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Results presentation for the year ended 31 December 2014

MTN Group LimitedResults presentation for the year ended 31 December 2014

Agenda01 Operational reviewSifiso DabengwaGroup President and CEOGroup President and CEO

02 G fi i l i02 Group financial reviewBrett GoschenGroup CFOG oup C O

03 Looking ahead03 Looking aheadSifiso DabengwaGroup President and CEO

Operational review

Group highlightsSolid performance

7.5%to 223.4 million

33.2%to R27.3 billion

6.4%to R146.2 billion

Group subscribers Data revenueRevenue

20.3% t 1 245 t

8.9%1.5 ppto 1 245 cents

Total dividendto 1 536 centsHEPS*

to 44.8%EBITDA margin

Note: Results are presented based on operational performance (excluding hyperinflation and tower profits)

4

* Not adjusted for the impact of hyperinflation and tower profits

Note: Results are presented based on operational performance (excluding hyperinflation and tower profits)

5

2014 Operational highlights

− Total minutes on networks up 6.5 % YOY− Total data traffic up 85.8% YoY− 3G devices up 30.4% to 51.9m

− Data (incl SMS) contribution to group revenue 21.8% − 22.8% increase in data subscribers to 101.2m− 3 669 2G, 6 491 3G and 684 LTE sites added

− Rocket partnership to deliver range of e-commerce products & services- AIH launched 44 new operations across 23 markets- MEIH has 11 operations in the Middle East

− Range of digital services including video and music on demand

− Focus on SME, public sector and financial services customers− Leveraged MTN extensive infrastructure with 22 operations and 47 data centres

− Mobile Money subscribers increased 50.1% to 22.2m− Expanded distribution base and product range

Network traffic

Data

Digital

ICT

Financial services

− Nigeria tower transaction signed (tranche 1 completed); Rwanda & Zambia transaction completed − Centralised procurement in Dubai− Strengthening in country regional structures− Project Next! gaining traction with Ghana fully migrated

Operating model

South Africa

Significant turnaround in H2

South AfricaSignificant turnaround in H2

Launched Jun 1994 Market share 33.9% Population 54.0m Market size 2016 : 96m Penetration 154% Shareholding 100%

Subscriber growth− Net additions of 2.3m for FY14− Net additions in H2 of 2.7m versus the 430 000 net

disconnections recorded in H1

25 421 25 70027 993

Total subscribers ‘000

disconnections recorded in H1− Data subscribers up 20.1% to 17.1m with encouraging

traction in last quarter

Revenue

20 923 20 695 22 574

Prepaid− Revenue decline of 3.9% impacted by 36% decline in

interconnect revenue due to lower MTRs− MOU increased 29.3% YoY to 97 while ERM declined

31% to 59 cents

4 498 5 005 5 419

Dec 12 Dec 13 Dec 14

PrepaidPostpaid

R− Data revenue increased 7% impacted by lower pricing − Q4 on Q3 mobile data revenue growth of 42.3%

following the introduction of revised data propositions− Data revenue now accounts for 23.8% of total

42 285 40 482 38 922

Revenue ZAR (million)

revenue, up 2.6 pp

20 430 19 157 19 157

21 855 21 325 19 765

H2

7

* Not adjusted for BTS recovery Dec 12 Dec 13* Dec 14H1

Increased focus on data

South AfricaIncreased focus on data

Overall costs flat YoY− Increased focus on reducing distribution costs− Implementation of network managed services

Transmission cost decreased d e to increased 14 445

27 852 26 415 26 413

Expenses ZAR (million)

− Transmission cost decreased due to increased self provisioning

− Significant reduction in staff− Bad debt impairment of R616m versus

R289m in the prior year 13 407 12 775 12 775

14 445 13 640 13 638

H2R289m in the prior year

Focus on network quality and roll out of 3G and LTE − Data traffic up 57.2% YoY, voice traffic up 31.0% YoY

Dec 12 Dec 13* Dec 14

H2H1

C

34.1% 34.7% 32.1% EBITDA marginp , p

− 520 2G, 904 3G and 23 LTE sites added in 2014− In January and February 2015 added 337 3G and

169 LTE sites, 1 218 3G upgrades− Significant increase of capex in 2015 is focused on

6 4955 835 5 676

Capex ZAR (million)

Significant increase of capex in 2015 is focused on voice and data capacity and network quality

1 980 2 151 2 000

4 515 3 684 3 676

H2

8

* Not adjusted for BTS recovery

1 980 2 151 2 000

Dec 12 Dec 13 Dec 14H1

Nigeria

Challenging second half of the year

NigeriaChallenging second half of the year

Launched Aug 2001 Market share 49.02% Population 168.3 m Market size 2016: 133m Penetration 73% Shareholding 78.8%

Subscriber growth− Subscribers up 5.5% YoY and 1.5m added

in Q4− Performance negatively impacted by regulatory

47 44156 766 59 893

Total subscribers ‘000

Performance negatively impacted by regulatory environment• Ban on SIM sales in March 2014• Inability to make competitive offers in H1• Lack of price floor enforcement• Lack of price floor enforcement

− 30% differential in on-net/off-net tariffs implemented from October 2014

Revenue


Subscribers

R− Muted revenue growth of 3.7% impacted by lack of competitiveness and lower subscriber growth

− Data revenue increased 28.3% and contributed 18.6% of total revenues

753 578 793 614 824 806

Revenue NGN (million)

− Data traffic up 40.6% due to active focus to improve data usage

− Encouraging momentum from Mobile Money offering, Diamond Yellow 389 892 383 057 413 611

363 686 410 557 411 195

H2

10


Good progress on optimising operating model

NigeriaGood progress on optimising operating model

Good cost containment − Cost management across the board− Rent and utilities main driver of cost

Cost benefits from re ised commission str ct re and

313 904 312 473342 017

Expenses NGN (million)

− Cost benefits from revised commission structure and network managed services

− Naira depreciation could negatively impact costs in future

154 042 131 440 165 121

159 862 181 033176 896

H2Network performance − Good progress with network roll out: 1 367 2G and

2 365 co-located 3G sites integrated in the year− Revised capex plan during the year as traffic growth

154 042 131 440


H2H1

C

58.3% 58.2%* 58.5% EBITDA margin

reduced− Network managed services implemented in Q1− Transfer of passive infrastructure to tower company

in Q4 – tranche 1 13 733 14 298

Capex ZAR (million)

4 432 6 571

9 3017 727

5 186

8 375

H2

11

* Normalised EBITDA assumes no management fee recognised

4 432 6 5713 189


Double digit subscriber growth

Large opco cluster (LOC)**Double-digit subscriber growth

Adjustment of subscriber numbers in Cameroon − Impact of 1.6m subscribers

Total subscribers ‘000100 675 Sudan

8 951Syria5 861

2.6 million net additions in Iran − 3G and LTE licence secured

Strong performance in Ivory Coast and Uganda

Iran43 940

Ivory Coast8 016

Uganda10 396

Uganda− Continued momentum with Mobile Money

Improvements in net additions in Ghana − Supported by price adjustments in H2 N t dditi

Ghana13 852

Cameroon9 658

Supported by price adjustments in H2

4 678

10 936

7 221

Net additions ‘000

6 2583 569 5 066

4 678

2 6492 155

6 218

H2

12

** Including Iran joint venture

3 569


H2H1

Revenue growth supported by data

Large opco cluster** Revenue growth supported by data

Organic revenue up 11.4%− Improved performance from Ghana, Syria and Sudan − Voice traffic up 5% YoY, data traffic up 179.1% YoY

Organic revenue32 465 ZAR (million)

Syria

Sudan9%

Strong data growth− Iran data revenue increased 96.3% following award of

3G licence

Financial services gaining traction

Ghana29%

Cameroon

Uganda15%

Syria13%

Financial services gaining traction− 14.9m Mobile Money subscribers (Uganda, Ivory

Coast, Ghana and Cameroon)− Focus on increasing the active base and broadening

the offering and distribution base

Cameroon16%Ivory Coast

18%

the offering and distribution base

Revenue 2014 2013%

change

Iran* (IRR billion) (100%) 56 726 49 544 14.5Ghana (Cedi million) 1 993 1 753 13.7( )Cameroon (XAF million) 283 369 264 764 7.0Ivory Coast (CFA million) 293 631 279 520 5.0Uganda (UGX million) 1 267 585 1 186 143 6.9

13

* Excluding hyperinflation** Including Iran joint ventureNote: Organic refers to constant currency

Syria* (SYP million) 53 280 43 113 23.6Sudan* (SDG million) 1 430 1 233 16.0

Good cost containment

Large opco cluster**Good cost containment

Organic EBITDA up 11.1%− Stable EBITDA margins− Impacted by higher leasing costs in Cameroon and

Ivory Coast

Organic EBITDA11 684 ZAR (million)

Syria7%

Sudan9%

Ivory Coast

Cost-saving initiatives− Centralised procurement in Dubai− Streamlined distribution network and commissions

Ghana29%

Cameroon

Uganda16%

7%

− Project Next! gaining traction with Ghana fully migrated and roll out in Cameroon in 2015

Optimised infrastructure


19%

− Sale of towers in Ghana to deliver efficiency gainsEBITDA margin* (organic)

EBITDA margin (%)

% point change

Iran 42.8 (0.1)Ghana 36.7 (0.8)( )Cameroon 42.8 0.1Ivory Coast 38.6 (2.1)Uganda 39.5 3.7

14

* Excluding tower profit** Including Iran joint venture

Syria 18.9 1.2Sudan 33.8 1.8

Continued investment to support quality capacity and data growth

Large opco cluster**Continued investment to support quality, capacity and data growth

Data investment remains key− Expanded 3G coverage in Iran, Uganda, Cameroon

and Ivory Coast− Iran 3G licence and LTE licence issued in August and

Capex 5 863 ZAR (million)

Syria6%

Sudan 24%

Iran 3G licence and LTE licence issued in August and September respectively

− 1 309 2G and 2 682 3G sites added

Ghana24%

Cameroon

Uganda11%

6%

C


20%

5 0665 805 5 863

Capex ZAR (million)

1 4142 741 2 480

3 6523 064 3 383

H2

15

** Including Iran joint venture

1 414


Satisfactory performance

Small opco cluster (SOC) Satisfactory performance

Tough operating environment − Political turmoil, decline in oil price and Ebola

Organic revenue growth up 4.3% 5 355

6 435

Yemen

Afghanistan

Total subscribers ‘00034 835

− Strong growth in Zambia, Benin, Congo B and Cyprus

Strong focus on cost containment− Benefits from central procurement 3 820

4 932

5 355

Rwanda

Zambia

Yemen

− EBITDA margins up 2.1 pp to 36.1%

Focus on growing data and financial services− 5.8m Mobile Money subscribers in 8 countries 2 012

3 035

3 533

Congo B

Conakry

Benin

Optimising infrastructure− Sale of towers in Rwanda and Zambia

889

1 294

1 758

Swaziland

Liberia

Botswana

596

839

889

Bissau

South Sudan

Swaziland

16

336Cyprus

Group financial reviewreview

Group highlights

7% 21% 5 8 2 6

Revenue EBITDA EBITDA margin

Effectivetax rate

Reported

Hyperinflation

7%to R146 930m

21%to R73 191m

5.8ppto 49.8%

2.6ppto 26.2%

Hyperinflation and goodwill impairment impact

R776m R241m 0.1pp 0.4pp

Tower profit impact R7 430m 5.1pp 5.3pp

Operational 6%to R146 154m

10%to R65 520

1.5ppto 44.8%

2.0ppto 31.1%

18

Positive impact on reported results Negative impact on reported results

Note: Results from slide 19 to 25 are presented based on operational performance (excluding hyperinflation, goodwill impairment and tower profits)

Revenue and EBITDA performance supported by currency

Financial highlightsRevenue and EBITDA performance supported by currency

137 270146 154

Group summary ZAR (million)Revenue growth 6% YoY

− ZAR weakness resulted in a 3% positive impact on reported numbers (ave ZAR:USD R10.87 vs R9.65 PY)

− Nigeria impacted results positivelyRev 6% 3%

Reported’13 - ’14

Organic’13 - ’14

69 81777 808

80 634

121 867Nigeria impacted results positively (ave ZAR: naira 15.27 vs 16.46 PY)

− South Africa revenue declined YoY− Depreciation of cedi and Syrian pound impacted results

negatively

Opex 4% 2%

30 16425 242

69 817

52 05059 462

65 520

negatively

Opex up 4% YoY− Direct network costs up 16%− Selling, distribution and marketing expenses down 5%

EBITDA*

Capex

10%

16%

5%

18%

23 223 29 29840 278

28 827

2012 2013 2014

EBITDA up 10% YoY− Positive exchange rate impact of 5%− Group margin impacted positively by Nigeria and LOC

AFCF** 37% 29%

2012 2013 2014

42.7% 43.3% 44.8% EBITDA margin43.2% 44.0% 49.9% EBITDA margin (incl tower profit)

23 7% 22 0% 17 3% Capex / revenue

Capex down 16% YoY− Nigeria capex down 41%, reduced site rollout

19

* Tower profit excluded Dec 14: ZAR 7 430m (Dec 13: ZAR 968m, Dec 12: ZAR 587m)** EBITDA less capex (approximates free cash flow)

23.7% 22.0% 17.3% Capex / revenue

Strong performance from LOC

RevenueStrong performance from LOC

Outgoing revenue up 3%− Group subscribers up 8% YoY to 223.4m− South Africa down 6%, impacted by challenging

competitive environment

146 1544 520

141 63435850 +3%+3%

Revenue breakdown ZAR (million)

competitive environment− Nigerian revenue growth impacted by operational and

regulatory challenges

Incoming voice revenue down 3%

141 634358503 321

1 7891 561137 270

− Lower MTR’s in key markets, notably South Africa and Nigeria

− Incoming minutes up 9% YoY

Data revenue up 33%Revenue growth Organic % Reported %

FXHOE 20142014CRSOCLOCNIGRSA2013

Data revenue up 33%− Data users up 22.8% to 101.2m− Total data usage up 85.8% to 99.0PB* YoY− 3G devices up 30.4% to 51.9m

South Africa -4 -4Nigeria 4 12Ghana 14 -14Cameroon 7 19Ivory Coast 5 17

Device revenue up 5%− South Africa contributes 92% − Handsets sold: prepaid 6.5m, postpaid 1.2m

Ivory Coast 5 17Uganda 7 18Syria 26 7Sudan 16 8SOC 4 13

20

Iran 14 222014CR is at constant prior year FX rate LOC – Large opco clusterSOC – Small opco cluster

HOE – Head office companies and eliminations*PB - Petabyte

Continues to drive revenue performance

Revenue – dataContinues to drive revenue performance

Data revenue up 33%− Contributes 19% of total revenue

(22% incl SMS)− SMS volumes continue to decline SMS revenue 11 357 12 708

14 60911% 13% 14% 16% 18%20%

Data revenue ZAR (million)

SMS volumes continue to decline, SMS revenue down 16%

− South Africa and Nigeria contribute 71% of total data revenue

− Strong growth in LOC and SOC, H2 data revenue 944 1 437 1 733 2 830 3 692 4 3142 166 2 734 3 472 3 813 4 533 5 5143 502 3 835 3 942

4 7144 483

4 781

6 612 8 006 9 14711 357 12 708

Strong growth in LOC and SOC, H2 data revenue up 52% YoY

− South Africa Q4 mobile data revenue up 17% YoY

944 1 437 1 733H1-12 H2-12 H1-13 H2-13 H1-14 H2-14

Data growth Organic % Reported %

OtherNigeriaRSA % of Rev

South Africa 7 7Nigeria 28 38Ghana 123 68Cameroon 35 50Ivory Coast 34 47Ivory Coast 34 47Uganda 37 50Syria 108 78Sudan 136 127SOC 91 101

21

Iran 96 108

Strict cost control supports lower opex growth

OpexStrict cost control supports lower opex growth

77 80880 634

OpexZAR (million)Direct network operating costs up 16%

− Network expansion (3G), higher diesel and electricity costs

− Full impact of tower lease costs in Ivory Coast and

+4%

Reported’13 - ’14

% share of opex

18 299 21 305

77 808Full impact of tower lease costs in Ivory Coast and Cameroon; 2014 tower sales in Zambia and Rwanda

− Currency depreciation impacting USD-denominated SLAs

C t f h d t d th i

Direct network operating costs

Cost of handsets

16% 26%

13 816 13 590

10 744 11 926Costs of handsets and other accessories up 11%− Adoption of high-end smartphones, higher average

costs per handset and forex (FX) impact

Cost of handsets and other accessories

Interconnect and roaming

11%

2%

15%

17%

16 362 15 485

8 670 8 800Interconnect and roaming down 2%− Nigeria interconnect costs up 13%, FX impact of 8%− South Africa interconnect cost down 7% on MTR cuts

Employee benefits

Selling, distribution and marketing expenses

2%

5%

11%

19%

9 917 9 528

2013 2014

Selling, distribution and marketing down 5%− Nigeria commission down 13% - revised commission

structure implemented in 2013− Downward drive on commissions across the Group

expensesOther operating expenses 4% 12%

22

Encouraging expansion in Group margin

EBITDA marginEncouraging expansion in Group margin

Group EBITDA margin up 1.5pp to 44.8% YoYSouth Africa− Margin down 2.6 pp− Impacted by lower revenue primarily from lower MTRs

EBITDA margin reconciliation (%) 44.80.6

44.20.7

0.30 743 3

0.9pp

− Impacted by lower revenue, primarily from lower MTRs− Cost impacted by increase in provision for bad debts

Nigeria− Margin up 1.6 pp on a comparative basis− Rent and utilities up 17% YoY

0.10.50.743.3

− Rent and utilities up 17% YoY− Commission and distribution down 13% YoY

LOCIvory Coast and Cameroon

M i i t d b t l tEBITDA growth Organic % Reported %

2014FX2014CRHOE*SOCLOCNIG*RSA2013

− Margin impacted by tower lease costsGhana − Margin boosted by expiry of management fee agreementUganda− Margin higher supported by lower interconnect and fuel

South Africa -11 -11Nigeria - 8Ghana 11 -14Cameroon 8 20Ivory Coast 11Margin higher, supported by lower interconnect and fuel

costsSudan and Syria− Margin improvement supported by revenue growth

SOC

Ivory Coast - 11Uganda 17 29Syria 37 16Sudan 24 15SOC 11 20

23

SOC− Margin improvement in most operations Iran 14 22

* Adjusted for Nigeria management fee

Currency movements impacting forex

Finance costCurrency movements impacting forex

Net finance cost ZAR (million) 2014 2013 2012

Net interest paid 2 515 2 300 1 051

Net interest paid ZAR 2 515m

Forex loss ZAR 1 091m− Mauritius functional currency gains from intercompany

Net forex losses/(gains) 1 091 (1 066) 2 739

Total 3 606 1 234 3 790

current accounts and forward exchange contracts − USD receivables in holding companies act as a natural

hedge against the USD bond issue− Nigeria: USD borrowings, depreciation of naira

Net forex losses/(gains) ZAR (million) 2014 2013 2012

Mauritius (337) (2 266) 1 114

− Ghana: Depreciation of cedi− ZAR 144m in Dubai relates to a realised forex net loss

on dividend received

Nigeria 713 (82) (119)

Ghana 155 71 1

Dubai 249 127 (156)

Other 311 1 084 1 899

Total 1 091 (1 066) 2 739

24

Total 1 091 (1 066) 2 739

Taxation

13 780

Tax ZAR (million)

Group effective tax rate of 31.1%− Reported effective tax rate of 26.2%, impacted by

tower profit and hyperinflation +4%+12%

2 154 1 321

1 73311 828 12 261

13 780Withholding tax − 3.9% (prior year 3.1%): Increase in dividend income

upstreamed to MTN Mauritius

Deferred tax – credit balance

10 33212 880

2 256Deferred tax credit balance− MTN SA (ZAR 589m): Handsets adjustment

Current tax – increased balance− MTN Nigeria: Lower initial allowance for capex in

10 3328 684

g p2014, relative to 2013

− MTN SA: Mainly due to the handsets adjustment

-658 -833

2012 2013 2014

33.5% 29.1% 31.1% Eff tax rate%

25

Normal taxDef taxSTC & other WHT

Headline earnings per share

ZAR (cents) 2014 2013 Change %

Attributable earnings per share 1 752 1 460 201 536

Headline earnings per shareZAR (cents)

+19% share

Profit on disposal of non-current assets(including tower profits)

(358) (48) NM

Impairment/(reversal of8071 089

1 411

Impairment/(reversal of impairment) of goodwill, PPE and intangible assets

142 (1) NM

Basic headline earnings h 1 536 1 411 9

553

742

per share 1 536 1 411 9

536669 729

2012 2013 2014

H1 H2

26

Shareholder returns

25 341

Dividends and share buy-backsZAR (million)Dividends

− Interim dividend 445cps− Final dividend 800 cps

Total di idend 1 245 cps 20% gro th2 422

17 42919 182

− Total dividend 1 245 cps, 20% growth

Share buy-backs− H2 2011 repurchased 6.8m shares (ZAR 930m)− H1 2012 repurchased 15 6m shares (ZAR 2 1bn)

28%

9 362

12 302

14 694930

2 088

9 356

15 015

17 429H1 2012 repurchased 15.6m shares (ZAR 2.1bn)− H2 2014 repurchased 10.7m shares (ZAR 2.4bn)− Total repurchase of 1.8% of issued shares since 2011

5 145 5 979 6 880 8 2256 577

8 9409 3629 356

2 7795 145 5 979

2010 2011 2012 2013 2014

H1 H2 Share buy back

27

Income statement

ZAR (million) 2014 2013 Change %Revenue 146 930 137 270 7Other income 7 928 1 327 NMEBITDA 73 191 60 430 21Depreciation, amortisation and impairment of goodwill 23 546 19 278 -22Profit from operations 49 645 41 152 21N fi 3 668 1 234 NMNet finance cost 3 668 1 234 NMNet monetary gain 878 - NMShare of results from joint ventures and associates after tax 4 208 3 431 23Profit before tax 51 063 43 349 18Profit before tax 51 063 43 349 18Income tax expense 13 361 12 487 -7Profit after tax 37 702 30 862 22Non-controlling interests 5 623 4 111 -37Attributable profit 32 079 26 751 20EBITDA margin 49.8% 44.0% 5.8pp

Profit on sale of towers 7 430 968 NM

EBITDA margin % excl tower profit 44 8% 43 3% 1 5pp

28

EBITDA margin % excl tower profit 44.8% 43.3% 1.5pp

Effective tax rate 26.2% 28.8% -2.6pp

Statement of financial position

ZAR (million) 2014 2013Property, plant and equipment 87 546 92 903Intangible assets and goodwill 36 618 37 751Other non-current assets 39 054 22 429Cash and cash equivalents 43 098 39 600Other current assets 43 521 35 692N t t h ld f l 3 848 1 281Non-current assets held for sale 3 848 1 281Total assets 253 685 229 656Total equity 133 442 121 812Interest-bearing liabilities 53 279 46 025Interest bearing liabilities 53 279 46 025Other liabilities 66 964 61 819Total liabilities 120 243 107 844Total equity and liabilities 253 685 229 656Net debt 4 543 352

Net debt/EBITDA 0.06 0.01

29

Statement of cash flows

ZAR (million) 2014 2013 Change %Cash generated by operations 64 628 59 708 8Dividends paid to equity holders of the Company (20 527) (16 187) -27 y yDividends paid to non-controlling interests (4 289) (3 571) -20 Dividends received from joint ventures and associates 508 454 12Net interest paid (1 409) (2 195) 36T id (11 779) (11 184) 5Tax paid (11 779) (11 184) -5Cash generated from operating activities 27 132 27 025 -Acquisition of property, plant and equipment (19 562) (24 568) 20 Movement in investments and other investing activities (6 429) 4 733 NMMovement in investments and other investing activities (6 9) 33Cash used in investing activities (25 991) (19 835) -31Net cash from financing activities 2 639 6 264 -58Cash and cash equivalents at the beginning of the year 39 577 22 539 76 Exchange (losses)/gains on cash and cash equivalents (182) 3 584 NMNet monetary loss on cash and cash equivalents (103) - NMCash and cash equivalents at the end of the year 43 072 39 577 9

30

Looking ahead

32

Delivering on our strategy

Looking ahead

− Maintain absolute dividend growth− Continue with opportunistic share buy-backs− Continue to seek value accretive opportunities

− Capex focused on supporting data growth through 3G and LTE− Net promoter score a driver of customer experience− Value driven and segmented offerings

− Further commercialisation of tower infrastructure− Project Next! to be rolled out in Cameroon and Benin− Continue strengthening regional structures

− Financial Services and Mobile Money remains a priority− Roll out of digital offering supported by Rocket partnership− ICT partner of choice in Africa and Middle East

− Leadership to drive innovation to capitalise on identified opportunities− Agility and sharing best practice critical to ensure speedy go-to-market capability

Stakeholder value

Customer experience

Operating model

Sustainable growth

Innovation & best practice

Net subscriber additionsGuidance 2015Guidance 2015

‘000South Africa 2 400Nigeria 4 750Large opco cluster 7 100Iran 1 750Ghana 1 100C 1 500Cameroon 1 500Ivory Coast 800Sudan 750Syria -SyriaUganda 1 200Small opco cluster 3 250Total 17 500

33

CapexSouth Africa leads increaseSouth Africa leads increase

ZAR (million)Authorised

2015 Dec 2014 Dec 2013South Africa 10 000 5 676 5 835Nigeria 8 784 8 375 14 298Large opco cluster 5 320 5 863 5 805Ghana 1 254 1 400 1 690Cameroon 1 239 862 768I C 979 1 185 830Ivory Coast 979 1 185 830Uganda 959 667 553Syria* 442 357 892Sudan* 447 1 392 1 072Sudan 447 1 392 1 072Small opco cluster 3 734 3 888 3 809Head office companies 1 855 1 440 417Total 29 693 25 242 30 164Hyperinflation - 164 -Total reported 29 693 25 406 30 164Iran* 3 991 3 112 1 758

34

* Excluding hyperinflation

thank you

Appendix

Strong data uptake

IranStrong data uptake

Launched Oct 2006 Market share 46.4% Population 78.9m Market size 2016:101m Penetration 120% Shareholding 49%

Subscriber growth of 6.2%− Segmented offerings, churn management and

3G offerings

29 46641 980

49 54456 726

Revenue IRR (billion)(100%)

Revenue supported by data − Awarded 3G licence and LTE licence in August− Data revenue increased 96.3% and contributes

17.6% of revenue20 125 23 945 27 260

21 85525 599

29 466

H2− Data tariffs capped on 22 December will impact data

revenue growth • 0.5 IRR per KB (post-paid)• 0.75 IRR per KB (pre-paid)

20 125

Dec 12 Dec 13* Dec 14*

H2H1

44.3% 42.9% 42.8% EBITDA margin

Costs managed below inflation − Investment in network to support data− 2 151 3G sites and 621 LTE sites rolled out

3 112

Capex ZAR (million)(49%)

891704

1 313

2 2211 122

1 758

H2

37


418 445 891

Dec 12 Dec 13* Dec 14*H1

Tough operating environment

GhanaTough operating environment

Launched Nov 1996 Market share 50.5% Population 26.8m Market size 2016 31.8m Penetration 102% Shareholding 97.7%

Subscriber growth of 7.1%− Price adjustments in H2 supported improvements in

traffic and net additions1 552

1 7531 993

Revenue Cedi (million)

Revenue underpinned by data− Data revenue up 123% supported by 3G coverage and

reduced data prices− Strong performance from Mobile Money with 3.4m

734 845 961

818 9081 032

1 552

H2registered customers at year end

Cost optimisation mitigated impact of weaker currency− EBITDA margin flat boosted by management fee

734 845 961


H2H1

C37.0% 37.5% 36.7% EBITDA margin

EBITDA margin flat, boosted by management fee agreement expiring on 31 March 2014

Modernisation of network on track− Added 112 3G sites and 64 2G sites

1 091

1 6901 400

Capex ZAR (million)

685 597

818

1 005803

1 091

H2

38

273597


Solid performance

CameroonSolid performance

Launched Feb 2000 Market share 59.4% Population 22 m Market size 2016 18.5m Penetration 73% Shareholding 70%

Subscribers up 10.9%− Alignment of reporting resulted in restatement of 1.6m

subscribers on 31 December− Tough H2 impacted by launch of 3rd mobile operator 146 776

236 858264 764 283 369

Revenue CFA (million)

Tough H2 impacted by launch of 3rd mobile operator

Revenue− Revenue supported by segmented voice and data

offers to high-value customers and youth 116 138 125 025 136 593

120 720 139 739 146 776

H2− Data revenue up 35.4% YoY

Stringent cost controls− Margin flat despite higher lease rental costs

6 38


H2H1


Investment in network to support data− 3G licence expected in H1 2015

724 768862

Capex ZAR (million)

274528

373

450240 489

H2

39

274


Launch of 3G supports performance

Ivory CoastLaunch of 3G supports performance

Launched Apr 1996 Market share 39.2% Population 24.4m Market size 2016 20.6m Penetration 84% Shareholding 66.8%

Subscribers up 13.3% − Supported by below-the-line offers and value-added

services− Mobile Money subscribers up 74 3%

256 386 279 520 293 631

Revenue CFA (million)

Mobile Money subscribers up 74.3%

Revenue underpinned by growth in data and competitive tariffs− Data revenue up 33.7% supported by first 3G sites 127 677 137 806 144 830

128 709 141 714 148 801

H2coming on air

Tough cost controls mitigated impact of tower leasing costs and 2% tax on revenue

127 677


H2H1


Strong focus on 3G and fibre− Added 252 new 2G sites and 105 3G sites

903 830

1 185

Capex ZAR (million)

273546 584

630284

601830

H2

40

273


Leading the MTN financial services offering

UgandaLeading the MTN financial services offering

Launched Oct 1998 Market share 56.8% Population 38.5 m Market size 2016 20.3m Penetration 47% Shareholding 96%

Subscribers up 18.0% − Market share up 3.3 pp to 56.8% despite tough

competition− Launch of new operator 6 players in the market 649 118

1 007 3861 186 143 1 267 585

Revenue UGX (million)

Launch of new operator, 6 players in the market− Mobile Money subscribers up 40.9%

Revenue up 6.8%− Data revenue up 36.6%, supported by value-added 501 285 577 807 618 467

506 101608 336 649 118

H2p , pp yservices and enhanced marketing

− Mobile Money contributes to revenue growth, supported by wider payment product range and enhanced technology platform

501 285


H2H1

C

36.3% 35.8% 39.5% EBITDA margin

− Significant opportunities for 3G penetration

EBITDA margin increased 3.5 pp to 39.3% supported by strong cost controls

260435553

667

Capex ZAR (million)

Improved 3G network− Added 157 2G sites and 140 co-located 3G sites

230 253407

205300

260435

H2

41

230 253


Data gains momentum

SyriaData gains momentum

Launched Jun 2002 Market share 43.6% Population 16.5m Market size 2016 14.8m Penetration 82% Shareholding 75%

Marginal increase in subscribers in very challenging conditions

Revenue up 25.9%44 860 43 113

53 280

Revenue SYP (million)

− Supported by 108.3% increase in data revenue

EBITDA margin up 1.2 pp to 18.9% despite high inflation

23 229 19 546 26 436

21 631 23 56726 844

H2Awarded freehold licence until 30 December 2034

3 9 19 546

Dec 12 Dec 13 Dec 14*

H2H1


577

892

Capex ZAR (million)

239 295

338

597

319

577

357

H2

42


239 29538

Dec 12 Dec 13 Dec 14*H1

Satisfactory performance in tough conditions

SudanSatisfactory performance in tough conditions

Launched Sep 2005 Market share 35.9% Population 36.2m Market size 2016 30.3m Penetration 69% Shareholding 85%

Subscriber growth of 2.6%− Impacted by weak economy and subscriber

registration1 233

1 430

Revenue SDG (million)

Revenue growth supported by data− Data revenue increased 136.4%, contributes 15.4% of

revenue− Supported by data bundles

589 692

515644

7389291 233

H2EBITDA expansion of 1.8 pp despite inflation 414 589 692

Dec 12 Dec 13 Dec 14*

H2H1


1 336

1 072

1 392Capex ZAR (million)

434 481

1 211 638911

H2

43

* Excluding hyperinflation125

434 481

Dec 12 Dec 13 Dec 14*H1

Income statementHyperinflation and tower sales impactHyperinflation and tower sales impact

ZAR (million)Actual 2014

Hyper-inflation and

goodwill impairment

Tower profit*

Actual 2014 excl hyper-inflation and tower profit

Actual 2013

Hyper-inflation

Tower profit*

Actual 2013 excl hyper-inflation and tower profit

Adjustedchange %

Revenue 146 930 776 - 146 154 137 270 - - 137 270 6

Other income 7 928 - 7 430 498 1 327 - 968 359 39

EBITDA 73 191 241 7 430 65 520 60 430 - 968 59 462 10 Depreciation, amortisationand impairment of goodwill 23 546 2 191 - 21 355 19 278 - - 19 278 -11

P fit f ti 49 645 (1 950) 7 430 44 165 41 152 968 40 184 10Profit from operations 49 645 (1 950) 7 430 44 165 41 152 - 968 40 184 10

Net finance cost 3 668 62 - 3 606 1 234 - - 1 234 NM

Net monetary gain 878 878 - - - - - - NM

Equity income 4 208 529 - 3 679 3 431 318 - 3 113 18 q y

Profit before tax 51 063 (605) 7 430 44 238 43 349 318 968 42 063 5

Income tax expense 13 361 7 (426) 13 780 12 487 - 226 12 261 -12

Profit after tax 37 702 (612) 7 856 30 458 30 862 318 742 29 802 2

Non-controlling interests 5 623 161 1 586 3 876 4 111 - 193 3 918 1

Attributable profit 32 079 (773) 6 270 26 582 26 751 318 549 25 884 3

EBITDA margin 49.8% 44.8% 44.0% 43.3% 1.5pp

Effective tax rate 26 2% 31 1% 28 8% 29 1% 2 0pp

44

Effective tax rate 26.2% 31.1% 28.8% 29.1% 2.0pp

*Tower sale profits for the year include: Nigeria R7 329 million, Zambia R48 million, Rwanda R2 million, Ghana R20 million and release of deferred gain of R31 million (2013: Cameroon R335 million, Ivory Coast R574 million, Ghana R21 million and release of deferred gain of R38 million)

Background

HyperinflationBackground

Calculate the cumulative inflation rate for the three year period that Restate results in terms of the value

Balance sheetB l h t it lit b t t d

rate for the three-year period that precedes the beginning of the reporting period

Determine of money at the reporting balance sheet date

Apply

> 100% id d h i fl ti

% Sudan Syria Iran

Closing inflation rates 29 38 20

− Balance sheet items are split between monetary and non-monetary items

− Non-monetary assets are adjusted by the price index movement from acquisition date to the opening balance sheet date, with a corresponding entry in opening reserves (first application)

> 100% → economy considered hyperinflationary

Average inflation rates for 2014 16 32 11

3 year cumulative inflation rates 164 266 103

− Monetary and non-monetary items in the opening balance sheet are adjusted by the price index to the closing balance sheet date, with a corresponding entry to other comprehensive income

− No adjustment is made to the monetary items existing at the closing balance sheet datethe closing balance sheet date

− The current period movement in monetary items resulting from the entries above results in a monetary gain or loss

Income statement− Income statement items are grossed up for the price index

movement from the date of recognition to the end of the

− Inflation information is extracted from the International Monetary Fund (IMF)

− The IMF does not publish inflation rates for Syria, movement from the date of recognition to the end of the year

− Depreciation and amortisation on non-monetary items are based on the grossed up values of the assets

− Consolidation – Closing exchange rates are used to convert the income statement and not average rates

therefore the exchange rate movements have been used as a proxy

45

g

Impact

HyperinflationImpact

Sudan− Monetary gain higher due to higher debt

(monetary liabilities) 878

Impact on Group resultsZAR (million)

Syria 342

776

Syria− Monetary gain more neutral due to high

cash balances being offset by high dividends payable balance

342

749

Iran− Iran is accounted for as a joint venture

434130

241

− Iran is accounted for as a joint venture therefore only impacting equity income

− Increase in equity income of ZAR 529m

111 129

Revenue EBITDA Monetary gain

Syria Sudan

46

MTN Nigeria tower sale

− MTN Nigeria entered into an agreement in Q3 to dispose of its tower business

− MTN Nigeria will lease space on the towers for an initial period of 10 years

Impact ZAR (million) Tranche 1Cash consideration from disposal and share subscription 5 406

− The transaction is expected to reduce MTN Nigeria’s operating costs over time, drive network efficiencies and further expand MTN’s voice and data capacity

− The first tranche was successfully transferred on 24 D b 2014 h 4 154 ld

Contingent consideration 327

Fair value of retained interest in Towerco 4 309

Book value (2 713)24 December 2014, when 4 154 towers were sold

− Tranche 2 is expected to close in June 2015 (4 978 towers)

− MTN Group retained an interest which was fair valued i iti l iti

Book value ( 3)

Net gain from disposal and share subscription 7 329

Share of results of associate (64)on initial recognition

− The tax impact reflects the reversal of deferred tax related to the towers

Taxation 425

Profit after tax 7 690

Attributable to:

Equity holders of the Company 6 106

Non-controlling interests 1 584

47

g

Net debt

ZAR (million)Cash

equivalents*

Interest-bearing liabilities

Intercompany eliminations

Net interest-bearing

liabilities

Net debt/(cash)

2014

Net debt/(cash)

2013

South Africa 1 828 22 382 (22 382) - (1 828) (2 562)

Nigeria 17 855 24 675 - 24 675 6 820 11 121

Large opco cluster 8 302 5 360 (1 900) 3 460 (4 842) (5 061)

Ghana 876 646 - 646 (230) (705)

Cameroon 3 011 134 - 134 (2 877) (2 478)

Ivory Coast 438 746 - 746 308 448

Uganda 576 - - - (576) (444)

Syria 3 149 1 900 (1 900) - (3 149) (3 492) Syria 3 9 900 ( 900) (3 9) (3 9 )

Sudan 252 1 934 - 1 934 1 682 1 610

Small opco cluster 5 260 7 528 (4 230) 3 298 (1 962) (673)

Head office companies 15 491 39 252 (17 406) 21 846 6 355 (2 473)

Total 48 736 99 197 (45 918) 53 279 4 543 352

48

* Includes restricted cash and current investments

Nigeria and Head office

Net debt compositionNigeria and Head office

Nigeria borrowings(%)

Head office borrowings(%)

USD28%

USD40%

Ni i h H d ffi h

ZAR60%Naira

72%

Nigeria cash(%)

Head office cash(%)

ZAR24% USD

66%

USD20%

Euro

Net Debt compositionNaira USD ZAR Euro

Euro10%

66%Euro1%Naira

79%

ZAR (million)Naira

denominatedUSD

denominatedZAR

denominatedEuro

denominatedNigeria borrowings 17 697 6 978 - -Nigeria cash 14 166 3 606 - 83Head office borrowings - 8 686 13 160 -H d ffi h 10 295 3 610 1 586

49

Head office cash - 10 295 3 610 1 586

Revenue – data

5 514

Nigeria ZAR (million)

South Africa ZAR (million)

-5% +7%+20%+19%

+22%

3 0433 813

4 533

3 942

4 714 4 4834 781 +10%

1 754

2 319

3 0433 472

2 122

2 5802 767 3 084

481

1 057 1 423 1 747

2 238

505 551 416 326

584 823

595 586

245 5 7 349

404 334 410

404 353

452 307

8

H1-13 H2-13 H1-14 H2-14559 11

604 645 586 578127 115 110 141505 416 326

H1-13 H2-13 H1-14 H2-14

50

VAS Blackberry

Other

InternetAfrihost BS SA Mobile Money

Internet VAS BlackberryLeased line/Wimax Mobile MoneyOther

South AfricaRevenue adjustmentsRevenue adjustments

RevenueZAR (million) H1-14 H2-14 YTD14 H1-13 H2-13 YTD13

Change % YoY

Previously reported 19 157 19 765 38 922 19 232 20 475 39 707 -2

Change in accounting policy - - - 461 314 775

Restated 19 157 19 765 38 922 19 693 20 789 40 482 -4

EBITDAZAR (million) H1-14 H2-14 YTD14 H1-13 H2-13 YTD13

Change % YoY( )

Previously reported 6 382 6 127 12 509 6 503 6 922 13 425 -7

Change in accounting policy - - - 394 248 642

Restated 6 382 6 127 12 509 6 897 7 170 14 067 -11

EBITDA margin% H1-14 H2-14 YTD14 H1-13 H2-13 YTD13

Change pp YoY

Previously reported 33.3% 31.0% 32.1% 33.8% 33.8% 33.8% -1.7

Restated 33.3% 31.0% 32.1% 35.0% 34.5% 34.7% -2.6

51

Share of results of joint ventures and associates after tax

ZAR (million) 2014 2013 Change %Iran 4 113 3 115 32

− Operational 3 584 2 797 28

− Hyperinflation adjustment 529 318 66

Swaziland 97 62 56

Botswana 250 237 5

Digital Group (124) - NM

Tower companies (286) (77) NM

Others 158 94 70

Share of results of joint ventures and associates after tax 4 208 3 431 23Share of results of joint ventures and associates after tax 4 208 3 431 23

52

FX trendsClosing rateClosing rate

USD: Local currency 2014 2013 2012 Change % ’13-’14 Change % ’12-’13ZAR 11.55 10.52 8.47 10 24 Naira 184.00 160.12 156.40 -15 -2 Rial 27 043 24 777 24 596 -9 -1 Cedi 3.19 2.31 1.90 -38 -22 Cameroon XAF 542.07 475.68 496.97 -14 4 Ivory Coast CFA 542.07 475.68 496.97 -14 4 Uganda shilling 2 760.00 2 522.00 2 643.67 -9 5 Syrian pound 197.98 143.75 86.51 -38 -66 Sudanese pound 5.97 5.69 4.41 -5 -29

ZAR L lZAR: Local currencyNaira 15.93 15.23 18.47 -5 18 Rial 2 342 2 356 2 905 1 19 Cedi 0.28 0.22 0.22 -27 -C XAF 46 94 45 23 58 70 4 23Cameroon XAF 46.94 45.23 58.70 -4 23 Ivory Coast CFA 46.94 45.23 58.70 -4 23 Uganda shilling 239.02 239.81 312.26 - 23 Syrian pound 17.15 13.67 10.22 -25 -34 S d d 0 52 0 54 0 52 4 4

53

Sudanese pound 0.52 0.54 0.52 4 -4

FX trendsAverage rateAverage rate

USD: Local currency H1-14 H2-14 YTD-14 H1-13 H2-13 YTD-13Change

% ’13-’14ZAR 10.67 11.04 10.87 9.18 10.11 9.65 13Naira 162.89 167.17 164.94 158.62 160.59 159.59 -3Rial 25 609 26 109 25 843 24 651 24 797 24 724 -5Cedi 2.73 3.27 2.97 1.95 2.14 2.04 -46Cameroon XAF 478.14 512.52 495.53 501.77 488.16 496.22 -Ivory Coast CFA 478.11 514.44 496.36 501.08 487.41 494.60 -Uganda shilling 2 514.59 2 676.54 2 598.92 2 605.54 2 543.46 2 573.98 -1Syrian pound 156.25 186.42 170.21 101.76 164.83 130.72 -30Sudanese pound 5.69 5.80 5.75 4.41 5.22 4.82 19

ZAR L lZAR: Local currencyNaira 15.26 15.27 15.27 17.05 15.90 16.46 7Rial 2 410 2 367 2 390 2 663 2 455 2 554 6Cedi 0.26 0.30 0.27 0.21 0.21 0.21 -29C XAF 44 81 46 68 45 77 54 83 48 20 51 96 12Cameroon XAF 44.81 46.68 45.77 54.83 48.20 51.96 12Ivory Coast CFA 44.81 46.77 45.81 54.78 48.22 51.50 11Uganda shilling 235.70 243.96 240.06 279.33 251.57 264.66 9Syrian pound 14.66 16.27 15.43 11.02 16.31 13.57 -14S d d 0 53 0 53 0 53 0 48 0 52 0 50 6

54

Sudanese pound 0.53 0.53 0.53 0.48 0.52 0.50 -6

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