Scancom PLC (MTN Ghana) 2020 Annual Report

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mtn.com.gh Contents

Who we are 01 03 About this report 04 Notice to annual general meeting 08 Dividend declaration 12 All about Scancom PLC (MTN Ghana) One click access to 13 What we offer everything MTN. 14 Repositioning our strategy Top-up your airtime and buy data bundles with ease on the myMTN app. Download the myMTN app from the App Store or Google Play today and get 16 Investment case 50MB free data and experience one click access to all MTN services. We’re good together everywhere you go Operational performance for 2020

02 20 Salient features mtn.com.gh 22 Chairman’s statement 28 Chief executive officer’s review 32 Chief finance officer’s review

03 Y'ello Hope 40 Our response to COVID-19

04 MTN Ghana Foundation 44 MTN Ghana Foundation

Our technology modernisation project 05 48 Our technology modernisation project

Buil2025d the strategic priorities: Drive Drive Drive largest Accelerate portfoAliccoelerate portfoAlicco elerate portfolio industry-leadiindung stry-leadiindung stry-leading & most valuable transformatiotnransformatiotnransformation connectivity opecrBauildotinno thene sclatirgvestit y opecraotinnoDnrievsceti vity operatiCorneaste Accelerate platforandm mosst valuable industry leading shared value portfolio platforms connectivity transformation operations 06 Corporate governance Besttalent, culture & Besttalent, culture & Technology Technology ValueLebaadsiendgccauOpsittoaumel r rmaValuetberialased cap EsiStaGtlakVaeholdelue based carpEs:iStGal ValuOe btheasedrca piEciStaGons:l future skills future skills platforms second to platforms second to 52 Our Board of Directors allocaetixpoenrience allocationatthe core allocatioantthe core allocationatthe core atthe core none none 56 Our management team Subscribers/ www.mtn.com 59 Statement on corporate governance RelatioLenashdieprsshipInMTNtegrRitey peoplelationshInnipsovatiInotnegriRtcusyelatitoomenshInniprsovationCanR-eDlaotionshInnipsovationCan-Do Innovation LA Limited assurance obtained 36Investment 36 36 community Civil society 5Y Five-year review

Governments 07 Financial statements and key reports and regulators COVID-19

62 Report of the directors 65 Audit and risk committee report 67 Report of the independent auditor to the members of Scancom PLC 72 Statements of comprehensive income 73 Statements of financial position 74 Statements of changes in equity 75 Statements of cash flows 76 Notes 144 Five year financial summary (2016 – 2020)

Shareholder information 08 148 Stock exchange performance 148 Director’s shareholding 148 Number of shares in issue 149 Top twenty shareholders 150 Shareholders’ diary 150 Forward looking information 151 Administration About this report

This annual report is Scancom PLC’s (MTN Ghana) primary communication to all stakeholders and aims to enable them to make an informed assessment of our performance and prospects.

It endeavours to provide a balanced review of the Non-financial information material matters we face; our use of the capital We use local and global standards and guidelines as defined by the Securities Industry Act, 2016 to compile non-financial information. These include (Act 929) and Companies Act, 2019 (Act 992); our the GSE Rulebook, the Companies Act, 2019 key operational, financial, economic, social and (Act 992), the Securities Industry Act, 2016 (Act 929), environmental performance; how we are governed; SEC Regulations 2003 (L.I 1728) and other guidelines our engagement with stakeholders; as well as our issued by the National Communications Authority. risks and opportunities. In short, it is our value- Approval by the Board creation story. The report was prepared under the supervision of Scope and boundary CEO, Selorm Adadevoh and Ag. CFO, Kobina Bentsi- Our material matters, as well as our strategy, form Enchill. The audit committee ensures the integrity the anchor of the report and determine its content. of the report and has applied its collective mind to It covers the period 1 January to 31 December 2020, its preparation and presentation. The directors are and gives commentary, performance measures and responsible for the annual report as a whole, which prospects for MTN Ghana’s operations. We provide they approved in May 2021. supplementary information in associated reports and the full set of annual financial statements (AFS), at the Investors page on MTN Ghana’s website (mtn.com.gh/investors). Selorm Adadevoh Kobina Bentsi-Enchill Financial information Chief executive officer Ag. Chief financial officer We apply International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and interpretations as issued by the IFRS Interpretations Committee. We comply with the annual filings requirements of the SEC Regulations 2003 (L.I 1728) and Securities Industry Act, 2016 (Act 929) as issued by the Securities and Exchange Commission (SEC). We also comply with the Ghana Stock Exchange (GSE) Rulebook and the requirements of the Companies Act, 2019 (Act 992). 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 03 Notice of annual general meeting

SCANCOM PLC (MTN GHANA) NOTICE OF 2021 VIRTUAL ANNUAL GENERAL MEETING OF SHAREHOLDERS

NOTICE IS HEREBY GIVEN THAT the 3rd Annual General Meeting (“AGM”) of Shareholders of Scancom PLC (“MTN Ghana” or the “Company”) will be held VIRTUALLY and streamed live on https://mtnghagm.com from the Company’s Head office at MTN House, Independence Avenue, Accra on Tuesday, 25th May 2021 at 11am to transact the following business:

ORDINARY BUSINESS 1. To receive and consider the Audited Financial Statements together with the reports of the Directors and Auditors thereon for the year ended 31st December 2020;

2. To declare a final dividend for the year ended 31st December 2020.

3. To re-elect / appoint the following Directors:

3.1 To re-elect the following Directors of the Company retiring by rotation;

• Dr. Ishmael Yamson

• Mr. Ebenezer Twum Asante; and

• Ms. Fatima Daniels

3.2 To re-elect the following Directors appointed on 1st March 2021;

• Mr. Felix Addo

• Ms. NanaAma Botchway

• Mr. Kofi Nkisah Dadzie

• Ms. Rosemond Ebe-Arthur

3.3 To appoint Ms. Tsholofelo Molefe as a Director.

4. To appoint Messrs. Ernst & Young (EY) as Auditor to hold office from the conclusion of this Annual General Meeting.

5. To authorize the Directors to fix the remuneration of the Auditor for 2021.

6. To approve the payment of Directors’ fees for the financial year 2021.

SPECIAL BUSINESS 7. Special resolution by Shareholders to amend the Company’s Constitution to increase the maximum number of Directors from ten (10) to twelve (12).

DATED THIS 3RD DAY OF MAY 2021 BY ORDER OF THE BOARD

SIGNED

2020 Annual Report Annual PLC 2020 (MTN Ghana) PALA ASIEDU OFORI (MRS.) (COMPANY SECRETARY) Scancom Scancom 04 NOTES

1. VIRTUAL ATTENDANCE This Annual General Meeting (AGM) of Shareholders shall be held virtually and attendance shall be by online participation by accessing https://mtnghagm.com/. Alternatively, Shareholders who do not have smart phones may participate in the AGM by (i) dialing +233 244300025; (ii) entering the access code 8000; and (iii) entering the conference pin number 056789.

2. PROXY / PROXY FORMS 2.1 A Shareholder entitled to attend and vote at the AGM may appoint a proxy to attend virtually and vote on his/her behalf. Such a proxy need not be a Shareholder of the Company. 2.2 The appointment of a proxy will not prevent a Shareholder from subsequently attending and voting at the AGM virtually. Where a Shareholder himself/herself attends the meeting virtually, the proxy appointment shall be deemed to be revoked. 2.3 A copy of the Proxy Form may be downloaded from https://mtnghagm.com/ and may be completed, signed and sent via email only to [email protected] as soon as possible and in any event not less than 48 hours before the time appointed for the meeting.

3. ACCESSING AND VOTING AT THE AGM 3.1 Access to the meeting will be made available from 9am on 25 May 2021. Kindly note however that the AGM shall commence at 11am. Access to the AGM is set out in note 1 above. 3.2 A unique token number will be sent to Shareholders by email and/or SMS from 4 May 2021, to grant access to the AGM. Shareholders who do not receive this token may contact [email protected] or call 0545823198, 0545822865 or 0545822920, before the date of the AGM, to be sent the unique token. 3.3 Shareholders who do not submit proxy forms to [email protected] prior to the meeting, may vote electronically during the AGM using their unique token number. 3.4 Shareholders participating in the AGM by dialing as set out in note 1 above, may dial USSD code *899*0# to cast their votes. 3.5 Further assistance on accessing the meeting and voting electronically can be found on https://mtnghagm. com/

4. 2020 AUDITED FINANCIAL STATEMENTS Pursuant to Section128 (3) of the Companies Act 2019, Act 992, the Directors must present to Shareholders at the Annual General Meeting the Financial Statements, alongside report of the Directors, and report of the Auditor (PwC) on the financial statements of the Company for the 2020 Financial Year. The Shareholders are required to receive and consider the Audited Financial Statements together with the reports of the Directors and Auditor thereon for the year ended 31st December 2020.

5. ORDINARY RESOLUTIONS 5.1 Ordinary Resolution 1 - Dividend Payouts Section 76 of the Company’s Act provides for the approval by Shareholders of dividends recommended by the Board of Directors. At the February 23, 2021 Board Meeting, the Directors resolved and declared a final dividend of GHS 0.05 per share for the Financial year 2020. Together with the sum of GHS 0.03 per share of interim dividend declared for 2020, the total dividend for year 2020 is GHS 0.08 per share, at a dividend payout ratio of 70.49%. Shareholders are by this resolution requested to approve the dividend recommended by the Directors. 2020 Annual Report Annual PLC 2020 (MTN Ghana)

Resolution 1: Ordinary Resolution of Shareholders to approve a final dividend of GHS 0.05 per share for the Financial year 2020 Scancom Scancom 05 NOTES continued

5.2 Ordinary Resolution 2- Re-election / Appointment of Directors 5.2.1Re-election of Dr. Ishmael Yamson. Mr. Ebenezer Twum Asante, and Ms. Fatima Daniels retiring by rotation. Pursuant to Sections 325(a) of Act 992, one third of the Directors are required to retire from office at each AGM, but each retiring Director is eligible for re-election at the said AGM. Accordingly, Dr. Ishmael Yamson, Mr. Ebenezer Twum Asante and Ms. Fatima Daniels who are required to retire by rotation at this AGM and being eligible for re-election have offered themselves for re-election.

Resolution 2.1: Ordinary Resolution of Shareholders to re-elect Dr. Ishmael Yamson as Director of Scancom PLC Resolution 2.2: Ordinary Resolution of Shareholders to re-elect Mr. Ebenezer Twum Asante as Director of Scancom PLC Resolution 2.3: Ordinary Resolution of Shareholders to re-elect Ms. Fatima Daniels as Director of Scancom PLC

5.2.2 Re-Election of Independent Non-Executive Directors (INEDs) On March 1, 2021, four (4) Independent Non-Executive Directors were appointed by the Board of Directors to the Board of the Company. Pursuant to Rule 36 A of the GSE Listing Rules, Directors so appointed are required to hold office until the next AGM where they are eligible for re-election.

Resolution 2.4: Ordinary Resolution of Shareholders to re-elect Mr. Felix Addo as a Director of Scancom PLC Resolution 2.5: Ordinary Resolution of Shareholders to re-elect Ms. Rosemond Ebe-Arthur as a Director of Scancom PLC Resolution 2.6: Ordinary Resolution of Shareholders to re-elect Ms. NanaAma Botchway as a Director of Scancom PLC Resolution 2.7: Ordinary Resolution of Shareholders to re-elect Mr. Kofi Nkisah Dadzie as a Director of Scancom PLC

5.2.3 Appointment of Ms. Tsholofelo Molefe as a Director Following the resignation of Mr. Ralph Mupita effective 25 May 2021 from the Board of Scancom PLC, Ms. Tsholofelo Molefe is recommended by the Board of Directors for appointment as a Director.

Resolution 2.8: Ordinary Resolution of Shareholders to appoint Ms. Tsholofelo Molefe as a Director of Scancom PLC

5.3 Ordinary Resolution 3 - Appointment of Messrs. Ernst & Young (EY) as Auditor of Scancom PLC effective May 25, 2021. Pursuant to Section 139 (11) of Act 992, an Auditor shall hold office for a term of not more than 6 years and is eligible for appointment after a cooling off period of not less than 6 years. Consequently, Messrs. Ernst & Young (EY) are to be appointed as Auditors in place of PwC (who have been the Auditors of Scancom PLC for over 6 years) effective the end of this AGM dated May 25, 2021.

Resolution 3: Ordinary Resolution of Shareholders to appoint Messrs. Ernst & Young (EY) as Auditors of Scancom PLC effective May 25, 2021 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 06 NOTES continued

5.4 Ordinary Resolution 4 - Authorization of the Directors by Shareholders to fix the remuneration of the Auditor for 2021. Pursuant to Section 140 (1)(c) of Act 992, the remuneration payable to an Auditor of the Company shall be fixed at a meeting of Shareholders by ordinary resolution of the Company or in a manner that the Company by ordinary resolution may determine.

Resolution 4: Ordinary Resolution of Shareholders to Authorize Board of Directors to fix the remuneration of the Auditors for 2021

5.5 Ordinary Resolution 5 - Approval of Directors’ fees for the financial year 2021. Pursuant to Section 185 (1) of Act 992, the fees and any other remuneration payable to Directors shall be determined by ordinary resolution of the Company. The amount of GHS 2,260,606 is proposed subject to overruns in the event of ad-hoc meetings that may be required in the course of the year.

Resolution 5: Ordinary Resolution of Shareholders approving the amount of GHS2,260,606 to be paid to Board Chairman and Independent Non-Executive Directors of Scancom PLC

6. SPECIAL RESOLUTION Special Resolution - Approval by Shareholders for the amendment of Clause 57 of the Company’s Constitution to increase the limit on the maximum number of directors from ten (10) to twelve (12). Pursuant to section 30 of Act 992, a special resolution of Shareholders is required to amend the Constitution of the Company. Shareholders’ approval is thus being sought to amend the Clause 57 of the Constitution of Scancom PLC. to increase the maximum number of directors from 10 to 12 to enable the Company to comply with the SEC requirements on the composition of the Board of Directors of Listed Companies.

Resolution 6: Special Resolution of Shareholders approving the amendment of Clause 57 of the Company’s Constitution to increase the limit on the maximum number of directors from ten (10) to twelve (12) 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 07 Dividend declaration

Final dividend recommendation

Notice is hereby given that the company’s directors will be recommending to the shareholders at the annual general meeting to be held on 25 May 2021, the payment of a final dividend of GH¢ 0.05 per share for the 2020 financial year. This brings the total dividend for the full year to GH¢ 0.08 per share. This is subject to deduction of appropriate taxes. The number of ordinary shares in issue at the date of this declaration is 12,290,474,360. Scancom PLC’s tax reference number is C0003632776. In compliance with the requirements of GSE rules, the salient dates relating to the payment of the dividend are as follows:

Ex-Dividend Date Wednesday, 12 May 2021 Qualifying Date Friday, 14 May 2021 Dividend Payment Date Friday, 4 June 2021 All shareholders registered in the books of Scancom PLC at the close of business on Friday, 14 May 2021 will qualify for the final dividend. In view of the foregoing, the ex-dividend date has been set as Wednesday, 12 May 2021. Consequently, an investor purchasing MTNGH shares before this date will be entitled to the final dividend. However, an investor buying MTNGH shares on or after Wednesday, 12 May 2021 will not be entitled to the final dividend. On Friday, 4 June 2021 the dividend will be transferred electronically to the bank accounts or Mobile Money wallets of shareholders who make use of these facilities. The dividend statement was approved by the Board of Directors on 23 February 2021 and signed on its behalf by:

Ishmael Yamson Selorm Adadevoh Chairman Chief executive officer 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 08 Keep your MTN Number4lyf. Dial *1390# to reserve your phone number with MTN Number4Lyf and keep it forever.

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Who we are A m b i ti o n 2025 A | m F r b i a ti m o n i n 2025 g o u r | All about Scancom PLC (MTN Ghana) s F r A t r A A A “ E “ E

MTN Ghanac is a leading telco operatorc in Ghana. From our c a o nn e o nn e o nn e mb i mb i mb i m i i i a headquarters in Accra, we offer voice, data, mobilev financial and other v ndu s ndu s ndu s t e e m digital services to our 24.4 million* customers across all regions. e r r ti ti ti y y b g i b b Our vision is to leadc the delivery of a bold new digital c MTN Ghana is part of the MTNc Group, a leading o n o n o n i ti ti ti o d o d

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our customers’ lives a whole lot brighter. We are at belief that everyone deserves the benefits of a ti 2025 : 2025 : 2025 : r y r y r y g i i i

the forefront of technological and digital change. In modern connectedy life. MTN Group has operations in y t t t p 2020, we investedy GH¢1,489 million^ in our network. y 21 countries in Africa and the Middley East. d d - - - o

o o p o p o p l l l r i Scancom Ltd (MTN Ghana) was incorporated in 1994 We are committede to the economic growth and e e e e s s u

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^ Capex under IFRS 16 is n made up of core capex spend of GH¢858.5m, intangiblesn of GH¢539.0m (Network licence, Software, etc) and rightn of use (RoU) assets of d d t GH¢91.8m for the period.t t o o o

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What we offer MTN Ghana leads the data market with 10.8 million# subscribers as at December 2020.

The growth in data market share is largely attributable to effective market propositions, rich content and value- we Who are added services, video push and MTN’s smart device drive, lifestyle-based propositions and packages as well as partnership models within the data ecosystem. The various products and services offered by MTN Ghana to retail and corporate consumers include the following: Products and services

Enterprise/ Consumer Wholesale MTN Mobile Money We connect people and As a committed partner to MTN Ghana launched its communities through voice small, medium and large Mobile Money service in July (postpaid and prepaid), private enterprises and 2009 in partnership with messaging and data-access the public sector, we drive nine banks, and was the first services; we enable people to agility and growth through telco in Ghana to do so. By make financial transactions connectivity, communication December 2020, we had 17 using their mobile and collaboration solutions over partner banks and about phones and bring them world-class infrastructure. This 10.6million* active users entertainment and online includes unified communication on the MTN Mobile Money platforms, apps and online (voice, messaging and video), platform and over 206,000 ventures through lifestyle, cloud and hosting services, active agents nationwide. mobile financial services connectivity, managed mobility Services offered on this and e-commerce offerings. (the internet of things) and platform include money Products in this segment security. Products in this transfer; airtime top up; bill are voice services, fixed line, segment include MTN dedicated payments; general payments; MTN Shortz, MTN Protect, internet, MTN corporate postpaid bulk payment payroll; school MTN fibre broadband, data packages, MTN asset tracking, fees payment; savings and and internet solutions, MTN MTN leased lines, MTN vehicle investment; international vehicle tracking, MTN Care tracking, MTN smart cam, MTN remittances; link to bank 24/7, MTN radio, iStream eazifon, MTN SME plus, MTN account; insurance and ATM TV, MTN Play, MTN Xtratime, directory services, MTN fibre cash-out. Music Plus, MTN Video Plus, broadband, MTN business caller MTN online school. tunez, MTN multi-caller services, MTN cloud services, MTN global (MPLS) vpn, MTN co-location hosting/ data centre services and MTN APN SIM. 2020 Annual Report Annual PLC 2020 (MTN Ghana)

Due to ongoing discussions on the potential change in regulatory subscriber definitions, subscriber data in this report will be limited to the MTN Group definition Scancom until the regulatory definitions are finalized. 13

# Active data subscribers as per MTN Group definition are data subscribers who have used more than 5MB in a month. * Aligned with the MTN Group definition, subscribers are SIMs which generate or participate in an event that generates revenue for the company. Repositioning our strategy - MTN Group perspective

MTN has always had an ambitious and pioneering Group’s risk profile and Holdco leverage have been spirit. For more than a quarter of a century, we have brought into sharper focus. The pandemic has also played a bold and prominent role in accelerating highlighted the opportunities presented by the shift Africa’s development. When we started our journey, it in the global operating environment. These factors was our ambition to brighten lives through the power inform the case for change and the need to revise of connectivity, and this continues to be a priority our strategy. In light of the digital acceleration taking for us. Africa is young, dynamic and ambitious. place globally, MTN recognises the opportunity to We see an opportunity to continue harnessing win in digital services in our markets as customers the power of MTN – not only through our brand come online for the first time. In so doing, there is strength, our footprint and best-in-class connectivity also an opportunity for MTN to align our priorities infrastructure, but by offering technology platforms more closely with the development agendas of our that are second to none, through Ambition 2025, operating markets. our integrated platform strategy. This is an evolution Our revised strategy, Ambition 2025, is anchored from the BRIGHT strategy, which enabled us to lead in building the largest and most valuable platform the race to connect Africa and its people, towards business with a clear focus on Africa. This will accelerating and delivering a range of platforms to rest on a scale connectivity and infrastructure further digitise the lives of all. business, making use of both mobile and fixed In November 2020 we completed a comprehensive access networks across the consumer, enterprise review of our strategy, resulting in a repositioning of the and wholesale segments. The implementation of business for sustained growth and greater relevance this growth strategy will be accelerated through to 2025. MTN has built strong core operations, which selective partnerships and leveraging MTN’s brand are underpinned by the largest fixed and mobile as the most trusted and valued in Africa, while it will network in Africa; a large, connected, registered be supported and funded through enhanced cost customer base; an unparalleled registration and and capex efficiencies. The execution of Ambition distribution network as well as one of the strongest 2025 is embodied in four clear strategic priorities. brands in our markets. This is our starting point. In We have identified five vital enablers to assist in the wake of COVID-19, the challenges of reducing the operationalising our strategy.

The case for change

Challenges Opportunities Ambition 2025 |A Fmrambitiionng 2025our sA t|rm aFtbreamitigiocin np •g2025rR ioeducurinrtigA ts|ehmet sGFrr oabrupamti’stie rigsok ipnncro fgi2025ple roiuor• i sti|Tta ekrFea sard tamvaentgagiecn of gtphe roshiourt rwi ntisdotwer oasf o tpeporgtuincity tpo wrini ion drigiittial seersvic es as customers come online for the first time • US dollar debt level at Holdco • The global operating environment is shifting in the wake of COVID-19 – de-globalisation and digital acceleration • MTN is well positioned to partner with nation stated in socio-economic progress • Reveal and crystallise value

Be“Elvieef rsytabteomdeyndt eserves thBeel“ibeEfevsnetaertyfiebmtsoedontyf ademseordveersnthc“oeEnnvbeeernycebtefiodtdsliyofdefe”asemrvoedsethrn“eEcvobennernyebficottdesydodlifefaes”merovedserthnecobnnenecfittesdoliffae”modern connected life” Ambition AStmbrateigtiicoint 2025ent : “LeadinSgtrA adtmbeiggiitciatiinlo tsoenn l2025tution:s “ fLoear AfdinArigmbc ad’isgi tipitoraonl g so2025reluss”ti:o “nLsea fodri nAfAgmbri dcigaitii’stoa pnl r soo2025gluretiss”o: “nLsea fodr iAfngri dciag’ist aplr sooglruetiss”ons for Africa’s progress” Belief statement “Everybody deserves the benefits of a modern connected life”

Strategic intent Ambition 2025 “Leading digital solutions for Africa’s progress” Build the Build the Build the Drive Drive Drive Drive largest largest largest Accelerate portfolio Accelerate portfolio Accelerate portfolio Accelerate portfolio industry-leading industry-leading industry-leading industry-leading valuable & most valuabBuildle the larg&estm ost valuabtlerDan rives formation Crtearante sformation Accteleranrates formation transformation connectivity operations connectivandity mosopet vraluableationsconnectiviindustrty opye leadingrationsconnectivitshay orpede vraaluetions portfolio 25 25 platforms connectivity operations transformation platforms Strategic platforms platforms strategic priorities strategic

pr Report Annual PLC 2020 (MTN Ghana) iorities priorities

Vital enablers Leading Best talent, Value based ESG at the Technology customer culture and capital core platforms Besttalent, culture & Besttalent, cultureexperien& ce Besttalent, cfutuultruer skillse & BTeesctthnaleoallonlotcg,ation yculture & Technology second to noneTechnology Leading customer LVealduiengbacusestdocmeaprital ESG Value based capital ESG

Scancom Scancom VaLleuaedbinagsecdusctaopmeitalr ESG Value based capital ESG fVutituarleesnkiallbslers Viftuatluerneasbkillelsrs future skills platformfsustuecreonskdiltlos platforms second to platforms second to experience Values alleoxcpaetiroiennce Leadership attehaxllepoeccroaiertienoIcnnneovation aRllttelationshipsohceaticorne Integrityattllohceactioorne Can do atthe core 14 none none none Repositioning our strategy - MTN Group perspective continued

Growth platforms, underpinned by Africa’s largest connectivity network Who we we Who are As part of Ambition 2025, we want to build five scale platform businesses on top of a very strong connectivity network. The platforms are at different levels of maturity, with – at one end – the fintech platform, which is relatively mature, and – at the other end – the API marketplace, Chenosis, which we launched last year.

• Fintech – We have built a scale fintech business, – workloads moving to the cloud – we see but we have ambitions to double the size of the opportunity to create a significant and scale platform over the next three to five years and enterprise business. broaden the product proposition, moving from • NaaS – We see opportunity to improve the payments to lending to insurance to savings. economics of our businesses across markets by • Digital – We see the opportunity for mobile extending our well-invested networks to support commerce where the fintech business intersects other players in certain markets. with our ayoba business. • API marketplace – We look to aggregate APIs to • Enterprise – In recent years we have focused accelerate the digital ecosystem expansion and on connectivity: building and indexing up ultimately monetise them over time. on enterprise. With increasing industrial IoT Build the Build the Drive Drive Drive largest Drive largest Accelerate poirAndutfccoelileosrattrey p-olertfaodlioingAccelerate portfolio Accelerate portfolio industry-leadinindug str&y-mleoastdvinagluabindules try-leadtirnangsformation vaclouabnnecltiev ity o&pemraFotiinsoTtnechvsaluable Digital cEontnnerpriseectivity operaNtietownortsrkan as asformationAPItransformation 25solutions servicestransformaservitiocesn service (NaaS) marketplace connectivity oppleartaftioronmcsonns ectivity operations 25 strategpiclatforms priorities One network One API layer Besttalent, culture & One data lakeTechnology Value based capital ESG Besttalent, culture & future skills Besttalent, cultureL&eading cusBtoemesttarlent, culture & platforms second to Value based cTaepcihntalology ESTGechnology Vital enabLeleadrsing cuastlloomecatiron atthe core futureVaslkuiellsbased capital ESG Valufuetubraeseskdilclsapital EnSoGne platforms second to future skills exper ience Techn ology allocaptiloantforms seco nd to atthe core Value based capital • Peaxypmeernietnsce ESG • Messagaingllocation • Unified Coamllaomttcashtieocnore • Open mobile atthe core • Aggregate platforms second to none none • Lending atthe core • Social media • IOT • Fixed as a service • Exchange none • Insurance • User generated • Cloud • Edge and DC • Monetise Integrity Relationships content Innovation Can-Do Value• sSLaveaingdership Leadership Integrity • SIDn-tWegArNitRyelationships • CloudR elationsInnhiposvation InnovatiCoann-Do Integrity • AdvertiRseinglationships Innovation communication Can-Do • m-commerce Relationships Innovation Can-Do 36 The platform strategy is about creating solutions that not only address opportunities but tackle the challenges of the continent. This enhanced platform strategy centres on the four strategic priorities below. This unpacks our strategy, together with our ambitions that we are projecting forward over the next three to five years:

Str&amtoesgt vicalu pablrieo rities St&ramtoesgt viaclu pablrieo rities Priorities platforms Objectives platforms MTN Group Ambition 2025 Ambition 2025: “Leading digital solutions for AfDririvce a’s progress” Drive Industry-leading Industry-leading Prcioonnritieectisvity Objectives PrioritiesMTN today Objectives Ambition 2025 MTN today “Everybody deserves the beneﬁts of a modern connected lif•eP”ivot from a ‘product’ to ‘platform’conn plaecytivity • 100m MoMo users operations Accelerate portfoliooperations Build the • Selective partnerships to accelerBuatiled gthreowth • 100m ayoba users largest • Ftinrtanech | sDifgoitalr | mEnteraptrisoe |n NaalaSrg |e AstPI • #1 NaaS platform in Africa Build the largest Satn&rCdarm emotaoetesgtsvitac lu pablrieo rities marketplace Str&Caremtaoetesgt vicalu pablrieo rities valuable platfoplrshmaatrfseodrm vaslue plshaatrfeodrm vaslue Ambition 2025: “Leading digital solutions for AfDririvce a’s progress” Drive Industry-leading Industry-leading PrAAioccccreietilleeerrasattee ppoorrtftfoolilioo Objectives PrcAAioccoccnnreietileleeecrrtiasaMtvteiet T pypN oor rttftfooodliliaooy Objectives Ambition 2025 MTN today “Everybody deserves the beneﬁts of a modern ccoonnnnectiveityc ted lif•eD”oubling of consumer mobile data • +200m active data users otrpaetnrsaftinosorfmnosramtionation Accelerate portfolio otrpaetnrsafntiosorfmnosramtionation Build the • “Own the home” Build the • +10m home broadband users

^ Ovlaer rgthreee yesatrs, o 2020 base • Leading FibreCo in Africa ^ Ovlaer rgthreee yesatrs, o 2020 base • +US$500m investment over medium-term ^^ Excludes the R15bn achieved to March 2020 transformation^^ Excludes the R15bn achieved to March 2020 Drive industry-leSatd&Crariemntaoetgesgt viaclu pablrieo rities St&Craremtaoetesgt viaclu pablrieo rities • Digital transformation | Step chan37ge in • US$357m of expense savings | #1 NPS shared value 37 plshaatrfeodrm vaslue efficiencies and service levels platforms connectivity operations Technology Ambition 2025: “LeadVianluge dbaisgeidtacal psoitallutions for AfDririvEceSaG’s progress” Drive Industry-leading platforms second toIndustry-leading PrAAiccoccreeitilleeerrasattee ppoorrtftfoolilioo Objectives PrcAAioccoccnnreeitileleecerrtiasaMtvteiet T pypN oor rttftfooodliliaooy Objectives Ambition 2025 MTN today allocation attcohnneecctiovirtey • Step-change in ESG positioning of the Group • Top quartile ESG ratings otrpaetnrsafntiosorfmnosramtionation Accelerate npoonretfolio otrpaetnrsafntiosorfmnosramtionation

Build the • Broad-based ownership and inclBuusiildonth aecross • Broad-based ownership and i nclusivity Report Annual PLC 2020 (MTN Ghana)

^ Ovlaer rgthreee yesarts, o 2020 base markets ^ Ovlaer rgthreee yesarts, o 2020 base achieved ^^ Excludes the R15bn achieved to March 2020 transformation^^ Excludes the R15bn achieved to March 2020 &Cremaotest valuable • C&remaotest valuable • Sentiment shift through stakehold37er Reputation Index ≥ 75% 37 Create shared vapllsuhaaetrfeodrm vaslue management efforts plshaatrfeodrm vaslue Drive Technology Drive

Value based capital ESG Scancom Relationships InnInduosvtrayti-leoanding platformCasns-eDcoond to Industry-leading cAAoccccnneeleleecrrtiaatvteiet pyp oorrtftfoolilioo AcAoccccnneeleleecrrtiaatvteeit pyp oorrtftfoolilioo allocation atthe core • Execute on ARP and reduction of leverage • ARP proceeds >US$1.8bn 15 otrpaetnrsafntiosorfmnosramtionation Accelerate npoonertfolio otrpaetnrsafntiosorfmnosramtionation • Middle East exit | Selective expansion in SSA • Holdco leverage between ≤ 1,5x

^ Over three years, o 2020 base • Reveal and crystallise value of i^n Ovfer rtharees yetarrs, ou 2020ct ubasre e • Structural separation of infrastructure ^^ Excludes the R15bn achieved to March 2020 transformation^^ Excludes the R15bn achieved to March 2020 Accelerate portfoClrioea te assets and platforms Create assets and platforms shared value sh37ared value 37 transformation Technology Value based capital ESG Relationships Innovation platformCasns-eDcoond to Investment case - A compelling Ghanaian growth story

Ghana’s growing appetite for digital services for entertainment, financial and commercial needs provides a massive opportunity for telcos like MTN to capture the digital service opportunity. We believe we are well placed Ambition 2025: “Leading dAimbgitato provideilti MTNsoo ownednl digitalu 2025 servicesti ando facilitaten saccess: fto“ third-partyoLrea digital Af services.driincga ’dsi pgirtoagl rsoess”lutions for Africa’s progress” Drive Accelerate portfolio Strong position in attractive market industry• Technology-le leadershipad (4G+, ing TurboNet, etc) • Digital & Innovation leadership transformation (myMTN, ayoba, etc) • Leadership in Fintech (MoMo, Open s accelerating connectivityAPI, oetc) perations orm gro atf wt Pl h Drive Fintech ayoba API Enterprise marketplace

NaaS Accelerate portfolio Attractive industryreturn-l profileea ding • Double-digit revenue and EBITDA growth • Improving margins and well- tranR sformation connectivityinvested o networkpe rations • Strong cash generation Besttalent, culture & Technology Value based capital ValEuSeEnGhabncead srisek adnd recgualatporyi ftraamelwork ESG future skills Disciplined capital allocation platforms second to

2020 Annual Report Annual PLC 2020 (MTN Ghana) attheallcoocraetion atthe core none Scancom Scancom 16 MTN has built a strong set of capabilities and competitive advantages. Our strategic repositioning highlights MTN’s key differentiators as well as our plan to take advantage of the various opportunities. The Ghana market we Who are Ambition 2025: “Leading digitalis aso growing market.lu Ourti companyo isn a growths company: fo ourr infrastructure Af andri investments,ca our’ establisheds p rogress” Ambition 2025: “Leading digital solutions for Africa’s progandr leadinge ss”position as well as the characteristics of our markets – which include favourable demographics – are aligned to deliver a very exciting growth story, creating and preserving value for all our stakeholders. We are Drive optimising efficiencies, capex and cash flow, which will all ultimately translate into attractive returns. Accelerate portfolio Exciting market opportunity industry-leading • Large opportunity in digital and financial services trans• fAcceleratingor datam growth ation • Leading network position to s accelerating support data and digital connectivity operations orm gro atf wt Pl h Drive Fintech ayoba API Enterprise marketplace

NaaS AccelerWella positionedte p foro rtfolio the long term industry-leading • Significant contribution sustainability • Progressive dividend connectivity operations tranR sfopolicy rmation Besttalent, culture & Technology Value based capital ValEuSeEnGhabncead srisek adnd recgualatporyi ftraamelwork ESG future skills Disciplined capital allocation platforms second to

attheallcoocraetion atthe core Report Annual PLC 2020 (MTN Ghana) none Scancom Scancom 17

Operational Performance for 2020 Salient features Salient features

Service revenue up by Service revenue up by % 22.8% % 22.8% +16.4 99.3% +8.1of total revenue 99.3% of total revenue Service revenue Data Voicerevenue revenue up by Data revenue up by SubscribeGH¢r6.0bns 32.5%GH¢ 2.5bn Subscribers 32.5% 22.6 28.2% of total revenue 22.6 28.2% of total revenue million Data subscribers million Data subscribers (19.8 million*) 20.1 (19.8 million*) 20.1 Voice million Voice million revenue up by (8.1 million#) revenue up by (8.1 million#) 19.4% MoMo 19.4% MoMo 44.6%+21.3 of total revenue% revenue+32.2 up by % 44.6% of total revenue revenue up by Data revenue 28.0%MoMo revenue 28.0% EBITDA 18.6% of total revenue EBITDA 18.6% of total revenue Up bGH¢y 65.7%1.8bn GH¢ 1.3bn Up by 65.7% to GH¢2,630 to GH¢2,630 million million EBITDA margin EBITDA margin 50.8% 50.8% Up 13.2 percentage % % Up 13.2 percentage point+50.0s +20.8 points Enterprise MoMo regisEBITDAtered MoMo registered Capex revenue subscribers Capex subscribers GH¢1,112 GH¢1,112 GH¢ 0.3bn 15.1GH¢ million3.2bn 15.1 million million (9.1 million*) million (9.1 million*) 2 Sourced from the NCA Industry Information – Telecom Subscriptions for $ 2 Sourced from the NCA Industry Information – Telecom Subscriptions for $ December 2019 report dated 10 February 2020 (www.nca.org.gh). Total dividends December 2019 report dated 10 February 2020 (www.nca.org.gh). Total dividends

2020 Annual Report Annual PLC 2020 (MTN Ghana) * Aligned with the MTN Group definition, subscribers are SIMs which generate * Aligned with the MTN Group definition, subscribers are SIMs which generate or participate in an event that generates revenue for the company. Out of or participate in an event that generates revenue for the company. Out of bracket numbers conform to the respective regulator subscriber definition. bracket numbers conform to the respective regulator subscriber definition. # Active data subscribers as per MTN Group definition are data subscribers GH¢0.06 per share # Active data subscribers as per MTN Group definition are data subscribers GH¢0.06 per share who have used more than 5MB in a month. who have used more than 5MB in a month. Scancom Scancom $ Consist of 2 pesewas interim dividend and 4 pesewas final dividend. $ Consist of 2 pesewas interim dividend and 4 pesewas final dividend. 20 Salient features

Service revenue up by

22.8% Operational 2020 for performance pp % +1.9 99.3%14.2 ofof to revenuetal revenue EBITDA margin Data rCoreevenue capex up by ^ Subscribers 32.5%GH¢ 0.9bn 22.652.7% 28.2% of total revenue million Data subscribers (19.8 million*) 20.1 Voice million # revenue up by (8.1 millionActive) 19.4% % MoMoVoice Subs 44.6%+33.3 of total revenue revenue up by Total dividend~ 28.0% % EBITDA +23.4 8.0 18.6% of total revenue * Up bypesewas 65.7% 24.4m to GH¢2,630 million EBITDA margin 50.8%Active Active Up 13.2 Datapercen tSubsage MoMo Users points % MoMo registered % Cap+32.4ex subscribe+16.3rs GH¢1,112 # 15.1 million * million10.8m (9.1 millio10.6mn*) 2 Sourced from the NCA Industry Information – Telecom Subscriptions for $ December 2019 report dated 10 February 2020 (www.nca.org.gh). Total dividends

* Aligned with the MTN Group definition, subscribers are SIMs which generate Report Annual PLC 2020 (MTN Ghana) or participate in an event that generates revenue for the company. Out of bracket numbers conform to the respective regulator subscriber definition. # Active data subscribers as per MTN Group definition are data subscribers GH¢0.06 per share who have used more than 5MB in a month. Due$ toConsist ongoing of discussions 2 pesewas on interim the potential dividend change and in regulatory4 pesewas subscriber final dividend. definitions, subscriber data in this report will be limited to the MTN Group definition until the regulatory definitions are finalized. Scancom * Aligned with the MTN Group definition, subscribers are SIMs which generate or participate in an event that generates revenue for the company. 21 # Active data subscribers as per MTN Group definition are data subscribers who have used more than 5MB in a month. ^ Capex under IFRS 16 is made up of core capex spend of GH¢858.5m, intangibles of GH¢539.0m (Network licence, Software, etc) and right of use (RoU) assets of GH¢91.8m for the period. ~ 2020 interim dividend of GH¢0.03 per share paid on 29 May 2020 bringing total dividend for 2020 to GH¢0.08 per share. Chairman’s statement

SAMPLE IMAGE

Distinguished shareholders, ladies and gentlemen, needs of our people, customers, government and the provision of resilient technology to enable us to On behalf of the members of the Board, I would support connectivity for the nation throughout this like to welcome you to this year’s virtual Annual pandemic and beyond. General Meeting of Scancom PLC (MTN Ghana). It is my honour to present to you the annual report MTN continues to review its response to COVID-19 to and financial statements of your company for the ensure that it caters for the shifting dynamics of our financial year ended 31 December 2020. society. The Board continues to focus its oversight efforts on the critical strategic and operational The year 2020 saw the introduction of a new era risks that impact MTN in these uncertain times. Our brought about by the COVID-19 pandemic with its response to the COVID-19 pandemic has been swift, accompanying socio and macroeconomic challenges robust and steady and we remain vigilant, cautious which have impacted lives and businesses globally. and committed to our mission. It is my belief that the introduction of vaccines and continued adherence to the COVID-19 protocols will I will now update you on the global and Ghanaian steer us through this difficult period to normalcy. I 2020 Annual Report Annual PLC 2020 (MTN Ghana) operating environments before I share highlights of am happy to say that we prioritized the safety and our financial performance for the year under review. Scancom Scancom 22 Global economy overview amidst the emergence of Economic activity slowed down considerably in the COVID-19 first half of 2020 but experienced signs of recovery in the second half following the gradual easing of The global economy experienced a recession in COVID-19 restrictions.

2020 as many countries worldwide reeled under Operational 2018 for Performance the COVID-19 pandemic. The pandemic exacted The pandemic exacted severe fiscal and socio- a high human cost on many economies and the economic costs on the nation, contributing to enforcement of containment measures took a toll on widening the government’s funding gap and economic activities. Global trade contracted in 2020 driving the country’s stock of public debt to over as border closures and supply chain disruptions 70.0% of GDP. The fiscal impact of the COVID-19 interrupted the international supply of goods and pandemic in 2020 was estimated at GH¢25.3 billion services. Trade in goods is gradually recovering; (~6.6% of GDP). Headline inflation moved into the however, services trade remains depressed, given double-digit territory driven by food inflation, rising the continued international travel restrictions. to 11.4% in July 2020 and subsequently flowing to 10.4% in December 2020. In the forex market, the Commodity prices started rebounding in the second local currency performed well, depreciating by 3.9% half of 2020 following the easing of COVID-19 against the US Dollar in 2020 compared to 12.9% restrictions. The recovery in oil prices during the in 2019. The Cedi’s performance broadly reflects second half of 2020 lagged the broader uptick in Bank of Ghana’s regular forward foreign exchange commodity prices due to the pandemic’s impact on auctions, inflows from the government’s Eurobond global oil demand. On the other hand, base metal issuance, sustained inflows from the country’s prices recovered strongly in the second half of 2020 diversified exports as well as strong remittance due to rising demand from China%. The provision inflows. The rates on short-term government of fiscal and monetary support by governments securities declined marginally in 2020, partly and central banks has contributed to stabilizing influenced by Bank of Ghana’s proactive monetary financial markets and cushioning economies policy interventions. against the pandemic’s impact. However, increased COVID-19-related expenditures and the decline in The government and the Bank of Ghana, over the revenues from the slowdown in economic activity course of 2020, introduced a mix of policy measures impacted governments’ deficits beyond levels and programmes to cushion the economy against recorded during the global financial crisis and the impact of the pandemic. The government have resulted in increased debt levels for many implemented the first phase of the National countries. According to the International Monetary Emergency Preparedness and Response Plan Fund (“IMF”), average debt levels in low-income (“NERP”) for COVID-19 in 2020 to strengthen the developing countries are expected to peak in 2021 country’s health system to manage and contain the with debt service-to-tax revenues exceeding 20.0% spread of the virus. The government also provided for countries like Ghana. financial support to businesses under the GH¢1.2 billion Coronavirus Alleviation Programme (“CAP”) Amidst the uncertainties surrounding the pandemic, established to address the disruption to economic the IMF projects the global economy to grow by activities due to the pandemic. The Central Bank cut 5.5% in 2021 and 4.2% in 2022, reflecting the the monetary policy rate by 150 basis points to 14.5% expectations of the impact of global vaccinations and reduced the reserve requirement of banks to in 2021 and additional policy support in a couple of 8.0% in addition to other measures to support the large economies. Strong multilateral cooperation extension of credit to critical sectors of the economy remains critical to providing the needed funding for severely impacted by the pandemic. The Central the COVAX facility to accelerate access to vaccines Bank also contributed to financing the budget for all countries. Overall, the continued deployment deficit by purchasing a GH¢5.5 billion Government of vaccines worldwide is expected to drive consumer of Ghana COVID-19 Bond under its Asset Purchase and business confidence and positively impact Programme. financial market sentiments. Economic growth projections for Ghana by key Ghana’s operating environment institutions such as the World Bank and the IMF In the last few years leading up to the pandemic, remain positive. Growth is expected to be driven the local economy achieved consistent and robust by the continued recovery in commodity prices, growth. The economy grew by 4.9% year-on-year in improvement in exports, and an increase in Report Annual PLC 2020 (MTN Ghana) the first quarter of 2020 but experienced a technical consumption and investment. Ghana received the recession in the ensuing period due to the pandemic. first batch of COVID-19 vaccine doses through the Scancom Scancom % World Bank, Global Economic Prospects January 2021 23 Chairman’s statement (continued)

COVAX facility in February 2021 and the successful first quarter performance of the company. After deployment of these vaccines will be critical to reviewing the full year performance of the company ending the acute phase of the pandemic. Overall, in 2020, the Board shall be recommending a final the economy is on the road to full recovery, and the dividend of 5 pesewas on ordinary shares to be government’s planned implementation of phase II approved by shareholders. This brings the total of the COVID-19 Alleviation and Revitalization of dividend for the year 2020 to 8 pesewas per share Enterprises Support Scheme (“CARES”) is expected and represents 70.5% of profit after tax and a 33.3% to accelerate the recovery process barring any increase in dividend per share payout in 2020 over further shocks. 2019. Business performance Overall, our performance generated a return on equity of 41.8% to our shareholders, representing an We delivered a total revenue of GH¢6.03 billion in improvement of 5.8 percentage points over that of 2020, up 16.4% from 2019. This resulted in a profit 2019. after tax growth of 33.9% which is reflective of our diversified business model, our consistent growth Share price performance and capitalization of service revenue, our prudent management of During the year, the MTN Ghana share price costs and risks in an uncertain era and competitive experienced a lot of volatility with a year high of environment. GH¢0.70 and low of GH¢0.55. The year opened Our service revenue grew by 16.4% year-on-year at GH¢0.70 and we closed the year at GH¢0.64, to GH¢5.99 billion and was made up of 41.4% voice, losing 8.57%. This was a result of factors including 29.6% data, 21.2% MoMo and 3.1% digital revenue. COVID-19 impact on liquidity, general investor This evolving mix continues to see a declining sentiments and sell downs from some of our contribution in traditional revenue lines in favour large institutional investors. These factors were of other fast-growing segments as we position the not peculiar to MTN as the GSE Composite and business to harness the benefits of a digitalized era. Financial indices both declined by 14.0% and 11.7% respectively during the period. We are confident in Voice revenue grew by 8.1% to GH¢2.50 billion with a our strategy to unlock shareholder value and remain subscriber net addition of 4.6 million. Data revenue optimistic that the share price will move positively to growth continued to be strong, increasing by 21.3% to reflect our continued progress in the coming years. GH¢1.77 billion with a subscriber net addition of 2.7 million. MoMo revenue continued its strong growth I would like to take this opportunity to thank you, our trajectory, growing by 32.3% to GH¢1.27 billion with shareholders, for the continued show of confidence subscriber net adds of 1.5 million. Digital reported a and understanding of our business since our listing 6.2% decline in revenue to GH¢0.19 billion due to the on the Ghana Stock Exchange. implementation of IFRS-15; on a normalised basis Scancom PLC (MTN Ghana) continued to be the third digital revenue grew by 34.6% YoY with subscriber largest listed company by market capitalisation of net adds of 2.4 million. GH¢7.9 billion as at the close of 2020. I am happy to We prudently managed our cost lines within the add that your company was the most traded stock period in line with our medium-term target to on the Ghana Stock Exchange accounting for about improve our margins amidst the uncertainties, 84.8% of stock market turnover during the period. foreign currency fluctuations and inflation. Our Implementing an efficient corporate governance operating expenditure increased by 14.2% compared strategy to a more aggressive revenue growth resulting in an EBITDA margin expansion of 1.9 percentage MTN Ghana Board believes that good and effective points to 52.7%. Our healthy margins reflect our governance is an essential ingredient to achieving efficient execution of our cost saving strategies as long-term success. In light of this, we continued well as precautionary measures taken due to the to maintain a strong internal control environment uncertainties and restriction on movement within and instill a culture of ethical behaviour within the period. the company. We continue to embed a culture of zero tolerance for corruption and unethical Dividends 2020 Annual Report Annual PLC 2020 (MTN Ghana) behaviour through our robust conduct management Ladies and gentlemen, the Board declared an interim framework. dividend of 3 pesewas per share after reviewing the Scancom Scancom 24 Chairman’s statement (continued)

We continue to invest in building systems and rolling We continue to focus on community development out appropriate strategies to ensure an integrated through the MTN Ghana Foundation which has

approach to the management of governance, risk invested GH¢53.3 million in social impact projects Operational 2020 for performance and compliance structures across the business. and has directly and indirectly impacted over 4 million lives. The Foundation has invested in 87 education, Regular Audit Committee meetings were held during 52 healthcare and 13 economic empowerment the year to assess the level of adherence to internal projects since its inception in November 2007. controls, to consider and review risk mappings as well as business performance. The Board has Recognizing our efforts through difficult times reviewed the report of the committee and is satisfied COVID-19 did not just affect businesses, it also with the robust internal control systems put in place affected a lot of programmes and events. In spite of to manage business risks and continuity. the pandemic, MTN Ghana won 28 awards in various During the year, members of the Board were taken areas including awards in Human Resources, through various training modules on corporate Marketing, Public Relations, Project Management, governance which were facilitated by both internal Mobile Money, Customer Service and Corporate and external resource persons. Social Responsibility (CSR). The CEO, Selorm Adadevoh, was awarded the “Industry Personality It is reassuring to note that, in this era of of the Year” in the Ghana Information Technology uncertainties, accelerated digitalization, changing and Telecoms Awards (GITTA). These awards and customer expectations and the evolving regulatory recognitions continue to reflect the excellence that environment, your company has put in place the MTN represents and the rich expertise of employees right governance structures that will sustain the who work hard to make customers’ lives a whole lot profitability and long-term viability of the business. brighter everywhere you go. Sustainability and social impact Board changes Sustainability is an integral part of the company’s Distinguished shareholders, we announced through core business and MTN Ghana is committed to playing the Ghana Stock Exchange the resignation of a leading role in sustainability and development Mr. Kwasi Abeasi, an independent non-executive of the Ghanaian economy especially in this era of director, and Mr. Modupe Kadri, a non-executive the pandemic. MTN in response to the COVID-19 director, from the Scancom PLC Board effective pandemic initiated various activities including the March 1, 2021. On behalf of MTN Ghana and its donation of PPEs, zero-rating of some category subsidiaries, I would like to express my gratitude of MoMo transactions and providing free data to Mr. Abeasi and Mr. Kadri for their sterling service and access to many educational and government and dedication and wish them well in their future websites. MTN Ghana as part of MTN Group, also took endeavours. a bold step to aid in the AU’s vaccination programme by donating US$25 million. The donation will help Consequently, we announced the appointment of secure up to seven million doses of the vaccine for four independent non-executive directors to the health workers across the continent, contributing Board of Scancom PLC effective March 1, 2021, in to the vaccination initiative of the Africa Centres line with our aim to have the best minds and improve for Disease Control and Prevention. In all this, diversity on our Board. I would like to welcome our we do acknowledge the accelerated needs of our new Board members; Mr. Felix Addo, Ms. NanaAma customers for data and digital services and have put Botchway, Mr. Kofi Dadzie and Ms. Rosie Ebe-Arthur in place a resilient network to support connectivity and wish them every success in the discharge of across the nation. their duties. MTN Ghana continued its contribution to national MTN Ghana’s 25th Anniversary fiscal development through taxes in 2020. Over the The year 2021 marks a significant milestone in the year, GH¢2.6 billion was paid to government in taxes journey of MTN Ghana’s contribution to providing and this represented about 6% of total national tax vital telecommunication and digital services in revenue. Within this, GH¢101 million and GH¢389 Ghana. As part of our 25th anniversary, we are million were paid as National Fiscal Stabilisation committing the equivalent of US$25 million (or Report Annual PLC 2020 (MTN Ghana) Levy (NFSL) and Communications Service Tax (CST) GH¢150 million) to a fund supporting Ghana’s post- which represents about 21% and 70% of overall COVID-19 recovery efforts. MTN Ghana will also

NFSL and CST received, respectively. Scancom 25 Chairman’s statement (continued)

work to deepen its strategic partnership with the Exchange (GSE), the Bank of Ghana (BoG) and Government of Ghana through investments in digital the entire government, particularly the Ministry of ecosystem projects as part of the government’s long- Communications, for their support through 2020. term transformation agenda. We are excited about We thank all our cherished customers for the this development and grateful to our customers and continued loyalty and pledge our commitment to stakeholders for their support. More details will be continue to serve at the highest standards possible shared as discussions and agreements progress in the coming year. with government and our partners. Also, we are grateful to the traditional authorities, Summary our suppliers and distributors, the media, civil Distinguished shareholders, ladies and gentlemen, society, consumer groups and all other stakeholders your company continues to make great strides who continue to support our work with valued despite the challenging environment, and in 2021, feedback and various levels of collaboration. we are poised to soar even higher and contribute I would like to express my appreciation to all significantly towards Ghana’s ambition of becoming shareholders and thank the members of the Board a digital economy in the coming years. for their dedication, commitment, and resilience As I conclude, I would like to thank all management through challenging times. and staff of MTN Ghana for your hard work and Till we meet again at the next Annual General commitment through a challenging period. While Meeting, let us stay safe and continue to adhere to we have come a long way, there remain several all safety protocols. challenges and uncertainty ahead, and I would like to pledge the support of the Board to management Thank you and God bless us all. in ensuring good governance and risk oversight to deliver positive returns in a sustainable manner. I also want to thank our regulators – the National Communications Authority (NCA), the Securities Ishmael Yamson and Exchange Commission (SEC), the Ghana Stock Chairman May 2021 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 26 The journey of progress over the last 3 years A foundation of commercial and operational excellence

Growing Expanding Expanding subscribers 3G coverage 4G coverage Operational 2020 for performance

24.4m 89.0% 91.0% 71.7% 19.8m 77.0% 58.0% Total 17.8m 10.8m 38.0% a 8.1m Data subs 6.4m 10.6m 9.1m MoMo 8.4m users

2018 2019 2020 2018 2019 2020 2018 2019 2020

Financial Exceeding ROE progression performance pay-out target

PAT 755m 1,008m 1,395m 41.8% Service 23.5% 22.8% (GH₵m) revenue 36.0% 31.3% 16.4%

52.7% Dividend paid (Pay-out ratio) 615m 50.8% 737m 983m (81.5%) EBITDA (73.1%) (70.5%) margin 37.6%

2018 2019 2020 2018 2019 2020 2018 2019 2020

2018 financial results are on a AIS17 basis.

SignificantSignificant contribution contribution to National to National developme developmentnt | Tax | Tax

Taxes / Levies Contribution for 2020 industry-leading Total Tax • ~6% of total national tax revenue Contribution connectivity operations • GH₵ 2.6 billion paid

National Fiscal • ~21% of overall NFSL received industry-leading Stabilisation connectivity operations Levy (NFSL) • GH₵ 101 million paid industry-leading Communication • ~70% of overall CST received connectivity operations Service Tax • GH₵ 389 million paid 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 27 Chief executive officer’s review

Dear Shareholders, It is a pleasure to welcome you to our third annual the year following the phased easing of COVID-19 general meeting since becoming a publicly listed restrictions. company and to present to you the annual report of The nation continues to bear the brunt of COVID-19 our activities and business performance for the year and as of 14 April 2021, data from the Ghana ended 31st December 2020. Statistical COVID-dashboard shows that Ghana 2020 in review has about 91,410 confirmed cases, 1,344 of which 2020 was a challenging year for all of us. Globally, are still active, and 761 deaths. Our thoughts are the COVID-19 pandemic has brought about with the families of those we have lost and with the unprecedented macroeconomic and socioeconomic nation as we go through these tough times together. challenges which impacted livelihoods and disrupted Our COVID-19 response businesses in the year. The Ghanaian economy grew In response to the pandemic, we launched various by 4.9% year-on-year in the first quarter of 2020 but initiatives to provide support to our people, our experienced a technical recession in the ensuing customers and to government in the fight against period due to the pandemic. Economic activity 2020 Annual Report Annual PLC 2020 (MTN Ghana) COVID-19. This effort was dubbed MTN’s Y’ello Hope, slowed down considerably in the first half of 2020 through which we brightened lives of Ghanaians in a and started a slow recovery in the second half of gloomy period. Scancom Scancom 28 For our people, the immediate priority was to essentials to the government’s COVID-19 Trust Fund continue to secure their health and safety. We have for onward distribution to frontline health workers. In empowered our people to work remotely while addition, we supplied 87,000 boxes of face masks to ensuring the continuity of our operations. To ensure 31 health facilities across all 16 regions nationwide the safety of our people, we have provided over in support of the fight against COVID-19. We also Operational 2018 for Performance 80 buses to help transport our frontline staff from deployed PPEs and sanitizers as well as ensured the their homes to their place of work in order to limit adherence to all COVID-19 safety protocols across the risk of contracting COVID-19 through public our branch network and offices as we continue to exposure. We also launched daily health monitor prioritise the safety of our customers and our people. surveys, which allows us to ascertain the wellbeing To encourage Ghanaians to wear their face masks of our staff and their families and to provide support and to wear them correctly to combat the spread when needed. We have also instituted a Ghana Staff of the virus, we launched the ‘BE WISE’ campaign Care Emergency Fund in support of MTN Ghana’s in August 2020 which then transitioned into MTN’s extended workforce who may be affected by the global ‘#WearItForMe’ marketing initiative and pandemic. continued through the fourth quarter of 2020. To support our customers, from March 2020, and in Together with donations of PPEs, this campaign collaboration with the Bank of Ghana, we provided created awareness of the need to protect one free Mobile Money P2P (person-to-person) transfers another. of up to GH¢100 per day. We are pleased that the The fight against the pandemic continues into 2021 removal of charges for this category of transactions and MTN remains committed to providing support did not only save our customers over GH¢94 million to combat COVID-19. In January 2021, MTN Group in fees, but also minimized face-to-face interactions announced a US$25 million donation to support the and physical contact with cash thereby reducing African Union’s COVID-19 vaccination programme. the risk of infections. In addition, the MoMo offer also helped deepen financial inclusion. To show Our commitment on Y’ello Hope initiatives to brighten our continued commitment to the fight against lives was valued to be GH¢139 million as at the end the deadly virus, we have extended this offer until of December 2020 and as we progress through 2021, further notice to ensure it is available throughout we will remain focused and dedicated to supporting the period of the pandemic. our people and customers while ensuring network resilience and efficiency. We have also ramped up our digital channels as additional marketing and customer service Operational review platforms. With these platforms our customers In spite of the challenges accompanying the can purchase airtime and products and services COVID-19 pandemic, we continued to demonstrate seamlessly. The digital platforms also support self- and live our ‘Can Do’ value through sound service for our customers and enable quick and operational execution and resilience to deliver a easy access to all our support channels through our strong performance for the year. social media handles, myMTN app and our dedicated We continued to maintain our market leadership digital customer service tools. and customer confidence in our brand by adding In line with efforts to provide digital access and to 4.6 million new customers, bringing our total * relieve customers of the impact of COVID-19, MTN subscriber base to 24.4 million as at the end of Ghana has also offered free access to over 200 the period. This growth in our subscriber base was online educational sites supporting four to five helped by the heightened need for reliable and million students and teachers in their learning and resilient data and digital services in this era of the pandemic. We increased our rural coverage and our teaching needs since the pandemic begun. We also 4G population coverage reached 71.7% resulting in awarded further scholarships to 100 students in an addition of 2.6 million active data subscribers#. various tertiary institutions and additional financial support to existing scholarship holders as part of As we continue to embark on our mission to drive our Bright Scholarship initiative for 2020. financial inclusion, we added 53,000 new MoMo agents bringing our total to 206,000 and added In supporting the efforts of government agencies, 49,000 new merchants to reach a total of 172,000 we zero-rated several public websites providing for the year, to support growth in our Mobile Money health and other COVID-19-related information. The business. We gained 1.5 million new active MoMo Report Annual PLC 2020 (MTN Ghana) MTN Ghana Foundation donated GH¢5 million worth users for the year, bringing our total active users to of personal protective equipment (PPE) and other 10.6 million*. Scancom Scancom Due to ongoing discussions on the potential change in regulatory subscriber definitions, subscriber data in this report will be limited to the MTN Group definition until the regulatory definitions are 29 finalized.

To help maintain the quality and availability of 20.8%, with a corresponding margin expansion of service for our data and Mobile Money customers, 1.9 percentage points (pp) to 52.7%. We continued we invested GH¢1,489 million in total capex^ on to manage our costs efficiently and benefitted from network capacity and infrastructure expansion. opex cuts arising from COVID-19 impact and digital distribution efficiencies. This resulted in healthy Financial performance expansion of our EBITDA and EBITDA margin. Service revenue expanded by 16.4% year-on-year (YoY), driven by growth in voice, data and MoMo. The business reported a profit after tax of GH¢1.4 billion which represents a 38.4% increase Growth in voice revenue (up 8.1% YoY) was YoY and led the Board to recommend a final supported by a 23.4% increase in our subscriber* dividend of 5 pesewas per share, bringing the total base from enhancements to our network as well dividend for the 2020 year to 8 pesewas per share. as various customer value management initiatives, This represents 70.5% of profit after tax and a 33.3% which helped manage churn and improve usage. increase in dividend per share over 2019. The contribution to service revenue from voice declined from 45.0% to 41.8% in the year in favour of Continuous investments in the network new areas of growth such as data and MoMo, in line We continued to deploy our smart capex strategy, with our strategy to diversify revenue and become a supporting significant improvement in coverage digital operator by the end of 2023. expansion and maintenance of the network, customer experience and quality of service (QoS), A strong increase in data revenue (up 21.3% in a year of accelerated need for digitalization. YoY) benefitted from an increase in active data As part of this, we rolled out 200 2G, 200 3G and subscribers# (+32.4%), growth in number of 950 4G sites, which helped relieve the pressure on smartphones on the network (+32.5%) and a general our infrastructure and significantly enhance our increase in usage (+105.0% to 525,372 Terabytes of network resilience and service delivery across the data). The higher usage was partly due to shifts in nation. Our smart capex deployment helped support consumer behaviour brought about by the COVID-19 a 105% growth in data traffic and reached 1,875 impact and increased capacity from an enhanced total 4G / 4G+ sites nationwide, as we continue our network infrastructure. Data revenue contribution mission to have 4G on every site in the coming years. to service revenue increased from 28.4% to 29.6% Continuous innovation and customer focus YoY. In line with our vision to lead the delivery of a bold, Mobile Money revenue grew by 32.2% YoY as the new digital world to our customers, we continue to number of active users* increased by 16.3%. This innovate, create, and build meaningful relationships was the result of various promotions in the year, to improve customer experience. The year 2020 was increased person-to-person (P2P) transactional themed, ‘Year of the customer: the digital experience’ activity and the offer of more advanced services and this was our focus in our pro-customer activities such as retail merchant payments and international and acquisition drive. remittances. In line with our revenue diversification Our network improvements coupled with the strategy, Mobile Money revenue contribution to increased adoption of data and digital helped to service revenue rose from 18.6% to 21.2% YoY. accelerate growth in our customer base. Subscribers * We recorded a 6.2% YoY decline in digital revenue as increased by 23.4% YoY to 24.4 million , with active a result of applying a groupwide Principal vs Agent data subscribers increasing by 32.4% YoY to 10.8 million# and active Mobile Money users (IFRS 15) accounting standard in 2020. Normalizing increased by 16.3% YoY to 10.6 million*. for this, digital revenue would have recorded a growth of 34.6% YoY. During the period, we made Regulatory developments some enhancements in our video and gaming On the regulatory front, MTN Ghana continues to offerings resulting in a 328% surge in the number maintain high ethical standards and commitment of active subscribers* and increased adoption of our to our regulatory obligations. We also remain myMTN and ayoba messaging apps. Digital revenue focused on providing the enabling technology to contribution to service revenue declined from 3.9% support Ghana’s digital economy. In this context, to 3.1% YoY. MTN Ghana undertakes constructive engagements 2020 Annual Report Annual PLC 2020 (MTN Ghana) with regulatory stakeholders at all times on issues Our reported earnings before interest, tax, related to policy and regulatory initiatives. depreciation and amortisation (EBITDA) grew by Scancom Scancom

30 Due to ongoing discussions on the potential change in regulatory subscriber definitions, subscriber data in this report will be limited to the MTN Group definition until the regulatory definitions are finalized.

* Aligned with the MTN Group definition, subscribers are SIMs which generate or participate in an event that generates revenue for the company. # Active data subscribers as per MTN Group definition are data subscribers who have used more than 5MB in a month. ^ Capex under IFRS 16 is made up of core capex spend of GH¢858.5m, intangibles of GH¢539.0m (Network licence, Software, etc) and right of use (RoU) assets of GH¢91.8m for the period. Chief executive officer’s review (continued)

Significant market power During the year, the MTN Foundation initiated On the issue of the significant market power (SMP) eight new projects in education, three projects in declaration, and per the update in our third quarter health including the donation of PPEs to the National Operational 2020 for performance results release, on 13 October 2020 MTN Ghana COVID-19 Trust Fund for frontline healthcare withdrew its application filed at the Supreme Court workers and hospitals, with two new projects in the following a series of engagements with the regulator economic empowerment focus area. and other key stakeholders to resolve the SMP issue in an amicable manner. Looking ahead Impact of COVID-19 pandemic From October 2020, MTN Ghana implemented The outlook for 2021 will be shaped by the extended the National Communication Authority’s directive impact of the pandemic. While economic growth to apply a 30% asymmetrical interconnect rate projections by entities such as the World Bank and reduction for two years. the IMF are optimistic, we remain cautious due to Engagements and discussions with relevant the potential longer-term dampening effects of stakeholders continue, after they were briefly COVID-19 on the Ghanaian economy. suspended leading up to the national elections in As a business, we remain focused on our people, our December 2020, and we are optimistic that these customers and on supporting government through discussions will result in a positive outcome for MTN the provision of a resilient network to support Ghana and the long-term sustainability of the Ghana growth in economic productivity. Telecommunications industry. We remain grateful to the NCA, the Ministry of Revenue forecast Communications and key stakeholders for their We will remain within our service revenue growth commitment to engage with the view to resolve the target band of 13% to 15% and employ prudent issues amicably. cost strategies to continue to improve our margins and cash generation. MTN Ghana will continue to Update on Localisation of Scancom PLC and prioritize its investments in infrastructure expansion MobileMoney Limited and digital ecosystem projects by government MTN Group remains committed to its agreement to meet the needs of Ghanaians in this era of with the Government of Ghana to increase other accelerated digitalization. shareholdings in Scancom PLC to 25%, with a focus Continued growth in service revenue will largely on local shareholding. depend on data, mobile financial services and In accordance with the Payment Systems and digital. We are also upbeat about our enterprise and Services Act, 2019 (Act 987), MobileMoney Limited, a wholesale business in the coming year. wholly owned subsidiary of Scancom PLC, is required to achieve 30% Localisation of its shareholding as Our investment case – optimize data and digital part of Bank of Ghana’s (BoG) license requirements. opportunities The BoG has extended the deadline to meet this 2020 has accelerated the need for data and digital requirement, to 15th January 2022. services and with the 2021 theme of ‘year of the customer: the digital experience’, we are confident in We look forward to providing further updates on our our strategy to harness the opportunities presented progress in subsequent releases. in this new era. MTN Ghana Foundation support We are confident in government’s post COVID-19 2020 has heightened the need for businesses around recovery plan for the economy. The demographics the world to make sustainability a key focus. We at remain favourable with an exciting youth opportunity MTN, through the MTN Ghana Foundation, continue in data and digital and our brand remains strong to invest in our communities especially in these across various customer segments including uncertain times. Since inception, the Foundation the youth segment. We will continue to focus on has invested in 87 educational projects, 52 health maintaining and attracting the best talent and projects and 13 economic empowerment projects, at partners to drive our business and its profitability. a cost of GH¢53.3 million. 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 31 Chief executive officer’s review (continued)

Conclusion Mr. Modupe Kadri, I wish you the very best and thank I would like to say thank you to all our shareholders you for your immense contributions over the years for your belief in MTN Ghana, our valued customers working with us. To our four new Board members, I for your loyalty and feedback which propels welcome you to the ‘Yello’ family and wish you the and inspires us to deliver on our promise of very best in the execution of your roles. superior experience when on the MTN network. Finally, to all of you here, thank you for your presence To my colleagues, the management and staff of and for being a part of the ‘Yello’ family. Until we MTN Ghana, we congratulate you for your hard meet again at the next AGM, please stay safe and work and dedication especially through these tough observe all protocols as we continue to stave off the times. Ayekoo! deadly COVID-19 virus. We also thank our Regulators including the National Thank you and God bless us all. Communications Authority, the Securities and Exchange Commission, the Ghana Stock Exchange, the Bank of Ghana and the entire government, particularly the Ministry of Communications, for the support through the year. I am extremely grateful to the MTN Ghana Board for Selorm Adadevoh the continued support. To our two Board members Chief executive officer who recently resigned, Mr. Kwesi Abeasi and May 2021 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 32 20202020 v svs 2019 2019 per formanceperformance

MTNMTN G Ghanahana d deliveredelivered str strongong su subscriberbscriber addit additionsions in 2in0 220200

Subscriber net adds Active data users net adds MoMo users net adds Improved QoS Accelerated shift to data “Cashless in Covid” – strong momentum Operational 2020 for performance

24.4m 10.8m 10.6m 9.1m 19.8m 8.1m 1.5m 4.6m 2.7m

Net adds 1.7m Net adds 2.0m Net adds 0.7m

2019 2020 2019 2020 2019 2020

Voice revenue Data revenue MoMo revenue Resilient voice growth Double digit- data growth Accelerated adoption of digital currency

2,504 (GH₵m) 1,772 1,268 (GH₵m) 2,317 (GH₵m) 1,461 959

YoY growth +19.4% +8.1% YoY growth +32.5% +21.3% YoY growth +28.0% +32.2%

2019 2020 2019 2020 2019 2020

COVID-19COVID-19

PrioritisingPrioritising our ou rpeople, people customers, customer s& & network networ k| Efficiency| Efficiency & & liquidity liquidity focus focu s| Accelerated| Accelerated digitalization digitalisation

Impacts Managing the crisis Future focus

• Economic slowdown • û Hope – PPE donations, etc. • Agile working industry-leading Social • Extended periods with various • Work from home • Support to staff & communities (our people & communities) levels of restrictions incl. lockdown • Safety measures • $25m commitment to Ghana’s post- connectivity operations • Health & wellbeing of our people COVID-19 recovery efforts

• Affordability pressure • Digital channels ramped up • Accelerated digitalization industry-leading Commercial • Increased demand with limited • Zero-rated educational sites • Home connectivity: Own the Home (including our customers) resources • Free P2P up to GhS100 per day on • Personalized plans and offers connectivity operations • Shift from voice to data MoMo

• Site rollout delayed • Focus on resilience & capacity • 4G everywhere - modernization industry-leading Network • Data payload surges • Capacity investments /spectrum • Fibre backbone expansion & supply chain • Supply chain disruption and • Technology modernization– • Virtualization (Cloud systems) connectivity operations delays Network and IT systems

Volatile Capital Market • Built financial resilience • Improve cost efficiencies Report Annual PLC 2020 (MTN Ghana) industry-leading Funding • Cash conservation & liquidity • Expand top line growth connectivity operations & liquidity headroom Scancom Scancom 33 Chief financial officer’s review

Dear shareholders, technology to support productivity of businesses in Ghana that were forced to adopt working from Welcome to our third annual general meeting. It is home and other remote work practices to stay afloat a pleasure to share some highlights on the 2020 in a difficult period. Overall, we managed a good financial year of your company with you. financial performance for the year.

The 2020 financial year was dominated by the Financial performance pandemic caused by the coronavirus disease, which The Group (Scancom PLC and MobileMoney Limited) has significantly affected global economies and delivered a strong performance for the year ended financial markets. This has created unprecedented 31 December 2020. Total revenue and service challenges for many organizations since the deadly revenue growth was 16.4% year-on-year (YoY) to virus emerged. GH¢6,033 million and GH¢5,992 million, respectively. This was supported by resilient revenue growth in voice Our strategy is to drive return and this was anchored (up 8.1% YoY), data (up 21.3% YoY) and Mobile Money on our ability to prudently manage our costs and cash 2020 Annual Report Annual PLC 2020 (MTN Ghana) (up 32.2% YoY). Digital revenue declined by 6.2% YoY positions to sustain the gains made in our revenue and this was due to the impact of applying a Principal lines. We deployed capex strategically to expand our Scancom Scancom 34

vs Agent (IFRS 15) accounting standard across the MTN Group in 2020 with zero impact on the bottom line. Normalising for this, digital revenue grew by 34.5% YoY. Revenue growth was largely driven by strong growth in our active customers and improvements in product offerings with customer experience at the core of our product and service enhancements strategy.

You will be excited to hear that we employed judicious cost management strategies during the period. Our total operating cost (including cost of sales) increased by 11.9% YoY to GH¢2,855 million demonstrating our focus and execution of cost efficiency initiatives largely driven by digitization in distribution and in our operations. Financial Statements Statements Financial reports and Key In a year plagued with the unexpected pandemic, our cost included unbudgeted costs relating to COVID-19 expenditure and opex relating to increased investments in the network.

Our reported earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 20.8% YoY to GH¢3,178 million with an EBITDA margin expansion of 1.9 percentage points to 52.7% YoY.

In support of our quest to make our customers’ lives a whole lot brighter through the delivery of a resilient network and superior services, we invested GH¢1,489 million in total capex (core capex: GH¢859 million^) to improve our network capacity and expand our infrastructure. This represents a 33.6% YoY growth over our capital expenditure in 2019 and a reduced core capex intensity of 14.2%. We rolled out 200 2G, 200 3G and 950 4G sites during the period and purchased a new 800MHz spectrum and renewed our fixed access licences for a period of 15 years beginning from 10th January 2020 and 23rd March 2020, respectively.

The overall improvement in our revenue lines, coupled with our prudent cost management and efficiency initiatives, resulted in a 38.4% growth in profit after tax.

We exceeded our guidance for key revenue lines in 2020 and remain poised to deliver our medium-term guidance. The table below shows how we fared against our financial guidance submitted to market for 2020.

IFRS 16 GH¢’m IAS 17 GH¢’m 2020 2020 Percentage 2020 2020 Percentage Guidance performance change Guidance Performance change Revenue 5,387 6,033 12.0% 5,387 6,033 12.0% EBITDA 1,998 3,178 59.1% 1,998 2,735 37.6% Profit after tax 1,044 1,396 33.7% 1,044 1,469 40.7%

New and amended standards adopted by the Group As a result of the COVID-19 pandemic, rent concessions have been granted to lessees. Such concessions might take a variety of forms, including payment holidays and deferral of lease payments. In May 2020, the IASB made an amendment of IFRS 16 Leases which provides lessees with an option to treat qualifying rent concessions in the same way as they would if they were not lease modifications. In many cases, this will result in accounting for the concessions as variable lease payments in the period in which they are granted. Entities applying the practical expedients must disclose this fact, whether the expedient has been applied to all qualifying rent concessions or, if not, information about the nature of the contracts to which it has been applied, as well as the amount recognised in profit or loss arising from the rent concessions.

MobileMoney Limited MobileMoney Limited (a wholly owned subsidiary of Scancom PLC) responded to the need for social distancing and increased adoption of digital currency by zero-rating all Mobile Money P2P (person-to-person) transfers up to a value of GH¢100 per day. The waived fees for this category of transactions resulted in a total savings of GH¢94 million for customers. This offer has been extended indefinitely until the end of the pandemic.

Mobile Money performance for the period was strong with revenue growth of 32.2% YoY and EBITDA growth of 37.3% YoY. This was attributable to healthy growth in the number of active users* which increased by 16.3% YoY, driven by increased adoption of digital payment systems. We also launched various promotions to drive usage of P2P transactions and more advanced services such as retail merchant payments and international remittances. Report Annual PLC 2020 (MTN Ghana)

Due to ongoing discussions on the potential change in regulatory subscriber definitions, subscriber data in this report will be limited to the MTN Group definition until the regulatory definitions are finalized. Scancom 35 * Aligned with the MTN Group definition, subscribers are SIMs which generate or participate in an event that generates revenue for the company. ^ Capex under IFRS 16 is made up of core capex spend of GH¢858.5m, intangibles of GH¢539.0m (Network licence, Software, etc) and right of use (RoU) assets of GH¢91.8m for the period. Chief financial officer’s review (continued)

We continue to broaden the Mobile Money the 2021 Budget statement. Amongst the proposed ecosystem and increase use of digital currency amendments are the introduction of a COVID-19 to encourage growth. Mobile Money float and Health Levy, a Sanitation and Pollution Levy, an obligations to electronic money holders grew by increase in Energy Sector Levies Act and the revision 92.6% YoY to GH¢6,600 million within the period with of Toll rates. These are likely to impact our business corresponding increase in transacted volume and going forward. Outside of these proposed changes, value at 38.0% YoY and 81.2% YoY respectively. we do not expect any change in the current tax laws and maintain our income tax expense and National Loans Fiscal Stabilization Levy at 25.0% and 5.0% of profit before tax, respectively. MTN Ghana accepted and signed a GH¢450 million, five-year medium-term financing arrangement – We assure you that we will continue to exercise out of a total offer of GH¢816 million received, with caution in our spend through 2021 as we reassess seven local lenders to support the renewal of our 2G the extended impact of the pandemic on the broader licence and the acquisition of additional spectrum. economy. We maintained a strong balance sheet, managing it Thank you once again for joining us today, I wish you in line with existing banking guidelines. During the the very best and look forward to meeting you again year, no debt covenants were breached. next year. Please stay safe. Forecasts As we progress through 2021, we expect to grow our total revenue within a target band of 13% to 15%. We will continue to employ prudent cost Kobina Sam Bentsi-Enchill management strategies which should keep our total Ag. CFO cost at a healthy level. In respect of taxation, the May 2021 government has proposed some changes through 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 36 MTN Ghana summary performance indicators MTN Ghana summary perfomance indicators Service revenue grew by 16.4%; improved margins and strong FCF development Service(GH₵m) revenue grew by 16.4%; improved margins and strong FCF development (GH¢m)

Service revenue Expenses EBITDA & capex Operational 2020 for performance

+16.4% +12.4% 50.8% 52.7% EBITDA margin 5,992 2,868

Core capex 2,551 17.9% 14.2% 5,148 intensity^

+20.8% 2,504 Voice +8.1% Cost of sales 1,412 +10.6% 3,178 EBITDA 2,317 1,276 2,630 1,489 Capex +33.9%

1,772 Data +21.3% 1,112

1,461 Opex 1,456 1,275 +14.2% 1,268 MoMo +32.2% 1,689 AFCF +11.3% 959 1,518 Digital -6.2% 199 187 212 262 Other +23.4% 2019 2020 2019 2020 2019 2020

^Core capex: excludes capex attributable to right-of-use (RoU) assets and Intangibles Capex intensity = Capex/ Total revenue | AFCF = EBITDA - capex

Mobile Money revenue

MobileStrong growth Money in revenue, trarevenuensaction value and volume

Strong growth in revenue, transaction value and volume

MoMo revenue contribution by services offered Remittances MoMo highlights (GH m) ₵ 2% Advanced services 13%

2019 2020 56% 29% Withdrawals & Deposits P2P transfers

1,268 +32.2% Revenue 959

+37.5% EBITDA 448 616 Transaction value (GH₵ bn) and volume (bn)

2.6

549 1.9 EBITDA margin 46.7% 48.6% +1.9pp 1.4 303 219 2020 Annual Report Annual PLC 2020 (MTN Ghana)

2018 2019 2020 Scancom Scancom Transaction value Transaction volume 37

Y’ello Hope Our response to COVID-19 Y’ello Hope Our response to COVID-19

MTN strives to have a positive impact on society, the • Provision of free access (zero-rate) of the Smart environment and economies in the markets in which it Workplace portal for all government workers operates. We invest in initiatives aimed at meeting the • Donation of GH¢5 million of PPEs for frontline needs of communities where we operate. health workers As the leading operator in Ghana, we made a • Donation of digital equipment to Noguchi commitment to provide the needed support to relieve Memorial worth GH¢42,000; and people from the devastating effect of the COVID-19 • Distribution of 85,000 masks to various pandemic. This is what led to the launch of the Y’ello hospitals and clinics nationwide Hope initiative. Y’ello Hope sought to provide support • Two-month behavioral change campaign urging to all groups of stakeholders beginning with our people to wear their mask (Be Wise and Wear it employees. Our employees, being our most treasured for me campaign). resources have been at the center of many things the organisation did. As at the end of December 2020, the Reaching out to frontline workers cumulative value of MTN Ghana’s efforts to fighting Throughout the COVID-19 pandemic, the MTN COVID-19 was GH¢139 million. Foundation has been concerned about the inadequate From the beginning of the pandemic, frontline staff supply of PPEs in hospitals and schools. Since the who cannot work from home, were provided more pandemic started, the MTN Foundation has reached than 80 buses to transport them to work to minimize out to 52 health facilities and 15 senior high schools exposure to the virus. MTN also continues to monitor across the country, providing them with PPEs and other and safeguard the wellbeing of staff and their families lifesaving supplies. The supplies provided include: through, weekly health surveys and support to our • Nose masks – 122,000pcs extended workforce through the Ghana Staff Care • Face shield – 42,000pcs Emergency Fund. • Disposable gowns – 5,000pcs In an era of accelerated digitalisation MTN Ghana expanded • Contactless thermometers – 600pcs its digital channels to allow for customer self-service and • Methylated spirit – 950 gallons enable quick and easy access to all our support channels • Surgical gloves – 300 cartons through our social media handles, myMTN app and our Contributing towards the COVID-19 vaccination dedicated digital customer service tools. program Other interventions carried out by MTN Ghana include: In January 2021, MTN Group announced a US$25 • Supply of PPEs for all frontline staff million donation to support the African Union’s • Provision of relevant tools to enable about 90% COVID-19 vaccination programme and help secure of staff work from home up to seven million doses of the vaccine for health workers across the continent. MTN Ghana is pleased • Boosting network resilience (50% increase in to play its part in this initiative and, as at April 5, 2021, international bandwidth, 100 new sites); to the company had delivered 356,000 doses of the support work from home, online school and AstraZeneca vaccine to support the Ghana government’s entertainment efforts. These vaccines were immediately dispatched to

2020 Annual Report Annual PLC 2020 (MTN Ghana) • Provision of free access to over 200 be used by frontline workers. educational websites for several educational institutions MTN remains committed to working with its partners

Scancom Scancom to fight COVID-19. As we progress through 2021, we • Offer of free MoMo P2P transfers up to GH¢100 40 will remain focused on supporting our people, our daily from March 2020 till date customers and stakeholders.

performance for 2020 for performance

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2020 Annual Report Annual 2020 (MTN Ghana) (MTN PLC Scancom 41

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MTN Foundation MTN Foundation Brightening lives with sustainable interventions

The MTN Ghana Foundation having established itself Providing PPEs for frontline workers as a sustainable organisation continues to work Throughout the COVID-19 pandemic, the MTN tirelessly to brighten the lives of many Ghanaians. Foundation has been concerned about the Established in 2007 to drive MTN’s CSR initiatives in inadequate supply of PPEs in hospitals and the country, the MTN Foundation, under a separate schools. For the past few months, the Foundation Board of Directors selects and implements projects in has distributed the following COVID-19 protection three focus areas – Health, Education and Economic materials: Empowerment. The Foundation’s commitment is centred around the socio-economic development of • Nose masks – 122,000pcs the country through the roll-out of appropriate and • Face shield – 42,000pcs sustainable social interventions in communities all • Disposable gowns – 5000pcs over the country. • Contactless thermometers – 600pcs With its broad community impacting projects, the • Methylated spirit – 950 gallons goal of the Foundation is to support national and • Surgical gloves – 300 cartons international development priorities. It facilitates partnership and sharing of resources to achieve In all a total of 52 health facilities have benefitted mutual objectives. across the country. 15 senior high schools have also benefitted from similar donations. Since its inception, the MTN Ghana Foundation has implemented 154 projects with an investment of At the initial stage, the MTN Foundation donated over US$15 million impacting more than four million GH¢5 million worth of PPEs to the National COVID-19 people in Ghana. Trust Fund as well as essential equipment to the Noguchi Memorial Institute for Medical Research to Through the interventions of the MTN Ghana enable rapid testing and data processing. Foundation more people in rural Ghana as well as urban communities now have access to improved Forging ahead with sustainable interventions healthcare and better educational facilities. The The list below shows the top 10 projects that have Foundation has helped in improving teaching and just been handed over or are still being worked on. learning by providing comfortable classroom blocks for pupils who used to attend classes in dilapidated GHC structures. In its efforts to bridge the digital divide, • Police basic school 24-unit the Foundation has provided over 22 ICT centers classroom block 3,317,393 to several schools and communities. In the area of economic empowerment, the MTN Ghana Foundation • GIMPA technology lab 798,000 has enhanced the livelihood of many women by • Bright Scholars Program 2020 1,147,043 constructing processing plants for rural women in • Adzentum 3-unit Classroom Block 394,379 shea butter, palm oil whilst providing skills training • Denkyira library project 700,000 for them. • Dansoman library 808,666 Creating employment for the youth • Youth Employment & Though the world has been shattered by the Entrepreneurship Project 387,150 ravaging COVID-19 pandemic, the Foundation • Cape Coast blood bank 300,000 continues to do its work in the communities whilst • Tamale SHS girls dormitory 2,057,314 following the protocols put in place to ensure a safe implementation. Together with Plan International, • Adugyaman SHS 499,731 the MTN Foundation recently trained and set up 100 youth in Nsawam and Suhum, with training in MTN is committed to brightening the lives of mobile phone repairs and provided them with kiosks communities in which it operates in. and start-up kits to ply their trade. The project known as the Youth Employment and Entrepreneurships Project (YEEP) has been highly commended. 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 44 Brightening lives with sustainable interventions MTN Foundation 45 Scancom PLC (MTN Ghana) 2020 Annual Report

Save a Life - MTN Foundation

Our technology modernisation project Our technology modernisation project Modernising our network to support ghana’s digital agenda

As a company that believes everyone deserves the benefit of a modern connected world, MTN had already planned to modernize its network and provide solutions that simplifies network management whilst delivering high performance long before the pandemic. As a digital operator, MTN is in a state of perpetual innovation and the implementation of the network modernization strategy is a tangible evidence of MTN’s commitment to lead the digital transformation agenda. In view of this, MTN is currently executing an aggressive network modernization exercise which seeks to provide 4G technology to all MTN sites by the end of 2022. Work is ongoing in the Greater Accra and Ashanti regions to ensure this is achieved by the end of this year-2021, whilst the company works to ensure that sites in all other regional capitals are modernized by the end of next year. In MTN’s bid to continue to invest to expand the network, an amount of GH¢995 million (US$149 million) has been committed for the 2021 modernization process. About US$478 million has been invested in the network since 2019. No wonder, MTN Ghana was declared the best network for both Voice and Data in 2019 by Ookla (a global network speed testing company). MTN is proud of these achievements and will do its utmost best to remain MTN’s vision to lead the delivery of a bold new digital the network of choice. world, coupled with the need for local and global Overtime all these investments in technology will pay off; connectiveness, calls for more investments in the Stakeholders within the ecosystem will enjoy superior network. services, the network will be more robust and the The technology world has been a fast-growing area company will work to serve as a solid backbone to but what caused the most revolutionary digitalization support the government’s digital transformation is the global pandemic (COVID-19) which has agenda. inadvertently compelled many people to latch unto Given the current and future reliance on technology, the usage of digital devices. MTN will continue to position itself to deliver a robust Consumers of digital services hardly think about how network required to transform MTN Ghana into these services are provided and what infrastructure a digital operator by end of 2023 and a platform the telecommunications company need to put in company by 2025. place to get the system running. Digital transformation requires a lot of capital investment and a well thought out agile implementation approach. Capital investment primarily forms the backbone of a robust network and this can only be realized when the proper plan and capex is invested in it. 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 48 Our technology modernisation project Modernising our network to support ghana’s digital agenda 49 Scancom PLC (MTN Ghana) 2020 Annual Report

Our Technology Modernisation Project

Corporate Governance Our board of directors

Our Board of Directors Summary of director profiles

Date of Expiration of Name of director Nationality Position appointment directorship Ishmael Yamson Ghanaian Board chairman 27 April 2011 None Selorm Adadevoh Ghanaian Chief executive officer 8 June 2018 None Ebenezer Asante Ghanaian Non-executive director 1 July 2016 None Sugentharen Perumal South African Non-executive director 1 June 2018 None Ralph Mupita South African Non-executive director 1 June 2018 None Fatima Daniels South African Non-executive director 15 April 2016 None Rosemond Ebe-Arthur Ghanaian Non-executive director 1 March 2021 None Kofi Nkisah Dadzie Ghanaian Non-executive director 1 March 2021 None Felix Addo Ghanaian Non-executive director 1 March 2021 None NanaAma Botchway Ghanaian Non-executive director 1 March 2021 None

None of the directors has been appointed for a fixed term of office.

Ishmael Yamson Selorm Board Adadevoh chairman Chief executive (79) officer (47)

Ishmael Yamson is a seasoned, well-known corporate executive and a governance expert. He joined UAC of Ghana Ltd, later Unilever Ghana Ltd, in 1966 from the University of Ghana, Legon. Selorm is the chief executive officer of MTN, Ghana, appointed in He worked for the Company for 38 years in various capacities, June 2018. Prior to this, he was the chief executive officer of Digicel, the last 18 years of which he was Chief Executive Officer and Haiti. Selorm is a seasoned telecoms and financial services business Chairman. During that period, he restructured and transformed leader with over 22 years of experience spanning several years in the company and set it on a path of sustained growth for more the UK, USA, Caribbean and Africa. In addition to extensive C-level than 15 years. On retirement from Unilever Ghana, Ishmael telecoms experience across various operators, Selorm has over 10 Yamson formed Ishmael Yamson and Associates, a consulting years of consulting experience. First, as a technology consultant for firm, of which he is the Chairman. He holds a B.Sc. Economics Hewlett-Packard (HP) Consulting in the UK, and in the USA, as a (Hons) degree from the University of Ghana. Ishmael’s corporate management consultant for L.E.K. Consulting where he focused on life transcended Unilever. He has been deeply involved in the development of Ghana’s private sector having played key roles in mergers & acquisitions and private equity consulting projects. key Private Sector Associations including the Ghana Chamber of Since joining MTN, Selorm has been instrumental in consolidating Commerce (President), Ghana Employers’ Association (President) MTN Ghana’s market leadership position and driving new growth and Ghana Private Enterprise Foundation (President). He was a opportunities in Digital, Fintech, Home and Data more broadly. In founding member and Director of the Ghana Stock Exchange and his time as CEO, MTN Ghana has entrenched itself as the leader a founding member and Director of the Centre for Policy Analysis in customer experience and innovation in the Ghana telecoms (CEPA). He was also a member of the team that developed the first Ghana Investment Promotion Centre Act. 1994 (Act 478). industry with its #1 position in NPS, the launch of 4G+ and VoLTE, Additionally, he was a founding Director of the Commonwealth the relaunch of MyMTN app, launch of the Ayoba super app and the Business Council and the Chairman of the Council’s Governance launch of a Fintech Open API platform to commence the journey Committee and a member of the Duke of Edinburgh’s towards MTN’s Ambition 2025. Commonwealth Conference which focuses on the development of Selorm is a member of the African Leadership Network (ALN) and future leaders. He is also a member of the Board of Trustees of a lifetime supporter of Liverpool FC. He holds an MBA in finance the College of Health Sciences, University of Ghana. Previously he served as Chairman of the President’s Economic Advisory from the Wharton School, University of Pennsylvania, USA and a Council from 2009 to 2012, Chairman of the University of Ghana bachelor’s degree in civil engineering from the Kwame Nkrumah Council, Chairman of the Ghana Investment Promotion Council, University of Science and Technology (KNUST), Ghana. Director of the Bank of Ghana, Chairman of Standard Chartered Other directorships: DIAL (Washington DC, USA), Sahel Grains Bank, Chairman of Kumasi Breweries Limited and an Advisory Limited (Ghana), aYo Holdings Ghana, MobileMoney Limited. Council Member of Kosmos Energy, Ghana. Ishmael Yamson contributed to the ICC publication, “The New Europe in the New World Economy” at the ICC 33rd World Congress, Budapest 2000 and “Central Banking and the Millennium Development Goals – The Accra Agenda; Proceedings of the Bank of Ghana’s 50th Anniversary Symposium, Accra 2009”. He is the author of “Africa 2020 Annual Report Annual PLC 2020 (MTN Ghana) In Search of Prosperity”. He has spoken at several international conferences including the World Economic Forum in South Africa. He has received national and international awards including the Order of the Volta and the Companion of the Order of the

Scancom Scancom Volta from the Republic of Ghana, Africa Business Award by the 52 Commonwealth Business Council and an Honorary Doctorate Degree (Honoris Causa) from the University of Ghana.

Other Directorships: Mantrac Ghana Limited, Benso Oil Palm Plantation Limited, Ishmael Yamson & Associates, Nosmay Ghana Limited and Ghacem Ghana Limited. Our Board of Directors France andChina. footprint in Africa, United Kingdom and the representative in offices and isaccountable for setting thePeople Strategy across theBanks Management &Development for First Bank Nigeria andSubsidiaries Leone. Ms. Ebe-Arthur iscurrently theGroup Head, Human Capital for Nigeria, Ghana, Cote D’Ivoire, Cameroun, GambiaandSierra to Head of Human Resources, West Africa with responsibility 33 countries. She thenmoved to Standard Chartered Bank rising Resources Business Partner for Domestic Bank working across served at Ecobank Transnational Incorporated asGroup Human with responsibility for Sub Saharan Africa. Ms. Ebe-Arthur then Associate Director of People Services, Africa Projects, South Africa Ms. Ebe-Arthur was previously employed by Ernst & Young as a plethora of experience from theUnited Kingdom and Africa. of Personnel and Development (CIPD) and brings along with her Rosie Ebe-Arthur isaChartered Fellow of theChartered Institute (59) executive director Independent non- Ebe-Arthur Rosie (III) andINSOL International. of Chartered Accounts, (Ghana), International Insolvency Institute include, American Institute of Public Certified Accountants, Institute Maryland, USA. His professional certifications/memberships Ghana anda MA (Professional Accounting) from Loyola College, Felix holds aBScHons. (Administration) from theUniversity of and Technology,Mines Tarkwa. Felix was recently honored with aD.Sc (h.c) by the University of Act andtheBodies Corporate Insolvency Act. Reform Committee of Experts which reviewed theGhana Companies Felix was amember of theProfessor Justice Date-Bah Business Law and Ghana National Petroleum Corporation (Chairman). Felix haspreviously served onBoards of Standard Chartered Bank Council, anda Trustee of Achimota Golf Club. Member of theUniversity of Ghana College of Education Advisory Association of Restructuring and Insolvency Advisors (GARIA), Insurance Brokers, Payswitch Company, President of the Ghana organizations including Guinness Ghana Breweries (Chairman), KEK gas andgovernance. He currently serves ontheBoard of various portfolio of Board roles intheconsumer, services financial , oiland PwC Africa Central Governance Board. He has since developed a PwC asSenior Partner andCountry Manager andamember of the audits andprojects inthepublicsector. Mr. Felix Addo retired from insolvencies andturnarounds, andforensic financial reviews, across a wide range of engagements, including PPP transactions, Accountants andserved asaPartner at PwCover an18-year period Mr. Felix Addo is a Member of the Ghana Institute of Chartered (66) executive director Independent non- Felix Addo

(continued) S.A; andStandard Chartered Bank Ghana Limited. Other directorships: MTNCameron Limited; MTNCote d‘Ivoire Harvard andINSEAD(Paris). development programmes at the Ashridge Business School(UK), He alsoparticipated inexecutive level and general management part of MTN’s Global Advancement Programme (GAP) in 2010. in management from Henley Management College (UK)and was statistics from theUniversity of Ghana, apost-graduate diploma of directors. He holdsaBachelor of Arts (Hons) ineconomics and development director and member of the Unilever Ghana Board positions, including managing director for Zambia and customer Ghana, hespent 13 years with Unilever, where heheld various in 2008 as Sales & Distribution Executive. Prior to joining MTN MTN Rwanda for almost two years. Ebenezer joined MTN Ghana and Ghana (SEAGHA) Region, after having served as CEO of was Vice President of MTNGroup’s SouthernandEast Africa Central Africa (WECA) Region. Prior to assuming thisrole, he He iscurrently the Vice President of MTNGroup’s West and Ebenezer Asante was thefirst Ghanaian to head MTNGhana. (54) director Non-executive Asante Ebenezer and subsidiaries Other directorships: IC Asset Managers, Rancard Solutions Holdings Leadership Network andastudent of Shotokan Karate. degree from Vanderbilt University, isafellow of the Aspen Global Africa Com andother platforms. Kofi hasacomputer engineering Battlefield, World Bank Econothon, Springboard Global Convocation, a globaland African context at, Facebook F8, Techcrunch Startup contributor ontechnology strategy, evolution (4IR)andstartups in the governing Board of GeniusHive Music Academy. He isaregular served on Ashesi University’s Corporate Advisory Council, andon to andfulfilling access dignified work inthedigital economy. He has and joined the Mastercard Foundation to empower young Africans in Austin Texas, where heearnedapatent. In 2020heconsulted for and 80+languages. Prior to co-founding Rancard, Kofi worked at Dell used by mobilenetworks andbrands across multiplegeographies innovative cloud, intelligence artificial anddata graph platforms, Software Architect and subsequently CEO of Rancard, delivered Kofi is an experienced digital entrepreneur who in19 years asChief (44) executive director Independent non- Kofi Dadzie 53 Scancom PLC (MTN Ghana) 2020 Annual Report

Corporate Governance Our Board of Directors (continued)

Sugentharen Ralph Perumal Mupita Non-executive director Non-executive director (40) (49)

Sugentharen Perumal is currently the Group Executive: Financial Ralph Mupita is the president and chief executive office of MTN Operations and Financial Plan and Analysis, a position held since Group. Prior to this Ralph was the group chief financial officer from May 2018. During this period he has also acted as the Chief Financial April 2017, and executive director of the MTN Group effective 1 June Officer of MTN South Africa and most recently, MTN Group. Prior to 2018. He is a former chief executive officer of Old Mutual Emerging this, he was the Chief Financial Officer of MTN Irancell from 2014 to Markets (2012 to 2017) and has extensive experience in financial 2018. Sugentharen currently serves on multiple Boards and chairs services operations in Africa, Asia and Latin America markets. the Audit Committees of several MTN Group subsidiaries. Prior to Ralph currently serves on the Board of several of MTN Group’s joining MTN, he was an audit director at one of South Africa’s largest subsidiaries and is an independent non-executive director of Rand Merchant Investment Holdings Limited and Rand Merchant Bank audit and advisory firms, SizweNtsalubaGobodo. Holdings Limited. He previously served on the Boards of various Old Sugentharen is a highly accomplished finance professional with Mutual entities and joint ventures, as well as industry bodies such significant experience in strategic and operational planning as as Business Leadership South Africa, Association of Savings and well as management of telecommunications companies in the Investments South Africa and UCT Graduate School of Business. Middle East and Africa. As an audit professional, he accumulated Mr. Mupita holds a Bachelor in engineering (Hons) and Master’s in business administration, both from the University of Cape Town. He expertise and proficiency in the private sector as well as the is an alumnus of executive programmes at London Business School, public sector. This experience ranges over multiple industries INSEAD and Harvard Business School. including telecommunications, energy and utilities. Sugentharen is a Chartered Accounting CA(SA), being a member of the South Other directorships: MTN Group Limited, Mobile Telephone African Institute of Chartered Accountants. He holds a Bachelor Networks Holdings (Pty) Limited, MTN International (Pty) Limited, of Commerce (Hons) Accounting and Bachelor of Commerce (Hons) Mobile Telephone Networks Holdings Proprietary Limited, MTN Management Account degrees from the University of Natal. Business Solutions (Pty) Limited, MTN Group Management Services (Pty) Limited, MTN Nigeria Communications PLC, Irancell Other directorships: MTN South Africa, MTN Uganda, MTN Yemen, Telecommunications Services Company (Pty) Limited, MTN MTN Afghanistan, Mowali Dubai Limited, MTN International (Mauritius) Limited, Mauritius Investments, MTN Group Management Services (Pty) Limited, Easy Dial International Limited BVI, 14 Avenue Investment Holding Limited, Investcom Mobile Communications Limited, Servico S.A.L, Mobile Telephone Networks (Netherlands) B.V, Mobile Telephone Fatima Networks NIC B.V, 14th Avenue Holdings B.V, RMB Holdings Limited Daniels and Rand Merchant Investment Holdings Limited. Non-executive director (60)

Fatima worked in corporate positions ranging from regional and corporate finance to general manager of telecommunications for over a decade. She is a member of the South African Institute of Chartered Accountants. Fatima has extensive JSE listed company Board experiences.

2020 Annual Report Annual PLC 2020 (MTN Ghana) Other directorships: MTN Syria, MTN Sudan, MTN Benin, Momentum Metropolitan Holdings Ltd, Clicks Group Ltd, Rand Refinery (Pty)Ltd and AfriSam South Africa(Pty)Ltd. Scancom Scancom 54 Independent Botchway NanaAma Remuneration Committee, andBrainworks Capital. Sovereign Wealth Funds, GHL Bank Ltd, where she chaired the including Ghana Airports Company Ltd., theGhana Petroleum having served asanon-executive director onanumber of Boards, School of Law. She brings a wealth of experience to MTN Ghana York University’s Stern Schoolof Business andColumbiaUniversity Tomahtsu. Ms. Botchway isagraduate of Princeton University, New & Bartlett andCooley, andasanaudit accountant at Deloitte Touche worked as a lawyer at two leading global law firms, Simpson Thacher infrastructure projects. She began her career inNew York where she global companies oncross border mergers, acquisitions, energy and energy andinfrastructure. Ms. Botchway regularly adviseslocal and in Ghana. Her mainareas of practice are mergers and acquisitions, Dowuona &Company, aleading corporate andcommercial law firm Ms. NanaAma Botchway isthefounder andmanaging partner of N. (51) executive director non- and isamember of theGhana Bar Association Commercial Law) from the University of Cape Town, South Africa, bar in1995. She holdsaMaster’s degree inLaw (LLM)(Electronic/ from the University of Ghana Legon, and was called to the Ghana Consultancy Services. Pala holdsabachelor of Law Degree (LLB) Before joining MTNGhana, Pala was aSenior Associate at JLD Legal company to apubliccompany listed ontheGhana Stock Exchange. she was instrumental inthetransition of theCompany from aprivate Commercial Legal andCompany Secretarial functionof MTNGhana, which have been within thetelecoms industry. While head of the company law, andcorporate governance practice, 15 years of commercial law, with expertise in general corporate, advanced is alawyer with over 25 years of experience incorporate and Pala Asiedu Ofori is the company secretary of Scancom PLC She (51) Board secretary Asiedu Ofori Pala 55 Scancom PLC (MTN Ghana) 2020 Annual Report

Corporate Governance Our management team

Selorm Adadevoh refer to Board Profile (P 52 ) Chief executive officer

Samuel Koranteng Chief corporate services officer

Amma Samuel Koranteng is a lawyer by profession with over 30 years’ post Benneh-Amponsah qualification experience in general law practice, 11 years of which Chief human resource officer have been in the ICT and telecommunications industry. Samuel has been a specialist in regulatory and compliance affairs as well as government affairs with MTN Ghana since July 2013. He provides input for the development of a robust regulatory and compliance regime in line with existing legislative obligations binding on MTN to eliminate risk exposure and sanctions. Samuel advises on key regulatory issues, government relations and policy advocacy to ensure business promotion, licence protection and reputation management. Amma’s generalist HR experience and strategic focus have shaped Samuel is also an Executive Director of the MTN Ghana Foundation. MTN Ghana’s talent resourcing, management, development and Prior to joining MTN Ghana, Samuel worked with Vodafone Ghana as workplace culture. Her work experience spans over 20 years and a senior litigation lawyer, head of regulatory affairs and later, head of holds a degree in business administration from the University public policy. He obtained his Bachelor of Law Degree (LLB) from the of Ghana, a Master’s in business administration from the William University of Ghana in 1986 and was called to the Ghana Bar in 1988. Morris Business School, Coventry University, a post-graduate qualification in strategic management from the Columbia Executive Education programme, a PMP Associate and a member of the Society of Human Resource Management (SHRM). Amma’s passion for creating people-centered workplaces and ensuring employees are enterprise contributors has contributed to MTN Ghana’s many HR accolades including the prestigious Gold Investors In People (IIP) accreditation, the Investors in People Global Gold Award, William Tetteh recognition as the best organization in HR best practice in Ghana Chief capital consecutively and a company culture that exceeds Ghana, West projects officer Africa and global best practice norms in consecutive independent assessments. Amma lends her expertise to Boards both in the ICT and Non-ICT sector.

William Tetteh is a highly skilled and ambitious telecom’s professional with an enviable background in complex technical analysis and project management. For the past 19 years William has contributed to the telecommunication ecosystem and it’s evolving new technologies in Ghana and MTN to be precise. He is responsible Kobina for the development of strategy and operation support for the Bentsi-Enchill Capital Project Group function and ensures effective governance Acting chief finance officer and execution of Projects managed by the Division on behalf of the Organization to meet Business Plan objectives. His commitment to commercialising technology and conviction that purpose drives technology forward has shaped MTN Ghana’s Capital Projects deployment and management across both technical and non-technical projects. William holds a Bachelor of Science in Physics from the University of Science and Technology, an MBA in Project Management from the University of Ghana, an MSc in Kobina Sam Bentsi-Enchill is the acting chief finance officer. With Telecommunication Engineering from the Ghana Telecom University 2020 Annual Report Annual PLC 2020 (MTN Ghana) over 19 years work experience in various finance and accounting College and an Executive Education from Columbia University, positions in telecommunications. Kobina is currently responsible for USA and an Alumna of the prestigious MTN Global Advancement providing strategic leadership and oversight for the finance division Program. His most recent achievements came during the Maiden and aligning financial deliverables with business strategy. He holds

Scancom Scancom edition of the Project Management Awards where he won in the a Bachelor of Commerce degree from the University of Cape Coast, 56 Cape Coast and is a Chartered Management Accountant and a category of “Distinguished Contribution to Project Management member of the Chartered Institute of Management Accountants, Award”. William is a Board Member of the Ghana Investment Fund United Kingdom (CIMA,UK). for Electronic Communication (GIFEC). He is also the Chairman of the Technical Sub-Committee and a Member of the Audit Committee of the Board of GIFEC. Our management team integration of MSCBlade Cluster andhigh-density BSCin Yaounde. major andsignificant achievement. He also worked to achieve afull subscribers andHLRcapacity to support 80millionsubscribers, a three years put inplace aswitching capacity to support 50million instrumental intheimplementation of managed services and within in testing the4.5GinZambia. In Iran andCameroon, Thomas was in theMTNGroup to comply with theP10concept andanother first since 2014, leading theteam to attain somefirsts which includefirst of 2,100km of fibre in one year, maintaining No 1network inNPS chalked several successes someof which includethedeployment in Africa andMiddle East. Through hiscareer, Thomas hasalso Zambia, Iran, Cameroon, and Nigeria which has the largest network having worked in various capacities asatelecom engineer with MTN information systems. He hasover 20 years working experience, experience intechnology, networks, project management and its technology vision andstrategies. Thomas Motlepa has vast of managing MTNGhana’s network, establishing andimplementing Thomas Motlepa is the chief technical officer with the responsibility Project Management from theGeorge Washington University, USA. School, Lancaster University, UK, andaMaster‘s certificate in resource development and consulting from the Management administration. Jemima also holdsaMaster’s of Arts inhuman the University of Ghana Business SchoolandhasaBScinbusiness the customer care function, prior to her current role. She attended was alsothesenior manager for quality assurance andtraining for serving indifferent roles within thecustomer care department. She of years. She has over 15 years’ experience incustomer service, the best customer service team intheindustry for thelast couple the last four consecutive years. She hasalsoledher team to win customer service organisation in the telecom industry in Ghana for MTN Ghana. Under her leadership, MTNGhana has won thebest and execution of customer-related programmes andpoliciesin Jemima Kotei-Walsh isresponsible for providing strategic direction Thomas Motlepa Chief customer relations officer Kotei-Walsh Chief technical officer Jemima (continued) Practitioner. Electrical andElectronic Engineers andaPRINCE2Registered Society, achartered IT Professional, amember of theInstitute of an MBA inFinance. He isalsoafellow of theBritish Computer Science andCity University Business School, UK where he pursued alumnus of Kingston University, UK where hestudiedComputer National, inadditionto his7+ years at Vodafone Ghana. He isan UT Holdings, WestLB AG, GoldmanSachs, Mint Global and Abbey / Banking related roles from histimeat Citigroup, Credit Suisse, brings on board significant experience in Technology and Finance Ghana andtheUK andsomeselected European markets. Bernard industries including Banking, Logistics, Insurance andConsulting in Vodafone Ghana. He has worked insenior IT roles with various business strategy. Prior to joining MTN, Bernard was theCIOof oversight for the IS Division and aligning IT deliverables with Bernard isaccountable for providing strategic leadership and and EMBA from University of Ghana Business School. Strategies and Go to Market. Abu holds a BSc. Admin in Marketing Trade responsible for driving andimplementing Commercial current General Manger for Regional Sales, SouthandDistributive and implementing strategies to drive growth intheRegions. He isthe Manager for thethree Business Units at different times developing Unit, Branch Network Services. He has beentheRegional Senior many Senior Positions suchasSenior Manager Corporate Business He has been with MTN Ghana since August 2001 and has held strategic vision and direction for the Sales and Distribution Division. Abubakar Mohammed is responsible for developing and providing Bernard Acquah Ag; Chief SalesandDistribution Chief information officer Mohammed Abubakar Officer 57 Scancom PLC (MTN Ghana) 2020 Annual Report

Corporate Governance Our management team (continued)

Eli Hini Didier Chief MFS officer Sala-Diakanda Chief risk and compliance officer

Eli Hini is the chief mobile financial services office responsible for Didier Sala-Diakanda is passionate and results-oriented governance, MobileMoney Limited, MTN Ghana’s subsidiary responsible for mobile risk & compliance executive with over 25 Years of experience in financial services. He is responsible for driving strategy, business operations and management across Africa. He joined MTN Ghana development, innovation and relevant operations of MTN’s Mobile from MTN Guinea-Conakry in 2015, where he was head of business Money business. Prior to Eli’s appointment as general manager, risk and corporate affairs. He also worked in MTN Group’s business he was the commercial senior manager for MTN Mobile Money, a risk management division in South Africa for nine months where role he held for approximately seven years. Eli was instrumental he was assigned to lead the group enterprise risk management in setting up Mobile Money services in Ghana and growing the function. Didier joined MTN from Warid Telecommunication Côte subscriber base, transaction volumes and value. He also led the d’Ivoire, where he was the deputy CFO. Prior to this, he worked for MTN Mobile Money team to receive ISO certification (ISO/IEC 12007: five years as regional financial controller for Celtel International/ 2013 certification) in January 2016 and the GSMA Mobile Money Airtel Group; in charge of seven francophone countries and working Certification in November 2019. Eli is a Chartered Marketer with directly with CEOs and CFOs to improve financials and internal over 18 years’ experience and has also held leadership positions in control. Didier started his career with PricewaterhouseCoopers, Unilever Ghana Limited and Coca-Cola Bottling Company Limited. where he worked for seven years across Central Africa and France. He holds a Bachelor of Science in agriculture from the Kwame Didier holds a Master’s in finance and accounting and a degree Nkrumah University of Science and Technology and a professional in management and economics from the Catholic University of post-graduate diploma in marketing from the Chartered Institute of Central Africa. He also holds multiple certifications in governance, Marketing, UK. Eli serves on the Board of MobileMoney Limited. risk and compliance and he is a certified member of Institute of Risk Management (IRM) and completed a general management programme (GMP) at the Witwatersrand Business School in South Africa. Didier serves on the Board of MobileMoney Limited.

Samuel Addo Noel Kojo-Ganson Chief enterprise Chief marketing officer business officer

Noel Kojo-Ganson is a seasoned senior marketing professional who Samuel Addo is responsible for both MTN Ghana’s Enterprise has 16 years’ FMCG and telecoms experience. He has a Master’s Business Unit (B2B) – MNC, Corporate Business, Government and in Business Administration specialized in Strategic Marketing Public Sector, SME and its Wholesale; Carrier Wholesale – Fixed and a fellow of the Chartered Institute of Marketing, UK. Noel’s and Mobile. He was a General Manager in the Sales and Distribution work experience prior to joining MTN Ghana includes holding key Division of MTN Ghana for 6 years. Prior to joining MTN, Sam Marketing leadership roles, in SABMiller now AB InBev as the Head of Marketing, Brand Development Manager for their Africa operations. worked for 13 years in several roles at Unilever Ghana, including He is the current Chair of the MTN Products and Services Innovation Area Manager. He holds a Bachelor of Science (Hons) in Biological Committee and leads our Commercial strategy initiatives. Noel has Sciences from the University of Ghana and a Post-Graduate ample breadth and depth of the Commercial landscape having led Diploma in Marketing from the Chartered Institute of Marketing teams in the Channel, Distribution, Trade Marketing, Brand and UK. He has been on Kellogg Executive Education and Columbia 2020 Annual Report Annual PLC 2020 (MTN Ghana) Consumer space. His experience includes the new areas of Digital, Business School Executive Education programs. large Data and Financial inclusion, and this will play a key role in the next frontier of delivering MTN’s digital strategy and vision. Scancom Scancom 58

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Corporate E “ v y r e b y d o d e s e r s e v e th b e ﬁ e n t f o s a d o m e c n r e nn o c d e t f li e ” Governance 60 Scancom PLC (MTN Ghana) 2020 Annual Report Financial Statements and Key reports 61 Scancom PLC (MTN Ghana) 2020 Annual Report

Operational performance for 2020 62 Scancom PLC (MTN Ghana) 2020 Annual Report financial position,financial thedirectors are that satisfied the Based onthereview, andin thelight of thecurrent cash flow forecast for the year to 31December 2021. The directors have reviewed theGroup’s budget and consolidated statements. financial ofclassification assets andliabilitiesreflected inthe that may materially alter thecarrying value or to disposeof thebusinessor cease operations The directors have noplansor intentions, for example detection of fraud andother irregularities. and taking reasonable steps for theprevention and responsible for safeguarding theassets of theGroup positionoffinancial theGroup. The directors are also disclose with reasonable accuracy at any timethe the Group keeps proper accounting records that The directors are responsible for ensuring that requirements of theCompanies Act, 2019(Act 992). Financial Reporting Standards and complied with the prudent inthecircumstances, followed International judgements andestimates that are reasonable and policies and then applied them consistently, made the directors have selected suitable accounting In preparing theseconsolidated statements, financial that period. Group and of the profit or loss and cash flows for give atrueandfair view of thestate of affairs of the statementsfinancial for eachfinancial year, which The directors are responsible for thepreparation of Statement of directors’ responsibilities for the year ended31December 2020. Company”) andits subsidiary (together “the Group”) statementsfinancial of Scancom PLC (‘’the their report together with theaudited consolidated The directors have thepleasure insubmitting Report of thedirectors Board chairman IshmaelYamson below: The number of shares held by directors are shown share capital of theCompany. MTN Group Limited hadmore than5%of theissued December 2020, noother shareholder apart from According to theregister of members asat 31 Substantive interest inshares any of thebusinessactivitiesof theGroup. in any third party or entity responsible for managing the Group. The directors and officers had no interest significantly or materially affected thebusinessof and officers of theGroup hadaninterest which material contract was entered into in which directors During the year under review, nosignificant or Interest of directors andofficers ended 31December 2020. dividend tofinal shareholders for the financial year payment of GH¢614.5million(GH¢0.05 per share) as December 2019. The directors recommend the GH¢491.6 millionfor thefinancial year ended31 ended 31December dividendof 2020andafinal dividend of GH¢368.7 million for thefinancial year GH¢0.05 per share). This consisted of aninterim per share) was paidin2020(2019:GH¢614.5million, Dividend amounting to GH¢860.3million(GH¢0.07 Dividend and listed onthe Johannesburg Stock Exchange. company incorporated intheRepublic of South Africa Its ultimate holding company isMTNGroup Limited, a Holding company 2020 are set out onpage 72. Theresults financial for the year ended 31 December Summary of results financial The Group’s principalactivitiesare to: Nature of business concern. in operation for theforeseeable future andisagoing Group hasaccess to adequate resources to continue of mobilebanking, payment services andfintech. provide consultancy andsupport services inthearea industry; and advance service services inthemobilefinancial develop strategic partnerships to provide services industry; provide services inthefinancial mobilefinancial voice, data, enterprises solutions; provide telecommunication services including The principalactivitiesof theCompany are to: of Scancom PLC, incorporated on5 November 2015. MobileMoney Limited, isa wholly owned subsidiary Subsidiary 2018. listing ontheGhana Stock Exchange on5September initial publicoffering (IPO) was completed with the including listing ontheGhana Stock Exchange. The required Scancom PLC to certain fulfil conditions broadband services inthe800MHz band. The licence to Scancom PLC to operate and provide mobile Authority (“NCA”) issuedaprovisional authorisation In June 2016, theNational Communications Localisation ordinary shares are disclosedinNote 2.27. 2020. Further details of theauthorisedandissued of nopar value have beenissuedasat 31December of 12.29 billion (2019: 12.29 billion) ordinary shares Scancom PLC during the year under review. A total There was nochange intheauthorisedshares of Stated capital in Note 2.11. non-executive directors isdisclosedasdirectors’ fee management personnel information inNote 2.35and The remuneration of directors isdisclosedunder key directors Remuneration of executive andnon-executive (533,300) (134,000) andanomineeholding account Octane SDILY07 2018  Held injoint ownership inthenameof Ishmael andLucy Yamson Report of thedirectors (Chairman) I. Yamson S. Perumal R. Mupita M. Kadri F. Daniels S. Adadevoh E. Asante K. Abeasi services industry; Provide services inthefinancial mobilefinancial industry; and advance service services inthemobilefinancial Develop strategic partnerships to provide  31 December 8,000,100 667,300 865,000 133,500 230,000 2020 - - - 31 December 8,000,100 667,300 865,000 133,500 230,000 2019 - - - (continued) of Ghanaians anddeepening inclusion. financial million intransaction fees while promoting thesafety of 2020. This saved customers atotal of GH¢93.6 transfers upto a value of GH¢100per day to theend PLC, extended theoffer for free Mobile Money P2P Limited, a wholly owned subsidiary of Scancom interest of the safety of our customers, MobileMoney efforts andpromote activitiesthat are inthebest In our bid to continue supporting Government’s end. the third quarter andthistrend continued to the year consumer incomes showed someeasing through The impact of COVID-19 on economic activity and COVID-19 remains subdued. level of activity following thegeneral declinedueto and mediumenterprise (SME)customers, thoughthe seeing someimprovements inactivity from our small manufacturing and hospitality customers. We are the overall effects of theeconomic slowdown onour experience somesupply chainchallenges, as well as Despite the positive developments, we continue to the year andtheeconomy continues to openup. of restrictions imposedby thePresident earlier in Over theperiod, we have seenaprogressive removal COVID -19 comprehensive income. GH¢9.8 million) was charged to thestatement of the year, anamount of GH¢13.9million(2019: 1,500 needy andbrilliant students inGhana. During foundation hasprovided scholarships to over the entire country. In thearea of education, the for over 4millionpeople with 152projects across improve healthcare, education andliving conditions The foundation hasinvested over GH¢55millionto activities. aside 1%of its profit after tax to fundthefoundation’s via theMTNFoundation. MTN’s globalpolicy isto set The Group performs its corporate social responsibility Donations andcharity the consolidated statements. financial and equipment isnot lessthanthe value shown in of thedirectors, thefair value of theproperty plant during thefinancial year under review. In theopinion and equipment or inthepolicy regarding their use There are nochanges inthenature of property, plant Property, plant andequipment fintech. area of mobilebanking, payment services and Provide consultancy andsupport services inthe 63 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 64 Scancom PLC (MTN Ghana) 2020 Annual Report BRIGHTer intheseuncertain times. quest to make thelives of our customers a whole lot network resilience andefficiency indelivering onour We remain focused onour people, customers, million asat endof December 2020. in thefight against COVID-19 stood at over GH¢100 branch network. The cumulative value of our efforts ensure allsafety protocols are adhered to, across our We will continue to provide PPEs andsanitizers, and our loved onesandfuture generations. awareness of wearing nosemasks inorder to protect It For Me’ campaign which seeks to continue creating Today, thiscampaign hastransitioned into the ‘Wear through aselflessact of wear ones’ nosemask. has created awareness to protecting oneanother Together with donationsof PPEs, thiscampaign way to protect themselves andtheir loved ones. wearing their nosemasks and wear themthecorrect at encouraging Ghanaians across thenationto keep MTN Ghana launchedthe ‘BE WISE’ campaign aimed COVID-19 pandemicandto keep Ghanaians safe, In support of Government’s efforts to curbthe the Government’s COVID-19 Trust Fund activities. essentials to support frontline medical staff through of personal protective equipment (PPEs) andother MTN Ghana Foundation donated GH¢5million worth million. To augment thiseffort, MTNthrough the Terabytes of free data valued at more than GH¢3 4.5 million students and teachers with over 150 the pandemic. To date, we have supported over for public and private institutions until the end of free access to over 200 websites for onlineeducation efforts inthefight against thepandemicby providing MTN Ghana continues to support Government’s Report of thedirectors (continued) himn he eeuie officer executive Chief Chairman Ishmael Yamson Selorm Adadevoh behalf by: directors on23February 2021andsignedontheir Company andGroup were approved by theboard of The annualreport statements andfinancial of the statements Approval of the annual report and financial information systems, services. andmobilefinancial such asmarketing, technology covering network and directors received updates inareas of thebusiness As part of the quarterly meetings of the Board, governance, anti-money laundering, risk andethics. a broad spectrumof areas including corporate exercise of their dutiesasdirectors. Trainings covered aimed at strengthening their skills and abilities in the instructor ledandonlinecourses andseminars, engaged inacombination of local andinternational Directors of Scancom PLC, in2020, have been Capacity building of directors GH¢4,580,000. Audit fee for the year ended31December 2020 was Auditor’s remuneration Chairperson Fatima Daniels Membership of the Audit andRisk Committee (ARC) of theBoard Audit andrisk committee report legal andregulatory requirements. information produced incompliance with applicable environment andthat thesesupport theintegrity of services andfunctionsenableaneffective control controlsfinancial andensuring that assurance and accounting standards. These includeinternal in compliance with allapplicable legal requirements statementsfinancial andrelated reporting financial systems and processes, and the preparation of governance, compliance and internal control of assets, operation of adequate risk management, discharging its dutiesrelating to thesafeguarding The ARC assists theBoard of directors in Mandate invited to attend meetings, asdeemedappropriate. officers (executives andsenior management) are also external auditor (PwC)attend ARC meetings. Other General Manager: internal audit &forensics andthe Officer, the General Manager: risk & compliance, The Chief Executive Officer, the Acting Chief Financial Modupe Kadri Ebenezer Asante Sugenthanren Perumal Fatima Daniels Name the committee reviewed: July 2020and19October 2020. At thesemeetings, under review on21February 2020, 27 April 2020, 17 The ARC met four timesduring thefinancial year Plc andits subsidiary MobileMoney Limited for andnon-financial) (both financial bothScancom as monitoring theeffectiveness of internal controls governance, risk and compliance activities as well its responsibility of exercising oversight over The ARC remained focused ondischarging in 2020 Summary of the Audit and Risk Committee Activities practices of theCompany. and regulations, code of ethics and business Degree of compliance to laiddown policies, laws independence of company auditor External audit plans, remuneration and external auditors) report recommendations (by internal & Progress against implementation of issued audit report statements andfinancial Audit planof theexternal auditors, audit findings Internal Audit &Forensic Services plans Adequacy of Risk &Compliance Management and Significant tax, regulatory andlegal issues management andbusinesscontinuity IT governance, information security, crisis cases andfraud risk alerts misstatements (actual or potential), major fraud orfinancial control non-financial issuesand Adequacy of internal controls – significant risk profile Major risk exposures andchanges to Company presented intheCompany’s statements financial Company’s performance results andfinancial as Member Member Member Chairperson Designation 29 July 2020 29 July 14 August2018 2018 1 June 7 February 2016 Date appointed 65 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 66 Scancom PLC (MTN Ghana) 2020 Annual Report Audit andrisk committee report (continued) audit of statements thefinancial for the year ended report, observations andmatters arising from their presented thefindings from revenue assurance At the19February 2021 ARC meeting, PwC achievement of corporate objectives. recommendations to remediate potential gaps to (SPA) reports presented by PwCandreviewed deliberated ontheSystems andProcess Assurance The committee at its meeting on19October 2020, assurance processes andpresents findings to ARC. to endreview of theselected controls andrevenue On anannual basis, external auditors perform anend December 2020. scope andreporting timetable for the year ended31 responsibilities of thedirectors andtheauditor, audit included objectives of theaudit, audit approach, on 19October 2020shared their audit plan which PwC, theexternal auditor, at the ARC meeting held External audit findings from internal audit reports. Services Divisions including thestatus of audits and of Risk &Compliance andInternal Audit &Forensic 19 February 2021and was updated ontheactivities Combined Assurance Plan for 2021at its meeting on The ARC reviewed andapproved theMTNGhana Forensic Services functions Risk &Compliance management / Internal Audit & recommended themto theBoard for approval. MobileMoney Limited presented by management and ended 31December 2020of bothScancom PLC and reviewed statements thefinancial for the year The committee at its meeting on 19 February 2021 the year ended31December 2020 Review of performance financial of thecompany for Key focus areas for 2021 independent of theCompany andGroup. The thatARC issatisfied theexternal auditor is 31 December 2020to thecommittee members. approach to corporate reporting. Continue to facilitate afair andbalanced standards; Review progress onadoptionof new accounting subsidiary. internal controls of MobileMoney businessand the risk management, compliance program and Review theadequacy of andimplementation of of related control breakdowns anddeficiencies mechanism, fraud investigations andremediation Continued oversight over whistleblowing and operational resilience programs; Monitor progress oncrisis, businesscontinuity controls, information security anddata privacy; control systems including information systems Continue to evaluate andimprove theinternal exposure, respond to risks andopportunities. of management actionsandstrategies to minimize Review significant risks andassesseffectiveness Risk identification, assessment andmitigation. structures; and further enhance maturity of compliance requirements. Monitor regulatory compliance Sustained oversight onlegal andregulatory of acombined assurance model; of defense intheorganization. Extract efficiencies Continue to strengthen thesecond andthird lines statementsThe financial comprise: 31 December 2020. Scancom Plc andits subsidiary for the year ended We have audited statements the financial of What we have audited (Act 992). the manner required by theCompanies Act, 2019 International Financial Reporting Standards andin Group for the year thenendedinaccordance with cash flows of theCompany standing aloneandthe 2020, andof performance thefinancial andthe subsidiary (together the “Group”) asat 31December position of Scancom Plc (the “Company”) andits statements give atrueandfair view of thefinancial In our opinion, theaccompanying financial Our opinion Report ontheaudit of statements thefinancial members of Report of theindependent auditor to the financial positionasatfinancial 31December 2020; the separate and consolidated statements of comprehensive income for the year thenended; the separate and consolidated statements of changes inequity for the year thenended; the separate and consolidated statements of cash flows for the year thenended;and the separate and consolidated statements of significant accounting policies. statements,financial which includeasummary of the notes to the separate and consolidated SCANCOM PLC a separate opiniononthesematters. forming our opinionthereon, and we donot provide Company’s statements financial asa whole, andin were addressed inthecontext of our audit of the statements of thecurrent period. These matters our audit of theCompany andtheGroup’s financial professional judgement, were of most in significance Key audit matters are thosematters that, inour Key audit matters responsibilities inaccordance with theCode. statements. We have our fulfilled other ethical our audit of theseparate andconsolidated financial Companies Act, 2019(Act 992)that are relevant to independence requirements of section143of the Ethics Standards Board for Accountants andthe Standards) (theCode)issuedby theInternational Accountants (including International Independence the International Codeof Ethics for Professional We are independent of theGroup inaccordance with Independence our opinion. is sufficient andappropriate to provide abasisfor We believe that theaudit evidence we have obtained report. audit of statements thefinancial sectionof our described inthe Auditor’s responsibilities for the responsibilities under thosestandards are further International Standards on Auditing (ISAs). Our We conducted our audit inaccordance with Basis for opinion 67 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 68 Scancom PLC (MTN Ghana) 2020 Annual Report members of Report of theindependent auditor to the 2.37.3 of statements. thefinancial disclosures are set out innotes 2.5.3, 2.36.8, The accounting policies, judgements and information. adjusted to reflect current andforward looking offs to thepayment profile of thepopulationand of trade receivables by applying thehistoric write write off iscalculated according to theage profile The lossratio usedinestimating ultimate loss ratio usedinestimating ultimate loss write off. receivable grouping and the calculation of loss as grouping of receivables, payment profile per underlying assumptionsusedinthe modelsuch technique applied for determining ECL andthe Management exercises judgement inthe expected lossallowance. losses (ECL), which requires theuseof lifetime (provision matrix)to providing for expected credit Management approach appliesthesimplified impairment lossesof GH¢11.7million. amounted to GH¢475millionafter providing for As at 31December 2020, trade receivables interconnect partners oncredit. subscribers, enterprise businessunits and services to post-paid individualandcorporate Communication TechnologyInformation The Group provides network services and GH¢11.7 million Impairment lossesontrade receivables of Key audit matter SCANCOM PLC (continued) disclosures statements. madeinthefinancial We assessed the appropriateness of the related reasonableness of forward looking information. ultimate loss write off. We assessedthe calculation of lossratio usedinestimating profile per receivable groupings and the made inthegrouping of receivables, payment We checked theappropriateness of judgements technique appliedfor determining ECL. We assessedtheappropriateness of the of trade receivable balances. to assesstheappropriateness of theage profile We tested theageing analysis of trade receivables the revenue andreceivables cycle. operating effectiveness of controls inrespect of We evaluated thedesignandtested the How our audit addressed thekey audit matter members of Report of theindependent auditor to the 2.16.4 of statements. thefinancial and disclosures are set out innotes 2.5.2and price index.The accounting policies, judgements that had variable payments linked to consumer respect of escalations for certain network sites leases.Management alsoexercised judgement in and history of terminating andnot renewing business planning cycle of three to five years far inthefuture anoptionoccurs, theGroup’s be exercised. Factors considered includehow whether it isreasonably likely that options will Management appliesjudgement inassessing extended (or not terminated). lease term if theleaseisreasonably certain to be option. Extension optionsare only includedinthe extension option, or not exercise atermination create aneconomic incentive to exercise an considers all facts and circumstances that In determining theleaseterm, management liabilities. contractual repayments in measuring the lease payments, escalation clauses and timing of judgements indetermining theleaseterm, lease Management madecertain assumptionsand borrowing rate. discounted using Scancom Plc’s incremental value of theremaining leasepayments, Lease liabilities were measured at thepresent lessors. space and land) and retail stores from various The Group leases network infrastructure (tower the statement of position financial Lease liabilities amounting to GH¢1.63 billion in Key audit matter SCANCOM PLC (continued) disclosures statements. madeinthefinancial We assessed the appropriateness of the related output. whether output would besimilar to management’s an independent copy of themodelto determine calculation by including management’s data in We evaluated theaccuracy of management’s and how escalations will betreated. option to extend aleaseterm will beexercised and assumptionsmadeindetermining if an We assessed the reasonableness of judgements of payments andminimumleasepayments. as leasecommencement andenddata, frequency and thequality of theobservable data usedsuch lease liabilities, including significant assumptions We assessedmanagement’s basisfor estimating to discount minimumleasepayments. management’s incremental borrowing rate used We assessedtheappropriateness of the present value of leasepayments. process for identifying aleaseanddetermining We obtained anunderstanding of management’s How our audit addressed thekey audit matter 69 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 70 Scancom PLC (MTN Ghana) 2020 Annual Report Companies Act, 2019(Act 992), andfor suchinternal Standards andinthe manner required by the accordance with International Financial Reporting statementsfinancial that give atrueandfair view in The directors are responsible for thepreparation of statements Responsibilities of the directors for the financial to thosecharged with governance. therein, we are required to communicate thematter if we conclude that there isamaterial misstatement Project, Corporate Governance and Administration, Blood Donation, Our Technology Modernisation response to COVID-19, Save aLife-MTN Foundation Operational Performance for 2020, Y’ello Hope - Our to Annual General Meeting, Dividend Declaration, When we read About This Report, Who We Are, Notice report inthisregard. are required to report that fact. We have nothing to material misstatement of thisother information, we of thisauditor’s report, we conclude that there isa other information that we obtained prior to thedate If, based on the work we have performed on the appears to bematerially misstated. or our knowledge obtained in the audit, or otherwise materially inconsistent statementswith the financial in doing so, consider whether theother information is is to read theother information above identified and, consolidated statements, financial our responsibility In connection with our audit of theseparate and form of assurance conclusion thereon. information and we donot and will not express any statementsfinancial doesnot cover the other Our opinion on the separate and consolidated expected to bemadeavailable to usafter that date. Corporate Governance and Administration which are Donation, Our Technology Modernisation Project, to COVID-19, Save a Life-MTN Foundation Blood Performance for 2020, Y’ello Hope - Our response General Meeting, Dividend Declaration, Operational and AboutReport, This WhoWe to Are, AnnualNotice we obtained prior to thedate of thisauditor’s report, statements andour auditor’s report thereon, which include theseparate andconsolidated financial and Five Year Financial Summary but doesnot and Risk Committee Report, Shareholder information Corporate Information, Report of theDirectors, Audit information. The other information comprises The directors are responsible for theother Other information members of Report of theindependent auditor to the SCANCOM PLC (continued) also: professional scepticism throughout theaudit. We exercise professional judgement andmaintain As part of anaudit inaccordance with ISAs, we consolidated statements. financial of users taken onthebasisof theseseparate and be expected to influence theeconomic decisions individually or in the aggregate, they could reasonably from fraud or error andare considered material if, misstatement when it exists. Misstatements can arise accordance with ISAs will always detect amaterial but isnot aguarantee that anaudit conducted in Reasonable assurance isahighlevel of assurance, opinion. and to issueanauditor’s report that includesour material misstatement, whether dueto fraud or error, statementsfinancial asa whole are free from about whether theseparate andconsolidated Our objectives are to obtain reasonable assurance statementsfinancial Auditor’s responsibilities for the audit of the Group’s reporting financial process. The directors are responsible for overseeing the realistic alternative but to doso. and/or theGroup or to cease operations, or have no the directors either intend to liquidate theCompany using thegoing concern basisof accounting unless applicable, matters related to going concern and to continue asagoing concern, disclosing, as for assessing theCompany andtheGroup’s ability statements,financial thedirectors are responsible In preparing theseparate andconsolidated fraud or error. are free from material misstatement, whether dueto enable thepreparation of statements financial that control asthedirectors determine isnecessary to override of internal control; intentional omissions, misrepresentations, or the error, asfraud may involve collusion, forgery, from fraud ishigher thanfor oneresulting from not detecting amaterial misstatement resulting to provide abasisfor our opinion. The risk of audit evidence that issufficient andappropriate procedures responsive to thoserisks, andobtain due to fraud or error, designandperform audit misstatement of statements, thefinancial whether Identify andassesstherisks of material with themallrelationships andother matters regarding independence, andhave communicated we have complied with relevant ethical requirements We alsoprovide the directors with astatement that we identify during our audit. any significant ininternal deficiencies control that of theaudit andsignificant audit findings, including among other matters, theplannedscope andtiming We communicate with thedirectors regarding, members of Report of theindependent auditor to the Group’s internal control; expressing anopinionontheeffectiveness of the circumstances, but not for thepurposeof procedures that are appropriate inthe relevant to theaudit inorder to designaudit Obtain anunderstanding of internal control made by thedirectors; accounting estimates andrelated disclosures policies usedandthereasonableness of Evaluate theappropriateness of accounting concern; cause the Group to cease to continue as a going report. However, future events or conditions may evidence obtained upto thedate of our auditor’s opinion. Our conclusions are basedontheaudit such disclosures are inadequate, to modify our and consolidated statements financial or, if report to therelated disclosures intheseparate we are required to draw attention inour auditor’s we conclude that amaterial uncertainty exists, Group’s ability to continue asagoing concern. If conditions that may cast significant doubt onthe material uncertainty exists related to events or based ontheaudit evidence obtained, whether a use of thegoing concern basisof accounting and, Conclude ontheappropriateness of thedirectors’ in amanner that achieves fair presentation; and represent the underlying transactions and events disclosures, and whether statements thefinancial content of statements, thefinancial including the Evaluate the overall presentation, structure and audit opinion; group audit. We remain solely responsible for our direction, supervisionandperformance of the statements.financial We are responsible for the an opinionontheseparate andconsolidated or business activities within the Group to express regarding information thefinancial of theentities Obtain sufficient appropriate audit evidence SCANCOM PLC (continued) (ICAG/P/1209). this independent auditor’s report isEdward Gomado The engagement partner ontheaudit resulting in iii) ii) i) following matters. We that: confirm carrying out our audit we consider andreport onthe The Companies Act, 2019(Act 992)requires that in Report onother legal andregulatory requirements of suchcommunication. be expected to outweigh thepublicinterest benefits adverse consequences of doing so would reasonably not becommunicated inour report because the circumstances, we determine that amatter should about thematter or when, inextremely rare unless law or regulation precludes public disclosure We describethesematters inour auditor’s report matters. of thecurrent periodandare therefore thekey audit intheauditsignificance of statements thefinancial we determine thosematters that were of most From thematters communicated with thedirectors, to eliminate threats or safeguards applied. independence, and where applicable, actionstaken that may reasonably bethought to bear onour are inagreement with thebooks of account. the Group’s statement of comprehensive income the Group’s statement of positionand financial from our examination of thosebooks; and been kept by theCompany, sofar asappears in our opinion proper books of account have our audit; and belief were necessary for thepurposesof explanations which to thebest of our knowledge we have obtained alltheinformation and 71 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 72 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedis) for the year ended31December 2020 Statements of comprehensive income The notes onpages 76to 143are anintegral part of statements. thesefinancial Diluted/Basic Earnings per share Total comprehensive income Other comprehensive income Profit after income tax Income tax expense National stabilisation fiscal levy Profit before income tax Finance costs Finance income Operating profit Amortisation Depreciation and Amortisation Earnings Before Interest Tax Depreciation Other operating expenses Selling, distributionandmarketing expenses Employee benefits expense Interconnect androaming costs Cost of handsets andother accessories Direct network operating costs Other income Revenue from contracts with customers 2.13.3 2.12.3 2.12.3 2.17.3 2.16.1 2.6.9 2.6.6 Note 2.15 2.14 2.11 2.10 2.9 2.8 2.7 (1,035,553) GH¢ 0.113 1,395,694 1,394,895 1,972,723 2,300,728 3,178,181 6,033,428 (479,191) (447,226) (128,725) (748,728) (455,133) (266,820) (267,335) (750,393) 799 (98,637) (92,760) 119,221 12,747 Group 2020 GH¢ 0.102 1,253,153 1,253,153 1,641,652 1,687,033 2,562,530 4,778,634 (413,297) (321,416) (447,112) (128,464) (747,033) (446,851) (258,295) (267,335) (750,313) Company - (67,083) (92,760) 401,731 12,747 H 0.082 GH¢ - 1,007,958 1,007,958 1,443,374 1,828,889 2,630,433 5,181,836 (928,190) (363,247) (462,288) (100,237) (701,307) (386,044) (231,559) (282,706) (624,043) (72,169) (98,861) 76,773 Group 2019 - H 0.094 GH¢ - 1,160,169 1,160,169 1,455,570 1,382,076 2,182,028 4,237,407 Company (468,497) (246,623) (460,940) (699,978) (356,336) (224,994) (282,706) (623,985) (48,778) (99,974) (98,861) 534,434 - Chairman YamsonIshmael signed ontheir behalf by: statementsThe financial on pages 72to 143 were approved by theBoard of directors on23February 2021and The notes onpages 76to 143are anintegral part of statements. thesefinancial (All amounts are inthousandsof Ghana Cedis) for the year ended31December 2020 Statements of position financial Income tax assets Other assets financial at amortisedcost Other assets Trade receivables Inventories Current assets Capitalised contract cost Contract assets IRU assets Investment insubsidiary Investment insecurities Obligations to electronic money holder Borrowings Non-current liabilities Intangible assets Right of useassets Property, plant andequipment Non-current assets Contract liability IRU liability Lease liabilities Deferred tax liabilities Equity Total assets Current liabilities Provisions Cash andcash equivalents Stated capital Provisions T M I Nati Retained earnings Other reserves Borrowings Lease liabilities Total liabilities IRU liability Total equity andliabilities RU assets rade andother payables obile money float onal fiscal stabilisationonal fiscal lev y s

2.16.4 2.19.2 2.13.5 2.22.1 2.20.3 2.20.2 2.19.1 2.18.1 2.26.1 2.16.1 2.16.1 2.20.1 2.19.2 2.16.4 2.13.6 2.29.3 2.26.1 2.29 2.28 Note 2.24 2.23 2.21 2.28 2.17 2.26 2.27 2.30 2.38 2.14 2.25 2.25 2.19 14,217,817 14,217,817 10,878,630 December 8,441,851 1,097,504 1,278,884 2,114,722 2,228,282 1,420,085 3,371,844 5,775,966 6,559,373 1,167,858 8,763,908 6,559,373 3,339,187 496,741 103,091 475,078 557,093 858,648 671,968 100,120 380,294 280,002 463,555 48,934 54,786 38,818 83,459 13,401 81,359 13,362 13,401 Group 3,112 5,117 6,140 3,337 At 31 At 2020 615 - Chief executive officer Adadevoh Selorm December 1 1,539,693 1,198,205 2,115,251 1,976,191 1,420,085 3,366,375 5,770,507 1,167,858 7,310,200 2,121,254 3,073,695 7,310,200 4,236,505 Company ,097,504 336,476 128,177 433,557 557,093 858,608 518,499 100,120 380,823 280,002 463,555 48,189 54,786 38,818 83,459 78,757 13,362 3,112 6,647 6,140 3,337 At 31 At 2020 615 50 - - - - 9,958,650 7,154,824 December 4,796,628 1,055,852 2,134,200 1,706,322 1,574,776 3,018,008 5,162,022 3,405,579 1,560,009 9,958,650 5,020,624 3,405,579 2,803,826 1,097,504 280,002 148,726 2 374,353 378,431 448,276 458,735 339,399 49,019 98,718 51,802 15,780 34,897 82,224 80,934 25,421 10,867 Group 5,60 3,841 2,363 3,770 At 31 At 2019 512 1 - - - 6,401,274 3,720,399 December 1,244,841 1,022,059 2,140,051 1,583,371 1,574,776 3,012,671 5,156,433 1,560,009 6,401,274 1,580,348 2,680,875 1,097,504 Company 280,002 148,726 101,197 363,023 358,243 447,974 340,546 225,421 345,250 48,115 50,971 15,780 34,897 82,224 80,934 10,867 3,841 4,214 3,770 5,601 At 31 At 2019 512 50 - - - - 73 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 74 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedis) Statement of changes inequity-Group &Company The notes onpages 76to are 143 anintegral part of statements. thesefinancial Balance at 31 December 2019 Dividend declared Transactionowners with Total comprehensive income Other comprehensive income Profit for the year Balance at 1 January 2019 Year ended31December 2019 Balance at 31December 2020 Dividend declared Transactionowners with Total comprehensive income Other comprehensive income Profit for the year Balance at 1 January 2020 Year ended31December 2020 Profit for the year Balance at 1 January 2020 Year ended31December 2020 Total comprehensive income Other comprehensive income Transfer to other reserves Balance at 1 January 2019 Year ended31December 2019 Balance at 31December 2020 Dividend declared Transactionowners: with Profit for the year Total comprehensive income Other comprehensive income Dividend declared Transactionowners: with Balance at 31December 2019 The notes onpages 76to 145are anintegral part of statements. thesefinancial - - - 1,097,504 1,097,504 1,097,504 1,097,504 - - 1,097,504 1,097,504 1,097,504 1,097,504 ------capital Stated capital Stated ------1,976,191 1,253,153 1,253,153 1,583,371 1,583,371 1,160,169 1,160,169 1,037,726 - (860,333) (614,524) Retained earnings - 1,394,895 1,706,322 1,394,895 2,228,282 1,312,888 1,007,958 1,007,958 1,706,322 (860,333) (614,524) - Retained earning (12,602) s - - reserves reserves

- 12,602 13,401 - - Other Other 799 799 ------3,073,695 1,253,153 1,253,153 2,680,875 2,680,875 1,160,169 1,160,169 2,135,230 - (860,333) - (614,524) 2,803,826 1,394,895 1,395,694 3,339,187 2,410,392 1,007,958 1,007,958 2,803,826 - (860,333) (614,524) equity equity Tota Total 799 l (All amounts are in thousands of Ghana Cedis) Ghana of thousands in are amounts (All Statements of cash flows The notes onpages 76to 143are anintegral part of statements. thesefinancial At endof year on cash andcash equivalents Exchange gain/(loss) At beginning of the year Movement incash andcash equivalents Net cash usedinfinancing activities Repayment of borrowings Proceeds from borrowings Principal element of leasepayments Cash flows from financing activities Net cash usedininvesting activities Acquisition of additionalIRUcapacity Purchase of securities equipment Proceeds from disposalof property, plant and Acquisition of intangible assets Acquisition of property, plant andequipment Cash flow from investing activities Net cash generated from operations National stabilization fiscal levy Income tax paid Dividend paid Dividend received from subsidiary Interest paid Interest received Cash generated from operations 2.28.1 2.28.1 2.19.1 2.16.6 2.17.4 2.16.2 2.13.5 Note 2.26 2.14 2.31 2.32 2,924,989 (122,511) (615,542) (451,969) (624,096) (220,974) (351,029) (101,391) (950,305) (860,333) (106,686) (39,984) (12,602) 671,968 458,735 212,927 945,000 959,534 306 53,260 Group 2020 493 - 2,261,514 (122,511) (615,542) (451,969) (611,494) (220,974) (351,029) (648,917) (860,333) (106,686) Company (39,984) (69,516) 518,499 340,546 178,085 945,000 912,090 300,000 (132) 36,028 493 - (607,545) 940,283 49,946 (107,964) 2,554,868 (200,000) (119,046) (836,291) (708,913) (614,524) (366,626) (70,325) (19,658) 2,264 (54,046) 458,735 406,525 265,000 44,435 Group 244 2019 - - 183,693 2,039,667 (200,000) (836,291) (107,964) (468,659) (366,626) (47,774) 1,046,768 480,000 Company (119,046) (708,913) (614,524) (19,658) (54,046) 340,546 156,431 265,000 422 24,684 244 - 75 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 76 Scancom PLC (MTN Ghana) 2020 Annual Report 2. 1. Notes

2.2 2.1.1 Going Concern 2.1 PRINCIPALPOLICIES ACCOUNTING GENERAL INFORMATION Covid-19 -related Rent Concessions- Amendments to IFRS16 using thegoing concern basis. cash generated from operations andborrowings. statementsThe financial have therefore beenprepared respectively (2019:GH¢224 million andGH¢336million). This by isfinanced theGroup andCompany through The Group andCompany’s current liabilities exceed its current assets by GH¢322millionandGH¢581 except for assets financial at fair value through other comprehensive income. Companies Act, 2019(Act 992). statementsThe financial have been prepared onthehistorical cost basis (IFRSs), asissuedby theInternational Accounting Standard Board (IASB), andtherequirements of the statementsThe financial have beenprepared inaccordance with International Financial Reporting Standards are set out below andare consistent with thoseadopted intheprior year, unlessotherwisestated. The principal accounting policies applied in the preparation of these annual consolidated statements financial Company, Scancom PLC andits subsidiary, MobileMoney Limited. services andfintech space. The consolidated statements financial are for theGroup consisting of the advance services andtheprovision of consultancy andsupport services inthemobilebanking, payment solutions, theprovision of services, mobilefinancial thedevelopment of strategic partnerships to provide The principalactivitiesare theprovision of telecommunication services including voice, data, enterprises The registered address of thebusinessisMTNHouse, Plot OER6, Independence Avenue, West Ridge, Accra. and listed onthe Johannesburg Stock Exchange. Its ultimate holding company is MTN Group Limited, acompany incorporated in the Republic of South Africa a publiccompany andits shares were listed ontheGhana Stock Exchange on5September 2018. operations on9September 1994. The Company’s regulations were amendedon13October 2016to become Scancom PLC was incorporated asaprivate limited liability company on14 April 1994andcommenced applied, as well astheamount recognised inprofit or lossarising from therent concessions. all qualifying rent concessions or, if not, information about the nature of thecontracts to which it hasbeen Entities applying thepractical expedients must disclosethisfact, whether theexpedient hasbeenappliedto result inaccounting for theconcessions as variable leasepayments intheperiod which they are granted. concessions in the same way as they would if they were not leasemodifications. In many cases, this will IASB madeanamendment of IFRS16Leases which provides lessees with anoptionto treat qualifying rent might take a variety of forms, including payment holidays and deferral of lease payments. In May 2020, the As aresult of theCOVID-19 pandemic, rent concessions have beengranted to lessees. Such concessions Basis of preparation New andamendedstandards adopted by theGroup 2. PRINCIPAL ACCOUNTING POLICIES(continued) Notes (continued) immediate effect. Key changes include: The IASB hasissuedarevised Conceptual Framework which will beusedinstandard-setting decisions with Revised Conceptual Framework for Financial Reporting 2.2 2.3 New standards, amendments andinterpretations not yet adopted material impact ontheGroup. There are noother IFRSor IFRICinterpretations that are not yet effective that would beexpected to have a periods andonforeseeable future transactions. amendments are not expected to have amaterial impact ontheGroup inthecurrent or future reporting December 2020reporting periodsandhave not beenearly adopted by theGroup. These standards and Certain new accounting standards and interpretations have been publishedthat are not mandatory for 31 have amaterial impact ontheGroup. 2020. There are noother IFRSs or IFRICinterpretations that are not yet effective that would beexpected to otherwise dealt with under the accounting standards will need to apply the revised Framework from 1 January Framework indetermining their accounting policiesfor transactions, events or conditions that are not No changes will bemadeto any of thecurrent accounting standards. However, entitiesthat rely onthe New andamendedstandards adopted by theGroup (continued) relevance or faithful representation of statements. thefinancial and expenses inother comprehensive income shouldberecycled where thisenhances the stating that profit or lossistheprimary performance indicator andthat, inprinciple, income adding guidance ondifferent measurement basis, and removing theprobability threshold for recognition andadding guidance onderecognition revising of thedefinitions anasset andaliability defining areporting entity, which may bealegal entity, or aportionof anentity reinstating prudence asacomponent of neutrality increasing theprominence of stewardship intheobjective of reporting financial 77 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 78 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.4Measurement principles 2. PRINCIPAL ACCOUNTING POLICIES(continued) Income tax assets Other assets Trade receivables Inventories Assets Item reserves securities/ Other Investment in cost Capitalised contract Contract assets Investment insubsidiary Intangible assets Right of useassets equipment Property, plant and Assets andliabilitiesshown inthestatement of positionare measured financial asfollows: Non-current assets Current assets reporting date substantively enacted at the that have beenenacted or authorities, using tax rates recovered from thetax Amount expected to be Cost Amortised cost realisable value Lower of cost andnet Measurement principle Comprehensive Income Fair value through Other amortisation Cost lessaccumulated Amortised cost impairment losses Cost lessaccumulated impairment losses accumulated recognised and Historical cost, less date at/before commencement - any leasepayment made liability -Initial measurement of lease Cost and impairment losses accumulated depreciation Historical cost, less

Borrowings Taxation liabilities Provision Unearned income Contract liabilities Trade andother payables Others Provisions Lease liabilities Deferred tax liabilities Borrowing Non-current liabilities Liabilities Item Current liabilities Amortised cost reporting date been enacted at the tax rates that have authorities using to bepaidto thetax Amount expected settlement amount Presentof value Cost Amortised cost Amortised cost Cost settlement amount Presentof value application rate at date of initial incremental borrowing using thegroup’s payments discounted remaining lease Presentof value settled when theliability is to apply to theperiod rates that are expected measured at thetax Undiscounted amount Amortised cost Measurement principle 2. PRINCIPAL ACCOUNTING POLICIES(continued) Notes (continued) 2.5.4 Income tax anddeferred tax 2.5.3 Impairment of trade receivables (ii) Variable leasepayment (i) Extension andtermination options 2.5.2 Lease liabilities 2.5.1 Contract Liability period in which suchdetermination ismade. initially recorded, suchdifferences will impact thecurrent anddeferred tax assets andliabilitiesinthe taxes will bedue. Where tax thefinal outcome of thesematters isdifferent from theamounts that were Group recognises liabilitiesfor anticipated tax audit issuesbasedonestimates of whether additional There are many transactions andcalculations for which theultimate tax determination isuncertain. The estimating ECL, default andcredit impaired assets. factors. The Group exercises significant judgements intheinputs, assumptionsandtechniques for profile of thepopulationadjusted to reflect current andforward-looking information onmicroeconomic according to theageing profile of thetrade receivables by applying thehistoric write offs to thepayment estimates theultimate write offs for populationof adefined trade receivables. A lossratio iscalculated lifetime expected loss allowance for all trade receivables. In applying the provision matrix, the Group The Group approach appliestheIFRS9simplified to measuring expected credit losses which usesa liability. in thecontract, escalations basedontheseinvoices were discarded by directors indetermining thelease Certain network sites have variable leasepayments linked to CPI. To theextent that there are nofloors a businessplanning cycle of between 3to 5 years. determined that areasonably certain periodof exercising anoptionto extend leaseterm to bealignedto to exercise anextension option. Due to thetechnological nature of MTNoperations, thedirectors have the leaseterm, management considers allfacts andcircumstance that create aneconomic incentive to maximiseoperational flexibility inmanaging theassets usedinthegroup’s operations. In determining Extension and termination options are included on a number of leases across the group. These are used recognise credit into revenue. patterns. Management estimates abreakage rate with which to gradually release unexercised rights or exercised by thecustomer. The pattern of rights exercised isestimated by reference to recharge/usage The Group recognised theexpected breakage amount asrevenue inproportion to thepattern of rights as contract liability. Customers may not exercise alltheir rights, andtheseare often called breakage. Recharge vouchers that have beenpurchased but not loadedandairtimebut not usedisrecorded below: adjustment to the carrying amounts of assets and liabilities within thenext financial year are discussed accounting policies. The estimates andassumptionsthat have asignificant risk of causing amaterial seldom equaltheactualresults. Management alsoneedsto exercise judgement inapplying theGroup’s The preparation of statements financial requires the use of accounting estimates which, by definition, will 2.5 Critical accounting estimates andjudgement 79 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 80 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.6 Revenue from contracts with customers 2.5 Critical accounting estimates andjudgement (continued) 2. PRINCIPAL ACCOUNTING POLICIES(continued) 2.6.5 Other 2.6.4 Mobile, devices andaccessories 2.6.3 Digital andFintech 2.6.2 Interconnect androaming 2.6.1 Network services 2.5.5 Useful lives of property, plant andequipment Revenue isrecognised over timecommencing onthedate of activation or subscription. connectivity, wireless broad bandservices, infrastructure sharing, infrastructure rentals andICT services. Other revenue comprises revenue from fixed broad band, international andlocal leasedlinesproviding transaction price agreed inthecontract. point intime, when risks andrewards of ownership are transferred to thebuyer. It ismeasured at the Revenue from the sale of mobile handset devices and accessories to third parties are recognised at a Digital revenue isrecognised uponsubscriptionbasedontariff plans. at a point in time. Digital revenue is revenue earned on value addedservices and recognised over time. subscriber payment transactions are madeandare basedontransaction prices set out for thoseservices transfers, subscriber cash out, other fees charged to merchants. Fintech revenue isrecognised when Fintech revenue isdriven by fee income received from subscribers, transactions by subscribers onmoney counterparties or by theregulator. is recognised only when thecash isreceived. It ismeasured at thetransaction price agreed with the the transaction date that theinterconnect revenue will bereceived; in which case interconnect revenue Interconnect androaming revenue isrecognised onausage basis, over time, unlessit isnot probable on services are utilisedby thecustomer or ontermination of thecustomer relationship. Amounts received from prepaid voucher salesisdeferred asacontract liability andrecognised when over timecommencing onthedate of activation or subscription. Network services revenue comprises revenue from airtime voice, data and SMS. Revenue is recognised rendering of services at apoint intimeandover timeinthefollowing major product andservices lines. The Group derives revenue from thetransfer of mobilehandset, devices andaccessories andthe returns andtrade discounts. services intheordinary course of theGroup’s activities. Revenue isshown, net of indirect taxes, estimated Revenue comprises thefair value of theconsideration received or receivable for thesaleof goods and future depreciation charges could berevised. developments could impact theeconomic usefullives andtheresidual values of theseassets, therefore, useful lives ranging from 3to 20 years. Changes intheexpected level of theusage andtechnological The cost of property, plant and equipment is depreciated on a straight line basis over their estimated Notes (continued) the Group inrespect of mobile money float interest. Included inrevenue from digital andfintech isinterest income of GH¢21.6million(2019:GH¢17.9million) that isretained by (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) recognition Timing of revenue with customers Revenue from contracts Year ended31December 2019 Over time At apoint intime Over time recognition Timing of revenue with customers Revenue from contracts Over time At apoint intime recognition Timing of revenue with customers Revenue from contracts Year ended31December 2019 Over time At apoint intime Company Year ended31December 2020 At apoint intime Year ended31December 2020 2.6.6 Disaggregation of revenue from contracts with customers 2.6 Revenue from contracts with customers (continued) recognition Timing of revenue with customers Revenue from contracts Group 4,071,375 4,071,375 4,071,375 3,476,036 3,476,036 3,476,036 Network Services 4,078,870 4,078,870 4,078,870 3,476,036 3,476,036 3,476,036 Services Network Network Services Services Network - -

- - Interconnect and Interconnect and and roaming Interconnect and roaming Interconnect 267,35 267,356 267,356 344,028 344,028 344,028 344,028 roaming 259,86 roaming 259,861 259,861 344,028 344,028 6 - -

1 - - Digital and Digital and

314,097 314,097 314,097 288,396 303,149 303,149 Fintech Fintech 14,753 Digital and Digital and 349,393 1,568,891 1,219,498 1,568,891 1,247,577 1,247,577 288,396 959,181 Fintech Fintech - devices and accessories devices and accessories

Mobile, 41,10 41,10 Mobile, 41,100 devices and 33,677 33,677 33,677 accessories devices and accessories - -

- Mobile, Mobile, 33,67 41,100 41,100 41,100 33,678 33,678 0 0 - 8 84,706 84,706 84,706 80,517 80,517 80,517 Other Other 80,517 84,706 84,706 84,706 80,517 80,517 Other Other - - - - 4,188,977 5,181,83 6,033,428 1,260,598 6,033,428 4,772,830 5,181,836 4,237,40 4,778,634 4,778,634 4,423,437 4,237,407 4,188,977 992,859 355,197 48,430 Total Total Total Total 6 7 81 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 82 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.6 Revenue from contracts with customers (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) 2.6.7 Segment reporting i) Capitalisation of subscriber acquisition costs 2.6.8 Assets andliabilitiesrelated to contracts with customers reported internally to theGroup. reportable segments are largely grouped according to how data on the segments are managed and executive committee to make key operating decisions, allocate resources andassessperformance. The regularly reviewed by theGroup. The Group reportable hasidentified segments that are usedby the Operating segments reflect the Group’s management structure andthe way information financial is been capitalised. platform, andfees to theoperator of theMNP platform for successful portings. These have therefore agent commissions for successful portings to theMTNnetwork via themobilenumber portability (MNP) are recoverable. These costs includeagent anddealer commissions onsuccessful SIMactivation costs, The Group expects that incremental subscriber acquisition costs for obtaining andrenewing contracts The Group focuses onrevenues from the various categories, EBITDA margin andCapex spend. % YoY % after tax Profit 2019 after tax Profit 2020 YoY % spend Capex 2019 spend Capex 2020 margin EBITDA 2019 margin EBITDA 2020 Revenue 2019 Revenue 2020 3,476,036 4,078,870 Network Services 17%

and roaming Interconnect 344,028 259,861 (24)% Digital and 1,247,577 1,568,891 Fintech 26% devices and accessories Mobile, 33,678 41,100 22% 80,517 84,706 Other 5% 1,394,895 5,181,836 1,007,958 1,112,539 1,486,784 6,033,428 Tota 34% 51% 53% 16% l 2.6 Revenue from contracts with customers (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) (ii) Assets recognised from costs to acontract fulfil 2.6.8 Assets andliabilitiesrelated to contracts with customers (continued) 2.6.9 Other Income The Group hasrecognised thefollowing assets andliabilitiesrelated to contracts with customers: with thepattern of recognition of theassociated revenue. asset is amortised on a straight-line basis over the term of contract the specific it relates to, consistent The Group recognised assets inrelation to costs to long-term fulfil Wi-Fi service contracts. The contract Other income for 2020relates to professional fees refund from MTNDubai Limited. Other Income Capitalised contract cost contracts Capitalised costs relating to acquisition of customer Contract liabilities–network services Contract liabilities–customer loyalty points Costs incurred to acontract fulfil (contract assets) Loss allowance Total contract liabilities

2.20.2 2.20.3 2.20.1 Note

31 December Group and Company 100,120 93,430 12,747 38,818 38,818 - 6,700 3,112 2020 2020 31 December Group and Compan 34,897 34,897 18,956 61,978 80,934 - 3,841 2019 2019 y - 83 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 84 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.8 Interconnect androaming costs 2.9 Employee expenses benefits 2.7 Direct network operating costs (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Spectrum andregulatory fees Leased linescosts Network maintenance costs Interconnect costs Roaming Costs Transmission costs 2.9.3 Defined contribution plan 2.9.3Defined 2.9.2 Long term employee benefits 2.9.1 Short-term employee benefits rendered during aperiodare recognised asanemployee benefit expense when they are due. in the current and prior periods. Contributions to contribution plans inrespectdefined of services if thefund doesnot holdsufficient assets to pay allemployee benefits relating to employee service entity (a fund), and has no further legal or constructive obligations to pay additional contributions the Group pays a fixed percentage of employees’ remuneration as contributions into a separate The Group operates contribution scheme. adefined A contribution planisoneunder defined which discounted to determine its present value. employees have earnedin return for their services inthecurrent andprior periods;that benefit is Group’s obligation inrespect of long-term employee benefits istheamount of future benefit that were for permanent staff who have attained aminimumof five years of service to theGroup. The Long service awards were instituted andimplemented inDecember 2016. The criteria qualification end of eachreporting date. price. A provision israised to represent thegrowth in value of allunexercised compensation at the of Scancom PLC’s value according to set rulesandmovements in theMTNGroup Limited share The Group hasacompensation schemefor managers andexecutives basedonboththeappreciation settle theliability, andat least oneof thefollowing conditions ismet: leave andfor non-vested short-term benefits when there isnorealistic alternative other thanto on anundiscounted basisasanexpense inthat reporting period. Provision ismadefor accumulated Remuneration to employees inrespect of services rendered during areporting period isrecognised that they will receive abonus andtheamount can bedetermined Achievement of previously agreed bonuscriteria hascreated a valid expectation by employees there isaformal planandtheamounts to bepaidare determined upto thefinancial year end;

750,393 127,309 297,595 295,736 29,753 Group 2020

Compan 750,313 127,309 297,586 295,665 29,753 y Group and Company 114,682 267,335 244,492 624,043 241,796 248,597 18,968 22,843 Grou 2020 2019 p Group and Company Compan 282,706 263,714 623,985 114,682 241,796 248,542 18,992 18,965 2019 y 2.10 Selling, distributionandmarketing expenses 2.11 Other operating expenses 2.9 Employee expenses benefits (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.9.4 Terminationbenefits discounted to their present value. reliably. Benefits falling duemore than12monthsafter thestatement of positiondate financial are and it isprobable theoffer will beaccepted, andthenumber of acceptances can beestimated or to provide termination benefits asaresult of anoffer madeto encourage voluntary redundancy when the Group is demonstrably committed to any such plan without the possibility of withdrawal redundancy inexchange for thesebenefits. Termination benefits are charged against profit or loss normal retirement date due to death or retrenchment or whenever an employee accepts voluntary Termination benefits may bepayable when anemployee’s employment isterminated before the Bonus provision Pension cost Long service awards Marketing andadvertising expenses Training Mobile money commissions Share basedpayments Dealer commissions Post- employment benefits services (VAS) Expenses incurred inrespect of valued added benefits Salaries andother short-term employee Employee expense benefits Outsourced expenses non-network MTN foundation expenses Lease payment –non-network Travel andentertainment Impairment of trade receivables Power, maintenance andsecurity costs Management fees General expenses 1,035,553 266,820 120,334 600,942 254,259 181,008 455,133 267,657 44,560 13,651 15,964 35,562 10,106 60,018 13,949 12,513 33,895 79,291 Group Group Group 2,051 8,478 3,268 2020 2020 2020 - Company Company Company 446,851 267,657 258,295 413,297 254,259 174,974 13,042 44,560 11,653 33,815 75,955 15,357 35,503 99,057 59,981 9,943 3,268 2,033 9,149 8,237 - -

386,044 192,270 43,010 231,559 928,190 128,939 426,928 238,782 133,541 165,557 21,755 39,205 71,800 26,753 13,022 Group Group Group 9,806 7,940 1,924 7,892 9,042 7,369 258 2019 2019 2019 Company Company Company 356,336 192,270 224,994 468,497 238,782 133,123 160,638 43,010 96,592 19,295 38,659 48,269 26,200 12,563 6,635 7,940 1,897 7,787 9,005 6,904 258 - 85 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 86 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.12 Foreign currency translation Included ingeneral expenses are thefollowing: 2.11 Other operating expenses (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) 2.12.3 Finance income andcosts 2.12.2 Transactions andbalances 2.12.1 Functional andPresentation Currency asset, in which case thedirectly attributable borrowing costs are capitalized. borrowing costs are directly attributable to theacquisition, construction or production of aqualifying All borrowing costs are recognised inprofit or lossusing theeffective interest method, unlessthe on provisions, foreign exchange lossesandinterest onobligations onleaseliabilities. interest method. Finance costs comprise interest expenses onborrowings, unwinding of thediscount income isrecognised asit accrues inthestatement of comprehensive income, using theeffective and foreign currency gains that are recognised inthestatement of comprehensive income. Interest Finance income comprises interest income onfundsinvested, dividendreceived from subsidiary recognised inprofit or loss. year-end exchange rates of monetary assets andliabilitiesdenominated inforeign currencies are gains andlossesresulting from thesettlement of suchtransactions andfrom thetranslation at prevailing at thedates of thetransactions or valuation, where items are revalued. Foreign exchange Foreign currency transactions are translated into the functionalcurrency using the exchange rates currency of theGroup. statementsThe financial are presented inGhana Cedis, which isthefunctionalandpresentation reflects theprimary economic environment in which theentity operates (“the functionalcurrency”). Items statements includedintheannualfinancial are measured using thecurrency that best Unrealised foreign exchange differences Realised foreign exchange gains Dividend income Interest income from banks Interest expense onleaseliabilities Finance income Finance costs Unrealised foreign exchange losses Realised foreign exchange losses Other cost finance Interest expense onborrowings Audit fees andexpenses Directors’ fees andexpenses (447,226) (116,395) (278,501) (14,628) 20,293 (34,241) Group 119,221 4,580 (3,461) 45,668 53,260 Group 860 2020 2020 - 860 Company (447,112) (116,395) (278,501) Company (14,628) (34,127) 300,000 401,731 20,115 (3,461) 45,588 36,028 4,580 (462,288) (290,598) (42,940) (45,986) (79,446) Group 725 4,335 (3,318) 30,505 44,435 76,773 1,833 Group 2019 2019 - Company Company (460,940) (290,598) (42,286) (655) (45,292) (79,446) 480,000 534,434 (3,318) 30,405 24,684 725 4,247 2.13 Income tax (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.13.3 Analysis of income tax expense 2.13.2 Deferred income tax 2.13.1 Current income tax available against which thetemporary differences can beutilized. A deferred tax asset isrecognised to theextent that it isprobable that future taxable profit will be balances onanet basis. on thesametaxable entity, or ondifferent tax entities, where there isanintention to settlethese income tax liabilitiesandassets, andthey relate to income taxes levied by thesametax authority Deferred tax assets andliabilitiesare offset if there isalegally enforceable right to offset current temporary differences when they reverse or are settled. or substantially enacted at thestatement of position date financial andare expected to apply to reporting purposes. Deferred income tax ismeasured at tax rates (and laws) that have beenenacted arising between thetax basesof assets andliabilitiestheir carrying values for financial Deferred income tax isrecognised using theliability method, providing for temporary differences tax authorities. and establishes provisions where appropriate onthebasisof amounts expected to bepaidto the returns with respect to situationsin which applicable tax regulations are subject to interpretation tax payable inrespect of previous years. Management periodically evaluates positionstaken intax enacted or substantively enacted at thestatement of positiondate financial andany adjustment to Current income tax istheexpected tax payable ontaxable income for the year, using tax rates recognised inother comprehensive income or directly inequity, respectively. other comprehensive income or items recognised directly inequity. For theseitems thetax isalso statement of comprehensive income, except to the extent that it relates to items recognised in The tax expense for the year comprises current anddeferred tax. Tax isrecognised inthe Current income tax charge Deferred income tax charge Income tax expense 438,296 479,191 40,895 Group 2020 Company 285,843 321,416 35,573 328,054 363,247 35,193 Group 2019 Company 205,573 246,623 41,050 87 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 88 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.13 Income tax (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) 2.13.5 Current income tax assets 2.13.4 Tax rate reconciliation the statutory income tax rate asfollows: The tax ontheprofit before income tax differs from the theoretical amount that would ariseusing Years of assessment Dividend income not taxable Vehicle restriction Effective tax rate Income tax expense Deferred tax of prior periods(IFRS16) Tax effects of: Tax at standard rate of 25%(2019:25%) Profit before income tax U 2020 Up to 2019 2019 Group p to 2018

(206,862) - (374,353) (374,353) (206,862) - January At 1 At Charge for the year 438,296 438,296 328,054 328,054 1,972,723 (17,319) - 24.3% 479,191 493,181 Group - - 3,329 Adjustment 2020 389,621 389,621 112,000 112,000 1,641,652 Company (75,000) (17,319) 19.6% 321,416 410,413 - - 3,322 duringthe year Payments (950,305) (950,305) (607,545) (607,545) 1,443,374 - 363,247 360,844 25.2% Group 2,988 (585) 2019 - - December (167,491) 1,455,570 (496,741) (374,353) (122,388) Company (374,353) (206,862) (120,000) 246,623 363,893 16.9% 2,867 At 31 (137) 2.13 Income tax (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.13.6 Deferred tax liabilities 2.13.5 Current income tax assets (continued) differences have noexpiry dates andare allowed asand when they crystallise. of therelated tax benefit through taxable future profits isprobable. The deductibletemporary Deferred tax assets are recognised for tax lossescarried forward to theextent that therecognition Deferred tax isaccounted for inaccordance with theaccounting policy disclosedinnote 2.13.2. obligations which ispermitted under theRevenue Administration Act, 2016(Act 915). Adjustment of GH¢390million(2019:GH¢112million)relates to tax prepayment usedto set off VAT At 31December 2020 Deferred tax liabilitiesare attributable to thefollowing: 2019 Up to 2018 2020 Up to 2019 Years of assessment Company Provisions Property, plant andequipment Deferred tax liabilities Group (363,023) (363,023) (211,937) (211,937) - - January At 1 1 At Charge for the year 285,843 285,843 205,573 205,573 - -

Balance at 1 Adjustment (25,923) January 339,399 365,322 389,621 389,621 112,000 112,000 - - Recognised in amns during Payments profit or loss (1,228) 40,895 42,123 (648,917) (648,917) (468,659) (468,659) the year Balance at 31 - - December December (336,476) (363,023) 26,547 (363,023) (151,086) (211,937) (27,151) 380,294 407,445 At 31 89 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 90 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.15 Earnings per share 2.13 Income tax (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) 2.14 National Fiscal Stabilisation Levy potential ordinary shares. Group andthe weighted average number of ordinary shares outstanding, for theeffects of alldilutive hand, dilutive EPSiscalculated by adjusting profit or lossattributable to ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during theperiod. On theother calculates basicearnings per share by dividing profit or lossattributable to ordinary equity holders of the The Group present basicanddiluted earnings per share (EPS)for outstanding ordinary shares. The Group The National Fiscal Stabilisation Levy isalevy of 5%onprofit before income tax introduced in July 2013. At 31December Payments during the year 1 JanuaryAt Charge for the year 2.13.6 Deferred income tax liabilities(continued) Provisions Property, plant andequipment Deferred tax liabilities Company Provisions Property, plant andequipment Deferred tax liabilities Group At 31December 2019 Provisions Property, plant andequipment Deferred tax liabilities Company Group (101,391) (5,117) (2,363) 98,637 Balance at 1 2020 (20,074) January (22,849) (22,953) 345,250 365,324 304,199 327,048 304,206 327,159 Company (6,647) (69,516) (4,214) 67,083 Recognised in profit or loss (70,325) (2,363) (4,207) 72,169 Group (6,429) (2,970) 35,573 42,002 41,050 38,276 35,193 38,163 2,774 2019 Company Balance at 31 (47,774) (4,214) (5,218) 48,778 December (26,503) (20,074) (25,923) 380,823 407,326 345,250 365,324 339,399 365,322 2.15 Earnings per share (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.16 Property, plant andequipment shares with potential dilutive effect onthe weighted average number of ordinary shares inissue. At the reporting date, the basic and diluted earnings per share were the same. There are no outstanding shares at 31December Weighted average number of Profit attributable to shareholders Earnings per share value, onthestraight-line basis, over its expected usefullife asfollows: Depreciation of property, plant andequipment iscalculated to write off thecost of theasset to its residual in thecurrent period. in exchange for non-monetary assets or acombination of monetary andnon-monetary assets occurred No asset exchange transactions where one or more items of property, plant andequipment are acquired fair value of neither theasset received, nor theasset given upisreliably measurable. transaction ismeasured at fair value unlesstheexchange transaction lacks commercial substance or the borrowing costs are expensed in profit or loss. Property, plant and equipment acquired in an exchange is deemedto beanasset which takes more than12monthsto acquire, construct or produce. Other construction or production of aqualifying asset aspart of thecost of that asset. A qualifying asset The Group capitalises general borrowing andspecific costs directly attributable to theacquisition, period in which they are incurred. Repairs andmaintenance are charged to thestatement of comprehensive income during thefinancial cost of theitem can bemeasured reliably. The carrying amount of thereplaced part isde-recognised. when it isprobable that future economic benefits associated with theitem will flow to theGroup andthe Subsequent costs are included intheasset’s carrying amount or recognised asa separate asset, only use. appropriate category of property, plant andequipment when commissioned andready for its intended intended by management over its usefullife. Assets are transferred from capital work inprogress to an measured at initialcost anddepreciated from thedate theasset ismadeavailable for use inthemanner as separate items of property, plant andequipment. Property, plant andequipment under construction is When parts of anitem of property, plant andequipment have different usefullives, they are accounted for equipment iscapitalised aspart of theequipment. of future decommissioning costs. Purchased software that isintegral to thefunctionality of therelated attributable to bringing theassets to a working condition for their intended use, andthepresent value of self-constructed assets includesthecost of materials anddirect labour, any other costs directly Historical cost includesexpenditure that isdirectly attributable to theacquisition of theasset. The cost accumulated impairment losses. Property, plant andequipment are measured at historical cost lessaccumulated depreciation and

12,290,474 GH¢0.113 1,395,694 Group 2020 12,290,474 GH¢0.102 1,253,153 Company GH¢0.082 12,290,474 1,007,958 Group 2019 GH¢0.094 12,290,474 1,160,169 Company 91 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 92 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.16 Property, plant andequipment (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) estimated inorder to determine theextent, if any, of theimpairment loss. suffered animpairment loss. If any suchindication exists, therecoverable amounts of theassets are assets with finite usefullives inorder to determine whether there isany indication that thoseassets have The Group annually reviews thecarrying amounts of its property, plant andequipment andintangible impairment lossinrespect of goodwill isnot reversed. unit) inprior years. A reversal of animpairment lossisrecognised immediately inprofit or loss. An would have been determined hadnoimpairment lossbeenrecognised for theasset (or cash- generating unit) isincreased to therevised estimate of its recoverable amount but limited to thecarrying amount that When animpairment losssubsequently reverses, thecarrying amount of theasset (or cash-generating or groups of assets (the “cash-generating unit”). generate cash inflows from continuing use that are largely independent of thecash inflows of other assets the purposeof impairment testing, assets are grouped together into thesmallest group of assets that reflects current market assessments of thetime value of money andtherisks to specific theasset. For estimated future cash flows are discounted to their present value using apre-tax discount rate that unit isthegreater of its value inuseandits fair value lesscosts to sell. In assessing value inuse, the unit exceeds its estimated recoverable amount. The recoverable amount of anasset or cash- generating An impairment loss is recognised in profit or loss if the carrying amount of an asset or its cash- generating Impairment of assets the proceeds from thedisposalandcarrying amount of theasset, andisincludedinoperating profit. Gains or lossesarising onthedisposalor retirement of anasset isdetermined asthedifference between amount isgreater thanits estimated recoverable amount. An asset’s carrying amount is written down immediately to its recoverable amount if theasset’s carrying useful lives onthesamebasisasowned assets or, where shorter, theexpected term of therelevant lease. year. Land is held under leasehold terms. Assets held under leases are depreciated over their expected The assets’ residual values andusefullives are reviewed, andadjusted if appropriate, during eachfinancial Vehicles Leasehold improvement Office equipment Furniture andequipment Information systems Network infrastructure Buildings –leased Buildings –owned 3 -20 years Lease term Lease term 3 -5 years 20 years 5 years 5 years 5 years 2020 3 -20 years Lease term Lease term 3 -5 years 20 years 5 years 5 years 5 years 2019 93 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 94 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) At at 31December, 2019 CARRYING AMOUNT Balance at 31December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Transfers Balance at 1 January 2019 As at 31December,2020 CARRYING AMOUNT Balance at 31December,2020 Other movements Disposals Reallocations Depreciation Charge Balance at 1 Januar y 2020 ACCUMUL ATEDDEPRECIATION Balance at 31December,2020 Additions Re allocations Other movements Disposals Balance at 1 Januar y 2020 COST Group GHS ‘000 Buildings (58 ,239 ) (58 ,239 ) (10 ,021 ) (48 ,231 (48,231) (43,429) (55,377) 106,745 164,984 164,298 116,067 164,298 205,457 Land & (9,326) 14,218 4524 686 13 ------improvement Leasehold GHS ‘000 (54 ,133 ) (54 ,133 ) (45 ,732 (45,732) (32,230) 134,260 134,383 134,383 (8 ,388 ) (8 ,388 (8,948) (4,524) 80,127 88,651 61,429 17,577 55,377 (149 ) (13 ) (30) 26 s ------(2 ,323 ,020 ) (2 ,323,020 ) (1 ,921,116 (1,921,116) (1,558,852) equipment (401 ,904 ) (401 ,904 2,831,788 5,154,808 4,449,148 2,528,032 3,698,721 4,449,148 GHS ‘000 (362,599) Network 689,596 720,099 (3,961) 16,064 34,289 (16) 351 ------Information (323 ,452 ) (323 ,452 ) (266 ,557 GHS ‘000 (266,557) (210,013) (60 ,822 ) (60 ,822 Systems (59,603) 195,367 518,819 434,967 168,410 434,967 350,236 (3 ,898 ) (3 ,898 87,651 84,731 3 ,868 3,059 59 26 73 ------Furniture & GHS ‘000 (85 ,646 ) (85 ,646 ) (80 ,716 (80,716) (76,770) (1 ,925 ) (1 ,925 (7 ,013 ) (7 ,013 Fittings (3,414) (7,964) 94,720 93,513 12,797 93,513 95,498 1 ,908 (121 ) 3,253 9,074 4,018 1,429 175 ------GHS ‘000 (13 ,486 ) (13 ,486 (34 ,948 ) (34 ,948 ) (26 ,489 Vehicles (10,047) (26,489) (24,459) (2 ,711 ) (2 ,711 (4 ,583 ) (4 ,583 (8,937) 24,880 49,093 84,041 66,455 24,077 39,966 66,455 47,354 4 ,332 Motor 8,184 3,961 (167) 695 - - - - equipment GHS ‘000 (6 ,335 ) (6 ,335 ) (5 ,881 (5,881) (5,085) Office (229 ) (668 ) 1,011 7,346 7,575 1,694 7,575 6,794 (796) 781 217 (3 ) ------GHS ‘000 (16 ,116 ) (16 ,116 Progress (31,914) Work in (2,526) 52,342 98,463 98,463 62,240 62,236 62,240 62,240 34,444 (3 ) ------GHS ‘000 Inventory CAPEX (2,375) 2,526 151 151 176 176 151 25 ------

(2 ,885 ,773 ) (2 ,885,773 ) (2 ,394,722 (2,394,722) (1,950,838) (502 ,302 ) (502 ,302 3,371,844 6,257,617 5,412,730 3,018,008 5,412,730 4,499,933 GHS ‘000 (459,283) (10 ,635 ) (10 ,635 (12,351) 858,433 925,148 (2 ,911 ) (2 ,911 10 ,325 (3,961) 12,202 TOTA 3,961 3,043 926 154 L - - - At at 31December, 2019 CARRYING AMOUNT Balance at 31December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Transfers Balance at 1 January 2019 As at 31December,2020 CARRYING AMOUNT Balance at 31December,2020 Other movements Disposals Reallocations Depreciation Charge Balance at 1 Januar y 2020 ACCUMUL ATEDDEPRECIATION Balance at 31December,2020 Additions Re allocations Other movements Disposals Balance at 1 Januar y 2020 COST Group GHS ‘000 Buildings (58 ,239 ) (58 ,239 ) (10 ,021 ) (48 ,231 (48,231) (43,429) (55,377) 106,745 164,984 164,298 116,067 164,298 205,457 Land & (9,326) 14,218 4524 686 13 ------improvement Leasehold GHS ‘000 (54 ,133 ) (54 ,133 ) (45 ,732 (45,732) (32,230) 134,260 134,383 134,383 (8 ,388 ) (8 ,388 (4,524) (8,948) 80,127 55,377 88,651 17,577 61,429 (149 ) (13 ) (30) 26 s ------(2 ,323 ,020 ) (2 ,323,020 ) (1 ,921,116 (1,921,116) (1,558,852) equipment (401 ,904 ) (401 ,904 2,831,788 5,154,808 4,449,148 2,528,032 4,449,148 3,698,721 GHS ‘000 (362,599) Network 689,596 720,099 (3,961) 16,064 34,289 (16) 351 ------Information (323 ,452 ) (323 ,452 ) (266 ,557 GHS ‘000 (266,557) (210,013) (60 ,822 ) (60 ,822 Systems (59,603) 195,367 518,819 434,967 168,410 434,967 350,236 (3 ,898 ) (3 ,898 87,651 84,731 3 ,868 3,059 26 73 59 ------Furniture & GHS ‘000 (85 ,646 ) (85 ,646 ) (80 ,716 (80,716) (76,770) (1 ,925 ) (1 ,925 (7 ,013 ) (7 ,013 Fittings (3,414) (7,964) 94,720 93,513 12,797 93,513 95,498 1 ,908 (121 ) 3,253 9,074 4,018 1,429 175 ------GHS ‘000 (13 ,486 ) (13 ,486 (34 ,948 ) (34 ,948 ) (26 ,489 Vehicles (10,047) (26,489) (24,459) (2 ,711 ) (2 ,711 (4 ,583 ) (4 ,583 (8,937) 24,880 49,093 84,041 66,455 24,077 39,966 66,455 47,354 4 ,332 Motor 8,184 3,961 (167) 695 - - - - equipment GHS ‘000 (6 ,335 ) (6 ,335 ) (5 ,881 (5,881) (5,085) Office (229 ) (668 ) 1,011 7,346 7,575 1,694 7,575 6,794 (796) 781 217 (3 ) ------GHS ‘000 (16 ,116 ) (16 ,116 Progress (31,914) Work in (2,526) 52,342 98,463 98,463 62,240 62,236 62,240 62,240 34,444 (3 ) ------GHS ‘000 Inventory CAPEX (2,375) 2,526 151 151 176 176 151 25 ------

Financial Statements and Key reports 96 Scancom PLC (MTN Ghana) 2020 Annual Report Notes (continued) 2.16.1 Movement inproperty, plant andequipment- owned (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) At at 31December, 2019 CARRYING AMOUNT Balance at 31December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Transfers Balance at 1 January 2019 As at 31December, 2020 CARRYING AMOUNT Balance at 31December, 2020 Reallocations Disposals Depreciation charge Balance at 1 January 2020 ACCUMULATED DEPRECIATION Balance at 31December, 2020 Additions Reallocations Other movements Disposals Balance at 1 January 2020 COST Company Buildings GHS ‘000 (48,231) (43,429) (55,377) 116,067 164,298 205,457 (58,239) (10,021) (48,231) 106,745 164,984 164,298 (9,326) 14,218 Land & 4524 686 13 ------improvements L easehold GHS ‘000 (45,732) (32,230) 134,383 (54,133) (45,732) 134,260 134,383 (8,948) (4,524) 88,651 61,429 55,377 17,577 (8,388) 80,127 (149) (13) (30) 26 - - - - - (1,921,228) (1,558,964) (2,323,020) (1,921,228) equipment 4,449,079 2,527,851 3,698,652 (401,792) (362,599) 2,831,786 5,154,806 4,449,079 GHS ‘000 Network 720,099 689,663 (3,961) 34,289 16,064 (16) 351 ------Information (266,455) (209,945) (323,374) (266,455) GHS ‘000 (59,569) 168,455 434,910 350,179 Systems (60,787) 195,316 518,690 434,910 84,731 (3,898) 87,652 3,868 3,059 26 ------Furniture & GHS ‘000 (80,600) (76,691) (85,644) (80,600) Fitting (3,414) (7,927) 12,768 93,368 95,353 (1,925) (6,952) 94,715 93,368 1,908 4,018 1,429 3,185 9,071 87 ------s GHS ‘000 (24,007) (23,673) Vehicles (11,997) (31,608) (24,007) (2,219) (8,937) (8,789) 24,077 34,793 58,800 45,879 (1,883) (4,583) 22,989 43,715 75,323 58,800 4,332 8,184 Motor 271 64 - - - - equipment GHS ‘000 (5,880) (5,084) (6,333) (5,881) Office 1,695 7,575 6,794 (796) 7,311 7,575 (229) (670) 781 218 (35) 978 ------GHS ‘000 Progre (31,914) (16,116) Work in (2,526) 62,236 62,240 62,240 34,444 52,342 98,461 62,240 98,461 (5) ss ------Inventory GHS ‘000 (2,375) CAPEX 2,526 151 151 176 151 176 25 ------(2,392,134) (2,392,133) (1,950,016) (2,882,351) 3,012,671 5,404,804 4,498,187 (500,607) (457,954) 6,248,726 5,404,804 3,366,375 GHS ‘000 (10,635) (12,351) 856,542 925,148 (1,985) (2,219) (3,961) 10,326 12,202 TOTA 3,043 592 64 - - L Company At at 31December, 2019 CARRYING AMOUNT Balance at 31December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Transfers Balance at 1 January 2019 As at 31December, 2020 CARRYING AMOUNT Balance at 31December, 2020 Reallocations Disposals Depreciation charge Balance at 1 January 2020 ACCUMULATED DEPRECIATION Balance at 31December, 2020 Additions Reallocations Other movements Disposals Balance at 1 January 2020 COST Buildings GHS ‘000 (48,231) (43,429) (55,377) 116,067 164,298 205,457 (58,239) (10,021) (48,231) 106,745 164,984 164,298 (9,326) 14,218 Land & 4524 686 13 ------improvements L easehold GHS ‘000 (45,732) (32,230) 134,383 (54,133) (45,732) 134,260 134,383 (8,948) (4,524) 88,651 55,377 61,429 17,577 (8,388) 80,127 (149) (13) (30) 26 - - - - - (1,921,228) (1,558,964) (2,323,020) (1,921,228) equipment 2,527,851 4,449,079 3,698,652 (401,792) (362,599) 2,831,786 5,154,806 4,449,079 GHS ‘000 Network 720,099 689,663 (3,961) 34,289 16,064 (16) 351 ------(All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Information (266,455) (209,945) (323,374) (266,455) GHS ‘000 (59,569) 168,455 434,910 350,179 Systems (60,787) 195,316 518,690 434,910 84,731 (3,898) 87,652 3,868 3,059 26 ------Furniture & GHS ‘000 (80,600) (76,691) (85,644) (80,600) Fitting (3,414) (7,927) 12,768 93,368 95,353 (1,925) (6,952) 94,715 93,368 1,908 4,018 1,429 3,185 9,071 87 ------s GHS ‘000 (24,007) (23,673) Vehicles (11,997) (31,608) (24,007) (2,219) (8,937) (8,789) 24,077 34,793 58,800 45,879 (1,883) (4,583) 22,989 43,715 75,323 58,800 4,332 8,184 Motor 271 64 - - - - equipment GHS ‘000 (5,880) (5,084) (6,333) (5,881) Office 1,695 7,575 6,794 (796) 7,311 7,575 (229) (670) 781 218 (35) 978 ------GHS ‘000 Progre (31,914) (16,116) Work in (2,526) 62,236 62,240 62,240 34,444 52,342 98,461 62,240 98,461 (5) ss ------Inventory GHS ‘000 (2,375) CAPEX 2,526 151 151 176 151 176 25 ------(2,392,134) (2,392,133) (1,950,016) (2,882,351) 3,012,671 5,404,804 4,498,187 (500,607) (457,954) 6,248,726 5,404,804 3,366,375 GHS ‘000 (10,635) (12,351) 856,542 925,148 (1,985) (2,219) (3,961) 10,326 12,202 TOTA 3,043 592 64 - - L 97 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 98 Scancom PLC (MTN Ghana) 2020 Annual Report 2.16 Property, plant andequipment (Continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.16.1 Movement property, plant andequipment -leased At at 31December, 2020 CARRYING AMOUNT Balance at 31December, 2020 Depreciation charge Balance at 1 January 2020 ACCUMULATED DEPRECIATION Balance at 31December, 2020 Additions Restatements (Changes inaccounting policy) Balance at 1 January 2020 COST GROUPCOMPANY AND Buildings (19,734) (22,877) (42,611) 105,005 104,666 Land & 62,394 339 equipment 1,357,691 1,803,530 1,712,134 (226,692) (219,147) (445,839) Network 91,396 1,420,085 1,908,535 1,816,800 (488,450) (246,426) (242,024) 91,735 TOTAL Notes (continued) 2.16 Property, plant andequipment (Continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) 2.16.1 Movement property, plant andequipment –leased(continued) At at 31December, 2019 CARRYING AMOUNT Balance at 31December, 2019 Depreciation charge Balance at 1 January 2019 ACCUMULATED DEPRECIATION Balance at 31December, 2019 Additions Restatements (Changes in accounting policy) Balance at 1 January 2019 COST GROUPCOMPANY AND Buildings (22,877) (22,877) 104,666 100,521 Land & 81,789 4,145 - - equipment 1,492,987 1,712,134 1,661,908 (219,147) (219,147) Network 50,226 - - 1,574,776 1,816,800 1,762,429 (242,024) (242,024) 54,371 TOTAL - - 99 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 100 Scancom PLC (MTN Ghana) 2020 Annual Report 2.16.1 Movement inproperty, plant andequipment- owned (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Balance at 1 January 2019 As at 31December, 2020 Balance at 31December, 2020 Reallocations Other movements Disposals Depreciation charge for the year Balance at 1 January 2020 ACCUMULATED DEPRECIATION Balance at 31December, 2020 Additions Reallocations Other movements Disposals Balance at 1 January 2020 COST Group At at 31December, 2019 CARRYING AMOUNT Balance at 31December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Change in Accounting Policy (100 ,849 ) (100 ,849 GHS ‘000 Buildings (29 ,754 ) (29 ,754 ) (71 ,108 (71,108) (32,203) (43,429) (55,377) 169,139 269,988 268,964 205,457 197,856 268,964 100,521 Land & 18,363 13 .00 1,024 4524 ------improvements Lease hold GHS ‘000 (54 ,133 ) (54 ,133 (45 ,732 ) (45 ,732 (45,732) (32,230) 134,260 134,383 134,383 (8 ,388 ) (8 ,388 (8,948) (4,524) 80,127 61,429 17,577 88,651 55,377 (149 ) (13 ) (30) 26 ------(2 ,768 ,972 ) (2 ,768,972 (2 ,140 ,262 ) (2 ,140,262 (2,140,262) (1,558,852) equipment (628 ,597 ) (628 ,597 4,189,478 6,958,450 6,161,282 3,698,721 4,021,020 1,661,908 6,161,282 GHS ‘000 (581,745) Network 781,104 770,325 (3,961) 16,064 34,289 (113 ) (16) 351 ------Information (323 ,452 ) (323 ,452 ) (266 ,557 GHS ‘000 (266,557) (210,013) (60 ,822 ) (60 ,822 Systems (59,603) 195,367 518,819 434,967 350,236 168,410 434,967 (3 ,898 ) (3 ,898 87,724 84,731 3 ,868 3,059 59 26 ------Furniture & GHS ‘000 (85 ,644 ) (85 ,644 ) (80 ,716 (80,716) (76,770) (1 ,925 ) (1 ,925 (7 ,013 ) (7 ,013 Fittings (3,414) (7,964) 94,716 93,513 95,498 12,797 93,513 1 ,908 (125 ) 3,253 9,072 4,018 1,429 177 ------GHS ‘000 (13 ,486 ) (13 ,486 (34 ,949 ) (34 ,949 ) (26 ,489 Vehicles (10,047) (26,489) (24,459) (4 ,583 ) (4 ,583 (8,937) 22,862 49,095 84,044 66,455 24,077 47,354 39,966 66,455 4 ,332 Motor (690 ) 8,184 3,961 (167) 694 - - - - - equipment GHS ‘000 (6 ,333 ) (6 ,333 ) (5 ,882 (5,882) (5,085) Office (229 ) (668 ) 1,013 7,346 7,575 6,794 1,693 7,575 (797) 217 781 ------GHS ‘000 (16 ,116 ) (16 ,116 Progress (31,914) Work in (2,526) 52,342 98,462 98,462 62,240 62,236 34,444 62,240 62,240 (4 ) ------GHS ‘000 Inventory CAP EX (2,375) 2,526 151 151 176 176 151 25 ------(3 ,374 ,332 ) (3 ,374,332 ) (2 ,636,746 (2,636,746) (1,950,838) 7 ,229,530 (748 ,728 ) (748 ,728 4,791,929 8,166,261 1,762,429 4,499,933 4,592,784 7,229,530 GHS ‘000 (701,307) (10 ,635 ) (10 ,635 948 ,334 (12,351) 979,519 10,325 12,202 TOTA (968 ) 3,043 154 817 L - - - - At at 31December, 2019 CARRYING AMOUNT Balance at 31December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Change in Accounting Policy Balance at 1 January 2019 As at 31December, 2020 Balance at 31December, 2020 Reallocations Other movements Disposals Depreciation charge for the year Balance at 1 January 2020 ACCUMULATED DEPRECIATION Balance at 31December, 2020 Additions Reallocations Other movements Disposals Balance at 1 January 2020 COST Group (100 ,849 ) (100 ,849 GHS ‘000 Buildings (29 ,754 ) (29 ,754 ) (71 ,108 (71,108) (32,203) (43,429) (55,377) 169,139 269,988 268,964 197,856 268,964 100,521 205,457 Land & 18,363 13 .00 1,024 4524 ------improvements Lease hold GHS ‘000 (54 ,133 ) (54 ,133 (45 ,732 ) (45 ,732 (45,732) (32,230) 134,260 134,383 134,383 (8 ,388 ) (8 ,388 (8,948) (4,524) 80,127 88,651 17,577 55,377 61,429 (149 ) (13 ) (30) 26 ------(2 ,768 ,972 ) (2 ,768,972 (2 ,140 ,262 ) (2 ,140,262 (2,140,262) (1,558,852) equipment (628 ,597 ) (628 ,597 4,189,478 6,958,450 6,161,282 4,021,020 6,161,282 1,661,908 3,698,721 GHS ‘000 (581,745) Network 781,104 770,325 (3,961) 16,064 34,289 (113 ) (16) 351 ------(All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Information (323 ,452 ) (323 ,452 ) (266 ,557 GHS ‘000 (266,557) (210,013) (60 ,822 ) (60 ,822 Systems (59,603) 195,367 518,819 434,967 434,967 350,236 168,410 (3 ,898 ) (3 ,898 87,724 84,731 3 ,868 3,059 59 26 ------Furniture & GHS ‘000 (85 ,644 ) (85 ,644 ) (80 ,716 (80,716) (76,770) (1 ,925 ) (1 ,925 (7 ,013 ) (7 ,013 Fittings (3,414) (7,964) 94,716 93,513 93,513 95,498 12,797 1 ,908 (125 ) 3,253 9,072 4,018 1,429 177 ------GHS ‘000 (13 ,486 ) (13 ,486 (34 ,949 ) (34 ,949 ) (26 ,489 Vehicles (10,047) (26,489) (24,459) (4 ,583 ) (4 ,583 (8,937) 22,862 49,095 84,044 66,455 24,077 66,455 47,354 39,966 4 ,332 Motor (690 ) 8,184 3,961 (167) 694 - - - - - equipment GHS ‘000 (6 ,333 ) (6 ,333 ) (5 ,882 (5,882) (5,085) Office (229 ) (668 ) 1,013 7,346 7,575 7,575 6,794 1,693 (797) 781 217 ------GHS ‘000 (16 ,116 ) (16 ,116 Progress (31,914) Work in (2,526) 52,342 98,462 98,462 62,240 62,236 62,240 34,444 62,240 (4 ) ------GHS ‘000 Inventory CAP EX (2,375) 2,526 151 151 176 176 151 25 ------(3 ,374 ,332 ) (3 ,374,332 ) (2 ,636,746 (2,636,746) (1,950,838) 7 ,229,530 (748 ,728 ) (748 ,728 4,791,929 8,166,261 1,762,429 7,229,530 4,499,933 4,592,784 GHS ‘000 (701,307) (10 ,635 ) (10 ,635 948 ,334 (12,351) 979,519 10,325 12,202 TOTA (968 ) 3,043 154 817 L - - - - 101 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 102 Scancom PLC (MTN Ghana) 2020 Annual Report 2.16.1 Movement inproperty, plant andequipment (owned andleased)(continued) 2.16 Property, plant andequipment (Continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Reallocations Other movements Disposals Depreciation charge Balance at 1 January 2020 ACCUMULATED DEPRECIATION Balance at 31December, 2020 Additions Re allocations Other movements Disposals Balance at 1 January 2020 COST Company At at 31December, 2019 CARRYING AMOUNT Balance at 31 December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Change in Accounting Policy Balance at 1 January 2019 As at 31December, 2020 CARRYING AMOUNT Balance at 31December, 2020 (100 ,849 ) (100 ,849 Buildings GHS ‘000 (29 ,754 ) (29 ,754 ) (71 ,108 197,856 (71,108) (32,203) (43,429) (55,377) 269,989 268,964 169,140 268,964 100,521 205,457 Land & 18,363 1,025 4524 13 ------improvements Lease hold GHS ‘000 (45 ,732 ) (45 ,732 (54 ,132 ) (54 ,132 (45,732) (32,230) 134,260 134,383 134,383 (8,387 ) (4,524) (8,948) 80,128 88,651 17,577 55,377 61,429 (149 ) (13 ) (30) 26 ------(2,140 ,374 ) (2,140 ,374 (2,768 ,972 ) (2,768 ,972 (2,140,374) (1,558,964) equipment (628 ,598 ) (628 ,598 6,958,450 6,161,213 4,189,478 6,161,213 4,020,839 1,661,908 3,698,652 GHS ‘000 (581,745) Network 781,173 770,325 (3,961) 16,064 34,289 (16) 351 ------Information (323 ,374 ) (323 ,374 ) (266 ,455 GHS ‘000 (266,455) (209,945) (60 ,787 ) (60 ,787 Systems (59,569) 195,315 518,689 434,910 168,455 434,910 350,179 (3,898 ) 87,651 84,731 3 ,868 3,059 26 ------Furniture & GHS ‘000 (85 ,562 ) (85 ,562 ) (80 ,600 (80,600) (76,691) Fittings (1,925 ) (6,977 ) (3,414) (7,927) 94,592 93,368 12,768 93,368 95,353 1 ,908 (105 ) 3,254 9,030 4,018 1,429 107 ------GHS ‘000 (11 ,863 ) (11 ,863 (31 ,474 ) (31 ,474 ) (24 ,007 (24,007) (23,673) Vehicles (2,017 ) (4,583 ) (2,219) (8,937) (8,789) 22,989 75,189 58,800 43,715 24,077 34,793 58,800 45,879 4 ,332 8,184 Motor 271 64 - - - - - equipment GHS ‘000 (6,331 ) (5,881 ) (5,881) (5,084) Office (228 ) (667 ) 7,347 7,575 1,016 1,694 7,575 6,794 (797) 217 781 ------GHS ‘000 (16 ,116 ) (16 ,116 Progress Wor k in (31,914) (2,526) 52,338 98,462 62,240 98,462 62,236 62,240 62,240 34,444 ------GHS ‘000 Inventory CAP EX (2,375) 2,526 151 151 176 151 176 25 ------(3,370 ,694 ) (3,370 ,694 ) (2,634 ,157 (2,634,157) (1,950,016) (747 ,033 ) (747 ,033 8,157,154 7,221,604 4,786,460 1,762,429 4,587,447 7,221,604 4,498,187 GHS ‘000 (699,978) (10 ,634 ) (10 ,634 (12,351) 948,455 979,519 (2,271 ) (2,219) (3,961) 10,325 12,202 3,043 TOTA 107 592 64 - - At at 31December, 2019 CARRYING AMOUNT Balance at 31 December, 2019 Reallocation Other movements Disposal Depreciation charge Balance at 1 January 2019 ACCUMULATED DEPRECIATION Balance at 31December, 2019 Additions Reallocations Other movements Disposal Change in Accounting Policy Balance at 1 January 2019 As at 31December, 2020 CARRYING AMOUNT Balance at 31December, 2020 Reallocations Other movements Disposals Depreciation charge Balance at 1 January 2020 ACCUMULATED DEPRECIATION Balance at 31December, 2020 Additions Re allocations Other movements Disposals Balance at 1 January 2020 COST Company (100 ,849 ) (100 ,849 Buildings GHS ‘000 (29 ,754 ) (29 ,754 ) (71 ,108 197,856 (71,108) (32,203) (43,429) (55,377) 169,140 269,989 268,964 268,964 100,521 205,457 Land & 18,363 1,025 4524 13 ------improvements Lease hold GHS ‘000 (54 ,132 ) (54 ,132 ) (45 ,732 (45,732) (32,230) 134,260 134,383 134,383 (8,387 ) (4,524) (8,948) 80,128 61,429 88,651 17,577 55,377 (149 ) (13 ) (30) 26 ------(2,768 ,972 ) (2,768 ,972 ) (2,140 ,374 (2,140,374) (1,558,964) equipment (628 ,598 ) (628 ,598 4,189,478 6,958,450 6,161,213 1,661,908 3,698,652 4,020,839 6,161,213 GHS ‘000 (581,745) Network 781,173 770,325 (3,961) 16,064 34,289 (16) 351 ------(All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Information (323 ,374 ) (323 ,374 ) (266 ,455 GHS ‘000 (266,455) (209,945) (60 ,787 ) (60 ,787 Systems (59,569) 195,315 518,689 434,910 168,455 434,910 350,179 (3,898 ) 87,651 84,731 3 ,868 3,059 26 ------Furniture & GHS ‘000 (85 ,562 ) (85 ,562 ) (80 ,600 (80,600) (76,691) Fittings (1,925 ) (6,977 ) (3,414) (7,927) 94,592 93,368 12,768 93,368 95,353 1 ,908 (105 ) 3,254 9,030 4,018 1,429 107 ------GHS ‘000 (11 ,863 ) (11 ,863 (31 ,474 ) (31 ,474 ) (24 ,007 (24,007) (23,673) Vehicles (2,017 ) (4,583 ) (2,219) (8,937) (8,789) 22,989 43,715 75,189 58,800 24,077 34,793 58,800 45,879 4 ,332 8,184 Motor 271 64 - - - - - equipment GHS ‘000 (6,331 ) (5,881 ) (5,881) (5,084) Office (228 ) (667 ) 1,016 7,347 7,575 1,694 7,575 6,794 (797) 217 781 ------GHS ‘000 (16 ,116 ) (16 ,116 Progress Wor k in (31,914) (2,526) 52,338 98,462 98,462 62,240 62,236 62,240 62,240 34,444 ------GHS ‘000 Inventory CAP EX (2,375) 2,526 151 151 176 176 151 25 ------(3,370 ,694 ) (3,370 ,694 ) (2,634 ,157 (2,634,157) (1,950,016) (747 ,033 ) (747 ,033 4,786,460 8,157,154 7,221,604 1,762,429 4,587,447 7,221,604 4,498,187 GHS ‘000 (699,978) (10 ,634 ) (10 ,634 (12,351) 948,455 979,519 (2,271 ) (2,219) (3,961) 10,325 12,202 3,043 TOTA 107 592 64 - - 103 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 104 Scancom PLC (MTN Ghana) 2020 Annual Report 2.16 Property, plant andequipment (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.16.2 Cashusedfor thepurchase of property, plant andequipment 2.16.4Lease liabilities 2.16.3Impairment and security. financing sources andmakes certain adjustments to specific thelease, suchas. term, country, currency The Group determines its incremental borrowing rate by obtaining interest rates from various external as thediscount rate. environment with similar terms andconditions. Generally, theGroup usesits incremental borrowing rate have to pay to borrow thefundsnecessary to obtain anasset of similar value inasimilar economic readily determined, the Group’s incremental borrowing rate is used, being the rate that the lessee would The leasepayments are discounted using theinterest rate implicit inthelease. If that rate cannot be The leaseliability isinitially measured at thepresent value of thefollowing leasepayments: these leasesasanexpense onastraight-line basisover theleaseterm. not considered fundamental to its network. The Group recognises theleasepayments associated with leases of assets for which the value of theunderlying asset when it isnew isGH¢28,650or lessandis commencement date have leaseterms of 12monthsor less. The Group low-value defines leasesas some leasesof low-value assets (e.g. equipment)andfor office short-term leases, i.e. leasesthat at leases. However, theGroup haselected not to recognise right-of-use assets andleaseliabilitiesfor The Group recognises right-of-use assets andleaseliabilitiesat theleasecommencement date for most assetan identified for aperiodof timeinexchange for consideration. contains alease. A contract is, or contains, a lease if the contract conveys the right to control the use of periods. From 1 January 2019, at inception of acontract, theGroup assesses whether acontract is, or contracts are typically madefor fixed periods varying between 2to 15 years but may have renewal The Group’s leasesincludenetwork infrastructure (tower space andland) retail stores. Rental During the year, no property, plant andequipment was impaired. Additions for the year Credit purchases and equipment Cash usedfor purchase of property, plant that option Payments of penalties for terminating the lease, if the lease term reflects thelesseeexercising The exercise price of apurchase optionif thelesseeisreasonably certain to exercise that option Amounts that are expected to bepayable by thelesseeunder residual value guarantees as at theleasecommencement date Variable lease payments that are basedonanindex or rate, measured using theindex or rate Fixed payments (including in-substance fixed payments), lessany incentives receivable (507,404) 351,029 858,433 Group (505,513) Company 2020 856,542 351,029 (270,606) 979,519 708,913 Group Company (270,606) 2019 979,519 708,913 (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Renewal andtermination options 2.16.4 Lease liabilities(continued) payments. option, theGroup considers thebroader economics of thecontract andnot only contractual termination penalty. In determining whether theGroup hasaneconomic incentive to not exercise thetermination A number of leasesentitleboththeGroup andthelessor to terminate thelease without atermination of thelessee. significant change incircumstances occurs which affects thisassessment andthat is within thecontrol and history of terminating/not renewing leases. The assessment isreviewed if asignificant event or a include how far in the future an option occurs, the Group’s business planning cycle of three to five years judgement inassessing whether it isreasonably likely that options will beexercised. Factors considered lease term if theleaseisreasonably certain to beextended (or not terminated). The Group applies a termination option. Extension options(or periodsafter termination options)are only includedinthe and circumstances that create aneconomic incentive to exercise anextension option, or not exercise Group and not by the respective lessor. In determining the lease term, management considers all facts the leaseearlier. The majority of extension andtermination optionsheldare exercisable only by the A number of leasecontracts includetheoptionto renew theleasefor afurther periodor terminate basis. assets are depreciated over the shorter of theassets’ usefullives and theleaseterms on a straight-line impairment lossesandadjusted for certain re-measurements of theleaseliability. The right-of-use The right-of-use assets are subsequently measured at cost lessany accumulated depreciation and The right-of-use assets are initially measured at cost comprising thefollowing: exercised or atermination optionisreasonably certain not to beexercised. changes in the assessment of whether a purchase or extension option is reasonably certain to be a change intheestimate of theamount payable under aresidual value guarantee, or asappropriate, is re-measured when there isachange infuture leasepayments arising from achange inindex or rate, produce aconstant periodicrate of interest ontheremaining balance of theliability for eachperiod. It by leasepayments made. Interest costs are charged to the profit or lossover the lease period soasto The leaseliability issubsequently increased by theinterest cost ontheleaseliability anddecreased Decommissioning costs Any initialdirect costs received Any leasepayments madeat or before thecommencement date lessany leaseincentives The amount of theinitialmeasurement of theleaseliability 105 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 106 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Lease andnon-leasecomponents 2.16.4Lease liabilities(continued) 2.16.5Encumbrances operating expenses andare recognised inprofit or lossasthey are incurred. of its leaseliabilitiesandright-of-use assets. Therefore, non-leasecomponents are accounted for as prices. The Group hasnot elected the practical expedient to account for non-leasecomponents aspart alone selling prices. The stand-alone selling prices of eachcomponent are basedonavailable market consideration inthecontract to eachleaseandnon-leasecomponent basedontheir relative stand- A number of leasecontracts includebothleaseandnon-leasecomponents. The Group allocates the value of GH¢7,658million(2019:GH¢6,553million). Borrowings are secured by a floating charge on the Group’s total assets over 5 years with a carrying Measurement of leaseliabilities(Group andCompany) Right-of-use assets Measurement of right of useassets (Group andCompany) Non-current leaseliabilities Current leaseliabilities Buildings Depreciation Network Equipment Buildings Cost Carrying amount Network Equipment leases were GH¢452million. Additions to right of useassets during the year were GH¢91.8millionand total cash outflows for

31 December December 1,631,413 1,167,858 1,908,649 1,803,644 1,420,085 (488,564) (445,953) (42,611) 463,555 105,005 At 31 At 2020 2020 At 31December December (219,147) 1,708,735 1,560,009 1,816,800 1,712,134 1,574,776 (242,024) (22,877) 148,726 104,666 At 31 2019 2019

2.17Intangible assets (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) assets when thefollowing conditions are met: controlled by the Group, and that will probably generate economic benefits, are recognised asintangible Costs that are directly associated with theproduction of anduniquesoftware identifiable products Costs associated with maintaining computer software programs are recognised asanexpense asincurred. their estimated usefullives (three to five years). softwarethe specific into use. These costs are amortisedinthestatement of comprehensive income over Acquired computer software licenses are capitalised onthebasisof thecosts incurred to acquire andbring 2.17.1Computer software lives which doesnot exceed three years. Computer software development costs recognised asassets are amortisedover their estimated useful period. Development costs previously recognised asanexpense are not recognised asanasset inasubsequent Other development expenditure that doesnot meet thecriteria isaccounted for asanexpense asincurred. of thesoftware. beyond their isrecognised originalspecifications asacapital improvement and addedto theoriginalcost overheads. Expenditure that enhances or extends the performance of computer software programs Direct costs includethesoftware development employee costs andanappropriate portionof relevant 2.16.6Profit ondisposalof property, plant andequipment

equipment Profit ondisposalof property, plant and Proceeds Netbook value Accumulated depreciation Cost measured. The expenditure attributable to thesoftware product during its development can bereliably sell thesoftware product are available; and Adequate technical, andother financial resources to complete thedevelopment andto useor benefits; It can bedemonstrated how thesoftware product will generate probable future economic There isanability to useor sellthesoftware product; Management intends to complete thesoftware product anduseor sellit; It istechnically feasible to complete thesoftware product sothat it will beavailable for use; (10,325) (493) 10,635 Group (183) 310 2020 Company (10,325)

(493) 10,635 (183) 310 (12,202) (244) 12,351 Group (95) 149 2019 Company (12,202) (244) 12,351 (95) 149 107 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 108 Scancom PLC (MTN Ghana) 2020 Annual Report 2.17 Intangible assets (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) or unexpired license period. renewal periodsof licenses are given below andare determined primarily with reference to thecontractual straight-line methodto allocate thecost of licenses over their estimated usefullives. The usefullives and carried at cost less accumulated amortisation and impairment losses. Amortisation is calculated using the Licenses are initially shown at historical cost. Licenses have afinite usefullife andare subsequently 2.17.2Licenses IRU 2x3 MHz on900&2x71800MHz Fixed Access LicenseFixed Access 2600MHz spectrum 800MHz Spectrum (2x5MHz 800MHz Spectrum (2x10MHz International Gateway 2G spectrum(900MHz and1800MHz) 3G Type of License Date granted/ renewed 12 February 2019 2 D 1 December 2018 10 January 2020 23 January 2009 23 January 10 August2019 23 March 20 ecember 2019 Va 21 June 2016 rious dates 15years 15 years 15 5 ye 15 15 year 15 years 5 ye 15 15year 15year License 5 years Term ars ars s s s 15 years 15 15 years 15 y 15 y 15 ye 5 ye 15 15 years 15 years 5 ye 5 Useful ears ears Life ars ars ars 2.17Intangible assets (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.17.3Movement inintangible assets were asfollows: Consolidated statements financial for the year ended31December 2020 At 31December 2019 CARRYING AMOUNT Balance at 31December 2019 Reallocations Amortisation for the year Balance at 1 January 2019 ACCUMMULATED AMORTISATION Balance at 31December 2019 Additions Balance at 1 January 2019 COST GROUP 2019 Balance at 31December 2020 CARRYING AMOUNT Balance at 31December 2020 Reallocations Amortisation for the year Balance at 1 January 2020 ACCUMMULATED AMORTISATION Balance at 31December 2020 Additions Balance at 1 January 2020 COST GROUP 2020 (213,887) (145,508) (145,509) (105,407) Network Network (70,275) licences (38,294) 662,569 876,456 389,408 487,048 341,539 487,048 447,009 licences (1,808) 40,039 1,896 (284,106) (224,406) (224,406) (161,228) Software Software (58,450) (61,943) 192,357 476,463 149,297 327,166 102,760 327,166 237,775 (1,250) (1,235) 89,391 progress progress Work in Work in 3,722 3,722 3,977 3,977 3,977 3,590 (255) 387 ------1,356,641 (497,993) (128,725) (369,914) (369,915) (100,237) (266,635) 858,648 538,450 818,191 448,276 818,191 133,020 685,171 (3,043) Total Total 646 109 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 110 Scancom PLC (MTN Ghana) 2020 Annual Report 2.17Intangible assets (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.17.3Movement inintangible assets (continued) At 31December 2019 CARRYING AMOUNT Balance at 31December 2019 Reallocations Amortisation for the year Balance at 1 January 2019 ACCUMULATED AMORTISATION Balance at 31December 2019 Additions Balance at 1 January 2019 COST GROUP 2019 Balance at 31December 2020 CARRYING AMOUNT Balance at 31December 2020 Reallocations Amortisation for the yea r Balance at 1 January 20 ACCUMULATED AMORTISATION Balance at 31December 2020 Additions Company Balance at 1 January 2020 COST (213,883) (145,498) (146,759) (106,657) (69,490) (38,294) 340,339 Network 487,098 447,009 Network licences 662,574 876,457 389,359 487,098 licences (1,808) 40,089 1,105 (283,494) (223,270) (222,802) (159,887) Softwar Software (58,974) (61,680) 103,658 326,460 237,119 192,312 475,806 149,346 326,460 (1,250) (1,235) 89,341 e progr progress Work in Work in 3,977 3,977 3,590 (255) 3,722 3,722 3,977 387 ess ------(497,377) (128,464) (368,768) (369,561) (266,544) 1,355,985 (99,974) 447,974 817,535 133,020 684,515 858,648 538,450 817,535 (3,043) (145) Tota Tota l l 2.17Intangible assets (continued) 2.18Consolidation (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2015 to operate services inGhana. mobilefinancial Investment in MobileMoney Limited is GH¢50,000. MobileMoney Limited was incorporated on 5 November 2.18.1Investment insubsidiary therefore includedin theCompany’s statements. financial 2018. Prior to thisperiod, themobilemoney business was reported asadivisionof Scancom PLC and was Consolidation of MobileMoney Limited began when it commenced trading inits own namefrom 1 January consistent with thepoliciesadopted by theGroup. transactions between Group companies are eliminated. Accounting policiesof subsidiariesare ensuring for businesscombinations by theGroup. Intercompany transactions, balances andunrealized gains on deconsolidated from thedate that control ceases. The acquisition methodof accounting isusedto account Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are affect thosereturns through its power to direct theactivitiesof theentity. is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to Subsidiaries are allentitiesover which theGroup hascontrol. The Group controls anentity when theGroup 2.17.4 Cash usedfor purchase of intangible assets Credit purchases Additions for the year Cash usedinthepurchase of intangible assets (317,476) 220,974 538,450 Group 2020 (317,476) Company 220,974 538,450 (25,056) 107,964 133,020 Group 2019 Company (25,056) 107,964 133,020 111 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 112 Scancom PLC (MTN Ghana) 2020 Annual Report 2.19Indefeasible Right of Use (IRU) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.19.1IRUassets for 15 years starting from December 2018. capacity, with ausefullife of fifteen years onaverage starting from 2012andalocal leasecable capacity The Group holdsIndefeasible Right of Use (IRU)assets which are payments for international submarine the salehave beendeferred to beamortisedover 15 years. MTN Dubai anindefeasible right of useof thesaidcapacity for aperiodof 15 years. The proceeds from This relates to asale of a40-gigabyte terrestrial capacity to MTNDubai during the year. This provides 2.19.2 IRUliability IRU includeanamount of GH¢3.6million(2019:GH¢18.7million) which hasnot yet beenpaidfor. Total payment for IRUduring the year amounted to GH¢39.9million(2019:GH¢19.7million). Additions to Current portion Amortisation Non-current portion Exchange difference Additions Balance at 1 January Balance at 1 January Charge/(release) to profit or loss Non-current portion Current portion Balance atBalance December31 (18,043) (3,102) Group andCompany 96,821 13,362 83,459 24,875 96,821 93,091 Group andCompany 2020 6,113 6,755 6,140 6,755 642 2020 615 (18,846) 51 93,091 10,867 82,224 24,658 93,091 87,228 (669) 6,782 6,113 5,601 6,113 2019 2019 512 2.20Contract assets andliabilities (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.20.1Contract liability Movement incontract liability isshown below: fair value approach (relative standalone prices) in2016. of loyalty programmes astheGroup changed its policy from theresidual value approach to therelative in respect of loyalty points isdisclosedinnote 2.6.8. The adoption of IFRS15didnot change thetreatment recognised at thetimeof usage. Revenue isrecognised when thepoints are redeemed. Contract liability services which entitle them to free airtime/data in future. A contract liability for the award points is The Group operates aloyalty programme where subscribers accumulate points for usage of network a reduction incontract liability. proportion to thepattern of rights exercised by thecustomer. This hasledto anincrease inrevenue and Group expects to beentitledto breakage, it recognises theexpected breakage amount asrevenue in accounted for breakage oncustomer rights that will not beexercised when it became remote. When the balances. The balance isaffected by theearly recognition of breakage. Previously, theGroup only Contract liability (previously unearnedrevenue) represents subscriber balances of prepaid activated higher/ lower (2019:GH¢34,000)for theGroup andCompany. with allother variables heldconstant, post tax profit for the year andequity would have beenGH¢33,804 At 31December 2020, if there was anincrease or decrease inthebreakage rate by 1%(100basispoints) Group andCompany Balance at 1 January Sale of prepaid airtime Prepaid revenue recognised Breakage recognised Balance at 31December (4,398,119) 100,120 (5,009) December 4,422,314 80,934 At 31 2020

80,934 (3,718,716) (5,038) December 3,714,850 89,838 At 31 2019 113 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 114 Scancom PLC (MTN Ghana) 2020 Annual Report 2.20Contract assets andliabilities(continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.20.3Capitalised contract cost 2.20.2Contract assets recognition of anew asset, capitalised contract costs. The impact of thischange isadecrease inselling, distributionandmarketing expenses andthe and includedinselling, distributionand marketing expenses inprofit or loss. Capitalised contract costs are amortisedonasystematic basisover theaverage customer life of 3 years activation costs onprepaid contracts. The Group hastherefore capitalised thesecosts ascontract costs. contracts are recoverable. These costs includeagent’s commission onpost-paid contracts andSIM The Group hasdetermined that incremental subscriber acquisition costs for obtaining andrenewing fulfilling customer contracts (specifically providing Wi-Fi services). transferred to acustomer. The Group’s contract assets relate to initialinfrastructural cost incurred in Contract assets are the Group’s right to consideration in exchange for goods or services that it has Contract assets Balance at beginning of the year Additions Amortisation Balance at endof the year Group andCompany Group andCompany December December (17,179) 34,897 21,100 38,818 3,112 At 31 At 31 At 2020 2020

December December (10,192) 11,259 33,830 34,897 3,841 t 31 At 2019 t 31 At 2019 2.21Inventories (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Movement ininventories down to net realisable values. each reporting date, and where items are assessedto beimpaired, thecarrying value of theseis written Inventory isreported net of allowances for impairment. The Group tests for impairment of inventories at applicable variable selling expenses. costs. Net realisable value represents the estimated selling price in the ordinary course of business, less been incurred inbringing theinventories to their present location andcondition, excluding borrowing weighted average method. Cost comprises direct materials and where applicable, overheads that have are measured at thelower of cost andnet realizable value. The cost of inventory isdetermined using the Inventory mainly comprises handsets, devices, SIM cards and other accessories held for sale. Inventories 2019 2020 Movement inprovision for obsolescence Less provision for obsolescence Handsets, SIMcards andaccessories at cost Balance at 1 January (23,303) (22,076)

R during year eductions / (Additions) December Group andCompany (12,225) (1,227) 11,078 54,786 67,011 At 31 2020

31 December Balance at December (12,225) (23,303) (23,303) 15,780 39,083 2019 At 31

115 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 116 Scancom PLC (MTN Ghana) 2020 Annual Report 2.22Financial assets at amortisedcost (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.23Other assets 2.22.1 Trade receivables

effective interest method. Impairment ontrade receivables isdiscussedinNote 2.36.7. the contractual cash flows and therefore measures them subsequently at amortised cost using the when they are recognised at fair value. The Group holdstrade receivables with theobjective to collect amount of consideration that isunconditional unlessthey contain significant financing components, 7 days for post-paid corporate andindividualdebtors. Trade receivables are recognised initially at the course of business. They are generally duefor settlement within 60days for interconnect debtors and Trade receivables are amounts duefrom customers for goods soldor services performed intheordinary maintenance service level agreements Prepayments represents payments madeinadvance for certain network andinformation technology Note 2.37 The Group’s exposure to credit and currency risk relating to trade and other receivables is disclosed in The Group holdscollateral of GH¢82.82 million (2019: GH¢81.1 million) for trade and other receivables. Prepayments Net trade receivables trade receivables Less: allowance for impairment of Trade receivables (11,688) 475,078 486,766 At 31December 2020 Group At 31December 2020 48,189

Group Compan (11,688) 433,557 445,245 Company 48,934 y (18,672) 378,431 397,103 At 31December 2019 At 31December 2019 Group 51,802 Group Company Company (18,672) 358,243 376,915 50,971 2.24Other assets at financial amortisedcost 2.25Mobile money floats (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2019). Mobile money float asat 31December 2020amounted to GH¢6.5billion(GH¢3.4 billionasat December obligation to theelectronic money issuer. to electronic money holders includeallbalances onelectronic wallets of customers andrepresent an position at cost. Mobile money float includesallsubscriber fundsheld with partner banks. Obligations Mobile money float andobligations to electronic money holders are presented inthestatement of financial by thePayment Services Regulation. 2019 when the Payment Systems and Services Act was passed, mobile money operations were governed Mobile money operation is regulated by the Bank of Ghana through its regulations and guidance. Until May backed by anequivalent cash deposit held with partner banks inGhana. The wallet represents a “store” of MoMo, andat any moment, allmonetary value stored onaMoMo wallet is service isalsoperformed through thesubsidiary’s branches. to facilitate customer activitiesincluding depositing cash andloading of electronic cash into wallets. The who provide services to theGroup’s MoMo customers. MoMo agents are recruited by MobileMoney Limited for immediate andlater useinreturn for cash. The service isrendered via MoMo agents andmerchants services involve theissuing of electronic money into aMoMo wallet which isrecorded onmobilephones MobileMoney Limited is an electronic money issuer that provide mobile money (MoMo) services. Mobile money

Intercompany receivables Staff loans (2019: 19). As at 31December 2020, thenumber of partner banks, MobileMoney Limited operated with were 19 Other assets financial at amortisedcosts for theGroup andcompany asfollows: Total Money heldonEMI’s own account Partner banks’ own funds

At 31December 2020 103,091 95,891 Group 7,200 Company 128,177 121,043 7,134 Group 2020 6,559,373 4,161,608 2,397,765 At 31December 2019 98,718 92,457 Group 6,261 Group 2019 1,313,129 Company 3,405,579 2,092,450 101,197 95,021 6,176 117 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 118 Scancom PLC (MTN Ghana) 2020 Annual Report 2.27Stated capital 2.26Cashandcash equivalents (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.28Borrowings 2.27.1 Movement innumber of authorisedandissuedshares Ordinary shares 2.26.1Investment inSecurities / Other reserves new ordinary shares are recognised inequity asadeductionfrom theproceeds. Ordinary shares are as equity. classified Incremental external costs directly attributable to the issue of reserves andare not available for distribution. reserve fundamounts to GH¢50million. Interest earnedoninvestment are alsotransferred into other assets suchas Treasury billsor Government notes or short-dated bondsupuntilsuchatimethat the of MobileMoney Limted’s annualnet profit per internal policy. This isinvested inrisk free, highly liquid Investment inSecuritiesrepresent atransfer from retained earnings at anamount not exceeding 5% instruments, net of bank overdrafts, allof which are available for useby theGroup. highly liquidinstruments with maturity of three monthsor lessandinvestments inmoney market Cash andcash equivalents comprise cash onhand, deposits heldat call, with banks, other short term over theperiodof thefacility to which it relates. facility will bedrawn down, thefee iscapitalised asaprepayment for liquidity services andamortised the effective interest method. To theextent there isnoevidence that it isprobable that someor allof the drawn down. When thedraw down ismade, thetransaction costs are amortisedto profit or lossusing transaction costs andcapitalised to theextent that it isprobable that someor allof thefacility will be using theeffective interest method. Fees paidontheestablishment of loanfacilities are recognised as cost) andtheredemption amount isrecognised inprofit andlossover theperiodof theborrowings subsequently measured at amortised cost. Any difference between theproceeds (net of transaction Borrowings are initially recognised at fair value net of transaction cost incurred. Borrowings are

At 31December Additional shares issued 1 JanuaryAt Issued shares of nopar value Authorised shares Cash andbank balances 671,968 Group December 2019 At 31 100,000,000,000 12,290,474,360 12,290,474,360 2020 and2019 Company 518,499 458,735 - Group December 2020 2020 and2019 At 31 1,097,504 1,097,504 Company Amount 340,546 - 2.28Borrowings (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) At 31December 2020 2.28.1 Summary of borrowing arrangements carrying amount of GH¢7,658million repayable starting on 24/12/2022 and expiring on 24/06/2025. The facility is secured on assets with a Additional Facility: Additional term loan of GH¢450 million bearing interest at 17.1274% per annum GH¢7,658 million. 24/11/2020 and expiring 24/02/2021. The facility is secured on assets with acarrying amount of Facility B: A revolving loanof GH¢165millionbearing interest at 17.11%repayable starting on of GH¢7,332million. on 13/06/2020andexpiring on13/12/2022. The facility issecured onassets with acarrying amount Facility A: A term loanof GH¢345millionbearing interest at 17.1274%per annumrepayable starting TotalFunding Available At endof year Amortisation for the year At start of year Movement incapitalised transaction costs: At theendof year Repayments onborrowings Proceeds from borrowings At start of year Movement inborrowings isasfollows: Local currency Carrying amount of borrowings are denominated asfollows: Non-current portion Current portion Group andCompany 1 December 31 Group and Compan (615,542) 837,095 837,095 557,093 280,002 837,095 839,458 945,000 510,000 (2,363) (4,577) 2020 2,214 2020

y At At

Group and Company 505,423 505,423 225,421 280,002 31 December 2019 Group and (4,577) Company (200,000) 505,423 510,000 265,000 445,000 1,569 (6,146) 2019 At At

119 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 120 Scancom PLC (MTN Ghana) 2020 Annual Report 2.29Provisions 2.28. Borrowings (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Current portionof provisions 2.29.2Decommissioning provision 2.29.1Bonus provision Repayments 2.28.1 site commissioning. that are erected onleasedland. The timing of theprovision isexpected to beat theexpiry of 15 years of original condition at inception of thelease, including removal of items includedin plant andequipment Group provides for theanticipated costs associated with therestoration of leaseholdproperty to its plant and equipment and restoring the site on which the item was located to its original condition.The Decommissioning provision relates to theestimated cost of dismantling andremoving anitem of property, are payable annually after theGroup’s annualresults have beenapproved. overall Group performance with regard to aset of predetermined key performance measures. Bonuses The bonusprovision consists of aperformance-based bonus, which isdetermined by reference to the in thesameclassof obligations may besmall. whole. A provision isrecognised even if thelikelihood of anoutflow with respect to any oneitem included that anoutflow will berequired insettlement isdetermined by considering theclassof obligations asa recognised for future operating losses. Where there are anumber of similar obligations, thelikelihood obligation andareliable estimate can bemadeof theamount of theobligation. Provisions are not event for which it ismore likely than not that an outflow of resources will be required to settlethe A provision isrecognised when there isapresent legal or constructive obligation asaresult of apast million revolving loanfacility drawn down in2020andGH¢120 millionontheterm loan(Facility A). Repayment in2020 were for revolving loanfacility Bof GH¢165milliondrawn down in2019, GH¢330 Group At 31December 2020 Bonus provision Provision for share-based payments Consolidated statements financial for the year ended31December 2020 Other provision Summary of borrowing arrangements (continued) At beginning ofthe yea r 31,894 49,019 13,693 3,432 provisions Additional 13,651 58,381 34,625 10,105 Reversed Utilised/ (16,088) (26,041) - (9,953) t n of end At the year 29,457 38,057 81,359 13,845 2.29 Provisions (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.29.3Other provisions 2.29.2 Decommissioning provision (continued) agreement. obligation. This provision will bereleased at closure final of site transfer under the Asset Purchase estimates andthe probability of whether anoutflow of economic benefits will berequired to settlethe recognized provisions inrespect of a warranty for thesaleandleaseback arrangement basedon warranty provision inrespect of sites soldunder asaleandleaseback arrangement. The Company The non-current portion of other provisions of GH¢3.34 million (2019:GH¢3.77million)represents Other provision Provision for share-based payments Bonus provision At 31December 2020 Company At 31December 2019 Other provision Provision for share-based payments Bonus provision Other provision Provision for share-based payments Bonus provision At 31December 2019 At beginning ofthe year 13,632 31,080 48,115 51,987 18,629 10,000 23,358 51,567 18,403 23,188 3,403 9,976 provisions Additional - - 33,397 19,042 61,588 35,796 26,753 35,205 26,200 9,149 9,043 9,005 Reversed Utilised/ (21,667) (30,946) (38,764) (15,197) (18,217) (38,657) (15,000) (18,308) (18) (9,261) (5,350) (5,349) At endof the year 3,403 13,520 28,455 36,782 78,757 49,019 13,693 31,894 13,632 48,115 31,080 3,432 121 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 122 Scancom PLC (MTN Ghana) 2020 Annual Report 2.29 Provisions (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.29.4 Share basedpayments The summariesof optionsgranted are: the trust to satisfy its objectives. 2020 MTNESOP Trust). MTNGhana provides shares andfunding to the2020MTNESOP Trust to enable anniversaryfifth of thegrant date respectively. The planisfacilitated through astructured entity (the to aservice condition. The shares will vest inthree tranches, i.e. athird will vest onthethird, fourth and During 2020, 17,506,000shares were granted to qualifying employees for noconsideration andsubject Price at which an NSOisoffered to any qualifying participant. the date of exercising, as determined by the annual LAN NSO valuation exercise. The NSOprice is the the price at which a vested LANNSOisexercised and will bethecurrent or ruling value of suchNSOon MTN Group Limited share price ontheday following thedate of exercising. Exercise price- LANoptionis exercise price- GANoptionistheprice at which a vested GANNSOisexercised and will betheclosing of offer. Any un-exercised NSOs remaining at theendof thestated periods will automatically elapse. The offer. Each allocation of NSOgranted after 2014 will remain inforce for aperiodof 5 years from thedate allocation of NSOgranted prior to 2014 will remain inforce for aperiodof 10 years from thedate of allocated effective 1 January 2014may only beexercised 100%after 3 years from allocation. Each up to 40%after 3 years: upto 70%after 4 years andupto 100%after 5 years of granting theNSO. NSO NSO allocated prior to 1 January 2014 may only be exercised by the participants up to 20% after 2 years; schemes are cash settledinthe accounting records of Scancom PLC. in value of a key performance indicator of the business such as EBITDA. All the share-based payment GAN mirrors themovement in value of theMTNGroup share price. The LANisreflective of theincrease participants. The NSOconsists of aGroup Aligned NSO(GAN) andaLocally Aligned NSO(LAN). The is a long-term incentive scheme offered under the MTN Group Performance Share Plan to qualifying The Group operates aPerformance Share Plan (PSP) andaNotional Share Option (NSO). The PSP Share optionsoutstanding at theendof the year have thefollowing expiry dates andprices: Expired andforfeited Expired andforfeited Exercised Granted As at 1 January As at 31December Exercised Granted As at 1 January GAN As at 31December LAN price per option Average (GH¢) 15.56 15.56 35.62 1.13 1.13 0.66 2020 - -

Number (30,920) (14,553) 940,570 462,760 508,730 options 14,909 45,612 45,968 - (’000) of of - price per option Aver (GH 32.15 38.61 0.77 0.77 0.32 age 2019 ¢) - - -

Number of (15,935) (10,590) 508,730 173,690 345,630 options (616) 15,440 46,723 45,612 (’000) - 2.29Provisions (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.29.4Share basedpayments (continued) 1 April 2020 1 April 1 April 2020 1 April 2019 1 April 2018 1 April 2017 1 April 1 April 2019 1 April 1 April 2018 1 April 1 April 2017 1 April 2016 1 April 1 April 2016 1 April 1 April 2014 1 April 2013 1 April 2012 1 April PSP MTN Group 2011 1 April Grant date GAN Grant date LAN Group andCompany 1 April 2015 1 April 1 April 2020 1 April 2019 1 April 2018 1 April 2017 1 April 2016 1 April Expiry dat Expiry date Expiry dat 31-Mar-25 31-Mar-25 31-Mar-24 31-Mar-23 31-Mar-22 31-Mar-24 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-21 31-Mar-19 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 31-Mar-25 31-Mar-24 31-Mar-23 31-Mar-22 31-Mar-21 e e 133.14 120.22 86.88 86.13 (GH¢) 63.08 (GH¢) (GH¢) 28.64 24.45 25.76 22.66 15.56 32.15 44.27 39.14 44.62 pric Price price NSO NSO NSO 31.4 1.13 0.77 0.68 0.55 0.45 e 31 December 2020 31 December 2020 31 December 2020 share optionsat share optionsat share optionsat Number of Number of Number 445,500 1,104,400 131,000 940,570 462,760 162,420 361,500 166,400 45,968 14,908 15,441 13,814 17,740 31,980 10,030 90,780 87,040 77,820 (‘000) (‘000) (‘000) 917 888 of of - - -

31 December 2019 31 December 2019 31 December 2019 share optionsat share optionsat share optionsat Nu Number of Nu 452,100 - 1,141,200 - 367,800 166,400 154,900 508,730 173,690 mber of mber of - 45,612 15,441 13,814 14,452 17,740 32,740 10,030 13,230 90,780 87,700 78,440 (‘000) (‘000) (‘000) 1,905 4,380

123 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 124 Scancom PLC (MTN Ghana) 2020 Annual Report 2.31Dividend 2.30 Trade andother payables 2.29.4Share basedpayments (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) a final taxa final rate of 8%for resident andforeign shareholders. approved by theshareholders. Payment of dividendsissubject to thedeductionof withholding taxes at Dividend distribution to shareholders isrecognised asaliability intheperiod which thedividendsare cash equivalents. deposit, which are payable on demand. Corresponding restricted cash has been recognised in cash and payables are stated at their nominal values. Trade andother payable includesMobile money customer course of businessfrom suppliers. Trade payables are accounted for liabilities. asfinancial Other Trade payables are obligations to pay for goods or services that have beenacquired intheordinary Other payables Intercompany payables Accrued expenses Sundry payables Trade payables 15 Deember 2020 MTN Ghana ESOP 2020 15 December MTN Ghana PSP Group andCompany Balance asat 1 January Dividend paid Dividend declared Balance asat 31 December 2025 14 December Expiry date - 1,278,884 At 31December 2020 99,934 146,341 559,957 427,239 45,413 (GH¢) Group Price NSO 0.62 0.61 at 31December 1,198,205 Company 93,750 share options 146,341 517,650 395,051 Company 2020 45,413 Number of Group and 35,831 35,831 17,506 17,506 (860,333) (‘000) 2020 860,333 At 31December 2019 1,055,852 84,696 167,540 499,073 247,998

- 56,545 Group - at 31December Company 2019 share options Number of Group and 1,022,059 60,286 (614,524) Company 614,524 184,907 474,355 245,966 (‘000) 56,545 2019 - - - -

- - 2.32Cashgenerated from operations

(All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued)

Profit before income tax Decrease incontract assets Decrease intrade andother payables Decrease/(increase) inprovision Increase incapitalised contract costs Increase/(decrease) incontract liabilities assets at amortisedcost (Increase)/decrease inother financial Decrease inother assets Increase intrade receivables Increase ininventories Changes in working capital Cash generated from operations Finance income Finance costs equipment Depreciation of property, plant and Amortisation of intangible assets Amortisation of IRU(Capacity leasing) Amortisation of contract cost IRU deferred income charge/(release) equipment Profit ondisposalof property, plant and receivables (Recovery) / Impairment charge ontrade 2.12.3 2.12.3 2.16.1 2.17.3 2.19.1 2.20.3 2.19.2 2.16.6 2.37.3 Note 2,924,989 (186,078) (282,002) 32,340 (21,100) (96,647) (28,927) (4,373) 19,186 1,972,723 3,206,991 (119,221) 2,868 642 447,226 748,728 128,725 729 (6,871) 18,043 17,179 2020 Group (183) 2,261,514 (230,844) (329,826) 30,642 (21,100) (26,980) (75,314) (28,927) 1,641,652 2,591,340 (401,731) Company 19,186 447,112 747,033 128,464 2,782 (6,871) 18,043 17,179 729 (183) 642 2,554,868 (111,402) (2,968) 1,443,374 2,666,270 (42,733) (33,830) (51,583) (15,956) (76,773) 462,288 701,307 100,237 (8,904) (5,475) 48,535 18,846 10,192 1,512 Group 7,563 (669) (95) 2019 1,455,570 2,217,865 2,039,667 Company (534,434) (198,915) (178,198) (3,452) (33,830) (35,951) 460,940 699,978 (8,904) (5,475) 99,974 18,846 10,192 49,366 57,451 7,563 1,512 (669) (95) 125 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 126 Scancom PLC (MTN Ghana) 2020 Annual Report 2.35Related party transactions 2.34Capital commitments 2.33Contingent assets andliabilities (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Group andaparty related to theGroup, regardless of whether aprice ischarged. Related party transactions constitute thetransfer of resources, services or obligations between the follows As at 31December, capital commitments for theacquisition of property, plant andequipment were as There were nocontingent assets determined asat 31December 2020(2019:Nil). indicate that aninflow of resources is virtually certain. The Group doesnot recognise contingent assets inthe statement of positionuntilfuture financial events control of the Group. Contingent assets are disclosed where an inflow of economic benefits is probable. onlyconfirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Contingent assets represent possibleassets that arisefrom past events and whose existence will be issue. assessment. Discussions were ongoing by statements thetimefinancial were being for finalised There isanongoing tax audit by theGhana Revenue Authority (GRA) spanning 2014to 2018 years of significant lossto theGroup. There were nocontingent liabilitiesdetermined asat 31December 2020. directors, after taking appropriate legal advice, theoutcome of theselegal cases will not give riseto a The Group hadcertain legal cases pending before thecourts at 31December 2020. In theopinionof the estimate can bemade, at which timeaprovision israised. future events indicate that it isprobable that anoutflow of resources will take place andareliable be made. The Group does not recognise contingent liabilitiesinthestatement of positionuntil financial but are not recognised because anoutflow of resources isnot probable, or areliable estimate cannot control of theGroup. Contingent liabilitiesalsorepresent present obligations that arisefrom past events onlybe confirmed by theoccurrence or non-occurrence of uncertain future events not wholly within the Contingent liabilities represent possible obligations that arise from past events and whose existence will Commitment to purchase spare parts under managed service contract Commitments to outsourced network services operations orders for 2020) 100% commitment to purchase SIMandrecharge cards (open purchase Commercial commitments asat 31December were thefollowing: Total capital expenditure approved for the year Property, plant andequipment not contracted Property, plant andequipment contracted 991,239 991,239 Group andCompany Group andCompany 38,860 38,860 2020 2020 - - - 1,017,920 73,736 944,184 79,369 79,639 2019 2019 - - 2.35Related party transactions (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.35.1 Transactions with related partiesduring the year are asfollows: The Group isrelated to other entitiesintheMTNGroup by virtue of common shareholding. transactions with related partiesduring the year. families andentitiescontrolled or jointly controlled by theseindividuals. The Group entered into various asdirectorsbeen defined andtheGroup’s executive committee andincludesclosemembers of their For thepurposesof defining related party transactions with key management, key management has Other Intercompany purchases GlobalConnect Solutions MobileMoney Limited MTN Dubai Limited (Management fees andothers) MTN Cote d’Ivoire MTN Nigeria Communications Limited MTN South Africa MTN Mobile Telephone Network Cameroon Limited Services to: MTN Dubai Limited MTN Cote d’Ivoire MTN Nigeria Communications Limited South Africa MTN MTN Group Management Services (Pty) Limited MobileMoney Limited GlobalConnect Solutions Other intercompany sales MTN Group Management Services (Pty) Limited Purchases from: Dividend paid to Investcom Consortium Holdings SA 328,675 106,466 220,491 493,552 708,261 202,026 1,585 1,311 6 127 - - 10,372 Group Group 347 653 2020 2020 - - - - Company 6 Company 493,552 741,017 202,026 328,675 106,466 220,491 1,311 10,372 32,756 1,585 347 653 127 Group and - - - - - Company 735,498 144,776 116,677 1,939 309,572 225,043 550 12,097 10,923 75,018 2020 Group Group 2,711 1,052 7,483 363 426 66 2019 2019 - - - - Group and Company Company Company 525,356 320,503 225,043 169,636 116,677 550 1,939 75,018 10,931 12,097 10,923 24,860 1,052 7,483 2,711 2019 426 363 66 - - 127 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 128 Scancom PLC (MTN Ghana) 2020 Annual Report 2.35 Related party transactions (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.35.2 Year endbalances arising from theabove transactions are asfollows: Key management compensation 2.35.1 Transactions with related partiesduring the year (continued): Other intercompany receivable MobileMoney Limited UUNET Kenya (Pty) Limited MTN GlobalConnect SolutionsLimited MTN Nigeria Communications Limited MTN South Africa MTN Post-employment benefits Short-term employee benefits Share-based payments MTN Group Management Services (Pty) Limited Receivables Other intercompany payable GlobalConnect Solutions MobileMoney Limited MTN Cote D’Ivoire MTN Dubai Limited MTN Nigeria Communications Limited MTN South Africa MTN Payables MTN Group Management Services (Pty) Limited (146,341) (112,326) (369) (25,457) (7,858) 95,891 46,486 36,674 3,751 Group Group Group 1,868 2,143 4,969 (331) 7,467 8,420 286 667 2020 - - - - Company Company (146,341) (112,326) Company (369) 121,043 (25,457) 25,152 46,486 36,674 (7,858) 3,751 1,868 2,143 4,969 - 6,276 6,776 (331) 2020 500 - - - (167,540) (104,755) 754 (40,208) (11,208) (3,728) (1,736) (6,659) Group 10,245 11,032 212 92,457 43,529 12,170 22,618 7,754 Group Group 1,770 4,616 575 - 2019 2019 - (104,755) (11,208) Company (184,907 ) Company Company 754 (40,208) (17,367) 7,754 (3,728) (1,736) (6,659) 95,021 43,529 12,170 22,618 - 9,499 2,564 1,770 4,616 9067 432 2.36Financial instruments 2.35Related party transactions (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.36.2 Financial instrument classification 2.36.1Offsetting instruments financial 2.35.2 Year endbalances arising from theabove transactions are asfollows (continued) Management determines of theclassification instruments financial at initialrecognition. The is dependent classification on the purpose for instrumentswhich the financial were acquired. The Group its classifies instruments financial into thefollowing categories: No assets financial andliabilities were subjected to offsetting asat 31December 2020. the liability simultaneously. The net amount isreported inthestatement of position. financial the recognised amounts andthere isanintention to settleonanet basis, or realise theasset and settle Offsetting of assets financial and liabilities is applied when there isa legally enforceable right to offset months; if not, they are asnon-current. classified Financial assets and liabilities are as current classified if expected to be realised or settled within 12 (trade date accounting). assets are recognised (derecognised) onthedate theGroup commits to purchase (sell)theinstruments excluding transaction costs. There are assets nofinancial at fair value through profit or loss. Financial for asat thoseclassified fair value through profit or loss which are initially measured at fair value, All assets financial andliabilitiesare initially measured at fair value, including transaction costs except Group becomes aparty to thecontractual provisions of theinstruments. Financial assets andliabilitiesare recognised intheGroup’s statement of position financial when the the MTNGroup andare dueonemonthafter thedate of purchase. and transmission service transactions rendered onScancom PLC’s behalf by other operations within Trade payables to related partiesarisemainly from professional andmanagement fees, interconnect the date of rendering of service. No provisions are heldagainst receivables from related parties. transactions rendered onbehalf of other operations within MTNGroup. These are dueonemonthafter The receivables from related partiesarisemainly from professional andInterconnect services Financial liabilitiesat amortisedcost. Financial assets at amortisedcost Financial assets at fair value through other comprehensive income 129 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 130 Scancom PLC (MTN Ghana) 2020 Annual Report 2.36 Financial instruments (continued) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.36.8 Impairment 2.36.7De-recognition 2.36.6 Financial liabilities 2.36.5Subsequent measurement 2.36.4 2.36.3 Classification of2.36.3 Classification assets at financial amortisedcost cancelled or expire. Financial liabilities are derecognised when the obligations in the contracts specified are discharged, have been transferred and the Group has transferred substantially all risks and rewards of ownership. Financial assets are derecognised when therights to receive cash flows from theassets have expired or cost using theeffective interest method. current liabilities(excluding provisions). All liabilities are financial subsequently measured at amortised Financial liabilitiescomprise trade andother payables, bank overdrafts, borrowings andother non- measures themsubsequently at amortisedcost using theeffective interest method. The Group assets holdsfinancial with theobjective to collect thecontractual cash flows andtherefore other gains/(losses) within profit or loss. On disposalof thesedebt investments, any related balance within theFVOCI reserve isreclassified to model isachieved bothby collecting contractual cashflow andselling assets. financial the contractual cashflow are solely principalandinterest andtheobjective of theCompany’s business Financial assets at fair value through other comprehensive income comprise debt securities where undue effort or cost) affecting theability of thecustomers to settlethereceivables. forward-looking information onmacroeconomic factors (where data isavailable andisobtained without credit lossesexperienced within thisperiod. The historical lossrates are adjusted to reflect current and months before 31December 2020 or 1 January 2021respectively andthecorresponding historical The expected lossrates are basedonthepayment profiles of trade receivables over aperiodof 24 receivables are grouped basedonshared credit risk characteristics andthedays past due. lifetime expected lossallowance for alltrade receivables. To measure theexpected credit losses, trade The Group approach appliestheIFRS9simplified to measuring expected credit losses which usesa The Group its classifies assets financial asat amortisedcost only if bothof thefollowing criteria are met: Impairment of trade receivables Classification ofClassification assets at financial fair value through other comprehensive income the contractual terms give riseto cash flows that are solely payments of principalandinterest. flows, and the asset isheld within abusinessmodel whose objective isto collect thecontractual cash 2.37Financial risk management andfair values 2.37.2Financial instruments by category 2.37.1Risk profile

risk, credit risk andinvesting excess liquidity. for overall risk management, as well as for areas specific suchasforeign exchange risk, interest rate Scancom PLC. The Boards identify, evaluate andmanage risks financial andprovide written principles management iscarried out under policiesapproved by theBoard of directors of theMTNGroup and and seeks to minimisepotential adverse effects performance onthefinancial of theGroup. Risk The Group’s overall risk management programme focuses ontheunpredictability of markets financial measuring andmanaging risk, andtheGroup’s management of capital. the Group’s exposure to eachof theabove risks, theGroup’s objectives, policiesandprocesses for risk andmarket risk (foreign exchange andinterest rate risk). This note presents information about The Group hasexposure to thefollowing risks from its useof instruments: financial credit risk, liquidity At 31December 2020 Group Cash andcash equivalents assets financial Trade receivables andother Trade andother payables Borrowings Fin ance leaseobligation Financial assets at amortised cost 1,250,137 - - 671,968 578,169 - - F inancial liabilitiesat amortised cost 1,178,950 1,631,413 3,647,458 - - 837,095 - 1,250,137 1,178,950 1,631,413 3,647,458 578,169 671,968 837,095 Total 131 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 132 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.2 Financial instruments by category (continued)

Finance leaseobligation Borrowings Trade andother payables

Cash andcash equivalents assets Trade receivables andother financial At 31December 2019 Group Finance leaseobligation Borrowings Trade andother payables Cash andcash equivalents assets Trade receivables andother financial At 31December 2020 Company Financial assets at Financial assets at 1,080,233 amortised cost amortised cost 518,499 - - 561,734 935,884 458,735 477,149 ------Financial liabilities Financial liabilities at amortisedcost at amortisedcost 3,572,963 1,631,413 1,104,455 3,185,314 1,708,735 - 837,095 505,423 971,156 - - - - - 518,499 3,572,963 1,631,413 1,104,455 1,080,233 3,185,314 1,708,735 458,735 837,095 561,734 935,884 505,423 971,156 477,149 Total Total (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.3Credit risk 2.37.2 Financial instruments by category (continued) without taking into account any collateral guarantees, andfinancial to beasfollows: assetsfinancial that are exposed to credit risk. The Group considers its maximumexposure per class, procedures. The Group’s maximumexposure to credit risk isrepresented by thecarrying amounts of the contractual obligations, ismanaged through theapplication of credit approvals, limits andmonitoring Credit risk, or therisk of lossto financial theGroup dueto customers or counterparties not meeting their Company At 31December 2019 assets Trade receivables andother financial Cash andcash equivalents Finance leaseobligation Borrowings Trade andother payables

Mobile money float Contract assets Trade receivables andother assets Cash at Bank Financial assets at 6,559,373 7,812,271 671,617 amortised cost 578,169 December 2020 Group 3,112 - 459,440 799,986 340,546 - At 31 518,148 1,082,994 Company - - 561,734 Financial liabilities 3,112 at amortisedcost - 1,708,735 3,175,831 3,405,579 4,345,303 458,735 961,673 505,423 477,149 December 2019 Group 3,840 - - At 31 - 459,440 Company 1,708,735 3,175,831 505,423 803,826 340,546 459,440 799,986 340,546 961,673 3,840 Total - 133 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 134 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.3Credit risk (continued) follows for trade receivables. On thebasisof thepolicy inNote 2.35.7, thelossallowance asat 31December 2020 was determined as At 31December 2020 Group Fully performing trade receivables Past duetrade receivables Other receivables Contract receivables Interconnect receivables Other receivables 6 to 9months 0 to 3months 9 to 12months 3 to 6months 0 to 3months Contract receivables 9 to 12months 3 to 6months 0 to 3months Interconnect receivables 9 to 12months 6 to 9months 3 to 6months Total G ross carrying 295,689 191,078 486,767 263,091 160,526 amount 25,719 23,996 14,703 21,336 24,891 99,596 11,313 6,879 6,556 6,026 7,651 5,032 197 333

- Loss rate 43.17% 16.48% 0.10% 0.10% 0.10% 3.55% 2.10% 1.73% 2.77% 2.11% 1.03% 0.65% 1.71%

- expected Lifetime 11,392 11,688 10,762 losses 3,516 6,347 263 256 643 296 104 212 106 118 512 194 26 7 7 7

of impairment amount (net provision) Carrying 295,393 179,686 475,079 262,828 149,764 25,693 23,484 11,119 17,820 24,635 98,953 6,872 6,438 5,922 7,439 4,926 8,356 190 326

- (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.3Credit risk (continued) expected lossrates asfollows: The loss allowances for trade and other receivables are based on assumptions about risk of default and been GH¢202,000lower/ higher for theGroup andCompany. basis points) with allother variables heldconstant, post tax profit for the year andequity would have At 31December 2019, if there was anincrease or decrease intheexpected credit lossrate by 1%(100 Total 9 to 12months 0 to 3months 6 to 9months 3 to 6months 0 to 3months Other receivables 9 to 12months 6 to 9months 3 to 6months Contract receivables 9 to 12months 3 to 6months 0 to 3months Interconnect receivables Past duetrade receivables Other receivables Contract receivables Interconnect receivables Fully performing trade receivables At 31December 2020 Company Gross carrying 295,689 263,091 445,245 119,004 149,556 amount 19,418 19,661 22,798 57,127 11,313 25,719 23,996 6,026 7,651 5,032 6,879 6,556 197 333 -

Loss rate 34.20% 17.49% 1.73% 0.99% 0.80% 3.55% 1.80% 2.77% 2.11% 1.71% 0.10% 0.10% 0.10% expected Lifetime 11,688 10,762 11,392 losses 6,640 3,439 104 226 457 212 106 194 263 118 512 296 26 7 7 7 - of impairment amount (net provision) Carrying 262,828 433,557 108,242 138,164 295,393 12,778 16,222 22,572 56,670 11,119 25,693 23,484 5,922 7,439 4,926 6,872 6,438 190 326 - 135 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 136 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.3Credit risk (continued) Past duetrade receivables Other receivables Contract receivables Fully performing trade receivables At 31December 2019 Group Interconnect receivables Interconnect receivables 9 to 12months 3 to 6months 2 to 3months Contract receivables Total 9 to 12months 6 to 9months 3 to 6months 0 to 3months Other receivables 9 to 12months 6 to 9months 3 to 6months 0 to 3months Gross carrying 186,575 210,528 397,103 153,211 163,968 101,959 amount 22,093 11,271 38,929 21,257 37,854 7,631 4,583 8,815 9,593 836 839 839 - -

Loss rat 44.34% 0.10% 0.10% 0.10% 4.44% 1.55% 0.49% 4.59% 1.46% 3.91% 2.93% 2.60% 0.44% e

expected Lifetime 18,461 18,672 17,197 16,409 losses 164 211 957 944 307 210 129 249 449 39 13 33 25 8 - - of impairment) amount (net Carrying 168,114 210,317 378,431 136,014 163,804 101,510 20,313 21,136 10,964 38,890 21,445 7,623 4,373 8,686 9,344 823 806 814 - - (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.3Credit risk (continued) 0 to 3months Other receivables 9 to 12months 3 to 6months 0 to 3months 3 to 6months Total 9 to 12months 6 to 9months 9 to 12months 3 to 6months 2 to 3months Contract receivables Interconnect receivables Past duetrade receivables Other receivables Contract receivables Interconnect receivables At 31December 2019 Company Fully performing trade receivables Gross carrying 22,093 166,387 210,528 163,968 133,023 376,915 amount 38,929 11,271 81,771 37,854 21,257 7,631 9,593 4,583 8,815 839 839 836 -

Loss rate 43.59% 2.60% 0.44% 3.91% 2.93% 4.59% 1.46% 0.49% 4.44% 1.55% 0.10% 0.10% 0.10% expected Lifetime 17,197 18,672 18,461 16,500 losses 164 211 249 360 307 210 127 957 944 39 33 25 13 8 - of impairment amount (net provision) Carrying 210,317 163,804 115,826 358,243 147,926 38,890 10,964 21,136 81,411 21,355 20,313 7,623 9,344 4,373 8,687 806 814 823 - 137 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 138 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Movement inimpairment provision 2.37.3Credit Risk (Continued) 2.37.5Determination of fair values 2.37.4Cashandcash equivalents receivables Provision for impairment of trade 2020 receivables Provision for impairment of trade 2019 hierarchy (that isinputs for theassets andliabilitiesthat are not basedonobservable market data. term nature. The Group considers that therecognised assets andliabilitiesare at Level 3inthefair value payable on those borrowings is either close to current market rates or the borrowings are of a short- The fair values of borrowings are not materially different to their carrying amounts, since theinterest other payables andmobilemoney floats approximate their fair values dueto their short-term nature. The Group considers that thecarrying values of cash andcash equivalents, trade receivables, trade and its obligations. department. Given thesecredit ratings, management doesnot expect any counterparty to fail to meet credit exposure iscontrolled by counterparty limits that are reviewed andapproved by thecredit risk The Group actively seeks to limit theamount of credit exposure to any institutionand onefinancial aggregate values of cash andcash equivalents are spread amongst approved institutions. financial The Group’s exposure andthecredit ratings of its counterparties are continuously monitored, andthe At 1 JanuaryAt (18,672) (11,109) Additions (7,563) 113 Write-off 6,871 - At 31December (11,688) (18,672) (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.6Liquidity risk natural disasters. excludes thepotential impact of extreme circumstances that cannot reasonably bepredicted, suchas to facilities to meet expected operational expenses, including theservicing of obligations; financial this risking damage to theGroup’s reputation. The Group ensures it hassufficient cash ondemandor access liabilities when dueunder bothnormalandstressed conditions, without incurring unacceptable lossesor Group’s approach to managing liquidity risk isto ensure that sufficient liquidity isavailable to meet its Liquidity risk istherisk that theGroup will beunableto meet its obligations asthey become due. The Trade payables Group Accruals and sundry payables Lease liabilities Amount dueto related parties Borrowings Trade payables Company Accruals and sundry payables Lease liabilities Amount dueto related parties Borrowings At 31December 2020 1,631,413 3,647,458 1,631,413 3,572,963 Carrying 427,239 605,370 146,341 837,095 395,051 563,063 146,341 837,095 amount on demand within one month or Payable 427,239 225,888 146,341 799,468 395,051 183,364 146,341 724,756 - - - - More than exceeding 3 months 1 month 161,609 156,093 385,641 161,609 156,093 385,641 but not 67,939 67,939 - - - - More than exceeding 3 months one year 217,873 312,187 227,214 756,474 218,090 312,187 227,214 757,491 but not - - - -

More than exceeding 2,899,867 3,626,887 2,899,867 3,626,887 five years one year 727,020 727,020 but not ------139 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 140 Scancom PLC (MTN Ghana) 2020 Annual Report (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.6 Liquidity risk (continued) including principalandinterest payments. The amounts includedinthematurity table for borrowings are thecontractual undiscounted cash flows, Borrowings Lease liabilities Accruals andsundry payables Trade payables Group At 31December 2019 Amount dueto related parties Accruals and sundry payables Trade payables Company Lease liabilities Borrowings Amount dueto related parties 3,185,314 1,708,735 1,708,735 3,175,939 Carrying 530,900 245,966 505,423 505,423 555,618 247,998 167,540 184,907 amount

101,006 101,006 within one - 118,405 Payable 184,907 demand 634,949 167,540 247,998 245,966 625,566 93,687 month or on - 173,201 109,790 exceeding 3 109,790 More than 173,201 1 month 158,061 441,052 158,061 441,052 months but not - - - - 180,123 212,504 More than exceeding 3 months one year 180,123 197,577 590,204 197,577 212,504 590,204 but not

- - - - More than exceeding 2,335,017 2,707,567 2,335,017 2,707,567 five years one year 290,975 290,975 but not 81,575 81,575

- - - -

(All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.37.7.2Foreign exchange risk 2.37.7.1Interest rate risk 2.37.7Market risk denominated trade payables, trade receivables andcash andcash equivalents. Company respectively (2019: GH¢ 3,684,000 and GH¢ 3,179,000), mainly asa result of US Dollar, Euro year andequity would have beenhigher/lower at GH¢ 2,526,000andGH¢604,000for theGroup and 10%) against the US Dollar and Euro with all other variables held constant, post-tax profit for the At 31December 2020, if theGhana cedi had weakened/strengthened by 1000basispoint (10%)(2019: have beenGH¢14,331,000(2019:10,245,000). by 10%(2019:10%) with allother variables heldconstant, post- tax profit for the year andequity would At 31December 2020, ifthe interest rate forlocal currency denominatedhad increased loans /decreased constant. rates, from therate applicable at 31December 2019, for Borrowings with allother variables remaining profit or lossof aninstantaneous increase or decrease of 10%(1000basispoints) inmarket interest 17.12%. The Group hasusedasensitivity analysis technique that measures theestimated change to At 31December 2020, theinterest rate profile of theGroup’s interest bearing instruments financial was: from there-pricing of theGroup’s borrowings. Debt ismanaged onanoptimalfloating interest rate basis. and fixed rates inline with thosecurrently available inthemarket. The Group’s interest rate risk arises Borrowings. The interest rates applicable to instruments thesefinancial are acombination of floating Financial assets andliabilitiesthat are sensitive to interest rate risk are cash andcash equivalents and Interest rate risk istherisk borneby aninterest-bearing asset or liability, dueto variability of interest rates. or themanner in which theserisks are managed andmeasured ascompared to previous years. and borrowings. In thecurrent year, there hasbeennochange to theGroup’s exposure to market risks The Group manages its interest rate risk by having abalanced portfolio of fixed and variable rate loans exposures within acceptable parameters, while optimizing thereturn. currency exchange rates. The objective of market risk management isto manage andcontrol market risk The Group’s activitiesexpose it primarily to risks thefinancial of changes ininterest rates andforeign holding of instruments. financial Market risk is the risk that changes in market prices will affect the Group’s income or the value of it’s 141 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 142 Scancom PLC (MTN Ghana) 2020 Annual Report

(All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) Loan covenant 2.37.9Capital risk management 2.37.8Price Risk covenants: Under theterms of theborrowing facilities, theGroup isrequired to comply with thefollowing financial The Group monitors capital onthebasisof gearing ratio, calculated asnet debt dividedby total equity. attributable to owners of theCompany andGroup. and short-term borrowings from local andinternational institutions. financial Total equity istheequity capital to shareholders or issuenew shares. The Group’s policy isto borrow using amixture of long term or adjust thecapital structure, theGroup may adjust thedividendpayment to shareholders, return rating andhealthy capital ratios to support its businessandmaximiseshareholder value. To maintain The primary objective of the Group’s capital management isto ensure that it maintains astrong credit Capital includesborrowings, stated capital andequity attributable to theequity holders of theGroup. The Group isnot directly exposed to commodity price risk or material equity securitiesprice risk. Total equity Net debt Less: Cashandcash equivalents Total borrowing Gearing ratio Gearing ratio at thereporting date was: The ratio of debt service coverage must begreater than1.5 The ratio of interest coverage must begreater than4.5 The ratio of net debt to equity must be within 70/30 The ratio of net debt to EBITDA must not belessthan2.5 3,339,187 (671,968) 165,127 837,095 Group 4.95% 2020 3,073,695 (518,499) Company 318,596 837,095 10.37% 2,803,826 (458,735) 1.67% 505,423 46,688 Group 2019 2,680,875 Company (340,546) 505,423 164,877 6.15% 2.38 Retained earnings (All amounts are inthousandsof Ghana Cedisunlessotherwisestated) Notes (continued) 2.39 Subsequent events statement of positionandthedate financial statements thefinancial are approved by thedirectors. The directors are not aware of any other material events that have occurred between thedate of the when they fall due. impacts theCompany’s ability to settleits obligations financial set out statements inthefinancial asand significantly affected theCompany’s ability to continue asagoing concern. No conditions have arisenthat At thisstage, theimpact of thepandemicandactionstaken by government to contain it hasnot measures for our people(including socialdistancing and working from home). taken anumber of measures to monitor andmitigate theeffects of COVID-19, suchassafety and health Measures taken by governments to contain the virus isexpected to impact economic activity. We have The World Health Organisation characterized thespread of Covid-19 aglobalpandemicon11March 2020. Transfer to reserves Net profit for the year Dividends declared Balance at 1 January Balance at 31 December 31 at Balance 1,394,895 1,706,322 2,228,282 (860,333) (12,602) Group 2020 1,253,153 1,583,371 1,976,191 (860,333) Company - - 1,007,958 1,312,888 1,706,322 (614,524) Group 2019 - 1,160,169 1,037,726 1,583,371 Company (614,524) 143 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports 144 Scancom PLC (MTN Ghana) 2020 Annual Report Five year summary financial Return onshareholders’ fund(%) Current ratio Net asset per share (GH¢) Dividend per share (GH¢) EPS (GH¢) Results Statistics Retained earnings Other reserves Stated capital Total liabilitiesnet of e-money holders Obligations to electronic money Total assets Cash andcash equivalents Mobile money float Other current assets Other non-current assets Intangible assets Right of assets Property, plant andequipment Statement of position financial Profit for the year Taxes andlevies Profit before income tax Net costs finance Operating profit Depreciation andamortisation EBITDA Revenue Results (4,319,257) (6,559,373) 14,217,817 671,968 3,371 ,844 3,339,187 2,228,282 1,097,504 3,339,187 6,559,373 1,210,510 1,420,085 1,394,895 1,972,723 2,300,728 3,178,181 6,033,428 (577,828) (328,005) (877,453) GH¢’000 125,389 858,648 13,401 0.96:1 41.8% 0.272 0.113 2020 2020 0.08 (3,749,245) (3,405,579) (385,515) 458,735 (435,416) (801,544) 2,803,826 1,706,322 1,097,504 2,803,826 9,958,650 3,405,579 1,574,776 3,018,008 1,007,958 1,443,374 1,828,889 2,630,433 5,181,836 448,276 GH¢’000 932,314 120,962 0.96:1 0.228 0.082 2019 2019 0.06 36% - (1,806,488) 4,216,880 1,312,888 2,410,392 754,676 (324,518) (463,567) 2,410,392 1,097,504 (44,868) 2,549,095 1,079,194 1,124,062 1,587,629 4,218,847 418,536 406,525 GH¢’000 749,809 92,915 31.3% 0.214 0.067 2018 2018 0.05 1.1 - - - - (1,576,008) 3,448,389 196,730 (262,162) (359,928) 1,872,381 1,871,018 1,872,381 (21,956) 2,267,833 1,002,630 1,362,558 3,423,551 718,512 581,626 GH¢’000 340,305 1,363 980,674 61,895 0.0437 0.78:1 38.4% 0.174 0.067 2017 2017 - - - - (1,132,333) 1,623,869 2,756,202 151,671 1,623,869 1,622,506 1,882,574 1,133,022 2,773,219 (277,951) (258,371) (54,188) 350,067 333,717 542,512 GH¢’000 1,363 820,463 874,651 38,173 0.0099 0.55:1 33.4% 0.151 0.051 2016 2016 - - - - b everywhere yougo We’re goodtogether M mtn.com.gh righter today. a ke thewo

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145 Scancom PLC (MTN Ghana) 2020 Annual Report

Financial Statements and Key reports

Shareholder Information Shareholder information Stock exchange performance

Scancom PLC (MTNGH) 2020 2019 Closing Price (c) GH¢ 0.64 p GH¢ 0.70 p Highest Price (c) GH¢ 0.70 p GH¢ 0.80 p Lowest Price (c) GH¢ 0.55 p GH¢ 0.67 p Total Number of shares traded 589,645,729 202,885,800 Number of shares in issue 12,290,474,360 12,290,474,360 Number of shares traded as a percentage of shares in issue (%) 4.80 1.65 One Year VWAP (c) GH¢ 0.62 p GH¢ 0.71 p Market Cap (as at 31/12/2020) (million) GH¢ 7,865.90 GH¢ 8,603.33 Dividend yield (%) 12.5 8.57 Earnings yield (%) 17.67 11.71 P/E (X) 5.66 8.54 Ghana Stock Exchange Composite Index (close) 1,941.59 2,257.15 Ghana Stock Exchange Financial Index (close) 1,782.76 2,019.65

Source: Ghana Stock Exchange Directors shareholding The Directors named below held the following number of shares in Scancom PLC as at 31 December 2020:

Ordinary Shares 2020 2019 Ishmael Yamson* 667,300 667,300 Ebenezer Twum Asante 8,000,100 8,000,100 Selorm Andreas Adadevoh 133,500 133,500 Modupe Agbolade Kadri 865,000 865,000 Kwasi Abeasi 230,000 230,000

* Held in joint ownership in the name of Ishmael and Lucy Yamson (134,000) and a nominee holding account Octane SD ILYO7 2018 (533,300). Number of shares in issue Scancom PLC had only ordinary shareholders as at 31 December 2020 and distributed as follows:

Range No. of shareholders No. of shares % of holding 1 - 1,000 115,399 15,210,555 0.12 1001 - 5,000 8,647 19,106,639 0.16 5001 - 10,000 1,893 14,942,644 0.12 10,001 - 999,999,999 2,000 1,744,834,522 14.20 1,000,000,000 - 11,000,000,00 1 10,496,380,000 85.40 Total 127,940 12,290,474,360 100.00 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 148 2. 1. 5. 4. 3. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. as at 31December 2020 Details of 20largest ordinary shareholders Shareholder information SOCIAL SECURITY AND NATIONAL INSURANCE TRUST INVESTCOM CONSORTIUM INVESTORS FUNDL.P SCGN/SSB & TRUST AS CUSTODIAN, REDECCAN VALUE ZENT INTERNATIONAL LIMITED SCGN/JPMC FIRSTRAND BANK LTD GTI:73863 SCGN / NORTHERN TRUST CO. AVFC 6314B 056900600903 SCGN/SSB+T FOR VEDA INVESTORS FUNDL.P. NJ6G, MASTER FUND,L.P-RCKM SCGN/SSB& TRUST AS CUST FOR KIMBERLITEFRONTIER, AFRICA - NJ3D SCGN/SSB & T AS CUSTODIAN RE A/D, INVESTORS FUNDL.P. FD AFR FRTR FUND A SUBFUNDOF THE CORO UNIV. FD SCGN/JPM IRERECORONATION FDMGRIREONBEHALF, OF THE STD NOMS/BNYMREFRONTURA GLOBAL FRONTIER FUNDLLC, 056900601046 SCGN/STATE STREET BK&TC FOR DVG 1740FUNDL.P-NJ4Q, STD NOMS/BNYMSANV REBNYMSANVFFT REODDOKIL AFR, INVESTMENTS SICAV-FIS STD NOMS/ BNYMSANV REBNYMSANVLUX REEASTSPRING RE RUSSELL INVESTMENT CO. PLC FUND-NAS5 SCGN/STATE STREET LONDON C/OSSB AND TRUST CO. BOSTON 056900601044 SCGN/SSBT AS CUST FOR H/DINVESTORS FUNDL.P-NJ45, GTI:AEX26 SCGN/JPMC REDUET AFRICA OPPORTUNITIES MASTER FUND, IC LONDON INVESTEC AFRICA FUND SCGN/SSB LONDON INVESTEC AFRICA FUND, SCGN/SSB FOUNDATION-00FG SCGN/SSB&TRUST AS CUST FOR CONRAD NHILTON, TOTAL SCGN/PICTET&CIE (EUROPE)S.A LUX REBLAKENEY L.P 11,739,514,488 10,496,380,000 198,745,480 138,754,352 195,228,283 Shares held 96,949,275 87,681,522 79,822,410 67,142,788 57,168,920 55,111,504 44,700,000 33,129,331 31,123,722 29,000,000 27,874,100 25,810,059 20,000,000 18,753,010 18,215,302 17,924,430 Number of Percentage (%) Holding 95.52 85.40 1.62 1.13 1.59 0.79 0.71 0.65 0.55 0.47 0.45 0.36 0.27 0.25 0.24 0.23 0.21 0.16 0.15 0.15 0.15 149 Scancom PLC (MTN Ghana) 2020 Annual Report

Shareholder Information Shareholder information Shareholders’ diary

Date Final dividend recommendation 23 February 2021 Summary annual financial results published 24 February 2021 Annual financial statements posted early April 2021 First quarter results published 27 April 2021 Annual general meeting 25 May 2021 Half year-end 30 June 2021 Interim dividend declaration 28 July 2021 Interim financial statements published 29 July 2021 Third quarter results published 28 October 2021 Financial year-end 31 December 2021 Final dividend declaration for 2021 end February 2022 2021 summary annual financial results end February 2022

Please note that these dates are subject to change

Forward looking information Opinions and forward looking statements expressed in this report 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 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, advisers or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this report 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. 2020 Annual Report Annual PLC 2020 (MTN Ghana) Scancom Scancom 150 Accra, Ghana 4th Floor CediHouse Central SecuritiesDepository (Gh) Limited Depository andregistrars WestRidge, Accra Independence Avenue MTN House Registered office WestRidge, Accra Independence Avenue MTN House Pala Asiedu-Ofori Company secretary 3 2 1 Rosemond Ebe-Arthur Kofi Nkisah Dadzie BotchwayNana Ama Felix Addo Fatima Daniels Sugentharen Perumal Ralph Mupita Selorm Adadevoh Ebenezer Asante Ishmael Yamson Board of Directors (“MTN Ghana” or “MTNGH”) Share code: MTNGH ISIN: HEMTN051541 Registration number PL000322016 (Incorporated inGhana) Scancom PLC. Administration Independent non-executive director Non-executive Executive 3 2 2 3 2 1 3 3 2 3 Website: https://www.mtn.com.gh/investors E-mail: [email protected] Tel: +233 (0)244300000/+2331006820 WestRidge, Accra Independence Avenue MTN House Jeremiah Opoku Investor Relations Plot 4Block 2 Asokwa, Kumasi Practitioners andnotaries Totoe Legal Services Labone, Accra No. 35Labone Crescent Legal practitioners andnotaries Kuenyehia &Nutsukpui Adabraka, Accra No. 27CastleRoad Law TrustCompany Legal representatives GTBank Ghana Limited Zenith Bank (Ghana) Limited Standard Chartered Bank (Ghana) Limited Stanbic Bank Ghana Limited Fidelity Bank Limited Ecobank Ghana Limited Absa Bank Ghana Limited ADB Bank Limited Access Bank (Ghana) Limited Bankers PMB CT 42, Cantonments, Accra A4 Rangoon Lane PwC Tower Chartered accountants PricewaterhouseCoopers Auditor 151 Scancom PLC (MTN Ghana) 2020 Annual Report

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mtn.com.gh Scancom PLC (MTN Ghana) MTN House, Independence Avenue, Accra P.O.Box TF 281, Trade Fair, La, Accra, Ghana Tel: +233 (0) 24 430 0000 Fax: +233 (0) 233 1974 www.mtn.com.gh