MTN Group Limited Final audited resultsmtn-investor.com/reporting/prelim_2010/pdf/presentation.pdf · • Final regulation published 29 Oct 10, • First reduction Mar 10 and further

Final audited results f d d 31 D b 2010

MTN Group Limited

for year ended 31 December 2010

Agenda

S i d i l iStrategic and operational overview

Phuthuma Nhleko

Group President and CEO

Financial overview

N i P t lNazir Patel

Group Finance Director

Message from the MTN Group Chairman

Cyril Ramaphosa

Looking ahead

Sifiso Dabengwa

Group COO and CEO designate

Phuthuma Nhlekod d

Strategic and operational overview

Group President and CEO

MTN vision

To be the leader in telecommunications in emerging markets

Convergence & Leverage existing footprint & intellectual Consolidation &

operational evolution footprint & intellectual capacity diversification

Increased competitiveness

P t V l H b d Skill P t V l H b d Skill

Execution excellenceExecution excellence

Best practice Procurement synergies

Value proposition

Hub and cluster Diversification Skills

optimisation BrandBest practice Procurement synergies

Value proposition

Hub and cluster Diversification Skills

optimisation Brand

Execution excellenceExecution excellence

Medium term considerations- market opportunities market opportunities

• Africa seen as the last frontier of growth

Attractiveness and challenges• Africa seen as the last frontier of growth

• ME opportunities often focused on oil and property

• Resources remain important, but Africa is slowly diversifying, with over 60% of growth coming from non-traditional sectors – retail manufacturing financial services telecoms real coming from non traditional sectors retail, manufacturing, financial services, telecoms, real estate, tourism etc

• Geo-political risks (events in North Africa and the Middle East)

• Doing business in emerging markets requires a long-term commitment and a steady hand as

Interesting facts

Doing business in emerging markets requires a long term commitment and a steady hand as risks may appear overwhelming at times

• As most economies contracted during recession, Africa’s GDP expanded by 2% in 2009, while GDP dropped 4% in the US, 2.8% in the EU and 1.5% in Latin America

• Emerging markets out paced the developed markets with GDP growth of at least 6% d t l b l GDP th f b t 2 5% l di th “ h d i ”compared to global GDP growth of about 2.5% excluding the “shadow economies”

• Urbanisation: 40% of Africans live in the cities (67% or 1 billion by 2050, creating economies of conglomeration. 52 cities in Africa have over 1 million people, and growing

• Africa entering a ‘take off’ phase due largely to a positive mix of socio political and economic • Africa entering a ‘take-off’ phase, due largely to a positive mix of socio-political and economic forces (Democracy, fiscal discipline)

• FDI in Africa has increased from USD15 billion to USD 80 billion in 8 years

Group highlights

Group subscribersU 22 0% t

EBITDA marginU 2 9% i t t

Approximate FCF U 108% tUp 22,0% to

141,6 millionUp 2,9% points to

44,0%Up 108% to

ZAR 31,0 billion

Adjusted HEPSUp 20,5% to

Final dividendper share of

Net cashof

909,1 centsp349 cents ZAR 905 million

Dividend payout ratio increased to 55%

Impact on financial framework

Cost efficienciesContinued organic Capex spend Cost efficienciesgrowth “peaked” Cost efficiencies

Final dividend

per share of349 cents

Final dividend

per share of349 cents

Shareholdert 349 cents 349 cents returns

OpportunisticM&A

Increased cash generation

M&A

Revenue growth

127.3 • Underpinned by subscriber growth

• Negatively impacted by strong rand

Revenue growth ZAR (billion)

111.9

114.7

Negatively impacted by strong rand

• Regulation of termination rates in SA and Nigeria resulted in a decline in revenue

Rev (constant currency

Rev (reported)

• Significant increase in data revenue, albeit off a low base

2,5%

14%

2009 2010

Rev (reported)

Proportionate subscribers Total subscribers

Dec-09 Dec-10

26% 26%

88.5 106.9

20,8%

(million) (million)

116.0 141.6

32%32% 22%

47%

26%

47%

,

46%45%

22%23%

Dec-09 Dec-10

27% 27%

Dec-09 Dec-10

SEA WECA MENA

22%23%

Key revenue drivers

3 638 25%4 000

• Introduction of new commercial and innovation function to drive data products and services

Data and SMS revenueZAR (billion)

3 638

2 490

1 633

19%

5%

20%

11%15%

20%

25%

2 000

2 500

3 000

3 500

4 000 services

• Distribution of data devices (smartphones and other related products)

538109 178 297

1 009

288 447

5% 7%

0%

5%

10%

0

500

1 000

1 500

South Nigeria Ghana Iran Syria

• Data opportunity (other than SMS) still immature outside of SA

• Investments and upgrades of network and IT i f t t i l di 3G d WIMAXSouth

AfricaNigeria Ghana Iran

(49%)Syria

Data ZAR '000 SMS ZAR '000

Data (incl SMS) as % of rev

infrastructure including 3G and WIMAX

• Investments in undersea cables implemented – EASSY (Aug 10), EIG (partly, Feb 10)

Mobile money customers• Mobile money

• 4,3 million customers (Dec 10) 120231 16

Mobile money customers(‘000)

• Launched in 11 countries to date1 403

1 838

691

South Africa Uganda Ghana Cote d' Ivoire Rwanda Benin

EBITDA and key drivers

• Cost containment initiatives on opex and staff costs

56.760

EBITDA growth ZAR (billion)

• Decreased selling, distribution and marketing costs

• Decrease in interconnect cost

46.1 50.5

30

40

50

23%

• Supply chain management

• Increased centralisation of procurement activities and rationalisation of suppliers10

20

30

EBITDA (constant currency

EBITDA (reported)

9,7%

• Infrastructure sharing

• Strategy pursue passive infrastructure sharing considering circumstances of each market

MTN Gh t h i j i t t ith

0

2009 2010

(reported)

EBITDA margin(%)

Dec-09 Dec-10

• MTN Ghana tower sharing joint venture with ATC established

• Structural framework for

• Shared services and outsourcing34 2%

44.0%

32.0%

41.1%

SEA

Group

• Shared services and outsourcing

• Standardisation and optimisation of systems and processes

55.5%

34.2%

53.5%WECA

33.6%26.9%MENA

Dec-09 Dec-10

Regulatory

Si d MOU i S i f th i f th BOT t f h ld li

Market regulation

Infrastructure sharing

• Signed MOU in Syria for the conversion of the BOT to a freehold licence• Discussions on terms ongoing• Expected terms : effective date Apr 11, 20 year GSM licence, upfront fee of ± SYP 25 bn and

between 25% and 27% rev share• Evidence of some regulatory preference for a tariff floor to ensure sustainability and long term Evidence of some regulatory preference for a tariff floor to ensure sustainability and long term

commercial success of the telecommunications sector

Mobile termination rates• South Africa

• Final regulation published 29 Oct 10, • First reduction Mar 10 and further cuts in Mar 11, Mar 12 and Mar 13 to 40c/minNi i

Mobile termination rates

SIM registration

• Nigeria• Implemented 31 Dec 09

• South Africa• 81% of prepaid and 71% of postpaid base RICA’d (Dec 10)• Deadline extended to 30 Jun 11Ni i 34% f b i d l i d di i ll l i SIMS

SIM registration

• Nigeria : 34% of base registered, regulator issued directive to sell partly active new SIMS from 14 Feb 11

• Ghana : 70% of base registered, existing SIMS to be registered by Jun 11

Other key developments

MTN A d

People/sustainability

• MTN Academy• Delivers focused learning services and solutions to meet key talent and critical

skills needs• Reached over 25 000 employees over 3 years (classroom and e-learning)• Reached over 25 000 employees over 3 years (classroom and e-learning)• Effective talent retention strategies incl. job rotation and special assignment

projects • Greening operations g p

• Energy efficiency and environmentally-friendly energy investments to reduce opex, carbon tax risk and greenhouse gas emissions, incl. e-waste management

• Carbon footprint initiatives to identify regulatory, physical and other risks and

kh l

opportunities posed to MTN by climate change and improve business efficiencies • Social and economic development projects through MTN Foundations across ops

• Achieved MTN SA’s objectives in creating a broad-based empowerment transaction• Holds 4% of MTN Group

BEE – MTN Zakhele

• 80,900,000 MTN Zakhele shares offered to members of the Black public• Allocated shares to 120,349 individuals and 2,203 groups

Operational framework

Quality service

AL

IN

Efficient distribution

Brand preferenceN

AN

T

Customer ExperienceE

RE

R

pe e ce

SegmentationProducts and value added

servicesXT

NA

Experienced people

services

EX

AL

people

South Africaoperational highlightsoperational highlights

Launched Jun 1994 Market share 36% Population 50.2m Market sizing 63m (2015) Penetration 105% Shareholding 100%

Subscribers • Subs growth driven by prepaid segment

• MTN Zone Mahala4Life

• Prepaid retail data promo’s

Subscribers(’000)

14,79917,169 16,067

18,842

• Marginal postpaid growth

• Growth in hybrid subs; +57%

• Decrease classic subs; –5%

12 30614 415 13 044

15 477

;

• Stabilised network and billing systems

• Optimised branded distribution footprint

• Customer experience

2 493 2 754 3 023 3,365

Dec-07 Dec-08 Dec-09 Dec-10

PrepaidPostpaid

Net additions2 775 • Customer experience

• Strategic locations

• Brand preference improvement1 198 1 579

1740

(’000)2,144

2,3702,775

• FIFA 2010 Soccer World Cup

• Decreased churn946 791

62

1,035

-1 164


H2 H1

-1,102

South Africa- operational highlights

• Increased prepaid ARPU

• Larger % of rev generating subs in reported

operational highlights

ARPUZAR

g g g pbase

• Increased data revenue

• Declining postpaid ARPU

396 403365

329

• Lower out-of-bundle usage

• Growth in hybrid and telemetry base

• Initial impact of MTR cut

149 148 145 152

112

Postpaid

Blended • Initial impact of MTR cut

• Revenue and cost decline

• Increased on-net traffic positive for margin

92 97 100 112


Prepaid

A t t l MOU Avg. total MOU comprises both incoming andoutgoing minutes

106 102 100 107

Outgoing MOU 65 64 64 71

South Africa- infrastructure and data highlights

• 369 2G and 284 3G BTS’s added

• 49% 3G population coverage

infrastructure and data highlights

CapexZAR (million) 6,034

1 549

3 096

3 034

2 894

p p g

• Expansion and modernisation of 3G and data core network for increased capacity

• Migration of various voice interfaces to IP 2,843

4,8683,908

1 294 1 7723 000

1 014

1 549


H2 H1

gbased for increased bandwidth

• Fibre deployment

• Ongoing deployment of national long distance, behind schedule

• Continued high data growth

• 9.2m packet data users (49% of base)Data revenue

Capex as % of revenue 10.1 15.0 18.2 11.0

2 444

3 209

2,7563,596

4,496

6,128 • 1.6m Smartphones

• 946k modems (incl modules and USB dongles)

• Data product drive

ZAR (million)

1 221 1 696 2 0522 919

1 5351 900

2 444

Dec 07 Dec 08 Dec 09 Dec 10H2 H1

2,756 p

• Business Solutions remains challenging

• Rev up 11%

• Maintained margin Dec-07 Dec-08 Dec-09 Dec-10 • Maintained margin

• 40% cut in fixed-line data tariffsAs % of SA revenue (excl. Handsets,

incl. SMS)11.0 12.4 14.8 19.0

Nigeria- operational highlights

Launched Aug 2001 Market share 52% Population 152m Market sizing 117m (2015) Penetration 49% Shareholding 76%*

operational highlights

Subscribers (‘000)

23 077

30 827

38,669• Increased market share

• Attractive segmented value propositions

• Quality network

Subscribers ( 000)/ARPU ($)

16 511

MTN Subscribers ('000)ARPU (USD)

• Effective churn management

• Aggressive competition increasing in Q4

• Quality service

17 16 12 11

Dec-07 Dec-08 Dec-09 Dec-10 • Quality service

• Additional call centres set up

• Wide and efficient distribution frameworkNet additions

Outgoing MOU 52 55 53 48

3 4893 612

7,842

6,566

7,750

• Improved brand perception

• LC ARPU declined 10%

• Increased on-net traffic

(’000)

4 261 4,2302 475

4 512

3 489

4,230


• Stable effective tariffs

• 25% decrease in local currency interconnect tl ff t b hi h t t ffi

1 755 2 054


H2 H1

revenue, partly offset by higher on-net traffic

*Legal

Nigeria- infrastructure and data highlights

• Rollout gained momentum in H2

• Maintained quality and capacity on networks


CapexZAR (million)

10 222q y p y

• 4,800 BTS upgraded to increase capacity

• 480 3G BTS’s rolled out

• Transmission expansion4,789

4 519

10,222

5,668

9,610

4,700 • Transmission expansion

• 696 km of backbone fibre ring complete (Maiduguri-Yola-Gombe)

• National fibre expand project (phase 1)

1 8103 942

5 703

2 532

2 979 2 168

Dec-07 Dec-08 Dec-09 Dec-10H2 H1


National fibre expand project (phase 1), linking 71 high capacity BTS’s to fibre and integrating 66 sites

• Further rollout of WIMAX (total 5 states)BTS Rollout• Data as % of rev 5%

• 65% SMS revenue

• Segmented data bundles

*1,984

1,560

1,220

758639

802

726

1 332

785

1,220

146

758494 652

Dec-07 Dec-08 Dec-09 Dec-10H2 H1

*Including 3G

Ghana- operational highlightsoperational highlights

Launched Nov 1996 Market share 53% Population 25m Market sizing 20m (2015) Penetration 67% Shareholding 98%

Subscribers (‘000) • Subscribers increased 9% despite aggressive competition

• Introduction of new price plans 6 428

8 0018,721


• Revised MTN Zone offer

• Loyalty programs

• Negative net additions in H2 due to

4 016


14 12 8 7

Negative net additions in H2 due to SIM registration

• Quality of networks maintained

• Effective distribution

Outgoing MOU 104 119 105 114


Net additions • Effective distribution

• Stable LC ARPU

• Marginal decrease in market share d d

1 431

Net additions(’000) 2,412

1,5731,431 reduced

• Increased off-net traffic to due on-net price reductions

807 981 791 22

624 782720

, 3

• Stable effective tariffs807 791 722

-2Dec-07 Dec-08 Dec-09 Dec-10

H2 H1

Ghana- infrastructure and data highlights

• H2 rollout gained momentum

• Switch centre and fibre rollout


CapexZAR (million)

3,092

2,586

• Maintained network quality

• 77 3G BTS’s added

• Data usage continues gaining momentum938

1 411

1 688

1,239

1,854

• Data usage continues gaining momentum

• 1.8m Mobile Money subs (Dec 10)

• Data as a % of revenue 7%262

8401 175 1 404977


H2 H1

• 72% SMS revenue

BTS Rollout


940

221 703

729718 704

328483

289

390221

440703

328 289 237


H2 H1

Iran- operational highlightsoperational highlights

Launched Aug 2006 Market share 44% Population 73m Market sizing 81m (2015) Penetration 92% Shareholding 49%

Subscribers (‘000) • Solid 28% increase in subscribers

• Segmented tariff plans

• Enhanced seasonal promo’s16,039

23,260

29 743


• Continued focus on wider electronic distribution channels

• Efficient and improved brand awareness

6,006

,

D 07 D 08 D 09 D 10

MTN Subscribers ('000)

ARPU (USD) 10 9 8 8

campaigns

• 3% increase in LC ARPU

• Increased usage from improved capacity and i k


Net additions

Outgoing MOU 69* 60* 58* 60

coverage in key areas


• Stable effective tariffs

(’000)

7,2214,446

10,033

6,483

• 3rd operator expected to launch in Q2 11

5 587

5,852

4 073 2 776

4,446 ,

4,023

1 8293 148 3 707


H2 H1

*Restated to exclude free minutes

Iran- infrastructure and data highlights

• Improved network quality and capacity in Tehran


Capex (49%)ZAR (million)

3,326

• Site rentals remain challenging in Esfahan

• Increased coverage

• 77% population coverage (up 4%) 2 142

2 282

1,559

2,743

1,661

• 20% geographic coverage (up 9%)

• 5772km of road coverage (total 16700km)

• Slow uptake of WIMAX

714 6011 044 896

845 765

D 07 D 08 D 09 D 10

H2 H1• Slow uptake of WIMAX

• Bandwidth and content limitations

• Promo’s launched in H2


BTS Rollout


• Data as a % of revenue 20%

• 89% SMS revenue2,043

1,642 1,529

894 833

1 250

556

1,284

748 696 793 728


H2 H1

Syria- operational highlightsoperational highlights

Launched Jun 2002 Market share 45% Population 22m Market sizing 12.7m (2015) Penetration 50% Shareholding 75%

Subscribers (‘000)• Net additions gained momentum in H2

• Effective sales and marketing

• Segmented value propositions4 2494 898


• Segmented value propositions

• Loyalty programs

• Improved brand perception

3 109 3 5394 249


20 19 18 16

• Churn management remains a priority

• 8% decline in LC ARPU

• Increased in on-net traffic


Net additions

Outgoing MOU 130 124 120 108

• Marginal decrease in effective tariff872(’000)

517

710649

355

164 699478

517

430

355266

11171


H2 H1

Syria- infrastructure and data highlights

• Enhanced efficiency and capacity of networks

• Re-engineered radio transmission incl


CapexZAR (million) 1,039

gfrequency plan to increase capacity

• Rollout affected by delayed resolution of BOT

• Limited 3G services730 362

410418

748

• Launch of data products

• Data as a % of revenue 11%

• 60% SMS revenue

247 309 386180

171 230


H2 H1

410

• 60% SMS revenueDec-07 Dec-08 Dec-09 Dec-10

BTS Rollout


504

596

415

22

193

444 283200

317

124 152221 215


H2 H1

Closing remarks

O i t f i k d ti

Current market conditions• Ongoing management of risks and precautionary measures

• Election update and local tensions

• Secession

• Sanctions

• Operational performance relatively unaffected

• EBITDA margin target of 45%

Some reflection…

• Capex investment strategy – timing and payoff

• Organic growth

• M&A

• People

Thanks and appreciation

Nazir PatelFinancial overview

Group Finance Director

Financial highlightsStrong free cash flow growth

• Strong underlying organic growth in key markets

g g

Group summary: 2008 - 2010(ZAR bn)

Reported’09-’10

Organic’09-’10

+3% +14%

• ZAR strength dampened reported results

• Higher EBITDA margin mainly due to Nigeria Iran and RSA

114.7111.9Rev+9%

+3%

due to Nigeria, Iran and RSA

• Strong free cash flow generated as EBITDA increased and capex reduced 64.2

65.8

102.5

OpEx +2% -7%

• Dividend payout ratio increased to 55%, dividend yield 4%**

19 543.2

59.3

C E

EBITDA50.546.1

+10% +23%

28.3 31.2

19.5

14 9

43.2

31.0 AFCF*

CapEx

14 9

-37% -30%

+108% +134%

2008

14.9

20102009

14.9

42% 41% 44% EBITDA marginC / R28% 28% 17% Capex / Rev

* EBITDA – Capex (approximates free cash flow)** Based on share price of ZAR 125.75

Financial overview

All i t t t b l d Z kh l l th i t t d

Zakhele


• All income statement numbers exclude Zakhele unless otherwise stated• Zakhele impact non-cash and in equity except for transaction costs

• Notional vendor finance – ZAR 1,382m Donation – ZAR 1,294m• ESOP – ZAR 171m Transaction costs – ZAR 126m

• Economic and trading conditions stabilised (but uncertain)• Increased competition in key markets resulting in tariff pressure

Trading conditions

Increased competition in key markets resulting in tariff pressure• Subscriber growth at reduced marginal ARPU’s• Strong data growth, declining access pricing

Foreign exchange rates• ZAR reported results negatively impacted by ZAR strength• Functional currency impact due to foreign currency bank balances

• Forex losses from Iran loans limited to EUR/USD FX exposure

Foreign exchange rates

• FX impact on capex, ZAR strength

Regulatory• MTR changes impacted revenue

• RSA – 1 Mar 10• Nigeria – 31 Dec 09

Key accounting considerations

Z bi h h ldi d d f 97 8% t 90 0% J 10

Change in ownership• Zambia shareholding reduced from 97.8% to 90.0% - Jun 10• Afghanistan shareholding reduced from 100% to 90.9% - Jun 10• Cyprus shareholding reduced from 51% to 50% - Nov 10

Put options net impact:• Nigeria

Put options

• Finance costs – ZAR 471m• Fair value adjustment – (ZAR 208m)• Forex loss – (ZAR 277m)• Non-controlling interests’ share of profits - (ZAR 230m)

• Afghanistan• Fair value adjustment– ZAR 36m• Non-controlling interests’ share of profits – (ZAR 42m)

• Group effective tax rate of 36.3% mainly due to: • Disallowed expenses – 2.3%

Taxation

• STC on Group dividends – 2.1%• Withholding tax – 2.5%• Education tax (Nigeria) – 1.3%

FX trends (average rate)ZAR strength severely impacted results

9 175 9 4779 830 9 872 10 103 10 253

ZAR Cedi Rial Naira ∆ ‘09 -‘10

ZAR strength severely impacted results

USD: Local currency

4%

Rial Naira ZAR Cedi

9 06 7 52 7 34

9 175 9 477

118 119

147 149 151 151-4%

-1%

7.62 8.13 9.06 8.32 7.52 7.34

0.99 1.06 1.38 1.42 1.43 1.44 -1%

+12%

Naira Cedi Rial

H1 - 08 YTD - 08 H1 - 09 YTD - 09 H1 - 10 YTD - 10

ZAR: Local currency Rial Naira Cedi

1 198 1 1521 091

1 1951 343 1 401

-17%

15.45 14.54 16.13 17.83 20.04 20.67

0 13 0 13 0.15 0.17 0.19 0.20 -18%

-16%

0.13 0.13

H1 - 08 YTD - 08 H1 - 09 YTD - 09 H1 - 10 YTD - 10

RevenueStrong organic growth impacted by strong ZAR

Revenue(ZAR bn)

Revenue breakdown(ZAR bn)

Strong organic growth impacted by strong ZAR

+14%

5.3

2.8

3.2 0.812.6127.33.3

54.6 58.7

114.7111.9102.5

+14%

-11%

114.7

111.9

56.4

LC ZARNIG 16% 1%RSA 8% 8%

46.156.057.3 IRA 42% 21%

GHA 14% 0%

• Revenue in key markets driven by strong subscriber growth

• Reported revenues adversely impacted by ZAR strength

2010FX2009 NIG RSA IRA GHA 2010CROther201020092008

H1H2 2010CR is at constant prior year FX rate

subscriber growth• Nigeria share of net adds above 60%• RSA growth driven by prepaid and data

revenue

strength• 2010 revenues at constant prior year FX rates

would be 14% higher than prior year

• Iran growth driven by higher subscribers, data and SMS

Data revenue (excl sms)High growth across operations

• Group data revenue grew by 48% from prior year

High growth across operations

Data revenue (ZAR bn)

% share of Group data

revenue

YOY growth rate

+48%• RSA contributed 58% of Group total

• Packet switched data users increased from 6.6m to 9.2m

Syria

Iran

Other6.2

0.30.20.4 6%

+100% 3%

NM 5%

+48%

+100%

• 3G handsets up to 3m includes 1.6m smartphones, data devices on network 946k

• Nigeria revenue increased by 25%. 150k dongles and 40k 3G handsets sold in 2010

Business Solutions

Nigeria

Syria

1.2

0.5

4.2*

NM 5%

+33% 20%

+25% 8%

dongles and 40k 3G handsets sold in 2010

• Iran revenue growth due to uptake in GPRS services (10.6m users)

• Ghana revenue increased by 87% Bundled

Solutions

0 9

0.40.1

0.10.2

• Ghana revenue increased by 87%. Bundled offerings and reduction of data pricing led to increased data usage. 44k dongles and 166k 3G subscribers on network

RSA3.6

0.9

+44% 58%

• Syria revenue growth over 100% due to better value proposition for both pre- and postpaid market

2.5

20102009

*Business Solutions included in other revenue in 2009

InterconnectLarge reduction in MTR in Nigeria and RSA

• MTR changes in Nigeria and RSA

• RSA peak rate dropped from ZAR 1.25 to

Large reduction in MTR in Nigeria and RSA

Group interconnect(ZAR bn)

p ppZAR 0.89

• Nigeria peak rate dropped from 11.4 Naira to 8.2 Naira

2009 19.5

Cost Revenue

-14.1• Interconnect revenue decreased 13%

• RSA revenue decreased 10%

• Nigeria revenue decreased 25% in local currency5 4 Margin % currency

• Net interconnect margin increased from 28% to 32%

• Higher on net traffic offset some of the

5.4 Margin %

28%

• Higher on-net traffic offset some of the interconnect rate decline

• RSA prepaid on-net improved 7pts to 61%

• Nigeria total on-net increased by 4pts to 83%

2010 17.0-11.5

• Nigeria total on net increased by 4pts to 83%

5.5 Margin %

32%32%

EBITDAStrong organic EBITDA growth

EBITDA breakdown(ZAR bn)

EBITDA(ZAR bn)

6.256 72 2

Strong organic EBITDA growth

+23%

21 626.3

50.546.1

43.2 4.51.8

1.8 0.3

50.5

56.72.2

-13%

21.6

44.0%41.1%42.1%

23.646.1

LC ZARNIG +24% +7%RSA +17% +17%

2010

24.2

2009

24.5

2008

19.6

GHAIRARSA 2010FX2010CROtherNIG2009

RSA +17% +17%IRA +67% +41%GHA +13% -4%

EBITDA marginH1H2

• Strong organic EBITDA growth in key markets • Strong margin improvements (local currency) through focused cost control initiatives

2010CR is at constant prior year FX rate

• 2010 EBITDA at constant prior year FX rates would be 23% higher than prior year

through focused cost control initiatives

• Overall strong subscriber growth positively impacted revenue

• Improvements in on-net traffic patterns• Improvements in on-net traffic patterns

EBITDA marginMargin expansion in Nigeria, Iran and RSA

Nigeria• Nigeria EBITDA increased by 7% (LC 24%)

due to

EBITDA margin reconciliation(%)

Margin expansion in Nigeria, Iran and RSA

due to• Revenue growth on subscriber increase• Decrease in interconnect cost• Outsourced spares management resulted in

impairment reversal0.4 0.1

0.5

44.0%44.5%1.3+3.4pts

pa e t e e saRSA• RSA EBITDA growth due to

• Revenue increase, higher data and prepaid revenueN t i t t i d d t i d

1.1

0.7

41.1%

+2.9pts

• Net interconnect improved due to increased on-net call percentage

• Lower distribution costIran• Iran EBITDA growth due toIran EBITDA growth due to

• Revenue increase on strong subscriber growth

• Single vendor maintenance, marketing cost reduction

Gh

2010FX2010CROtherGHAIRARSANIG2009

2010CR is at constant prior year FX rate Ghana• Margin decreased by 1pt. Higher electricity

and utility cost. Increased maintenance to improve quality

Other


Other• Margin improvement in Afghanistan, Syria

and Zambia. Margin deterioration in Sudan, Cameroon and Benin

CapExCapex reduction in most operations

CapEx(ZAR bn)

CapEx breakdown(ZAR bn)

31.2

Capex reduction in most operations

15.719 5

31.2

28.3 4.8

2.1

1 4

31.2-30%

18.0

11.0

19.5

28%28%

1.4 0.9

2.3

19.5

21.8

2.0

LC ZARNIG -46% -54%

-7%

2010

17%

8.5

2009

15.5

2008

10.3

h

NIG -46% -54%RSA -35% -35%IRA -44% -48%GHA +31% +19%

• Nigeria reduced capex in 2010 on core network and site rollout

201020092008 2010FX2010CROtherGHAIRARSANIG2009

Capex/RevH1H2

• Positive spend below June authorised(ZAR 21 3bn) mainly due to


and site rollout• RSA reduced capex in 2010 on switch facilities,

BSS (2G and 3G) and transmission (MW, VSAT etc)

• I d d d it ll t id

(ZAR 21.3bn) mainly due to

• 2009 peak capex spend

• Positive FX impact, ZAR 2.3bn

• Iran reduced spend on site rollout, prepaid systems (IN) and core network

• Ghana completion of switch centres and greater fibre rollout in 2010

• Ongoing price book reductions

CapEx guidanceSignificant capex reduction vs prior yearSignificant capex reduction vs prior year

ZAR m2010

Authorised2011 2009

South and East Africa 5 421 5 676 8 645South and East Africa 5 421 5 676 8 645

South Africa 3 908 3 920 6 034

Other operations 1 513 1 756 2 611

West and Central Africa 9 919 10 723 16 518

Nigeria 4 700 7 784 10 222

Gh 3 092 1 221 2 586Ghana 3 092 1 221 2 586


Middle East and North Africa 3 402 4 871 5 785

Iran 1 661 1 317 3 326

Syria 410 1 066 748


Head office companies 724 861 300

Total 19 466 22 131 31 248

2009 USD:ZAR 8.302010 USD:ZAR 7.342011 USD:ZAR 7.42

EBITDA - CapExStrong free cash flow growth

EBITDA - CapEx(ZAR bn)

EBITDA - CapEx breakdown(ZAR bn)

31.0

Strong free cash flow growth

+134%

15.29.3

3.93.1 0.6

3.9

31.034.94.3

+134%

-26%

27%

15 8

14.9

5.9

14.9

5.614.9 LC ZAR

NIG +98% +73%RSA +89% +89%

2010

15.8

2009

13%9.0

2008

15%9.3

2010IRARSANIG2009 FX2010CROtherGHA

IRA NM NMGHA NM NM

% revenueH2 H1

• Strong organic operational growth • Nigeria EBITDA increase, capex decrease after high investments in 2009 realising significant


• Low capex spend, led to high adjusted free cash flow

high investments in 2009, realising significant growth in adjusted free cash flow

• RSA and Iran increased adjusted free cash flow on the back of higher margins and lower capex

• Ghana high capex spend in 2010

Interest and taxLower interest charge and increase in effective tax rate

• Functional currency loss reduced due to cession of Iran loans to MTN Dubai

Lower interest charge and increase in effective tax rate

Net finance cost(ZAR m)

2010 2009 2008

• Iran loans forex exposure limited to EUR / USD (included in net forex losses)

• Functional currency loss due to cash build up in holding company and effect of strong ZAR

Net interest paid 1 925 2 201 1 851

Net forex losses 924 1 106 1 249

Functional currency 1 223 3 204 (2 442) in holding company and effect of strong ZAR closing rate

• New put option in Afghanistan

Functional currency losses/(gains) 1 223 3 204 (2 442)

Put options 22 (701) 1 259

Total 4 094 5 810 1 917

• Deferred tax higher than prior year due toTax(ZAR bn)

Total 4 094 5 810 1 917

• Significant capex spend in prior year

• Functional currency impact on Iran loans in the prior year

• Year on year rate increased due to

1.0

11.3

1.5

11.4

39.9% • Year-on-year rate increased due to

• Additional STC on interim dividend

• Lower investment allowance in Nigeria

3.1 2.0

1.2

7.8

36.3%

8.6

1.033.4%

7 3 • Impact of reduced put option credit on pre-tax income

2010

7.8

2009

6.4

2008

7.3

Normal taxDef taxSTC & other WHTEff rate

AHEPS (excl Zakhele)Increased adjusted headline earnings per share

AHEPS(ZAR cents)

• Adjusted EPS (excl Zakhele) increased by 20.5% to 909.1 cents

Increased adjusted headline earnings per share

• Strong earnings conversion from operational performance despite FX and higher tax charge

909

470

754

390

904

495

439364409

ZAR cents 2010 2009 Variance %

201020092008

H1H2

Attributable earnings per share 938.4 791.4 18.6

(Gain)/loss on disposal of non-current assets (7.2) 3.8 -

(Reversal of)/impairment of PPE and other non-current assets (8.5) 8.0 -

Basic headline earnings per share 922.7 803.2 14.9

Reversal of the put options in respect of subsidiaries (13.6) (48.9) 72.2p p p ( ) ( 8 )

Adjusted headline earnings per share 909.1 754.3 20.5

Net debtGroup in net cash position

1200013%Repayment schedule(ZAR bn)

Group in net cash position

ZAR bn

9.6

8.1

7.0

5 3 5 36000

8000

10000

56%29%

2%

Gross debt 35,35.3 5.3

2000

4000

600029%

02011 2012 2013 2014 >2014

Holdco's and RSA NigeriaIran SyriaOther

9% • USD 2.3bn of non-recourse debt closed in

49%8%

11%

9%2010, partially drawn

• Unproductive debt of ZAR 5.6bn remains due to recap of Dubai

49%

23%

8%• Gross intercompany loans (excl holding

companies and SA) total ZAR 11.7bn

• Short term liabilities include ZAR 2.0bn from the capital market and ZAR 3 0bn due under

Cash 36,2

the capital market and ZAR 3.0bn due under the international syndication

• Syrian cash to be used in BOT conversionNet cash 0.9

Income statementZAR bnZAR bn

2010(excl Zakhele)

2010 (incl Zakhele)

2009 Variance %(excl Zakhele)

Revenue 114.7 114.7 111.9 +3

EBITDA 50.5 47.5 46.1 +10

EBITDA Margin % 44 0% 41 5% 41 1% +2 9ptsEBITDA Margin % 44.0% 41.5% 41.1% +2.9pts

Depreciation -13.2 -13.2 -11.8 -12

Amortisation -2.1 -2.1 -2.7 +22

Profit from operations 35.2 32.2 31.6 +11

Net finance cost -4.1 -4.1 -5.8 +29

Profit before tax 31.1 28.1 25.8 +21

Income tax expense -11.3 -11.3 -8.6 -31

Profit after tax 19.8 16.8 17.2 -15

Non-controlling interests -2.5 -2.5 -2.5 -

Attributable profit 17 3 14 3 14 7 +18Attributable profit 17.3 14.3 14.7 +18

Effective tax rate 36.3% 40.1% 33.4% -2.9pts

Statement of financial positionZAR bnZAR bn

2010 2009Non-current assets 99.7 110.2

lProperty, plant & equipment 63.4 67.5Goodwill and other intangible assets 31.6 37.5Other non-current assets 4.7 5.2Current assets 54.3 46.054.3 46.0Bank balances 35.9 24.0Restricted cash 0.3 0.7Other current assets 18.1 21.3

f di l l ifi d h ld f lAssets of disposal group classified as held for sale 0.8 -Total assets 154.8 156.2

Capital and reserves 74.0 72.9pNon-current liabilities 34.0 28.4Borrowings 24.9 21.1Deferred taxation and other non-current liabilities 9.1 7.3C t li biliti 6 8Current liabilities 46.8 54.9Non interest-bearing liabilities 36.3 39.0Interest-bearing liabilities 10.5 15.9Equity and liabilities 154.8 156.2q yNet debt -0.9 12.2

Net debt/EBITDA -0.02 0.26

USD:ZAR 6.61 7.39

Statement of cash flowsZAR bnZAR bn

2010 2009

Net cash generated from operations 50 5 49 6Net cash generated from operations 50.5 49.6

Net interest paid -1.5 -3.1

Taxation paid -8.0 -6.8

Dividends paid -6.3 -3.4

Cash inflows from operating activities 34.7 36.3

Acquisitions of PPE (excl software) 15 3 27 7Acquisitions of PPE (excl software) -15.3 -27.7

Acquisition of intangible assets -1.2 -2.0

Other investing activities 0.8 -3.5

Cash outflows from investing activities -15.7 -33.2

Cash outflows from financing activities -2.0 -0.9

Net movement in cash and cash equivalents 17.0 2.2

Cash and cash equivalents at the beginning of the year 22.6 25.6

Realised losses on bank accounts -3.7 -5.1

Cash and cash equivalents at the end of the year 35.9* 22.6*

* Incl bank balance ZAR35 947m (2009:ZAR23 999m) and bank-overdraft ZAR40m (2009:ZAR1 353m)

Cyril RamaphosaMessage from MTN Group chairman

Phuthuma Nhleko’s history with the MTN Group

Joined the board as non- executive chairman in Jun 2001 and as CEO of MTN Group Jul 2002

2000 2005 2010

Operations 5 11 21

Population 68m 344m 552mPopulation 68m 344m 552m

Market cap (ZAR bn) 58 (31 March 2000) 103 (31 Dec 2005) 253 (31 Dec 2010)

Revenue (ZAR bn) 6 29 115

EBITDA 2 12 50.5

Subs(m) 2,3 12 141,7

Welcome to Sifiso Dabengwa

History at MTN


• With MTN for 12 years

• Joined 1999 - MD MTN SA

• 2004 -2006 – CEO MTN Nigeria

Previous roles

2004 2006 CEO MTN Nigeria

• 2006 -2011 – COO MTN Group

• Executive Director at Eskom responsible for sales, customer service, electrification and distribution technology

Previous roles

• Consulting electrical engineer in the building services industry

• Technical management roles in the mining and railway sectors

• BSc Electrical EngineeringMBA d

Education

• MBA degree

Sifiso Dabengwad d

Looking ahead

Group COO and CEO designate

Looking forward

Strategic continuity

• In line with MTN’s previous announcements on the 15 July 2010 and 20 August 2010, the vision remains unchanged as does the strategy to balance increasing returns to shareholders with opportunistic M&A

• Leverage data opportunities and facilitate increased smart phone availability

Revenue opportunities

• Leverage data opportunities and facilitate increased smart phone availability• Segment focused products and services• Partnership model for development of value added services offerings

• Continued evaluation of individual markets for infrastructure sharing opportunities of

Optimising efficiencies

both passive infrastructure and fibre• Leverage structural framework formed for key projects

• Cost effective platforms for delivery of data and services • Ongoing standardisation of systems and processesOngoing standardisation of systems and processes• Increased centralisation of procurement activities and rationalisation of suppliers • Shared services and outsourcing

Looking forward (cont)

E t t k i t t d ll t l ff ti l t l d

Rollout• Execute network investments and rollout plans effectively to manage supply and

demand; network quality as a competitive edge

• Upgrade and optimise networks to meet increased demand in data services

• Continue to investigate options to improve sustainable returns to shareholders

Shareholder returns

• Dividend payout ratio policy of 55%

• Continued engagement with authorities ensure the social and commercial success of the telecommunications sector

Regulatory

Subscriber guidance 2011

Net additions guidance for 2011‘000000

South Africa 2,000

Nigeria 4,200

Ghana 390Ghana 390

Iran 3,350

Syria 600

R t 6 385Rest 6,385

16,925

Capex guidance - 2011

(ZAR mn) Authorised2011

5%

17%16% 2G

3G

South and East Africa 5 676

South Africa 3 920

Other operations 1 756

17%

19%

26%

Cable/fibreCore and otherIT & VASPhysical infrastructure


West and Central Africa 10 723

Nigeria 7 7845%

6%

3%5%

11%

Ghana 1 221


54%

9%4%

22% 48%

6%

27%

Middle East and North Africa 4 871

Iran 1 317

6%

8%17%

Syria 1 066


Head office companies 861

54%

10%

21%8%

4%49%

Head office companies 861

Total 22 1317% 22%

QuestionsThank you

Notice

The information contained in this document has not been verified independently. No representation p y por warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions and forward looking statements expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements.

Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise.

ff fThis presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

Annexures

Nigeria - FinancialStrong free cash flow growth achieved

• Significant growth in AFCF for Nigeria in 2010, following consistent cash flow generation

Strong free cash flow growth achieved

Nigeria YTD financial: 2008 - 2010(ZAR bn)

Reported’09-’10

Organic’09-’10

consistent cash flow generation in prior years

• EBITDA increased by 7.1% (LC 23.8%)

33.533.331.6 Rev +1% +16%

+5%+1%

• Revenue growth due to subscriber increase

• Cost optimisationprogrammes

13.6 12.4

EBITDA

OpEx

13.4+9% -6%

+7% +24% programmes

• Higher on-net traffic

• Reduced capex in 2010 on core network and site rollout

9.610.2

4.7 CapEx

EBITDA21.119.7

18.2

+7% +24%

-54% -46%

network and site rollout

AFCF16.4

9.58.6

+73% +98%

201020092008

58% 59% 63% EBITDA margin30% 31% 14%

gCapex / Rev

NigeriaNGN bn

Revenue

• Increase in subscribers

NGN bn

Revenue 2010


• Increase in dongles and 3G handsets

• Reduction in interconnect rate

2009 596.5

Airtime and subscription 92.5

Data 4.8 Reduction in interconnect rate

Direct network and operating costs

• Increase in BTS sites

Interconnect (12.6)

Other 10.6

2010 691.8

Selling and distribution

• FIFA promotional costs

% Growth 16.0%

EBITDA 2010

• Commission increase in line with revenue

EBITDA margin

2009 351.8

Revenue 95.3

Selling and distribution (12 5)• Improvement, on-net ratio up

Selling and distribution (12.5)

Interconnect and roaming costs 11.1

Other (9.9)

2010 435.82010 435.8

% Growth 23.9%

EBITDA margin 63.0%

RSA – Financial*Strong free cash flow growth achieved

• Consistent generation of AFCF in prior years, with 2010 increasing by 89%


RSA YTD financial: 2008 - 2010(ZAR bn)

Reported’09-’10

Organic’09-’10

increasing by 89%

• EBITDA increase

• Revenue increase, higher data and prepaid revenue

35.8

33.132 1

Rev +8% +8%+3%

+8%

data and prepaid revenue

• Interconnect rate reduction, increased on-net call percentage

23.6 OpEx

32.1

-4% -4%• Lower distribution cost due to

distribution through internal service providers

• Reduced capex in 2010 on EBITDA2 2

22.721.5

+17% +17% pswitch facilities, BSS (2G and 3G) and transmission (MW, VSAT etc)

4.9 6.03.9

AFCF

CapEx

EBITDA

8.3

12.2

4 4

10.4

5.7

10.6+17% +17%

-35% -35%

+89% +89%

Dec 2010Dec 2009

4.4

Dec 2008

33% 31% 34% EBITDA i33% 31% 34%15% 18% 11%

EBITDA marginCapex / Rev

* Excl Network Solutions and Business Solutions

RSA*ZAR bn

Revenue• Higher data and prepaid revenue

ZAR bn

Revenue 2010

• Higher postpaid revenue but lower ARPU• Out-of-bundle usage• Growth in hybrid and telemetry base

• Drop in interconnect rates

2009 33.1


Data 1.1 • Drop in interconnect ratesDirect network and operating costs• Higher rent and utilities• Higher maintenance

Interconnect (0.7)

Other 0.9

2010 35.8Handsets and accessories• Volume increase • Average cost: prepaid down, postpaid upSelling and distribution

% Growth 8.2%

EBITDA 2010Selling and distribution• Marketing higher due to FIFA• Lower distribution costEBITDA margin

2009 10.4

Revenue 2.7

Interconnect and roaming costs 0 9 • Higher on-net traffic offset some of the interconnect rate decline

Interconnect and roaming costs 0.9

Other (1.8)

2010 12.2

% Growth 17.3%% Growth 17.3%

EBITDA margin 34.1%

* Excl Network Solutions and Business Solutions

Iran - Financial*Strong free cash flow growth achieved

• Positive AFCF of ZAR 2.1bn

• Strong cash flow generation on


Iran YTD financial: 2008 - 2010(ZAR bn)

Reported’09-’10

Organic’09-’10

Strong cash flow generation on lower capex and higher revenue

• Revenue increase on strong subscriber growth and stable

9.2

7.6

Rev +21% +42%+55%

+21%

subscriber growth and stable ARPU’s

• 2043 BTS sites in 2009 v 1284 in 2010

O E

Rev share

2.27.6

2.1

4.9

1 3

-5% -21%

14% 34%• Expansion of prepaid system

(IN) and core network in 2009

1.7

3.2

CapEx

EBITDA

OpEx

3.8

2.7

2.8

2.1

1.3

+41% +67%

-14% -34%

-48% -44%

3.3AFCF2.1

-0.61 2

2.7

1.5

8% %

NM NM

201020092008

-1.2

30% 35% 41% EBITDA margin30% 35% 41%55% 43% 18%


* at 49% proportion

Iran*IRR bn

Revenue


IRR bn

Revenue 2010Increase in subscribers

• Stable ARPU

• Uptake of GPRS

S lli d di ib i

2009 9 075

Airtime and subscription 2 017

Data 146Selling and distribution

• Decreased marketing spend

• Commission in line with revenue

Interconnect 655

Other 991

2010 12 884

Direct network operating costs

• Single vendor maintenance

% Growth 42.0%

EBITDA 2010

2009 3 183

Revenue 3 809

Selling and distribution (26)Selling and distribution (26)

Interconnect and roaming costs (477)

Other (1 185)

2010 5 304

% Growth 66.6%

EBITDA margin 41.2% * at 49% proportion

Ghana - FinancialHigh 2010 infrastructure investment

• High capex spend in 2010

• Completion of the switch

High 2010 infrastructure investment

Ghana YTD financial: 2008 - 2010(ZAR bn)

Reported’09-’10

Organic’09-’10

pcentres

• High fibre rollout in 2010

• EBITDA increase by 13% in 5.7

5.76.0

Rev 0% +14%

-5% +0%

local currency

• Revenue growth following strong subscriber growth and success of MTN Zone3.1

OpEx3.2

5.7

3.2-3% -17%

• EBITDA margin decreased by 0.3pts

1 9

2.5 EBITDA2.62.8

-4% +13%

1.9

2.63.1 CapEx

0.0

0.9

+19% +31%

NM NMAFCF

2010

-0.6

20092008

46% 45% 44% EBITDA margin

NM NM

46% 45% 44%32% 46% 54%


GhanaGHC m

Revenue


GHC m


• 3G uptake


I d l i i d ili

2009 973

Airtime and subscription 104

Data 12• Increased electricity and utility cost

• Increased maintenance to improve quality

Interconnect and roaming

Interconnect 5

Other 16

2010 1 110

• On-net ratio decreased from 86% to 83%


• FIFA promotion

% Growth 14.1%

EBITDA 2010 • FIFA promotion

• Media inflation cost driven by competition

Cost of handsets and accessories

2009 436

Revenue 137

Selling and distribution (25) • Increased handset cost due to uptake of bundled offers (to drive data and 3G)

EBITDA margin

Selling and distribution (25)

Interconnect and roaming costs (24)

Other (30)

2010 494 • Down by 0.3pts due to higher direct network cost

2010 494

% Growth 13.3%

EBITDA margin 44.5%

SYRIA - FinancialStrong free cash flow growth achieved

• AFCF increased by 71% in 2010


Syria YTD financial: 2008 - 2010(ZAR bn)

Reported’09-’10

Organic’09-’10

• EBITDA growth

• Revenue growth due to increase in subscribers, smsand data bundles

6.87.0

6.5 Rev -3% +10%

+8% -3%

and data bundles

• Selling and distribution cost decrease on commission rate reduction

Rev share3.2

3.12.8 -3% -19%

• Capex down following high spend in 2009

OpEx2.02.51.9 +20% +11%

1.00.7

AFCF

CapEx

EBITDA

1.2

0.41.61.4

0 8

1.8 +14% +31%

-43% -37%

AFCF

20102009

0.7

2008

0.8

28% 20% 24% EBITDA margin

+71% +86%

28% 20% 24%15% 10% 6%


SyriaSYP bn

Revenue


SYP bn


• SMS and data bundles


R h

2009 39.3


Data 1.1• Revenue share

Interconnect and roaming

• Increased international calls (economic th)

Interconnect 0.3

Other (0.4)

2010 43.5growth)


• Commission rate decrease

% Growth 10.7%

EBITDA 2010

Handsets and accessories

• Increase in 3G handset sales2009 7.7

Revenue 4.2

Selling and distribution costs 0 2Selling and distribution costs 0.2

Interconnect and roaming (0.4)

Other (1.4)

2010 10.32010 10.3

% Growth 33.8%

EBITDA margin 23.7%

Net debtZAR mZAR m

Cash and Interest Net debt Net debt cash

equivalentsbearing

liabilities*Intercompany

eliminations/(cash)

2010/ (cash)

2009

South & East Africa (4 725) 14 550 (12 971) (3 146) (783)

RSA (3 786) 11 900 (11 726) (3 612) ( 1 852)RSA (3 786) 11 900 (11 726) (3 612) ( 1 852)

Other operations (939) 2 650 (1 245) 466 1 069

West & Central Africa (9 786) 13 543 (628) 3 129 8 973

Nigeria (8 480) 10 332 - 1 852 7 461

Ghana (168) - - (168) (469)

Other operations (1 138) 3 211 (628) 1 445 1 981Other operations (1 138) 3 211 (628) 1 445 1 981

Middle East & North Africa (7 965) 7 105 (5 928) (6 789) (5 069)

Iran (2 874) 3 760 (3 195) (2 309) (1 350)

Syria (3 791) - - (3 791) (3 331)

Other operations (1 300) 3 345 (2 733) (688) (388)

Head office companies (13 756) 22 648 (2 992) 5 901 9 055

Total (36 232) 57 846 (22 519) (905) 12 176

* Including long- and short-term borrowings and overdrafts

Exchange rates analysis

Average (EBITDA) Closing

2010 2009 % var 2010 2009 % var

Rand per USD 7.34 8.32 12 6.61 7.39 11

Nigerian Naira per USD 151.19 149.20 (1) 152.11 149.97 (1)

Nigerian Naira per ZAR 20.67 17.83 (16) 23.00 20.29 (13)

Iranian Rials per USD 10 252.62 9 871.69 (4) 10 356.00 10 004.00 (4)

Iranian Rials per ZAR 1 401.06 1 195.03 (17) 1 565.67 1 353.72 (16)

Ghanaian Cedis per ZAR 0.20 0.17 (18) 0.22 0.19 (16)

Syrian Pounds per ZAR 6.39 5.60 (14) 7.13 6.20 (15)

MTN – data sheet part 1

Group SEA WECA MENA Nigeria RSA Ghana Syria Iran

Market overview

Population (m) 552.3 111.1 248.8 192.4 153.5 50.3 24.5 21.8 73.2

Mobile penetration (%) 49 105 67 50 92

N b f t 79 21 40 18 5 4 5 2 3Number of operators 79 21 40 18 5 4 5 2 3

Operational data

Subscribers (‘000) 141 597 31 891 64 448 45 258 38 669 18 841 8 721 4 898 29 743

ARPU (USD) 11 21 7 16 8

Outgoing MOU (mins) 48 71 114 108 60

Market share (%) 52 35.8 53 45 44

Operational data (ZAR bn)

Revenue 114.7 42.5 49.9 22.0 33.5 35.8 5.7 6.8 9.2

EBITDA 50.5 14.6 27.7 7.4 21.1 12.2 2.5 1.6 3.8

EBITDA margin (%) 44.0 34.4 55.5 33.6 62.9 34.1 43.9 23.5 41.3

CAPEX 19 5 5 4 9 9 3 4 4 7 3 9 3 1 0 4 1 7CAPEX 19.5 5.4 9.9 3.4 4.7 3.9 3.1 0.4 1.7

Depreciation 13.2 3.7 7.2 2.3 5.0 2.7 0.8 0.5 1.0

Amortisation 2.1 0.5 0.8 0.7 0.1 0.3 0.2 0.3 0.1

MTN – data sheet part 2 (SEA)

Sub Total RSA Botswana Zambia Swaziland Uganda Rwanda

Shareholding (%) 100 53 90 30 97 55Shareholding (%) 100 53 90 30 97 55

Licence period (years) 20 15 15 10 20 13

Market overview

Population (m) 111.1 50.3 1.9 13.5 1.0 34.1 10.3

Mobile penetration (%) 105 136 37 71 34 33

M k t iti 2 1 2 1 1 1Market position 2 1 2 1 1 1

Number of operators 21 4 3 3 1 7 3

Market size (m) (2015) 105.7 62.9 2.8 9.9 0.9 21.9 7.3

Operational data

Subscribers (‘000) 31 891 18 841 1 414 1 900 726 6 463 2 547

ARPU (USD) 21 12 6 12 5 5

Market share (%) 35.8 54 38 100 56 75

MTN – data sheet part 3 (WECA)

Sub Total Nigeria Ghana Cameroon Congo B Benin G. Bissau G. Conakry Liberia Cote d’Ivoire

Sh h ldi (%) 76 98 70 100 75 100 75 60 65Shareholding (%) 76 98 70 100 75 100 75 60 65

Licence period (years) 15 15 15 15 10 10 18 15 20

Market overview

Population (m) 248.8 153.5 24.5 19.9 4.0 9.1 1.6 10.8 3.4 22.0

Mobile penetration (%) 49 67 40 85 52 48 36 40 64

Market position 1 1 1 1 1 1 1 1 1

Number of operators 40 5 5 3 4 5 3 5 5 5

Market size (m) (2015) 189.4 117.0 20.1 11.0 4.5 6.9 1.2 7.3 1.9 19.5

Operational data

Subscribers (‘000) 64 448 38 669 8 721 4 792 1 666 2 144 568 1 761 746 5 381( )

ARPU (USD) 11 7 8 10 9 8 5 10 7

Market share (%) 52 53 60 49 45 75 45 54 38

MTN – data sheet part 4 (MENA)

Sub Total Sudan Iran Afghanistan Cyprus Syria Yemen

Shareholding (%) 85 49 91 50 75 85Shareholding (%) 85 49 91 50 75 85

Licence period (years) 20 15 15 20 15(BOT) 15

Market overview

Population (m) 192.4 41.7 73.2 30.6 0.8 21.8 24.3

Mobile penetration (%) 39 92 39 109 50 48

Market position 2 2 1 2 2 1Market position 2 2 1 2 2 1

Number of operators 18 3 3 4 2 2 4

Market size (m) (2015) 165.3 34.6 82.0 19.7 1.2 12.7 15.1

Operational data

Subscribers (‘000) 45 258 3 475 29 743 4 045 241 4 898 2 856

ARPU (USD) 5 8 5 32 16 6

Market share (%) 21 44 34 27 45 40

Final audited results f d d 31 D b 2010

MTN Group Limited

for year ended 31 December 2010

Documents

MTN Group Limited Final audited resultsmtn-investor.com/reporting/prelim_2010/pdf/presentation.pdf · • Final regulation published 29 Oct 10, • First reduction Mar 10 and further