286

No. of countries of operation Nos 14 14 14 14 14 14 14 14

Consolidated Financials (US$ Mn)

Ongoing Operations

(Reported Currency)

Revenue US$ Mn 3,422 3,077 2,910 1,034 965 851 899 883

EBITDA US$ Mn 1,515 1,332 1,139 485 437 375 397 399

EBIT US$ Mn 905 796 600 308 269 210 244 245

Cash profit from operations before

Derivative and Exchange FluctuationsUS$ Mn 1,210 1,001 786 402 357 295 325 326

Profit before tax (before exceptional items) US$ Mn 533 441 158 180 177 111 97 167

Net Income (after NCI) US$ Mn 370 412 (138) 95 70 42 65 90

Capex US$ Mn 642 630 411 188 149 66 246 150

Operating Free Cash Flow (EBITDA - Capex) US$ Mn 873 702 728 298 287 309 151 249

Net Debt US$ Mn 3,247 4,005 7,755 3,518 3,459 3,425 3,247 3,233

Shareholder's Equity US$ Mn 3,388 2,626 (1,085) 3,362 3,407 3,304 3,388 3,529

Non-controlling interests ('NCI') US$ Mn (107) (196) (232) (69) (89) (93) (107) (168)

Total Equity US$ Mn 3,281 2,429 (1,317) 3,293 3,318 3,211 3,281 3,361

Total Capital Employed US$ Mn 6,528 6,435 6,438 6,811 6,777 6,636 6,528 6,595

Key Ratios

EBITDA Margin % 44.3% 43.3% 39.1% 46.9% 45.3% 44.1% 44.1% 45.2%

EBIT Margin % 26.5% 25.9% 20.6% 29.8% 27.8% 24.7% 27.2% 27.7%

Net Profit Margin % 10.8% 13.4% (4.7%) 9.1% 7.3% 4.9% 7.2% 10.1%

Net Debt to EBITDA (LTM) Times 2.1 3.0 6.8 2.1 2.2 2.2 2.1 2.2

Net Debt to EBITDA (Annualised) Times 2.1 3.0 6.8 1.8 2.0 2.3 2.0 2.0

Interest Coverage ratio Times 5.1 3.9 3.5 6.2 5.8 5.1 5.5 5.4

Return on Equity (Pre-Tax) % 18.3% 15.3% 0.0% 17.6% 17.0% 16.9% 18.3% 18.5%

Return on Equity (Post-Tax) % 10.9% 15.7% 0.0% 8.1% 7.8% 8.7% 10.9% 11.0%

Return on Capital employed % 14.0% 12.4% 9.2% 15.5% 14.6% 13.9% 13.7% 13.2%

IFRSParticulars Unit IFRS

Mobile Money Transaction Value is in Constant Currency

Page 5 of 60

SECTION 2

FINANCIAL HIGHLIGHTS

The financial information contained in this report is drawn from Airtel Africa plc’s interim unaudited condensed consolidated financial statements

prepared under IAS 34 for the nine months ended 31 December 2020 and from Airtel Africa plc’s Audited Consolidated Financial Statements

for the year ended 31 March 2020 prepared under International Financial Reporting Standard (IFRS) for the comparative periods presented.

2.1 Summary of Consolidated Financial Statements

2.1.1 Consolidated Summarized Statement of Operations – (in Reported Currency)

Amount in US$ Mn, except ratios

Quarter Ended Nine Months Ended

Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 1,034 883 17% 2,850 2,522 13%

EBITDA 485 399 22% 1,297 1,118 16%

EBITDA / Revenue 46.9% 45.2% 1.7 pp 45.5% 44.3% 1.2 pp

EBIT 308 245 26% 787 661 19%

Finance cost (net) 128 76 67% 318 225 41%

Share of results of Associate 0 0 (84%) (0) (0) (428%)

Profit before tax (before exceptional items) 180 167 8% 468 436 7%

Income tax expense 89 95 (6%) 235 210 12%

Profit after tax (before exceptional items) 91 73 25% 233 227 3%

Non Controlling Interest (before exceptional items) 17 10 70% 46 23 100%

Net Income (before exceptional items) 74 63 18% 187 203 (8%)

Exceptional Items (net of tax) (25) (30) 16% (28) (104) 73%

Profit after tax (after exceptional items) 116 103 13% 261 331 (21%)

Non Controlling Interest 21 13 70% 55 26 113%

Net Income (after NCI) 95 90 5% 206 305 (32%)

Capex 188 150 25% 403 396 2%

Operating Free Cash Flow (EBITDA - Capex) 298 249 20% 894 722 24%

Total Capital Employed 6,811 6,595 3% 6,811 6,595 3%

Particulars

Page 6 of 60

2.1.2 Consolidated Summarized Statement of Operations – (in Constant Currency)



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 1,038 845 23% 2,857 2,408 19%

EBITDA 487 380 28% 1,300 1,061 23%


EBIT 309 231 34% 789 622 27%

Capex 188 150 25% 403 396 2%

Operating Free Cash Flow (EBITDA - Capex) 299 230 30% 897 665 35%

Particulars

Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

2.2 Consolidated - Summary of Statement of Financial Position (in Reported Currency)

Amount in US$ Mn

As at As at

Dec 31, 2020 Mar 31, 2020

Assets

Non-current assets 7,932 7,654

Current assets 1,965 1,671

Total assets 9,897 9,325

Liabilities

Current liabilities 3,494 2,488

Non-current liabilities 3,110 3,556

Total liabilities 6,604 6,044

Net current liability (1,529) (817)

Net Assets 3,293 3,281

Equity

Equity attributable to ow ners of the company 3,362 3,388

Non-controlling interests ('NCI') (69) (107)

Total equity 3,293 3,281

Total Equity and liabilities 9,897 9,325

Particulars

Page 7 of 60

SECTION 3

SEGMENT WISE – SUMMARY OF FINANCIAL STATEMENTS Segmental reporting includes all businesses of that geography.

3.1 Summarized Statement of Operations

3.1.1 Nigeria In Reported Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 412 355 16% 1,130 995 13%

EBITDA 221 194 14% 608 535 14%

EBITDA / Revenue 53.8% 54.7% -0.9 pp 53.8% 53.7% 0.1 pp

EBIT 159 146 9% 431 398 8%

Capex 81 64 26% 178 180 (1%)

Operating Free Cash Flow

(EBITDA - Capex)140 130 8% 430 355 21%

Particulars

In Constant Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 414 334 24% 1,136 934 22%

EBITDA 223 183 22% 611 502 22%


EBIT 160 138 17% 433 373 16%

Capex 81 64 26% 178 180 (1%)


(EBITDA - Capex)142 119 20% 432 322 34%

Particulars


Page 8 of 60

3.1.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

In Reported Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 364 313 16% 1,023 891 15%

EBITDA 170 127 34% 463 360 29%


EBIT 113 70 61% 297 186 60%

Capex 87 61 43% 168 121 39%


(EBITDA - Capex)83 66 26% 295 239 23%

Particulars




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 374 297 26% 1,038 842 23%

EBITDA 174 120 46% 467 337 39%


EBIT 115 65 76% 299 171 75%

Capex 87 61 43% 168 121 39%


(EBITDA - Capex)87 59 48% 300 216 39%

Particulars


Page 9 of 60

3.1.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 259 218 19% 704 644 9%

EBITDA 108 82 32% 254 222 15%


EBIT 51 32 58% 98 79 24%

Capex 20 24 (19%) 56 93 (40%)


(EBITDA - Capex)88 57 54% 198 129 54.1%

Particulars




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 249 217 15% 690 639 8%

EBITDA 104 81 28% 249 221 13%


EBIT 49 32 54% 96 79 22%

Capex 20 24 (19%) 56 93 (40%)


(EBITDA - Capex)85 57 48% 194 128 52%

Particulars


Page 10 of 60

3.2 Segment Wise Contribution (in Constant Currency)

Quarter Ended:


Quarter Ended Dec-20

Revenue % of Total EBITDA % of Total Capex % of Total

Nigeria 414 40% 223 46% 81 43%

East Africa 374 36% 174 36% 87 46%

Francophone Africa 249 24% 104 21% 20 11%

Total before Elimnation/Others 1,038 100% 501 103% 187 100%

Eliminations / Others 0 0% (14) (3%) 0 0%

Total 1,038 100% 487 100% 188 100%

Region


Nine Months Ended:


Nine Months Ended Dec-20


Nigeria 1,136 40% 611 47% 178 44%

East Africa 1,038 36% 467 36% 168 42%


Total before Elimnation/Others 2,864 100% 1,328 102% 402 100%

Eliminations / Others (7) (0%) (28) (2%) 1 0%

Total 2,857 100% 1,300 100% 403 100%

Region


Page 11 of 60

SECTION 4

PRODUCT WISE – SUMMARY OF FINANCIAL STATEMENTS

4.1 Mobile Services- Summarized Statement of Operations

4.1.1 Consolidated Summarized Statement of Operations In Reported Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 948 826 15% 2,637 2,366 11%

EBITDA 446 363 23% 1,183 1,006 18%


EBIT 271 210 29% 691 556 24%

Capex 184 145 27% 395 386 2%


(EBITDA - Capex)262 217 21% 788 620 27%

Particulars




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 951 791 20% 2,643 2,259 17%

EBITDA 447 345 30% 1,186 954 24%


EBIT 272 198 38% 693 522 33%

Capex 184 145 27% 395 386 2%


(EBITDA - Capex)263 200 32% 791 567 39%

Particulars


Page 12 of 60

4.1.2 Nigeria In Reported Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 412 354 16% 1,129 991 14%

EBITDA 222 194 14% 608 531 14%


EBIT 159 146 9% 431 394 9%

Capex 81 64 26% 178 180 (1%)


(EBITDA - Capex)141 130 8% 430 352 22%

Particulars




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 414 333 24% 1,135 930 22%

EBITDA 223 182 22% 611 499 23%


EBIT 161 137 17% 433 370 17%

Capex 81 64 26% 178 180 (1%)


(EBITDA - Capex)142 118 20% 433 319 36%

Particulars


Page 13 of 60

4.1.3 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda) In Reported Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 301 272 11% 863 779 11%

EBITDA 132 101 31% 363 291 25%


EBIT 76 45 68% 201 120 68%

Capex 84 57 47% 162 115 41%


(EBITDA - Capex)48 44 10% 201 176 14%

Particulars




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 310 258 20% 876 736 19%

EBITDA 135 95 42% 367 272 35%


EBIT 78 42 85% 203 110 85%

Capex 84 57 47% 162 115 41%


(EBITDA - Capex)51 38 35% 205 157 31%

Particulars


Page 14 of 60

4.1.4 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles) In Reported Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 238 202 18% 652 600 9%

EBITDA 92 68 36% 214 184 16.0%


EBIT 35 18 91% 58 42 39%

Capex 19 24 (21%) 55 92 (41%)


(EBITDA - Capex)73 44 67% 159 92 72%

Particulars




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 229 201 14% 639 596 7%

EBITDA 89 68 32% 210 183 14%


EBIT 34 18 85% 57 42 36%

Capex 19 24 (21%) 55 92 (41%)


(EBITDA - Capex)70 43 61% 155 92 69%

Particulars


Page 15 of 60

4.2 Mobile Services - Segment Wise Contribution (in Constant Currency) Quarter Ended:




Nigeria 414 44% 223 50% 81 44%

East Africa 310 33% 135 30% 84 46%


Total before Elimnation/Others 953 100% 447 100% 184 100%

Eliminations / Others (3) (0%) 0 0% 0 0%

Total 951 100% 447 100% 184 100%

Region


Nine Months Ended:




Nigeria 1,135 43% 611 52% 178 45%

East Africa 876 33% 367 31% 162 41%




Total 2,643 100% 1,186 100% 395 100%

Region


Page 16 of 60

4.3 Mobile Money - Summarized Statement of Operations

4.3.1 Consolidated Summarized Statement of Operations In Reported Currency



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 110 82 34% 291 228 28%

EBITDA 54 40 33% 142 110 28%


EBIT 52 39 34% 135 106 27%

Capex 3 4 (19%) 7 7 (1%)


(EBITDA - Capex)51 36 39% 135 103 30%

Particulars




Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Revenue 111 79 41% 292 217 34%

EBITDA 54 39 40% 142 106 34%

EBITDA / Revenue 48.6% 49.2% -0.5 pp 48.6% 48.6% -0.1 pp

EBIT 52 37 40% 135 102 33%

Capex 3 4 (19%) 7 7 (1%)


(EBITDA - Capex)51 35 45% 135 99 37%

Particulars


Page 17 of 60

4.4 Product Wise Contribution (in Constant Currency)

Quarter Ended:




Mobile Services 951 92% 447 92% 184 98%

Mobile Money 111 11% 54 11% 3 2%

Total before Elimnation/Others 1,062 102% 501 103% 187 100%


Total 1,038 100% 487 100% 188 100%

Products


Nine Months Ended:




Mobile Services 2,643 93% 1,186 91% 395 98%

Mobile Money 292 10% 142 11% 7 2%



Total 2,857 100% 1,300 100% 403 100%

Products


Page 18 of 60

SECTION 5

OPERATING HIGHLIGHTS

The financial figures used for computing ARPU & Revenue per Site are based on Constant Currency. 5.1 Operational Performance (Quarter Ended)

5.1.1 Consolidated Operational Performance

Parameters Unit Dec-20 Sep-20Q-on-Q

ChangeDec-19

Y-on-Y

Change

Customer Base 000's 118,903 116,371 2.2% 107,140 11.0%

Net Additions 000's 2,532 4,910 (48.4%) 3,258 (22.3%)

Monthly Churn % 5.0% 5.3% -0.3 pp 5.2% -0.2 pp

Average Revenue Per User (ARPU) US$ 2.9 2.8 3.7% 2.7 9.3%

Voice

Voice Revenue US$ Mn 566 517 9.4% 484 16.9%

Minutes on the netw ork Mn 85,651 80,375 6.6% 65,086 31.6%

Voice Average Revenue Per User (ARPU) US$ 1.6 1.5 5.3% 1.5 4.0%

Voice Usage per customer min 241 235 2.5% 206 17.1%

Data

Data Revenue US$ Mn 295 283 4.3% 232 27.0%

Data Customer Base 000's 40,624 39,596 2.6% 32,887 23.5%

As % of Customer Base % 34.2% 34.0% 0.1 pp 30.7% 3.5 pp

Total MBs on the netw ork Mn MBs 320,568 293,919 9.1% 189,798 68.9%

Data Average Revenue Per User (ARPU) US$ 2.4 2.5 (1.5%) 2.4 1.5%

Data Usage per customer MBs 2,653 2,576 3.0% 1,967 34.9%

M obile M oney

Transaction Value US$ Mn 12,959 11,637 11.4% 8,001 62.0%

Transaction Value per Sub US$ 208 199 4.6% 166 25.9%

Mobile Money Revenue US$ Mn 111 100 11.4% 79 41.1%

Active Customers 000's 21,460 20,120 6.7% 16,634 29.0%

Mobile Money ARPU US$ 1.8 1.7 4.7% 1.6 9.7%

Network and Coverage

Netw ork tow ers Nos 24,693 24,246 447 22,253 2,440

Owned Towers Nos 4,530 4,561 (31) 4,454 76

Leased Towers Nos 20,163 19,685 478 17,799 2,364

Of w hich Mobile Broadband tow ers Nos 22,998 22,250 748 19,133 3,865

Total Mobile Broadband Base stations Nos 72,616 63,705 8,911 43,174 29,442

Data Capacity TB/day 11,448 10,253 11.7% 6,780 68.8%

Revenue Per Site Per Month US$ 14,108 13,408 5.2% 12,718 10.9%

Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.

Page 19 of 60

5.2 Nigeria Operational Performance


ChangeDec-19

Y-on-Y

Change

Customer Base 000's 44,449 44,054 0.9% 39,855 11.5%

Net Additions 000's 395 1,541 (74.4%) 343 15.3%

Monthly Churn % 5.4% 6.1% -0.8 pp 6.8% -1.4 pp


Voice





Data


Data Customer Base 000's 18,831 19,003 (0.9%) 15,234 23.6%

As % of Customer Base % 42.4% 43.1% -0.8 pp 38.2% 4.1 pp


Data Average Revenue Per User (ARPU) US$ 2.5 2.5 (2.5%) 2.4 3.3%



Netw ork tow ers Nos 10,588 10,347 241 8,924 1,664

Owned Towers Nos 203 199 4 177 26

Leased Towers Nos 10,385 10,148 237 8,747 1,638

Of which Mobile Broadband towers Nos 10,376 10,002 374 8,093 2,283





Page 20 of 60

5.3 East Africa Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)


ChangeDec-19

Y-on-Y

Change

Customer Base 000's 52,612 51,265 2.6% 47,366 11.1%

Net Additions 000's 1,348 2,508 (46.3%) 2,359 (42.9%)

Monthly Churn % 4.6% 4.5% 0.1 pp 3.8% 0.7 pp


Voice




Voice Usage per customer min 340 342 (0.4%) 284 19.7%

Data





Data Average Revenue Per User (ARPU) US$ 2.0 2.0 (2.5%) 2.1 (3.5%)



Netw ork tow ers Nos 9,365 9,193 172 8,838 527

Owned Towers Nos 2,492 2,544 (52) 2,475 17

Leased Towers Nos 6,873 6,649 224 6,363 510

Of which Mobile Broadband towers Nos 8,260 8,039 221 7,542 718





Page 21 of 60

5.4 Francophone Africa Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)


ChangeDec-19

Y-on-Y

Change

Customer Base 000's 21,842 21,052 3.8% 19,919 9.7%

Net Additions 000's 790 862 (8.4%) 557 41.8%

Monthly Churn % 5.5% 5.5% 0.0 pp 5.4% 0.1 pp


Voice



Voice Average Revenue Per User (ARPU) US$ 2.2 2.1 2.7% 2.3 (3.2%)


Data





Data Average Revenue Per User (ARPU) US$ 3.6 3.5 1.2% 3.5 2.4%



Netw ork tow ers Nos 4,740 4,706 34 4,491 249

Owned Towers Nos 1,835 1,818 17 1,802 33

Leased Towers Nos 2,905 2,888 17 2,689 216

Of which Mobile Broadband towers Nos 4,362 4,209 153 3,498 864

Total Mobile Broadband Base stations Nos 11,318 11,047 271 8,969 2,349




.

Page 22 of 60

SECTION 6

MANAGEMENT DISCUSSION AND ANALYSIS

6.1 Reporting Methodology

• The results for the nine months ended 31 December 2020

are unaudited and in the opinion of management, include all

adjustments necessary for the fair presentation of the results

of the same period. The financial information has been

prepared based on International Accounting Standard 34

(IAS 34) and apply the same accounting policies,

presentation and methods of calculation as those followed in

the preparation of the Group’s annual consolidated financial

statements for the year ended 31 March 2020 except to the

extent required/ prescribed by IAS 34. This report should be

read in conjunction with audited consolidated financial

statements and related notes for the year ended 31 March

2020. The comparative information has been drawn based

on Airtel Africa plc’s Audited Consolidated Financial

Statements for the year ended 31 March 2020 prepared

under International Financial Reporting Standard (IFRS).

• The information, apart from the extract of the Financial

Statements in Section 7, is on underlying basis and

exceptional items are shown separately. This enables an

organic comparison of results with past periods.

6.2 Key company developments

Strategic asset monetisation and investment opportunities

We are continuing to look at strategic asset monetisation and

investment opportunities for the Group. We are actively pursuing

the sale of the remaining owned tower sites that sit across several

of our operating countries and the Group is in discussions with

various potential investors in relation to possible minority

investments into Airtel Money. Discussions are ongoing between

the parties and there can be no certainty that a transaction will be

concluded or as to the final terms of any transaction.

Licence renewal in Nigeria

In January 2021, Airtel Networks Limited (“Airtel Nigeria”),

announced that its application for renewal of the spectrum licences

in the 900MHz and 1800MHz bands had been approved by the

Nigerian Communications Commission (“NCC”). Pursuant to

Section 43 of the Nigerian Communications Act, 2003 and

Condition 20 of the Unified Access Service Licence (UASL), Airtel

Nigeria had applied to renew its spectrum licences in the 900MHz

and 1800MHz bands which would otherwise expire on 30

November 2021.

Following the application, the NCC offered Airtel Nigeria the

opportunity to renew its spectrum licences in the 900MHz &

1800MHz bands for a period of ten years, with effect from 1

December 2021 until 30 November 2031, which Airtel Nigeria

accepted.

Under the terms of the spectrum licences Airtel Nigeria paid

71.611 billion naira ($189 million) in respect of the licence renewal

fees.

New Licence in Uganda

In December, Airtel Uganda Limited was issued with a National

Telecom Operator Licence following a period of negotiation and

transition to a new Licensing Regime.

The new licence is with effect from 1 July 2020 and is for a period

of 20 years. Airtel Uganda will retain all of its current spectrum

subject to the law and terms of assignment. The scope of services

will be the provision of basic telecommunication services,

infrastructure services, and value-added telecommunication

services. In addition, Airtel Uganda commits to achieving coverage

of 90% of the geographical boundary of Uganda within five years

of the effective date of the licence, with a minimum obligation of

providing voice and data services.

Under the terms of the licence Airtel Uganda has paid $74.6 Mn

which includes VAT of $11.4 Mn.

New SIM registration rules in Nigeria

Following a directive issued by the Nigerian Communications

Commission on 15 December 2020 to all Nigerian telecom

operators, Airtel Nigeria is working with the government to ensure

that all our subscribers provide their valid National Identification

Numbers (NINs) to update SIM registration records.

New customer acquisitions are currently barred until significant

progress is made on linking the current active base with verified

NINs. The deadline for customers to register their NIN with their

SIM has moved from a provisional date of 30 December 2020 in

the initial directive in order to accommodate the logistical

challenges involved. The latest deadline for registration is currently

9 February 2021. We have made significant progress on capturing

existing NINs and building the database in collaboration with

National Identity Management Commission (NIMC). To date, out

of Airtel Nigeria’s 44.4 million customers, we have collated NIN

information for 21 million mobile customers (47%). To complete

the registration process we still need to verify the NIN information

we have received from our subscribers with the NIMC. This

requires improved connectivity with the NIMC database which is

currently being developed for all the Nigerian mobile operators.

We have also opened enrolment centres in collaboration with the

NIMC to facilitate customers obtaining NINs for roughly half of the

population that do not currently have a NIN. We continue to work

closely with the government to ensure full compliance.

We anticipate that this will affect customer growth in Nigeria in

Q4’21, but the potential overall impact remains uncertain.

Page 23 of 60

Dividend

In October 2020, the Board approved a new progressive dividend

policy during the period as a result of the continued strong

business performance, significant opportunities to invest in future

growth and the aim to continue to reduce leverage. The newly

adopted dividend policy aims to grow the dividend annually by a

mid to high single digit percentage from a base of 4 cents per share

for FY 2021, until reported leverage (calculated as net debt to

EBITDA) falls below 2.0x. At the point when reported leverage

(calculated as net debt to EBITDA) is below 2.0x, the Board will

reassess the dividend policy in light of the growth outlook for the

Group. On 28 October 2020, in line with the dividend policy, the

Board declared an interim dividend of 1.5 cents per ordinary share

which was paid on 11 December 2020.

Directorate change

On 27 October 2020 we announced the appointment of Kelly

Bayer Rosmarin as a non-executive director with immediate effect.

Ms. Bayer Rosmarin's appointment was by nomination of the

controlling shareholder pursuant to the terms of the relationship

agreement dated 17 June 2019 between the Company, Bharti

Airtel, Airtel Africa Mauritius Limited, the majority shareholder and

an indirect subsidiary of Bharti Airtel, and Bharti Telecom. Ms.

Bayer Rosmarin replaced Arthur Lang who stepped down as a

non-executive director on the same date.

Ms. Bayer Rosmarin is currently CEO of Singtel Optus and

Consumer Australia. She was previously with Commonwealth

Bank of Australia, where she held several senior positions and

varied portfolios, before being appointed as Group Executive of

Institutional Banking and Markets. Ms Bayer Rosmarin is

recognised for leveraging technology, data and analytics to

develop leading customer services and experience. Ms. Bayer

Rosmarin was named in the Top 10 Businesswomen in Australia

and the Top 25 Women in Asia Pacific Finance and holds a variety

of Board and advisory responsibilities.

Ms. Bayer Rosmarin has, since February 2019, served as an

Independent non-executive director on the Board of OpenPay,

listed on the Australian Securities Exchange, and will continue in

that role. Openpay is a payments technology company based in

Australia.

Additional spectrum

In June 2020, Airtel Malawi plc was allocated 10 MHz of spectrum

in the 2600 band. In October, additional spectrum of 10 MHz in the

2600 band and 5 MHz in the 1800 band was allocated to Airtel

Uganda. In December, Airtel Chad received 5 MHz of spectrum in

the 900 band and Airtel Zambia received 10 MHz in the 800 band.

Abandonment of merger of Airtel Networks Kenya Limited

with Telkom Kenya Limited

In August 2020, Airtel Africa plc announced that its subsidiary

Airtel Networks Kenya Limited ("Airtel Kenya") and Telkom Kenya

Limited ("Telkom") had decided to no longer pursue completion of

the M&A transaction. The transaction was announced in February

2019 and was subject to the satisfaction of various conditions

precedent, including regulatory approvals. Despite Airtel Africa plc

and Telkom’s respective endeavours to reach a successful

closure, the transaction had gone through a very lengthy process

which led the parties to reconsider their stance.

Partnership with UNICEF

In May 2020, Airtel Africa announced a partnership with UNICEF

aimed at providing children with access to remote learning and

enabling access to cash assistance for their families via mobile

cash transfers. Under this partnership, UNICEF and Airtel Africa

will use mobile technology to benefit an estimated 133 million

school age children currently affected by school closures in 13

countries across sub-Saharan Africa during the Covid-19

pandemic.

Mobile money

(a) Partnership with remittance leading institutions

Airtel Africa entered into several strategic partnerships with

MoneyGram, Mukuru and WorldRemit. Through these

partnerships, more than 20 million Airtel Money customers in 12

countries can transfer and receive funds across the globe directly

from and into their mobile money wallets on their phone. Mobile

money service alliances with these leading international money

transfer or remittance service providers will extensively enhance

customer access to the digital world.

(b) Partnership with Standard Chartered Bank

In August 2020, Airtel Africa announced a strategic partnership

with Standard Chartered Bank, a leading international banking

group, to drive financial inclusion across key markets in Africa by

providing customers with increased access to mobile financial

services. Standard Chartered and Airtel Africa work together to co-

create new, innovative products aimed at enhancing the

accessibility of financial services and ultimately, better serve

people across Africa. In line with this, Airtel Money's customers will

be able to make real-time online deposits and withdrawals from

Standard Chartered bank accounts, receive international money

transfers directly to their wallets, and access savings products

amongst other services.

(c) Partnership with Mastercard, Samsung and Asante

In September 2020, Airtel Africa announced an expansion of its

partnership with Mastercard by launching a Pay-on-Demand

payments platform to drive the digital economy across Africa. This

Pay-on-Demand platform enables safe, secure, and convenient

consumer financing via Samsung devices with an embedded Knox

security platform, through Airtel Africa’s network. The partnership

facilitates usage-based payments and builds creditworthiness.

These partnerships align with the Group’s strategy of expanding

the range and depth of Airtel Money offerings to drive customer

growth and penetration.

Page 24 of 60

6.3 Results of Operations

The financial results presented in this section are compiled based on the consolidated financial statements prepared in accordance with International Financial

Reporting Standards (IFRS) and the underlying information.

Key Highlights – For Nine-month period ended on December 31, 2020

• Reported revenue increased by 13.8% to $2,870 Mn with Q3'21 reported revenue growth of 19.5%.

• Constant currency underlying revenue growth was 18.6%, with Q3'21 growth of 22.8%. Growth for the nine months was recorded across all regions: Nigeria up 21.6%, East Africa up 23.4% and Francophone Africa up 8.0%; and across all services, with voice revenue up 10.4%, data up 31.1% and mobile money up 34.2%.

• EBITDA for the nine months was $1,297 Mn, up 16% in reported currency while constant currency EBITDA growth was 22.5%.

• EBITDA margin for the nine months was 45.5%, up by 1.2pp (up 1.4pp in constant currency). Q3'21 EBITDA margin was 46.9%.

• Operating profit increased by 21.8% to $800 Mn in reported currency, and by 29.9% in constant currency.

• Free cash flow was $466 Mn, up 20% compared to the same period last year.

• Basic EPS was 5.5 cents, down 36.5%, largely due to prior year exceptional items and a one-off derivative gain. Excluding these, basic EPS rose by 19.8%. EPS before exceptional items was 5.0 cents.

• Customer base up 11.0% to 118.9 million, with increased penetration across mobile data (customer base up 23.5%) and mobile money services (customer base up 29.0%). 2.5 million customers were added in Q3'21.

Key Highlights – For the Quarter ended December 31, 2020

• Revenue in constant currency increased by 22.8% to $ 1,038 Mn.

• Revenue growth of 22.8% in constant currency was driven by growth across all regions: Nigeria up 24.1%, East Africa up 26.0% and

Francophone Africa up 15.0%.

• Growth was broad based across all services with revenue in Voice, Data and Mobile Money up by 16.9%, 27.0% and 41.1% respectively.

• EBITDA in constant currency was $ 487 Mn, up 28.3%.

• EBITDA margin in constant currency was 46.9%, an increase of 2.0pp.

Results for the Nine-month period ended on December 31, 2020

6.4.1 Airtel Africa Consolidated

These results demonstrate that Airtel Africa is a highly resilient

business with an effective strategy, delivering strong growth in its

customer base and revenue, and expansion of its EBITDA margin.

This performance continues to be underpinned by a strong focus

on the execution of our strategy which is capturing growth

opportunities in a fast-growing region that is vastly

underpenetrated in terms of both mobile and banking services. As

a result, we were able to deliver double-digit constant currency

mobile services revenue growth for the nine-months of 17.0%

(11.5% on a reported basis), with 34.2% mobile money revenue

growth (27.8% on a reported basis).

Basic EPS was 5.5 cents, down by 36.5%, as a result of higher

other finance costs due to a $47 Mn derivative gain in the prior

period, an increase in tax charges due to higher operating profit

and withholding tax on dividends, higher non-controlling interest

and the recognition in the prior period of one-off gain of $72 Mn

related to the expired indemnity to certain pre-IPO investors which

was accounted for as an exceptional item. Excluding exceptional

items and the one-off $47 Mn derivative gain, basic EPS would be

up 19.8%. Non-controlling interest more than doubled largely as a

result of higher profit in OPCOs with minority shareholdings

including Airtel Nigeria, Airtel Tanzania, Airtel Niger and Airtel

Malawi.

Reported Group revenue increased by 13.8%, largely driven by

18.6% of underlying constant currency growth partially offset by

currency devaluations, mainly in the Nigerian naira (7.9%),

Zambian kwacha (46.6%) and Kenyan shilling (9%), partially offset

by appreciation in the Central African franc (8.7%). Reported

revenue also benefitted from one-time exceptional revenue of $20

Mn relating to a settlement in Niger.

The underlying constant currency growth was largely driven by

customer base growth of 11.0%, to 118.9 million, and ARPU

growth of 6.1%. Revenue growth was recorded across all regions,

with Nigeria up 21.6%, East Africa up 23.4% and Francophone

Africa up 8.0%. Double-digit revenue growth was also achieved

across all service segments, with voice up 10.4%, data up 31.1%

and mobile money up 34.2% in constant currency.

Q3’21 reported revenue growth accelerated to 19.5% (benefiting

from the same $20 Mn exceptional revenue), while underlying

constant currency revenue growth was 22.8%.

Operating profit amounted to $800 Mn, up 21.8% in reported

currency, as a result of strong revenue growth and lower operating

expenditures in proportion to revenue. Operating profit in constant

currency grew by almost 30%.

Net finance costs increased by $93 Mn, driven by higher other

finance costs which more than offset the reduced interest costs of

$9.0m as a result of lower gross debt. Increase in other finance

costs was primarily due to a higher forex impact of $38 Mn ($81

Mn in current period vs $43 Mn in previous period) and one-off

derivative gains of $47 Mn in the previous period.

Page 25 of 60

Total tax charges for the period amounted to $221 Mn as

compared to $170 Mn in the comparable period last year. This was

due to higher operating profit and withholding tax on dividends

declared. The prior period also benefited from recognition of higher

deferred tax credit of $43 Mn in DRC as against $14 Mn in

Tanzania during the nine-month period ended 31 December 2020.

Profit after tax was $261 Mn, down by 21.1%. This was largely a

result of the prior year period recognition of a one-off gain of $72

Mn related to the expired indemnity to certain pre-IPO investors, a

higher deferred tax credit of $29 Mn in the previous period, as well

as higher finance costs and tax in the current period. Excluding the

benefit of exceptional items and one-off derivative gain of $47 Mn

in the prior period, profit after tax has increased by 30.1%.

Basic EPS was 5.5 cents, down 36.5%. This was a result of higher

other finance costs, due to a $47 Mn derivative gain in the prior

period, an increase in tax charges due to higher operating profit

and withholding tax on dividend, higher non-controlling interest,

and the recognition in the prior period of a one-off gain of $72 Mn

related to the expired indemnity to certain pre-IPO investors which

was accounted for as an exceptional item. Excluding exceptional

items and the one-off $47 Mn derivative gain, basic EPS would be

up 19.8%. Non-controlling interest increased by $29 Mn (113%),

largely as a result of higher profit in OPCOs with minority

shareholdings, including Airtel Nigeria, Airtel Tanzania, Airtel

Niger and Airtel Malawi.

Alternative performance measures

EBITDA for the nine months was $1,297 Mn, up 16% year on year

in reported currency. In constant currency EBITDA grew 22.5%.

This was driven by revenue growth of 18.6% and improved

efficiency in operating expenses. EBITDA margin was 45.5%, an

improvement of 1.2pp in reported currency and 1.4 pp in constant

currency.

Foreign exchange had an adverse impact of $122 Mn on constant

currency revenue and $60 Mn on EBITDA, largely driven by

devaluation of the Nigerian naira, Zambian kwacha and Kenya

shilling, partially offset by appreciation in the Central African Franc

(CFA).

Q3’21 EBITDA margin was 46.9%, an improvement of 1.7pp in

reported currency and 2.0pp in constant currency.

The effective tax rate was 46% compared to 50% in the previous

period, largely as a result of the profit mix change amongst the

operating entities (“OPCOs”). The effective tax rate is higher than

the weighted average statutory tax rate of approximately 33%,

largely due to the profit mix between various OPCOs and higher

withholding tax on dividend declared. The adjusted effective tax

rate was 43% compared to 39% in the previous period, largely as

a result of recognition of higher deferred tax credit of $43m in DRC

in the prior period as against $14 Mn in Tanzania during the nine-

month period ended 31 December 2020.

An exceptional gain of $28 Mn in December 2020 consisted of (i)

a one-time benefit of $20 Mn on account of a settlement in Niger

(Airtel Niger signed an IRU (Indefeasible Right of Use) deal with a

Niger telecommunications operator, and as part of the commercial

agreement the receivables from the operator for prior periods have

been settled and recognised as an exceptional item) (ii) a deferred

tax credit in Tanzania amounting to $14 Mn, partially offset by (iii)

one-off costs of $6.7 Mn in Francophone Africa. Exceptional items

for the nine-month period ended 31 December 2019 mainly

consisted of a $72 Mn gain related to the expired indemnity to

certain pre-IPO investors and a deferred tax credit of $43 Mn in

DRC.

Free cash flow was $466 Mn, up by 20% largely due to higher

EBITDA, with capex broadly stable. This was partially offset by an

increase of $71 Mn in cash tax as a result of higher operating profit.

EPS before exceptional items was 5.0 cents, down by 13.7%, as

a result of higher other finance costs due to the recognition of a

$47 Mn derivative gain in the prior period, higher non-controlling

interest, and an increase in tax charges due to the higher operating

profit and withholding tax on the dividend. Excluding the one-time

derivative gain of $47 Mn, restated EPS grew 19.8%. Non-

controlling interest increased by $29 Mn (113%), largely as a result

of higher profit in OPCOs with minority shareholdings including

Airtel Nigeria, Airtel Tanzania, Airtel Niger and Airtel Malawi.

6.4.2 Net Debt

Net debt to EBITDA improved to 2.1x, as the increase in EBITDA

more than offset the increase in net debt.

6.4.3 Segment Wise – Africa

6.4.3.1 Nigeria

Revenue in reported currency grew by 13.5%, while in constant

currency revenue grew by 21.6% as a result of Nigerian naira

devaluation by 7.9% (YoY). Revenue growth in Q3’21 improved to

15.9% in reported currency, and to 24.1% in constant currency.

Voice revenue continued to grow by double digit to $657 Mn in the

nine-month period, up by 14.2% in constant currency. Voice

revenue growth was driven by the combination of growing

customer base and ARPU. The customer base increased by

11.5%, driven by continued expansion of our distribution network

and network infrastructure. Voice ARPU growth of 1.4% was a

result of increased voice usage per customer, up 12.4%. Q3’21

voice revenue growth accelerated to 19.4% in constant currency,

mainly driven by voice ARPU growth.

Data revenue growth of 35.2% in constant currency was driven by

23.6% growth in data customers and the 12.2% growth in data

ARPU. Data customer penetration was up by 4.1pp from the

previous period and reached 42.4% as of December 2020. The

data customer base growth of 23.6% was a result of expansion of

the 4G network, with 82% of total sites now on 4G. Data usage per

customer increased by 49.2% and data revenue accounted for

35.1% of total revenue in the nine-month period, up by 3.5pp from

31.6% in previous period.

EBITDA grew by 13.6% in reported currency, with constant

currency growth of 21.7%. EBITDA margin during the period was

almost flat compared with the previous period. The slight drop in

Q3 EBITDA margin is due to increased operating expenses as a

result of higher new sites rollout (1600+ additional sites during the

period).

Page 26 of 60

Capital expenditure was broadly stable at $178 Mn. Operating free

cash flow was $430 Mn, up by 34.2%, largely as a result of the

growth in EBITDA.

6.4.3.2 East Africa

Performance in East Africa continued to be strong with 14.9%

revenue growth in reported currency and 23.4% in constant

currency. Revenue growth in Q3’21 accelerated to 16.3% in

reported currency, and 26% in constant currency, supported by

growth across all key business segments, but particularly mobile

money. Constant currency revenue growth was partially offset by

currency devaluation, mainly in Zambia and Kenya.

Voice revenue amounted to $486 Mn, with growth of 7.3% in

reported currency and 15.4% in constant currency, driven by

customer base growth of 11.1% and voice ARPU growth of 2%.

Total minutes on the network were up 35.7%, led by a 20%

increase in voice usage per customer and customer base growth.

In Q3’21 voice revenue was up 11.1% in reported currency and

20.4% in constant currency.

Data revenue was $262 Mn, up 25.1% year on year in constant

currency. This was driven by data customer base growth of 21.2%

and a data ARPU increase of 2%. Growth was recorded across all

OPCOs, driven by expansion of our network infrastructure, with

72% of sites now on 4G, compared with 64% during the previous

period. Data usage per customer reached 2.6GB per customer, up

45.4% from 1.8GB per customer in the prior period. Total data

usage on our network grew 78.4% year on year.

During the period “Pay as you Go tariffs” in certain markets were

updated and this resulted in a revenue reallocation of bundled

products of voice and data in such tariffs. On a like for like basis

voice and data revenue growth was 11.1% and 33.8%

respectively.

Mobile money revenue grew 47% in constant currency, largely

from growth in Zambia, Tanzania, Uganda and Malawi. This was

driven by 28.5% customer base growth and 27% growth in the

transaction value per customer, due to expansion of our

distribution network. Mobile money ARPU grew by 15.1% in the

nine-month period. Q3’21 mobile money revenue grew 54.1% with

28.5% growth in the customer base and mobile money ARPU

growth of 20.2% in constant currency.

EBITDA margin was 45.2%, an improvement of 4.8pp in reported

currency and 5.0pp in constant currency, due to accelerated

growth in revenue and efficiency improvement in operating

expenses.

Capital expenditure was $168 Mn, up 39.3% as a result of planned

network expansion. Operating free cash flow was $295 Mn, up by

38.6% due largely to the improvement in EBITDA.

6.4.3.3 Francophone Africa

Performance in Francophone Africa improved strongly, with

reported revenue growth of 9.4% and constant currency growth of

8.0%. Reported currency growth was higher than constant

currency growth due to appreciation in the value of the Central

African and West Africa franc. Performance across the region was

mixed, with revenue growth in Democratic Republic of the Congo

(DRC), Gabon, Niger and Chad partially offset by marginal decline

in a few countries in the region. For Q3’21 revenue growth

accelerated significantly to 18.9% in reported currency and 15.0%

in constant currency.

Voice revenue was almost flat in reported currency for the nine-

month period ended December 2020. However, Q3’21 voice

revenue grew by 9.6% in reported currency and 5.6% in constant

currency. This was driven by customer base growth of 9.7% offset

by a decline in Voice ARPU of 3.2%. The Voice ARPU trend

reflects reductions in interconnect rates in Gabon and Chad and

roaming revenues. Total voice minutes on the network grew by

28% in Q3 year on year.

Data revenue increased by 31.4% in constant currency, driven by

customer growth of 29.6% and data ARPU growth of 1.8%.

Smartphone penetration increased by 4pp and reached 29.3%.

Data usage per customer increased from 1.2GB per customer to

1.9GB per customer. As a result, total data usage more than

doubled and data usage per customer was up 60.7%. The data

customer base growth of 29.6% was due to expansion of our 4G

network, with 59% of total sites now on 4G, and the success of our

“More for More” bundle offerings driving data uptake by customers.

Mobile money revenue for the nine-month period was $79 Mn, with

constant currency growth of 13.9%. This was largely driven by a

32.3% increase in the mobile money customer base supported by

the expansion of our distribution network through more agents,

kiosks and Airtel Money branches.

EBITDA margin was 36.1% during the period, an improvement of

1.6pp in constant currency. Q3’21 EBITDA margin at 41.7%, an

improvement of 4.3pp in constant currency driven by revenue

growth and opex efficiency.

Capital expenditure during the period was $56 Mn. This is almost

half the level of the previous period due to a significant network

modernisation programme last year. Operating free cash flow was

at $198 Mn, up 51.7% as a result of an improvement in EBITDA

and lower capital expenditure.

6.4.4 Product wise Africa

6.4.4.1 Mobile services:

Mobile services revenue increased by 11.5% on a reported basis

and by 17% in constant currency, with both voice and data

revenue contributing to revenue growth.

Voice revenue increased by 5.3% in reported currency and 10.4%

in constant currency, driven by customer base growth of 11% as a

result of the expansion of the distribution network and network

infrastructure, partially offset by a slight decline in voice ARPU by

1.3%. Voice usage per customer increased by 17.4% resulting in

overall minutes growth of 31.3%. In Q3’21 voice revenue grew by

16.9% with an improved performance across all regions.

Data revenue was up by 31.1% in constant currency in the nine-

month period, largely driven by an increase in the data customer

base and data usage growth. Our data customer base grew 23.5%

supported by continued expansion of our 4G network (with 74% of

sites now on 4G), increased smartphone penetration by 1.7pp, and

an increase in data ARPU of 7.0%. 34.2% of our total customer

base are now data customers, up from 30.7% in the prior nine-

month period. Data usage per customer per month was 2.6GB, up

48.4% year on year, largely driven by our 4G network expansion

and increasingly popular data bundle offerings. Total data usage

Page 27 of 60

was up 81.9% driven by increase in both customer base and data

usage per customer. Growing penetration on our 4G network

helped drive data ARPU growth up 7%, with 4G data usage more

than doubling and contributing 59% to total data usage on the

network in Q3’21.

For the nine-month period data revenue contributed 29.5% to total

Group revenue, up from 26.8% in the previous period.

6.4.4.2 Mobile Money

Mobile money revenue amounted to $291 Mn, up 27.8% in

reported currency and up 34.2% in constant currency. The latter

was driven by 29% growth in the customer base and transaction

value growth of 51.6%. Growth in the customer base was largely

driven by the expansion of our distribution network, as we

continued to invest in exclusive kiosks and mobile money

branches. Throughout the period, the expansion of our mobile

money product portfolio, through various partnerships with leading

financial institutions, and the expansion of our merchant

ecosystem have further strengthened our mobile money

propositions.

EBITDA amounted to $142 Mn for the period, an increase of

28.3% in reported currency and 34.1% in constant currency. The

EBITDA margin was 48.7%, broadly stable with the previous

period. The growth in total transaction value of 51.6% in constant

currency was driven by customer base growth of 29% and 18.6%

growth in transaction value per customer per month. The Q3’21

annualised transaction value reached $52bn and mobile money

revenue now accounts for 10.2% of total revenue.

Our mobile money customer base reached 21.5 million, up 29%

over the previous period, with Airtel Money customers now

representing 18% of our total customers, an increase of 2.5pp.

Mobile money ARPU was up 5.1%, driven by the increase in

transaction values and a higher contribution from merchant

payments, cash out, P2P transfer and recharge of mobile services

through Airtel Money.

Results for the Quarter ended December 31, 2020

6.5.1 Airtel Africa Consolidated

As on 31 Dec 2020, the group had an aggregate customer base of

118.9 Mn as compared to 107.1 Mn in the corresponding quarter

last year, an increase of 11.0%. Total minutes on network during

the quarter registered a growth of 31.6% to 85.7 bn as compared

to 65.1 bn in the corresponding quarter last year.

Data customers increased by 7.7 Mn to 40.6 Mn as compared to

32.9 Mn in the corresponding quarter last year. Increase in data

subscribers was mainly led by increase in smartphone penetration,

up 1.7pp to 32.7%, and expansion of 4G network (74% of the total

sites are now on 4G). Total MBs on the network grew by 68.9% to

320.6 bn MBs as compared to 189.8 bn MBs in the corresponding

quarter last year. Data usage per customer during the quarter was

at 2,653 MBs as compared to 1,967 MBs in the corresponding

quarter last year, an increase of 34.9%.

Mobile Money revenue in constant currency grew by 41.1% driven

by customer growth of 29.0% and transaction value growth of

62.0%. The Group continued to expand the distribution network

through kiosks, mini shops and dedicated Airtel Money branches.

It also introduced additional mobile money services, including

merchant and commercial payments, benefits transfers, loans and

savings, building international money transfer services through

partnerships. Our mobile money customer base reached 21.5

million, up 29% over the previous period, with Airtel Money

customers now representing 18% of our total customers, an

increase of 2.5pp.

Reported revenue grew by 17.2%, whereas constant currency

revenue grew by 22.8%, which was partially offset by currency

devaluation. Constant currency revenue growth was largely driven

by 11.0% increase in the customer base, to 118.9 Mn, and a

increase in ARPU by 9.3% to $ 2.9. Revenue growth was recorded

across all the regions: Nigeria up 24.1%, East Africa up 26.0% and

Francophone Africa up 15.0% and services with voice revenue up

16.9%, data revenue up 27.0% and mobile money revenue up

41.1% in constant currency terms.

For the quarter, EBITDA in reported currency was $ 485 Mn, up

21.7% and 28.3% in constant currency terms. EBITDA growth

largely driven by revenue growth of 22.8% in constant currency

and efficiencies in operating expense. EBITDA margin was at

46.9%, an improvement of 2.0pp in constant currency.

On reported basis, Profit after Tax before exceptional item and

minority interest was $ 91 Mn, an increase of 25% compared to

the prior year.

Capital expenditure during the quarter was $ 188 Mn.

Operating Free Cash Flow was $ 298 Mn, up 19.6% in Reported

Currency, mainly as a result of growth in EBITDA by 21.7%.

6.5.2 Segment Wise – Africa

6.5.2.1 Nigeria

Reported revenue in Nigeria grew by 15.9% whereas constant

currency growth was 24.1%, which was as a result of Nigerian

naira devaluation by 7.9% (YoY). The revenue growth was largely

driven by voice revenue growth of 19.4% and sustained growth in

data with revenue up 30.2% in constant currency.

Voice revenue growth of 19.4% was supported by 11.5% growth

in customer base which was driven by expansion of our distribution

network as well as network infrastructure.

Data revenue growth of 30.2% in constant currency was supported

by 23.6% growth in data customers and 3.3% growth in data

ARPU. Data customer penetration was up by 4.1pp from the

previous period and reached 42.4% as of December 2020. The

data customer base growth of 23.6% was a result of the expansion

of 4G network, with 82% of total sites now on 4G. The total data

usage on our network grew by 64.6%. Data usage per customer

was up by 30.6%.

EBITDA margin in constant currency at 53.8%, YoY decrease of

0.9pp in EBITDA margin which is mainly due to increased

operating expenses as a result of higher new sites rollout (1600+

additional sites during the period).

During the period, capital expenditure was $ 81 Mn.

Operating Free Cash Flow was $ 140 Mn, up 8% in Reported

Currency, largely as a result of EBITDA growth.

Page 28 of 60

6.5.2.2 East Africa

Reported revenue in East Africa grew by 16.3%, whereas constant

currency growth was 26.0%, which was partially offset by currency

devaluation, mainly in Zambia and Kenya. Revenue growth of

26.0% in constant currency was driven by growth across all

services with voice revenue up by 20.4%, data revenue up by

17.2% and mobile money revenue up by 54.1%.

Voice revenue was up by 20.4%, largely driven by customer

growth of 11.1% and voice usage per customer up by 19.7%.

Data revenue increased 17.2%, driven by the increase in data

customer base, up 21.2% and increase in data usage per

customer, up 39.4%. Growth was recorded across all OPCOs,

driven by the expansion of network infrastructure, with 71.8% of

the sites now on our 4G network as compared to 64.4% during the

previous period. Our mobile network in Zambia, Malawi and

Uganda now consists of 100% of 4G sites.

Mobile Money revenue increased by 54.1% supported by increase

in customer base by 28.5% and transaction value per customer up

by 32.3%. We continued to expand our Mobile Money distribution

network (Agents, Kiosks and Airtel Money Branches).

EBITDA margin in constant currency at 46.5%, improved by 6.3pp

as a result of revenue growth and cost efficiencies.

Capital expenditure during the period was $ 87 Mn.

Operating free cash flow was at $ 83 Mn, up by 26.3% in Reported

Currency as a result of improvement in EBITDA.

6.5.2.3 Francophone Africa

Reported revenue grew by 18.9%, whereas constant currency

growth was 15.0%. Revenue growth was driven by all products

that is voice, data and mobile money

Voice revenue increased by 5.6% largely due to a reduction in

interconnect charges in few markets as well as decrease in

international and roaming revenue. Total minutes on network grew

by 28.0% while voice usage per customer was up by 17.3%.

Data revenue grew by 35.8% in constant currency, supported by

data customer base growth of 29.6%. Additionally, smartphone

penetration increased by 4.0pp to reach 29.3%. Total data usage

grew by 88% and data usage per customer was up 41.9%.

Mobile money revenue grew by 16.1% largely driven by 32.3%

growth in mobile money customer base supported by the

expansion of our distribution network through increase in agents,

kiosks and Airtel Money branches.

EBITDA margin in constant currency at 41.8%, increased by

4.3pp. The increase in EBITDA margin was largely due to revenue

growth in OPEX efficiency.

Capital expenditure during the period was $ 20 Mn,

Operating free cash flow was at $ 88 Mn, up by 54.0% in Reported

Currency as a result of improvement in EBITDA.

6.5.3 Product wise Africa

6.5.3.1 Mobile services

Reported mobile services revenue was up by 14.7%, with 20.2%

growth in constant currency, with both voice and data revenue

contributing to mobile services revenue growth.

Voice revenue in constant currency grew by 16.9%, driven by

customer base growth of 11%, as a result of the expansion of the

distribution network and network infrastructure, voice ARPU in

constant currency increased by 4.0%. Total minutes grew by

31.6% as a result of the increase in voice usage per customer by

17.1%.

Data revenue grew by 27.0% in constant currency, supported by

data customer base growth of 23.5%, increase in data ARPU by

1.5% and the accelerated 4G network rollout. Data customer base

was 34.2% of our total customer base, from 30.7% compared to

the previous period. Total data usage was up by 68.9% driven by

both customer base increase of 23.5% and 34.9% growth in data

usage per customer.

6.5.3.2 Mobile Money

Reported mobile money revenue was $110 Mn, up 34.0%, with a

constant currency growth of 41.1%.

The revenue growth of 41.1% was driven by a customer base

growth of 29.0% and a 62.0% growth in transaction value.

The mobile money customer base grew to 21.5 Mn, up 29.0% over

the previous period, with Airtel Money customers representing

18.0% of our total customers. Mobile money ARPU was up 9.7%,

Growth in the customer base was largely driven by the expansion

of our distribution network, as we continued to invest in exclusive

kiosks and mobile money branches. Throughout the period, the

expansion of our mobile money product portfolio, through various

partnerships with leading financial institutions, and the expansion

of our merchant ecosystem have further strengthened our mobile

money propositions.

EBITDA amounted to $ 53.5 Mn, an increase of 33.3% in reported

currency and 39.6% in constant currency. EBITDA margin in

reported currency was at 48.7%.

Page 29 of 60

SECTION 7

DETAILED FINANCIAL AND RELATED INFORMATION

7.1 Summarized extracts from interim unaudited condensed consolidated financial statements prepared under IAS 34

for the nine months ended 31 December 2020 and audited consolidated financial statements for the year ended

31 March 2020 prepared in accordance with IFRS.

7.1.1 Consolidated Statement of Comprehensive Income



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Income

Revenue 1,055 883 19% 2,870 2,522 14%

Other income 2 4 (60%) 10 15 (32%)

1,057 887 19% 2,880 2,537 14%

Expenses

Netw ork operating expenses 181 162 12% 511 459 11%

Access Charges 102 98 4% 279 282 (1%)

License fee / spectrum usage charges 50 44 13% 145 138 5%

Employee benefits expense 66 61 8% 208 172 21%

Sales and marketing expenses 51 19 172% 138 102 35%

Impairment loss/(reversal) on f inancial assets 6 (3) 293% 8 (1) 755%

Other expenses 97 81 19% 286 247 16%

Depreciation and amortisation 176 163 8% 505 481 5%

729 625 17% 2,080 1,880 11%

Operating profit 328 262 25% 800 657 22%

Finance costs 131 86 51% 325 296 10%

Finance income (3) (10) 73% (7) (70) 90%

Non-operating income - - - (70) 100%

Share of profit of associate 0 0 (84%) (0) (0) (428%)

Profit before tax 200 186 8% 482 501 (4%)

Income Tax expense 84 83 2% 221 170 30%

Profit for the period 116 103 13% 261 331 (21%)

Profit before tax (as presented above) 200 186 8% 482 501 (4%)

Add: Exceptional items (net) (20) (18) (12%) (14) (65) 79%

Underlying profit before tax 180 168 8% 468 436 7%

Profit after tax (as presented above) 116 103 13% 261 331 (21%)

Add: Exceptional items (net) (25) (30) 16% (28) (104) 73%

Underlying profit after tax 91 73 25% 233 227 3%

Particulars

Exceptional items are included within their respective heads.

Revenue in above table includes one-time exceptional revenue of $20 Mn relating to a settlement in Niger in the nine months and the three month periods to 31 December 2020.

Page 30 of 60

7.1.2 Consolidated Statement of Comprehensive Income



Dec-20 Dec-19Y-on-Y

ChangeDec-20 Dec-19

Y-on-Y

Change

Other comprehensive income ('OCI')

Items to be reclassified subsequently to profit or loss:

Net loss due to foreign currency translation differences (73) (9) (714%) (44) (32) (36%)

Net( loss)/gain on net investments hedge (9) (4) (146%) (20) 3 (713%)

Net gain on cash flow hedge - 4 (100%) - 0 (100%)

(82) (9) (820%) (64) (29) (123%)

Items not to be reclassified subsequently to profit or loss:

Re-measurement (loss)/gain on defined benefit plans 0 2 (68%) (0) 1 (100%)

Tax credit/(expense) on above (0) (0) 95% 0 (0) 110%

0 2 (67%) (0) 1 (100%)

Other comprehensive income/(loss) for the period (82) (7) (1,001%) (64) (28) (131%)

Total comprehensive income for the period 34 96 (64%) 197 303 (35%)

Profit for the period attributable to: 116 103 13% 261 331 (21%)

Ow ners of the Company 95 90 5% 206 305 (32%)

Non-controlling interests 21 13 70% 55 26 113%

Other comprehensive income/(loss) for the period attributable to: (82) (7) (1,037%) (64) (28) (128%)

Ow ners of the Company (80) (20) (294%) (60) (40) (49%)

Non-controlling interests (2) 13 (117%) (4) 12 (131%)

Total comprehensive income for the period attributable to: 34 96 (64%) 197 303 (35%)

Ow ners of the Company 15 70 (78%) 146 265 (45%)

Non-controlling interests 19 26 (25%) 51 38 33%

Earnings per share

Basic 2.5c 2.4c 5.5c 8.6c

Diluted 2.5c 2.4c 5.5c 8.6c

Particulars

Page 31 of 60

7.1.3 Consolidated Summarized Financial Position

Amount in US$ Mn

As at As at

Dec 31, 2020 Mar 31, 2020

Assets

Non-current assets

Property, plant and equipment 1,985 1,832

Capital w ork-in-progress 207 259

Right of use assets 772 639

Goodw ill 3,916 3,943

Other intangible assets 586 456

Intangible assets under development 5 30

Investment in associate 3 3

Financial Assets

- Investments 0 0

- Derivative instruments 0 0

- Security deposits 8 7

- Others 7 1

Income tax assets (net) 42 39

Deferred tax assets (net) 299 333

Other non-current assets 102 112

7,932 7,654

Current assets

Inventories 6 3

Financial Assets


- Trade receivables 106 132

- Cash and cash equivalents 1,168 1,010

- Other Bank balance 7 6

- Balance held under mobile money trust 438 295

- Others 69 66

Other current assets 161 149

1,965 1,671

Total Assets 9,897 9,325

Current liabilities

Financial Liabilities

- Borrow ings 351 235

- Current maturities of long-term borrow ings 1,241 429

- Lease liabilities 225 199


- Trade payables 373 416

- Mobile money w allet balance 433 292

- Others 363 461

Provisions 66 70

Deferred revenue 148 124

Current tax liabilities (net) 136 144

Other current liabilities 154 115

3,494 2,488

Net current liability (1,529) (817)

Non-current liabilities

Financial Liabilities

- Borrow ings 1,851 2,446

- Lease liabilities 1,034 970


- Others 94 15

Provisions 26 23

Deferred tax liabilities (net) 77 69

Other non-current liabilities 24 29

3,110 3,556

Total liabilities 6,604 6,044

Net Assets 3,293 3,281

Equity

Share capital 3,420 3,420

Retained earnings 2,842 2,805

Other reserve (2,900) (2,837)

Equity attributable to owners of the company 3,362 3,388

Non-controlling interests ('NCI') (69) (107)

Total equity 3,293 3,281

Particulars

Page 32 of 60

7.1.4 Consolidated Summarized Statement of Cash Flows

Nine Months Ended

Dec-20 Dec-19

Cash flows from operating activities

Profit before tax 482 501

Adjustments for -

Depreciation and amortisation 505 481

Finance income (7) (70)

Finance cost 325 296

Share of profit of associate (0) (0)

Non-operating income adjustments - (70)

Other adjustments (1) (13) (35)

Operating cash flow before changes in working capital 1,292 1,103

Changes in working capital

Increase in trade receivables (3) (7)

Increase in inventories (3) (1)

Decrease in trade payables (44) (16)

Increase in mobile money w allet balance 141 69

(Decrease)/Increase in provisions (3) 4

Increase in deferred revenue 24 19

Decrease in income received in advance (1) (9)

Increase in other f inancial and non f inancial liabilities 8 8

Increase in other f inancial and non f inancial assets (28) (19)

Net cash generated from operations before tax 1,383 1,151

Income taxes paid (166) (95)

Net cash generated from operating activities (a) 1,217 1,056

Cash flows from investing activities

Purchase of property, plant and equipment and capital w ork-in-progress (485) (548)

Purchase of intangible assets (79) (38)

Interest received 12 22

Net cash used in investing activities (b) (552) (564)

Cash flows from financing activities

Proceeds from issue of shares to ow ners of the Company - 680

Proceeds from sale of shares to non-controlling interests - 3

Acquisition of non-controlling interests (3) -

Purchase of ow n shares by ESOP trust (0) -

Payment of share issue expenses - (17)

Proceeds from borrow ings 362 169

Repayment of borrow ings (209) (341)

Repayment of lease liabilities (146) (137)

Dividend paid to non-controlling interests (9) -

Dividend paid to ow ners of the Company (169) (113)

Interest and other f inance charges paid (248) (247)

Share stabilisation proceeds - 7

Proceeds from cancellation of derivatives - 122

Payment on maturity of derivatives (3) -

Net cash (used) in/generated from financing activities (c) (425) 126

Increase in cash and cash equivalents during the period (a+b+c) 240 618

Currency translation differences relating to cash and cash equivalents (14) 2

Cash and cash equivalents as at beginning of the period 1,087 870

Cash and cash equivalents as at end of the period (2) 1,313 1,490

Particulars

(1) For the period ended 31 December 2020, this includes $ 20 Mn on account of service revenues, which represents recognition of revenues pertaining to earlier years on a cumulative catch-up basis, arising out of a settlement agreement entered with a customer in one of the group’s subsidiaries. For the period ended 31 December 2019, this includes impact relating to previous periods of $ 27 Mn on deferment of customer acquisition costs following reassessment of customer life. (2) Includes balance held under mobile money trust of $ 438 Mn (December 2019: $ 307 Mn) on behalf of mobile money customers which are not available for use by the group. Starting 31 March 2020, the group considers balance held under mobile money trust to be cash and cash equivalent. Consequent reclassification have been made to the cash flow statement for the nine months ended 31 December 2019.

Page 33 of 60

7.2 Use of Alternative performance measures (APM) Financial Information In presenting and discussing the Group’s reported financial position, operating results and cash flows, certain information is derived from

amounts calculated in accordance with IFRS, but this information is not in itself an expressly permitted GAAP measure. Such Alternative

performance measures (APM) should not be viewed in isolation as alternatives to the equivalent GAAP measures, if any.

A summary of Alternative performance measures (APM) included in this report, together with details where additional information and

reconciliation to the nearest equivalent GAAP measure can be found, is shown below.

Alternative performance measures (APM) Equivalent GAAP measure for IFRSLocation in this results announcement

of reconciliation and further information

Revenue Revenue (as reported in IAS 34 table 7.1.1) Page 33

Earnings before Interest, Taxation, Depreciation and

Amortization (EBITDA)

Operating profit Page 33

Underlying Operating Expenses Expenses Page 34

Finance Cost (net) Finance Cost and Finance Income Page 34

Profit / (loss) before tax (before exceptional item) Profit / (Loss) Before Tax Page 34

Profit / (loss) after tax (before exceptional item) Profit / (loss) after tax Page 34

Cash Profit from Operations before Derivative &

Exchange (Gain)/Loss

Profit from operating activities Page 35

Effective tax rate and adjusted Effective tax rate Reported Tax Rate Page 35

Capital Expenditure (Capex) Refer glossary NA

Operating free cash flow Refer glossary NA

Capital Employed Refer glossary NA

7.2.1 Reconciliation between GAAP and Alternative performance measures (APM)

7.2.1.1: Revenue

Dec-20 Dec-19

Revenue (as reported in IAS 34 table 7.1.1) US$ Mn 2,870 2,522

Less:

Exceptional items US$ Mn (20)

Revenue US$ Mn 2,850 2,522

Particulars UoMNine Months Ended

Exceptional item in above table is $ 20 Mn (in reported currency) relating to a settlement in Niger in the nine-month period to 31 December 2020

7.2.1.2: EBITDA and Margin

Dec-20 Dec-19

Operating profit US$ Mn 800 657

Add:

Depreciation and amortization US$ Mn 505 481

Charity and donation US$ Mn 6 4

Exceptional items US$ Mn (14) (24)

EBITDA US$ Mn 1,297 1,118

Revenue US$ Mn 2,850 2,522

EBITDAMargin (%) US$ Mn 45.5% 44.3%


Page 34 of 60

7.2.1.3: Underlying Operating Expenditure

Dec-20 Dec-19

Expenses US$ Mn 2,080 1,880

Less:

Access charges US$ Mn (279) (282)

Depreciation and amortization US$ Mn (505) (481)

Charity and donation US$ Mn (6) (4)

Exceptional items US$ Mn (6) 24

Underlying Operating Expenditure US$ Mn 1,284 1,137


7.2.1.4: Finance Cost (net)

Nine Months Ended

Dec-20 Dec-19

Finance cost US$ Mn 325 296

Finance income US$ Mn (7) (70)

Exceptional items US$ Mn 0 0

Finance cost (net) US$ Mn 318 225

Particulars UOM

7.2.1.5: Profit / (Loss) Before Tax

Dec-20 Dec-19

Profit / (loss) for the year Before Tax US$ Mn 482 501


Profit / (loss) before tax (before exceptional item) US$ Mn 468 436


7.2.1.6: Profit / (Loss) After Tax

Dec-20 Dec-19

Profit / (loss) after tax US$ Mn 261 331


Profit / (loss) after tax (before exceptional item) US$ Mn 233 227


7.2.1.7: Operating Free Cash Flow

Dec-20 Dec-19

Net Cash Generated from Operating Activities US$ Mn 1,217 1,056

Add: Income tax paid US$ Mn 166 95

Cash Generation from Operation before tax US$ Mn 1,383 1,151

Less: Changes in working capital US$ Mn 92 48

Operating cash flow before changes in working capital US$ Mn 1,292 1,103

Other adjustments US$ Mn 13 35

Charity and donation US$ Mn 6 4


EBITDA US$ Mn 1,297 1,118

Less: Capital Expenditure US$ Mn (403) (396)

Operating Free Cash Flow US$ Mn 894 722


Page 35 of 60

7.2.1.8: Cash Profit from Operations before Derivative and Exchange Fluctuation

Nine Months Ended

Dec-20 Dec-19

Operating profit US$ Mn 800 657

Finance cost (net) US$ Mn (318) (225)

Depreciation and Amortisation US$ Mn 505 481

Derivatives and exchange (gain)/loss US$ Mn 81 (4)


Cash Profit from Operations before Derivative and

Exchange FluctuationUS$ Mn 1,053 885

Particulars UOM

7.2.1.9: Effective tax rate and adjusted Effective tax rate

Profit before

taxation

Income tax

expenseTax Rate %

Profit before

taxation

Income tax

expenseTax Rate %

Reported Effective tax rate US$ Mn 482 221 45.9% 501 170 34.0%

Adjusted for :

Exceptional Items (provided below ) US$ Mn (14) 14 (65) 39

Foreign exchange rate movements for non-DTA

operating companies & holding companiesUS$ Mn 58 (27)

One-off tax adjustment US$ Mn 3

Tax on Permanent Difference (net) US$ Mn 1 (6)

Effective tax rate US$ Mn 526 239 45.5% 409 203 49.7%

Deferred tax trigerred during the period US$ Mn (14) (43)

Adjusted effective tax rate US$ Mn 526 225 42.8% 409 160 39.2%

Exceptional items

1. Deferred tax asset recognition US$ Mn (14) (43)

2. Netw ork modernisation US$ Mn 27 (2)

3. Employee restructuring US$ Mn 6

4. Service revenues US$ Mn (20)

5. Reversal of indemnities US$ Mn (72)

6. Share issue and IPO related expenses US$ Mn 6

7. Finance Cost US$ Mn 1

8. Customer acquisition cost US$ Mn (27) 6

Total US$ Mn (14) (14) (65) (39)

Particulars UoM

Nine Months Ended

Dec-20 Dec-19

Page 36 of 60

SECTION 8

NET DEBT AND COST SCHEDULES

8.1 Consolidated Schedule of Net Debt

Amount in US$ Mn

As at As at

Dec 31, 2020 Mar 31, 2020

Long term borrow ing, net of current portion 1,834 2,424

Short-term borrow ings and current portion of long-term borrow ing 1,593 664

Less:

Cash and Cash Equivalents 1,168 1,010

Net Debt excluding Lease Obligations 2,259 2,078

Lease Obligations 1,259 1,169

Net Debt including Lease Obligations 3,518 3,247

Particulars

8.2 Consolidated Schedule of Net Finance Cost (in Reported Currency)

Amount in US$ Mn


Dec-20 Dec-19 Dec-20 Dec-19

Interest on borrow ings and Finance charges 51 48 144 156

Interest on Lease Obligation 34 32 101 96

Investment (income)/ loss (3) (8) (7) (22)

Finance cost excluding Derivatives and Forex 82 72 237 229

Add : Derivatives and exchange (gain)/ loss 46 5 81 (4)

Finance cost (net of Derivatives and Forex) 128 76 318 225

Particulars

8.3 Consolidated Schedule of Operating Expenses (in Constant Currency)

Amount in US$ Mn



Access charges 103 93 281 269

Cost of goods sold 51 36 136 97

License fee / spectrum charges (revenue share) 50 43 145 133

Netw ork operations costs 180 155 512 429

Employee benefits expense 68 63 207 179

Selling, general and adminstration expense 102 80 293 258

Operating Expenses 554 471 1,573 1,365

Particulars

Closing currency rates as on March 31, 2020 considered for Constant currency.

Page 37 of 60

8.4 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Constant Currency)

Amount in US$ Mn



Depreciation 148 128 424 376

Amortization 28 20 81 60

Depreciation and Amortization 176 148 505 435

Particulars

Closing currency rates as on March 31, 2020 considered for Constant currency.

8.5 Consolidated Schedule of Operating Expenses before exceptional item (in Reported Currency)

Amount in US$ Mn



Access charges 102 98 279 282

Cost of goods sold 50 38 135 103

License fee / spectrum charges (revenue share) 50 44 145 138

Netw ork operations costs 179 161 510 448

Employee benefits expense 68 65 207 184

Selling, general and adminstration expense 102 83 293 268

Operating Expenses 552 489 1,569 1,423

Particulars

8.6 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Reported Currency)

Amount in US$ Mn



Depreciation 148 132 424 391

Amortization 29 20 81 62

Depreciation and Amortization 176 153 505 453

Particulars

8.7 Consolidated Schedule of Income Tax before exceptional item (in Reported Currency)

Amount in US$ Mn



Current tax expense 63 62 165 133

Deferred tax expense / (income) 26 32 70 77

Income tax expense 89 95 235 210

Particulars

Page 38 of 60

SECTION 9

TRENDS AND RATIO ANALYSIS

9.1 Based on Statement of Operations

9.1.1 Consolidated Statement of Operations: (in Reported Currency)


Quarter Ended

Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 1,034 965 851 899 883

Access charges 102 93 84 94 98

Cost of goods sold 50 48 37 39 38

Net revenues 882 824 729 766 747

Operating Expenses (Excl Access Charges, cost of

goods sold and License Fee)349 345 310 321 308

Licence Fee 50 47 48 51 44

EBITDA 485 437 375 397 399

Cash Profit from operations before Derivative and

Exchange Fluctuations402 357 295 325 326

EBIT 308 269 210 244 245

Share of results of associate 0 (0) (0) (0) 0

Profit before Tax 180 177 111 97 167

Profit after Tax (before exceptional items) 91 92 50 70 73

Non Controlling Interest (before exceptional items) 17 17 12 12 10

Net Income (before exceptional items) 74 75 38 57 63

Exceptional items (net) (25) 4 (7) (7) (30)

Profit after Tax (after exceptional items) 116 88 57 77 103

Non Controlling Interest 21 18 15 12 13

Net Income 95 70 42 65 90

Capex 188 149 66 246 150

Operating Free Cash Flow (EBITDA - Capex) 298 287 309 151 249

Total Capital Employed 6,811 6,777 6,636 6,528 6,595


As a % of Revenue

Access charges 9.9% 9.6% 9.9% 10.5% 11.1%

Cost of goods sold 4.8% 5.0% 4.4% 4.3% 4.3%

Net revenues 85.3% 85.4% 85.7% 85.2% 84.6%

Operating Expenses (excluding access charges,

cost of goods sold and license fee)33.7% 35.7% 36.5% 35.7% 34.9%

Licence Fee 4.8% 4.9% 5.6% 5.7% 5.0%

EBITDA 46.9% 45.3% 44.1% 44.1% 45.2%

Cash Profit from operations before Derivative and

Exchange Flucations38.9% 37.0% 34.6% 36.1% 36.9%

EBIT 29.8% 27.8% 24.7% 27.2% 27.7%

Share of results of associate 0.0% (0.0%) (0.0%) (0.0%) 0.0%

Profit before Tax 17.4% 18.3% 13.1% 10.8% 18.9%

Profit after Tax (before exceptional items) 8.8% 9.5% 5.9% 7.8% 8.2%

Non Controlling Interest (before exceptional items) 1.7% 1.7% 1.4% 1.4% 1.1%

Net Income (before exceptional items) 7.1% 7.7% 4.5% 6.4% 7.1%

Exceptional items (net) (2.4%) 0.4% (0.8%) (0.8%) (3.4%)

Profit after Tax (after exceptional items) 11.2% 9.1% 6.7% 8.6% 11.6%

Non Controlling Interest 2.1% 1.8% 1.8% 1.4% 1.4%

Net Income 9.1% 7.3% 4.9% 7.2% 10.2%

Particulars

Page 39 of 60

9.1.2 Consolidated Statement of Operations: (in Constant Currency)


Quarter Ended


Revenue 1,038 963 856 870 845

Access charges 103 93 85 91 93

Cost of goods sold 51 48 37 37 36

Net revenues 885 822 733 742 716

Operating Expenses (Excl Access Charges, cost of

goods sold and License Fee)350 343 312 313 297

Licence Fee 50 47 48 50 43

EBITDA 487 436 377 382 380

EBIT 309 269 211 233 231

Capex 188 149 66 246 150



As a % of Revenue

Access charges 9.9% 9.7% 9.9% 10.4% 11.1%

Cost of goods sold 4.9% 5.0% 4.4% 4.3% 4.3%

Net revenues 85.2% 85.4% 85.7% 85.3% 84.7%

Operating Expenses (excluding access charges,

cost of goods sold and license fee)33.7% 35.7% 36.5% 36.0% 35.2%

Licence Fee 4.8% 4.9% 5.6% 5.8% 5.1%

EBITDA 46.9% 45.3% 44.0% 43.9% 44.9%

EBIT 29.8% 27.9% 24.7% 26.8% 27.3%

Particulars


Page 40 of 60

9.2 Based on Segment Wise Statement of Operations

9.2.1 Nigeria



Quarter Ended


Revenue 412 377 341 377 355

EBITDA 221 204 182 209 194

EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%

EBIT 159 141 130 163 146

Capex 81 67 30 145 64


Particulars



Quarter Ended


Revenue 414 379 343 359 334

EBITDA 223 205 183 199 183

EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%

EBIT 160 142 130 154 138

Capex 81 67 30 145 64


Particulars


Page 41 of 60

9.2.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)



Quarter Ended


Revenue 364 355 305 310 313

EBITDA 170 163 129 125 127

EBITDA / Revenue 46.8% 46.0% 42.4% 40.3% 40.5%

EBIT 113 110 74 70 70

Capex 87 62 19 61 61


Particulars



Quarter Ended


Revenue 374 358 306 299 297

EBITDA 174 164 130 120 120

EBITDA / Revenue 46.5% 45.8% 42.3% 40.2% 40.2%

EBIT 115 110 74 67 65

Capex 87 62 19 61 61


Particulars


Page 42 of 60

9.2.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)



Quarter Ended


Revenue 259 236 209 215 218

EBITDA 108 73 74 70 82

EBITDA / Revenue 41.7% 30.8% 35.1% 32.7% 37.5%

EBIT 51 23 25 24 32

Capex 20 20 16 40 24


Particulars



Quarter Ended


Revenue 249 230 211 215 217

EBITDA 104 71 74 70 81

EBITDA / Revenue 41.8% 30.9% 35.0% 32.7% 37.5%

EBIT 49 23 24 24 32

Capex 20 20 16 40 24


Particulars


Page 43 of 60

9.3 Based on Product Wise Statement of Operations

9.3.1 Mobile Services - Summarized Statement of Operations

9.3.1.1 Consolidated Mobile:



Quarter Ended


Revenue 948 891 799 844 826

EBITDA 446 392 345 366 363

EBITDA / Revenue 47.1% 44.0% 43.2% 43.3% 43.9%

EBIT 271 228 192 220 210

Capex 184 147 64 240 145


Particulars



Quarter Ended


Revenue 951 889 803 816 791

EBITDA 447 392 347 351 345

EBITDA / Revenue 47.1% 44.1% 43.1% 43.0% 43.6%

EBIT 272 229 192 209 198

Capex 184 147 64 240 145


Particulars


9.3.1.2 Nigeria Mobile Services



Quarter Ended


Revenue 412 377 341 377 354

EBITDA 222 204 182 209 194

EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%

EBIT 159 142 130 163 146

Capex 81 67 30 145 64


Particulars

Page 44 of 60



Quarter Ended


Revenue 414 378 343 359 333

EBITDA 223 205 183 199 182

EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7%

EBIT 161 142 130 154 137

Capex 81 67 30 145 64


Particulars


9.3.1.3 East Africa Mobile Services (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)



Quarter Ended


Revenue 301 298 264 268 272

EBITDA 132 128 103 100 101

EBITDA / Revenue 43.9% 43.1% 38.9% 37.2% 37.1%

EBIT 76 76 50 46 45

Capex 84 60 18 56 57


Particulars



Quarter Ended


Revenue 310 301 266 259 258

EBITDA 135 129 103 96 95

EBITDA / Revenue 43.6% 42.9% 38.8% 37.0% 36.8%

EBIT 78 76 50 44 42

Capex 84 60 18 56 57


Particulars


Page 45 of 60

9.3.1.4 Francophone Africa Mobile Services (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)



Quarter Ended


Revenue 238 218 196 200 202

EBITDA 92 60 62 58 68

EBITDA / Revenue 38.8% 27.5% 31.4% 28.7% 33.7%

EBIT 35 10 13 11 18

Capex 19 20 16 39 24


Particulars



Quarter Ended


Revenue 229 213 197 200 201

EBITDA 89 59 62 58 68

EBITDA / Revenue 38.9% 27.6% 31.3% 28.7% 33.7%

EBIT 34 10 13 11 18

Capex 19 20 16 39 24


Particulars


Page 46 of 60

9.3.2 Mobile Money - Summarized Statement of Operations

9.3.2.1 Mobile Money:



Quarter Ended


Revenue 110 100 81 83 82

EBITDA 54 49 39 39 40

EBITDA / Revenue 48.7% 48.7% 48.5% 47.3% 49.0%

EBIT 52 47 37 36 39

Capex 3 2 2 5 4


Particulars



Quarter Ended


Revenue 111 100 81 81 79

EBITDA 54 48 39 38 39

EBITDA / Revenue 48.6% 48.6% 48.5% 47.5% 49.2%

EBIT 52 46 37 36 37

Capex 3 2 2 5 4


Particulars


Page 47 of 60

9.4 Operational Performance Trends (Quarter Ended)

9.4.1 Consolidated - Operational Performance

Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Customer Base 000's 118,903 116,371 111,461 110,604 107,140

Net Additions 000's 2,532 4,910 857 3,464 3,258

Monthly Churn % 5.0% 5.3% 5.7% 5.3% 5.2%

Average Revenue Per User (ARPU) US$ 2.9 2.8 2.6 2.7 2.7

Voice

Voice Revenue US$ Mn 566 517 456 494 484

Minutes on the netw ork Mn 85,651 80,375 71,891 68,870 65,086

Voice Average Revenue Per User (ARPU) US$ 1.6 1.5 1.4 1.5 1.5

Voice Usage per customer min 241 235 218 211 206

Data

Data Revenue US$ Mn 295 283 267 245 232

Data Customer Base 000's 40,624 39,596 36,972 35,443 32,887

As % of Customer Base % 34.2% 34.0% 33.2% 32.0% 30.7%

Total MBs on the netw ork Mn MBs 320,568 293,919 279,541 219,015 189,798

Data Average Revenue Per User (ARPU) US$ 2.4 2.5 2.5 2.4 2.4

Data Usage per customer MBs 2,653 2,576 2,607 2,145 1,967

M obile M oney

Transaction Value US$ Mn 12,959 11,637 9,038 8,031 8,001

Transaction Value per Subs US$ 208 199 164 155 166

Mobile Money Revenue US$ Mn 111 100 81 81 79

Active Customers 000's 21,460 20,120 18,529 18,294 16,634

Mobile Money ARPU US$ 1.8 1.7 1.5 1.6 1.6


Netw ork tow ers Nos 24,693 24,246 23,471 22,909 22,253

Owned towers Nos 4,530 4,561 4,569 4,548 4,454

Leased towers Nos 20,163 19,685 18,902 18,361 17,799

Of w hich Mobile Broadband tow ers Nos 22,998 22,250 21,171 20,378 19,133


Data Capacity TB/day 11,448 10,253 8,371 7,572 6,780

Revenue Per site Per Month US$ 14,108 13,408 12,257 12,809 12,718

Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.

Page 48 of 60

9.4.2 Nigeria - Operational Performance


Customer Base 000's 44,449 44,054 42,513 41,757 39,855

Net Additions 000's 395 1,541 757 1,902 343

Monthly Churn % 5.4% 6.1% 5.7% 5.8% 6.8%


Voice





Data









Owned towers Nos 203 199 204 200 177







Page 49 of 60

9.4.3 East Africa - Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)


Customer Base 000's 52,612 51,265 48,757 48,634 47,366

Net Additions 000's 1,348 2,508 123 1,268 2,359

Monthly Churn % 4.6% 4.5% 5.7% 4.7% 3.8%


Voice





Data









Owned towers Nos 2,492 2,544 2,535 2,499 2,475







Page 50 of 60

9.4.4 Francophone Africa- Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)


Customer Base 000's 21,842 21,052 20,190 20,213 19,919

Net Additions 000's 790 862 (23) 294 557

Monthly Churn % 5.5% 5.5% 5.9% 6.0% 5.4%


Voice





Data









Owned towers Nos 1,835 1,818 1,830 1,849 1,802







Page 51 of 60

SECTION 10

KEY ACCOUNTING POLICIES (AS PER IFRS)

• Property, plant and equipment and capital work-in-progress

An item is recognised as an asset, if and only if, it is probable that the future economic benefits associated with the item will flow to the Group and its cost can be measured reliably. PPE is initially recognised at cost. The initial cost of PPE comprises its purchase price (including non-refundable duties and taxes but excluding any trade discounts and rebates), and any directly attributable cost of bringing the asset to its working condition and location for its intended use. Further, it includes assets installed on the premises of customers as the associated risks, rewards and control remain with the Group. Subsequent to initial recognition, PPE is stated at cost less accumulated depreciation and any impairment losses. When significant parts of PPE are required to be replaced at regular intervals, the Group recognises such parts as separate component of assets. When an item of PPE is replaced, then its carrying amount is de-recognised from the consolidated statement of financial position and cost of the new item of PPE is recognised. The expenditures that are incurred after an item of PPE has been ready to use, such as repairs and maintenance, are normally charged to the consolidated statement of comprehensive income in the period in which such costs are incurred. However, in situations where the said expenditure can be measured reliably, and is probable that future economic benefits associated with it will flow to the Group, it is included in the asset’s carrying value or as a separate asset, as appropriate. Depreciation on PPE is computed using the straight-line method over the estimated useful lives. Freehold land is not depreciated as it has an unlimited useful life. The Group has established the estimated range of useful lives for different categories of PPE as follows: Asset Categories Years

Leasehold improvementPeriod of lease or 10-20 years,

as applicable, w hichever is less

Buildings 20

Plant and equipment

- Netw ork equipment (including passive

infrastructure)3 - 25

Computer equipment 3-5

Furniture & fixture and office equipment 1-5

Vehicles 3-5 The useful lives, residual values and depreciation method of PPE are reviewed, and adjusted appropriately, at-least as at each reporting date so as to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from these assets. The effect of any change in the estimated useful lives, residual values and / or depreciation method are accounted prospectively, and accordingly, the depreciation is calculated over the PPE’s remaining revised useful life. The cost and the accumulated depreciation for PPE sold, scrapped, retired or otherwise disposed of are de-recognised from the consolidated statement of financial position and the resulting gains / (losses) are included in the consolidated statement of comprehensive income within other expenses / other income. PPE in the course of construction is carried at cost, less any accumulated impairment and presented separately as capital work-in-progress (CWIP) including capital advances in the consolidated statement of financial position until capitalised. Such

cost comprises of purchase price (including non-refundable duties and taxes but excluding any trade discounts and rebates), and any directly attributable cost.

• Goodwill Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable net assets acquired. Goodwill is not amortised; however, it is tested for impairment and carried at cost less any accumulated impairment losses. The gains/ (losses) on the disposal of a cash-generating unit (‘CGU’) include the carrying amount of goodwill relating to the CGU sold (in case goodwill has been allocated to Group of CGUs; it is determined on the basis of the relative fair value of the operations sold). Goodwill is tested for impairment, at least annually or earlier, in case circumstances indicate that their carrying value may exceed the recoverable amount (higher of fair value less costs of sell and the value -in- use). For the purpose of impairment testing, the goodwill is allocated to a cash-generating-unit (‘CGU’) or group of CGUs (‘CGUs’) which are expected to benefit from the acquisition-related synergies and represent the lowest level within the entity at which the goodwill is monitored for internal management purposes, but not higher than an operating segment. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying value of a CGU/CGUs including the goodwill, exceeds the estimated recoverable amount of the CGU/CGUs. The recoverable amount of a CGU/CGUs is the higher of its fair value less costs to sell and its value in use. Value-in-use is the present value of future cash flows expected to be derived from the CGU/CGUs. The total impairment loss of a CGU/CGUs is allocated first to reduce the carrying value of goodwill allocated to that CGU/CGUs and then to the other assets of that CGU/CGUs - on pro-rata basis of the carrying value of each asset.

• Other Intangible assets Identifiable intangible assets are recognised when the Group controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Group and the cost of the asset can be measured reliably. The intangible assets that are acquired in a business combination are recognised at fair value as on acquisition date. Other intangible assets are recognised at cost. Such costs include cash price equivalent of deferred payments beyond normal credit terms. These assets having a definite useful life are carried at cost less accumulated amortisation and any impairment losses. Amortisation is computed using the straight-line method over the expected useful life of intangible assets. The Group has established the estimated useful lives of different categories of intangible assets as follows: a. Licenses (including spectrum) Acquired licenses and spectrum are amortised commencing from the date when the related network is available for intended use in the relevant jurisdiction. The useful lives range from two to twenty-five years.

Page 52 of 60

In addition, the Group also incurs a fee on licenses/spectrum that is calculated based on the revenue amount of the period. Such revenue-share based fee is recognised as a cost in the consolidated statement of comprehensive income when incurred. b. Software: Software are amortised over the period of the software license period, generally not exceeding three years. c. Other acquired intangible assets: Other acquired intangible assets include the following: Customer relationships: Over the estimated life of such relationships which ranges from one year to five years. The useful lives and amortisation method are reviewed, and adjusted appropriately, at least at each financial year end so as to ensure that the method and period of amortisation are consistent with the expected pattern of economic benefits from these assets. The effect of any change in the estimated useful lives and / or amortisation method is accounted prospectively, and accordingly, the amortisation is calculated over the remaining revised useful life. Further, the cost of intangible assets under development includes the amount of spectrum allotted to the Group and related costs for which services are yet to be rolled out and are presented separately in the consolidated statement of financial position.

• Investment in Associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investment in associate is accounted for using equity method; from the date on which the Group starts exercising significant influence over the associate. At each reporting date, the Group determines whether there is objective evidence that the investment is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of investment and its carrying value.

• Leases At inception of a contract, the Group assesses a contract as, or containing, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether the contract involves the use of an identified asset, the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and the Group has the right to direct the use of the asset. a. Group as a lessee The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee in the consolidated statement of financial position. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease liabilities include the net present value of fixed payments (including in-substance fixed payments), variable lease payments that are based on consumer price index (‘CPI’), the

exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. Subsequently, the lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments including due to changes in CPI or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or when the lease contract is modified and the lease modification is not accounted for as a separate lease. The corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the related right-of-use asset has been reduced to zero. Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs, and restoration costs. Subsequent to initial recognition, right-of-use assets are stated at cost less accumulated depreciation and any impairment losses and adjusted for certain re-measurements of the lease liability. Depreciation is computed using the straight-line method from the commencement date to the end of the useful life of the underlying asset or the end of the lease term, whichever is shorter. The estimated useful lives of right-of-use assets are determined on the same basis as those of the underlying property and equipment. In the consolidated statement of financial position, the right-of-use assets and lease liabilities are presented separately. When a contract includes lease and non-lease components, the Group allocates the consideration in the contract on the basis of the relative stand-alone prices of each lease component and the aggregate stand-alone price of the non-lease components. Short-term leases The Group has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of 12 months or less. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. b. Group as a lessor Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under a finance lease are recognised as receivables at an amount equal to the net investment in the leased assets. Finance lease income is allocated to the periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the finance lease. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term. When a contract includes lease and non-lease components, the Group applies IFRS 15 to allocate the consideration under the contract to each component.

Page 53 of 60

The Group enters into ‘Indefeasible right to use’ (‘IRU’) arrangements wherein the right to use the assets is given over the substantial part of the asset life. However, as the title to the assets and the significant risks associated with the operation and maintenance of these assets remains with the Group, such arrangements are recognised as operating lease. The contracted price is recognised as revenue during the tenure of the agreement. Unearned IRU revenue received in advance is presented as deferred revenue within liabilities in the consolidated statement of financial position.

• Derivative financial instruments

Derivative financial instruments, including separated embedded derivatives that are not designated as hedging instruments in a hedging relationship are classified as financial instruments at fair value through profit or loss. Such derivative financial instruments are initially recognised at fair value. They are subsequently measured at their fair value, with changes in fair value being recognised in profit or loss within finance income / finance costs.

• Hedging activities

i. Fair value hedge

Some of the Group’s entities use derivative financial instruments (e.g. interest rate / currency swaps) to manage / mitigate their exposure to the risk of change in fair value of the borrowings. The Group designates certain interest swaps to hedge the risk of changes in fair value of recognised borrowings attributable to the hedged interest rate risk. The effective and ineffective portion of changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit and loss within finance income / finance costs, together with any changes in the fair value of the hedged liability that is attributable to the hedged risk. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of the hedged item is amortised to profit or loss over the period to remaining maturity of the hedged item.

ii. Cash flow hedge Some of the Group’s entities use derivative financial instruments (e.g. foreign currency forwards, options, swaps) to manage their exposure to foreign exchange and price risk. Further, the Group designates certain derivative financial instruments (or its components) as hedging instruments for hedging the exchange rate fluctuation risk attributable to either a recognised item or a highly probable forecast transaction (‘Cash flow hedge’). The effective portion of changes in the fair value of derivative financial instruments (or its components) that are designated and qualify as cash flow hedges, are recognised in other comprehensive income and held as cash flow hedge reserve (‘CFHR’) – within other components of equity. Any gains / (losses) relating to the ineffective portion, are recognised immediately in profit or loss within finance income / finance costs. The amounts accumulated in equity are re-classified to the profit and loss in the periods when the hedged item affects profit / (loss). When a hedging instrument expires or is sold, or when a cash flow hedge no longer meets the criteria for hedge accounting, any cumulative gains / (losses) existing in equity at that time remains in equity and is recognised (on the basis as discussed in the above paragraph) when the forecast transaction is ultimately recognised in the profit and loss. However, at any point of time, when a forecast transaction is no longer expected to occur, the cumulative gains / (losses) that were reported in equity is immediately

transferred to the profit and loss within finance income / finance costs. iii. Net investment hedge The Group hedges its net investment in certain foreign subsidiaries. Accordingly, any foreign exchange differences on the hedging instrument (e.g. borrowings) relating to the effective portion of the hedge is recognised in other comprehensive income as foreign currency translation reserve (‘FCTR’) – within other components of equity, so as to offset the change in the value of the net investment being hedged. The ineffective portion of the gain or loss on these hedges is immediately recognised in profit or loss. The amounts accumulated in equity are included in the profit and loss when the foreign operation is disposed or partially disposed.

• Revenue

Revenue is recognised upon transfer of control of promised products or services to the customer at the consideration which the Group has received or expects to receive in exchange of those products or services, net of any taxes / duties and discounts. When determining the consideration to which the Group is entitled for providing promised products or services via intermediaries, the Group assesses whether the intermediary is a principal or agent in the onward sale to the end customer. To the extent that the intermediary is considered a principal, the consideration to which the Group is entitled is determined to be that received from the intermediary. To the extent that the intermediary is considered an agent, the consideration to which the Group is entitled is determined to be the amount received from the customer; the discount provided to the intermediary is recognised as a cost of sale. The Group has entered into certain multiple-element revenue arrangements which involve the delivery or performance of multiple products, services or rights to use assets. At the inception of the arrangement, all the deliverables therein are evaluated to determine whether they represent distinct performance obligations, and if so, they are accounted for separately. Total consideration related to the multiple element arrangements is allocated to each performance obligation based on their relative standalone selling prices. The stand-alone selling prices are determined based on the prices at which the Group sells equipment and network services separately. Revenue is recognised when, or as, each distinct performance obligation is satisfied. The main categories of revenue and the basis of recognition are as follows: a. Service revenue

Service revenue is derived from the provision of telecommunication services and mobile money services to customers. The majority of the customers of the Group subscribe to the services on a pre-paid basis. Telecommunication service revenues mainly pertain to usage, subscription charges for voice, data, messaging and value added services and customer onboarding charges, which include activation charges. Telecommunication services (comprising voice, data and SMS) are considered to represent a single performance obligation as all are provided over the Group’s network and transmitted as data representing a digital signal on the network. The transmission consumes network bandwidth and therefore, irrespective of the nature of the communication, the customer ultimately receives

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access to the network and the right to consume network bandwidth. Customers pay in advance for services of the Group, these cash amounts are recognised in deferred income on the consolidated statement of financial position and transferred to the consolidated income statement when the service obligation has been performed/when the usage of services becomes remote. The Group recognises revenue from these services over time as they are provided. Revenue is recognised based on actual units of telecommunication services provided during the reporting period as a proportion of the total units of telecommunication services to be provided. Subscription charges are recognised over the subscription pack validity period. Customer onboarding revenue is recognised upon successful onboarding of customer i.e. upfront. Revenues recognised in excess of amounts invoiced are classified as unbilled revenue. If amounts invoiced / collected from a customer are in excess of revenue recognised, a deferred revenue / advance income is recognised. Service revenues also includes revenue from interconnection / roaming charges for usage of the Group’s network by other operators for voice, data, messaging and signaling services. These are recognised upon transfer of control of services being transferred over time. Revenues from long distance operations comprise of voice services and bandwidth services (including installation), which are recognised on provision of services and over the period of respective arrangements. The Group has interconnect agreements with local and foreign operators. This allows customers from either network to originate or terminate calls to each others’ network. Revenue is earned and recognised as per bilateral agreements when other operators’ calls are terminated to the Group’s network i.e. the service is rendered. As part of the mobile money services, the Group earns commission from merchants for facilitating recharges, bill payments and other merchant payments. It also earns commissions on transfer of monies from one customer wallet to another. Such commissions are recognised as revenue on provision of these services by the Group. Costs to obtain or fulfil a contract with a customer The company defers costs to obtain or fulfill contracts with customers over expected average customer life. b. Equipment sales

Equipment sales mainly pertain to sale of telecommunication equipment and related accessories for which revenue is recognised when the control of equipment is transferred to the customer i.e. transferred at a point in time.

• Alternative performance measures (APM)- Exceptional items

Management exercises judgment in determining the adjustments to apply to IFRS measurements in order to derive APMs which provide additional useful information on the underlying trends, performance and position of the Group. This assessment covers the nature of the item being one-off or non-routine, whether the cause of occurrence was within the Group’s control or not and the

scale of impact of that item on reported performance in accordance with the exceptional items policy. To monitor the performance, the Group uses the following APMs:

• ‘Underlying profit before tax’ representing profit before tax for the period excluding the impact of exceptional items,

• ‘Underlying profit after tax’ representing profit after tax for the period excluding the impact of exceptional items and tax on exceptional items.

Exceptional items refer to items of income or expense within the consolidated statement of comprehensive income which are of such size, nature or incidence that their exclusion is considered necessary to explain the performance of the Group and improve the comparability between periods. Reversals of previous exceptional items are also considered as exceptional items. When applicable, these items include network modernisation, share issue expenses, restructuring costs, impairments, initial recognition of deferred tax assets, impact of mergers etc.

• Foreign currency transactions

a. Functional and presentation currency

The items included in financial statements of each of the Group’s entities are measured using the currency of primary economic environment in which the entity operates (i.e. ‘functional currency’). The financial statements are presented in US Dollar which is the functional and presentation currency of the company. b. Transactions and balances Transactions in foreign currencies are initially recorded in the relevant functional currency at the rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the closing exchange rate prevailing as at the reporting date with the resulting foreign exchange differences, on subsequent re-statement / settlement, recognised in the consolidated statement of comprehensive income within finance costs / finance income. Non-monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the exchange rate prevalent, at the date of initial recognition (in case they are measured at historical cost) or at the date when the fair value is determined (in case they are measured at fair value) – with the resulting foreign exchange difference, on subsequent re-statement / settlement, recognised in the profit and loss, except to the extent that it relates to items recognised in the other comprehensive income or directly in equity. The equity items denominated in foreign currencies are translated at historical exchange rate. c. Foreign operations

The assets and liabilities of foreign operations (including the goodwill and fair value adjustments arising on the acquisition of foreign entities) are translated into US Dollar at the exchange rates prevailing at the reporting date whereas their statements of profit and loss are translated into US Dollar at monthly average exchange rates and the equity is recorded at the historical rate. The resulting exchange differences arising on the translation are recognised in other comprehensive income and held in foreign currency translation reserve (‘FCTR’), a component of equity. On

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disposal of a foreign operation (that is, disposal involving loss of control), the component of other comprehensive income relating to that particular foreign operation is reclassified to profit or loss.

• Income-taxes The income tax expense comprises of current and deferred income tax. Income tax is recognised in the profit and loss, except to the extent that it relates to items recognised in the same or a different period, outside profit or loss, in other comprehensive income or directly in equity, in which case the related income tax is also recognised accordingly. a. Current tax Current tax is calculated on the basis of the tax rates, laws and regulations, which have been enacted or substantively enacted as at the reporting date in the respective countries where the Group entities operate and generate taxable income. The payment made in excess / (shortfall) of the respective Group entities’ income tax obligation for the period are recognised in the consolidated statement of financial position under non-current income tax assets / liabilities. Any interest, related to accrued liabilities for potential tax assessments are not included in Income tax charge or (credit), but are rather recognised within finance costs. A provision is recognised for those matters for which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable or based on expected value approach, as applicable. The assessment is based on the judgement of tax professionals within the company supported by previous experience in respect of such activities and in certain cases based on specialist independent tax advice. b. Deferred tax Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values. However, deferred tax is not recognised if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Further, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Moreover, deferred tax is recognised on temporary differences arising on investments in subsidiaries and associate - unless the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets, recognised and unrecognised, are reviewed at each reporting date and assessed for recoverability based on best estimates of future taxable profits. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Income tax assets and liabilities are off-set against each other and the resultant net amount is presented in the consolidated statement of financial position, if and only when, (a) the Group

currently has a legally enforceable right to set-off the current income tax assets and liabilities, and (b) when it relate to income tax levied by the same taxation authority and where there is an intention to settle the current income tax balances on net basis.

• Transactions with non-controlling interests A change in the ownership interest of a subsidiary, without a change of control, is accounted for as a transaction with equity holders. Any difference between the amount of the adjustment to non-controlling interests and any consideration exchanged is recognised in ‘transactions with NCI reserve’, within equity.

• Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the relevant obligation, using a pre-tax rate that reflects current market assessments of the time value of money (if the impact of discounting is significant) and the risks specific to the obligation. The increase in the provision due to un-winding of discount over passage of time is recognised within finance costs. Contingencies A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognised unless virtually certain and disclosed only where an inflow of economic benefits is probable.

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SECTION 11

GLOSSARY

Technical and Industry Terms

Company Related

Average Customers Average Revenue per user (ARPU)

The average number of customers for a period. Derived from the monthly averages during the relevant period. Monthly averages are calculated using the number of customers at the beginning and the end of each month. Average revenue per user per month. This is derived by dividing total revenue during the relevant period by the average number of customers during the period and dividing the result by the number of months in the relevant period.

Basic Earnings Per Share Basic Earnings Per Share is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.

Capital Expenditure (Capex)

An alternative performance measure (non-GAAP). Defined as investment in gross fixed assets (both tangible and intangible, but excluding spectrum and licences) plus capital work in progress (CWIP), excluding provisions on CWIP for the period.

Capital Employed Capital Employed is defined as sum of equity attributable to equity holders of parent, Non-controlling interests ('NCI') and net debt. The definition has been revised to include Non-controlling interests ('NCI') and the related KPIs have been reinstated for all the reported periods.

Cash Profit from Operations before Derivative and Exchange Fluctuation

It is not a GAAP measure and is defined as profit from operating activities before depreciation, amortization and exceptional items adjusted for finance cost (net of finance income) before adjusting for derivative and exchange (gain)/ loss.

Churn

Churn is derived by dividing the total number of customer disconnections during the relevant period by the average number of customers and dividing the result by number of months in the relevant period.

Constant currency Customer Customer Base

The Group has presented certain financial information that is calculated by translating the results for the current financial year and prior financial years at a fixed ‘constant currency’ exchange rate, which is done to measure the organic performance of the Group. Defined as a unique subscriber with a unique mobile telephone number who has used any of Airtel’s services in the last 30 days. The total number of subscribers that have used any of our services (voice calls, SMS, data usage or Mobile Money transaction) in the last 30 days.

Data Average Revenue Per User (ARPU) Data Capacity Data Customer Base

Data ARPU is derived by dividing total data revenue during the relevant period by the average number of Data customers and dividing the result by the number of months in the relevant period. Total data capacity per day for the Region. The total number of subscribers who have consumed at least 1MB on the Group’s GPRS, 3G or 4G network in the last 30 days.

Data customer penetration Data Usage per Customer

The proportion of customers using Data services. Calculated by dividing the data customer base by the total customer base. Calculated by dividing the total MBs consumed on the Group’s network during the relevant period by the average data customer base over the same period and dividing the result by the number of months in the relevant period.

Diluted Earnings per share Earnings per share (EPS)

Diluted EPS is computed by adjusting, the profit for the year attributable to the shareholders and the weighted average number of shares considered for deriving basic EPS, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period. EPS is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.

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EBITDA An alternative performance measure (non-GAAP). Defined as operating profit before depreciation, amortisation,

CSR cost and exceptional items.

EBITDA Margin An alternative performance measure (non-GAAP). Calculated by dividing underlying EBITDA for the relevant period by underlying revenue for the relevant period.

EBIT Free Cash Flow

It is not a GAAP measure and is defined as EBITDA adjusted for depreciation and amortization. An alternative performance measure (non-GAAP). Free cash flow is defined as operating free cash flow less cash interest, cash tax and change in operating working capital.

Francophone Africa Interest Coverage Ratio

One of the Group’s segments called earlier `Rest of Africa`. EBITDA for the relevant period divided by interest on borrowing for the relevant period.

Lease Obligation

Lease obligation represents the present value of the future lease payment obligation for assets taken on finance lease.

Mobile Broadband Base stations

Base stations that carry either 3G and/or 4G capability across all technologies and spectrum bands.

Mobile Money active customers Mobile Money ARPU Mobile Money transaction value Mobile Money transaction value per customer per month

Total number of subscribers who have enacted any Mobile Money usage event in last 30 days. Mobile Money average revenue per user, which is derived by dividing total Mobile Money revenue during the relevant period by the average number of Mobile Money customers and dividing the result by the number of months in the relevant period. Any financial transaction performed on the Airtel Money platform. Calculated by dividing the total Mobile Money transaction value on the Group’s Mobile Money platform during the relevant period by the average number of Mobile Money customers and dividing the result by number of months in the relevant period.

Mobile service Network Towers/Sites

Mobile services are our core telecom services, mainly voice and data services, but also including revenue from tower operation services provided by the Group and excluding Airtel Money services. Physical network infrastructure comprising a base transmission system (BTS) which holds the radio transceivers (TRXs) that define a cell and coordinates the radio link protocols with the mobile device. It includes all ground-based, roof top and in-building solutions.

Net Debt An alternative performance measure (non-GAAP). Defined as the total of long-term borrowings, short term borrowings and lease liabilities, less cash and cash equivalents.

Net Debt to EBITDA (LTM)

It is an alternative performance measure (non-GAAP) and is computed by dividing Net Debt as at the end of the relevant period by EBITDA for preceding last 12 months (from the end of the relevant period). This is also referred to as leverage ratio.

Net Debt to EBITDA (Annualized)

It is an alternative performance measure (non-GAAP) and is computed by dividing net debt as at the end of the relevant period by EBITDA for the relevant period (annualized).

Net Revenue It is an alternative performance measure (non-GAAP) and is defined as total revenue adjusted for IUC (Interconnection Usage charges) charges, cost of goods sold and Airtel Money commission.

Net profit margin Operating company

It is computed by dividing Cash Profit from Operations before Derivative and Exchange Fluctuation by total revenue. Operating company is defined as business units providing telecommunication services and mobile money services across the Group’s footprint.

Operating Profit

A GAAP measure of profitability. Calculated as revenue less operating expenditure (including depreciation & amortisation and operating exceptional items).

Operating Free Cash flow

An alternative performance measure (non-GAAP). calculated by subtracting capital expenditure from underlying EBITDA.

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Profit / (Loss) after current tax expense Reported currency

It is an alternative performance measure (non-GAAP) and is defined as Profit / (Loss) before taxation adjusted for current tax expense. Our reported currency is US dollars. Accordingly, actual periodic exchange rates are used to translate the local currency financial statements of OPCOs into US dollars. Under reported currency the assets and liabilities are translated into US dollars at the exchange rates prevailing at the reporting date whereas the statements of profit and loss are translated into US dollars at monthly average exchange rates.

Return On Capital Employed (ROCE) Return on Equity (ROE)- Pre-Tax

For the full year ended, ROCE is computed by dividing the earnings before interest and tax for the period by

average (of opening and closing) capital employed. Capital employed used for ROCE is defined as sum of Total

Equity and Net Debt. For the quarterly computation, it is computed by dividing the earnings before interest and

tax for the preceding (last) 12 months from the end of the relevant period by average capital employed. Average

capital employed is calculated by considering average of quarterly average for the preceding (last) four quarters

from the end of the relevant period.

For the full year ended, it is computed by dividing profit before tax (including exceptional item) for the period by the closing Total Equity. For the quarterly computations, it is computed by dividing profit before tax (including exceptional items) for the preceding last 12 months from the end of the relevant period by the closing Total Equity for the relevant period.

Return on Equity (ROE)- Post-Tax

For the full year ended, it is computed by dividing net profit for the period by the closing Equity attributable to equity holders of parent. For the quarterly computations, it is computed by dividing net profit for the preceding last 12 months from the end of the relevant period by the closing Equity attributable to equity holders of parent.

Revenue per Site per month

Revenue per Site per month is computed by: dividing the total revenues, excluding sale of goods (if any) during the relevant period by the average sites; and dividing the result by the number of months in the relevant period.

Smartphone Smartphone Penetration

Smartphone is defined as a mobile phone with an interactive touch screen that allows the user to access the internet and additional data applications, in addition to the functionality of a basic phone for making voice calls and sending and receiving text messages. Calculated by dividing the number of smartphone devices in use by the total number of customers.

Total Employees Total on-roll employees as at the end of respective period.

Total MBs on Network Total MBs consumed (uploaded & downloaded) by customers on the Group’s GPRS, 3G and 4G network during the relevant period.

Voice Minutes on Network

The duration in minutes for which customers use the Group’s network for making and receiving voice calls. It is typically expressed over a period of one month. It includes all incoming and outgoing call minutes, including roaming calls.

Voice Minutes of Usage per Customer per month

Calculated by dividing the total number of voice minutes of usage on the Group’s network during the relevant period by the average number of customers and dividing the result by the number of months in the relevant period..

Abbreviations 2G

Second-Generation mobile Technology

3G

4G

ARPU

bn

CSR

EBITDA

EPS

Third-generation mobile technology

Fourth-generation mobile technology

Average revenue per user

Billion

Corporate Social Responsibility

Earnings before interest, tax, depreciation and amortisation

Earnings Per Share

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GAAP

GB

Group

Generally Accepted Accounting Principles

Gigabyte

The Airtel Africa plc, together with its subsidiary undertakings referred to as the ‘Group’

IAS

IFRS

KPIs

KYC

International Accounting Standards

International Financial Reporting Standards

Key performance indicators

Know Your Customer

LTM

Last twelve months

MB

MI

Megabyte

Minority Interest (Non-Controlling Interest)

Mn

Million

OPCO Operating company

pp

P2P

PPE

SMS

TB

UoM

Percentage points

Person to Person

Property, Plant and equipment

Short Messaging Service

Terabyte

Unit of measure

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Written correspondence to be sent to:

Airtel Africa Investor Relations

E-mail address: [email protected]

Website: https://airtel.africa/investors Tel: (+44) 20 7493 9315

mailto:[email protected]

https://airtel.africa/investors

Documents

Airtel Africa21.pdfThe information contained in this presentation in relation to Airtel Africa plc ("Airtel Africa") and its subsidiaries has been prepared solely for use at this presentation