MTN Group Limited Final audited results for the year ended 31 - - PowerPoint PPT Presentation

MTN Group Limited

Final audited results for the year ended 31 December 2006

2

Agenda

Strategic & operational overview

Phuthuma Nhleko Group President and CEO

Financial overview

Rob Nisbet Group Finance Director

Looking ahead…

Phuthuma Nhleko

Strategic and operational overview

Phuthuma Nhleko

Group President and CEO

MTN Vision

To be the leader in telecommunications in emerging markets

5

Key considerations for the period…

• Investcom acquisition

– Integration almost complete – Synergy benefits included in 2007 budgets, including rebranding – Asset base increased

• Significant interest in emerging markets, operations more competitive
• Increased regulatory intervention
• Margin management key
• Changes in ownership levels

– Increased shareholding in Côte d’Ivoire, Uganda, Botswana and Nigeria

Significantly different Group going forward

6

Operations 1 11 21 Population 41m 274m 501m

1998 - 2005

MTN an emerging market leader…

1993 - 1997 2006 National Player African Player Emerging Market Player

Successfully delivering on our vision

2006 Revenue Subscriber #’s 1998 - 2005 1993 - 1997

7

Group highlights

for the 12 months ending 31 December 2006 Group subscribers up 73% to 40.1 million Revenue 49% higher

to ZAR 51,6 billion against 12 months to 31 December 2005*

EBITDA up 53% to ZAR 22,4 billion

against 12 months to 31 December 2005*

EBITDA margin increased to 43.4% from 42.4% against

12 months to 31 December 2005*

PAT increased to ZAR 12,1 billion from

ZAR 6,7 billion against 9 months to 31 December 2005

Dividend of 90 cents per share declared

Adjusted headline

EPS increased by 73% to 584.7 cents

against 9 months to 31 December 2005

* Unaudited

8

Subscriber growth...

5 10 15 20 25 30 35 40

Dec-05 Dec-06 SEA WECA MENA

23.2 40.1 12% 27% 49% Split of subscribers by region 39% 73%

• No. of operations:

21 +110% Population (m): 501 +83% Subscribers (m): 40.1 +73%

Subscriber growth increasingly diversified

MTN Group

Comparative annual growth

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Relative ARPU performance

USD per month

$23 $18 $15 $18 $12 $17 $20 $19 $20 $20 $21 $12 $17 $18 $16 $9 $14 $35 $17 $10 $17 South Africa Nigeria Cameroon Côte d'Ivoire Uganda Rwanda Swaziland Zambia Congo B. Botswana Benin

• G. Bissau
• G. Conakry

Liberia Sudan Iran Afghanistan Cyprus Syria Yemen Ghana

South African ARPU: ZAR164 (Dec 05 – ZAR167)

10

• 75%

19% 53% 57% 34% 30% 54% 43% 35%

• 55%

35% 52% 0% 34% 53% 57% 42%

• 80%
• 60%
• 40%
• 20%

0% 20% 40% 60% 80%

MTN SEA WECA MENA South Africa Nigeria Ghana Sudan Iran

'Dec-06 'Dec-05

Relative EBITDA margins

Group EBITDA margin expansion

New Operations: Iran – 21 October * 12-month comparison

Region Group Key operations

11

• Senior executive and board involvement on the ground
• Not politically aligned
• Commitment to local and regional regulatory forums
• Constructive engagement
• Extensive pre-investment research – deep understanding
• Strong corporate responsibility –social investment, governance, tax etc
• Positive contribution through broadbased infrastructure roll-out

Risk management

Political / regulatory regimes Governance structures

• Comprehensive risk management structures aligned to King II and

best practice

• Ultimate board responsibility with dedicated group executive risk
• fficer

Committed and involved

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Risk management (cont.)

• Expanded regions/ markets limit concentration exposure to any single

region

• Co-investment with local partners
• Experienced and committed local management teams limit execution

risks

• Detailed market analysis and robust business plan preparation

contributes to informed risk decisions Emerging market risk FX risk

• Local currency funding maximised to limit revenue / liability mismatch
• Operations hedge foreign currency obligations where possible
• Translation risk not hedged - income statement impact
• Diversification of assets and earnings reduces risk profile

13

26% increase in subscribers

South & East Africa (SEA) region

Deeper mobile penetration over last 12 months

+ 26% 15,517

Total SEA

+ 22% 12,483 South Africa + 26% 268 Swaziland + 25% 600 Botswana + 93% 187 Zambia + 63% 1,595 Uganda + 40% 384 Rwanda

Growth % Dec 06 Subscriber numbers (m) +6% pts 40% Mobile penetration + 2% 98.9m Population (m) + 0% 6 Countries in region

39%

% to Group

14

1164 178 24578 128 195 343

1595 384 12483 268 187 600

615 103 174 37 77 8340

South Africa Botswana Swaziland Zambia Uganda Rwanda

SEA region – Overview

Botswana, South Africa, Swaziland, Zambia, Uganda, Rwanda

• No contribution from Investcom, inclusion of Uganda and Rwanda, previously in MENA
• Appointment of key roles in progress
• South Africa key driver of growth and profitability
• Strong performance from Uganda, subscribers up 63%
• Zambia negatively affected by slow start to roll-out

CAPEX ZAR3bn (31% Group) PAT ZAR5bn (42% Group) EBITDA ZAR9bn (42% Group) Revenue ZAR27bn (52% Group) 16m Subs (39% Group) Population : 98.9m (20%Group)

South & East Africa EBITDA margin 35.2%

Revenue EBITDA Subscribers

15

8,001 10,235 6,270 4,723 164 169 184 203 206 Mar-03 Mar-04 Mar-05 Dec-05 Dec-06

MTN Subscribers ('000) ARPU - Blended (ZAR)

SEA region

South Africa – Financial and operational highlights

Dec 2005* Dec 2006 9% 34% ZAR25bn Capex/ Revenue EBITDA margin Revenue 13% 34% ZAR20bn

• Market share improvements ~ 36% up 1%
• Highly competitive market
• Expanded distribution channels
• Customer centricity through improved

service initiatives

• Impact of regulatory changes still unclear
• Margins still healthy due to effective cost

management

• Continued focus on data revenue growth

Market share 36% Launched Jun 1994 Shareholding 100% Penetration 68% Market sizing 48m (2011) Population 47m

Subscribers/ARPU

million

MTN well positioned for change

12,483

*Unaudited 12-month period

16

SEA region

South Africa – Financial and operational highlights (cont.)

487 541 596 576 94 93 97 104 203 184 169 164 Postpaid Prepaid Blended

• Increased prepaid ARPU’s due to lower

denomination vouchers

• Prepaid pricing segmentation
• Lower end packages boost postpaid

subscribers but negatively affect ARPU

– MyChoice TopUp: 582k from 281k – MyCall 100: 806k from 761k

• MOU decline slowing due to larger

subscriber base

ARPU

ZAR per month 155 129

• Avg. MOU

per sub

140 124

ARPU pressure

Mar-04 Mar-05 Dec-05 Dec-06

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• SMS approx 79% of total data revenue
• 3G roll-out on track

– Expanded to 793 from 431 at June 2006 – Approx 20% subscribers under coverage – Approx 280k users at December 2006 – Good HSDPA uptake

• Mobile money transfer system showing

good over past six month – 203% increase in registered users

• Data tariffs reduced to improve competitive

position and stimulate traffic

5,0% 8,2%

As % of MTN SA revenue*

5,9% 8.0%

Competitive tariffs

* Includes data revenue from subscriptions from Dec 05

286 403 679 779 384 502 403 1159

Mar-04 Mar-05 Dec-05 Dec-06 First Half Second Half

670 905 1,938 1 082

SEA region

South Africa – Data highlights Data revenue

ZAR million

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Constructive engagement

SEA region

South Africa – Regulatory changes

• Electronic Communications Act (ECA) Promulgated on 19 July 2006

– Licence conversion process still pending – Existing rights and obligations “protected” - new terms still unclear

• Interconnect Ongoing dialogue

– COA/CAM submitted to ICASA in March 2007, awaiting approval – Market definitions as prescribed in ECA now proposed

• Re alignment of ICT BEE charter in process New DTI codes announced in December 2006
• Other

– Court rules Cell C CST roll-out irregular – interconnect settlement pending – MNP operational from 10 Nov 2006 – limited impact, 40k subscribers to end Feb 2007 – RICA, MTN ready but final implementation still outstanding

19

80% increase in subscribers

West & Central Africa (WECA) region

+ 80% 19,622 Total WECA Growth % Dec 06 New 276

• G. Conakry*

Acquired 476 Benin* Subscriber numbers (m) +6% pts 19% Mobile penetration + 25% 224m Population (m) + 125 9 Countries in region + 49% % to Group Acquired Acquired + 33% + 50% + 43% Acquired + 47% 98

• G. Bissau*

218 Liberia* 280 Congo B. 1,625 Côte d’Ivoire 1,783 Cameroon 2,585 Ghana* 12,281 Nigeria

• G. Conakry: Launch 18 April

* Acquired as part of Investcom LLC acquisition

Footprint opportunities significantly increased

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289 397 271 1922 1725 1704 14900 122 150 131 8529 971 562 890

Nigeria Cameroon Ghana Ivory Coast Benin CongoB Other

476 280 592 12281 2585 1625 1783

CAPEX ZAR5bn (52% Group) PAT ZAR7bn (61% Group) EBITDA ZAR11bn (50% Group) Revenue ZAR21bn (41% Group) 20m Subs (49% Group) Population : 224m (45% Group)

WECA region - Overview

Nigeria, Ghana, Cameroon, Côte d’Ivoire, Benin, Congo B, G. Conakry, Liberia, G.Bissau

• Low regional penetration at 19% offers opportunity for growth
• Investcom merger contributing ~ 42% of net movement in subscribers
• Increasingly competition and regulatory activities
• Strong performance from Cameroon, subscribers up 43%
• Integration of Investcom operations well advanced with focus on branding and products

Strong contribution to the Group, region dominated by Nigeria

Revenue EBITDA Subscribers

21

• Market share up from 45% to 46%
• Strong EBITDA margin through cost

savings

• Regulator activities:

– Expanding GSM license with unified licence and 3G license (awarded in last week of March 2007 for $150m) – Award of 5th GSM operator – New interconnect rates effective from 22 September 2006

• Broadening shareholder base still a

priority

• Tax holiday ending 1 April 2007
• Uncertain outcome of 2007 elections

WECA region

Nigeria - Financial & Operational Highlights

Dec 2005* Dec 2006 24% 57% ZAR14.9bn Capex/ Revenue EBITDA margin Revenue 45% 53% ZAR11.4bn

Market share 46% Launched Aug 2001 Shareholding 82% Penetration 19% Market sizing 45.6m (2011) Population 138.9m 8,370 4,392 1,966 18 22 40 51 Mar-04 Mar-05 Dec-05 Dec-06 MTN Subscribers ('000) ARPU (USD)

Pre Dec 05, subscribers and ARPU based on 30 day activity window

Subscribers/ARPU

12,281

Increasingly competitive

*Unaudited 12-month period

22

WECA region

Nigeria – New product offering

• Launch of segmented value proposition

products on 22 September 2006

– On net calling preference – Growth from returning inactive MTN subscriber – Incremental minute of use from both existing and returning inactives

• Brand preference at 54% from 49%
• Customer satisfaction at 80% from 69%
• Churn at 30% from 35% last year
• Pressure on network quality currently

being addressed

Quarterly analysis of total MOU and net connections

500 1000 1500 2000 2500 Q1-2006 Q2-2006 Q3-2006 Q4-2006 500,000 1,000,000 1,500,000 2,000,000 2,500,000 MoU ('000) Net connections ('000)

MTN successfully repositioned

23

31% 58% 38% 64% 48% 73% 43% 18% Geographic coverage Population coverage Mar-04 Mar-05 Dec-05 Dec-06

WECA region

Nigeria – Network infrastructure & enhancements

• Network infrastructure

– 2 518 base stations – Continuing expansion of transmission backbone (~3600km)

• Acquisition of unified licence & VGC

(fixed wireless PTO) aimed at corporate market

• Capacity of ~13.5m subscribers in

core network

• Pressure on network: focus shifted to

radio expansion to accommodate higher subscriber numbers and expansion into new areas

Geographic and population coverage Most competitive coverage and backbone

24

WECA region

Ghana – Financial & operational highlights

Dec 2005* Dec 2006

26% (12mths)** 52% (Jul-Dec) 53% (12mths)** ZAR1.7bn (Jul-Dec) ZAR3.0bn (12mths)** Capex/ Revenue EBITDA margin Revenue 16% 58% ZAR2.1bn

• Market share loss stabilised in early 2007
• Increasing competition

– Market penetration at 22% from 12.76%, fuelled by decrease in entry barriers (handset / SIM) – Privatisation of 2 licenses

• Aggressive roll-out to improve network

quality well underway by December 2006

– Approx 100 BTS’s/month (Sep-Dec)

Market share 52% Launched Nov 96 Shareholding 98% Penetration 22% Market sizing 9m (2011) Population 22.4m

Dec 06: 6 month ARPU figure

Subscribers/ARPU Successfully integrated

2,585 1,820 955 17 18 19 2004 2005 2006

MTN Subscribers ('000) ARPU (USD)

* * * *

**Unaudited 12-month period * Investcom LLC 12 month disclosure

25

New subscribers acquired over period

Middle East & North Africa (MENA)

Footprint opportunities significantly increased with greenfield areas

N/A 4,912

Total MENA

Acquired 1,066 Sudan* New 154 Iran New 218 Afghanistan Acquired 2,237 Syria* Acquired 1,161 Yemen* Acquired 76 Cyprus*

Dec 06 Subscriber numbers (m) Acquired 16% Mobile penetration Acquired 178m Population (m) Acquired 6 Countries in region

12 %

% to Group

* Acquired as part of Investcom LLC acquisition New – Launched in 2006

26

580 2009 570 520 77

99

• 58

700 99 277

Iran Syria Yemen Sudan Other

294 154 2237 1066 1161

MENA region – Overview

Afghanistan, Cyprus, Iran, Sudan, Syria, Yemen

CAPEX ZAR2bn (17% Group) PAT ZAR0.2bn (2% Group) EBITDA ZAR1bn (5% Group) Revenue ZAR4bn (7% Group) 5m Subs (12% Group) Population : 178m (35%Group)

Revenue EBITDA Subscribers

Regional consolidation concluded

• Under-penetrated region with high growth potential
• Aggressive roll-out in Sudan, Iran and Afghanistan contributing to low EBITDA
• High revenue share in Syria and Iran
• Strong growth in Syrian subscribers to 2.2m from 1.5m

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1,080 154 8.5

Dec-06 Mar-07

MTN Subscribers ('000) ARPU (USD)

Market share 1% Launched Oct 06 Shareholding 49% Penetration 20% Market sizing 46.3m (2011) Population 69.5m

MENA region

Iran – Highlights

Dec 2006 942%

• 75%

ZAR 77m Capex/ Revenue EBITDA margin Revenue

• MTN’s market sizing increased to 46m

(2011) from 31m (2015) estimated in 2005

• Pioneer in privatisation
• Low year end subscriber numbers due to
• Late launch
• Slow regulatory approval processes
• Limited coverage
• Competitive pressure
• Current daily run rate now > 15 000
• Efficient subscriber centric activation

process - registration within 15 minute

• Strong brand awareness within 3 months
• Costs well contained

Subscribers/ARPU Slow start challenges identified and rectified

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<1% 16% <1% 26% Geographic coverage Population coverage Dec-06 Mar-07 361 8 588 49 Number of BTS Number of cities Dec-06 Mar-07

MENA region

Iran – Infrastructure

• Significant vendor finance secured
• Roll-out behind schedule due to

challenges

– Local ownership requirements – High land costs – Environmental procedures – Access to intercity transmission

• Roll-out progressing well
• 4 switches deployed with a core capacity in

excess of 1m subscribers

• Risk of sanctions mitigated by:

– Diverse suppliers and contractual commitments – Outsourcing (network and IT) – Front end supply Coverage statistics Cities & BTS’s roll-out

29

MENA region

Iran – License obligations and regulatory

Road coverage challenging 50% population, 248 towns, ~1,000km of road covered ~ 50% population; 248 towns; 1,600km of road covered 1 year Within period from new effective date Oct 06 6-9 mths Commercial Launch Year 1 ends 10 July 2007 15 years 10 Jul 06 15 years 21 Nov 05 Licence Term – Effective Date

Note Within prescribed period As at Dec05

• Year 1 roll-out most onerous
• Higher connection fee retained on

postpaid

• Competitive pressure reduced on prepaid
• Lower connection fee negatively impacts

business targets

– Peak funding of $1.9m in 2009 whereas previously targeted at $1.5m in 2007/8

• Low tariffs not offset by higher usage
• Interconnect terms contained in Irancell

licence, agreements to be finalised in 2007

30 Market share 25% Launched [Sep05] Shareholding 85% Penetration 12% Market sizing 22m (2011) Population 36m

1066 269 Dec-05 Dec-06 MTN subscribers ('000) ARPU (USD)

• First full year of operation
• Market share growth to 25%
• Regulatory & logistical challenges
• Despite roll-out challenges

– 36% of population covered – 3G and GPRS launched – 662 BTS’s and 3 MSC’s

• Introduction of aggressive CDMA

competitor

• ARPU dilution limited, low tariffs
• Dinar appreciation of 15% vs USD in 2006,

positive contribution to margin

MENA region

Sudan

70% (12mths)** 17% (Jul-Dec) 19% (12mths)** ZAR570m (Jul-Dec) ZAR887m (12mths)**

Dec 2006 Dec 2005*

256% (12mths)

• 55% (12mths)

ZAR130m(12mths) Capex/ Revenue EBITDA margin Revenue

Subscribers/ARPU

19 16

High growth market, 800k net adds for the year

Dec 06: 6 month ARPU figure

**Unaudited 12-month period * Investcom LLC 12 month disclosure

* * *

Financial overview Rob Nisbet

Group Finance Director

32

Financial trends

31.4 20.2 17.2 13.7 11.3 8.7 9.8 15.3 12.6 10.7 2003 2004 2005 Dec-05 Dec-06

Group revenue

ZAR billion

CAGR 03FY – 06FY 28% CAGR 03FY – 06FY 38%

Group EBITDA

ZAR billion

Adjusted HEPS*

cents

13.8 8.6 7.2 5.6 4.3 2.7 3.8 6.4 4.7 3.5 2003 2004 2005 Dec-05 Dec-06 278.5 218.4 170.1 123.4 60.9 306.2 82.4 129.7 193 119.8 2003 2004 2005 Dec-05 Dec-06 * Basic headline earnings Dec 2006 – 606.5 cents (December 2005 – 359.8 cents) Adjustment made to eliminate deferred tax asset raised by MTN Nigeria and put option impact

CAGR 03FY – 06FY 42%

33

Key accounting issues

• Investcom

– Consolidated from 1 July 2006 – Cash-flow hedging of purchase price resulted in gain of ZAR 2.5bn

• Set off against investment
• No tax provided on gain (ZAR 680m)

– PPA amortisation – ZAR 587m (an additional ZAR 72m relates to Uganda)

• Increased ownership

– Nigeria: 6.9%, ZAR 2,7bn from 75% to 82% (77% to 84% incl. put option impact) – Cote d’Ivoire: 17.34%, ZAR 363m from 51% to 68.34% – Botswana: 7%, ZAR 146m from 44% to 51% (remained as a JV) – Uganda: 45%, ZAR1,577m from 52% to 97% (fully consolidated from 1 July)

• MTNI (Mauritius)

– Forex gain (ZAR 452m) in MTNI Mauritius (ZAR functional currency), after transfer to reserves below – Early adoption of IAS21 – ZAR 242m gain taken to reserves instead of Income statement (Dec 05 – loss of ZAR 79m – restated numbers) – Deferred tax credit (ZAR 145m) on timing differences

34

326 3 290

• 33

South & East Africa West & Central Africa Middle East & North Africa Head Office Companies

Earnings per share

(1,6) 15,3 Impact of put option 69 359,8 606,5 Basic headline earnings per share 73 338,2 584,7 Adjusted headline earnings per share (20,0) (37,10) Reversal of deferred tax credit

% change 9 months ended Dec 2005 12 months ended Dec 2006 cents

HEPS (584,7 cents)

• Adjusted headline earnings items:

– Deferred tax credit ZAR 825m (MTN share ZAR 650m) – Impact of put option (MTN share ZAR 268m) (Finance costs – ZAR 212m, Fair value adj. – ZAR 120m, Forex loss – ZAR 89m, Minority share profits – ZAR 153m)

35

5 866 10 610 Net profit (256) (1 289) Amortisation (2 497) (5 030) Depreciation (838) (1 489) Minority interest 6 704 12 099 Profit after taxation (1 411) (2 591) Income tax expense 8 115 14 690 Profit before taxation 10 23 Share of profits of associates (373) (1 427) Net finance costs 8 478 16 094 Profit from operations 11 231 22 413 EBITDA 27 212 51 595 Revenue

9 months ended Dec 2005 12 months ended Dec 2006 ZAR million

Income statement

Net profit excluding Investcom 11 241

36

21 36.55 28,82 14 37.63 32,54 Sudanese Dinars per Rand 0,5 129 128,41 2 131,44 128,49 Nigerian Naira per Dollar (2) 9 078,62 9 220,00 0,3 9 192,58 9 168,96 Iranian Rial per Dollar

Closing Average Exchange rates % var Dec 2005 Dec 2006 % var Dec 2005 Dec 2006

1 412 1 420,80 20,23 6,47 9 4 8 (9) 1 449 1 436,49 20,42 6,32 9 9 11 (12) 1 282,55 1 365,28 18,70 7,04 1 312.99 Ghana Cedis per Rand 1 308,73 Iranian Rials per Rand 18,23 Nigerian Naira per Rand 7,05 Rand per Dollar

Exchange rates analysis

If Dec 2005 rates are applied to Dec 2006 PAT there is an impact of -11%

37

34 668 34 668 70

• 2 156
• 11 377

13 533 964 20 101 21 065 Unaudited 12 months ended Dec 2005 (36) 51 45 Head Office Companies

• 570

Sudan

• 3 109

Other operations (Cyprus, Syria, Afghanistan, Yemen,

MedNet)

• 77

Iran 19 31 9 034 14 900 Nigeria

• 1 704

Ghana 49 27 212 51 595 TOTAL 32 27 212 45 608 Revenue excl. Investcom 26 16 293 26 586 South & East Africa

• 3 756

Middle East & North Africa 57 22 ZAR 1 834 4 604 Other operations (Côte d’Ivoire, Cameroon, Congo

Brazzaville, Liberia, Benin, Bissau, Conakry)

10 868 21 208 West & Central Africa 786 2 008 Other operations

(Botswana,Uganda,Rwanda,Zambia,Swaziland)

22 15 507 24 578 South Africa* LC 9 months ended Dec 2005 12 months ended Dec 2006 ZAR million

Revenue analysis

% change

* Including MTN Network Solutions

38

• Strong South Africa interconnect revenue growth offset by

higher interconnect cost growth due to “All net” proposition

• Regulatory focus on interconnect rates
• New Nigerian interconnect tariffs effective 22nd Sep

reducing mobile to mobile tariffs significantly and increasing mobile to fixed and fixed to fixed. Negative impact offset over last quarter by value proposition

• Equipment sales contribute less due to SA impact being

diluted

• Interconnect revenue unchanged from 2005 at 20%

20% 6% 1% 73% Subscriber spend Interconnect Equipment sales Connection fees

Revenue analysis

(% of Revenue)

1,365 808 1,254 1,025 2364 596 118 222 349 805 2.46% 5.40% 6.40% 2.01% 5.45%

500 1,000 1,500 2,000 2,500

Mar-05 Sep-05 Dec-05* Jun-06 Dec-06

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00%

4,427 2,456 3,784 2,637 5600 1,852 1,063 1,572 970 1952 8.59% 7.97% 10.90% 10.51% 10.19%

1,000 2,000 3,000 4,000 5,000 6,000

Mar-05 Sep-05 Dec-05* Jun-06 Dec-06

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

Dec 2006 100% = ZAR 51 595m

Interconnect Revenue Net Interconnect Net Interconnect %

* 9 months

Nigeria Interconnect ZAR million South Africa Interconnect ZAR million

39

EBITDA analysis

42,4 43,4 53 14 685 22 413 TOTAL 52,2

• 890

Ghana 52,1 53,5 61 7 051 11 355 West & Central Africa 53,2 57,2 41 6 051 8 529 Nigeria 94 1 000 1 936 Other operations 29,7

• (3)

1 117 Middle East & North Africa

• (3)

(58) Iran 17,4

• 99

Sudan

• 1 076

Other operations 296 595 Head Office Companies 44,1 33,9 35,2 Dec 2006 EBITDA margin % 42,4 37 14 685 20 100 EBITDA excl. Investcom 126 446 1 006 Other operations 34,3 21 6 895 8 340 South Africa* 34,9 27 7 341 9 346 South & East Africa Dec 2005 EBITDA margin % % change ZAR Unaudited 12 months ended Dec 2005 12 months ended Dec 2006

ZAR million

* Including MTN Network Solutions

40

EBITDA trends

11,355 595 1,117 9,346 South & East Afrca West & Central Africa Middle East & North Africa Head Office Companies

EBITDA (R22 413m)

• Strong contribution from WECA
• Nigeria margins up to 57% from 52% on

strong cost control initiatives, especially staffing and fuel

• RSA margins lower compared to prior

twelve months on higher interconnect costs

• Accretive EBITDA contribution from full

consolidation of Uganda

• Impact of lower margins from start – up
• perations i.e Iran and Sudan
• Dilution impact of revenue share

arrangements in Iran and Syria

34 34 39 52 52 52 56 57 32 34 33 36 37 37 38

43.4 41.3 41.4 41.7 42.9

10 20 30 40 50 60

Mar-05 Sep-05 Dec-05 Jun-06 06-Dec

40 40.5 41 41.5 42 42.5 43 43.5 44

SA EBITDA SA EBITDA (excl. handsets) Nigeria MTN Group

* * 9 months

41

61 (691) Head Office Companies

• (3)

Sudan

• 329

Other operations (15) (144) Iran 73 100 2 866 5 739 Nigeria**

• 348

Ghana 80 6 277 11 274 TOTAL 87 6 277 11 758 Profit after tax excl. Investcom 69 3 021 5 119 South & East Africa (15) 182 Middle East & North Africa 108 67 ZAR 344 577 Other operations 3 210 6 664 West & Central Africa 144 322 Other operations 67 2 877 4 797 South Africa* LC 9 months ended Dec 2005 12 months ended Dec 2006 ZAR million

Profit after tax

(excluding Nigeria deferred tax asset)

% change

* Including Network Solutions ** Excluded deferred tax asset: 2006 – R825 million (Dec 2005 – R427 million)

42

0% 25% 50% 75%

Accounting tax rate Cash tax rate

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

Tax considerations

Tax – effective rate

• Bulk of disallowed expenses relate to

unproductive interest on Investcom acquisition debt

• Prior year adjustment relates predominantly to

Cameroon

• Investcom effective tax rate has limited impact

at this stage Looking forward

• Pioneer status in Nigeria expires on 31 March

2007

– Forecast rate for 2007 previously reported at 47%, now reported 52% is due to the deferred tax effect revised depreciation charge in MTN Nigeria – Corporate tax rate is 30% plus the impact of a ~2% education levy

• Group effective rate expected to increase

based on

– Nigerian tax – Non deductible interest Nigeria - expected trends in effective tax rates

Illustrative

Currently deferred tax asset reversed for adjusted headline earnings

19.76 17.64 17 17.4

15.5 16 16.5 17 17.5 18 18.5 19 19.5 20

Mar-05 Dec-05 Dec-06

MTN Group Investcom

Effective tax rates %

43

Balance sheet

Assets

338 130 Restricted cash 44 812 96 917 Total assets 6 116 10 544 Other current assets 7 222 9 961 Bank balances 13 676 20 635 Current assets 1 386 2 605 Deferred taxation 2 367 2 925 Investment, loans and other non-current assets 4 057 13 088 Intangible assets 2 650 27 017 Goodwill 20 676 30 647 Property, plant and equipment 31 136 76 282 Non-current assets

As at Dec 2005 As at Dec 2006 ZAR million

44

Balance sheet

Equities and liabilities

1 100 4 392 Interest bearing liabilities 44 812 96 917 Total equity and liabilities 10 851 15 593 Non-interest bearing liabilities 9 765 34 203 Non-current liabilities 853 2 778 Deferred taxation 11 951 19 985 Current liabilities 1 407 2 838 Non-current liabilities 7 505 28 587 Long-term liabilities 3 380 4 033 Minority interest 19 716 38 696 Ordinary shareholders’ interest 23 096 42 729 Capital and reserves

As at Dec 2005 As at Dec 2006 ZAR million

45

Analysis of net debt position

* Including long-term borrowings, short-term borrowings and overdrafts ** Including MTN Network Solutions # Includes debt from MTNI Mauritius

1 780 19 988 18 208 Head Office Companies 1 753 2 644 891 Middle East & North Africa 119 1 879# 1 760 Iran 100 348 248 Sudan 1 534 417 (1 117) Other operations

• (1 863)

(1 863) Eliminations 815 250 (565) Ghana 2 444 7 326 4 882 South & East Africa 10 091 32 979 22 888 TOTAL 912 1 082 170 Other operations 3 552 4 884 554 6 772

Interest bearing liabilities*

2 387 1 165 Nigeria 4 114 770 West & Central Africa 387 167 Other operations 2 057 4 715 South Africa **

Cash and cash equivalents Net (cash) debt As at 31 Dec 2006 ZAR million

46

Interest bearing liabilities split

as at 31 December 2006

19% 6% 75%

Cross surety structure Ring-fenced to local operation Other

6 203

8% 6% 62% 24% USD ZAR* Naira Other

• Undrawn facilities of over ZAR 10 billion,

mainly at MTN Holdings

• No FX exposure on SA debt
• Repayment of more than US$ 850m of

Investcom acquisition debt from subsidiary dividends

• De-leveraging results in Net debt to

EBITDA of 1.02

• Funding of underlying operations

continued focus for 2007 to ensure

– Local balance sheet efficiency – Better utilization of cash across the Group

24 897 1 879

70% of USD hedged

47

Cash flow statement

(12 922) (38 606) Cash outflows from investing activities (6 438) ( 9 379) Acquisitions of PP&E (excluding software) (6 484) (29 227) Other investing activities (116) (143) Net interest paid 1 596 (1 991) Net movement in cash and cash equivalents 5 357 18 993 Cash (out) inflows from financing activities (3 761) (20 984) 9 161 17 622 Cash inflows from operating activities (1 081) (1 083) Dividends paid (1 011) (4 086) Taxation paid 11 369 22 934 Net cash generated by operations

9 months ended Dec 2005 12 months ended Dec 2006 ZAR million

48

Capital expenditures (incl. software)

* Including MTN Network Solutions

14 678 533 413 2 764 3 710 744 595 5 321 6 660 667 3 641 4 308 Capex approved or committed at 31 Dec 2005 9 778 4 462 421 773 1 656 840 484 3 674 4 998 729 2 391 3 120

12 months ended Dec 2006

4 675 Middle East & North Africa 2 863 Iran 839 Sudan 973 Other operations 14 Head Office Companies 1 156 Ghana 5 014 South & East Africa 18 544 TOTAL 2 127 Other operations 5 558 Nigeria 8 841 West & Central Africa 654 Other operations 4 360 South Africa* Capex approved or committed at 31 Dec 2006

ZAR million

49

Capital expenditure analysis

126 4,998 1,636 3,018

South & East Africa West & Central Africa Middle East & North Africa Head Office Companies

• 60% of capex due to Nigeria and RSA

invested in network coverage and capacity

• RSA focus on 3G coverage (close to 800

sites rolled out to date)

• Nigeria $100 million investment in fibre

network

• Roll – outs in Iran and Sudan accelerating

in last quarter

CAPEX (R9 778m)

19 16 26 25

5 10 15 20 25 30

Mar-05 Dec-05 Jun-06 Dec-06

CAPEX as a % of revenue

Looking forward.. Phuthuma Nhleko

51

Looking forward…

• Drive regional synergies
• Take advantage of opportunities within the value chain

– Payment solutions to enable transfer of funds in under-serviced markets; – Data opportunities

• Improve operational efficiency through our least-cost operator strategy
• Aggressive roll-out and subscriber acquisition strategy for Iran
• Pursue appropriate expansion opportunities to diversify earnings and

consolidate position in emerging markets;

• De-leverage core debt and gear up operations

52

Thank you Questions?

53

Notice

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

• ther 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 of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances

• therwise.

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.

Annexure I

55

MTN – Data Sheet part 1

Market overview Population (m) 500.8 98.9 223.8 178.1 47.4 138.9 22.4 36.3 69.5 Mobile penetration 40% 19% 16% 74% 19% 22% 12% 20% Market position 2 1 1 2 3

• No. of operators

61 14 30 17 3 4 4 4 3 Operational Data Subscribers (000s) 40 051 15 517 19 622 4 912 12 483 12 281 2 585 1 066 154 ARPU (USD) 21 18 15 23 18 17 16 9 Market share 36% 46% 52% 25% 1% Key Financials (Rm) Revenue 51 595 26 586 21 208 3 756 24 578 14 900 1 704 570 77 EBITDA 22 413 9 346 11 355 1 117 8 340 8 529 890 99

• 58

EBITDA margin 43% 35% 54% 30% 34% 57% 52% 17%

• 75%

PAT* 12 098 5 119 7 384 182 4 797 6 564 243

• 3
• 144

Group SEA WECA MENA RSA Nigeria Ghana Sudan Iran

56

MTN – Data Sheet part 2 (SEA)

Shareholding 100% 51% 100% 30% 97% 40% License Period (years) 15 15 15 10 20 10 Market overview Population (m) 98.9 47.4 1.8 11.5 1.1 28 9.1 Mobile penetration 40% 74% 60% 9% 24% 9% 4% Market position 2 1 2 1 1 1

• No. of operators

14 3 2 3 1 3 2 Market Size (2011) - million 62.9 48.2 1.6 2.6 0.8 8 1.7 Operational Data Subscribers (000s) 15 517 12 483* 600 187 268 1 595 384 ARPU (USD) 21 23 20 19 20 12 17 Market share 36% 60% 19% 100% 66% 95% SubTotal RSA Botswana Zambia Swaziland Uganda Rwanda

* 2.1 million postpaid

57

SubTotal Nigeria Ghana Cameroon Côte d’Ivoire Congo B Benin

• G. Bissau
• G. Conakry

Liberia

MTN – Data Sheet part 3 (WECA)

Shareholding 82% 98% 70% 68% 100% 75% 100% 75% 60% License Period 15 15 15 20 15 10 10 18 15 Market overview Population (m) 223.9 138.9 22.4 17.1 20.2 3.4 7.7 1.5 9.5 3.2 Mobile penetration 19% 19% 22% 18% 20% 27% 15% 10% 6% 14% Market position 1 1 1 2 2 1 1 1 1

• No. of operators

30 4 4 3 3 2 4 2 4 4 Market Size (2011) - million 74.4 45.6 9.0 5.8 7.7 1.4 2.0 0.3 1.8 0.8 Operational Data Subscribers (000s) 19 622 12 281 2 585 1 783 1 625 280 476 98 276 218 ARPU (USD) 18 18 17 15 18 20 21 12 17 18 Market share 46% 52% 58% 41% 31% 40% 66% 48% 51%

58 SubTotal Sudan Iran Afghanistan Cyprus Syria Yemen

MTN – Data Sheet part 4 (MENA)

Shareholding 85% 49% 100% 100% 75% 83% License Period 22 15 14 20 15 15 Market overview Population (m) 178.0 36.3 69.5 30.9 0.9 18.8 21.6 Mobile penetration 16% 12% 20% 6% 80% 26% 12% Market position 2 3 3 2 2 1

• No. of operators

17 4 3 3 2 2 3 Market Size (2011) - million 79.8 12.5 46.3 5.0 1.0 8.6 6.4 Operational Data Subscribers (000s) 4 912 1 066 154 218 76 2 237 1 161 ARPU (USD) 15 16 9 14 35 17 10 Market share 25% 1% 12% 10% 46% 44%

59

22 25 28 28 22

Mar-03 Mar-04 Mar-05 Dec-05 Dec-06

MTN Subscribers ('000) ARPU (USD)

15,517 12,281 9,148 6,996 5,259

MTN – Regional Growth

4,912 15 Dec- 06 MTN Subscribers ('000) ARPU (USD)

Pre Dec 05, subscribers and ARPU based on 30 day activity window Pre Dec 06, subscribers exclude Investcom operations

Subscribers / ARPU

18 21 37 45 46

Mar-03 Mar-04 Mar-05 Dec-05 Dec-06

MTN Subscribers ('000) ARPU (USD)

19,622 10,908 5,255 2,547 1,468

MENA SEA WECA

60

Structure

MTN Group MTN Holdings MTN South Africa MTN International MTN Mauritius

Mednet 100% Zambia 100% Cameroon 70% Syria 75% Liberia 60% Botswana 51% Rwanda 40% Ghana 98% Guinea Bissau 100% Congo-B 100% Uganda 97% Yemen 83% Cyprus 100% MTN Swaziland 30%

Investcom LLC

100% 100% 100%

Iran 49% Sudan 85% Afghanistan 100% Côte d’Ivoire 68% Nigeria 82% Guinea Republic 75% Benin 75%

100%

Service Providers 100% Network Solutions 100% Network Operations 100%

All shareholdings rounded

Annexure II

62

Balance sheet

Asset analysis

33 948 10 247 29 794 22 928 96 917 Total assets 574 1 540 2 067 6 363 10 544 Other current assets 1 780 1 753 4 114 2 444 10 091 Bank balances (incl. securitised deposits) 2 354 3 293 6 181 8 807 20 635 Current assets 81 388 2 503 2 558 5 530 Other non-current assets 31 490 3 122 3 542 1 951 40 105 Intangible assets (incl. goodwill) 23 3 444 17 568 9 612 30 647 Tangible assets 31 594 6 954 23 613 14 121 76 282 Non-current assets

HQ Companies MENA WECA SEA Total As at 31 December 2006 ZAR Million

63

Balance sheet

Equity and liabilities analysis

2 401 23 2 412 2 838 Non-current liabilities 33 948 10 247 29 794 22 928 96 917 Total equity and liabilities 1 467 413 1 210 1 302 4 392 Interest bearing liabilities (803) 3 798 5 920 6 678 15 593 Non-interest bearing liabilities 664 4 211 7 130 7 980 19 985 Current liabilities 1 328

• 161

1 289 2 778 Deferred taxation 16 658 2 231 3 674 6 024 28 587 Long-term liabilities 20 387 2 254 3 837 7 725 34 203 Non current liabilities 12 897 3 782 18 827 7 223 42 729 Capital and Reserves

HQ Companies MENA WECA SEA Total As at 31 December 2006 ZAR Million

64

(210) (550) Head Office Companies

• 471

Sudan

• 2 033

Other Operations

• 135

Iran 48 4 316 6 371 Nigeria

• 814

Ghana 83 15 981 29 182 TOTAL 58 10 914 17 240 South & East Africa

• 2 639

Middle East & North Africa 87 55

% change

961 2 668 Other operations 5 277 9 853 West & Central Africa 429 1 002 Other operations 10 485 16 238 South Africa*

9 months ended Dec 2005 12 months ended Dec 2006 ZAR million

Operating expenditure analysis

* Including Network Solutions

65

EBITDA analysis

41,3 43,4 100 11 231 22 413 TOTAL 52,2

• 890

Ghana 122 872 1 936 Other operations 51,5 53,5 103 5 599 11 355 West & Central Africa 52,3 57,2 80 4 727 8 529 Nigeria 29,7

• (6)

1 117 Middle East & North Africa (867) (6) (58) Iran 17,4

• 99

Sudan

• 1 076

Other operations 120 271 595 Head Office Companies 44,1 33,9 35,2 Dec 2006 EBITDA margin % 41,3 79 11 231 20 100 EBITDA excl. Investcom 181 358 1 006 Other operations 32,3 67 5 009 8 340 South Africa* 32,9 74 5 367 9 346 South & East Africa Dec 2005 EBITDA margin % % change ZAR 9 months ended Dec 2005 12 months ended Dec 2006

ZAR million

* Including MTN Network Solutions

66

3

• Head Office Companies
• 52

Sudan

• 347

Other Operations

• 15

Iran 85 1 455 2 699 Nigeria

• 124

Ghana 101 2 497 5 030 TOTAL 58 842 1 334 South & East Africa

• 414

Middle East & North Africa 99 43

% change

197 459 Other operations 1 652 3 282 West & Central Africa 98 269 Other operations 744 1 065 South Africa*

9 months ended Dec 2005 12 months ended Dec 2006 ZAR million

Depreciation analysis

* Including MTN Network Solutions

67

• 1

Head Office Companies

• 65

Sudan

• 200

Other Operations

• 19

Iran 65 116 191 Nigeria

• 317

Ghana 404 256 1 289 TOTAL 306 50 203 South & East Africa

• 284

Middle East & North Africa 289 121

% change

90 293 Other operations 206 801 West & Central Africa 11 117 Other operations 39 86 South Africa*

9 months ended Dec 2005 12 months ended Dec 2006 ZAR million

Amortisation analysis

* Including MTN Network Solutions

68

2 607 1 379 26 4 1 31 75 10 472 557 42 598 640

Finance Costs

700 370 16 26

• 42

95 9 11 115 51 122 173

Forex Losses

(557) (295) 897 Head Office Companies (63)

• (33)

Sudan (26) (30) (14) Other Operations

• (44)

(43) Iran (17) (558) (92) Nigeria (7) (27) (15) Ghana (682) (1 198) 1 427 TOTAL (4) (238) 571 South & East Africa (89) (74) (90) Middle East & North Africa (8) (32) (1) (3)

Forex Gains

(6) 156 Other operations (591) 49 West & Central Africa (15) 77 Other operations (223) 494 South Africa*

Finance Income Net Finance Cost ZAR million

Finance cost analysis

* Including Network Solutions

Thank You

www.mtn.com investor_relations@mtn.co.za