Investor Presentation March 2020 Sensitivity: Internal
Agenda 1 Operational Review 2 Strategic Review 3 Financial Update 4 Looking Ahead 2
Operational Review
Leading mobile operator in Nigeria Largest Mobile Operator 64.3 64.3 #1 #1 25.2 25.2 49% 49% NPS mill million ion mill million ion Market subscribers share by Active revenue (2) data users 44% 44% 78% 78% 39% 39% 42% 42% Source: WCIS 4G Population 3G population Data Smartphone coverage coverage penetration penetration Largest fibre network coverage >29,000km 29,000km Exciting data, digital and fintech opportunity Strong management MTNN benefits from strong support with mix of local & international expertise and unmatched expertise of MTN Group , complemented by highly Strong partner ecosystem experienced Board of Directors Largest distribution network Wide range of spectrum holding Source: Company data when not explicitly stated, GlobalData. Notes: Numbers as at 31 December 2019. (1) Company data. (2) Markey share by revenues based on GlobalData, while market share by subs based on NCC. 4
Strong Position in Attractive Market MTN Nigeria is the clear market leader Leader in the Nigerian Telecoms Market with a Strong Competitive Advantage across all Segments Undisputed Market Leader MTNN - Subscriber and ARPU leader Subscriber Market Share in 2019A 2019A #4 Player ARPU (NGN) 1,519 1,000 1,007 1,000 8% Q4 2019 2019 68.8 Total Subs 37% 51.7 50.2 27% in 2019A #3 Player 13.6 28% #2 Player #3 Player #4 Player #2 Player Source: WCIS , NCC and Company Source: NCC. 2019A (2) Revenue Market Share in 2019A 2019A Data Revenue Share in 2019A 2019A Share of Data Users in 2019A 49% 46% 43% 16PP 22PP 26PP 27% 24% 24% MTNN #2 MTN #2 Player MTN #2 Player Source: WCIS. Source: WCIS. Source: NCC. Notes: (1) Based on USD / NGN exchange rate of 360. (2) GSM Internet subscribers. 5
Exciting Market Opportunity Young population & mobile penetration and data usage upside Largest Telecoms Market in Africa Historical (15A 15A-20A CAGR) Forecast (20A (20A-25E CAGR) Mobile subscribers in millions, 2019A Penetration Median Age c.20 million population 90% 191% 94% 103% 79% 19 20 28 41 increase in 5 years 213% - 2019A 181 2.5% (South Africa) 2.3% 2.2% 111% - 2019A 2.1% (Egypt) 108 2024E 96% 100% - 2019A 93 1.4% 1.2% (Kenya) 53 48 2019A 0.4% 90% 0.3% (1) (1) WE WE Nigeria Mobile Penetration Nigeria SA Egypt Kenya Tanzania Nigeria Kenya SA Nigeria Kenya SA Source: WCIS. Source: CIA Factbook (median age) and Worldmeters (population growth). Source: WCIS. Revenue Total Data Users (m) Data Usage (MB per user per month) Data Revenue Contribution 2019A 54 67% 1,737 44 57% Active 25 Users (2) 1,263 19 31% Incidental / Dormant 29 25 Users (1) WE 2018A 2019A 2018A 2019A Nigeria South Africa Source: Company data. Source: WCIS. Notes: (1) Countries include Belgium, France, Ireland, Luxemburg, Monaco, Netherlands, United Kingdom (as opposed to full Western Europe). (2) Data subs with usage > 5 Megabytes per month. 6
Well-positioned for the Long-term Unmatched nationwide coverage and high quality network Leading M Mobile Network Coverage by Population Kano 2 1 4G Coverage (44%) 3 Most expansive network coverage amongst peers 3G Coverage (78%) Abuja Best Coverage 2G Coverage (88%) Best network quality with highest NPS amongst peers in the country (1) #1 #1 Source: Company data Lagos Network NPS Port Harcourt The Largest Fibre Network in Nigeria Extensive own fibre backbone supports 4G and MBB (2) growth On-land Fibre in km vs. Competition (3) On >29,000 Span across Nigeria 10,869 Over 29,000 km of fibre network, nearly 3x that of closest competitor rd party partnerships Further complemented with 3 rd #2 Player Wide Range of Spectrum Holdings Frequency Clear 4G spectrum advantage over peers 3,500MHz 1x30 2x30 – Only MNO with 2,600MHz spectrum – Only MNO with 3,500MHz spectrum with nationwide coverage 2,600MHz 2x30 – Unlocked 800MHz spectrum 2,100MHz 2x10 2x10 2x10 2x10 – 4G+ rolled out in Lagos, Abuja and Port Harcourt 1,800MHz 2x15 2x15 2x15 2x15 2x15 – Best positioned to provide 5G services having successfully 900MHz 2x5 2x5 2x5 2x15 2x5 done a pilot 800MHz 2x10 2x10 2x10 700MHz 2x10 2x10 Source: Company data, NCC, Ookla Speed Test. Notes: (1) Benchmarking vs. peers can be found on MTN Nigeria GSM/ 3G/ LTE Network Coverage page. (2) Mobile broadband. fibre network based on company data, while #2 player based on broker 7 research report as of May 2019.
Leading Commercial Proposition Leading commercial proposition allows MTNN to attract customers across all segments and focus on high value segment Largest Distribution Network Nationwide Leading Brand in Africa Multichannel Customer Service MTN USSD & MyMTN App Call Centre Largest Physical Distribution Aspirational brand supporting premium positioning Network in Nigeria High impact media visibility #123# +1m +1m Social responsibility +950 +9 50m m 7.9m 7.9m retail touchpoints MTN USSD App transactions Super-agent Retail Stores Network Enabler of subscriber acquisition strategy 3.8m 3.8m Comprehensive Most Valuable Best Innovation Telco Partner of Customer Care visits Multinational for Enterprise the Year (2019) Brand in Nigeria Service (2019) 108k 108k Fast Growing Central Bank of (2019) and Most and Social Digital Distribution Nigeria (CBN) +6.6m +6.6m agents Valuable Impact Award Telecoms in (2019) MTNN PoS social media ATMs USSD Nigeria (2019) App terminals Nigeria Tech followers Top 50 Brands Innovation and Social Media, MyMTN MTN Interactive Nigeria Telecom Awards (mobile app), MTNlive Voice Response (NTITA) Focus on efficiency & customer convenience Optimised Proposition for Retail and B2B Clients Relevant, value for money proposition Digitised, personalised customer experience Differentiated digital offering Unique end-to-end customer journey Personalized experience Source: Company data. 8
Balanced Structure with Versatile Team Chief Finance Officer Executive: Human Resources Combined telco experience of Modupe Kadri Esther Akinnukawe over 200 years Joined MTN: 2007 Joined MTN: 2012 Years of telco experience: 12 Years of telco experience: 7 Deep local expertise and Governance Focus Company Secretary experience of about 170 Uto Ukpanah Introduced to focus on governance, Joined MTN: 2005 years, combined with a effective stakeholder management and Years of telco experience: 14 geographically diverse track operational execution in times of crises record across the Africa and Chief Risk and Compliance Executive Corporate Relations Middle East telecom industry Cyril IIok Tobechukwu Okigbo Chief Executive Officer Joined MTN: 2002 Joined MTN: 2017 Ferdi Moolman Years of telco experience: 17 Years of telco experience: 13 Seasoned team with Joined MTN: 2001 successful track record, Years of telco experience: 18 Head, Internal Audit Chief Operating Officer having driven robust Mazen Mroue Ibe Etea turnaround at MTNN over the Joined MTN: 1998 Joined MTN: 2019 Years of telco experience: 21 Years of experience: 17 last two years Refreshed organisation Mohammed Rufai Randy Bikraj Adekunle Adebiyi Kolawole Oyeyemi allows to drive strategy and Chief Technical Officer Chief Information Exec, Sales and General GM, Customer Officer Distribution Experience run operations in a more 16 years at MTN 16 years at MTN 7 years at MTNN 17 years at MTN efficient way Lynda Saint- Nwafor Ugonwa Nwoye Rahul De Emerging Future Chief Enterprise Executive, Customer Chief Marketing Officer Business Focus Business Officer Services Significant improvements in 8 years at MTN Experienced team with 17 years at MTN 16 years at MTN corporate governance focus on emerging and coupled with highly Srinivas Rao Olubayo Adekanmbi Usoro Usoro future business, Executive, GM, Mobile Financial Chief Digital Officer experienced Board of namely Fintech and Transformation Office Services 14 years at MTN Directors Digital 8 years at MTN 7 years with MTN 9
Key Milestones Key Highlights & Challenges in 2019 ▲ Launched very affordable smart ▲ Obtained approval to utilize ▲ Paid first dividend as a ▲ Conducted trial of 5G technology feature phones to drive data 800MHz spectrum public company ▲ Launched MusicTime usage ▲ Included in MSCI 1 frontier index ▲ Rolled out 4G+ services in Lagos, ▲ Redeemed preference shares ▲ Obtained investment grade credit Abuja and Port Harcourt ▲ Obtained platinum accreditation ratings - Agusto & Co (AA+) and ▲ Revamped our data prices from Investor in People (IiP) GCR (AA) resulting in accelerated usage ▲ Deployed additional devices for ▲ Listed on the Premium Board of subscriber registration the NSE ▲ Obtained Super-Agent license ▲ Secured N200bn 7-year medium ▼ Embarked on a SIM re- term loan facility registration exercise ▼ Made final payment for the 2015 ▼ Rise in xenophobic attacks and fine impact on operations ▼ Migrated subscribers from high tariff legacy plan to lower tariff plan Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Notes: (1) MSCI - Morgan Stanley Capital International 10
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