Welcome to the New World MTN Group Limited Reviewed interim - PowerPoint PPT Presentation

Welcome to the New World MTN Group Limited Reviewed interim results for the period ended 30 June 2013

Agenda 01 Strategic and operational overview Sifiso Dabengwa Group President and CEO 02 Financial overview Brett Goschen Group CFO 03 Looking ahead Sifiso Dabengwa Group President and CEO

Strategic and operational overview

MTN Strategy Creating and managing stakeholder value Creating value for our shareholders, employees and communities in a sustainable way in accordance with the values of MTN Driving Transforming our Creating a distinct sustainable growth operating model customer experience - Voice - Disciplined cost management - Network quality • Tariff pressure • Increased MOU - Distribution - Monetising non-core assets - Data - Customer analytics - Transforming supply chain • Increased contribution to revenue - Products and services • Focus on access, digital services and innovation - Customer service - ICT • Levering of infrastructure • Holistic offering • Focus on corporate and SME Innovation and best practice Operating under the principle of innovation in everything we do and looking for opportunities to share and apply best practice 4

Group highlights 6.5% 9.8% 36.9% to 201,5 million to R65,248 million to R9,054 million Group subscribers *Revenue Data revenue 6.4% 22.0% 15.3% to to R27,743 million to 654 cents 370 cents ** EBITDA HEPS Interim dividend * On a constant currency basis increased 1.9% ** On a constant currency basis EBITDA decreased 4.5%. EBITDA excludes tower profits 5

1H13 in review Challenging operating environment Revenue Revenue – Constant currency revenue growth of 1.9% ZAR (million) Other – Voice revenue impacted by competition and lower tariffs 16% 10% Data – Lower MTR’s impacting interconnect revenues Voice Data driving growth – Strong data growth of 36.9% 65 248 – Innovative products and device strategy 59 418 37% 7,094 – Increased focus on mobile financial services 6,296 68% 51 055 9,054 Focus on cost control 6,612 5,224 – Group EBITDA margin remained relatively stable 3,945 – Tower strategy will impact margins – Costs impacted by higher MTR costs and FX denominated expenses 49,100 46,510 – Focus on power, infrastructure sharing and staff costs 41,886 Capex rollout – Significant infrastructure investment to cater for increased traffic – 3G and fibre to enhance data access and connectivity Jun-11 Jun-12 Jun-13 Monestising non-core assets Establishment of Towerco’s in Cameroon and Ivory Coast 6

South Africa Challenging operating environment Launched Jun 1994 Market share 35.5% Population 51.7m Market sizing 80m (2014) Penetration 130% Shareholding 100% Prepaid Dissapointing subscriber growth Subscriber Postpaid (‘000/ARPU (ZAR)) - Slow response to aggressive price competition ARPU - Net disconnections impacted by dormancy management 25 421 25 001 30,000 22 033 25,000 - Positive response to competitive offers introduced in Q2 20,000 20,923 20,242 15,000 18,199 - Better performance in post-paid segment 10,000 5,000 4,759 3,834 4,498 Lower tariffs pressure revenues 0 Dec-11 Dec-12 Jun-13 − Mainly due to lower pre-paid voice revenue − Interconnect revenues declined 23.1% on lower MTR H2 Revenue* H1 ZAR (million) Data supporting revenue growth 42 285 39 664 − Efficient distribution and competitive value propositions 21,855 21,042 − 8.6m 3G devices including 6.5m smartphones 20 146 − Data traffic up strongly (62.8% YoY) 18,622 20,430 20,146 Dec-11 Dec-12 Jun-13 7 *Prior year numbers restated to include MTN Business

South Africa Evolving our infrastructure H2 EBITDA margin impacted by handset costs Expenses* H1 ZAR (million) − Handset costs up 8.4% impacted by weaker rand 27 852 26 000 − Net interconnect declined 27.6% YoY 14,445 13,785 13 642 − Increased focus on costs going forward 12,215 13,407 13,642 − More disciplined cost control required Dec-11 Dec-12 Jun-13 Investing for growth EBITDA margin 34.4 34.1 32.3 % − Capex increased 8.6% YoY Capex* − Added 213 2G and 527 3G sites H2 ZAR (million) 6 495 H1 − 197km of fibre rolled out 4 189 Clarity on LTE spectrum remains an issue 4,515 − Delay in planned auction of 2.6Hz and 3.5Hz spectrum 2,813 2 151 − LTE currently on re-farmed spectrum 1,376 1,980 2,151 − 239 LTE sites rolled out Dec-11 Dec-12 Jun-13 8 *Prior year numbers restated to include MTN Business

Nigeria Data driving growth Launched Aug 2001 Market share 49.5% Population 163m Market sizing 141.9m (2014) Penetration 69% Shareholding 78.8% Very strong subscriber growth Subscriber (‘000/ARPU (USD)) − Net connections of 7.8m in period 7,2 − 3.2m disconnected in July due to SIM registration 8,1 9,4 − Improved network quality and capacity − Improved churn and dormancy management 55,238 47,441 41,641 Regulatory engagement remains in focus − Engagement regarding dominant operator status Dec-11 Dec-12 Jun-13 − Promotional ban lifted in Apr 13 − Network suspended in 3 states in Northern region H2 Revenue − 2 states reconnected in July H1 NGN (million) Positive revenue trends continue 757 978 753 578 − Sequential revenue growth continues − Aggressive pricing following the lift of promotions ban 384,525 363,685 383 057 − Reduced off-net tariff offering − Data momentum continues 373,453 389,892 383,057 − Driven by innovative data products Dec-11 Dec-12 Jun-13 − 5.3m 3G devices on network to support data revenue 9

Nigeria Improved network quality and capacity H2 Strong cost focus continued Expenses H1 NGN (million) − Normalised EBITDA margin of 56.5% 313 904 289 908 − Well managed costs in inflationary environment 159,862 153,019 131 440 − Higher interconnect charges as off-net traffic grows 131,440 136,889 154,042 Improved network quality and capacity Dec-11 Dec-12 Jun-13 − Capex increased 48% YoY EBITDA margin 61.7 58.3 *65.7 % − Added 1 083 2G & 499 co-located 3G sites − Continued high traffic volumes, up 48.5% YoY H2 Capex H1 ZAR (million) 13 733 9,301 6 331 6 571 4,263 6,571 4,432 2,068 Dec-11 Dec-12 Jun-13 10 *includes reversal of management fees

Iran Good result in challenging environment Launched Oct 2006 Market share 47.0% Population 77m Market sizing 99.3m (2014) Penetration 115% Shareholding 49% H2 Solid subscriber growth Revenue IRR (billion) H1 − Subscribers up 3.8% 41 980 EBITDA 33 252 Margin − Penetration now exceeding 100% 21,855 23 945 17,563 Strong revenue and margin performance − Revenues up 19% YoY in LC 15,689 20,125 23,945 − Marginal decline in LC EBITDA margin to 44.2% Dec-11 Dec-12 Jun-13 − Data revenue (excl sms) increased 51.7% YoY − Wimax subscribers grow 32,5% H2 Capex H1 ZAR (million) Ongoing investment in network − Added 280 2G sites and rolled out 37km of fibre 1 168 1 122 − Difficult environment resulted in some project delays 704 755 445 Remain committed to sanction compliance 418 445 413 − No dividends or loans repatriated in period Dec-11 Dec-12 Jun-13 11

Ghana A strong performance Launched Nov 1996 Market share 50.5% Population 26.0m Market sizing 25.3m (2014) Penetration 96% Shareholding 98% H2 Sustained market share Revenue H1 Cedi (million) − Subscribers up 7.3% 1 552 EBITDA 1 277 Margin − Improved distribution structure 818 845 − Continued success of MTN Zone 677 Data continues to gain momentum 600 734 845 − Revenues increased 15.1% in LC Dec-11 Dec-12 Jun-13 − EBITDA margin* increased 1.3% points to 39.0% − Data revenues increased 54.8% YoY H2 Capex H1 ZAR (million) − 4.5m 3G devices on network 1091 Network quality and capacity key priority 851 − 43 2G and 77 3G sites built 685 818 714 − 212km of fibre rolled out 685 273 137 − Network expansion and modernisation completed Dec-11 Dec-12 Jun-13 12 * (excludes tower profit)

Cameroon An encouraging performance Launched Feb 2000 Market share 57.1% Population 21.2m Market sizing 17m (2014) Penetration 63% Shareholding 70% H2 Sustained market share Revenue CFA (million) H1 − Subscribers increased 4.3% 236 858 217 444 EBITDA Margin − Gross additions impacted by registration requirements 120,720 112,305 125 025 Data supporting revenue growth − Revenues increased 7.7% YoY in LC 105,139 116,138 125,025 − EBITDA margin declined 1.3 ppts to 45.8% Dec-11 Dec-12 Jun-13 − Impacted by leasing costs following tower transaction − Data revenues (excl SMS) increased 44.6% YoY H2 Capex H1 724 ZAR (million) Improvement in network rollout 528 − Capex increased 92.7% YoY 450 326 − Added 102 2G sites 528 234 − Tower transaction completed 274 92 Dec-11 Dec-12 Jun-13 13