Final audited results f for year ended 31 December 2010 d d 31 D - - PowerPoint PPT Presentation

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 i Strategic and operational overview Phuthuma Nhleko Group President and CEO Financial overview N i P t l Nazir Patel Group Finance Director Message from the MTN Group Chairman Cyril Ramaphosa Looking ahead Sifiso Dabengwa Group COO and CEO designate

Phuthuma Nhleko d 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 &

• perational evolution

footprint & intellectual capacity diversification

Increased competitiveness

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

Execution excellence Execution excellence

Best practice Procurement synergies Value proposition Hub and cluster Diversification Skills

• ptimisation

Brand Best practice Procurement synergies Value proposition Hub and cluster Diversification Skills

• ptimisation

Brand

Execution excellence Execution 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
• f 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 subscribers U 22 0% t EBITDA margin U 2 9% i t t Approximate FCF U 108% t Up 22,0% to 141,6 million Up 2,9% points to 44,0% Up 108% to ZAR 31,0 billion Adjusted HEPS Up 20,5% to Final dividend per share of Net cash

• f

909,1 cents p 349 cents ZAR 905 million

Dividend payout ratio increased to 55%

Impact on financial framework

Cost efficiencies Continued organic Capex spend Cost efficiencies growth “peaked” Cost efficiencies

Final dividend per share of 349 cents Final dividend per share of 349 cents

Shareholder t

349 cents 349 cents

returns Opportunistic M&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 revenue ZAR (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
• ther related products)

538 109 178 297 1 009 288 447

5% 7%

0% 5% 10% 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 WIMAX

South Africa Nigeria 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)

120 231 16

Mobile money customers (‘000)

• Launched in 11 countries to date

1 403 1 838 691 South Africa Uganda Ghana Cote d' Ivoire Rwanda Benin

EBITDA and key drivers

• Cost containment initiatives on opex and staff

costs

56.7

60

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 suppliers

10 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

2009 2010 (reported)

EBITDA margin (% )

Dec-09 Dec-10

• MTN Ghana tower sharing joint venture with

ATC established

• Structural framework for
• Shared services and outsourcing

34 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/ min

Ni 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 11

Ni 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
• pex, carbon tax risk and greenhouse gas emissions, incl. e-waste management
• Carbon footprint initiatives to identify regulatory, physical and other risks and

kh l

• pportunities 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

A L I N

Efficient distribution Brand preference

N A N T

Customer Experience

E R E R

pe e ce

Segmentation Products and value added services

X T N A

Experienced people services

E X A L

people

South Africa

• perational highlights
• perational 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)

14,799 17,169 16,067 18,842

• Marginal postpaid growth
• Growth in hybrid subs; + 57%
• Decrease classic subs; –5%

12 306 14 415 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 Prepaid Postpaid

Net additions

2 775

• Customer experience
• Strategic locations
• Brand preference improvement

1 198 1 579 1740

(’000)

2,144 2,370 2,775

• FIFA 2010 Soccer World Cup
• Decreased churn

946 791 62 1,035

• 1 164

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

• 1,102

South Africa

• operational highlights
• Increased prepaid ARPU
• Larger % of rev generating subs in reported
• perational highlights

ARPU ZAR g g g p base

• Increased data revenue
• Declining postpaid ARPU

396 403 365 329

• 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 Dec-07 Dec-08 Dec-09 Dec-10 Prepaid A t t l MOU

• Avg. total MOU

comprises both incoming and

• utgoing 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

Capex ZAR (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 4,868 3,908 1 294 1 772 3 000 1 014 1 549 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1

g based 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 2,756 3,596 4,496 6,128

• 1.6m Smartphones
• 946k modems (incl modules and USB dongles)
• Data product drive

ZAR (million)

1 221 1 696 2 052 2 919 1 535 1 900 2 444 Dec 07 Dec 08 Dec 09 Dec 10 H2 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 tariffs

As % 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% *

• perational 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 framework

Net additions

Outgoing MOU 52 55 53 48 3 489 3 612 7,842 6,566 7,750

• Improved brand perception
• LC ARPU declined 10%
• Increased on-net traffic

(’000)

4 261 4,230 2 475 4 512 3 489 4,230

• Increased on-net traffic
• Stable effective tariffs
• 25% decrease in local currency interconnect

tl ff t b hi h t t ffi

1 755 2 054 Dec-07 Dec-08 Dec-09 Dec-10 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

infrastructure and data highlights

Capex ZAR (million)

10 222

q y p y

• 4,800 BTS upgraded to increase capacity
• 480 3G BTS’s rolled out
• Transmission expansion

4,789 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)

1 810 3 942 5 703 2 532 2 979 2 168 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1 Capex as % of revenue 23.6 30.5 30.7 14.0

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 1,220 758 639 802 726 1 332 785 1,220 146 758 494 652 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1

* Including 3G

Ghana

• operational highlights
• perational 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 8 001 8,721

Subscribers ( 000) /ARPU ($)

• Revised MTN Zone offer
• Loyalty programs
• Negative net additions in H2 due to

4 016

MTN Subscribers ('000) ARPU (USD)

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

Net additions

• Effective distribution
• Stable LC ARPU
• Marginal decrease in market share

d d

1 431

Net additions (’000)

2,412 1,573 1,431

reduced

• Increased off-net traffic to due on-net

price reductions

807 981 791 22 624 782 720 , 3

• Stable effective tariffs

807 791 722

• 2

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

Ghana

• infrastructure and data highlights
• H2 rollout gained momentum
• Switch centre and fibre rollout

infrastructure and data highlights

Capex ZAR (million)

3,092 2,586

• Maintained network quality
• 77 3G BTS’s added
• Data usage continues gaining momentum

938 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%

262 840 1 175 1 404 977 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1

• 72% SMS revenue

BTS Rollout

Capex as % of revenue 32.8 30.7 45.6 54.8 940 221 703 729 718 704 328 483 289 390 221 440 703 328 289 237 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1

Iran

• operational highlights
• perational 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’s

16,039 23,260 29 743

Subscribers ( 000) /ARPU ($)

• 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

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

Net additions

Outgoing MOU 69* 60* 58* 60

coverage in key areas

• Increased on-net traffic
• Stable effective tariffs

(’000)

7,221 4,446 10,033 6,483

• 3rd operator expected to launch in Q2 11

5 587 5,852 4 073 2 776 4,446 , 4,023 1 829 3 148 3 707 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1

* Restated to exclude free minutes

Iran

• infrastructure and data highlights
• Improved network quality and capacity in

Tehran

infrastructure and data highlights

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

714 601 1 044 896 845 765 D 07 D 08 D 09 D 10 H2 H1

• Slow uptake of WIMAX
• Bandwidth and content limitations
• Promo’s launched in H2

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

BTS Rollout

Capex as % of revenue 116.3 55.6 43.6 18.1

• Data as a % of revenue 20%
• 89% SMS revenue

2,043 1,642 1,529 894 833 1 250 556 1,284 748 696 793 728 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1

Syria

• operational highlights
• perational 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 propositions

4 249 4 898

Subscribers ( 000) /ARPU ($)

• Segmented value propositions
• Loyalty programs
• Improved brand perception

3 109 3 539 4 249

MTN Subscribers ('000) ARPU (USD)

20 19 18 16

• Churn management remains a priority
• 8% decline in LC ARPU
• Increased in on-net traffic

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

Net additions

Outgoing MOU 130 124 120 108

• Marginal decrease in effective tariff

872

(’000)

517 710 649 355 164 699 478 517 430 355 266 11 171 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1

Syria

• infrastructure and data highlights
• Enhanced efficiency and capacity of networks
• Re-engineered radio transmission incl

infrastructure and data highlights

Capex ZAR (million)

1,039

g frequency plan to increase capacity

• Rollout affected by delayed resolution of BOT
• Limited 3G services

730 362 410 418 748

• Launch of data products
• Data as a % of revenue 11%
• 60% SMS revenue

247 309 386 180 171 230 Dec-07 Dec-08 Dec-09 Dec-10 H2 H1 410

• 60% SMS revenue

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

BTS Rollout

Capex as % of revenue 9.0 16.0 10.7 6.0 504 596 415 22 193 444 283 200 317 124 152 221 215 Dec-07 Dec-08 Dec-09 Dec-10 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 Patel

Financial overview

Group Finance Director

Financial highlights Strong 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

114.7 111.9 Rev +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 5 43.2 59.3 C E EBITDA 50.5 46.1 +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 2010 2009 14.9 42% 41% 44%

EBITDA margin C / R

28% 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 Infrastructure sharing

• 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 9 477 9 830 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 1 152 1 091 1 195 1 343 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

Revenue

Strong 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 0.8 12.6 127.3 3.3 54.6 58.7 114.7 111.9 102.5 +14%

• 11%

114.7 111.9 56.4

LC ZAR NIG 16% 1% RSA 8% 8%

46.1 56.0 57.3

IRA 42% 21% GHA 14% 0%

• Revenue in key markets driven by strong

subscriber growth

• Reported revenues adversely impacted by ZAR

strength

2010 FX 2009 NIG RSA IRA GHA 2010CR Other

2010 2009 2008 H1 H2

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 Other 6.2 0.3 0.2 0.4 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 0.4 0.1 0.1 0.2

• Ghana revenue increased by 87% . Bundled
• fferings and reduction of data pricing led to

increased data usage. 44k dongles and 166k 3G subscribers on network

RSA 3.6 0.9 +44% 58%

• Syria revenue growth over 100% due to

better value proposition for both pre- and postpaid market

2.5 2010 2009 * Business Solutions included in other revenue in 2009

Interconnect

Large 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 pp ZAR 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

currency

5 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%

EBITDA

Strong organic EBITDA growth

EBITDA breakdown (ZAR bn) EBITDA (ZAR bn)

6.2 56 7 2 2

Strong organic EBITDA growth

+23% 21 6 26.3 50.5 46.1 43.2 4.5 1.8 1.8 0.3 50.5 56.7 2.2

• 13%

21.6 44.0% 41.1% 42.1% 23.6 46.1 LC ZAR NIG + 24% + 7% RSA + 17% + 17% 2010 24.2 2009 24.5 2008 19.6

GHA IRA RSA 2010 FX 2010CR Other NIG 2009

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

• 4%

EBITDA margin H1 H2

• 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 margin

Margin 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 reversal

0.4 0.1 0.5 44.0% 44.5% 1.3 +3.4pts

pa e t e e sa

RSA

• RSA EBITDA growth due to
• Revenue increase, higher data and prepaid

revenue N t i t t i d d t i d

1.1 0.7 41.1% +2.9pts

• Net interconnect improved due to increased
• n-net call percentage
• Lower distribution cost

Iran

• Iran EBITDA growth due to

Iran EBITDA growth due to

• Revenue increase on strong subscriber

growth

• Single vendor maintenance, marketing cost

reduction

Gh

2010 FX 2010CR Other GHA IRA RSA NIG 2009 2010CR is at constant prior year FX rate

Ghana

• Margin decreased by 1pt. Higher electricity

and utility cost. Increased maintenance to improve quality Other

2010CR is at constant prior year FX rate

Other

• Margin improvement in Afghanistan, Syria

and Zambia. Margin deterioration in Sudan, Cameroon and Benin

CapEx

Capex reduction in most operations

CapEx (ZAR bn) CapEx breakdown (ZAR bn)

31.2

Capex reduction in most operations

15.7 19 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 ZAR NIG

• 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

2010 2009 2008

2010 FX 2010CR Other GHA IRA RSA NIG 2009

Capex/Rev H1 H2

• Positive spend below June authorised

(ZAR 21 3bn) mainly due to

2010CR is at constant prior year FX rate

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 guidance

Significant capex reduction vs prior year Significant capex reduction vs prior year

ZAR m

2010 Authorised 2011 2009 South and East Africa 5 421 5 676 8 645 South 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 2 586 Ghana 3 092 1 221 2 586 Other operations 2 127 1 718 3 710 Middle East and North Africa 3 402 4 871 5 785 Iran 1 661 1 317 3 326 Syria 410 1 066 748 Other operations 1 331 2 488 1 711 Head office companies 724 861 300 Total 19 466 22 131 31 248

2009 USD: ZAR 8.30 2010 USD: ZAR 7.34 2011 USD: ZAR 7.42

EBITDA - CapEx

Strong free cash flow growth

EBITDA - CapEx (ZAR bn) EBITDA - CapEx breakdown (ZAR bn)

31.0

Strong free cash flow growth

+134% 15.2 9.3 3.9 3.1 0.6 3.9 31.0 34.9 4.3 +134%

• 26%

27% 15 8 14.9 5.9 14.9 5.6 14.9 LC ZAR NIG + 98% + 73% RSA + 89% + 89% 2010 15.8 2009 13% 9.0 2008 15% 9.3

2010 IRA RSA NIG 2009 FX 2010CR Other GHA

IRA NM NM GHA NM NM % revenue H2 H1

• Strong organic operational growth
• Nigeria EBITDA increase, capex decrease after

high investments in 2009 realising significant

2010CR is at constant prior year FX rate

• 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
• n the back of higher margins and lower capex
• Ghana high capex spend in 2010

Interest and tax

Lower 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 to

Tax (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 1.0 33.4% 7 3

• Impact of reduced put option credit on

pre-tax income

2010

7.8

2009

6.4

2008

7.3

Normal tax Def tax STC & other WHT Eff 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
• perational performance despite FX and

higher tax charge

909 470 754 390 904 495 439 364 409

ZAR cents ZAR cents

2010 2009 Variance %

2010 2009 2008 H1 H2

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) 72.2 p p p ( ) ( 8 ) Adjusted headline earnings per share 909.1 754.3 20.5

Net debt

Group in net cash position

12000 13%

Repayment schedule (ZAR bn)

Group in net cash position

ZAR bn

9.6 8.1 7.0 5 3 5 3 6000 8000 10000 56% 29% 2%

Gross debt 35,3

5.3 5.3 2000 4000 6000 29% 2011 2012 2013 2014 >2014 Holdco's and RSA Nigeria Iran Syria Other 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 conversion

Net cash 0.9

Income statement

ZAR bn ZAR 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 9pts EBITDA 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 +18 Attributable profit 17.3 14.3 14.7 +18

Effective tax rate 36.3% 40.1% 33.4%

• 2.9pts

Statement of financial position

ZAR bn ZAR bn

2010 2009 Non-current assets 99.7 110.2 l Property, plant & equipment 63.4 67.5 Goodwill and other intangible assets 31.6 37.5 Other non-current assets 4.7 5.2 Current assets 54.3 46.0 54.3 46.0 Bank balances 35.9 24.0 Restricted cash 0.3 0.7 Other current assets 18.1 21.3 f di l l ifi d h ld f l Assets of disposal group classified as held for sale 0.8

• Total assets

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

Net debt

• 0.9

12.2 Net debt/ EBITDA

• 0.02

0.26 USD: ZAR 6.61 7.39

Statement of cash flows

ZAR bn ZAR bn

2010 2009 Net cash generated from operations 50 5 49 6 Net 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 7 Acquisitions 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 Ramaphosa Message 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 552m Population 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 Infrastructure sharing

• 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 Engineering

MBA d

Education

• MBA degree

Sifiso Dabengwa d 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 processes

Ongoing 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 ‘000 000 South Africa 2,000 Nigeria 4,200 Ghana 390 Ghana 390 Iran 3,350 Syria 600 R t 6 385 Rest 6,385 16,925

Capex guidance - 2011

(ZAR mn) Authorised 2011

5% 17% 16%

2G 3G

South and East Africa 5 676 South Africa 3 920 Other operations 1 756

17% 19% 26%

Cable/ fibre Core and other IT & VAS Physical infrastructure

Other operations 1 756 West and Central Africa 10 723 Nigeria 7 784

5% 6%

3% 5% 11%

Ghana 1 221 Other operations 1 718

54% 9% 4% 22%

48% 6% 27%

Middle East and North Africa 4 871 Iran 1 317

6% 8% 17%

Syria 1 066 Other operations 2 488 Head office companies 861

54% 10% 21% 8% 4% 49%

Head office companies 861 Total 22 131

7% 22%

Questions

Thank you

Notice

The information contained in this document has not been verified independently. No representation p y p

• r 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

• f 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 f This 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

• r commitment whatsoever.

Annexures

Nigeria - Financial

Strong 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% )

33.5 33.3 31.6 Rev +1% +16% +5% +1%

• Revenue growth due to

subscriber increase

• Cost optimisation

programmes

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

9.6 10.2 4.7 CapEx EBITDA 21.1 19.7 18.2 +7% +24%

• 54%
• 46%

network and site rollout

AFCF 16.4 9.5 8.6 +73% +98% 2010 2009 2008 58% 59% 63% EBITDA margin 30% 31% 14% g Capex / Rev

Nigeria

NGN bn

Revenue

• Increase in subscribers

NGN bn

Revenue 2010

• Increase in subscribers
• 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

% Grow th 1 6 .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 435.8 2010 435.8 % Grow th 2 3 .9 % EBI TDA m argin 6 3 .0 %

RSA – Financial*

Strong free cash flow growth achieved

• Consistent generation of AFCF

in prior years, with 2010 increasing by 89%

Strong free cash flow growth achieved

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 33.1 32 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

EBITDA 2 2 22.7 21.5 +17% +17%

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

4.9 6.0 3.9 AFCF CapEx EBITDA 8.3 12.2 4 4 10.4 5.7 10.6 +17% +17%

• 35%
• 35%

+89% +89% Dec 2010 Dec 2009 4.4 Dec 2008 33% 31% 34% EBITDA i 33% 31% 34% 15% 18% 11% EBITDA margin Capex / 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 Airtime and subscription 1.4 Data 1.1

• Drop in interconnect rates

Direct network and operating costs

• Higher rent and utilities
• Higher maintenance

Interconnect (0.7) Other 0.9 2010 35.8

Handsets and accessories

• Volume increase
• Average cost: prepaid down, postpaid up

Selling and distribution

% Grow th 8 .2 % EBITDA 2010

Selling and distribution

• Marketing higher due to FIFA
• Lower distribution cost

EBITDA 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 % Grow th 1 7 .3 % % Grow th 1 7 .3 % EBI TDA m argin 3 4 .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

Strong free cash flow growth achieved

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 2.2 7.6 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%

3.3 AFCF 2.1

• 0.6

1 2 2.7 1.5 8% % NM NM 2010 2009 2008

• 1.2

30% 35% 41% EBITDA margin 30% 35% 41% 55% 43% 18% EBITDA margin Capex / Rev

* at 49% proportion

Iran*

IRR bn

Revenue

• Increase in subscribers

IRR bn

Revenue 2010

Increase in subscribers

• Stable ARPU
• Uptake of GPRS

S lli d di ib i

2009 9 075 Airtime and subscription 2 017 Data 146

Selling and distribution

• Decreased marketing spend
• Commission in line with revenue

Interconnect 655 Other 991 2010 12 884

Direct network operating costs

• Single vendor maintenance

% Grow th 4 2 .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 % Grow th 6 6 .6 % EBI TDA m argin 4 1 .2 %

* at 49% proportion

Ghana - Financial

High 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

p centres

• High fibre rollout in 2010
• EBITDA increase by 13% in

5.7 5.7 6.0 Rev 0% +14%

• 5%

+0%

local currency

• Revenue growth following

strong subscriber growth and success of MTN Zone

3.1 OpEx 3.2 5.7 3.2

• 3%
• 17%
• EBITDA margin decreased by

0.3pts

1 9 2.5 EBITDA 2.6 2.8

• 4%

+13% 1.9 2.6 3.1 CapEx 0.0 0.9 +19% +31% NM NM AFCF 2010

• 0.6

2009 2008 46% 45% 44% EBITDA margin NM NM 46% 45% 44% 32% 46% 54% EBITDA margin Capex / Rev

Ghana

GHC m

Revenue

• Increase in subscribers

GHC m

Revenue 2010

Increase in subscribers

• 3G uptake

Direct network operating costs 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%

Selling and distribution

• FIFA promotion

% Grow th 1 4 .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 % Grow th 1 3 .3 % EBI TDA m argin 4 4 .5 %

SYRIA - Financial

Strong free cash flow growth achieved

• AFCF increased by 71% in

2010

Strong free cash flow growth achieved

Syria YTD financial: 2008 - 2010 (ZAR bn)

Reported ’09-’10 Organic ’09-’10

• EBITDA growth
• Revenue growth due to

increase in subscribers, sms and data bundles

6.8 7.0 6.5 Rev

• 3%

+10% +8%

• 3%

and data bundles

• Selling and distribution cost

decrease on commission rate reduction

Rev share 3.2 3.1 2.8

• 3%
• 19%
• Capex down following high

spend in 2009

OpEx 2.0 2.5 1.9 +20% +11% 1.0 0.7 AFCF CapEx EBITDA 1.2 0.4 1.6 1.4 0 8 1.8 +14% +31%

• 43%
• 37%

AFCF 2010 2009 0.7 2008 0.8 28% 20% 24% EBITDA margin +71% +86% 28% 20% 24% 15% 10% 6% EBITDA margin Capex / Rev

Syria

SYP bn

Revenue

• Increase in subscribers

SYP bn

Revenue 2010

Increase in subscribers

• SMS and data bundles

Direct network operating costs R h

2009 39.3 Airtime and subscription 3.2 Data 1.1

• Revenue share

Interconnect and roaming

• Increased international calls (economic

th)

Interconnect 0.3 Other (0.4) 2010 43.5

growth) Selling and distribution

• Commission rate decrease

% Grow th 1 0 .7 % EBITDA 2010

Handsets and accessories

• Increase in 3G handset sales

2009 7.7 Revenue 4.2 Selling and distribution costs 0 2 Selling and distribution costs 0.2 Interconnect and roaming (0.4) Other (1.4) 2010 10.3 2010 10.3 % Grow th 3 3 .8 % EBI TDA m argin 2 3 .7 %

Net debt

ZAR m ZAR m

Cash and Interest Net debt Net debt cash equivalents bearing 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 1 981 Other 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 3

Number 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 7

CAPEX

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 55 Shareholding (% ) 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 1 Market 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 65 Shareholding (% ) 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 85 Shareholding (% ) 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 1 Market 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