Report on the results for the third quarter and nine months ended December 31, 2020 Airtel Africa plc

ORK

Airtel Africa

January 29, 2021

The financial statements included in this quarterly report fairly presents in all material respects the financial position, results of operations and cash flow of the Group as of, and for the periods presented in this report.

| Mobile Services I Mobile Money |

Supplemental Disclosures

Company (Mauritius) Limited, Congo RDC Towers S.A., Gabon Towers Basis of preparation: - The results for the nine months ended 31 S.A. (under dissolution), Indian Ocean Telecom Limited, Madagascar December 2020 are unaudited and in the opinion of management, include all adjustments necessary for the fair presentation of the results Towers S.A., Malawi Towers Limited, Mobile Commerce Congo S.A., of the same period. The financial information has been prepared based Montana International, Partnership Investments SARL, Societe on International Accounting Standard 34 (IAS 34) and apply the same Malgache de Telephone Cellulaire S.A., Tanzania Towers Limited (under accounting policies, presentation and methods of calculation as those liquidation), Bharti Airtel Rwanda Holdings Limited , Airtel Money followed in the preparation of the Group’s annual consolidated financial Transfer Limited, Airtel Money Tanzania Limited , Airtel Mobile statements for the year ended 31 March 2020 except to the extent Commerce Nigeria Limited, Airtel Mobile Commerce Nigeria B.V., Airtel required/ prescribed by IAS 34. This report should be read in conjunction Mobile Commerce (Seychelles) B.V., Airtel Mobile Commerce Congo with audited consolidated financial statements and related notes for the year ended 31 March 2020. The comparative information has been B.V., Airtel Mobile Commerce Kenya B.V., Airtel Mobile Commerce drawn based on Airtel Africa plc’s Audited Consolidated Financial Madagascar B.V., Airtel Mobile Commerce Malawi B.V., Airtel Mobile Statements for the year ended 31 March 2020 prepared under Commerce Rwanda B.V., Airtel Mobile Commerce Tchad B.V., Airtel International Financial Reporting Standard (IFRS). Mobile Commerce Uganda B.V., Airtel Mobile Commerce Zambia B.V., Airtel International LLP, Tigo Rwanda Limited, Airtel Money Trust, Use of certain Alternative performance measures (APM):- This result Seychelles Cable Systems Company Limited (Associate), Airtel Mobile announcement contains certain information on the Group’s results of Commerce Gabon B.V., Airtel Mobile Commerce Niger B.V., Airtel operations and cash flows that have been derived from amounts Mobile Commerce DRC B.V., Airtel Money Kenya Limited and Airtel calculated in accordance with International Financial Reporting Standard Digital Services Holdings B.V. (incorporated w.e.f. 12th November, 2020). (IFRS), but are not in themselves IFRS measures. They should not be viewed in isolation as alternatives to the equivalent IFRS measures and Disclaimer: By reading this presentation you agree to be bound by the should be read in conjunction with the equivalent IFRS measures. following conditions.

Further, disclosures are also provided under “7.2 Use of Alternative The information contained in this presentation in relation to Airtel Africa performance measures (APM) Financial Information” on page 33 plc ("Airtel Africa") and its subsidiaries has been prepared solely for use

at this presentation. The presentation is not directed to, or intended for Safe Harbor: The IAS 34 financials considered for the purpose of this distribution to or use by, any person or entity that is a citizen or resident report is unaudited. or located in any jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would Convenience translation: - We publish our financial statements in require any registration or licensing within such jurisdiction. United States Dollars. All references herein to “US dollars”, “USD”, “$” and “US$” are to United States dollars. Translation of income statement References in this presentation to "Airtel Africa", "Group", "we", "us" and items have been made from local currencies of Africa operating units to "our" when denoting opinion refer to Airtel Africa plc and its subsidiaries. USD (unless otherwise indicated) using the respective monthly average rates. Translation of statement of financial position items has been made using the closing rate. All amounts translated as described above are Forward-looking statement provided solely for the convenience of the reader, and no representation This document contains certain forward-looking statements including is made that the local currencies or USD amounts referred to herein could "forward-looking" statements made within the meaning of Section 21E of have been or could be converted into USD or local currencies the United States Securities Exchange Act of 1934, regarding our respectively, as the case may be, at any particular rate, the above rates intentions, beliefs or current expectations concerning, amongst other or at all. Any discrepancies in any table between totals and sums of the things, our results of operations, financial condition, liquidity, prospects, amounts listed are due to rounding off. growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the

Group operates. Others: In this report, the terms “we”, “us”, “our”, “ Airtel - Africa”, or “Africa”, unless otherwise specified or the context otherwise implies, refer to the Airtel Africa plc and its subsidiaries and its associate, Bharti Airtel These statements are often, but not always, made through the use of International (Netherlands) B.V., Airtel (Seychelles) Limited, Airtel Congo words or phrases such as "believe," "anticipate," "could," "may," "would," S.A, Airtel Gabon S.A., Airtel Madagascar S.A., Airtel Malawi plc, Airtel "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," Mobile Commerce B.V., Airtel Mobile Commerce Holdings B.V., Airtel "project," "positioned," "strategy," "outlook", "target" and similar Mobile Commerce Kenya Limited, Airtel Mobile Commerce Limited expressions. (Malawi), Airtel Mobile Commerce Madagascar S.A., Airtel Mobile Commerce Rwanda Limited, Airtel Mobile Commerce (Seychelles) It is believed that the expectations reflected in this document are Limited, Airtel Mobile Commerce Tanzania Limited, Airtel Mobile reasonable, but they may be affected by a wide range of variables that Commerce Tchad SARL, Airtel Mobile Commerce Uganda Limited, Airtel could cause actual results to differ materially from those currently Mobile Commerce Zambia Limited , Airtel Money RDC S.A., Airtel Money anticipated. Niger S.A., Airtel Money S.A. (Gabon), Airtel Networks Kenya Limited, Airtel Networks Limited, Airtel Networks Zambia plc, Airtel Rwanda All such forward-looking statements involve estimates and assumptions Limited, Airtel Tanzania plc, Airtel Tchad S.A., Airtel Uganda Limited, that are subject to risks, uncertainties and other factors that could cause Bharti Airtel Africa B.V., Bharti Airtel Chad Holdings B.V. , Bharti Airtel actual future financial condition, performance and results to differ Congo Holdings B.V., Bharti Airtel Developers Forum Limited, Bharti materially from the plans, goals, expectations and results expressed in Airtel Gabon Holdings B.V. , Bharti Airtel Kenya B.V., Bharti Airtel Kenya the forward-looking statements and other financial and/or statistical data Holdings B.V., Bharti Airtel Madagascar Holdings B.V. , Bharti Airtel within this communication. Malawi Holdings B.V. , Bharti Airtel Mali Holdings B.V., Bharti Airtel Niger Holdings B.V. , Bharti Airtel Nigeria B.V. , Bharti Airtel Nigeria Holdings Among the key factors that could cause actual results to differ materially II B.V. , Bharti Airtel RDC Holdings B.V. , Bharti Airtel Services B.V. , from those projected in the forward-looking statements are uncertainties Bharti Airtel Tanzania B.V., Bharti Airtel Uganda Holdings B.V., Bharti related to the following: the impact of competition from illicit trade; the Airtel Zambia Holdings B.V., Celtel (Mauritius) Holdings Limited, Airtel impact of adverse domestic or international legislation and regulation; Congo RDC S.A., Celtel Niger S.A., Channel Sea Management changes in domestic or international tax laws and rates; adverse litigation and dispute outcomes and the effect of such outcomes on Airtel Africa’s

Page 1 of 60

financial condition; changes or differences in domestic or international economic or political conditions; the ability to obtain price increases and the impact of price increases on consumer affordability thresholds; adverse decisions by domestic or international regulatory bodies; the impact of market size reduction and consumer down-trading; translational and transactional foreign exchange rate exposure; the impact of serious injury, illness or death in the workplace; the ability to maintain credit ratings; the ability to develop, produce or market new alternative products and to do so profitably; the ability to effectively implement strategic initiatives and actions taken to increase sales growth; the ability to enhance cash generation and pay dividends and changes in the market position, businesses, financial condition, results of operations or prospects of Airtel Africa.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward- looking statements contained in this document reflect the knowledge and information available to Airtel Africa at the date of preparation of this document and Airtel Africa undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.

No statement in this communication is intended to be, nor should be construed as, a profit forecast or a profit estimate and no statement in this communication should be interpreted to mean that earnings per share of Airtel Africa plc for the current or any future financial periods would necessarily match, exceed or be lower than the historical published earnings per share of Airtel Africa plc.

Financial data included in this document are presented in US$ rounded to the nearest million. Therefore, discrepancies in the tables between totals and the sums of the amounts listed may occur due to such rounding. The percentages included in the tables throughout the document are based on numbers calculated to the nearest $1,000 and therefore minor rounding differences may results in the tables.

No profit or earnings per share forecasts No statement in this communication is intended to be, nor should be construed as, a profit forecast or a profit estimate and no statement in this communication should be interpreted to mean that earnings per share of Airtel Africa for the current or any future financial periods would necessarily match, exceed or be lower than the historical published earnings per share of Airtel Africa.

Audience

The material in this presentation is provided for the purpose of giving information about Airtel Africa and its subsidiaries to investors only and is not intended for general consumers. Airtel Africa, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

Page 2 of 60

TABLE OF CONTENTS

Section 1 Performance at a glance 4

Section 2 Financial Highlights

2.1 Consolidated - Summary of Consolidated Financial Statements 5

2.2 Consolidated - Summary of Statement of Financial Position 6

Section 3 Segment Wise – Summary of Financial Statements

3.1 Summarized Statement of Operations 7

3.2 Segment Wise Contribution 10

Section 4 Product wise – Summary of Financial Statements

4.1 Mobile Services – Summarized Statement of Operations 11

4.2 Mobile Services – Segment Wise Contribution 15

4.3 Mobile Money – Summarized Statement of Operations 16

4.4 Product Wise Contribution 17

Section 5 Operating Highlights 18

Section 6 Management Discussion and Analysis

6.1 Reporting Methodology 22

6.2 Key Company Developments 22

6.3 Results of Operations 24

Section 7 Detailed Financial and Related Information 29

Section 8 Net Debt and Cost Schedules 36

Section 9 Trends and Ratio Analysis 38

Section 10 Key Accounting Policies 51

Section 11 Glossary 56

Page 3 of 60

SECTION 1

PERFORMANCE AT A GLANCE

Financial Year Ended Quarter Ended Particulars Unit IFRS IFRS 2020 2019 2018 Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Operating Highlights Total Customer Base 000’s 110,604 98,851 89,262 118,903 116,371 111,461 110,604 107,140 Total Minutes on Netw ork Mn Min 250,080 207,334 159,549 85,651 80,375 71,891 68,870 65,086 Data MBs Mn MBs 710,510 392,631 237,563 320,568 293,919 279,541 219,015 189,798 Mobile Money Transaction Value US$ Mn 30,224 23,582 18,888 12,959 11,637 9,038 8,031 8,001 Netw ork Tow ers Nos 22,909 21,059 19,731 24,693 24,246 23,471 22,909 22,253 Total Employees Nos 3,363 3,075 3,273 3,498 3,453 3,432 3,363 3,286 No. of countries of operation Nos 14 14 14 14 14 14 14 14 Consolidated Financials (US$ Mn) Ongoing Operations (Reported Currency) Revenue US$ Mn 3,422 3,077 2,910 1,034 965 851 899 883 EBITDA US$ Mn 1,515 1,332 1,139 485 437 375 397 399 EBIT US$ Mn 905 796 600 308 269 210 244 245 Cash profit from operations before US$ Mn 1,210 1,001 786 402 357 295 325 326 Derivative and Exchange Fluctuations Profit before tax (before exceptional items) US$ Mn 533 441 158 180 177 111 97 167 Net Income (after NCI) US$ Mn 370 412 (138) 95 70 42 65 90 Capex US$ Mn 642 630 411 188 149 66 246 150 Operating Free Cash Flow (EBITDA - Capex) US$ Mn 873 702 728 298 287 309 151 249 Net Debt US$ Mn 3,247 4,005 7,755 3,518 3,459 3,425 3,247 3,233 Shareholder's Equity US$ Mn 3,388 2,626 (1,085) 3,362 3,407 3,304 3,388 3,529 Non-controlling interests ('NCI') US$ Mn (107) (196) (232) (69) (89) (93) (107) (168) Total Equity US$ Mn 3,281 2,429 (1,317) 3,293 3,318 3,211 3,281 3,361 Total Capital Employed US$ Mn 6,528 6,435 6,438 6,811 6,777 6,636 6,528 6,595 Key Ratios EBITDA Margin % 44.3% 43.3% 39.1% 46.9% 45.3% 44.1% 44.1% 45.2% EBIT Margin % 26.5% 25.9% 20.6% 29.8% 27.8% 24.7% 27.2% 27.7% Net Profit Margin % 10.8% 13.4% (4.7%) 9.1% 7.3% 4.9% 7.2% 10.1% Net Debt to EBITDA (LTM) Times 2.1 3.0 6.8 2.1 2.2 2.2 2.1 2.2 Net Debt to EBITDA (Annualised) Times 2.1 3.0 6.8 1.8 2.0 2.3 2.0 2.0 Interest Coverage ratio Times 5.1 3.9 3.5 6.2 5.8 5.1 5.5 5.4 Return on Equity (Pre-Tax) % 18.3% 15.3% 0.0% 17.6% 17.0% 16.9% 18.3% 18.5% Return on Equity (Post-Tax) % 10.9% 15.7% 0.0% 8.1% 7.8% 8.7% 10.9% 11.0% Return on Capital employed % 14.0% 12.4% 9.2% 15.5% 14.6% 13.9% 13.7% 13.2%

Mobile Money Transaction Value is in Constant Currency

Page 4 of 60

SECTION 2

FINANCIAL HIGHLIGHTS

The financial information contained in this report is drawn from Airtel Africa plc’s interim unaudited condensed consolidated financial statements prepared under IAS 34 for the nine months ended 31 December 2020 and from Airtel Africa plc’s Audited Consolidated Financial Statements for the year ended 31 March 2020 prepared under International Financial Reporting Standard (IFRS) for the comparative periods presented.

2.1 Summary of Consolidated Financial Statements

2.1.1 Consolidated Summarized Statement of Operations – (in Reported Currency)

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 1,034 883 17% 2,850 2,522 13% EBITDA 485 399 22% 1,297 1,118 16% EBITDA / Revenue 46.9% 45.2% 1.7 pp 45.5% 44.3% 1.2 pp EBIT 308 245 26% 787 661 19% Finance cost (net) 128 76 67% 318 225 41% Share of results of Associate 0 0 (84%) (0) (0) (428%) Profit before tax (before exceptional items) 180 167 8% 468 436 7% Income tax expense 89 95 (6%) 235 210 12% Profit after tax (before exceptional items) 91 73 25% 233 227 3% Non Controlling Interest (before exceptional items) 17 10 70% 46 23 100% Net Income (before exceptional items) 74 63 18% 187 203 (8%) Exceptional Items (net of tax) (25) (30) 16% (28) (104) 73% Profit after tax (after exceptional items) 116 103 13% 261 331 (21%) Non Controlling Interest 21 13 70% 55 26 113% Net Income (after NCI) 95 90 5% 206 305 (32%) Capex 188 150 25% 403 396 2% Operating Free Cash Flow (EBITDA - Capex) 298 249 20% 894 722 24% Total Capital Employed 6,811 6,595 3% 6,811 6,595 3%

Page 5 of 60

2.1.2 Consolidated Summarized Statement of Operations – (in Constant Currency)

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 1,038 845 23% 2,857 2,408 19% EBITDA 487 380 28% 1,300 1,061 23% EBITDA / Revenue 46.9% 44.9% 2.0 pp 45.5% 44.1% 1.4 pp EBIT 309 231 34% 789 622 27% Capex 188 150 25% 403 396 2% Operating Free Cash Flow (EBITDA - Capex) 299 230 30% 897 665 35% Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

2.2 Consolidated - Summary of Statement of Financial Position (in Reported Currency) Amount in US$ Mn As at As at Particulars Dec 31, 2020 Mar 31, 2020 Assets Non-current assets 7,932 7,654 Current assets 1,965 1,671 Total assets 9,897 9,325

Liabilities Current liabilities 3,494 2,488 Non-current liabilities 3,110 3,556 Total liabilities 6,604 6,044

Net current liability (1,529) (817)

Net Assets 3,293 3,281

Equity Equity attributable to ow ners of the company 3,362 3,388 Non-controlling interests ('NCI') (69) (107) Total equity 3,293 3,281

Total Equity and liabilities 9,897 9,325

Page 6 of 60

SECTION 3

SEGMENT WISE – SUMMARY OF FINANCIAL STATEMENTS

Segmental reporting includes all businesses of that geography.

3.1 Summarized Statement of Operations

3.1.1 Nigeria

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 412 355 16% 1,130 995 13% EBITDA 221 194 14% 608 535 14% EBITDA / Revenue 53.8% 54.7% -0.9 pp 53.8% 53.7% 0.1 pp EBIT 159 146 9% 431 398 8% Capex 81 64 26% 178 180 (1%) Operating Free Cash Flow 140 130 8% 430 355 21% (EBITDA - Capex)

In Constant Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 414 334 24% 1,136 934 22% EBITDA 223 183 22% 611 502 22% EBITDA / Revenue 53.8% 54.7% -0.9 pp 53.8% 53.7% 0.1 pp EBIT 160 138 17% 433 373 16% Capex 81 64 26% 178 180 (1%) Operating Free Cash Flow 142 119 20% 432 322 34% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 7 of 60

3.1.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 364 313 16% 1,023 891 15% EBITDA 170 127 34% 463 360 29% EBITDA / Revenue 46.8% 40.5% 6.2 pp 45.2% 40.4% 4.8 pp EBIT 113 70 61% 297 186 60% Capex 87 61 43% 168 121 39% Operating Free Cash Flow 83 66 26% 295 239 23% (EBITDA - Capex)

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 374 297 26% 1,038 842 23% EBITDA 174 120 46% 467 337 39% EBITDA / Revenue 46.5% 40.2% 6.3 pp 45.0% 40.0% 5.0 pp EBIT 115 65 76% 299 171 75% Capex 87 61 43% 168 121 39% Operating Free Cash Flow 87 59 48% 300 216 39% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 8 of 60

3.1.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 259 218 19% 704 644 9% EBITDA 108 82 32% 254 222 15% EBITDA / Revenue 41.7% 37.5% 4.2 pp 36.1% 34.5% 1.7 pp EBIT 51 32 58% 98 79 24% Capex 20 24 (19%) 56 93 (40%) Operating Free Cash Flow 88 57 54% 198 129 54.1% (EBITDA - Capex)

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 249 217 15% 690 639 8% EBITDA 104 81 28% 249 221 13% EBITDA / Revenue 41.8% 37.5% 4.3 pp 36.1% 34.5% 1.6 pp EBIT 49 32 54% 96 79 22% Capex 20 24 (19%) 56 93 (40%) Operating Free Cash Flow 85 57 48% 194 128 52% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 9 of 60

3.2 Segment Wise Contribution (in Constant Currency)

Quarter Ended:

Amount in US$ Mn, except ratios Quarter Ended Dec-20 Region Revenue % of Total EBITDA % of Total Capex % of Total

Nigeria 414 40% 223 46% 81 43% East Africa 374 36% 174 36% 87 46% Francophone Africa 249 24% 104 21% 20 11% Total before Elimnation/Others 1,038 100% 501 103% 187 100% Eliminations / Others 0 0% (14) (3%) 0 0% Total 1,038 100% 487 100% 188 100% Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Nine Months Ended: Amount in US$ Mn, except ratios Nine Months Ended Dec-20 Region Revenue % of Total EBITDA % of Total Capex % of Total

Nigeria 1,136 40% 611 47% 178 44% East Africa 1,038 36% 467 36% 168 42% Francophone Africa 690 24% 249 19% 56 14% Total before Elimnation/Others 2,864 100% 1,328 102% 402 100% Eliminations / Others (7) (0%) (28) (2%) 1 0%

Total 2,857 100% 1,300 100% 403 100% Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 10 of 60

SECTION 4

PRODUCT WISE – SUMMARY OF FINANCIAL STATEMENTS

4.1 Mobile Services- Summarized Statement of Operations

4.1.1 Consolidated Summarized Statement of Operations

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 948 826 15% 2,637 2,366 11% EBITDA 446 363 23% 1,183 1,006 18% EBITDA / Revenue 47.1% 43.9% 3.2 pp 44.9% 42.5% 2.3 pp EBIT 271 210 29% 691 556 24% Capex 184 145 27% 395 386 2% Operating Free Cash Flow 262 217 21% 788 620 27% (EBITDA - Capex)

In Constant Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 951 791 20% 2,643 2,259 17% EBITDA 447 345 30% 1,186 954 24% EBITDA / Revenue 47.1% 43.6% 3.5 pp 44.9% 42.2% 2.7 pp EBIT 272 198 38% 693 522 33% Capex 184 145 27% 395 386 2% Operating Free Cash Flow 263 200 32% 791 567 39% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 11 of 60

4.1.2 Nigeria

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 412 354 16% 1,129 991 14% EBITDA 222 194 14% 608 531 14% EBITDA / Revenue 53.8% 54.7% -0.8 pp 53.8% 53.6% 0.2 pp EBIT 159 146 9% 431 394 9% Capex 81 64 26% 178 180 (1%) Operating Free Cash Flow 141 130 8% 430 352 22% (EBITDA - Capex)

In Constant Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 414 333 24% 1,135 930 22% EBITDA 223 182 22% 611 499 23% EBITDA / Revenue 53.8% 54.7% -0.8 pp 53.8% 53.6% 0.2 pp EBIT 161 137 17% 433 370 17% Capex 81 64 26% 178 180 (1%) Operating Free Cash Flow 142 118 20% 433 319 36% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 12 of 60

4.1.3 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 301 272 11% 863 779 11% EBITDA 132 101 31% 363 291 25% EBITDA / Revenue 43.9% 37.1% 6.8 pp 42.1% 37.3% 4.7 pp EBIT 76 45 68% 201 120 68% Capex 84 57 47% 162 115 41% Operating Free Cash Flow 48 44 10% 201 176 14% (EBITDA - Capex)

In Constant Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 310 258 20% 876 736 19% EBITDA 135 95 42% 367 272 35% EBITDA / Revenue 43.6% 36.8% 6.9 pp 41.9% 36.9% 5.0 pp EBIT 78 42 85% 203 110 85% Capex 84 57 47% 162 115 41% Operating Free Cash Flow 51 38 35% 205 157 31% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 13 of 60

4.1.4 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 238 202 18% 652 600 9% EBITDA 92 68 36% 214 184 16.0% EBITDA / Revenue 38.8% 33.7% 5.1 pp 32.8% 30.7% 2.1 pp EBIT 35 18 91% 58 42 39% Capex 19 24 (21%) 55 92 (41%) Operating Free Cash Flow 73 44 67% 159 92 72% (EBITDA - Capex)

In Constant Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 229 201 14% 639 596 7% EBITDA 89 68 32% 210 183 14% EBITDA / Revenue 38.9% 33.7% 5.2 pp 32.8% 30.8% 2.0 pp EBIT 34 18 85% 57 42 36% Capex 19 24 (21%) 55 92 (41%) Operating Free Cash Flow 70 43 61% 155 92 69% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 14 of 60

4.2 Mobile Services - Segment Wise Contribution (in Constant Currency)

Quarter Ended:

Amount in US$ Mn, except ratios Quarter Ended Dec-20 Region Revenue % of Total EBITDA % of Total Capex % of Total Nigeria 414 44% 223 50% 81 44% East Africa 310 33% 135 30% 84 46% Francophone Africa 229 24% 89 20% 19 10% Total before Elimnation/Others 953 100% 447 100% 184 100% Eliminations / Others (3) (0%) 0 0% 0 0% Total 951 100% 447 100% 184 100% Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Nine Months Ended:

Amount in US$ Mn, except ratios Nine Months Ended Dec-20 Region Revenue % of Total EBITDA % of Total Capex % of Total Nigeria 1,135 43% 611 52% 178 45% East Africa 876 33% 367 31% 162 41% Francophone Africa 639 24% 210 18% 55 14% Total before Elimnation/Others 2,650 100% 1,188 100% 395 100% Eliminations / Others (7) (0%) (2) (0%) 0 0%

Total 2,643 100% 1,186 100% 395 100% Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 15 of 60

4.3 Mobile Money - Summarized Statement of Operations

4.3.1 Consolidated Summarized Statement of Operations

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 110 82 34% 291 228 28% EBITDA 54 40 33% 142 110 28% EBITDA / Revenue 48.7% 49.0% -0.2 pp 48.7% 48.5% 0.2 pp EBIT 52 39 34% 135 106 27% Capex 3 4 (19%) 7 7 (1%) Operating Free Cash Flow 51 36 39% 135 103 30% (EBITDA - Capex)

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Revenue 111 79 41% 292 217 34% EBITDA 54 39 40% 142 106 34% EBITDA / Revenue 48.6% 49.2% -0.5 pp 48.6% 48.6% -0.1 pp EBIT 52 37 40% 135 102 33% Capex 3 4 (19%) 7 7 (1%) Operating Free Cash Flow 51 35 45% 135 99 37% (EBITDA - Capex) Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 16 of 60

4.4 Product Wise Contribution (in Constant Currency)

Quarter Ended: Amount in US$ Mn, except ratios Quarter Ended Dec-20 Products Revenue % of Total EBITDA % of Total Capex % of Total Mobile Services 951 92% 447 92% 184 98% Mobile Money 111 11% 54 11% 3 2% Total before Elimnation/Others 1,062 102% 501 103% 187 100% Eliminations / Others (23) (2%) (14) (3%) 1 0% Total 1,038 100% 487 100% 188 100%

Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Nine Months Ended:

Amount in US$ Mn, except ratios Nine Months Ended Dec-20 Products Revenue % of Total EBITDA % of Total Capex % of Total Mobile Services 2,643 93% 1,186 91% 395 98% Mobile Money 292 10% 142 11% 7 2% Total before Elimnation/Others 2,935 103% 1,328 102% 402 100% Eliminations / Others (78) (3%) (28) (2%) 1 0% Total 2,857 100% 1,300 100% 403 100%

Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 17 of 60

SECTION 5

OPERATING HIGHLIGHTS

The financial figures used for computing ARPU & Revenue per Site are based on Constant Currency.

5.1 Operational Performance (Quarter Ended)

5.1.1 Consolidated Operational Performance

Q-on-Q Y-on-Y Parameters Unit Dec-20 Sep-20 Dec-19 Change Change Customer Base 000's 118,903 116,371 2.2% 107,140 11.0% Net Additions 000's 2,532 4,910 (48.4%) 3,258 (22.3%) Monthly Churn % 5.0% 5.3% -0.3 pp 5.2% -0.2 pp Average Revenue Per User (ARPU) US$ 2.9 2.8 3.7% 2.7 9.3% Voice Voice Revenue US$ Mn 566 517 9.4% 484 16.9% Minutes on the netw ork Mn 85,651 80,375 6.6% 65,086 31.6% Voice Average Revenue Per User (ARPU) US$ 1.6 1.5 5.3% 1.5 4.0% Voice Usage per customer min 241 235 2.5% 206 17.1% Data Data Revenue US$ Mn 295 283 4.3% 232 27.0% Data Customer Base 000's 40,624 39,596 2.6% 32,887 23.5% As % of Customer Base % 34.2% 34.0% 0.1 pp 30.7% 3.5 pp Total MBs on the netw ork Mn MBs 320,568 293,919 9.1% 189,798 68.9% Data Average Revenue Per User (ARPU) US$ 2.4 2.5 (1.5%) 2.4 1.5% Data Usage per customer MBs 2,653 2,576 3.0% 1,967 34.9%

Mobile Money Transaction Value US$ Mn 12,959 11,637 11.4% 8,001 62.0% Transaction Value per Sub US$ 208 199 4.6% 166 25.9% Mobile Money Revenue US$ Mn 111 100 11.4% 79 41.1% Active Customers 000's 21,460 20,120 6.7% 16,634 29.0% Mobile Money ARPU US$ 1.8 1.7 4.7% 1.6 9.7%

Network and Coverage Netw ork tow ers Nos 24,693 24,246 447 22,253 2,440 Owned Towers Nos 4,530 4,561 (31) 4,454 76 Leased Towers Nos 20,163 19,685 478 17,799 2,364 Of w hich Mobile Broadband tow ers Nos 22,998 22,250 748 19,133 3,865 Total Mobile Broadband Base stations Nos 72,616 63,705 8,911 43,174 29,442 Data Capacity TB/day 11,448 10,253 11.7% 6,780 68.8%

Revenue Per Site Per Month US$ 14,108 13,408 5.2% 12,718 10.9% Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.

Page 18 of 60

5.2 Nigeria Operational Performance

Q-on-Q Y-on-Y Parameters Unit Dec-20 Sep-20 Dec-19 Change Change Customer Base 000's 44,449 44,054 0.9% 39,855 11.5% Net Additions 000's 395 1,541 (74.4%) 343 15.3% Monthly Churn % 5.4% 6.1% -0.8 pp 6.8% -1.4 pp Average Revenue Per User (ARPU) US$ 3.1 2.9 5.1% 2.8 9.5%

Voice Voice Revenue US$ Mn 245 217 12.9% 205 19.4% Minutes on the netw ork Mn 23,578 20,867 13.0% 18,812 25.3% Voice Average Revenue Per User (ARPU) US$ 1.8 1.7 8.3% 1.7 5.3% Voice Usage per customer min 174 161 8.5% 158 10.5% Data Data Revenue US$ Mn 141 135 4.6% 109 30.2% Data Customer Base 000's 18,831 19,003 (0.9%) 15,234 23.6% As % of Customer Base % 42.4% 43.1% -0.8 pp 38.2% 4.1 pp Total MBs on the netw ork Mn MBs 158,566 147,471 7.5% 96,313 64.6% Data Average Revenue Per User (ARPU) US$ 2.5 2.5 (2.5%) 2.4 3.3% Data Usage per customer MBs 2,749 2,743 0.2% 2,105 30.6%

Network and Coverage Netw ork tow ers Nos 10,588 10,347 241 8,924 1,664 Owned Towers Nos 203 199 4 177 26 Leased Towers Nos 10,385 10,148 237 8,747 1,638 Of which Mobile Broadband towers Nos 10,376 10,002 374 8,093 2,283 Total Mobile Broadband Base stations Nos 37,098 30,091 7,007 13,865 23,233 Data Capacity TB/day 6,115 5,245 16.6% 2,486 145.9% Revenue Per Site Per Month US$ 13,179 12,500 5.4% 12,491 5.5%

Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.

Page 19 of 60

5.3 East Africa Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

Q-on-Q Y-on-Y Parameters Unit Dec-20 Sep-20 Dec-19 Change Change Customer Base 000's 52,612 51,265 2.6% 47,366 11.1% Net Additions 000's 1,348 2,508 (46.3%) 2,359 (42.9%) Monthly Churn % 4.6% 4.5% 0.1 pp 3.8% 0.7 pp Average Revenue Per User (ARPU) US$ 2.4 2.4 0.9% 2.2 11.5%

Voice Voice Revenue US$ Mn 179 171 4.5% 149 20.4% Minutes on the netw ork Mn 52,988 51,335 3.2% 39,177 35.3% Voice Average Revenue Per User (ARPU) US$ 1.1 1.1 0.8% 1.1 6.5% Voice Usage per customer min 340 342 (0.4%) 284 19.7%

Data Data Revenue US$ Mn 90 89 1.1% 77 17.2% Data Customer Base 000's 15,638 14,924 4.8% 12,903 21.2% As % of Customer Base % 29.7% 29.1% 0.6 pp 27.2% 2.5 pp Total MBs on the netw ork Mn MBs 125,879 115,048 9.4% 74,285 69.5% Data Average Revenue Per User (ARPU) US$ 2.0 2.0 (2.5%) 2.1 (3.5%) Data Usage per customer MBs 2,776 2,632 5.5% 1,991 39.4%

Network and Coverage Netw ork tow ers Nos 9,365 9,193 172 8,838 527 Owned Towers Nos 2,492 2,544 (52) 2,475 17 Leased Towers Nos 6,873 6,649 224 6,363 510 Of which Mobile Broadband towers Nos 8,260 8,039 221 7,542 718 Total Mobile Broadband Base stations Nos 24,200 22,567 1,633 20,340 3,860 Data Capacity TB/day 3,703 3,426 8.1% 3,009 23.1% Revenue Per Site Per Month US$ 13,405 13,025 2.9% 11,261 19.0%

Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.

Page 20 of 60

5.4 Francophone Africa Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)

Q-on-Q Y-on-Y Parameters Unit Dec-20 Sep-20 Dec-19 Change Change Customer Base 000's 21,842 21,052 3.8% 19,919 9.7% Net Additions 000's 790 862 (8.4%) 557 41.8% Monthly Churn % 5.5% 5.5% 0.0 pp 5.4% 0.1 pp Average Revenue Per User (ARPU) US$ 3.9 3.7 4.3% 3.7 5.4%

Voice Voice Revenue US$ Mn 140 131 6.8% 133 5.6% Minutes on the netw ork Mn 9,084 8,173 11.2% 7,097 28.0% Voice Average Revenue Per User (ARPU) US$ 2.2 2.1 2.7% 2.3 (3.2%) Voice Usage per customer min 141 132 6.8% 121 17.3%

Data Data Revenue US$ Mn 63 59 8.4% 47 35.8% Data Customer Base 000's 6,155 5,669 8.6% 4,749 29.6% As % of Customer Base % 28.2% 26.9% 1.3 pp 23.8% 4.3 pp Total MBs on the netw ork Mn MBs 36,124 31,400 15.0% 19,200 88.1% Data Average Revenue Per User (ARPU) US$ 3.6 3.5 1.2% 3.5 2.4% Data Usage per customer MBs 2,028 1,889 7.4% 1,429 41.9%

Network and Coverage Netw ork tow ers Nos 4,740 4,706 34 4,491 249 Owned Towers Nos 1,835 1,818 17 1,802 33 Leased Towers Nos 2,905 2,888 17 2,689 216 Of which Mobile Broadband towers Nos 4,362 4,209 153 3,498 864 Total Mobile Broadband Base stations Nos 11,318 11,047 271 8,969 2,349 Data Capacity TB/day 1,630 1,582 3.1% 1,285 26.8%

Revenue Per Site Per Month US$ 17,547 16,363 7.2% 16,255 7.9% Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.

.

Page 21 of 60

SECTION 6

MANAGEMENT DISCUSSION AND ANALYSIS

6.1 Reporting Methodology

• The results for the nine months ended 31 December 2020 Under the terms of the spectrum licences Airtel Nigeria paid are unaudited and in the opinion of management, include all 71.611 billion naira ($189 million) in respect of the licence renewal adjustments necessary for the fair presentation of the results fees. of the same period. The financial information has been prepared based on International Accounting Standard 34 New Licence in Uganda (IAS 34) and apply the same accounting policies, presentation and methods of calculation as those followed in In December, Airtel Uganda Limited was issued with a National the preparation of the Group’s annual consolidated financial Telecom Operator Licence following a period of negotiation and statements for the year ended 31 March 2020 except to the transition to a new Licensing Regime. extent required/ prescribed by IAS 34. This report should be read in conjunction with audited consolidated financial The new licence is with effect from 1 July 2020 and is for a period statements and related notes for the year ended 31 March of 20 years. Airtel Uganda will retain all of its current spectrum 2020. The comparative information has been drawn based subject to the law and terms of assignment. The scope of services on Airtel Africa plc’s Audited Consolidated Financial will be the provision of basic telecommunication services, Statements for the year ended 31 March 2020 prepared infrastructure services, and value-added telecommunication under International Financial Reporting Standard (IFRS). services. In addition, Airtel Uganda commits to achieving coverage of 90% of the geographical boundary of Uganda within five years • The information, apart from the extract of the Financial of the effective date of the licence, with a minimum obligation of Statements in Section 7, is on underlying basis and providing voice and data services. exceptional items are shown separately. This enables an organic comparison of results with past periods. Under the terms of the licence Airtel Uganda has paid $74.6 Mn which includes VAT of $11.4 Mn. 6.2 Key company developments New SIM registration rules in Nigeria

Strategic asset monetisation and investment opportunities Following a directive issued by the Nigerian Communications Commission on 15 December 2020 to all Nigerian telecom We are continuing to look at strategic asset monetisation and operators, Airtel Nigeria is working with the government to ensure investment opportunities for the Group. We are actively pursuing that all our subscribers provide their valid National Identification the sale of the remaining owned tower sites that sit across several Numbers (NINs) to update SIM registration records. of our operating countries and the Group is in discussions with various potential investors in relation to possible minority New customer acquisitions are currently barred until significant investments into Airtel Money. Discussions are ongoing between progress is made on linking the current active base with verified the parties and there can be no certainty that a transaction will be NINs. The deadline for customers to register their NIN with their concluded or as to the final terms of any transaction. SIM has moved from a provisional date of 30 December 2020 in the initial directive in order to accommodate the logistical Licence renewal in Nigeria challenges involved. The latest deadline for registration is currently 9 February 2021. We have made significant progress on capturing In January 2021, Airtel Networks Limited (“Airtel Nigeria”), existing NINs and building the database in collaboration with announced that its application for renewal of the spectrum licences National Identity Management Commission (NIMC). To date, out in the 900MHz and 1800MHz bands had been approved by the of Airtel Nigeria’s 44.4 million customers, we have collated NIN Nigerian Communications Commission (“NCC”). Pursuant to information for 21 million mobile customers (47%). To complete Section 43 of the Nigerian Communications Act, 2003 and the registration process we still need to verify the NIN information Condition 20 of the Unified Access Service Licence (UASL), Airtel we have received from our subscribers with the NIMC. This Nigeria had applied to renew its spectrum licences in the 900MHz requires improved connectivity with the NIMC database which is and 1800MHz bands which would otherwise expire on 30 currently being developed for all the Nigerian mobile operators. November 2021. We have also opened enrolment centres in collaboration with the NIMC to facilitate customers obtaining NINs for roughly half of the Following the application, the NCC offered Airtel Nigeria the population that do not currently have a NIN. We continue to work opportunity to renew its spectrum licences in the 900MHz & closely with the government to ensure full compliance. 1800MHz bands for a period of ten years, with effect from 1 December 2021 until 30 November 2031, which Airtel Nigeria We anticipate that this will affect customer growth in Nigeria in accepted. Q4’21, but the potential overall impact remains uncertain.

Page 22 of 60

Dividend the M&A transaction. The transaction was announced in February 2019 and was subject to the satisfaction of various conditions In October 2020, the Board approved a new progressive dividend precedent, including regulatory approvals. Despite Airtel Africa plc policy during the period as a result of the continued strong and Telkom’s respective endeavours to reach a successful business performance, significant opportunities to invest in future closure, the transaction had gone through a very lengthy process growth and the aim to continue to reduce leverage. The newly which led the parties to reconsider their stance. adopted dividend policy aims to grow the dividend annually by a mid to high single digit percentage from a base of 4 cents per share Partnership with UNICEF for FY 2021, until reported leverage (calculated as net debt to EBITDA) falls below 2.0x. At the point when reported leverage In May 2020, Airtel Africa announced a partnership with UNICEF (calculated as net debt to EBITDA) is below 2.0x, the Board will aimed at providing children with access to remote learning and reassess the dividend policy in light of the growth outlook for the enabling access to cash assistance for their families via mobile Group. On 28 October 2020, in line with the dividend policy, the cash transfers. Under this partnership, UNICEF and Airtel Africa Board declared an interim dividend of 1.5 cents per ordinary share will use mobile technology to benefit an estimated 133 million which was paid on 11 December 2020. school age children currently affected by school closures in 13 countries across sub-Saharan Africa during the Covid-19 Directorate change pandemic.

On 27 October 2020 we announced the appointment of Kelly Mobile money Bayer Rosmarin as a non-executive director with immediate effect. (a) Partnership with remittance leading institutions Ms. Bayer Rosmarin's appointment was by nomination of the controlling shareholder pursuant to the terms of the relationship Airtel Africa entered into several strategic partnerships with agreement dated 17 June 2019 between the Company, Bharti MoneyGram, Mukuru and WorldRemit. Through these Airtel, Airtel Africa Mauritius Limited, the majority shareholder and partnerships, more than 20 million Airtel Money customers in 12 an indirect subsidiary of Bharti Airtel, and Bharti Telecom. Ms. countries can transfer and receive funds across the globe directly Bayer Rosmarin replaced Arthur Lang who stepped down as a from and into their mobile money wallets on their phone. Mobile non-executive director on the same date. money service alliances with these leading international money transfer or remittance service providers will extensively enhance Ms. Bayer Rosmarin is currently CEO of Singtel Optus and customer access to the digital world. Consumer Australia. She was previously with Commonwealth Bank of Australia, where she held several senior positions and (b) Partnership with Standard Chartered Bank varied portfolios, before being appointed as Group Executive of Institutional Banking and Markets. Ms Bayer Rosmarin is In August 2020, Airtel Africa announced a strategic partnership recognised for leveraging technology, data and analytics to with Standard Chartered Bank, a leading international banking develop leading customer services and experience. Ms. Bayer group, to drive financial inclusion across key markets in Africa by Rosmarin was named in the Top 10 Businesswomen in Australia providing customers with increased access to mobile financial and the Top 25 Women in Asia Pacific Finance and holds a variety services. Standard Chartered and Airtel Africa work together to co- of Board and advisory responsibilities. create new, innovative products aimed at enhancing the accessibility of financial services and ultimately, better serve Ms. Bayer Rosmarin has, since February 2019, served as an people across Africa. In line with this, Airtel Money's customers will Independent non-executive director on the Board of OpenPay, be able to make real-time online deposits and withdrawals from listed on the Australian Securities Exchange, and will continue in Standard Chartered bank accounts, receive international money that role. Openpay is a payments technology company based in transfers directly to their wallets, and access savings products Australia. amongst other services.

Additional spectrum (c) Partnership with Mastercard, Samsung and Asante

In June 2020, Airtel Malawi plc was allocated 10 MHz of spectrum In September 2020, Airtel Africa announced an expansion of its in the 2600 band. In October, additional spectrum of 10 MHz in the partnership with Mastercard by launching a Pay-on-Demand 2600 band and 5 MHz in the 1800 band was allocated to Airtel payments platform to drive the digital economy across Africa. This Uganda. In December, Airtel Chad received 5 MHz of spectrum in Pay-on-Demand platform enables safe, secure, and convenient the 900 band and Airtel Zambia received 10 MHz in the 800 band. consumer financing via Samsung devices with an embedded Knox security platform, through Airtel Africa’s network. The partnership Abandonment of merger of Airtel Networks Kenya Limited facilitates usage-based payments and builds creditworthiness. with Telkom Kenya Limited These partnerships align with the Group’s strategy of expanding In August 2020, Airtel Africa plc announced that its subsidiary the range and depth of Airtel Money offerings to drive customer Airtel Networks Kenya Limited ("Airtel Kenya") and Telkom Kenya growth and penetration. Limited ("Telkom") had decided to no longer pursue completion of

Page 23 of 60

6.3 Results of Operations

The financial results presented in this section are compiled based on the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and the underlying information.

Key Highlights – For Nine-month period ended on December 31, 2020

• Reported revenue increased by 13.8% to $2,870 Mn with Q3'21 reported revenue growth of 19.5%. • Constant currency underlying revenue growth was 18.6%, with Q3'21 growth of 22.8%. Growth for the nine months was recorded across all regions: Nigeria up 21.6%, East Africa up 23.4% and Francophone Africa up 8.0%; and across all services, with voice revenue up 10.4%, data up 31.1% and mobile money up 34.2%. • EBITDA for the nine months was $1,297 Mn, up 16% in reported currency while constant currency EBITDA growth was 22.5%. • EBITDA margin for the nine months was 45.5%, up by 1.2pp (up 1.4pp in constant currency). Q3'21 EBITDA margin was 46.9%. • Operating profit increased by 21.8% to $800 Mn in reported currency, and by 29.9% in constant currency. • Free cash flow was $466 Mn, up 20% compared to the same period last year. • Basic EPS was 5.5 cents, down 36.5%, largely due to prior year exceptional items and a one-off derivative gain. Excluding these, basic EPS rose by 19.8%. EPS before exceptional items was 5.0 cents. • Customer base up 11.0% to 118.9 million, with increased penetration across mobile data (customer base up 23.5%) and mobile money services (customer base up 29.0%). 2.5 million customers were added in Q3'21.

Key Highlights – For the Quarter ended December 31, 2020

• Revenue in constant currency increased by 22.8% to $ 1,038 Mn. • Revenue growth of 22.8% in constant currency was driven by growth across all regions: Nigeria up 24.1%, East Africa up 26.0% and Francophone Africa up 15.0%. • Growth was broad based across all services with revenue in Voice, Data and Mobile Money up by 16.9%, 27.0% and 41.1% respectively. • EBITDA in constant currency was $ 487 Mn, up 28.3%. • EBITDA margin in constant currency was 46.9%, an increase of 2.0pp.

Results for the Nine-month period ended on December 31, 2020

6.4.1 Airtel Africa Consolidated

These results demonstrate that Airtel Africa is a highly resilient Zambian kwacha (46.6%) and Kenyan shilling (9%), partially offset business with an effective strategy, delivering strong growth in its by appreciation in the Central African franc (8.7%). Reported customer base and revenue, and expansion of its EBITDA margin. revenue also benefitted from one-time exceptional revenue of $20 This performance continues to be underpinned by a strong focus Mn relating to a settlement in Niger. on the execution of our strategy which is capturing growth The underlying constant currency growth was largely driven by opportunities in a fast-growing region that is vastly customer base growth of 11.0%, to 118.9 million, and ARPU underpenetrated in terms of both mobile and banking services. As growth of 6.1%. Revenue growth was recorded across all regions, a result, we were able to deliver double-digit constant currency with Nigeria up 21.6%, East Africa up 23.4% and Francophone mobile services revenue growth for the nine-months of 17.0% Africa up 8.0%. Double-digit revenue growth was also achieved (11.5% on a reported basis), with 34.2% mobile money revenue across all service segments, with voice up 10.4%, data up 31.1% growth (27.8% on a reported basis). and mobile money up 34.2% in constant currency. Basic EPS was 5.5 cents, down by 36.5%, as a result of higher Q3’21 reported revenue growth accelerated to 19.5% (benefiting other finance costs due to a $47 Mn derivative gain in the prior from the same $20 Mn exceptional revenue), while underlying period, an increase in tax charges due to higher operating profit constant currency revenue growth was 22.8%. and withholding tax on dividends, higher non-controlling interest and the recognition in the prior period of one-off gain of $72 Mn Operating profit amounted to $800 Mn, up 21.8% in reported related to the expired indemnity to certain pre-IPO investors which currency, as a result of strong revenue growth and lower operating was accounted for as an exceptional item. Excluding exceptional expenditures in proportion to revenue. Operating profit in constant items and the one-off $47 Mn derivative gain, basic EPS would be currency grew by almost 30%. up 19.8%. Non-controlling interest more than doubled largely as a result of higher profit in OPCOs with minority shareholdings Net finance costs increased by $93 Mn, driven by higher other including Airtel Nigeria, Airtel Tanzania, Airtel Niger and Airtel finance costs which more than offset the reduced interest costs of Malawi. $9.0m as a result of lower gross debt. Increase in other finance costs was primarily due to a higher forex impact of $38 Mn ($81 Reported Group revenue increased by 13.8%, largely driven by Mn in current period vs $43 Mn in previous period) and one-off 18.6% of underlying constant currency growth partially offset by derivative gains of $47 Mn in the previous period. currency devaluations, mainly in the Nigerian naira (7.9%),

Page 24 of 60

Total tax charges for the period amounted to $221 Mn as been settled and recognised as an exceptional item) (ii) a deferred compared to $170 Mn in the comparable period last year. This was tax credit in Tanzania amounting to $14 Mn, partially offset by (iii) due to higher operating profit and withholding tax on dividends one-off costs of $6.7 Mn in Francophone Africa. Exceptional items declared. The prior period also benefited from recognition of higher for the nine-month period ended 31 December 2019 mainly deferred tax credit of $43 Mn in DRC as against $14 Mn in consisted of a $72 Mn gain related to the expired indemnity to Tanzania during the nine-month period ended 31 December 2020. certain pre-IPO investors and a deferred tax credit of $43 Mn in DRC. Profit after tax was $261 Mn, down by 21.1%. This was largely a result of the prior year period recognition of a one-off gain of $72 Free cash flow was $466 Mn, up by 20% largely due to higher Mn related to the expired indemnity to certain pre-IPO investors, a EBITDA, with capex broadly stable. This was partially offset by an higher deferred tax credit of $29 Mn in the previous period, as well increase of $71 Mn in cash tax as a result of higher operating profit. as higher finance costs and tax in the current period. Excluding the benefit of exceptional items and one-off derivative gain of $47 Mn EPS before exceptional items was 5.0 cents, down by 13.7%, as in the prior period, profit after tax has increased by 30.1%. a result of higher other finance costs due to the recognition of a Basic EPS was 5.5 cents, down 36.5%. This was a result of higher $47 Mn derivative gain in the prior period, higher non-controlling other finance costs, due to a $47 Mn derivative gain in the prior interest, and an increase in tax charges due to the higher operating period, an increase in tax charges due to higher operating profit profit and withholding tax on the dividend. Excluding the one-time and withholding tax on dividend, higher non-controlling interest, derivative gain of $47 Mn, restated EPS grew 19.8%. Non- and the recognition in the prior period of a one-off gain of $72 Mn controlling interest increased by $29 Mn (113%), largely as a result related to the expired indemnity to certain pre-IPO investors which of higher profit in OPCOs with minority shareholdings including was accounted for as an exceptional item. Excluding exceptional Airtel Nigeria, Airtel Tanzania, Airtel Niger and Airtel Malawi. items and the one-off $47 Mn derivative gain, basic EPS would be up 19.8%. Non-controlling interest increased by $29 Mn (113%), 6.4.2 Net Debt largely as a result of higher profit in OPCOs with minority shareholdings, including Airtel Nigeria, Airtel Tanzania, Airtel Net debt to EBITDA improved to 2.1x, as the increase in EBITDA Niger and Airtel Malawi. more than offset the increase in net debt.

Alternative performance measures 6.4.3 Segment Wise – Africa

EBITDA for the nine months was $1,297 Mn, up 16% year on year 6.4.3.1 Nigeria in reported currency. In constant currency EBITDA grew 22.5%. Revenue in reported currency grew by 13.5%, while in constant This was driven by revenue growth of 18.6% and improved currency revenue grew by 21.6% as a result of Nigerian naira efficiency in operating expenses. EBITDA margin was 45.5%, an devaluation by 7.9% (YoY). Revenue growth in Q3’21 improved to improvement of 1.2pp in reported currency and 1.4 pp in constant 15.9% in reported currency, and to 24.1% in constant currency. currency. Voice revenue continued to grow by double digit to $657 Mn in the Foreign exchange had an adverse impact of $122 Mn on constant nine-month period, up by 14.2% in constant currency. Voice currency revenue and $60 Mn on EBITDA, largely driven by revenue growth was driven by the combination of growing devaluation of the Nigerian naira, Zambian kwacha and Kenya customer base and ARPU. The customer base increased by shilling, partially offset by appreciation in the Central African Franc 11.5%, driven by continued expansion of our distribution network (CFA). and network infrastructure. Voice ARPU growth of 1.4% was a result of increased voice usage per customer, up 12.4%. Q3’21 Q3’21 EBITDA margin was 46.9%, an improvement of 1.7pp in voice revenue growth accelerated to 19.4% in constant currency, reported currency and 2.0pp in constant currency. mainly driven by voice ARPU growth.

The effective tax rate was 46% compared to 50% in the previous Data revenue growth of 35.2% in constant currency was driven by period, largely as a result of the profit mix change amongst the 23.6% growth in data customers and the 12.2% growth in data operating entities (“OPCOs”). The effective tax rate is higher than ARPU. Data customer penetration was up by 4.1pp from the the weighted average statutory tax rate of approximately 33%, previous period and reached 42.4% as of December 2020. The largely due to the profit mix between various OPCOs and higher data customer base growth of 23.6% was a result of expansion of withholding tax on dividend declared. The adjusted effective tax the 4G network, with 82% of total sites now on 4G. Data usage per rate was 43% compared to 39% in the previous period, largely as customer increased by 49.2% and data revenue accounted for a result of recognition of higher deferred tax credit of $43m in DRC 35.1% of total revenue in the nine-month period, up by 3.5pp from in the prior period as against $14 Mn in Tanzania during the nine- 31.6% in previous period. month period ended 31 December 2020. EBITDA grew by 13.6% in reported currency, with constant currency growth of 21.7%. EBITDA margin during the period was An exceptional gain of $28 Mn in December 2020 consisted of (i) almost flat compared with the previous period. The slight drop in a one-time benefit of $20 Mn on account of a settlement in Niger Q3 EBITDA margin is due to increased operating expenses as a (Airtel Niger signed an IRU (Indefeasible Right of Use) deal with a result of higher new sites rollout (1600+ additional sites during the Niger telecommunications operator, and as part of the commercial period). agreement the receivables from the operator for prior periods have

Page 25 of 60

Capital expenditure was broadly stable at $178 Mn. Operating free accelerated significantly to 18.9% in reported currency and 15.0% cash flow was $430 Mn, up by 34.2%, largely as a result of the in constant currency. growth in EBITDA. Voice revenue was almost flat in reported currency for the nine- 6.4.3.2 East Africa month period ended December 2020. However, Q3’21 voice revenue grew by 9.6% in reported currency and 5.6% in constant Performance in East Africa continued to be strong with 14.9% currency. This was driven by customer base growth of 9.7% offset revenue growth in reported currency and 23.4% in constant by a decline in Voice ARPU of 3.2%. The Voice ARPU trend currency. Revenue growth in Q3’21 accelerated to 16.3% in reflects reductions in interconnect rates in Gabon and Chad and reported currency, and 26% in constant currency, supported by roaming revenues. Total voice minutes on the network grew by growth across all key business segments, but particularly mobile 28% in Q3 year on year. money. Constant currency revenue growth was partially offset by currency devaluation, mainly in Zambia and Kenya. Data revenue increased by 31.4% in constant currency, driven by customer growth of 29.6% and data ARPU growth of 1.8%. Voice revenue amounted to $486 Mn, with growth of 7.3% in Smartphone penetration increased by 4pp and reached 29.3%. reported currency and 15.4% in constant currency, driven by Data usage per customer increased from 1.2GB per customer to customer base growth of 11.1% and voice ARPU growth of 2%. 1.9GB per customer. As a result, total data usage more than Total minutes on the network were up 35.7%, led by a 20% doubled and data usage per customer was up 60.7%. The data increase in voice usage per customer and customer base growth. customer base growth of 29.6% was due to expansion of our 4G In Q3’21 voice revenue was up 11.1% in reported currency and network, with 59% of total sites now on 4G, and the success of our 20.4% in constant currency. “More for More” bundle offerings driving data uptake by customers. Data revenue was $262 Mn, up 25.1% year on year in constant Mobile money revenue for the nine-month period was $79 Mn, with currency. This was driven by data customer base growth of 21.2% constant currency growth of 13.9%. This was largely driven by a and a data ARPU increase of 2%. Growth was recorded across all 32.3% increase in the mobile money customer base supported by OPCOs, driven by expansion of our network infrastructure, with the expansion of our distribution network through more agents, 72% of sites now on 4G, compared with 64% during the previous kiosks and Airtel Money branches. period. Data usage per customer reached 2.6GB per customer, up 45.4% from 1.8GB per customer in the prior period. Total data EBITDA margin was 36.1% during the period, an improvement of usage on our network grew 78.4% year on year. 1.6pp in constant currency. Q3’21 EBITDA margin at 41.7%, an improvement of 4.3pp in constant currency driven by revenue During the period “Pay as you Go tariffs” in certain markets were growth and opex efficiency. updated and this resulted in a revenue reallocation of bundled products of voice and data in such tariffs. On a like for like basis Capital expenditure during the period was $56 Mn. This is almost voice and data revenue growth was 11.1% and 33.8% half the level of the previous period due to a significant network respectively. modernisation programme last year. Operating free cash flow was at $198 Mn, up 51.7% as a result of an improvement in EBITDA Mobile money revenue grew 47% in constant currency, largely and lower capital expenditure. from growth in Zambia, Tanzania, Uganda and Malawi. This was driven by 28.5% customer base growth and 27% growth in the 6.4.4 Product wise Africa transaction value per customer, due to expansion of our distribution network. Mobile money ARPU grew by 15.1% in the 6.4.4.1 Mobile services: nine-month period. Q3’21 mobile money revenue grew 54.1% with 28.5% growth in the customer base and mobile money ARPU Mobile services revenue increased by 11.5% on a reported basis growth of 20.2% in constant currency. and by 17% in constant currency, with both voice and data revenue contributing to revenue growth. EBITDA margin was 45.2%, an improvement of 4.8pp in reported currency and 5.0pp in constant currency, due to accelerated Voice revenue increased by 5.3% in reported currency and 10.4% growth in revenue and efficiency improvement in operating in constant currency, driven by customer base growth of 11% as a expenses. result of the expansion of the distribution network and network infrastructure, partially offset by a slight decline in voice ARPU by Capital expenditure was $168 Mn, up 39.3% as a result of planned 1.3%. Voice usage per customer increased by 17.4% resulting in network expansion. Operating free cash flow was $295 Mn, up by overall minutes growth of 31.3%. In Q3’21 voice revenue grew by 38.6% due largely to the improvement in EBITDA. 16.9% with an improved performance across all regions.

6.4.3.3 Francophone Africa Data revenue was up by 31.1% in constant currency in the nine- month period, largely driven by an increase in the data customer Performance in Francophone Africa improved strongly, with base and data usage growth. Our data customer base grew 23.5% reported revenue growth of 9.4% and constant currency growth of supported by continued expansion of our 4G network (with 74% of 8.0%. Reported currency growth was higher than constant sites now on 4G), increased smartphone penetration by 1.7pp, and currency growth due to appreciation in the value of the Central an increase in data ARPU of 7.0%. 34.2% of our total customer African and West Africa franc. Performance across the region was base are now data customers, up from 30.7% in the prior nine- mixed, with revenue growth in Democratic Republic of the Congo month period. Data usage per customer per month was 2.6GB, up (DRC), Gabon, Niger and Chad partially offset by marginal decline 48.4% year on year, largely driven by our 4G network expansion in a few countries in the region. For Q3’21 revenue growth and increasingly popular data bundle offerings. Total data usage

Page 26 of 60

was up 81.9% driven by increase in both customer base and data It also introduced additional mobile money services, including usage per customer. Growing penetration on our 4G network merchant and commercial payments, benefits transfers, loans and helped drive data ARPU growth up 7%, with 4G data usage more savings, building international money transfer services through than doubling and contributing 59% to total data usage on the partnerships. Our mobile money customer base reached 21.5 network in Q3’21. million, up 29% over the previous period, with Airtel Money customers now representing 18% of our total customers, an For the nine-month period data revenue contributed 29.5% to total increase of 2.5pp. Group revenue, up from 26.8% in the previous period. Reported revenue grew by 17.2%, whereas constant currency 6.4.4.2 Mobile Money revenue grew by 22.8%, which was partially offset by currency devaluation. Constant currency revenue growth was largely driven Mobile money revenue amounted to $291 Mn, up 27.8% in by 11.0% increase in the customer base, to 118.9 Mn, and a reported currency and up 34.2% in constant currency. The latter increase in ARPU by 9.3% to $ 2.9. Revenue growth was recorded was driven by 29% growth in the customer base and transaction across all the regions: Nigeria up 24.1%, East Africa up 26.0% and value growth of 51.6%. Growth in the customer base was largely Francophone Africa up 15.0% and services with voice revenue up driven by the expansion of our distribution network, as we 16.9%, data revenue up 27.0% and mobile money revenue up continued to invest in exclusive kiosks and mobile money 41.1% in constant currency terms. branches. Throughout the period, the expansion of our mobile money product portfolio, through various partnerships with leading For the quarter, EBITDA in reported currency was $ 485 Mn, up financial institutions, and the expansion of our merchant 21.7% and 28.3% in constant currency terms. EBITDA growth ecosystem have further strengthened our mobile money largely driven by revenue growth of 22.8% in constant currency propositions. and efficiencies in operating expense. EBITDA margin was at 46.9%, an improvement of 2.0pp in constant currency. EBITDA amounted to $142 Mn for the period, an increase of 28.3% in reported currency and 34.1% in constant currency. The On reported basis, Profit after Tax before exceptional item and EBITDA margin was 48.7%, broadly stable with the previous minority interest was $ 91 Mn, an increase of 25% compared to period. The growth in total transaction value of 51.6% in constant the prior year. currency was driven by customer base growth of 29% and 18.6% growth in transaction value per customer per month. The Q3’21 Capital expenditure during the quarter was $ 188 Mn. annualised transaction value reached $52bn and mobile money Operating Free Cash Flow was $ 298 Mn, up 19.6% in Reported revenue now accounts for 10.2% of total revenue. Currency, mainly as a result of growth in EBITDA by 21.7%.

Our mobile money customer base reached 21.5 million, up 29% 6.5.2 Segment Wise – Africa over the previous period, with Airtel Money customers now representing 18% of our total customers, an increase of 2.5pp. 6.5.2.1 Nigeria Mobile money ARPU was up 5.1%, driven by the increase in transaction values and a higher contribution from merchant Reported revenue in Nigeria grew by 15.9% whereas constant payments, cash out, P2P transfer and recharge of mobile services currency growth was 24.1%, which was as a result of Nigerian through Airtel Money. naira devaluation by 7.9% (YoY). The revenue growth was largely driven by voice revenue growth of 19.4% and sustained growth in Results for the Quarter ended December 31, 2020 data with revenue up 30.2% in constant currency.

6.5.1 Airtel Africa Consolidated Voice revenue growth of 19.4% was supported by 11.5% growth in customer base which was driven by expansion of our distribution As on 31 Dec 2020, the group had an aggregate customer base of network as well as network infrastructure. 118.9 Mn as compared to 107.1 Mn in the corresponding quarter last year, an increase of 11.0%. Total minutes on network during Data revenue growth of 30.2% in constant currency was supported the quarter registered a growth of 31.6% to 85.7 bn as compared by 23.6% growth in data customers and 3.3% growth in data to 65.1 bn in the corresponding quarter last year. ARPU. Data customer penetration was up by 4.1pp from the previous period and reached 42.4% as of December 2020. The Data customers increased by 7.7 Mn to 40.6 Mn as compared to data customer base growth of 23.6% was a result of the expansion 32.9 Mn in the corresponding quarter last year. Increase in data of 4G network, with 82% of total sites now on 4G. The total data subscribers was mainly led by increase in smartphone penetration, usage on our network grew by 64.6%. Data usage per customer up 1.7pp to 32.7%, and expansion of 4G network (74% of the total was up by 30.6%. sites are now on 4G). Total MBs on the network grew by 68.9% to 320.6 bn MBs as compared to 189.8 bn MBs in the corresponding EBITDA margin in constant currency at 53.8%, YoY decrease of quarter last year. Data usage per customer during the quarter was 0.9pp in EBITDA margin which is mainly due to increased at 2,653 MBs as compared to 1,967 MBs in the corresponding operating expenses as a result of higher new sites rollout (1600+ quarter last year, an increase of 34.9%. additional sites during the period).

Mobile Money revenue in constant currency grew by 41.1% driven During the period, capital expenditure was $ 81 Mn. by customer growth of 29.0% and transaction value growth of 62.0%. The Group continued to expand the distribution network Operating Free Cash Flow was $ 140 Mn, up 8% in Reported through kiosks, mini shops and dedicated Airtel Money branches. Currency, largely as a result of EBITDA growth.

Page 27 of 60

6.5.2.2 East Africa 6.5.3 Product wise Africa

Reported revenue in East Africa grew by 16.3%, whereas constant 6.5.3.1 Mobile services currency growth was 26.0%, which was partially offset by currency devaluation, mainly in Zambia and Kenya. Revenue growth of Reported mobile services revenue was up by 14.7%, with 20.2% 26.0% in constant currency was driven by growth across all growth in constant currency, with both voice and data revenue services with voice revenue up by 20.4%, data revenue up by contributing to mobile services revenue growth. 17.2% and mobile money revenue up by 54.1%. Voice revenue in constant currency grew by 16.9%, driven by Voice revenue was up by 20.4%, largely driven by customer customer base growth of 11%, as a result of the expansion of the growth of 11.1% and voice usage per customer up by 19.7%. distribution network and network infrastructure, voice ARPU in constant currency increased by 4.0%. Total minutes grew by Data revenue increased 17.2%, driven by the increase in data 31.6% as a result of the increase in voice usage per customer by customer base, up 21.2% and increase in data usage per 17.1%. customer, up 39.4%. Growth was recorded across all OPCOs, driven by the expansion of network infrastructure, with 71.8% of Data revenue grew by 27.0% in constant currency, supported by the sites now on our 4G network as compared to 64.4% during the data customer base growth of 23.5%, increase in data ARPU by previous period. Our mobile network in Zambia, Malawi and 1.5% and the accelerated 4G network rollout. Data customer base Uganda now consists of 100% of 4G sites. was 34.2% of our total customer base, from 30.7% compared to the previous period. Total data usage was up by 68.9% driven by Mobile Money revenue increased by 54.1% supported by increase both customer base increase of 23.5% and 34.9% growth in data in customer base by 28.5% and transaction value per customer up usage per customer. by 32.3%. We continued to expand our Mobile Money distribution network (Agents, Kiosks and Airtel Money Branches). 6.5.3.2 Mobile Money

EBITDA margin in constant currency at 46.5%, improved by 6.3pp Reported mobile money revenue was $110 Mn, up 34.0%, with a as a result of revenue growth and cost efficiencies. constant currency growth of 41.1%.

Capital expenditure during the period was $ 87 Mn. The revenue growth of 41.1% was driven by a customer base Operating free cash flow was at $ 83 Mn, up by 26.3% in Reported growth of 29.0% and a 62.0% growth in transaction value. Currency as a result of improvement in EBITDA. The mobile money customer base grew to 21.5 Mn, up 29.0% over 6.5.2.3 Francophone Africa the previous period, with Airtel Money customers representing 18.0% of our total customers. Mobile money ARPU was up 9.7%, Reported revenue grew by 18.9%, whereas constant currency Growth in the customer base was largely driven by the expansion growth was 15.0%. Revenue growth was driven by all products of our distribution network, as we continued to invest in exclusive that is voice, data and mobile money kiosks and mobile money branches. Throughout the period, the expansion of our mobile money product portfolio, through various Voice revenue increased by 5.6% largely due to a reduction in partnerships with leading financial institutions, and the expansion interconnect charges in few markets as well as decrease in of our merchant ecosystem have further strengthened our mobile international and roaming revenue. Total minutes on network grew money propositions. by 28.0% while voice usage per customer was up by 17.3%. EBITDA amounted to $ 53.5 Mn, an increase of 33.3% in reported Data revenue grew by 35.8% in constant currency, supported by currency and 39.6% in constant currency. EBITDA margin in data customer base growth of 29.6%. Additionally, smartphone reported currency was at 48.7%. penetration increased by 4.0pp to reach 29.3%. Total data usage grew by 88% and data usage per customer was up 41.9%.

Mobile money revenue grew by 16.1% largely driven by 32.3% growth in mobile money customer base supported by the expansion of our distribution network through increase in agents, kiosks and Airtel Money branches.

EBITDA margin in constant currency at 41.8%, increased by 4.3pp. The increase in EBITDA margin was largely due to revenue growth in OPEX efficiency.

Capital expenditure during the period was $ 20 Mn,

Operating free cash flow was at $ 88 Mn, up by 54.0% in Reported Currency as a result of improvement in EBITDA.

Page 28 of 60

SECTION 7

DETAILED FINANCIAL AND RELATED INFORMATION

7.1 Summarized extracts from interim unaudited condensed consolidated financial statements prepared under IAS 34 for the nine months ended 31 December 2020 and audited consolidated financial statements for the year ended 31 March 2020 prepared in accordance with IFRS.

7.1.1 Consolidated Statement of Comprehensive Income Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Income Revenue 1,055 883 19% 2,870 2,522 14% Other income 2 4 (60%) 10 15 (32%) 1,057 887 19% 2,880 2,537 14% Expenses Netw ork operating expenses 181 162 12% 511 459 11% Access Charges 102 98 4% 279 282 (1%) License fee / spectrum usage charges 50 44 13% 145 138 5% Employee benefits expense 66 61 8% 208 172 21% Sales and marketing expenses 51 19 172% 138 102 35% Impairment loss/(reversal) on financial assets 6 (3) 293% 8 (1) 755% Other expenses 97 81 19% 286 247 16% Depreciation and amortisation 176 163 8% 505 481 5% 729 625 17% 2,080 1,880 11% Operating profit 328 262 25% 800 657 22%

Finance costs 131 86 51% 325 296 10% Finance income (3) (10) 73% (7) (70) 90% Non-operating income - - - (70) 100% Share of profit of associate 0 0 (84%) (0) (0) (428%) Profit before tax 200 186 8% 482 501 (4%) Income Tax expense 84 83 2% 221 170 30%

Profit for the period 116 103 13% 261 331 (21%)

Profit before tax (as presented above) 200 186 8% 482 501 (4%) Add: Exceptional items (net) (20) (18) (12%) (14) (65) 79% Underlying profit before tax 180 168 8% 468 436 7%

Profit after tax (as presented above) 116 103 13% 261 331 (21%) Add: Exceptional items (net) (25) (30) 16% (28) (104) 73% Underlying profit after tax 91 73 25% 233 227 3% Exceptional items are included within their respective heads. Revenue in above table includes one-time exceptional revenue of $20 Mn relating to a settlement in Niger in the nine months and the three month periods to 31 December 2020.

Page 29 of 60

7.1.2 Consolidated Statement of Comprehensive Income Amount in US$ Mn, except ratios Quarter Ended Nine Months Ended Particulars Y-on-Y Y-on-Y Dec-20 Dec-19 Dec-20 Dec-19 Change Change Other comprehensive income ('OCI') Items to be reclassified subsequently to profit or loss: Net loss due to foreign currency translation differences (73) (9) (714%) (44) (32) (36%) Net( loss)/gain on net investments hedge (9) (4) (146%) (20) 3 (713%) Net gain on cash flow hedge - 4 (100%) - 0 (100%) (82) (9) (820%) (64) (29) (123%) Items not to be reclassified subsequently to profit or loss: Re-measurement (loss)/gain on defined benefit plans 0 2 (68%) (0) 1 (100%) Tax credit/(expense) on above (0) (0) 95% 0 (0) 110% 0 2 (67%) (0) 1 (100%)

Other comprehensive income/(loss) for the period (82) (7) (1,001%) (64) (28) (131%)

Total comprehensive income for the period 34 96 (64%) 197 303 (35%)

Profit for the period attributable to: 116 103 13% 261 331 (21%) Ow ners of the Company 95 90 5% 206 305 (32%) Non-controlling interests 21 13 70% 55 26 113% Other comprehensive income/(loss) for the period attributable to: (82) (7) (1,037%) (64) (28) (128%) Ow ners of the Company (80) (20) (294%) (60) (40) (49%) Non-controlling interests (2) 13 (117%) (4) 12 (131%) Total comprehensive income for the period attributable to: 34 96 (64%) 197 303 (35%) Ow ners of the Company 15 70 (78%) 146 265 (45%) Non-controlling interests 19 26 (25%) 51 38 33%

Earnings per share Basic 2.5c 2.4c 5.5c 8.6c Diluted 2.5c 2.4c 5.5c 8.6c

Page 30 of 60

7.1.3 Consolidated Summarized Financial Position Amount in US$ Mn As at As at Particulars Dec 31, 2020 Mar 31, 2020 Assets Non-current assets Property, plant and equipment 1,985 1,832 Capital w ork-in-progress 207 259 Right of use assets 772 639 Goodw ill 3,916 3,943 Other intangible assets 586 456 Intangible assets under development 5 30 Investment in associate 3 3 Financial Assets - Investments 0 0 - Derivative instruments 0 0 - Security deposits 8 7 - Others 7 1 Income tax assets (net) 42 39 Deferred tax assets (net) 299 333 Other non-current assets 102 112 7,932 7,654 Current assets Inventories 6 3 Financial Assets - Derivative instruments 10 10 - Trade receivables 106 132 - Cash and cash equivalents 1,168 1,010 - Other Bank balance 7 6 - Balance held under mobile money trust 438 295 - Others 69 66 Other current assets 161 149 1,965 1,671 Total Assets 9,897 9,325

Current liabilities Financial Liabilities - Borrow ings 351 235 - Current maturities of long-term borrow ings 1,241 429 - Lease liabilities 225 199 - Derivative instruments 4 3 - Trade payables 373 416 - Mobile money w allet balance 433 292 - Others 363 461 Provisions 66 70 Deferred revenue 148 124 Current tax liabilities (net) 136 144 Other current liabilities 154 115 3,494 2,488 Net current liability (1,529) (817)

Non-current liabilities Financial Liabilities - Borrow ings 1,851 2,446 - Lease liabilities 1,034 970 - Derivative instruments 4 4 - Others 94 15 Provisions 26 23 Deferred tax liabilities (net) 77 69 Other non-current liabilities 24 29 3,110 3,556 Total liabilities 6,604 6,044

Net Assets 3,293 3,281 Equity Share capital 3,420 3,420 Retained earnings 2,842 2,805 Other reserve (2,900) (2,837) Equity attributable to ow ners of the company 3,362 3,388 Non-controlling interests ('NCI') (69) (107) Total equity 3,293 3,281

Page 31 of 60

7.1.4 Consolidated Summarized Statement of Cash Flows

Nine Months Ended Particulars Dec-20 Dec-19 Cash flow s from operating activities Profit before tax 482 501 Adjustments for - Depreciation and amortisation 505 481 Finance income (7) (70) Finance cost 325 296 Share of profit of associate (0) (0) Non-operating income adjustments - (70) Other adjustments (1) (13) (35) Operating cash flow before changes in w orking capital 1,292 1,103 Changes in w orking capital Increase in trade receivables (3) (7) Increase in inventories (3) (1) Decrease in trade payables (44) (16) Increase in mobile money w allet balance 141 69 (Decrease)/Increase in provisions (3) 4 Increase in deferred revenue 24 19 Decrease in income received in advance (1) (9) Increase in other financial and non financial liabilities 8 8 Increase in other financial and non financial assets (28) (19) Net cash generated from operations before tax 1,383 1,151 Income taxes paid (166) (95)

Net cash generated from operating activities (a) 1,217 1,056 Cash flow s from investing activities Purchase of property, plant and equipment and capital w ork-in-progress (485) (548) Purchase of intangible assets (79) (38) Interest received 12 22 Net cash used in investing activities (b) (552) (564) Cash flow s from financing activities Proceeds from issue of shares to ow ners of the Company - 680 Proceeds from sale of shares to non-controlling interests - 3 Acquisition of non-controlling interests (3) - Purchase of ow n shares by ESOP trust (0) - Payment of share issue expenses - (17) Proceeds from borrow ings 362 169 Repayment of borrow ings (209) (341) Repayment of lease liabilities (146) (137) Dividend paid to non-controlling interests (9) - Dividend paid to ow ners of the Company (169) (113) Interest and other finance charges paid (248) (247) Share stabilisation proceeds - 7 Proceeds from cancellation of derivatives - 122 Payment on maturity of derivatives (3) - Net cash (used) in/generated from financing activities (c) (425) 126 Increase in cash and cash equivalents during the period (a+b+c) 240 618 Currency translation differences relating to cash and cash equivalents (14) 2

Cash and cash equivalents as at beginning of the period 1,087 870 (2) Cash and cash equivalents as at end of the period 1,313 1,490

(1) For the period ended 31 December 2020, this includes $ 20 Mn on account of service revenues, which represents recognition of revenues pertaining to earlier years on a cumulative catch-up basis, arising out of a settlement agreement entered with a customer in one of the group’s subsidiaries. For the period ended 31 December 2019, this includes impact relating to previous periods of $ 27 Mn on deferment of customer acquisition costs following reassessment of customer life.

(2) Includes balance held under mobile money trust of $ 438 Mn (December 2019: $ 307 Mn) on behalf of mobile money customers which are not available for use by the group. Starting 31 March 2020, the group considers balance held under mobile money trust to be cash and cash equivalent. Consequent reclassification have been made to the cash flow statement for the nine months ended 31 December 2019.

Page 32 of 60

7.2 Use of Alternative performance measures (APM) Financial Information

In presenting and discussing the Group’s reported financial position, operating results and cash flows, certain information is derived from amounts calculated in accordance with IFRS, but this information is not in itself an expressly permitted GAAP measure. Such Alternative performance measures (APM) should not be viewed in isolation as alternatives to the equivalent GAAP measures, if any.

A summary of Alternative performance measures (APM) included in this report, together with details where additional information and reconciliation to the nearest equivalent GAAP measure can be found, is shown below.

Location in this results announcement Alternative performance measures (APM) Equivalent GAAP measure for IFRS of reconciliation and further information

Revenue Revenue (as reported in IAS 34 table 7.1.1) Page 33

Earnings before Interest, Taxation, Depreciation and Operating profit Page 33 Amortization (EBITDA) Underlying Operating Expenses Expenses Page 34

Finance Cost (net) Finance Cost and Finance Income Page 34

Profit / (loss) before tax (before exceptional item) Profit / (Loss) Before Tax Page 34

Profit / (loss) after tax (before exceptional item) Profit / (loss) after tax Page 34

Cash Profit from Operations before Derivative & Profit from operating activities Page 35 Exchange (Gain)/Loss Effective tax rate and adjusted Effective tax rate Reported Tax Rate Page 35

Capital Expenditure (Capex) Refer glossary NA

Operating free cash flow Refer glossary NA

Capital Employed Refer glossary NA

7.2.1 Reconciliation between GAAP and Alternative performance measures (APM)

7.2.1.1: Revenue

Nine Months Ended Particulars UoM Dec-20 Dec-19 Revenue (as reported in IAS 34 table 7.1.1) US$ Mn 2,870 2,522 Less: Exceptional items US$ Mn (20) Revenue US$ Mn 2,850 2,522 Exceptional item in above table is $ 20 Mn (in reported currency) relating to a settlement in Niger in the nine-month period to 31 December 2020

7.2.1.2: EBITDA and Margin

Nine Months Ended Particulars UoM Dec-20 Dec-19 Operating profit US$ Mn 800 657 Add: Depreciation and amortization US$ Mn 505 481 Charity and donation US$ Mn 6 4 Exceptional items US$ Mn (14) (24) EBITDA US$ Mn 1,297 1,118 Revenue US$ Mn 2,850 2,522 EBITDAMargin (%) US$ Mn 45.5% 44.3%

Page 33 of 60

7.2.1.3: Underlying Operating Expenditure

Nine Months Ended Particulars UoM Dec-20 Dec-19 Expenses US$ Mn 2,080 1,880 Less: Access charges US$ Mn (279) (282) Depreciation and amortization US$ Mn (505) (481) Charity and donation US$ Mn (6) (4) Exceptional items US$ Mn (6) 24 Underlying Operating Expenditure US$ Mn 1,284 1,137

7.2.1.4: Finance Cost (net)

Nine Months Ended Particulars UOM Dec-20 Dec-19 Finance cost US$ Mn 325 296 Finance income US$ Mn (7) (70) Exceptional items US$ Mn 0 0

Finance cost (net) US$ Mn 318 225

7.2.1.5: Profit / (Loss) Before Tax

Nine Months Ended Particulars UoM Dec-20 Dec-19 Profit / (loss) for the year Before Tax US$ Mn 482 501 Exceptional items US$ Mn (14) (65) Profit / (loss) before tax (before exceptional item) US$ Mn 468 436

7.2.1.6: Profit / (Loss) After Tax

Nine Months Ended Particulars UoM Dec-20 Dec-19 Profit / (loss) after tax US$ Mn 261 331 Exceptional items US$ Mn (28) (104) Profit / (loss) after tax (before exceptional item) US$ Mn 233 227

7.2.1.7: Operating Free Cash Flow

Nine Months Ended Particulars UoM Dec-20 Dec-19 Net Cash Generated from Operating Activities US$ Mn 1,217 1,056 Add: Income tax paid US$ Mn 166 95 Cash Generation from Operation before tax US$ Mn 1,383 1,151 Less: Changes in working capital US$ Mn 92 48 Operating cash flow before changes in working capital US$ Mn 1,292 1,103

Other adjustments US$ Mn 13 35 Charity and donation US$ Mn 6 4 Exceptional items US$ Mn (14) (24) EBITDA US$ Mn 1,297 1,118 Less: Capital Expenditure US$ Mn (403) (396) Operating Free Cash Flow US$ Mn 894 722

Page 34 of 60

7.2.1.8: Cash Profit from Operations before Derivative and Exchange Fluctuation

Nine Months Ended Particulars UOM Dec-20 Dec-19 Operating profit US$ Mn 800 657 Finance cost (net) US$ Mn (318) (225) Depreciation and Amortisation US$ Mn 505 481 Derivatives and exchange (gain)/loss US$ Mn 81 (4) Exceptional items US$ Mn (14) (24) Cash Profit from Operations before Derivative and US$ Mn 1,053 885 Exchange Fluctuation

7.2.1.9: Effective tax rate and adjusted Effective tax rate

Nine Months Ended Dec-20 Dec-19 Particulars UoM Profit before Income tax Profit before Income tax Tax Rate % Tax Rate % taxation expense taxation expense Reported Effective tax rate US$ Mn 482 221 45.9% 501 170 34.0%

Adjusted for : Exceptional Items (provided below ) US$ Mn (14) 14 (65) 39 Foreign exchange rate movements for non-DTA US$ Mn 58 (27) operating companies & holding companies One-off tax adjustment US$ Mn 3 Tax on Permanent Difference (net) US$ Mn 1 (6) Effective tax rate US$ Mn 526 239 45.5% 409 203 49.7% Deferred tax trigerred during the period US$ Mn (14) (43) Adjusted effective tax rate US$ Mn 526 225 42.8% 409 160 39.2% Exceptional items 1. Deferred tax asset recognition US$ Mn (14) (43) 2. Netw ork modernisation US$ Mn 27 (2) 3. Employee restructuring US$ Mn 6 4. Service revenues US$ Mn (20) 5. Reversal of indemnities US$ Mn (72) 6. Share issue and IPO related expenses US$ Mn 6 7. Finance Cost US$ Mn 1 8. Customer acquisition cost US$ Mn (27) 6 Total US$ Mn (14) (14) (65) (39)

Page 35 of 60

SECTION 8

NET DEBT AND COST SCHEDULES

8.1 Consolidated Schedule of Net Debt Amount in US$ Mn As at As at Particulars Dec 31, 2020 Mar 31, 2020 Long term borrow ing, net of current portion 1,834 2,424 Short-term borrow ings and current portion of long-term borrow ing 1,593 664

Less: Cash and Cash Equivalents 1,168 1,010 Net Debt excluding Lease Obligations 2,259 2,078 Lease Obligations 1,259 1,169

Net Debt including Lease Obligations 3,518 3,247

8.2 Consolidated Schedule of Net Finance Cost (in Reported Currency)

Amount in US$ Mn Quarter Ended Nine Months Ended Particulars Dec-20 Dec-19 Dec-20 Dec-19

Interest on borrow ings and Finance charges 51 48 144 156 Interest on Lease Obligation 34 32 101 96 Investment (income)/ loss (3) (8) (7) (22) Finance cost excluding Derivatives and Forex 82 72 237 229 Add : Derivatives and exchange (gain)/ loss 46 5 81 (4)

Finance cost (net of Derivatives and Forex) 128 76 318 225

8.3 Consolidated Schedule of Operating Expenses (in Constant Currency)

Amount in US$ Mn Quarter Ended Nine Months Ended Particulars Dec-20 Dec-19 Dec-20 Dec-19

Access charges 103 93 281 269 Cost of goods sold 51 36 136 97 License fee / spectrum charges (revenue share) 50 43 145 133 Netw ork operations costs 180 155 512 429 Employee benefits expense 68 63 207 179 Selling, general and adminstration expense 102 80 293 258 Operating Expenses 554 471 1,573 1,365

Closing currency rates as on March 31, 2020 considered for Constant currency.

Page 36 of 60

8.4 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Constant Currency) Amount in US$ Mn Quarter Ended Nine Months Ended Particulars Dec-20 Dec-19 Dec-20 Dec-19 Depreciation 148 128 424 376 Amortization 28 20 81 60

Depreciation and Amortization 176 148 505 435 Closing currency rates as on March 31, 2020 considered for Constant currency.

8.5 Consolidated Schedule of Operating Expenses before exceptional item (in Reported Currency)

Amount in US$ Mn Quarter Ended Nine Months Ended Particulars Dec-20 Dec-19 Dec-20 Dec-19

Access charges 102 98 279 282 Cost of goods sold 50 38 135 103 License fee / spectrum charges (revenue share) 50 44 145 138 Netw ork operations costs 179 161 510 448 Employee benefits expense 68 65 207 184 Selling, general and adminstration expense 102 83 293 268

Operating Expenses 552 489 1,569 1,423

8.6 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Reported Currency)

Amount in US$ Mn Quarter Ended Nine Months Ended Particulars Dec-20 Dec-19 Dec-20 Dec-19 Depreciation 148 132 424 391 Amortization 29 20 81 62

Depreciation and Amortization 176 153 505 453

8.7 Consolidated Schedule of Income Tax before exceptional item (in Reported Currency) Amount in US$ Mn Quarter Ended Nine Months Ended Particulars Dec-20 Dec-19 Dec-20 Dec-19 Current tax expense 63 62 165 133 Deferred tax expense / (income) 26 32 70 77

Income tax expense 89 95 235 210

Page 37 of 60

SECTION 9

TRENDS AND RATIO ANALYSIS

9.1 Based on Statement of Operations

9.1.1 Consolidated Statement of Operations: (in Reported Currency)

Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Revenue 1,034 965 851 899 883 Access charges 102 93 84 94 98 Cost of goods sold 50 48 37 39 38 Net revenues 882 824 729 766 747 Operating Expenses (Excl Access Charges, cost of 349 345 310 321 308 goods sold and License Fee) Licence Fee 50 47 48 51 44 EBITDA 485 437 375 397 399 Cash Profit from operations before Derivative and 402 357 295 325 326 Exchange Fluctuations EBIT 308 269 210 244 245 Share of results of associate 0 (0) (0) (0) 0 Profit before Tax 180 177 111 97 167 Profit after Tax (before exceptional items) 91 92 50 70 73 Non Controlling Interest (before exceptional items) 17 17 12 12 10 Net Income (before exceptional items) 74 75 38 57 63 Exceptional items (net) (25) 4 (7) (7) (30) Profit after Tax (after exceptional items) 116 88 57 77 103 Non Controlling Interest 21 18 15 12 13 Net Income 95 70 42 65 90 Capex 188 149 66 246 150 Operating Free Cash Flow (EBITDA - Capex) 298 287 309 151 249 Total Capital Employed 6,811 6,777 6,636 6,528 6,595

Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 As a % of Revenue Access charges 9.9% 9.6% 9.9% 10.5% 11.1% Cost of goods sold 4.8% 5.0% 4.4% 4.3% 4.3% Net revenues 85.3% 85.4% 85.7% 85.2% 84.6% Operating Expenses (excluding access charges, 33.7% 35.7% 36.5% 35.7% 34.9% cost of goods sold and license fee) Licence Fee 4.8% 4.9% 5.6% 5.7% 5.0% EBITDA 46.9% 45.3% 44.1% 44.1% 45.2% Cash Profit from operations before Derivative and 38.9% 37.0% 34.6% 36.1% 36.9% Exchange Flucations EBIT 29.8% 27.8% 24.7% 27.2% 27.7% Share of results of associate 0.0% (0.0%) (0.0%) (0.0%) 0.0% Profit before Tax 17.4% 18.3% 13.1% 10.8% 18.9% Profit after Tax (before exceptional items) 8.8% 9.5% 5.9% 7.8% 8.2% Non Controlling Interest (before exceptional items) 1.7% 1.7% 1.4% 1.4% 1.1% Net Income (before exceptional items) 7.1% 7.7% 4.5% 6.4% 7.1% Exceptional items (net) (2.4%) 0.4% (0.8%) (0.8%) (3.4%) Profit after Tax (after exceptional items) 11.2% 9.1% 6.7% 8.6% 11.6% Non Controlling Interest 2.1% 1.8% 1.8% 1.4% 1.4% Net Income 9.1% 7.3% 4.9% 7.2% 10.2%

Page 38 of 60

9.1.2 Consolidated Statement of Operations: (in Constant Currency)

Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Revenue 1,038 963 856 870 845 Access charges 103 93 85 91 93 Cost of goods sold 51 48 37 37 36 Net revenues 885 822 733 742 716 Operating Expenses (Excl Access Charges, cost of 350 343 312 313 297 goods sold and License Fee) Licence Fee 50 47 48 50 43 EBITDA 487 436 377 382 380 EBIT 309 269 211 233 231 Capex 188 149 66 246 150 Operating Free Cash Flow (EBITDA - Capex) 299 287 310 136 230

Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 As a % of Revenue Access charges 9.9% 9.7% 9.9% 10.4% 11.1% Cost of goods sold 4.9% 5.0% 4.4% 4.3% 4.3% Net revenues 85.2% 85.4% 85.7% 85.3% 84.7% Operating Expenses (excluding access charges, 33.7% 35.7% 36.5% 36.0% 35.2% cost of goods sold and license fee) Licence Fee 4.8% 4.9% 5.6% 5.8% 5.1% EBITDA 46.9% 45.3% 44.0% 43.9% 44.9% EBIT 29.8% 27.9% 24.7% 26.8% 27.3%

Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 39 of 60

9.2 Based on Segment Wise Statement of Operations

9.2.1 Nigeria

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 412 377 341 377 355 EBITDA 221 204 182 209 194 EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7% EBIT 159 141 130 163 146 Capex 81 67 30 145 64 Operating Free Cash Flow (EBITDA - Capex) 140 137 152 64 130

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 414 379 343 359 334 EBITDA 223 205 183 199 183 EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7% EBIT 160 142 130 154 138 Capex 81 67 30 145 64 Operating Free Cash Flow (EBITDA - Capex) 142 138 153 54 119 Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 40 of 60

9.2.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 364 355 305 310 313 EBITDA 170 163 129 125 127 EBITDA / Revenue 46.8% 46.0% 42.4% 40.3% 40.5% EBIT 113 110 74 70 70 Capex 87 62 19 61 61 Operating Free Cash Flow (EBITDA - Capex) 83 101 110 64 66

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 374 358 306 299 297 EBITDA 174 164 130 120 120 EBITDA / Revenue 46.5% 45.8% 42.3% 40.2% 40.2% EBIT 115 110 74 67 65 Capex 87 62 19 61 61

Operating Free Cash Flow (EBITDA - Capex) 87 102 110 60 59 Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 41 of 60

9.2.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 259 236 209 215 218 EBITDA 108 73 74 70 82 EBITDA / Revenue 41.7% 30.8% 35.1% 32.7% 37.5% EBIT 51 23 25 24 32 Capex 20 20 16 40 24 Operating Free Cash Flow (EBITDA - Capex) 88 53 58 31 57

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 249 230 211 215 217 EBITDA 104 71 74 70 81 EBITDA / Revenue 41.8% 30.9% 35.0% 32.7% 37.5% EBIT 49 23 24 24 32 Capex 20 20 16 40 24 Operating Free Cash Flow (EBITDA - Capex) 85 51 58 31 57 Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 42 of 60

9.3 Based on Product Wise Statement of Operations

9.3.1 Mobile Services - Summarized Statement of Operations

9.3.1.1 Consolidated Mobile:

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 948 891 799 844 826 EBITDA 446 392 345 366 363 EBITDA / Revenue 47.1% 44.0% 43.2% 43.3% 43.9% EBIT 271 228 192 220 210 Capex 184 147 64 240 145 Operating Free Cash Flow (EBITDA - Capex) 262 245 281 125 217

In Constant Currency

Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 951 889 803 816 791 EBITDA 447 392 347 351 345 EBITDA / Revenue 47.1% 44.1% 43.1% 43.0% 43.6% EBIT 272 229 192 209 198 Capex 184 147 64 240 145 Operating Free Cash Flow (EBITDA - Capex) 263 245 283 111 200

Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

9.3.1.2 Nigeria Mobile Services

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 412 377 341 377 354 EBITDA 222 204 182 209 194 EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7% EBIT 159 142 130 163 146 Capex 81 67 30 145 64

Operating Free Cash Flow (EBITDA - Capex) 141 137 152 64 130

Page 43 of 60

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 414 378 343 359 333 EBITDA 223 205 183 199 182 EBITDA / Revenue 53.8% 54.2% 53.3% 55.5% 54.7% EBIT 161 142 130 154 137 Capex 81 67 30 145 64 Operating Free Cash Flow (EBITDA - Capex) 142 138 153 54 118 Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

9.3.1.3 East Africa Mobile Services (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 301 298 264 268 272 EBITDA 132 128 103 100 101 EBITDA / Revenue 43.9% 43.1% 38.9% 37.2% 37.1% EBIT 76 76 50 46 45 Capex 84 60 18 56 57 Operating Free Cash Flow (EBITDA - Capex) 48 68 85 44 44

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 310 301 266 259 258 EBITDA 135 129 103 96 95 EBITDA / Revenue 43.6% 42.9% 38.8% 37.0% 36.8% EBIT 78 76 50 44 42 Capex 84 60 18 56 57 Operating Free Cash Flow (EBITDA - Capex) 51 69 85 40 38 Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 44 of 60

9.3.1.4 Francophone Africa Mobile Services (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)

In Reported Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 238 218 196 200 202 EBITDA 92 60 62 58 68 EBITDA / Revenue 38.8% 27.5% 31.4% 28.7% 33.7% EBIT 35 10 13 11 18 Capex 19 20 16 39 24 Operating Free Cash Flow (EBITDA - Capex) 73 40 46 18 44

In Constant Currency Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 229 213 197 200 201 EBITDA 89 59 62 58 68 EBITDA / Revenue 38.9% 27.6% 31.3% 28.7% 33.7% EBIT 34 10 13 11 18 Capex 19 20 16 39 24 Operating Free Cash Flow (EBITDA - Capex) 70 39 46 18 43 Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 45 of 60

9.3.2 Mobile Money - Summarized Statement of Operations

9.3.2.1 Mobile Money:

In Reported Currency

Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 110 100 81 83 82 EBITDA 54 49 39 39 40 EBITDA / Revenue 48.7% 48.7% 48.5% 47.3% 49.0% EBIT 52 47 37 36 39 Capex 3 2 2 5 4 Operating Free Cash Flow (EBITDA - Capex) 51 47 37 34 36

In Constant Currency

Amount in US$ Mn, except ratios Quarter Ended Particulars Dec-20 Sep-20 Jun-20 Mar-20 Dec-19

Revenue 111 100 81 81 79 EBITDA 54 48 39 38 39 EBITDA / Revenue 48.6% 48.6% 48.5% 47.5% 49.2% EBIT 52 46 37 36 37 Capex 3 2 2 5 4 Operating Free Cash Flow (EBITDA - Capex) 51 47 37 33 35

Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

Page 46 of 60

9.4 Operational Performance Trends (Quarter Ended)

9.4.1 Consolidated - Operational Performance

Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Customer Base 000's 118,903 116,371 111,461 110,604 107,140 Net Additions 000's 2,532 4,910 857 3,464 3,258 Monthly Churn % 5.0% 5.3% 5.7% 5.3% 5.2% Average Revenue Per User (ARPU) US$ 2.9 2.8 2.6 2.7 2.7 Voice Voice Revenue US$ Mn 566 517 456 494 484 Minutes on the netw ork Mn 85,651 80,375 71,891 68,870 65,086 Voice Average Revenue Per User (ARPU) US$ 1.6 1.5 1.4 1.5 1.5 Voice Usage per customer min 241 235 218 211 206 Data Data Revenue US$ Mn 295 283 267 245 232 Data Customer Base 000's 40,624 39,596 36,972 35,443 32,887 As % of Customer Base % 34.2% 34.0% 33.2% 32.0% 30.7% Total MBs on the netw ork Mn MBs 320,568 293,919 279,541 219,015 189,798 Data Average Revenue Per User (ARPU) US$ 2.4 2.5 2.5 2.4 2.4 Data Usage per customer MBs 2,653 2,576 2,607 2,145 1,967 Mobile Money Transaction Value US$ Mn 12,959 11,637 9,038 8,031 8,001 Transaction Value per Subs US$ 208 199 164 155 166 Mobile Money Revenue US$ Mn 111 100 81 81 79 Active Customers 000's 21,460 20,120 18,529 18,294 16,634 Mobile Money ARPU US$ 1.8 1.7 1.5 1.6 1.6 Network and Coverage Netw ork tow ers Nos 24,693 24,246 23,471 22,909 22,253 Owned towers Nos 4,530 4,561 4,569 4,548 4,454 Leased towers Nos 20,163 19,685 18,902 18,361 17,799 Of w hich Mobile Broadband tow ers Nos 22,998 22,250 21,171 20,378 19,133 Total Mobile Broadband Base stations Nos 72,616 63,705 51,963 47,082 43,174 Data Capacity TB/day 11,448 10,253 8,371 7,572 6,780

Revenue Per site Per Month US$ 14,108 13,408 12,257 12,809 12,718 Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.

Page 47 of 60

9.4.2 Nigeria - Operational Performance

Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Customer Base 000's 44,449 44,054 42,513 41,757 39,855 Net Additions 000's 395 1,541 757 1,902 343 Monthly Churn % 5.4% 6.1% 5.7% 5.8% 6.8% Average Revenue Per User (ARPU) US$ 3.1 2.9 2.7 2.9 2.8 Voice Voice Revenue US$ Mn 245 217 198 222 205 Minutes on the netw ork Mn 23,578 20,867 19,275 20,447 18,812 Voice Average Revenue Per User (ARPU) US$ 1.8 1.7 1.6 1.8 1.7 Voice Usage per customer min 174 161 154 166 158 Data Data Revenue US$ Mn 141 135 122 114 109 Data Customer Base 000's 18,831 19,003 17,334 16,715 15,234 As % of Customer Base % 42.4% 43.1% 40.8% 40.0% 38.2% Total MBs on the netw ork Mn MBs 158,566 147,471 139,285 108,561 96,313 Data Average Revenue Per User (ARPU) US$ 2.5 2.5 2.4 2.4 2.4 Data Usage per customer MBs 2,749 2,743 2,752 2,252 2,105 Network and Coverage Netw ork tow ers Nos 10,588 10,347 9,802 9,352 8,924 Owned towers Nos 203 199 204 200 177 Leased towers Nos 10,385 10,148 9,598 9,152 8,747 Of w hich Mobile Broadband tow ers Nos 10,376 10,002 9,326 8,796 8,093 Total Mobile Broadband Base stations Nos 37,098 30,091 19,258 15,788 13,865 Data Capacity TB/day 6,115 5,245 3,489 2,980 2,486

Revenue Per site Per Month US$ 13,179 12,500 11,904 13,060 12,491 Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.

Page 48 of 60

9.4.3 East Africa - Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Customer Base 000's 52,612 51,265 48,757 48,634 47,366 Net Additions 000's 1,348 2,508 123 1,268 2,359 Monthly Churn % 4.6% 4.5% 5.7% 4.7% 3.8% Average Revenue Per User (ARPU) US$ 2.4 2.4 2.1 2.1 2.2 Voice Voice Revenue US$ Mn 179 171 144 147 149 Minutes on the netw ork Mn 52,988 51,335 45,107 41,049 39,177 Voice Average Revenue Per User (ARPU) US$ 1.1 1.1 1.0 1.0 1.1 Voice Usage per customer min 340 342 311 285 284 Data Data Revenue US$ Mn 90 89 86 79 77 Data Customer Base 000's 15,638 14,924 14,041 13,322 12,903 As % of Customer Base % 29.7% 29.1% 28.8% 27.4% 27.2% Total MBs on the netw ork Mn MBs 125,879 115,048 110,172 85,983 74,285 Data Average Revenue Per User (ARPU) US$ 2.0 2.0 2.1 2.1 2.1 Data Usage per customer MBs 2,776 2,632 2,711 2,227 1,991 Network and Coverage Netw ork tow ers Nos 9,365 9,193 9,039 8,987 8,838 Owned towers Nos 2,492 2,544 2,535 2,499 2,475 Leased towers Nos 6,873 6,649 6,504 6,488 6,363 Of w hich Mobile Broadband tow ers Nos 8,260 8,039 7,880 7,809 7,542 Total Mobile Broadband Base stations Nos 24,200 22,567 22,071 21,162 20,340 Data Capacity TB/day 3,703 3,426 3,355 3,147 3,009

Revenue Per site Per Month US$ 13,405 13,025 11,264 11,156 11,261 Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.

Page 49 of 60

9.4.4 Francophone Africa- Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)

Parameters Unit Dec-20 Sep-20 Jun-20 Mar-20 Dec-19 Customer Base 000's 21,842 21,052 20,190 20,213 19,919 Net Additions 000's 790 862 (23) 294 557 Monthly Churn % 5.5% 5.5% 5.9% 6.0% 5.4% Average Revenue Per User (ARPU) US$ 3.9 3.7 3.5 3.6 3.7 Voice Voice Revenue US$ Mn 140 131 117 127 133 Minutes on the netw ork Mn 9,084 8,173 7,509 7,373 7,097 Voice Average Revenue Per User (ARPU) US$ 2.2 2.1 1.9 2.1 2.3 Voice Usage per customer min 141 132 125 122 121 Data Data Revenue US$ Mn 63 59 58 51 47 Data Customer Base 000's 6,155 5,669 5,596 5,405 4,749 As % of Customer Base % 28.2% 26.9% 27.7% 26.7% 23.8% Total MBs on the netw ork Mn MBs 36,124 31,400 30,083 24,471 19,200 Data Average Revenue Per User (ARPU) US$ 3.6 3.5 3.6 3.3 3.5 Data Usage per customer MBs 2,028 1,889 1,882 1,601 1,429 Network and Coverage Netw ork tow ers Nos 4,740 4,706 4,630 4,570 4,491 Owned towers Nos 1,835 1,818 1,830 1,849 1,802 Leased towers Nos 2,905 2,888 2,800 2,721 2,689 Of w hich Mobile Broadband tow ers Nos 4,362 4,209 3,965 3,773 3,498 Total Mobile Broadband Base stations Nos 11,318 11,047 10,634 10,132 8,969 Data Capacity TB/day 1,630 1,582 1,527 1,445 1,285

Revenue Per site Per Month US$ 17,547 16,363 15,222 15,806 16,255 Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.

Page 50 of 60

SECTION 10

KEY ACCOUNTING POLICIES (AS PER IFRS)

• Property, plant and equipment and capital work-in- cost comprises of purchase price (including non-refundable duties progress and taxes but excluding any trade discounts and rebates), and any directly attributable cost. An item is recognised as an asset, if and only if, it is probable that the future economic benefits associated with the item will flow to • Goodwill the Group and its cost can be measured reliably. PPE is initially recognised at cost. Goodwill represents the cost of the acquired businesses in excess

of the fair value of identifiable net assets acquired. Goodwill is not The initial cost of PPE comprises its purchase price (including non- amortised; however, it is tested for impairment and carried at cost refundable duties and taxes but excluding any trade discounts and less any accumulated impairment losses. The gains/ (losses) on rebates), and any directly attributable cost of bringing the asset to the disposal of a cash-generating unit (‘CGU’) include the carrying its working condition and location for its intended use. Further, it amount of goodwill relating to the CGU sold (in case goodwill has includes assets installed on the premises of customers as the been allocated to Group of CGUs; it is determined on the basis of associated risks, rewards and control remain with the Group. the relative fair value of the operations sold).

Goodwill is tested for impairment, at least annually or earlier, in Subsequent to initial recognition, PPE is stated at cost less case circumstances indicate that their carrying value may exceed accumulated depreciation and any impairment losses. When the recoverable amount (higher of fair value less costs of sell and significant parts of PPE are required to be replaced at regular the value -in- use). For the purpose of impairment testing, the intervals, the Group recognises such parts as separate component goodwill is allocated to a cash-generating-unit (‘CGU’) or group of of assets. When an item of PPE is replaced, then its carrying CGUs (‘CGUs’) which are expected to benefit from the acquisition- amount is de-recognised from the consolidated statement of related synergies and represent the lowest level within the entity financial position and cost of the new item of PPE is recognised. at which the goodwill is monitored for internal management

purposes, but not higher than an operating segment. A CGU is the The expenditures that are incurred after an item of PPE has been smallest identifiable group of assets that generates cash inflows ready to use, such as repairs and maintenance, are normally that are largely independent of the cash inflows from other assets charged to the consolidated statement of comprehensive income or group of assets. in the period in which such costs are incurred. However, in situations where the said expenditure can be measured reliably, Impairment occurs when the carrying value of a CGU/CGUs and is probable that future economic benefits associated with it will including the goodwill, exceeds the estimated recoverable amount flow to the Group, it is included in the asset’s carrying value or as of the CGU/CGUs. The recoverable amount of a CGU/CGUs is the a separate asset, as appropriate. higher of its fair value less costs to sell and its value in use. Value-

in-use is the present value of future cash flows expected to be Depreciation on PPE is computed using the straight-line method derived from the CGU/CGUs. over the estimated useful lives. Freehold land is not depreciated as it has an unlimited useful life. The Group has established the The total impairment loss of a CGU/CGUs is allocated first to estimated range of useful lives for different categories of PPE as reduce the carrying value of goodwill allocated to that CGU/CGUs follows: and then to the other assets of that CGU/CGUs - on pro-rata basis Asset Categories Years Period of lease or 10-20 years, of the carrying value of each asset. Leasehold improvement as applicable, w hichever is less Buildings 20 • Other Intangible assets Plant and equipment - Netw ork equipment (including passive Identifiable intangible assets are recognised when the Group 3 - 25 infrastructure) controls the asset, it is probable that future economic benefits Computer equipment 3-5 attributed to the asset will flow to the Group and the cost of the Furniture & fixture and office equipment 1-5 asset can be measured reliably.

Vehicles 3-5 The useful lives, residual values and depreciation method of PPE The intangible assets that are acquired in a business combination are reviewed, and adjusted appropriately, at-least as at each are recognised at fair value as on acquisition date. Other intangible reporting date so as to ensure that the method and period of assets are recognised at cost. Such costs include cash price depreciation are consistent with the expected pattern of economic equivalent of deferred payments beyond normal credit terms. benefits from these assets. The effect of any change in the These assets having a definite useful life are carried at cost less estimated useful lives, residual values and / or depreciation accumulated amortisation and any impairment losses. method are accounted prospectively, and accordingly, the Amortisation is computed using the straight-line method over the depreciation is calculated over the PPE’s remaining revised useful expected useful life of intangible assets. life. The cost and the accumulated depreciation for PPE sold, scrapped, retired or otherwise disposed of are de-recognised from The Group has established the estimated useful lives of different the consolidated statement of financial position and the resulting categories of intangible assets as follows: gains / (losses) are included in the consolidated statement of comprehensive income within other expenses / other income. a. Licenses (including spectrum)

PPE in the course of construction is carried at cost, less any Acquired licenses and spectrum are amortised commencing from accumulated impairment and presented separately as capital the date when the related network is available for intended use in work-in-progress (CWIP) including capital advances in the the relevant jurisdiction. The useful lives range from two to twenty- consolidated statement of financial position until capitalised. Such five years.

Page 51 of 60

In addition, the Group also incurs a fee on licenses/spectrum that exercise price of a purchase option if the lessee is reasonably is calculated based on the revenue amount of the period. Such certain to exercise that option, and payments of penalties for revenue-share based fee is recognised as a cost in the terminating the lease, if the lease term reflects the lessee consolidated statement of comprehensive income when incurred. exercising that option. b. Software: Software are amortised over the period of the software license period, generally not exceeding three years. Subsequently, the lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is c. Other acquired intangible assets: Other acquired intangible a change in future lease payments including due to changes in CPI assets include the following: or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or when the lease Customer relationships: Over the estimated life of such contract is modified and the lease modification is not accounted relationships which ranges from one year to five years. for as a separate lease. The corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in The useful lives and amortisation method are reviewed, and profit or loss if the carrying amount of the related right-of-use asset adjusted appropriately, at least at each financial year end so as to has been reduced to zero. ensure that the method and period of amortisation are consistent with the expected pattern of economic benefits from these assets. Right-of-use assets are measured at cost comprising the amount The effect of any change in the estimated useful lives and / or of the initial measurement of lease liability, any lease payments amortisation method is accounted prospectively, and accordingly, made at or before the commencement date less any lease the amortisation is calculated over the remaining revised useful incentives received, any initial direct costs, and restoration costs. life. Subsequent to initial recognition, right-of-use assets are stated at Further, the cost of intangible assets under development includes cost less accumulated depreciation and any impairment losses the amount of spectrum allotted to the Group and related costs for and adjusted for certain re-measurements of the lease liability. which services are yet to be rolled out and are presented Depreciation is computed using the straight-line method from the separately in the consolidated statement of financial position. commencement date to the end of the useful life of the underlying asset or the end of the lease term, whichever is shorter. The estimated useful lives of right-of-use assets are determined on the • Investment in Associates same basis as those of the underlying property and equipment.

An associate is an entity over which the Group has significant In the consolidated statement of financial position, the right-of-use influence. Significant influence is the power to participate in the assets and lease liabilities are presented separately. financial and operating policy decisions of the investee but is not control or joint control over those policies. When a contract includes lease and non-lease components, the Group allocates the consideration in the contract on the basis of Investment in associate is accounted for using equity method; from the relative stand-alone prices of each lease component and the the date on which the Group starts exercising significant influence aggregate stand-alone price of the non-lease components. over the associate. Short-term leases At each reporting date, the Group determines whether there is objective evidence that the investment is impaired. If there is such The Group has elected not to recognise right-of-use assets and evidence, the Group calculates the amount of impairment as the lease liabilities for short term leases that have a lease term of 12 difference between the recoverable amount of investment and its months or less. The Group recognises the lease payments carrying value. associated with these leases as an expense on a straight-line basis over the lease term. • Leases b. Group as a lessor At inception of a contract, the Group assesses a contract as, or containing, a lease if the contract conveys the right to control the Whenever the terms of the lease transfer substantially all the risks use of an identified asset for a period of time in exchange for and rewards of ownership to the lessee, the contract is classified consideration. To assess whether a contract conveys the right to as a finance lease. All other leases are classified as operating control the use of an identified asset, the Group assesses whether leases. the contract involves the use of an identified asset, the Group has the right to obtain substantially all of the economic benefits from Amounts due from lessees under a finance lease are recognised use of the asset throughout the period of use; and the Group has as receivables at an amount equal to the net investment in the the right to direct the use of the asset. leased assets. Finance lease income is allocated to the periods so as to reflect a constant periodic rate of return on the net investment a. Group as a lessee outstanding in respect of the finance lease.

The Group recognises a right-of-use asset and a corresponding Rental income from operating leases is recognised on a straight- lease liability with respect to all lease agreements in which it is the line basis over the term of the relevant lease. Initial direct costs lessee in the consolidated statement of financial position. The incurred in negotiating and arranging an operating lease are added lease liability is initially measured at the present value of the lease to the carrying amount of the leased asset and recognised on a payments that are not paid at the commencement date, straight line basis over the lease term. discounted by using the rate implicit in the lease. If this rate cannot When a contract includes lease and non-lease components, the be readily determined, the Group uses its incremental borrowing Group applies IFRS 15 to allocate the consideration under the rate. Lease liabilities include the net present value of fixed contract to each component. payments (including in-substance fixed payments), variable lease payments that are based on consumer price index (‘CPI’), the

Page 52 of 60

The Group enters into ‘Indefeasible right to use’ (‘IRU’) transferred to the profit and loss within finance income / finance arrangements wherein the right to use the assets is given over the costs. substantial part of the asset life. However, as the title to the assets and the significant risks associated with the operation and iii. Net investment hedge maintenance of these assets remains with the Group, such arrangements are recognised as operating lease. The contracted The Group hedges its net investment in certain foreign price is recognised as revenue during the tenure of the agreement. subsidiaries. Accordingly, any foreign exchange differences on the Unearned IRU revenue received in advance is presented as hedging instrument (e.g. borrowings) relating to the effective deferred revenue within liabilities in the consolidated statement of portion of the hedge is recognised in other comprehensive income financial position. as foreign currency translation reserve (‘FCTR’) – within other components of equity, so as to offset the change in the value of • Derivative financial instruments the net investment being hedged. The ineffective portion of the gain or loss on these hedges is immediately recognised in profit or Derivative financial instruments, including separated embedded loss. The amounts accumulated in equity are included in the profit derivatives that are not designated as hedging instruments in a and loss when the foreign operation is disposed or partially hedging relationship are classified as financial instruments at fair disposed. value through profit or loss. Such derivative financial instruments are initially recognised at fair value. They are subsequently • Revenue measured at their fair value, with changes in fair value being recognised in profit or loss within finance income / finance costs. Revenue is recognised upon transfer of control of promised products or services to the customer at the consideration which the Group has received or expects to receive in exchange of those • Hedging activities products or services, net of any taxes / duties and discounts. When determining the consideration to which the Group is entitled for i. Fair value hedge providing promised products or services via intermediaries, the Group assesses whether the intermediary is a principal or agent in the onward sale to the end customer. To the extent that the Some of the Group’s entities use derivative financial instruments intermediary is considered a principal, the consideration to which (e.g. interest rate / currency swaps) to manage / mitigate their the Group is entitled is determined to be that received from the exposure to the risk of change in fair value of the borrowings. The intermediary. To the extent that the intermediary is considered an Group designates certain interest swaps to hedge the risk of agent, the consideration to which the Group is entitled is changes in fair value of recognised borrowings attributable to the determined to be the amount received from the customer; the hedged interest rate risk. The effective and ineffective portion of discount provided to the intermediary is recognised as a cost of changes in the fair value of derivatives that are designated and sale. qualify as fair value hedges are recorded in profit and loss within finance income / finance costs, together with any changes in the The Group has entered into certain multiple-element revenue fair value of the hedged liability that is attributable to the hedged arrangements which involve the delivery or performance of risk. If the hedge no longer meets the criteria for hedge accounting, multiple products, services or rights to use assets. At the inception the adjustment to the carrying amount of the hedged item is of the arrangement, all the deliverables therein are evaluated to amortised to profit or loss over the period to remaining maturity of determine whether they represent distinct performance the hedged item. obligations, and if so, they are accounted for separately. ii. Cash flow hedge Total consideration related to the multiple element arrangements is allocated to each performance obligation based on their relative Some of the Group’s entities use derivative financial instruments standalone selling prices. The stand-alone selling prices are (e.g. foreign currency forwards, options, swaps) to manage their determined based on the prices at which the Group sells exposure to foreign exchange and price risk. Further, the Group equipment and network services separately. designates certain derivative financial instruments (or its components) as hedging instruments for hedging the exchange Revenue is recognised when, or as, each distinct performance rate fluctuation risk attributable to either a recognised item or a obligation is satisfied. The main categories of revenue and the highly probable forecast transaction (‘Cash flow hedge’). The basis of recognition are as follows: effective portion of changes in the fair value of derivative financial instruments (or its components) that are designated and qualify as a. Service revenue cash flow hedges, are recognised in other comprehensive income and held as cash flow hedge reserve (‘CFHR’) – within other Service revenue is derived from the provision of components of equity. Any gains / (losses) relating to the telecommunication services and mobile money services to ineffective portion, are recognised immediately in profit or loss customers. The majority of the customers of the Group subscribe within finance income / finance costs. The amounts accumulated to the services on a pre-paid basis. in equity are re-classified to the profit and loss in the periods when the hedged item affects profit / (loss). Telecommunication service revenues mainly pertain to usage, subscription charges for voice, data, messaging and value added When a hedging instrument expires or is sold, or when a cash flow services and customer onboarding charges, which include hedge no longer meets the criteria for hedge accounting, any activation charges. cumulative gains / (losses) existing in equity at that time remains in equity and is recognised (on the basis as discussed in the above Telecommunication services (comprising voice, data and SMS) paragraph) when the forecast transaction is ultimately recognised are considered to represent a single performance obligation as all in the profit and loss. However, at any point of time, when a are provided over the Group’s network and transmitted as data forecast transaction is no longer expected to occur, the cumulative representing a digital signal on the network. The transmission gains / (losses) that were reported in equity is immediately consumes network bandwidth and therefore, irrespective of the nature of the communication, the customer ultimately receives

Page 53 of 60

access to the network and the right to consume network scale of impact of that item on reported performance in bandwidth. accordance with the exceptional items policy.

Customers pay in advance for services of the Group, these cash To monitor the performance, the Group uses the following APMs: amounts are recognised in deferred income on the consolidated • ‘Underlying profit before tax’ representing profit before tax for statement of financial position and transferred to the consolidated the period excluding the impact of exceptional items, income statement when the service obligation has been • ‘Underlying profit after tax’ representing profit after tax for the performed/when the usage of services becomes remote. period excluding the impact of exceptional items and tax on exceptional items. The Group recognises revenue from these services over time as they are provided. Revenue is recognised based on actual units of Exceptional items refer to items of income or expense within the telecommunication services provided during the reporting period consolidated statement of comprehensive income which are of as a proportion of the total units of telecommunication services to such size, nature or incidence that their exclusion is considered be provided. necessary to explain the performance of the Group and improve the comparability between periods. Reversals of previous Subscription charges are recognised over the subscription pack exceptional items are also considered as exceptional items. When validity period. Customer onboarding revenue is recognised upon applicable, these items include network modernisation, share successful onboarding of customer i.e. upfront. issue expenses, restructuring costs, impairments, initial recognition of deferred tax assets, impact of mergers etc. Revenues recognised in excess of amounts invoiced are classified as unbilled revenue. If amounts invoiced / collected from a customer are in excess of revenue recognised, a deferred revenue • Foreign currency transactions / advance income is recognised. a. Functional and presentation currency Service revenues also includes revenue from interconnection / roaming charges for usage of the Group’s network by other The items included in financial statements of each of the Group’s operators for voice, data, messaging and signaling services. entities are measured using the currency of primary economic These are recognised upon transfer of control of services being environment in which the entity operates (i.e. ‘functional transferred over time. currency’). The financial statements are presented in US Dollar which is the Revenues from long distance operations comprise of voice functional and presentation currency of the company. services and bandwidth services (including installation), which are recognised on provision of services and over the period of b. Transactions and balances respective arrangements. Transactions in foreign currencies are initially recorded in the The Group has interconnect agreements with local and foreign relevant functional currency at the rates prevailing at the date of operators. This allows customers from either network to originate the transaction. or terminate calls to each others’ network. Revenue is earned and recognised as per bilateral agreements when other operators’ calls Monetary assets and liabilities denominated in foreign currencies are terminated to the Group’s network i.e. the service is rendered. are translated into the functional currency at the closing exchange rate prevailing as at the reporting date with the resulting foreign As part of the mobile money services, the Group earns exchange differences, on subsequent re-statement / settlement, commission from merchants for facilitating recharges, bill recognised in the consolidated statement of comprehensive payments and other merchant payments. It also earns income within finance costs / finance income. Non-monetary commissions on transfer of monies from one customer wallet to assets and liabilities denominated in foreign currencies are another. Such commissions are recognised as revenue on translated into the functional currency using the exchange rate provision of these services by the Group. prevalent, at the date of initial recognition (in case they are measured at historical cost) or at the date when the fair value is Costs to obtain or fulfil a contract with a customer determined (in case they are measured at fair value) – with the The company defers costs to obtain or fulfill contracts with resulting foreign exchange difference, on subsequent re- customers over expected average customer life. statement / settlement, recognised in the profit and loss, except to the extent that it relates to items recognised in the other b. Equipment sales comprehensive income or directly in equity.

Equipment sales mainly pertain to sale of telecommunication The equity items denominated in foreign currencies are translated equipment and related accessories for which revenue is at historical exchange rate. recognised when the control of equipment is transferred to the customer i.e. transferred at a point in time.

c. Foreign operations • Alternative performance measures (APM)- Exceptional items The assets and liabilities of foreign operations (including the goodwill and fair value adjustments arising on the acquisition of Management exercises judgment in determining the adjustments foreign entities) are translated into US Dollar at the exchange rates to apply to IFRS measurements in order to derive APMs which prevailing at the reporting date whereas their statements of profit provide additional useful information on the underlying trends, and loss are translated into US Dollar at monthly average performance and position of the Group. This assessment covers exchange rates and the equity is recorded at the historical rate. the nature of the item being one-off or non-routine, whether the The resulting exchange differences arising on the translation are cause of occurrence was within the Group’s control or not and the recognised in other comprehensive income and held in foreign currency translation reserve (‘FCTR’), a component of equity. On

Page 54 of 60

disposal of a foreign operation (that is, disposal involving loss of currently has a legally enforceable right to set-off the current control), the component of other comprehensive income relating income tax assets and liabilities, and (b) when it relate to income to that particular foreign operation is reclassified to profit or loss. tax levied by the same taxation authority and where there is an intention to settle the current income tax balances on net basis.

• Income-taxes

• Transactions with non-controlling interests The income tax expense comprises of current and deferred income tax. Income tax is recognised in the profit and loss, except A change in the ownership interest of a subsidiary, without a to the extent that it relates to items recognised in the same or a change of control, is accounted for as a transaction with equity different period, outside profit or loss, in other comprehensive holders. Any difference between the amount of the adjustment to income or directly in equity, in which case the related income tax non-controlling interests and any consideration exchanged is is also recognised accordingly. recognised in ‘transactions with NCI reserve’, within equity.

a. Current tax • Provisions

Current tax is calculated on the basis of the tax rates, laws and Provisions are recognised when the Group has a present regulations, which have been enacted or substantively enacted as obligation (legal or constructive) as a result of a past event, it is at the reporting date in the respective countries where the Group probable that an outflow of resources will be required to settle the entities operate and generate taxable income. The payment made obligation, and the amount of the obligation can be reliably in excess / (shortfall) of the respective Group entities’ income tax estimated. obligation for the period are recognised in the consolidated Provisions are measured at the present value of the expenditures statement of financial position under non-current income tax expected to be required to settle the relevant obligation, using a assets / liabilities. pre-tax rate that reflects current market assessments of the time

value of money (if the impact of discounting is significant) and the Any interest, related to accrued liabilities for potential tax risks specific to the obligation. The increase in the provision due assessments are not included in Income tax charge or (credit), but to un-winding of discount over passage of time is recognised within are rather recognised within finance costs. finance costs.

A provision is recognised for those matters for which the tax Contingencies determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions A disclosure for a contingent liability is made when there is a are measured at the best estimate of the amount expected to possible obligation or a present obligation that may, but probably become payable or based on expected value approach, as will not, require an outflow of resources. When there is a possible applicable. The assessment is based on the judgement of tax obligation or a present obligation in respect of which the likelihood professionals within the company supported by previous of outflow of resources is remote, no provision or disclosure is experience in respect of such activities and in certain cases based made. Contingent assets are not recognised unless virtually on specialist independent tax advice. certain and disclosed only where an inflow of economic benefits is

probable. b. Deferred tax

Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values. However, deferred tax is not recognised if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Further, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Moreover, deferred tax is recognised on temporary differences arising on investments in subsidiaries and associate - unless the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets, recognised and unrecognised, are reviewed at each reporting date and assessed for recoverability based on best estimates of future taxable profits.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Income tax assets and liabilities are off-set against each other and the resultant net amount is presented in the consolidated statement of financial position, if and only when, (a) the Group

Page 55 of 60

SECTION 11

GLOSSARY

Technical and Industry Terms

Company Related

Average Customers The average number of customers for a period. Derived from the monthly averages during the relevant period. Monthly averages are calculated using the number of customers at the beginning and the end of each month.

Average Revenue per Average revenue per user per month. This is derived by dividing total revenue during the relevant period by the user (ARPU) average number of customers during the period and dividing the result by the number of months in the relevant period.

Basic Earnings Per Share Basic Earnings Per Share is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.

Capital Expenditure An alternative performance measure (non-GAAP). Defined as investment in gross fixed assets (both tangible (Capex) and intangible, but excluding spectrum and licences) plus capital work in progress (CWIP), excluding provisions on CWIP for the period.

Capital Employed Capital Employed is defined as sum of equity attributable to equity holders of parent, Non-controlling interests ('NCI') and net debt. The definition has been revised to include Non-controlling interests ('NCI') and the related KPIs have been reinstated for all the reported periods.

Cash Profit from It is not a GAAP measure and is defined as profit from operating activities before depreciation, amortization and Operations before exceptional items adjusted for finance cost (net of finance income) before adjusting for derivative and exchange Derivative and Exchange (gain)/ loss. Fluctuation

Churn Churn is derived by dividing the total number of customer disconnections during the relevant period by the average number of customers and dividing the result by number of months in the relevant period.

Constant currency The Group has presented certain financial information that is calculated by translating the results for the current financial year and prior financial years at a fixed ‘constant currency’ exchange rate, which is done to measure the organic performance of the Group.

Customer Defined as a unique subscriber with a unique mobile telephone number who has used any of Airtel’s services in the last 30 days.

Customer Base The total number of subscribers that have used any of our services (voice calls, SMS, data usage or Mobile Money transaction) in the last 30 days.

Data Average Revenue Data ARPU is derived by dividing total data revenue during the relevant period by the average number of Data Per User (ARPU) customers and dividing the result by the number of months in the relevant period.

Data Capacity Total data capacity per day for the Region.

Data Customer Base The total number of subscribers who have consumed at least 1MB on the Group’s GPRS, 3G or 4G network in the last 30 days.

Data customer The proportion of customers using Data services. Calculated by dividing the data customer base by the total penetration customer base.

Data Usage per Calculated by dividing the total MBs consumed on the Group’s network during the relevant period by the Customer average data customer base over the same period and dividing the result by the number of months in the relevant period.

Diluted Earnings per Diluted EPS is computed by adjusting, the profit for the year attributable to the shareholders and the weighted share average number of shares considered for deriving basic EPS, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period.

Earnings per share (EPS) EPS is calculated by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.

Page 56 of 60

EBITDA An alternative performance measure (non-GAAP). Defined as operating profit before depreciation, amortisation, CSR cost and exceptional items.

EBITDA Margin An alternative performance measure (non-GAAP). Calculated by dividing underlying EBITDA for the relevant period by underlying revenue for the relevant period.

EBIT It is not a GAAP measure and is defined as EBITDA adjusted for depreciation and amortization.

Free Cash Flow An alternative performance measure (non-GAAP). Free cash flow is defined as operating free cash flow less cash interest, cash tax and change in operating working capital.

Francophone Africa One of the Group’s segments called earlier `Rest of Africa`.

Interest Coverage Ratio EBITDA for the relevant period divided by interest on borrowing for the relevant period.

Lease Obligation Lease obligation represents the present value of the future lease payment obligation for assets taken on finance lease.

Mobile Broadband Base Base stations that carry either 3G and/or 4G capability across all technologies and spectrum bands. stations

Mobile Money active Total number of subscribers who have enacted any Mobile Money usage event in last 30 days. customers

Mobile Money ARPU Mobile Money average revenue per user, which is derived by dividing total Mobile Money revenue during the relevant period by the average number of Mobile Money customers and dividing the result by the number of months in the relevant period.

Mobile Money Any financial transaction performed on the Airtel Money platform. transaction value

Mobile Money Calculated by dividing the total Mobile Money transaction value on the Group’s Mobile Money platform during transaction value per the relevant period by the average number of Mobile Money customers and dividing the result by number of customer per month months in the relevant period.

Mobile service Mobile services are our core telecom services, mainly voice and data services, but also including revenue from tower operation services provided by the Group and excluding Airtel Money services.

Network Towers/Sites Physical network infrastructure comprising a base transmission system (BTS) which holds the radio transceivers (TRXs) that define a cell and coordinates the radio link protocols with the mobile device. It includes all ground- based, roof top and in-building solutions.

Net Debt An alternative performance measure (non-GAAP). Defined as the total of long-term borrowings, short term borrowings and lease liabilities, less cash and cash equivalents.

Net Debt to EBITDA It is an alternative performance measure (non-GAAP) and is computed by dividing Net Debt as at the end of (LTM) the relevant period by EBITDA for preceding last 12 months (from the end of the relevant period). This is also referred to as leverage ratio.

Net Debt to EBITDA It is an alternative performance measure (non-GAAP) and is computed by dividing net debt as at the end of the (Annualized) relevant period by EBITDA for the relevant period (annualized).

Net Revenue It is an alternative performance measure (non-GAAP) and is defined as total revenue adjusted for IUC (Interconnection Usage charges) charges, cost of goods sold and Airtel Money commission.

Net profit margin It is computed by dividing Cash Profit from Operations before Derivative and Exchange Fluctuation by total revenue.

Operating company Operating company is defined as business units providing telecommunication services and mobile money services across the Group’s footprint.

Operating Profit A GAAP measure of profitability. Calculated as revenue less operating expenditure (including depreciation & amortisation and operating exceptional items).

Operating Free Cash flow An alternative performance measure (non-GAAP). calculated by subtracting capital expenditure from underlying EBITDA.

Page 57 of 60

Profit / (Loss) after It is an alternative performance measure (non-GAAP) and is defined as Profit / (Loss) before taxation adjusted current tax expense for current tax expense.

Reported currency Our reported currency is US dollars. Accordingly, actual periodic exchange rates are used to translate the local currency financial statements of OPCOs into US dollars. Under reported currency the assets and liabilities are translated into US dollars at the exchange rates prevailing at the reporting date whereas the statements of profit and loss are translated into US dollars at monthly average exchange rates.

Return On Capital For the full year ended, ROCE is computed by dividing the earnings before interest and tax for the period by Employed (ROCE) average (of opening and closing) capital employed. Capital employed used for ROCE is defined as sum of Total Equity and Net Debt. For the quarterly computation, it is computed by dividing the earnings before interest and

tax for the preceding (last) 12 months from the end of the relevant period by average capital employed. Average

capital employed is calculated by considering average of quarterly average for the preceding (last) four quarters from the end of the relevant period.

Return on Equity (ROE)- For the full year ended, it is computed by dividing profit before tax (including exceptional item) for the period by Pre-Tax the closing Total Equity. For the quarterly computations, it is computed by dividing profit before tax (including exceptional items) for the preceding last 12 months from the end of the relevant period by the closing Total Equity for the relevant period.

Return on Equity (ROE)- For the full year ended, it is computed by dividing net profit for the period by the closing Equity attributable to Post-Tax equity holders of parent. For the quarterly computations, it is computed by dividing net profit for the preceding last 12 months from the end of the relevant period by the closing Equity attributable to equity holders of parent.

Revenue per Site per Revenue per Site per month is computed by: dividing the total revenues, excluding sale of goods (if any) during month the relevant period by the average sites; and dividing the result by the number of months in the relevant period.

Smartphone Smartphone is defined as a mobile phone with an interactive touch screen that allows the user to access the internet and additional data applications, in addition to the functionality of a basic phone for making voice calls and sending and receiving text messages.

Smartphone Penetration Calculated by dividing the number of smartphone devices in use by the total number of customers.

Total Employees Total on-roll employees as at the end of respective period.

Total MBs on Network Total MBs consumed (uploaded & downloaded) by customers on the Group’s GPRS, 3G and 4G network during the relevant period.

Voice Minutes on The duration in minutes for which customers use the Group’s network for making and receiving voice calls. It is Network typically expressed over a period of one month. It includes all incoming and outgoing call minutes, including roaming calls.

Voice Minutes of Usage Calculated by dividing the total number of voice minutes of usage on the Group’s network during the relevant per Customer per month period by the average number of customers and dividing the result by the number of months in the relevant period..

Abbreviations

2G Second-Generation mobile Technology

3G Third-generation mobile technology

4G Fourth-generation mobile technology

ARPU Average revenue per user bn Billion

CSR Corporate Social Responsibility

EBITDA Earnings before interest, tax, depreciation and amortisation

EPS Earnings Per Share

Page 58 of 60

GAAP Generally Accepted Accounting Principles

GB Gigabyte

Group The Airtel Africa plc, together with its subsidiary undertakings referred to as the ‘Group’

IAS International Accounting Standards

IFRS International Financial Reporting Standards

KPIs Key performance indicators

KYC Know Your Customer

LTM Last twelve months

MB Megabyte

MI Minority Interest (Non-Controlling Interest)

Mn Million

OPCO Operating company pp Percentage points

P2P Person to Person

PPE Property, Plant and equipment

SMS Short Messaging Service

TB Terabyte

UoM Unit of measure

Page 59 of 60

Written correspondence to be sent to: Airtel Africa Investor Relations E-mail address: [email protected] Website: https://airtel.africa/investors Tel: (+44) 20 7493 9315

Page 60 of 60