West Africa Investor Event 13 and 14 May Agenda

West Africa investor event 13 and 14 May Agenda

West Africa investor event Ghana presentation 13 and 14 May 2014 West Africa investor event //13 and 14 May 2014

WEST AFRICA INVESTOR EVENT Serame Taukubong, CEO – Ghana

Agenda

01 Overview

02 Licences and network

03 Strategy

04 Distribution and marketing

05 Financials

06 Looking ahead

2 West Africa investor event //13 and 14 May 2014

3 West Africa investor event //13 and 14 May 2014

Overview

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Country overview

Population 26m Market sizing 31.8m (2016) Penetration 96%

Economics

GDP per capita USD 1,838

Inflation (YOY) 14.5% (GIA, Mar ‘14)

Commercial banks' prime lending rate 27% (Dec ‘13))

Exchange rate 2.18 (Dec ‘13) (LC/USD) 2.84 (Apr ‘14)

Demographics

English, several local Language languages

Religion Christian and Muslim

4 West Africa investor event //13 and 14 May 2014

5 West Africa investor event //13 and 14 May 2014

Market overview

Political Multi-party democracy system since 1992 Six consecutive elections; change of power twice Stable and peaceful environment

Economic GDP Growth: 7.9%(CIA Facts, Dec 13) Gross International Reserves: US$4.7 billion (BoG, Mar 14) (2.6 months of imports) Unstable exchange rate, the Ghana cedi depreciated over 17.6% in Q1 of 2014 compared to about 2% in Q1 of 2013 VAT increased by 2.5% to 15%, resulting in a total VAT/NHIL of 17.5% Communication Sector Contribution to Inflation: 5% (GSS Mar 14) General cost of doing business has increased

Regulatory Mandatory SIM Registration from March 3, 2012 Mobile Number Portability - July 7, 2011 International Call (Ghana Termination) levy 6 cents from 1 Jun 10 (Minimum charge 19 cents) Issue of 3 WiMax licences to operators expected Stringent site build permit guidelines introduced

Mobile network operators – March 2014

KASAPA/ MTN TIGO VODAFONE AIRTEL Expresso Globacom Launch/ Re-launch 1996 (Spacefon) 1992 (Mobitel) (OneTouch) 1997 (Zain) 1998 (Celtel) date 2007 (re-launch) 2006 (Tigo) 2009 (re-launch) 2010 (re-launch) 2010 (re-launch) 2012 Glo (launch)

Subscribers 13.05m 3.48m 5.18m 3.11m 0.91m 1.40m

Market share 49.57% 13.22% 19.70% 11.83% 0.35% 5.33%

• MTN Zone • Tigo Cash • Vodafone • Smart Zone • Free Night • Internet Modem • Mobile Money • Tigo Insurance World – • (Payback/F&F/ Calls Offers • Magic Voice • Smart Talk Roaming Free Night • Bonus on • Me2U/EasyShare • MTN Pay4me • Unlimited Service Calls) incoming • Data Bundle • Caller Tunes Internet • Promo – • Me2U • Internet • SMS Bundle • CLIR/So CLIR • TIGO SOS – Vodafone Red, • Airtel Insurance Modem Offers • Voice bundle • DSTV Mobile negative talk Double Value, • Magic Voice • Promos –(Good • Call me back time 1Gh for your • Promos -(Airtel morning Ghana, Initiatives • Me2U • Tigo my pocket, double talk chaw, too GISTA, Big 5, • Data Bundle control- (PAYG bonus on much, SMS Bounce, Glo Offers top up on PM) recharge Bunch, Kasa Green Card, • SMS Bundle • Blackberry • ULCH Sales saa) Bounty) offers Service • Blackberry • Airtel Money • Blackberry • SMS Bundle • Vodafone • Caller Tunes Service Offers Broadband • Internet Modem • 3.5G • Promos (Free Offers Bonto) • 3.5G

6 West Africa investor event //13 and 14 May 2014

7 West Africa investor event //13 and 14 May 2014

Licences and network

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Licences

Period 2G granted in 2004 – 2019 (Further renewable for 10 years) Spectrum –900MHz and 1800MHz 3G granted in January 2009 (15 years) 2X10MHz plus additional 2X5 MHz International Gateway licence

Upfront fees 2G - USD 22.5million fully paid over 6 years ended Dec 2009 3G – USD 27.0 million paid on issue of licence Other fees Regulatory fee – 1% net revenue quarterly Ghana Investment Fund (development of telecommunications in rural areas) – 1% net revenue annually

Coverage 2G Year 8 of licence required active presence in all regions of Ghana 3G Coverage in Metropolitan, Municipal and district capitals existing at the time the licence was granted, within 5 years of operation 2G coverage – 45% 3G coverage – 18%

8 West Africa investor event //13 and 14 May 2014

9 West Africa investor event //13 and 14 May 2014

Network nodes and sites (operational)

• Three state of the Art Switching Centres in Accra & Kumasi providing world class switching and data facilities

• Advance IP/MPLS & Internet POP network

• 2,306 2G Sites on Air

• 249 Collocated sites through Infrastructure sharing

• 1,054 Cities & Towns covered

• 33 BSC, 10 RNC, 6 HLR, 6 MBC, 21 MGW, 2 SGSN & 2 GGSN

2G network rollout

All 10 regions and Districts covered

Widest Nationwide Coverage

Population Coverage of 79.5%

Geographic Coverage of 43.5%

Best Quality network

10 West Africa investor event //13 and 14 May 2014

11 West Africa investor event //13 and 14 May 2014

3G network rollout

• There are currently 1,114 3G sites on air

• A total of 175 3G sites were added to the network in 2013

• Geographic Coverage of 20.6%

Strategy

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

12 West Africa investor event //13 and 14 May 2014

13 West Africa investor event //13 and 14 May 2014

Strategy

Grow faster than our competitors • Entrench MTN Ghana the market leader (number one, across all areas) • Consistent delivery is key

Deliver the best service in Ghana • Be the definitive benchmark of service in Ghana – across all industries

Attract and keep the best talent • Attract the best employees and keep them • With strong alignment of our Values & Vital behaviours

Do business with integrity • Doing what we say we will do, ALL the time • Brand – what people say about you when you’re NOT in the room

Management team

Serame Taukobong Chief Executive Officer

Hendrik Vorster Nigel Williams Abbad Reda Eric Nsarkoh Chief Technical Chief Financial Chief Information Sales & Distribution Officer Officer Officer Executive

Amma Benneh Cynthia Lumor Jemima Kotei Amposah Rahul De Corporate Services Customer Care Human Resources Chief Marketing Officer Executive Executive Executive

TBA Yuvi Rajha William Tetteh GM, Enterprise GM, Business Risk GM, Capital Projects Business Management

14 West Africa investor event //13 and 14 May 2014

15 West Africa investor event //13 and 14 May 2014

Distribution and marketing

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Distribution network

Distribution strategy Efficient distribution channels spread across the Use of… 10 regions of Ghana: – 9 Territorial Distributors Large Scale Distribution Model – 48 MTN branches For effective – 32 connect stores and efficient customer – 8 web based and wholesale dealers reach Drive through… – Over 600 LAS & RAS to deepen rural reach Distributor route to market Direct Sales Channel Rollout Trade Automation Solution to support visibility (Including B2B) on distribution footprints and product presence Strategic thrust… Use MTN branches to deliver enhanced customer service Dominate POP (Availability and Weighted Distribution) Aggressive acquisition drive to defend and grow market share (MNP & Gross Adds)

Rural acquisition campaign DSR using TAS to sell 16

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17 West Africa investor event //13 and 14 May 2014

Value propositions - March 2014

Offer Customer benefit Target segment Mobile Money Send and receive money, pay bills, shopping, top-up airtime High and Medium Value Aben Wo Ha Differentiated plans to enjoy low calls, internet and IDD rates. Low charges on-net, off-net, Mid to Low value data and IDD calls. MTN Protect Secure Your Vital Info. Track your lost or stolen device Medium to High value (High-end device users) Magic Voice Offers subs to opt for 3 distinctly funny voices: Animated Cartoon’s Voice, the Husky King’s Mid to Low value Voice and the Shrill Female Voice 3.5G Internet at fast speed Medium to High value Caller Tunes Entertain your callers even before you answer their call, with tunes All MTN Pay4me Make on-net calls and receiver pays Low Value DSTV Mobile Watch DSTV any time, anywhere on your mobile phone Medium to High value (High-end device users) Call me back Get in touch even if you do not have any money in your MTN account Low value CLIR/So CLIR Keep your phone number anonymous when you make calls High value Me2U Ability to share airtime Mid to Low value Blackberry Service Offers users of Blackberry handsets value-added perks such as BBM, Email, browser, etc Medium to High value

SMS Bundle offers Cap the amount you pay for SMS Mid to Low value Data Bundle Offers Cap the amount you pay for Data Medium to High value Just For You A unique offer that rewards all customers based on their tenure, usage, telecom lifestyle Mid to Low value amongst other behavioral factors Go Rio Points-based promo to reward customers with Handsets, Flat screen TVs, Cars and tickets to All watch World Cup in Brazil MTN Zone More talk-time with call discounts as high as 95%. Mid to Low value

Data - ISP

Subscribers 6,739,391 (Dec 13)

Customers

Current Products Lease lines – Local & International (including Global MPLS) Dedicated Internet Service Calling Sol. – Hosted PBX/ISDN, Audio Conference, Directory Services APN/VPN over mobile Data Centre services – Co-location and Cloud based services Security – Vehicle Tracking 18

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19 West Africa investor event //13 and 14 May 2014

Financials

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Revenue analysis

Total revenue Airtime revenue Dec 12 (GHS 1,753m) (Rm) – Strong subscriber growth during the year 10% Dec 13 (GHS 1,552m) YOY, MOUs down 4.7% to 122mins per 1400 sub/month 8.9% 1200 1161 Interconnect revenue 1066

– Local MTRs dropped to GHS 0.040 (0.045 in 1000 2012) while international traffic reduced by 11.3%, the weak cedi compensated for the 800 decline in volumes

Data (Incl. ICT & Mobile Money) 600 – Increased data revenue due to improved 3.9% bundle offerings and competitive value 400 306 318 80.9% proposition 19.8% (Data as a % of Revenue was over 9.7%) 200 170 94 86 103 Other 0 – Includes SMS GHS 67m (up 35% YOY) Airtime revenue Interconnect Data revenue Other revenue inbound roaming, subscription, connection revenue fees and barter site revenue releases

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21 West Africa investor event //13 and 14 May 2014

Opex analysis

Total Opex Interconnect & roaming Dec 12 (GHS 978m) (m) – National outgoing minutes up 2% YOY driven Dec 13 (GHS 1,095m) by on-net MOU stimulation promotions 300 24.0% 3.3% – International outgoing up 7% YOY, coupled 258 246 with the forex effect 250 238

Direct network costs 208 200 – Maintenance costs up 24% YOY due to higher fuel tariffs 12.17% 150 – Utilities expenses increased by 10% YOY 129 115 – Increased BTS and Sites 100 – Commission & Distribution 127.3% – Increased dealer purchases 15% YOY 50 50 – VAS and Revenue share 22

– Significant increase in content and mobile - money growth Interconnect & Direct network Commission & VAS and roaming costs Distribution revenue share

Opex analysis

Total Opex Staff costs Dec 12 (GHS 978m) (Rm) – Headcount reduction - 10% Dec 13 (GHS 1,095m) 200 13.2% Selling, distribution and marketing 179 180 Lower YOY due to release of GHS 4.9m prior – 158 year accrual 160 – Controlled marketing costs 140

IP & technical service fee 120 6.6% − Its 11% of revenue and in line with revenue 100 91 growth of 13% YOY 85 23.1% 80 2.0% 64 Other expenses 22.7% 60 50 51 52 − Handset & accessories, recharge cards 44 40 34 − Simcards 20 − Professional fees 0 − Travel & Entertainment Staff costs Selling, IP & Technical Regulatory Other Distribution & Services Fee Fees and expenses − Training & MTN Foundation Marketing levies Dec 12 (GHS 978m) Dec 13 (GHS 1,095m)

22 West Africa investor event //13 and 14 May 2014

23 West Africa investor event //13 and 14 May 2014

Tax considerations

Material reconciling items: Effective tax rates (%) – Effective tax rate reconciliation to 30.0% 31.0 – Statutory tax rate of 25% 30.3 30.0 – National Fiscal Stabilisation Levy 5% 29.0 28.5

– National Fiscal Stabilisation Levy expired in 28.0 27.4 2012 and reintroduced in July 2013 27.0 26.2 Looking ahead 26.0

– Ghana effective tax rate expected to be around 25.0 30% due to the National Fiscal Stabilsation Levy 24.0 (NFSL) to end Dec 2014 Dec-10 Dec-11 Dec-12 Dec-13 – Proposal to accelerate expiry to June 2014 tabled by Minister of Finance to parliament

Capital trends (LC)

400 35.0%

350 28.6% 30.0%

300 25.0% 250 20.5% 20.0% 200 15.8% 14.0% 359 15.0% 317 GHS (Millions) 150 245 10.0% 100 179

50 5.0%

1 0 0.0% Dec-10 Dec-11 Dec-12 Dec-13

Capex Capex to Revenue %

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25 West Africa investor event //13 and 14 May 2014

Capital investment plan

2011 2012 2013 2014 Actual Actual FQ3 Budget

Additional site builds: 2G BTS 66 115 47 125 Additional site builds: 3G BTS 290 74 96 120 Cumulative total BTS 2,815 2,993 3,263 3,557 Cumulative BSC 31 35 35 35

Cumulative MSC / MGw 4/19 4/21 4/21 6/21

National Fiber expansion 2,200 2,486 2,876 3,486

No of BTS Connected to Fiber 80 195 578 791

BH Erlang 214,048 244,864 263,000 308,405

Average Site Utilisation (%) 79.5 76.8 70 70

Co-Located Sites 0 168 218 248

Looking ahead

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

26 West Africa investor event //13 and 14 May 2014

27 West Africa investor event //13 and 14 May 2014

Foundation

General As MTN’s global policy, a proportion of each operating unit’s profit after tax (PAT) is dedicated to undertaking corporate social Investment initiatives. The focus of the MT Ghana Foundation are Health, Education and Economic Empowerment

The main objective of the Foundation is to brighten and improve the quality of Objective people’s lives through appropriate corporate social Investments in communities where MTN operates

Since its inception in 2007, the MTN Ghana Foundation has invested over GHs 14m Sample Projects in more than 88 life enriching projects across the 10 regions of Ghana. These projects aim at contributing to the realisation of the Millennium Development Goals (MDG’s) and have impacted over 3 million Ghanaians Health Education Economic Empowerment Provision of ICT Hub - Construction of a 3 classroom block Support of equipment, seed capital, College of Physicians and provision of furniture – Nelson structure & mobile phones for Mandela School Project women in Shea butter Production

Construction of a 15 bed Refurbishment of the Western Business Incubator of 10 new ICT children's ward- Twifo Regional Library and provision of innovations. MTN/Ghana Multimedia Praso Government Hospital 20 computers for E library. Incubator Center

Refurbishment of Maternity Construction of a 2 storey dormitory My business 2012 in partnership with ward-Effia Nkwanta block, an ICT center, and a Joy FM. Hospital donation of a 33 seater bus – Akropong School for the Blind

Construction of a Neo Natal MTN Joy FM Read 100 clubs Hitmakers – to unearth musical Centre- Tamale Teaching talents in the youth & develop their Hospital potential for sustainable income 27

Looking ahead

Opportunities Transformational initiatives (Network Managed Services & MTN Next(New ERP and integration to the new Shared Service Centre in South Africa)

Focus on data,3G devices, data usage and MTN Enterprise Business

Market leadership (retain value share and grow non voice revenues)

Special focus to grow Mobile Money

Continuous execution of network improvement plans

Challenges Effect of aggressive On-net competitor promotions Lack of Forex in the market and the depreciating cedi is leading to increased CAPEX and OPEX.

General price levels on the increase and the consumer is more price conscious and demanding value.

Current macro-economic factors impacting heavily on business spend on communication

28 West Africa investor event //13 and 14 May 2014

29 West Africa investor event //13 and 14 May 2014

thank you

Notice

The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions and forward looking statements expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements.

Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

30 West Africa investor event //13 and 14 May 2014

31 West Africa investor event //13 and 14 May 2014

Income Statement (LC’000)

December December YoY 2013 2012 Var.

Revenue 1,752,605 1,551,606 13%

EBITDA 661,425 574,034 15%

Depreciation & Amort. (153,610) (140,368) 9%

Profit (Loss) from operations 507,815 433,666 17%

Finance Income (Charge) (9,838) (5,642) 74%

Profit (Loss) before taxation 497,977 439,308 13%

Taxation (136,425) (115,077) 19%

Profit (Loss) after taxation 361,551 324,231 12%

Balance sheet (LC ‘000)

Dec-13 Dec-12 ASSETS GHS'000 GHS'000

Property, plant and equipment 1,202,140 1,052,208 Intangible assets 123,072 80,355 Non-current receivables 12,577 412 Non- current Assets 1,337,789 1,132,975 Inventories 14,112 6,973 Recievables 211,723 188,358 Cash and cash equivalents 291,124 221,251 Current Assets 516,959 416,582

Total Assets 1,854,748 1,549,557

Total Equity 926,947 805,595

Defered Taxation 143,253 126,772 Long term borrowing 96,763 11,583 Provisions 121 83 Non-Current Liabilities 240,137 138,438

Trade and other payables 553,341 531,519 Other Liabilities 134,323 74,005 Current Liabilities 687,664 605,524

Total Liabilities 927,801 743,962

Total Equity and Liabilities 1,854,748 1,549,557 32

32 West Africa investor event //13 and 14 May 2014

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West Africa investor event Cameroon presentation 13 and 14 May 2014

Say goodbye to the hardcover and say welcome to the eBook. Welcome to the Bold New Digital World. West Africa investor event //13 and 14 May 2014

WEST AFRICA INVESTOR EVENT Cameroon – Karl Toriola, CEO

Agenda

01 Country and market overview

02 Licences and coverage

03 Performance review

04 Sales and distribution

05 Financial review

06 Looking ahead

36 West Africa investor event //13 and 14 May 2014

37 West Africa investor event //13 and 14 May 2014

Country and market overview

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Country overview

Economics

2013 : 2,414 *GDP per capita 2014f : 2,455 (USD at PPP) 2015f: 2,497 2013 : +4.8% *GDP growth 2014f : +5.0% 2015f: +5.0% 2012 : 3.0% Inflation (ave.) 2013 : 2.9% 2014f: 2.9% Commercial banks' prime 14% lending rate (typical MTN fixed rate: 6%)

Euro : 656 (pegged) FCFA Exchange rate (ave.) USD : 489 (2012), 478 (2013)

Demographics

Total population: 22.5 m (2013) Population Annual growth rate: +2.2%

Predominantly French (80%) with Language English and 200 local languages

Religion Christian and Muslim

* Source: Economy Watch, IMF, HDR-UNDP, CIA Factbook 4

38 West Africa investor event //13 and 14 May 2014

39 West Africa investor event //13 and 14 May 2014

Market dynamics

• Multi-directional lobbying between government and business. Political environment • Several neighboring countries are afflicted by political instability (Boko Haram; growing piracy threat in the Gulf of Guinea; many refugees due to the war in CAR).

• High cost of living, lack of jobs, social welfare and services • Economic growth projections for 2014 to 2017 relying mainly on public infrastructure and oil wells exploitation. Economic • Improved country debt profile on international credit markets due to debt relief under environment the Heavily Indebted Poor Countries initiative • Real GDP growth in Cameroon expected to stay above the 4.0% long-term due to investments in several new mega-projects and increased oil production. • Monetary policy determined by BEAC (regional central bank), prioritizing inflation and maintaining the FCFA peg to the Euro.

Telecom market

• 2 GSM operators (MTN and Orange) Overview • 1 Fixed-line operator (CamTel) •3rd GSM operator to launch commercial activities in September 2014 (Viettel)

• Total telecoms revenue grew by 3.5% in 2013, compared to 4.8% GDP growth rate.

• Fierce price competition and chnaging consumer demands

• MTN’s dynamism, innovation and leadership is taking advantage over competition

Key stats • Viettel entry with 3G exclusivity in a context of low internet penetration and high costs to connect

• CamTel still exercising monopoly over key transmission infrastructure, Optical Fiber

• Market Penetration to increase from 69% in 2013 to 83% in 2017 driven by dual SIMs from 1.38 to 1.5 and 3rd operator entry.

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41 West Africa investor event //13 and 14 May 2014

Mobile network operators

MTN Orange

Launch date Apr 2000 May 1999

Subscribers 8,711,000 5,980,000

Market share 59.3% 40.7%

MTN Mauritius : 70% Shareholders Orange SA : 99.5% Local / Private : 30%

VIETTEL as 3rd operator

• Expected to commercially launch in September 2014 • 3G exclusivity until end 2015? • Tax and customs duties exemptions for 5 years • Expected to gain market share based rural and remote area strategy • Announced a 20-30% nominal price reductions • Viettel known for value-led strategy in new markets when it is entering as a greenfield player in a market with one or more dominant players. This could further depress mobile ARPUs in Cameroon

Fixed line operator

2010 2011 2012 2013

Fixed-lines in service (‘000) 497 669 746 801 Fixed-lines penetration 2.5% 3.3% 3.6% 3.8% Internet users (‘000) 1,100 1,350 2,000 2,614 Internet penetration 5.6% 6.7% 9.8% 12.5%

Source: Business Monitor International

•CamTel is the main provider of fixed-line telephony and data services. •The growth in the fixed-line sector is mainly due to an increase in the number of CDMA-based CT phone lines. •Launched in 2004, CamTel's CT phone service was officially described as a fixed-line solution, but with mobility of up to 40km and can operate via mobile and fixed handsets.

•The number of internet users in the country has grown in recent years as a result of 2G-based mobile data offerings from the country's mobile operators. •However, the broadband market remains grossly underserved mainly because of underinvestment in fixed network infrastructure and the high cost of international connectivity. •The rollout of 3G network services and the arrival of submarine fibre-optic cables such as WACS and ACE should make services cheaper by providing more plentiful and affordable international bandwidth.

42 West Africa investor event //13 and 14 May 2014

43 West Africa investor event //13 and 14 May 2014

Licences and coverage

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Licences

• GSM License from Feb 00 to Feb 15 • Spectrum: GSM 900 and GSM 1800 MHz (by special dispensation) Period/ • ISP License from Mar 06 to Mar 16 spectrum • Wimax: 3500 MHz, 2500 MHz • VAS licence (for MobileMoney): granted Dec 09

Upfront fees • GSM - FCFA 43.86 billion

• National road coverage: 6,116 km – 6,021 km achieved to date Obligations • Reasonable quality obligations

• GSM: 577 cities & towns, over 19,748 villages & communities Coverage • WIMAX: 34 cities & towns

. MTN Cameroon/MTN NS merger. Clearance given by Government for the merger of our GSM and ISP businesses. Advantages: no VAT on transactions between MTNC and MTNS, no need to recapitalization. . WACS. Signature of MOU with Government of Cameroon for WACS landing station transfer. Government will buy stakes on WACS and CLS.

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45 West Africa investor event //13 and 14 May 2014

2.5G and WiMax network rollout

Operational base transceiver stations network: • 1265 BTS’s • 8 MGW, 4 MSS, 4 HLR, 2MBC,12 BSC • 577 cities and towns • Over 19,748 villages and communities covered • Road coverage • 6,021 km completed • 6,116 km to be covered by end 2014 (95% of license obligation)

• 34 cities and towns covered by our WIMAX network • 226 Wimax Base Stations connected to our nationwide MPLS network

2010 2011 2012 2013 Cumulative BTS sites 771 869 1,012 1,247 Sites net additions 122 98 143 235

Performance review

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

46 West Africa investor event //13 and 14 May 2014

47 West Africa investor event //13 and 14 May 2014

Management team

Karl Toriola Chief Executive Officer

Christian Gilbert Ngono Sandile Ntsele Ibrahim Abba Gana Georges Mpoudi Chief Technical Chief Financial Chief Marketing Officer Chief Information Officer Officer Officer

Victor Oben Ousmanou Nassourou Jean Claude Dikot General Manager Human Ike Dube General Manager General Manager Enterprise Resources General Manager BRM Distribution Solutions Administration

Anna Catche Serge Esso Senior Manager Customer General Manager Relations Corporate Services

Operational highlights 2013

Market share and Value share

• Market share stands at 59.3% 2013; gain of 3.5 points compared to previous year. • Share of Net Adds reached 79.3% in 2013. • MTN overpasses Orange with 2.7 m subs. • MTN has now a greater ARPU than Orange (XAF 2,770 vs XAF 2,535). • As a result, MTN Value Share jumped up from 55.5% in 4Q 2012 to 61.2% in 4Q 2013.

• Social Networks. MTN leader on every single social media:  158,271 Facebook fans; OCAM has 102,934 fans.  5,267 followers on Twitter vs 419 for OCAM.

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49 West Africa investor event //13 and 14 May 2014

Performance review 2013

Revenue and EBITDA

Gross Profit Margin: 76.4% EBITDA Margin: 42.7% PAT/Revenue: 18.4% CAPEX/Sales: 15.2%

MTNC Revenue growth +1.7% -1.1% +8.9% +11.8% MTNC EBITDA growth -2.1% -10.9% +14.0% +4.0% Inflation rate 1.3% 2.9% 3.0% 3.0% Telco revenue growth 6.8% 4.7% 8.4% 3.5%

. Second consecutive year with significant growth in Revenue and EBITDA. . MTNC Revenue growth above the inflation rate of 3.0%, and above telco market revenue growth.

Performance review 2013

Other non-financials

Subscriber and ARPU

Boom in Net Additions thanks to: •Aggressive recruitment (nursery program and rural area connections) •Churn management (CLM activities, loyalty programs)

ARPU’s decline due to the combination of: •Market penetration (bottom of the pyramid); •DualSIM syndrome (40%); MOU/Subscriber and ERM

•Pressure on price due to: •Intensive competition •Offers with bonuses

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51 West Africa investor event //13 and 14 May 2014

Performance review 2013

Data and VAS

Trend of Data & SMS revenue

Improvement in Data/VAS penetration thanks to a couple of initiatives: •Commercial Launch of WIMAX 16e •Mobile Broadband and Data value proposition •Free Sundays Browsing •Data Door Days, etc

Some Data VAS statistics (YoY growth in revenue): • MTN Play: +2,081% • MTN Zik: +660% • VAS: +1,569%

Sales and distribution

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

52 West Africa investor event //13 and 14 May 2014

53 West Africa investor event //13 and 14 May 2014

Distribution channel

2014-17 Distribution missions & strategy Have the best and most efficient distribution system in Cameroon that provides real competitive advantage in the Headcount 85 market and foster the New Digital World 4 Regions Operations, 1 Mobile Money Unit 1 Acquisition & Training Unit By driving 1 Data & Devices Sales Unit 1 Channel Mgt unit The Penetration package: 1 Admin Unit • Rationalization & Professionalization • Product and Service diversification, with Data vulgarization • Mobile Banking services leveraging About Sixty partners of which a. 57 Distribution Partners b. 2 Village Phone Partners North To Enhance c. 1,752 Mobile Money Agent & POS 10.6%

West 15.7% • Revenue growth through Optimal GSM Approx. 600 P.O.S of which Penetration & Banking Services a. 82 Connect stores Littoral Center • Effective Data & Devices penetration 40.7% 33.0% b. 199 Yellow Points • Profitability and Sustainable growth c. 339,778 Call Box • Support & Loyalty • Customer Experience and Brand promise • Efficiencies and best practices

Products & services rollout

5 segments to address: .Main Stream .Youth .Masterbrand .High Value Customers .Business

Promotion Management Enhancement Enhancement of PMT foncionalities and new services Location based community offer Location based tariff specific to defined localities Stream

4 in 1 offer 1 pack, 4 SIMs with community tariff (50% discount on calls withn the 4 SIMs)

Main Njangui Group contribution through Mobile Money

SMS Kdo allows customers to make their friends benefit from free SMSes they can use to SMS Kdo communicate with them.Community payment option allow one member pay for the SMS bundle and the other can enjoy free SMS to the group as part of this bundle. It is an integrated music delivery solution that allows all customers to dial in and listen to their Radio Youth favorite songs of choice from different music genres from the mobile phone. Services that allows customer to accept SMS ad tagging using free characters space on P2P SMS and Sponsored SMS benefits from discounted SMS price.

54 West Africa investor event //13 and 14 May 2014

55 West Africa investor event //13 and 14 May 2014

Products & services continued…

Service that allows customers to send and receive international transfer from/to their Mobile Money International Remittance account Products and Services selfcare through mobile application for android, Blackberry and feature Selfcare I ‐ Mobile Application phone. Selfcare II ‐ Web Selfcare Products and Services selfcare through web interface with mobile web fonctionality. M ‐Health I ‐ Health Tips Service that will allow customers to receive health tips on their Mobile Mobile School is an interactive Educational SMS platform that inspires students to learn and conduct M ‐ Education I: Mobile School their own learning outside of the framework of traditional classes in different course categories. Selfservice bow that will be placed in specific locations and will allow customers to perform account Selfservice box in specific location management and purchase products and services. Send a keyword and receive an offer mechanism or full description. Eg: send MTN Elite to 8965 and Brand

P&S info search receive "type of price plan, key feature, tariff,…". Service should also be available through a mobile application. MTN e‐Commerce Market place for sellers and buyers Master Mobile Advertising Service that allows advertising on mobile through multiple channels (SMS, USSD, IVR, Mobile, Web) Mobile Results : A solution that allows students to receive their exam (academic) results by SMS or by M ‐ Education II: Mobile Results Calling an IVR. M‐Health II ‐ Pregnancy Possibility for women to follow their pregnancy using their Mobile Web Site refresh Refresh of MTN Web site Quizz for some categories and targeted subscribers, MTN shall ask some questions and provide on M ‐ Education III: MTN Quizz net airtime bonus to the winners of the week. Mobile internet site that gives access to educative materials. Customers subscribe through premium M ‐ Education IV: My Learning Academy SMS and can then access the materials they have subscribed for. M‐Health III ‐ Dial Doctor Ability for customers to dial a short code and access doctor or nurse online for first aid

Products & services continued…

Phonebook and Multimedia back up Service that will allow customers to back up their phonebook and multimedia contents and recover service when necessary Give the possibility to buy an offer or promotion to subscriber B. Offer can be voice, data or SMS Gift offer bundles or promotion This service will allow MTN to send SMS to outgoing roamers when they arrive in foreign country and Welcome SMS and Traffic Steering steer their traffic to preefrred Mobile Operator Info search Infor search into Business directory through SMS or mobile app Shared account plan (pre‐paid) on services and Give the possibility for a subscriber to share its Shared Services broadband connexion with friends (sharing volume) Customers will be able to create their own bundles based on their voice, SMS and data usage Customized Bundle

HVC forecast. Bundle customization should eb available through web, mobile app and ussd. Enhancement on actual reward platform (expiry, batch deactivation and activation, redeem of Reward Enhancement handsets in POS items or external parties services) Online Payment Service that allows payment of goods and services from the web SMS over USSD for roamers P2P to lower the cost ‐ use USSD over SMSC for roaming subscribers ATM Top Up Airtime top up using Bank ATM In the event of a loss of your device, the MTN Protect Service keeps your private data safe and locks MTN Protect the device. Interactive info traffic platform where customers give or consult traffic situation on main arthere Info traffic "akwa nord, missoke, bonaberi, etc" by SMS or chat forum USSD short code rental USSD short code rental with Integration of 3rd party to USSD gateway M2M Telemetry services for Corporate Prepaid CUG Possibility to offer CUG to SME or coporate as a VAS Centrex Make the PBX fonctionality available for prepaid and postpaid and on both IP and Mobile Automatic deduction With automatic deduction, recurrent payment can be scheduled on Mobile Money account

Business Bundle of Broadband Internet and ICT This service will give the flexibility to customers to pay a fixed fee to have a defined Internet access services offer and defined ICT services Installment Payment Automated installment payment of POS items through postpaid bills 22

56 West Africa investor event //13 and 14 May 2014

57 West Africa investor event //13 and 14 May 2014

Data – ISP

• Over 17,500 users (WIMAX 16E), currently focused on corporates and small business Customers • MTN NS is the market leader in the corporate internet market segment

• VPN MPLS • Internet access via WIMAX or EDGE Products • Prepaid Internet: WIMAX in conjunction with WIFI: an innovative solution allowing MTN GSM subscribers use their prepaid airtime to access the internet. • Hosting Services launched

• ISP and GSM organizations are fully integrated for maximum efficiency Organisation

ICT Services: new products & services

58 West Africa investor event //13 and 14 May 2014

59 West Africa investor event //13 and 14 May 2014

Mobile Money: Initiatives to drive penetration

 AES Sonel bill payment: get 500 XAF airtime bonus per bill paid via Mobile Money Promotion  From 1st May to 30th June 2014 get a chance to win a car by doing Mobile Money transactions.

 Funerals Insurance with NSIA (NAF) – Live in Mid May 2014

 Recurring payment or Automatic debit – Live latest August 2014

New services  Payment with POS terminals – Live in Mid May 2014

 ATM deposit and Withdrawal – Integration Ongoing

 Push and Pull from Bank account – Project at the Initial stage

 Multi Bin – Waiting for the Central Bank approval

 New Value Proposition: Implementation of the new tariff (reduction of P2P and Bill payment fees, Increase of Merchant commission)

New  Removal of fees on Airtime top up and get 20 to 30% airtime bonus. processes  Crazy promo twice per week (Thursday 400% and Sunday 1000%)

 CLM: dormant customers received 500 XAF into their accounts. When they purchase airtime, they will get 1000% airtime bonus

Mobile Money products

 Cash In

 P 2 P

 P 2 Cash

 Airtime Purchase Bill Payment Cash In, P2P (Demo Corner)

 Online Payment and Betting (PMUC)

 Bill payment AES SONEL, MTN POSTAPID, MTN ISP and CANAL+

 Withdrawal

 Tuition fees Groceries

 KWIK Advance Tuition fees - University Employee salaries advance, pensions

 Cash collection

 Bulk payment KWIK Advance

Flight ticket Pharmacy

60 West Africa investor event //13 and 14 May 2014

61 West Africa investor event //13 and 14 May 2014

MTN Cameroon financials Sandile Ntsele CFO – Cameroon

Financial review

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

62 West Africa investor event //13 and 14 May 2014

63 West Africa investor event //13 and 14 May 2014

Revenue

2013A 2012A Revenue Analysis Var % Contr CFAm CFAm

Airtime 199,963 185,595 8% 76%

Data 12,942 9,973 30% 5%

Short Messaging & VAS 10,265 5,790 77% 4%

Incoming Call and Roaming 39,310 34,541 14% 15%

Mobile Money and Other 2,283 960 138% 1%

Total Revenues 264,764 236,858 12% 100%

Data % of Revenue 4.9% 4.2% 0.7%

Comments • Airtime revenue grew by 8% supported by a 19% increase in subscribers, 51% increase in MOU • Data Revenue grew by 30% due to launch of various data bundles and the increased usage in Broadband • SMS & VAS increased by 77% driven by Magic Voice, MTN Play etc, • Incoming revenue growth was driven by a substantive increase in international interconnect rate. • Generated 102m in Mobile Money.

Broadband internet and data revenues

2013A 2012A Data Revenue Analysis Var% CFAm CFAm

Mobile Data 5,895 4,623 28%

Broadband 7,002 5,337 31%

Data Centre Colocation 10.0 9.7 3%

Email 20.4 1.1 1807%

Web Hosting 9.9 1.0 852%

Domains 2.5 0.8 209%

Virtual Servers 2.0 0.7 203%

Total Data Revenues 12,942 9,973 30%

Comments • Data experiencing good growth • Diversifying revenues into ICT. Coming off a low base but gaining traction

64 West Africa investor event //13 and 14 May 2014

65 West Africa investor event //13 and 14 May 2014

Expenditure

2013A 2012A Total Of COS & OPEX Var % Contr CFAm CFAm Commissions & Discounts 27,709 21,949 26% 18% Interconnect & Roaming 18,360 22,931 -20% 12% Regulatory Fees 11,142 12,569 -11% 7% Other Cost of Sales 5,244 3,610 45% 3% Network & Info Tech 35,712 21,743 64% 24% Marketing Costs 6,988 6,227 12% 5% Other Operating Expenditure 46,439 38,999 19% 31% Total Expenditure 151,594 128,028 18% 100%

Capital Expenditure 2010 2011 2012 2013 Capital Expenditure 35,085 20,618 44,706 40,294 CAPEX/Revenue 16.0% 9.5% 18.9% 15.2%

Comments • Total operating expenditure increased by 18%, mainly in Network, IT and Facilities costs, commissions and discounts. • Commissions costs increase driven by commissions on extra-time fees • Lower off-net calls and reduced interconnect rates resulted in reduced interconnect fees • Regulatory Fees impacted by a increase in 2011 fees implemented in 2012 • Network costs increased was driven by the Tower Leasing Costs

Tax considerations

Effective tax rates %

50.00 Taxation at standard rate 38.5% 45.00 44.1 Expenses not tax deductible 7.6% 40.9 Withholding tax 1.4% 40.00 38.5 39.1 Reinvestment tax Credit -0.7% 35.00 Asset Revaluation -21.8% 30.6 Income tax adjustment prior Year 5.6% 30.00 Effective Tax Rate 30.6% 25.00

20.00 2009 2010 2011 2012 2013

66 West Africa investor event //13 and 14 May 2014

67 West Africa investor event //13 and 14 May 2014

Looking ahead

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Looking ahead

Opportunities Challenges

• Solid leadership and brand image to leverage • Rampant criminality and regional insecurity

• Regional synergies and Groupwide • 3rd entrant (Viettel) impacting MTN market connectivity share and revenue growth • Data low penetration/immature ICT • Unfair competition (Camtel with Optic fiber, • Young population Viettel’s 3G)

• Developing digital • Regulatory number shortage impacting SIM provisionning process • Governement structural investment projects • Subscribers registration compliance • Rural regions not covered

• WACS

68 West Africa investor event //13 and 14 May 2014

69 West Africa investor event //13 and 14 May 2014

MTN Cameroon….Looking ahead

• License renewal and 3G • WACS launch • Focus on People: Culture and Engagement • Anticipate the launch of Viettel: learn from lessons in other Operations • Aggressive subscriber acquisition and protection of Market Share • Penetration and expansion into rural areas • Differentiated Customer Experience • Retention of High Value Base • Innovation in VAS and Data Services • Stimulate Need and usage of ICT Products • Drive exponential growth on WiMax Base

Thank you Questions?

70 West Africa investor event //13 and 14 May 2014

71 West Africa investor event //13 and 14 May 2014

Notice

Cameroon Income statement

XAF millions Dec-13 Dec-12 Var %

Revenue 264,764 236,858 12%

EBITDA 113,171 108,830 4%

EBITDA margin (%) 42.7% 45.9% -3%

Other Income 19,327 0 0%

Depreciation & amortisation -34,530 -36,941 -7%

Net finance costs 104 -2,275 -105%

Profit before taxation 98,072 69,614 41%

Income tax expense -29,993 -26,220 14%

Profit after taxation 68,079 43,394 57%

72 West Africa investor event //13 and 14 May 2014

73 West Africa investor event //13 and 14 May 2014

Cameroon Balance Sheet

XAF millions Dec-13 Dec-12

Non-current assets 122,582 106,852

Non-current assets held for sale 12,879 49,356

Current assets 156,454 102,070

Total assets 291,915 258,278

Capital and reserves 141,688 116,898

Non-current liabilities 6,950 20,836

Current liabilities 143,277 120,544

Total equity and liabilities 291,915 258,278

Cameroon- funding structure

• Syndicated Medium Term Loan: FCFA 44.15 billion • Nominal rate 6.00% • Raised in 2010 Facility A • Half yearly payment of CFA 6.3 billion payable in May & November • The outstanding balance of this facility stands at 18.9 billion and the last repayment will take place on May 15, 2015

74 West Africa investor event //13 and 14 May 2014

75 West Africa investor event //13 and 14 May 2014

thank you

76 West Africa investor event //13 and 14 May 2014

West Africa investor event Côte d’Ivoire presentation 13 and 14 May 2014

Say goodbye to the pen and say welcome to the stylus. Welcome to the Bold New Digital World. West Africa investor event //13 and 14 May 2014

WEST AFRICA INVESTOR EVENT Wim Vanhelleputte CEO – Ivory Coast

Agenda

01 Introduction and Overview

02 Licences and Network

03 Strategy

04 Distribution and marketing

05 Financials

06 Looking ahead

80 West Africa investor event //13 and 14 May 2014

81 West Africa investor event //13 and 14 May 2014

Introduction and Overview

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Country overview

Population 24,3m Market sizing 23,4m (2014) Penetration 81%

Key economic data

GDP per US$ 1 302 capita

Inflation 2.5 % (2013 headline rate)

Commercial banks' prime 10.5% (average) lending rate EUR = 655,957 XOF pegged to Exchange EUR since 1994 rate USD = 475,68 (Group finance closing rate Dec 2013)

Demographic information

Language French, several local languages

Religion Christian, Muslim, Animism

82 West Africa investor event //13 and 14 May 2014

83 West Africa investor event //13 and 14 May 2014

Market overview

Political Peace and Reconciliation process started in 2011 Improved conditions on the ground Slow progress to date New general elections planned for October 2015

Economic capital of Côte d’Ivoire is becoming again the “capital” of the WAEMU Economic Infrastructure investments made by the Government due for completion in 2014;  North motorway “Third bridge”  Abidjan – Grand Bassam motorway Designed to ease traffic congestion New investment code to attract foreign investment Economy is on a steady growth path (GDP growth rate estimated at 8.9% in 2013)

Regulatory New regulatory framework since March 2012,  New telecom bill adopted and promulgated in August 2012 New licences adopted by decree in March 2014, still to be gazetted Additional tax burden on Telco sector Pressure on interconnect rates

Mobile network operators – April 2014

MTN ORANGE MOOV KOZ GREEN CAFÉ MOBILE

Launch date July 2005 May 2002 2006 2007 2008 2012 (1996 former Loteny) (1996 former Ivoiris)

Subscribers 7 521 084 7 129 136 3 583 404 946 508 275 161 432

Market share 38,7% 36,6% 18,4% 4,9% 1,4% 0,002%

Shareholders MTNI (66.83%) Orange Group (85%) Etisalat (100%) Not disclosed Lybia Africa Portfolio Niamoutié Télécom Planor Capital SIFCOM (15%) International (25.33%) Planor Afrique Holding (0.84%) Teylium group (7%) Initiatives New Value Week end promotions New Value Prepaid roaming New packages for Proposition for Fun Intense Proposition for youth International unlimited call, sms prepaid customer MaLife card segment promotions and internet Week end promotions Bonus Zone Moov cash (sms Internet promotions game) Moov select International promotions Technology 2G 2G 2G 2G 2G 2G 3G 3G 3G Wimax ADSL CDMA CDMA EVDO FIX LINES

84 West Africa investor event //13 and 14 May 2014

85 West Africa investor event //13 and 14 May 2014

Licences and Network

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Licences

GSM operator license – Apr 1996 to Apr 2016 Licence / spectrum 900-1800 MHz spectrum 3G Operator license – 10 years from 2012 to 2022 1900 – 2100 MHz spectrum

Upfront fees 2G licence cost - CFAF 40 billions paid in 2009 3G licence cost - CFAF 6 billions paid in 2012

No coverage obligation under GSM licence Obligations All the other obligations are listed in Cahier des charges Coverage requirements including voice and data were stipulated in 3G license with a planning period of six years

GSM  627 localities covered Coverage  3500 km of FO Territory - 75,50% & population - 93,30% 3G - 15 cities covered, 228 BTS Wimax – 24 cities covered, 196 BTS

CDMA – 3 cities covered, 77 BTS 8

86 West Africa investor event //13 and 14 May 2014

87 West Africa investor event //13 and 14 May 2014

2G Radio network rollout

Operational BTS: • 1 178 sites • 3 500 km’s of Optic Fibre • 7 MSC’s and 10 BSC • 627 cities and villages

Planned - 234 sites

− 29 capacity and coverage extension, 20 road coverage, 185 new coverage

• Colocation and infrastructure sharing and fibre deployment to support multi bearer services

3G network rollout

• 3G - 228 sites

• Planned: 105 new sites to improve Coverage in Abidjan and major cities (Yamoussoukro, Bouake, Daloa, Korhogo, Duekoue, Gagnoa, Man, SanPedro) and 8 new localities

• Services

− Mobile Internet

− VoIP

− Prepaid & Postpaid

− L2VPN

− Video Call

88 West Africa investor event //13 and 14 May 2014

89 West Africa investor event //13 and 14 May 2014

Strategy

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Brand strategy

Network perception and experience

Leading the HV & Business digital services engagement

Superior customer Pillars5 to build Uplifting of country experience and community leadership

90 West Africa investor event //13 and 14 May 2014

91 West Africa investor event //13 and 14 May 2014

Management team

Wim VANHELLEPUTTE Chief Executive Officer

Hyacinthe SEKA Dominique DESPOISSE Jean Michel CHANUT Awa DIARRA Chief Technical Chief Financial Chief Marketing Officer General Manager Officer Officer Customer Relations

Jocelyn ADJOBY Moïse SASSO Eloge BEONAO Gérard LOKOSSOU General manager General Manager Human Chief Information General Manager Corporate Services Resources Officer Services & Distribution

Jérôme CURTIS Dominique REMARCK Lynda AHUI General Manager General Manager General Manager Capital Programs MTN Business Business Risk Management

Data

Customers 76 037 subscribers at March 2014

3G Products EVDO CDMA WIMAX WACS, Fiber, Interconnection

92 West Africa investor event //13 and 14 May 2014

93 West Africa investor event //13 and 14 May 2014

Distribution and marketing

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Products and services

Product Customer Benefit Segment Mobile Broadband Mobile high speed connection to internet Achievers, Progressives, Traders, (EVDO, Wimax, 3G USB Dongle) Trendies

Residential High Speed connection to Internet Achievers, Progressives, Traders Broadband (Wimax CPE) MTN Play Mobile Multimedia portal for entertainment, Trendies, Achievers, Progressives infotainment and device customization (VOD, Wallpaper, ringtone, RBT, SMS feeds)

Mobile Money Transfer (national and International) and Survivor, Traders, Progressives, receive Money at the best cost, bill and goods Achievers payment, saving and Virtual Top Up

Phonebook Backup Secure phonebook and don’t loose contacts Traders, Progressives, Achievers by Over the Air Backup

Pay 4 Me Make a call, 3rd Party pays for it Survivor, Progressives

94 West Africa investor event //13 and 14 May 2014

95 West Africa investor event //13 and 14 May 2014

Products and services

Product Customer Benefit Segment Xtra Proche Voice Bundle that offer 60 min from 6 AM to 5 Trendies PM

SMS bundle 500 SMS on net available during 1 day Trendies

Smart Bundle Enjoy 120 min off net, 200 sms and 400 MB Achievers, Progressives Zen

Smart Bundle Enjoy 360 min off net, 1000 sms and 1000 Traders, Progressives, Achievers Intense MB

Financials

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

96 West Africa investor event //13 and 14 May 2014

97 West Africa investor event //13 and 14 May 2014

Revenue analysis

Airtime revenue Total revenue (millions) ‒ Enhanced value proposition 2012 (XOF 256 bn) ‒ Booster, targeting prepaid campaign with CLM program, 30 % bonus on top up for the Second price plan, extension of free night call hour 3% 2013 (XOF 279 bn) from 2PM to 10 PM 200 000 Interconnect revenues ‒ Increase (+13%) due to new flat plan offering by our competitors (following the decreases of the Interconnect 160 000 rate from 32 FCFA to 30 FCFA) ‒ Increased ITR 120 000 Data ‒ 3G launched in Dec-12 ‒ In 2013 launched attractive bundle offers and intensified 80 000 our presence on this segment with aggressive promotions 13% (Galaxy pocket, Week end Magic, Blackberry package,…) 40 000 46% Mobile money 45% 9% 260% ‒ Revenue of mobile money increased 260% with the improvement of our footprint (merchant, new products and 0 tactical promotions Others ‒ Increase due to revenue from handset sales Mobile money

‒ Focus on high value handsets Data Revenue Other Revenue Other Incoming Revenue Outgoing Revenue Outgoing SMS/MMS Revenue

Cost of sales analysis

Interconnect and roaming Total costs (millions)

‒ Rise of the interconnect cost in line with our of net strategy 2012 (XOF 82 bn) to drive revenue value (+25% traffic increase) and new ISP Costs 2013 (XOF 96 bn) activity of wholesales International carrier services Commissions Roaming Connection Incentives ‒ Increase mainly due to Revenue trend . In addition, some exceptional incentives have been granted in 2013 to Cost of material and eq encourage dealers and secure our revenue VAS cost Handset costs Recharge Vouchers Sim Cards & Sim Packs ‒ Resulting to the policy of intensification of high cost handsets and accessories to increase our data penetration Regulatory fees

Revenue Share

Handsets

Interconnect

Commission

- 10 20 30 40 50

Thousands

98 West Africa investor event //13 and 14 May 2014

99 West Africa investor event //13 and 14 May 2014

Opex analysis

Staff costs Total Opex (millions)

‒ Impacted by increase are voluntary departure plan 2012 (XOF 71 bn) implemented as special impact on 2013 2013 (XOF 70 bn) ‒ NSO and annual gratifications increase Provision for Doubtful Debts

Network operating expenditure Professional and Consulting Travel and Entertainment ‒ The cession of 911 technical sites during April 2013

‒ Tower co transaction (single cost for power, maintenance MTN Foundation and security) Management Fees

Marketing costs reduced General

‒ Resulting in cost savings Salaries and Staff Costs

Rent and Utilities

Maintenance

Transmission expense

Advertising Promo and PR

‐5 ‐ 5 10 15 20 25 Thousands Opex excludes impact of tower sale 21

Capital trends

XOF (million)

70 000 35%

60 000 30% 29%

50 000 25%

22% 21% 40 000 20%

16% 30 000 60 152 15% 54 758 12% 44 053 44 367 20 000 10%

25 798 10 000 5%

0 0% 2009 2010 2011 2012 2013 Capex Capex to Revenue %

100 West Africa investor event //13 and 14 May 2014

101 West Africa investor event //13 and 14 May 2014

Looking ahead

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Looking ahead

Opportunities IHS Tower deal to improve our coverage Global license (renewal) discussions New value proposition launch during March and giving good results ‒ Growing revenue streams ‒ Mobile money : Changing customer behavior ‒ Launch new services and fully embed Momo into the trade and push airtime sales via Momo ‒ 3G to drive data penetration via promotions, smart bundles and improved and expanded 3G coverage ‒ FTTX and FTTB: Fibre optic network in completion to easy get the last miles to the building ‒ VAS:Launch new services and drive penetration of existing services

Challenges New taxes place additional financial pressures and margin erosion

102 West Africa investor event //13 and 14 May 2014

103 West Africa investor event //13 and 14 May 2014

thank you

Notice

104 West Africa investor event //13 and 14 May 2014

105 West Africa investor event //13 and 14 May 2014

Cote d’Ivôire

Income statement (LC)

% XOF (‘000) 2013 2012 change

Revenue 279 519 664 256 386 090 9%

EBITDA 144 899 307 103 608 434 40%

EBITDA margin (%) 52% 40% 30%

Depreciation & amortisation 32 084 339 31 567 194 1%

Net finance costs 1 575 668 3 876 è09 -15%

Profit before taxation 111 239 300 68 164 532 63%

Income tax expense 19 841 302 16 581 956 20%

Profit after taxation 91 397 998 51 582 575 77%

Cote d’Ivôire

Balance sheet (LC)

XOF (‘000) As at Dec 2013 As at Dec 2012

Non-current assets 196 947 166 143 657 531 Property, plant and equipment 143 645 475 143 657 531 Intangible assets 47 829 169 51 704 032 Other non-current assets 5 472 522 6 210 365 Current assets 85 338 938 110 123 412 Bank and cash 32 537 195 29 015 685 Other current assets 52 801 743 81 107 727 Total assets 282 286 104 311 695 340 Capital and reserves 132 470 007 149 205 842 Non-current liabilities 3 854 108 4 686 498 Long term liabilities 1 356 017 14 120 122 Deferred taxation and other non-current liabilities 2 498 091 4 239 098 Current liabilities 145 961 989 144 130 275 Non–interest bearing liabilities 142 954 028 70 368 852 Interest bearing liabilities 3 007 961 73 761 422 Total equity and liabilities 282 286 104 311 695 340

106 West Africa investor event //13 and 14 May 2014

107 West Africa investor event //13 and 14 May 2014

Funding structure

Facility

Syndicated loan ‒ MXOF 76142 (Equ Mons USD 146) fully repaid in MAR13

* USD rate : 1USD=520 XOF

MTN Foundation

General Launched in 2006 and setting up as a separate legal entity in 2013 Mission ‒ building a better future for the populations by investing within our communities MTN Foundation long-term projects implementation but also through CSR initiatives involving all staff Strategy based upon carrying out activities in collaboration with the Health and Safety Department, hence securing full involvement and interest of staff for CSR issues

Win the hearts and minds of the rural and city community as a concerned and involved Objectives corporate citizen Increase competitive edge in the market by demonstrating clear leadership in consistent, successful and sustainable CSR project execution : MTNCI Foundation has positioned itself as the first telecoms operator involved in CSR Associate MTN name and brand associated with positive community change and development, essentially in rural remote area

Projects MTN Foundation projects strategic area of intervention include : ‒ Education: school connectivity program implementation and development at national level, in partnership with High Schools and Universities and the Ministry of Education ‒ Public health : prevention of HIV/ AIDS and malaria through testing activities, sensitization and information campaign for a behavior change ‒ Community development through developing activities for women’s empowerment and entrepreneurship 30

108 West Africa investor event //13 and 14 May 2014

109

West Africa investor event Nigeria presentations 13 and 14 May 2014

Say goodbye to analogue and say welcome to digital. Welcome to the Bold New Digital World. West Africa investor event //13 and 14 May 2014

WEST AFRICA INVESTOR EVENT CEO’s Overview - Nigeria

Agenda

01 Country and market overview

02 MTN Nigeria

03 Licences and coverage

04 Performance review

05 Looking ahead

112 West Africa investor event //13 and 14 May 2014

113 West Africa investor event //13 and 14 May 2014

Country and market overview

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Country overview

Population 170m Market sizing 141.9m (2014) Population Penetration 68% Penetration into addressable market 89%

Economics

GDP per capita USD 2,258

Inflation Source: NBS 7.8%

Commercial banks' Maiduguri prime lending rate Kano Source: CBN 16.69%

Exchange rate LC/USD = 162 Source: Interbank Market 30 April 2014

Maiduguri Demographics j English, several local Language languages

Major religions Christian and Islam 4

114 West Africa investor event //13 and 14 May 2014

115 West Africa investor event //13 and 14 May 2014

Market overview

Security challenges in the northern Nigeria Political environment Multiple taxation demands from various states and local government agencies Criticism of government on security, infrastructural development and job creation Power shift from the ruling party to emerging opposition (National Assembly members cross carpeting)

GDP growth of 6.81% in Q313, higher than 6.18% recorded in the prior quarter and 6.48% Economic environment in the corresponding period of 2012 The Monetary Policy Rate (MPR), the benchmark interest rate set by the monetary authority was stable at 12% during the year Foreign reserve declined from its peak in April to close the year @ US$38.7bn, driven by strong dollar demand and declining oil production Headline inflation remained stable, maintaining the single digit target of the CBN. Closed the year at 8%. 90- day NIBOR rose to a peak of 40% in Q313, reflecting the adjustment to public sector CRR from 12%-75%

Ban on SIM sales in March 2014 Regulatory environment Regulatory activism on Quality of Service (QOS) Regulator’s focus on Telecoms issues around Rights of Way Review of Interconnect Rates which fixed asymmetric interconnect rates in favour of new entrants and imposition of Off-net price cap NCC fined Telecoms Operators for poor QOS and promo bans now lifted for all operators Proposals for mandatory listing of Telcos’ shares on the Nigerian Stock Exchange The Central Bank of Nigeria: Mobile Payments Services

Market dynamics

Socio-economic opportunities

• Growing middle class with higher spending base • Aspirational lifestyle and propensity for premium purchases • Attraction of FDI as a result of rebased GDP • Renewed focus for vertical integration in emerging sectors (e.g. Nollywood) • Digital music distribution • Growth in the SME space • Potential for business growth with a National database • Evolution of e-commerce (MTN Financial Services, Mobile Money, Payment Gateway etc.)

116 West Africa investor event //13 and 14 May 2014

117 West Africa investor event //13 and 14 May 2014

Mobile network operators

December 2013

MTN Airtel Glo Etilsat Launch date 2001 2001 2003 2007

Subscribers (m) 57.2 23.3 18.6 17.0

Market share (%) 49.17 20.04 16.02 14.67

Shareholders • MTNI (78.83%) • Airtel (79.1%) • 100% local • EMTS (40%) • Private (21.17%) • Private (20.9%) shareholding • Mabadala (30%) • PTHL (30%)*

2014 Telecoms Market update:

– Aggressive Below-the-Line offers as a result of promo ban/stoppage of SIM sales

– Increase in the number of personalised BTL offers, as operators’ drive for lower dormancy as a result of ban of headline usage-stimulating promotions.

– NCC concerned about physical security of telecoms infrastructure across Nigeria and the impact on network quality

– Auction of License 2.3GHZ and only Globacom submitted a bid

MTN Nigeria

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

118 West Africa investor event //13 and 14 May 2014

119 West Africa investor event //13 and 14 May 2014

Shareholders and board of directors

MTN Group Board of directors 78.83% P Dozie (Chairman)

MTN Reps Individual local R S Dabengwa P Norman shareholders B Goschen J Desai 8.72% Executive Directors Shareholders M Ikpoki (CEO) A Bing (CFO) through private placement(OTC) Non-executive Directors P Dozie V Odilli 9.77% M S Bello G Oyebode A Dasuki F Jakoet (INED)* Shanduka B Folawiyo Audit and Risk Management Committee 2.68% F Jakoet (Chairman) (INED)* MTN Reps B Goschen Non-executive Directors MTN Nigeria B Folawiyo

*Independent Non- Executive Director 9

Management team

Michael Ikpoki Chief Executive Officer

Lynda Saint-Nwafor Andrew Bing Ugonwa Nwoye Larry Annetts Chief Technical Chief Financial Customer Relations Chief Marketing Officer Officer Officer Executive

Wale Goodluck Amina Oyagbola Charles Molapisi Babatunde Osho Corporate Services Human Resources Chief Information Chief Enterprise Executive Executive Officer Solutions Executive

Omatsola Barrow Cyril Ilok Sales & Distribution GM, Business Risk Executive Management

120 West Africa investor event //13 and 14 May 2014

121 West Africa investor event //13 and 14 May 2014

Licences and coverage

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

Licences & coverage

Licences & Spectrum Digital Mobile Licence (DML): February 2001 – January 2016 Unified Access Service License (UASL): September 2006 – August 2021 3GHz Spectrum: May 2007 – April 2021 International Submarine Cable (WACS): January 2010 – January 2030 Wimax 3.5GHz Spectrum: 2007 and renewable annually

3,078 cities, towns and villages in all 36 states of the federation, including the Coverage Federal Capital Territory (FCT) 86.46% geographic coverage 89.24% population coverage

122 West Africa investor event //13 and 14 May 2014

123 West Africa investor event //13 and 14 May 2014

Radio network rollout

BTSs

Network coverage

124 West Africa investor event //13 and 14 May 2014

125 West Africa investor event //13 and 14 May 2014

Data coverage

Fibre Network

Performance review

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

126 West Africa investor event //13 and 14 May 2014

127 West Africa investor event //13 and 14 May 2014

Operational highlights

Launched Aug 2001 Market share 49.17% (Q4 ‘13) Population 170m Market sizing 141.9m (2014) SIM Penetration 64%

ARPU as at December 2013 was Subscribers (‘000) MTN Subscribers (‘000) / ARPU ($) NGN 1,190 ARPU (USD)

47 440 57 224 47 441 Represents 14.23% decrease compared to 38 669 41 641 December 2012

12 11 9.8 8.7 7.8 ARPU dilution due to Dec-10 Dec-11 Dec-12 Dec-13 Mar-14 - deeper penetration into the bottom of the Outgoing MOU 53 48 55 70 pyramid Net additions H1 - tariff reduction and aggressive offerings from (‘000) H2 competition 9,325 7,842 *1,528

5,800 3 612

2,973 4,257 7,797 4 230 1 101 1 872 1,543 458 Dec-10 Dec-11 Dec-12 Dec-13 Mar-14 * 2013-Very high churn rate in H2. Gross connection was ~14million, while churn was ~12.5million 17

Effective rate per minute (NGN)

28.10 28.21

22.20

14.98

10.05

2009 2010 2011 2012 2013

128 West Africa investor event //13 and 14 May 2014

129 West Africa investor event //13 and 14 May 2014

MOU VS ERM($)

0.07 0.07 0.06 0.06 0.06

14 588 14 243 14 509 13 672 13 146

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 MOU (Millions) ERM($)

Infrastructure highlights

Power equipment upgrades / optimisation / Capex replacement at switching centres, BTS, NGN (bn) Fibre and other high priority sites across

the country 300 258 180 129 96

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13*

Capex as % of 30.3 13.8 16.7 30.3 revenue BTS Rollout Rolled out 5,371 BTS (2G & 3G sites) within 15 months

5 371

2 589 1 984 1 220 983

Dec-09 Dec-10 Dec-11 Dec-12 Mar-14

130 West Africa investor event //13 and 14 May 2014

131 West Africa investor event //13 and 14 May 2014

Network infrastructure

Network Infrastructure Dec-11 Jun-12 Dec-12 Mar-14

2G BTS Sites (Cumulative) 7,046 7,600 8,457 11,662

3G BTS Sites (Cumulative) 2,074 2,636 3,250 5,416

Number of km of fibre rolled out (Cumulative)

Backbone Metro (Cumulative) 9,077 9,169 9,738 11,582

Fibre to site (Cumulative) 152 152 1,513 1,551

BH Erlang carried by the Network 596,554 557,511 779,194 840,435

Looking ahead

Say goodbye to the briefcase and say welcome to the tablet. Welcome to the Bold New Digital World.

132 West Africa investor event //13 and 14 May 2014

133 West Africa investor event //13 and 14 May 2014

Looking ahead

Re-connecting the brand with customer aspirations

From Capacity Constrained Competing on Price & Promotions

‘Grudgingly Admired’ Brand

Dominant Telecoms Operator

From Employer of Choice

To Optimised Network & Technology Assets Trusted Brand Leading on Value Delivery & Innovation beyond Traditional Telecom

‘Loved & Admired’ Brand

Critical Agent for Economic Development

Company PRIDE & Passion

thank you

134 West Africa investor event //13 and 14 May 2014

135 West Africa investor event //13 and 14 May 2014

Notice

136 West Africa investor event //13 and 14 May 2014

137 West Africa investor event //13 and 14 May 2014

West Africa Investor Event Financial Overview - Nigeria May 2014

Key performance matrix

Revenue (N'bn) Costs Nbn (COS+Opex) EBITDA Nbn

Data Revenue (Nbn) Data % Revenue EBITDA Margin

138 West Africa investor event //13 and 14 May 2014

139 West Africa investor event //13 and 14 May 2014

Revenue analysis

• Implementation of various strategic and marketing initiatives by the business in order to remain competitive in the market

• 20% growth in the RGS90 over FY 2012 (from 47.44m in 2012 578.9 to 56.77m in 2013)

541.3 • MOU during the period grew by 54.6% (from 36.5bn billed minutes in 2012 to 56.5bn billed minutes in 2013)

• Retail Roaming increased by 1.8% in 2013 compared to 2012 as a result of different promotional offers which included the Hajj special promotion, reduction in roaming GPRS tariff and various retail rates review which increased usage over the previous year

• Data revenue increased by 9.9% between 2012 and 2013 due to business drive to enhance data uptake and usage via social Goody bag offer, device data bundle offers and blast data compression application and device financing acquisition framework

• Interconnect revenue dropped by 23.0% from N92.3bn in 2012 112.2 102.1 92.3 to N71.1bn in 2013. This was largely due to 40.2% slash in the 71.1 Mobile termination rate (MTR) from N8.20 to N4.90 by Nigerian Communication Commission (NCC) which became effective in 31.4 17.8 March 2013

• Reduction and capping of SMS rate at N4 by NCC during the Airtime & Interconnect Data Others Subscription year 2013

Total revenue 2013 (N794bn) 2012 (N754bn) 3

Interconnect analysis NGN bns

100.0 91.7 92.3

80.0 72.0 66.8 71.1 59.4 59.8 60.0 49.6 49.0 38.6 40.0

20.0

0.0 2009 2010 2011 2012 2013

Interconnect Revenue Interconnect Cost

Net Interconnect Revenue

46.93

30.23 26.03 24.58

11.25

FY'09 FY'10 FY'11 FY'12 FY'13 4

140 West Africa investor event //13 and 14 May 2014

141 West Africa investor event //13 and 14 May 2014

Opex

• Facilities cost

• Grew as a result of increase in average rent caused

57.5 by upward review of BTS lease rentals in respect of inflation as contained in the contract signed with Helios Towers and I.H.S 47.7 47.8 • Marketing costs 40.8 Brought in-house some project initiatives previously 33.9 outsourced to consultants. Some of these include: • Use of innovative media deployment • Short duration Adverts

20.4 • In-house consulting projects 19.4 18.0 17.8 • Use of internal staff for research purposes

• Professional Fees

• Reversal of management fees provision (N34b) 2.4 was primarily responsible for the decline between Facilities Marketing Prof Fees Maintenance Others the periods

• Maintenance costs

Total Opex • Increased provisions made for claims by some site maintenance contractors who exited SIMS due 2013 (NGN 145bn) 2012 (NGN 161bn) 5 to managed service

EBITDA and key drivers

EBITDA increased by 9.5% between 2012 and 550 100% 2013 due to:

500 90% • Growth in average daily revenue by 7.14% from 450 80% N12.6bn in H1 to N13.5b in H2 of 2013

400 70% • Cost containment strategies 61% 58% • Reversal of management fees provision amounting 350 60% to N34bn during the period

300 50%

N481b Normalised EBITDA margin 55,4% excluding 250 40% N440b management fee reversal

200 30%

150 20%

100 10%

50 0% 2012 2013

EBITDA EBITDA margin

142 West Africa investor event //13 and 14 May 2014

143 West Africa investor event //13 and 14 May 2014

Tax reconciliation

Material reconciling items: 32% 32% 32% Effective tax rate reconciliation 30.2%

• Company’s Income Tax 18.9% 30% • Education tax 2.7%

• Deferred Tax 8.9%

• Donations to MTNF 0.1%

• Prior year Tax Overprovision (0.4%) 27%

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13

Income statement NGN bns

% Change 2013 2012 2011 FY’12 V FY’13

Revenue 794 754 5.3% 758

EBITDA 481 440 9.3% 468

EBITDA Margin % 61% 58% 2.2% 62%

Depreciation (128) (110) (17.0%) (104)

Amortisation (13) (10) (27.2%) (8)

Profit from operations 339 320 6.1% 359

Finance cost (29) (14) (>100%) (18)

Profit before tax 311 306 1.6% 341

Income tax expense (94) (83) (13.6%) (109)

Profit after tax 217 223 (2.8%) 232

Effective tax rate 30.2% 27.1% (3.2%) 32.0%

CAPEX as a % of Revenue 29.4% 34.3% (4.9%) 17.0% 8

144 West Africa investor event //13 and 14 May 2014

145 West Africa investor event //13 and 14 May 2014

Balance sheet NGN bn

2013 2012 2011 Non-current assets 714 622 497 Property, plant & equipment 637 552 436 Intangible assets 38 37 36 Non-Current Prepayments 39 32 25 Current assets 247 158 334 Bank balances 145 36 107 Restricted cash 4 34 2 Other current assets 98 88 226 Total assets 961 780 831

Capital and reserves 202 170 175 Non-current liabilities 470 249 280 Borrowings 351 157 180 Deferred taxation and other non-current liabilities 119 92 100 Current liabilities 289 361 376 Borrowings 26 76 83 Taxation 67 90 108 Other current liabilities 196 195 185 Equity and liabilities 961 780 831 9

Key Nigerian economic indicators

200 30

160

120

0 15 2005 2006 2007 2008 2009 2010 2011 2012 2013 USD:NGN ZAR:NGN *Rates are year-end rates

14% 13% 13% 12% 12% 11% 11% 10% MPR 9% 10% INFLATION 90-DAY NIBOR 8% 9% 30-DAY NIBOR 90-DAY NITTY 7% 8% 6% 30-DAY NITTY 7% 5% 4% Jul-13 Jan-13 Oct-13 Jun-13 Apr-13 Feb-13 Mar-13 Dec-13 Sep-13 Aug-13 Nov-13 May-13

Source: Rates from Nigerian Interbank Market; fdhlanalytics 10

146 West Africa investor event //13 and 14 May 2014

147 West Africa investor event //13 and 14 May 2014

Funding analysis

MTN Nigeria has a loan portfolio with a consortium of local banks and foreign banks

Restructured & • NGN329.25bn term loan facility Additional Local • 6.5 years tenor Currency Facility • Repayable in 9 equal semi-annual installments from November 2015 – November 2019 • US$280m term loan facility New Foreign Loan • 6 year tenor Syndication Facility • Repayable in 10 equal semi-annual installments from October 2014 – April 2019 • US$300m foreign currency buyer’s credit for purchase of Huawei equipment New Buyer’s Credit • 6.5 year tenor Facility • Repayable in 9 equal semi-annual installments from July 2015 – December 2019 • US$300m foreign currency term loan facility linked to Ericsson equipment purchases New ECA-Backed • 95% Comprehensive cover provided by EKN of Sweden Facility • 6.5 year tenor • Repayable in 12 equal semi-annual installments from February 2014 to August 2019 • US$250m foreign currency term loan facility linked to Ericsson equipment purchases Old ECA-Backed • 95% Comprehensive cover provided by EKN of Sweden Facility • 5 year tenor • Repayable in 8 equal semi-annual installments as of Dec 2011 – Jun 2015 • US$188m foreign currency buyer’s credit for purchase of Huawei equipment Old Buyer’s Credit Facility • 5 year tenor • Repayable in 7 equal semi-annual installments from June 2012 – June 2015 • Net debt/EBITDA – Not more than 2.5x Loan Covenants EBITDA/Net interest payable - Not less than 5.0x • 11

Thank You

148 West Africa investor event //13 and 14 May 2014

149 West Africa investor event //13 and 14 May 2014

MTN Nigeria Distribution network strategy

Agenda

. Route to market

. Direct vs Indirect

. Trade commission strategy

. Device trade channel strategy

. Innovation

. Key challenges

. Looking ahead

150 West Africa investor event //13 and 14 May 2014

151 West Africa investor event //13 and 14 May 2014

Route to Market Focused on increasing direct to retail distribution

96% of products go through 81 TPs to their New Dawn Shops and telecom family, and the other Partners within their respective territories. Walk-in and Convenience channels handle 4%

MTN Nigeria

96%

81 Trade Partners 1% 3%

60%

4,200 STP 5% Walk-In Convenience Channel Channel 35%

Non traditional Partners (74)

1% 3%

480,000 Registered Retailers

Direct and indirect channels

MTN Nigeria

INDIRECT DIRECT (86%) (14%)

Non- Traditional traditional

Data partners Plus 81 Trade Partners Data Partners

Convenience Channel Partners SIM Reg. Agencies

OEMs

152 West Africa investor event //13 and 14 May 2014

153 West Africa investor event //13 and 14 May 2014

Our 81 territories

32 North Region . Stand alone location exclusively managed by one trade partner North Region . TPs’ developed extensive points of presence within the territory Lagos/SW Region . TP to drive full suite 27 of MTN business in the territory 22

East Region

Trade Commission Strategy

Driving business efficiency with 6% Cost of Sales (CoS)

UPFRONT BACK-END 5% 1%

Backend commission is based on the TPs Card load with own territory aimed at driving territory ownership and coverage

154 West Africa investor event //13 and 14 May 2014

155 West Africa investor event //13 and 14 May 2014

Device trade channel strategy

7,1m 3G devices on network 1 2 3 4 Data Partners & Trade Partners Walk-in Centres Connect Stores Data Partner Plus

APPROACH Trade in: All Device Dongles Overall Strategy Data Service offerings

OFFERS (VALUE PROPOSITION) Sims to drive Purchase Sims at 50% Purchase Sims at 50% Purchase Sims at device Not Applicable discounts directly from discounts 50% discounts activations MTN. Upfront Discount on 5 - 9% upfront discount 5 - 9% upfront 5 - 9% upfront Not Applicable devices & data on. RRP discount on. RRP discount on. RRP dongles Gift items reward Activation N250 per active N250 per active N250 per active device incentive for store Bonus (One Off device on the device on the on the network. personnel for driving payment) network. network. device sales Monthly Data 5% of total data 5% of total data Bundle Loyalty 5% of total data bundle. Not Applicable bundle bundle Bonus

Device trade channel strategy (continued)

7,1m 3G devices on network 5 6 7 Data Sales Consultants Device Resellers OEMs

APPROACH Create device and data Drive bundling of MTN Sims Drive devices pull from Partners Overall Strategy awareness via data and with consumer proposition in via device sales at retail. device exhibitions their distribution channels . OFFERS (VALUE PROPOSITION) Sims to drive Have free sims via data TMCs Free SIMs issued at zero cost Free sims issued at zero cost device to drive device activations and monitored and monitored activations during exhibitions.

Upfront Discount Earn up to N50,000 N200 per active device on the Not applicable on devices & additional commission on network. data dongles salary .

Activation Bonus Not applicable (One Off Not applicable Not applicable payment)

Monthly Data Not applicable Bundle Loyalty Not Applicable Not applicable Bonus

156 West Africa investor event //13 and 14 May 2014

157 West Africa investor event //13 and 14 May 2014

Driving device after sales support

74 Tech Squad Agents providing after sales services and technical support.

Over 200,000 customer engagement yearly influencing device sales and data revenue of over NGN400 million.

Transfer of knowledge and skills to in-store personnel to breach customer service issues

Using DI-ARD to deliver on our device strategy

• Procurement • NPI Management • Forecasting & Ranging • Global Price • Device Testing • Supply & Inventory Benchmark Management Management • Competitive RRP • Regulatory (Type • Warehousing & Approval) Logistics

Supply Chain Strategic New Product Planning & Sourcing Introduction Operations

• Device contribution • Order Mgt. (B2C & • Repairs margin mgt. B2B) • Off shoring (Buy back) • Marketing intelligence • Store Merchandizing • OEM Warranty & • Product Lifecycle Mgt. • Promotion & Dealer Claims Mgt. Support • POS Inventory Mgt. Reverse Device Lifecycle Channel Logistics & After Management Operations sales

158 West Africa investor event //13 and 14 May 2014

159 West Africa investor event //13 and 14 May 2014

Innovation Tapping into New Growth Opportunities

• Engagement with high Retail Chains, Malls, Parks and HoReCa

• Already signed on: - TransferTo - Tranglo - Ezetop

Key Challenges

Socio-political . Affecting mostly key cities in North Eastern part, gradually Challenges spreading to the entire Northern cities affecting distribution

. Network quality issue occasioned mostly by sabotage like Network Coverage and Quality fiber cuts affecting network availability and usage

. Competition structuring better and offering competitive

Competition trade incentives putting us under pressure.

. Volume from MTN compensates for this for now.

160 West Africa investor event //13 and 14 May 2014

161 West Africa investor event //13 and 14 May 2014

Looking ahead

Proactively drive the sales of devices, focusing on new & existing distribution channels

Point of Sales dominance through our Winning at Retail initiative and Trade Marketing capabilities

Use SIM registration as tool for competitive advantage

Achieve the Look and Feel of a market leader across our trade channels.

Maximize opportunities in new frontiers. (Rural coverage, Mobile Money)

Strong Sales and Distribution talent pipeline

Thank You

162 West Africa investor event //13 and 14 May 2014

163 West Africa investor event //13 and 14 May 2014

West Africa Investor Event NWG Presentation May 2014

1. Operating environment and highlights

2. Network Evolution: Technology, Capacity, Quality, CAPEX

3. Network Performance

4. Innovation

5. Managed Services

6. Operational Challenges

7. Focus in 2014

2 Presentation Confidential between MTN and audience

164 West Africa investor event //13 and 14 May 2014

165 West Africa investor event //13 and 14 May 2014

Introduction of Mobile Number Portability;

Declaration of MTNN by the NCC as the dominant operator in voice and leased lines;

Higher traffic volumes following increased price competition;

Tariff harmonization and reduction (on‐net and off‐net)

Operational challenges around telecom infrastructure destruction and theft, security in the North and declining public power availability and supply continue to impact adversely on operations in the sector.

Highlights ‐ Approx. 40% increase in Radio Network Capacity ‐ 1,607 3G Sites ‐ 2,743 2G Sites ‐ Deployment of 3G Services to 15 new cities ‐ Implementation of Customer Experience Improvement (P10) Initiative

3 Presentation Confidential between MTN and audience

2008 2009 2010 2011 2012 2013 Incremental changes were made in the HSPA+ technology domain Access HSPA . fixed‐mobile convergence and Technology UMTS . subscriber management systems GPRS (HLR‐UDC); GSM Focus was on improving operational efficiencies with Managed Services.

4,000 (2G , 3G) sites added Traffic Growth . 40% increase in Radio Network and Capacity Capacity Utilization . 150,000 Erlang busy Hour traffic growth Dec'08 Dec'09 Dec'10 Dec'11 Dec'12 Dec'13

Peak Traffic Peak Capacity

6% 98% QoS parameters were well within 96% 5% defined NCC Targets with marked 94% 4%

Cong. 92% improvement from 12‐Months earlier. Network 3% CSSR TCH 90% 2% Quality 88% DCR, 1% 86% 0% 84% Dec'08 Dec'09 Dec'10 Dec'11 Dec'12 Dec'13 TCH Congestion DCR CSSR

4 Presentation Confidential between MTN and audience

166 West Africa investor event //13 and 14 May 2014

167 West Africa investor event //13 and 14 May 2014

The cost of network development in 2013‐ CAPEX and previous years is a reflection of MTNN’s continuous

commitment to delivering superior network quality and enhance customer experience.

3‐ Year CAPEX review

NETWORK CAPEX CAPITALIZATION TREND: 2011 ‐ 2014

CAPEX March FY14 Dec' 31 st FY13 Dec' 31 st FY12 Dec' 31 st FY11 Total Available Budget ‐ N'bn 149.07 346.14 254.02 143.51 Capitalisation ‐ N'bn 22.62 228.12 180.28 115.36 Capitalisation per Type: ‐ Enterprise Solutions 0.28 2.86 3.13 2.16 ‐ Access Network 17.05 163.96 136.99 76.85 ‐ Network Operations 1.15 13.48 9.44 13.81 ‐ Core Network 4.15 47.83 30.72 22.54 TOTAL 22.62 228.12 180.28 115.36

5 Presentation Confidential between MTN and audience

1.2 . Uniform network 1.0

deployment and traffic Erlang 'M 0.8

growth profile 0.6

0.4 Jan‐13 Feb‐13 Mar‐13 Apr‐13 May‐13 Jun‐13 Jul‐13 Aug‐13 Sep‐13 Oct‐13 Nov‐13 Dec‐13 Installed Capacity Actual Offered Erlang

SDCCH_CONG TCH_CONG . Subscriber usage 1.50 2.50 2.00 1.00 promo was run in May: 1.50 1.00 0.50  Slight increase in congestion 0.50 0.00 0.00 JUL'13 JUL'13 SEP '13 FEB'13 SEP '13 JAN'13 FEB'13 JUN'13 JAN'13

and dropped call rates APR'13 DEC'13 OCT'13 JUN'13 DEC'13 APR'13 OCT'13 AUG'13 NOV'13 MAY'13 AUG'13 NOV'13 MAR'13 MAY'13 MAR'13

CSSR DCR 97.50 1.65 97.00 1.60 1.55 96.50 1.50 96.00 1.45 95.50 1.40 1.35 95.00 1.30 94.50 1.25

JUL'13 Presentation Confidential between MTN and audience SEP '13 JUL'13 FEB'13 SEP '13 JAN'13 FEB'13 JUN'13 JAN'13 DEC'13 APR'13 OCT'13 JUN'13 DEC'13 APR'13 OCT'13 AUG'13 6 NOV'13 MAY'13 AUG'13 NOV'13 MAR'13 MAY'13 MAR'13

168 West Africa investor event //13 and 14 May 2014

169 West Africa investor event //13 and 14 May 2014

As pointed out earlier, changes in the technology area in 2013 were of an incremental nature. A few of the initiatives are still

ongoing while others have been completed:

. End‐to‐End Core Network Resource Pooling‐ SGSN, MSC, BSC etc.

. Trials for evolution of Wimax Network to LTE TDD

. Converged Fixed‐Mobile Charging and Billing

. Integration of next generation subscriber management platforms – HLR UDC

. Managed Services Implementation

MTNN network Managed Services operations commenced in Jan’14 with a 3‐ Month transition programme (till March 31st ).

The transition programme included: . establishment of a performance baseline, . extensive site and network infrastructure audits, . operational knowledge transfer . determination of “critical processes” WLAs and OLAs.

A general deterioration in network availability and quality was experienced during the handover period due to:

 human factors :– staff transfer, induction, documentation;

 Teething issues: – poor alignment between MS Partners and site maintenance contractors , and Network Operations.

During the Stabilisation Period (April – June 2014), MS Partners are expected to take full control of the operations and resolve initial challenges

170 West Africa investor event //13 and 14 May 2014

171 West Africa investor event //13 and 14 May 2014

. Network availability took a sharp downwards‐turn

in the week to the MS Service Commencement Date

(SC) 1st April 2014.

. Post handover, due to close management daily

performance review with MS Partners network

availability and quality in both MS Partner Regions

have returned to earlier levels.

The operating environment is only complete with its challenges, majority of which have taken on a business‐as‐usual

toga.

Power Security Challenges Local Skills Gaps

> Availability and stability of power > The ongoing security challenges in > Local Skills Gap on emerging supply remains by far the most critical the Northern part of Nigeria – technologies impacts on fault response challenge in the operating environment insurgency and attacks on and resolution times in the course of infrastructure continue to impact on daily operations > Power outages account for 60% of operations, fault response and service service interruptions restoration (MTTR) times > Complexities with managing a multi‐ vendor, multi‐technology environment > At least 70% of Opex is spent on AGO . As at April 31st 2014, services with an average monthly consumption remain unavailable to more than 80 in excess of 10 million litres sites in the region because of accessibility issues due to security concerns

172 West Africa investor event //13 and 14 May 2014

173 West Africa investor event //13 and 14 May 2014

MTNN will continue to compete and deliver on its promise to the valued customer by lowering operating costs through increasing efficiencies and improved customer experience.

. Energy Efficiency: Hybrid and other alternative energy systems . Increase infrastructure sharing (passive and active*) Lower Operating Costs . Continue to drive process and operational efficiency with Managed Services Partner and OEMs to further reduce equipment footprint, cooling and power requirements . Efficiency and scale economies in the Supply chain

. Ensuring target network availability through Intelligent and efficient site Enhance Customer operations and maintenance; Experience . Continue to maintain capacity headroom in Access and Core Networks; . Improved network monitoring, routine maintenance and fault resolution.

*options for infrastructure sharing for active services are being explored

Thank You

174 West Africa investor event //13 and 14 May 2014

175 West Africa investor event //13 and 14 May 2014

West Africa Investor Event Marketing Presentation – Nigeria

Agenda Competitive landscape Q1 Performance Highlight 2014 Strategic Theme and Initiatives • Aggressive data drive • VAS/Product Innovation • Churn/Dormancy Management • Mobile Financial Services • Segmented Value proposition

176 West Africa investor event //13 and 14 May 2014

177 West Africa investor event //13 and 14 May 2014

Competitive Landscape

Competitive Overview: Jan- March 2014

Airtel Nigeria • Continued to leverage its 5x bonus for growth and its launch of Come Alive - focuses on technology, football and music as drivers • BTL offers to drive usage and recharges- leveraging its capacity advantage in Eastern and northern markets • Focus on freebie-based tariff plan (Airtel one SIM ‘s 100% bonus on recharge for LIFE) to manage churn as against previous focus on promotional freebies. • Enhanced customer engagement across all channels and its renewed focus on improving customer experience of its HVC by launching its Airtel Premier Club. • Clear focus on data in key high ARPU cities- Achieved full national coverage with 3G

Globacom

• Globacom continued to over-leverage on its below-termination rate tariffs G-Gista (5k/sec) and Glo bounce (12k/sec) as its acquisition plans with 20k/s to all network and 100% bonus on recharge plus 30MB on every recharge of N200 and above on Glo Bounce. • This is complemented with BTL offers to drive recharges and stretch usages. • Harnessing other revenue streams with its new Data and VAS propositions – Glo Game Store, Glo Super SMS and 100% bonus on MyPhone data plan.

Etisalat Nigeria

• Aggressive customer acquisition offer of 100% bonus on recharge for new connections; plus Below-The-Line offers to stretch usage which can be used on all network; currently stands at 26.35% of Gross Addition. • Leverage on the ban on other operators in March 2014 to acquire more customers in the quarter. • Aggressive promotion of its Easystarter’s 10k/sec as an entry strategy for acquisition. • Strong high value and data focus with re-launch of minutes/data bundle (Goody Bag) in high denominations. • Continue to leverage on CSR and Sponsorship to drive its affinity and create more awareness among the low income groups. 4

178 West Africa investor event //13 and 14 May 2014

179 West Africa investor event //13 and 14 May 2014

Nigerian Telecom Landscape

Pre‐Dominant Declaration Post‐Dominant Declaration

. Market driven by hyper- . Value-driven promotions to drive competitive pricing regime recharges and usages. with aggressive competitive practice above-the-line . Customer life cycle management strategies to manage retention . Over-leveraging of capacity and proactive churn disparity for short-term management market share gain . Strong focus on data and digital . Data price slash to attract new contents as new revenue data-users generating opportunity

. OEM push of lower-priced . Operators’ focus on quality of smart devices network in the light of tougher regulatory sanction . Below-MTR pricing . Segmented pricing regime with biased regulatory stance

Nigerian Telecoms: Services Evolution

FUTURE PRESENT PAST • Convergence • SMS • CRBT • Mobile Financial Services • Social media • Mobile Advertising • Radio • Location Based Services • Ringtone • Gaming •M‐Insurance •M‐Health •M‐Agric • Eduportal •M‐commerce

180 West Africa investor event //13 and 14 May 2014

181 West Africa investor event //13 and 14 May 2014

Q1 Performance Snapshot

0.02% market share gain between Q3, 2013 and Q1, 2014 with minimal effect of SIM registration cut-off

+0.02%

+0.83%

-1.19%

+0.34%

Share of Net Additions (Millions)

% Share The entire market shrank in response to the Q2 '13 Q3 '13 Q4 '13 of Net Add ban on promotions and carry-over effect of Q1 2014 2013 rotational churners who became 36% dormant/inactive after the stoppage of MTN 3.944 0.358 1.170 various time-based/seasonal freebies. -4% Airtel 2.341 (0.680) 1.586 With the increasing number of multi- -46% Glo 0.257 0.800 (0.249) simmers, MTN maintained a positive 36% share of total market connection within the 114% EMTS 1.931 0.736 (0.576) period under review. 100% TOTAL 8.473 1.214 1.932 8

182 West Africa investor event //13 and 14 May 2014

183 West Africa investor event //13 and 14 May 2014

Sustained RGS growth with RGS 11.56% y/o/y between March 2013 and March 2014, with positive 3.91% growth in effective tariff

MTN continues to revamp its first-timer propositions and multi-segment portfolio of value-added services for acquisition growth

Sep Oct Nov Dec Jan Feb 2014 2013 2013 2013 2013 2014 % new connections with 68 65 62 69 71 68 previous SIM % new connections with NO previous SIM 32 35 38 31 29 32

MTN share within the % new connections with NO previous 53 53 55 54 53 53 SIM

MTN Share amongst first-timers* MTN Airtel Glo EMTS •Multi-simmers continue to be the largest contributors to Nov-13 55 16 13 16 new connections. Dec-13 54 17 12 17 Jan-14 53 18 10 19 •As the market competitiveness is hinged on price Feb-14 53 17 10 20 differentials, customers will continue to seek for operators with better bargain. MTN Share amongst multi-simmers •Comparing Nov 13 to Feb14(normal behaviour), MTN lost MTN Airtel Glo EMTS 2% of the first-timers and 4% among the multi-simmers. Nov-13 14 23 28 35 •Share of first timer growth as a result of diverse product Dec-13 12 25 26 37 portfolio in the digital stream. Jan-14 11 25 26 38 Feb-14 10 25 26 39 *Share of first-timers and multi-simmers per month is deduced from a monthly retail panel 10 research where customers picking new SIM are intercepted

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185 West Africa investor event //13 and 14 May 2014

MTN maintains its value share leadership with over 7m active 3G customers

Net change in value share* per operator (Jul 2013 – Mar 2014)

MTN Airtel Glo Etisalat

+1.16% -0.60% -0.82% +0.26%

Growth in value share driven by growing Brand affinity and network coverage advantage.

3G subscriber base per operator**

Internet Users Per Operator (NCC Feb 2014 Report)

Feb '14 % Share

Airtel 9,647,217 15.2%

Etisalat 6,109,681 9.6%

Globacom 14,908,109 23.5%

MTN 32,809,357 51.7%

*Value Share is calculated as a monthly extrapolation of recharges made by a representative customer Panel in all the 774 LGAs and with distribution of the 4 operators by market share **Estimation done from the Quarterly NCC Internet users report 11

Regional Market share movement : 91% correlation between value and volume share, with South East and South West contributing higher share of value above their respective volume while North Central contributes same volume as value.

MPR Claimed User Share* Trend

Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Lagos 29 34 34 34 35 35 32 41

South West 37 37 29 41 50 39 39 45

South East 43 46 77 68 86 78 79 67

South South 74 75 66 65 77 72 78 58

North East 58 59 55 34 59 49 58 60

North Central 40 49 51 50 59 68 62 56

North West 69 63 56 51 54 74 78 56

Correlation Table of User Share and Value Share User Share Value Share MPR User Value Share Q1 Share Mar 80 '14 2014 70 Lagos 41 36 60 South West 45 35 50 South East 67 69 40 South South 58 59 30 North East 60 47 20 North Central 56 56 10 North West 56 53 0 Lagos South South East South North East North North *Quarterly Market Performance Research West South Central West 12

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187 West Africa investor event //13 and 14 May 2014

Clear and compelling regional/micro-market propositions and network rollout

Capacity 306 71 Ring Fence LGA LGA Gain

Defend with sustained Cross-sell for superior propositions and incremental spend loyalty scheme

% contribution % contribution RGS / Revenue RGS / Revenue

33% / 22% 13% / 14%

Rev % contribution % contribution RGS / Revenue RGS / Revenue

18% / 22% 35% / 41%

Stimulate for growth Optimization and enhancement of customer experience

86 306 Operational Fix Over run LGA LGA for Future Revenue Capacity

2014 Strategic initiatives

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189 West Africa investor event //13 and 14 May 2014

Aggressive data growth

MTN Data & Device Strategy

Growth Goal:

. 10m 3G devices by end Y’14 . 35.2 m data RGS by end Y’14

Local app Segmented data ecosystem Aggressive 3G connectivity development to Smartphone offerings for drive brand penetration drive small and large differentiation screens and data usage

 OEM PARTNERSHIP - SIM & Data Bundling with top OEMs to drive 50% activation of all in country sales on MTN  LOWCOST SMARTPHONE – Affordable Smartphone (MTN $35 smartphone)  EVENT BASED DATA BUNDLES – Facebook, Twitter, 2go etc.  LOCAL APPS ECOSYSTEM - MTN Next App, MTN Play Store  MUSIC & VIDEO ONLINE CONTENT - MTN Music & video content streaming and download to drive usage (Dobox, Mobile TV, Afrinolly)

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191 West Africa investor event //13 and 14 May 2014

Data Revenue Vs. Total Revenue

• Data Revenue grew as a result of MTN’s renewed focus on data products and services; congruent to the increasing data subscribers.

• 11% increase in revenue between Q4’13 and Q1 ‘14.

Data Users Vs. Average Usage (MB)

• Average usage/user increasing with data user growth and congruent with increasing adoption of low/medium value smartphones and lifestyle contents (social media, e-learning and online shopping).

• Increasing usage can also be attributed to the increase in data bonus offers and data as freebie offers. (at least 50% bonus offers on data bundles from

100MB and above). 18

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193 West Africa investor event //13 and 14 May 2014

MTN ranks 3rd on customer experience but ongoing IP-RAN upgrade has increased usage experience

For 3G customer experience rating, MTN has seen between 2.7% and 9.2% percentage uplift, comparing cells within IPRAN location and those outside the location. It is important to note however that the number of cells mapped are X% of total and there may be a need to selectively recruit users in identified IPRAN areas to have a representative sample.

+4.5%

High Growth potential of Smartphones: Growing subscriber base and ARPU

Smartphone ARPU Vs. Non- Smartphone ARPU

1200

1000

800 6.4X

600

400

200

0 Non-Smartphone ARPU Smartphone ARPU

Smartphone users’ ARPU is a reflection of the increasing data/internet penetration in Nigeria. Customers begin to see mobile phones as a social tool; enabling their communication and relationships.

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195 West Africa investor event //13 and 14 May 2014

Revenue stream composition : voice/non-voice contribution

• 18% of revenues are non-voice related revenue.

• 56% of non- voice revenues are accounted for data related streams

• 65% of data related revenues are through GPRS.

VAS/Data and Product Development

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197 West Africa investor event //13 and 14 May 2014

Agenda

• Executive Summary

• CRBT performance‐ Revenue/Subscriber numbers.

• MTN Play performance‐ Revenue/Subscriber numbers

• SDP performance‐ Revenue/Subscriber numbers

• Growing VAS going forward.

Executive Summary

As we evolve into Leading a bold move in the Digital world and making our customers’ lives brighter, there is a need to embrace opportunities that digital platforms can offer.

In this new dispensation, focus will be on benefits to the Customer rather than the features of products. Another way of achieving this is by ensuring that the customer experience is a perfect 10.

In the Content space, we intend to use digital platforms like the CRBT and MTN Play platforms to further engage customers with exciting content that will wow them into recommending it to friends.

Winning with customers is the key to opening up a Blue Ocean of new opportunities to serve them better. It is with this in mind that we will also focus on addressing customer pain points. This is what will differentiate us from the pack and ensure the bottom line is guaranteed.

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199 West Africa investor event //13 and 14 May 2014

MTN CRBT- Nigeria’s #1 Platform for launching new music

CRBT Digital music Platform: • The RBT platform has been positioned as the platform of choice for launching artistes’ music.

• This is the main launch pad for MTN Nigeria’s Ambassadors launching the musical works to the over 30 million subscribers and counting.

• It has the added benefit of preventing against piracy of Intellectual Property (music, comedy, etc).

• We have artistes’ albums or singles launching weeks ahead of hitting the market.

• The most significant event of last year 2013, was the song “Tribute to Mandela” by Harrysong which it 2.7 million downloads in 3 weeks.

• CRBT is currently a billion Naira per month business. We intend to harness local and international (SONY music) music to double this in 2014.

• Convert non‐tune users to ardent downloaders‐ offer them free tunes in the genres that they previously had.

CRBT performance Oct 2013-Mar.2014.

+37%

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201 West Africa investor event //13 and 14 May 2014

Thank You

Celebrating Nigeria’s 53rd independence on MTN CRBT

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203 West Africa investor event //13 and 14 May 2014

MTN Play- The Digital one-stop shop for Content

MTN Play has evolved into a Digital platform that delivers music and SMS subscriptions with revenues of close to 400 million Naira monthly.

Content are delivered via the following categories: • SMS subscriptions • Wall papers • Ringtones • Full Track Music • Videos • Games

Discount Services: MTN Play has a discount feature that can be used to recruit new customers to the already burgeoning SMS subscriptions. SUPER 3: with the Super 3 feature, customers can have 3 services by just sending one keyword and get services at a discount.

MTN Play- Digitalizing music and SMS content. Revenues marginally up in march despite of stopping auto renewal due to increased customer satisfaction.

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205 West Africa investor event //13 and 14 May 2014

Campaign for mHealth service on MTN Play

Celebrating Nigeria’s 53rd independence on MTN Play

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207 West Africa investor event //13 and 14 May 2014

MTN SDP- The Super subscription Engine for delivering SMS and IVR content.

The Service Delivery Platform (SDP)offers the following options:

• SMS subscriptions • IVR content subscription

Billing Features • Daily subscription • Weekly subscription • Monthly subscription • Fall back charging‐ customer is billed based on available balance with subscription period pro‐rated.

Road Map • All SMS, IVR services are being migrated to the SDP at the moment. We are in the process of implementing new services for Q2. • Platforms like MTN Play will also be migrated to the SDP which has a robust migration engine.

MTN SDP Performance- Oct 2013- March 2014. Increased revenue and subscribers due to platform optimization and inclusion of relevant services

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209 West Africa investor event //13 and 14 May 2014

Engine Room on ground activations- SDP services

• Targeting NYSC members at the camp with Jobberman Job service.

• Jobs connected was also presented at the NYSC camp in Lagos.

• Open Heavens’ app activations in the R.C.C.G. camp targeting hundreds of thousands of followers.

• In the SE of Nigeria, customers were also targeted with relevant RBT of choice for download.

MTN Zone Pricing minutes innovatively based on location

MARCH 2014 . Active subscribers on MTN Zone: 11.93m . ERM (including bonus minutes): 7.81NGN . Average MoU/Sub: 98mins . Average call length: 55 secs . Regionally differentiated discounts applied in all regions Nigeria reflecting ARPU & network usage . Subscribers are getting a better understanding of the service and taking advantage of the discounts

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211 West Africa investor event //13 and 14 May 2014

Churn/Dormancy Management

MTN Churn vs. Average Industry churn : MTN maintained churn that is significantly below industry-wide average. Competitors freebies and consequent washing machine effect explains the rotational churn behaviour

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213 West Africa investor event //13 and 14 May 2014

Dormancy/Churn Wake up Average of 23.1% Dormancy Wake Rate after the State of Emergency/SIM Registration period. Also, Monthly Churn Returnee is averagely 1.3% of Active Subscribers.

March 2014 Basket Analysis of service portfolio: 82% of the customers use one or more of the Voice, Data and VAS services vs. 75% in Sept13

Sept 2013 March 2014

• 20% of the customers (compared to 13.5% in Sept 13) currently use voice, data and VAS services. This can be attributed to compelling propositions and stimulants to drive usage.

• 6.2% of the customers use data only compared to 1.8% as at Sept 2013. This is as a result of MTN’s drive for increasing data penetration and growing its data users base.

• 18% of the customers neither use any of the services BUT are receiving customers, this is lower than 24% recorded in Sept 2013. Customer Value Management initiatives contributing to the declining inactive customers.

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215 West Africa investor event //13 and 14 May 2014

Mobile Financial Services

Diamond Yello Account

The Diamond Yello Account (DYA) offers our customers a safe and easy means of opening and operating a Full bank account from the convenience of their MTN Mobile phone. Currently we are running a pilot and will proceed to launch commercially nationwide. This service is offered in partnership with Diamond Bank and differs from mobile money as illustrated below: S/N DIAMOND YELLO MOBILE MONEY

1 Bank account (NUBAN) is issued to the No Bank account is issued only MSISDN is customer required

2 Customer earns interest on account No interest is earned on account balances balances

3 Customer can access loan Customer cannot access loan facility or facility/micro credit micro credit

4 Agents are only required to have credit Agents are required to hold E money to balances to transact transact

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217 West Africa investor event //13 and 14 May 2014

Business Performance and Strategic Initiatives Presentation to Analysts Consumer Marketing input

Strategic framework: BRAND PROPOSITION

MTN’s brand promise & How the brand wants to be perceived

. Change for Good- To deliver world-class BRAND solutions that bring progressive, tangible, relevant and enduring change to the millions of Nigerians PROMISE whose lives we touch everyday MTN is the leading technology brand that enables people POSITIONING and business transit from their current realities to their STATEMENT desired future with solutions that are progressive, tangible, relevant and enduring

BRAND Heroic, Daring, Optimistic, Futuristic, ‘Nigerian’ PERSONALITY

BRAND TONE Brave. Positive. Caring. HEREWE COMPETE ACROSS CATEGORIES

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219 West Africa investor event //13 and 14 May 2014

Strategic framework: BRAND MESSAGE

What we say to our customers

. BRAND Leave good behind……Be Better MESSAGE

KEY MESSAGE You have it all in you to Be Better (MASTER BRAND)

KEY Our products and services help you Be Better. MESSAGE (SEGMENTS) Better’ aptly captures our quest for transformational VALIDATION change and by providing Nigerians with relevant and accessible technology solutions we give themHEREWE the power to shape their own destinies COMPETE ACROSS CATEGORIES

LEVERAGING THE NEW BRAND PROPOSITION

Communication strategy

Master brand Its all in you…. “Leave Good behind” Be Better Be MTN’s products & services enables you to Be Better Better Segments VAS/Digital MTN provides you tools and solutions to make your lifestyle and business Better

Brand connection

Thematic campaigns, Digital engagements Brand Equity & Emotional connection

MTN Brand Products & services, VAS, Promotions Customer acquisition, Usage and Retention

Sponsorships, Digital engagements Brand Endearment and Affinity

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221 West Africa investor event //13 and 14 May 2014

ACTION PLAN FRAMEWORK

Brand philosophy “Leave Good Behind…..Be Better”

Transform the MTN brand from a “ grudgingly admired brand” to a “Loved and admired brand” Vision

Master Brand Digital Marketing/Media Sponsorships Segment/VAS Launch of the “ Be Better” Social media MTN Project fame Multimedia value Philosophy in Q1 ‘14 and a engagements to drive proposition communication revamp in Q1’ 15 usage, WWTBAM campaigns acquisition/brand Northern version of ‘Be preference Music concerts – Loud Better’ campaign on Effective consumer in Naija, Elite nite educational materials Multimedia Acquisition /

Drivers development and exposure Clear focus on the MTN association with unique Golf; Polo Brand ambassador traditional media Development and exposure strategy to rejuvenate properties FA Cup, Football of VAS communication brand youthfulness scholar, Lagos Street Interactive mobile and Soccer Corporate Identity Mgt website advertising to drive traffic to MTN MTN Songstar Consumer Promotions digital touch points

Extensive local market knowledge Product innovation leadership Technical capacity and expertise Respected corporate citizen Foundation

Thank You

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223 West Africa investor event //13 and 14 May 2014

Analyst Presentation - CSD

Background

. Nigerian telecoms Industry remains a very viable sector of the Nigerian Economy

. Major contributor to the GDP (currently at approx. 9% - post-rebasing)

. Economists estimate that including adjacent industries, contribution would rise to 17%

. Success of the Telecoms sector brings higher expectations, regulatory interventions, larger

social spending, taxes and local content ownership

. Telecoms infrastructure faces heightened risks from the ongoing security challenges

. The forthcoming election is expected to be highly contested and the most robust in Nigeria’s

history

. Positive outlook for 2014 and beyond, despite the above challenges

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225 West Africa investor event //13 and 14 May 2014

Competition & Market Development

 Dominant Operator in mobile voice market and jointly-dominant in wholesale bandwidth since April 2013: . Obligation to collapse retail tariffs . Aggressive pricing reduced since the introduction of tariff floor influenced by our feedback to Regulator . Pricing principles for the industry under development – expected to lead to further market stability . Wholesale rates under review to drive availability for capacity for broadband penetration. . Constructive engagement with Regulator continues

 Asymmetric interconnect rates and strict tariff regulation adopted for market stabilisation: • The regulation resulted in 40% reduction in MTR; and about 18% differential between GSM operators and new entrants • 3-year asymmetric glide-path expected to lead to rates convergence in 2015 • NCC seeking to ultimately lower retail tariffs for the benefit of the consumer

 Aggressive Monitoring and Enforcement Measures • Enhanced oversight/scrutiny of industry operations, price plans and value propositions. • NCC imposed ban on promotional activities (MTN, Glo & Airtel) in reaction to perceived industry QoS failings • Ongoing engagement with Regulator to implement QoS standards that reflect country dynamics • MTN and other operators however successfully conducting Centenary Lottery on behalf of the Federal Government. • MTN reviews market intelligence to manage risk of anti-competitive behaviour to minimise value erosion

Sustaining Business Operations in 2014 and Beyond

• Comprehensive and multi-pronged strategy designed to anticipate, engage and address stakeholder concerns at all levels

• Key focus areas are: – License Renewal: to secure renewal on favourable terms (DML expires 2016). – Policy Advocacy and Execution: robust participation in the articulation of the National ICT Policy, National Broadband Policy and securing business-friendly implementation of proposed NCC National Broadband Network (NBN) proposals. – Security & Multiple Taxation/Regulation: securing Critical National Infrastructure status and protection against so as to ensure cost effective & sustained operations. – Promoting MTN’s credentials as Critical Agent for Economic Development – supporting major Government initiative planned for 2014 e.g. Nigeria Centenary celebrations and World Economic Forum Africa.

– Social Cause Marketing through the MTNF; driving exemplary Corporate Governance & reputation management – MTN Nigeria signed up to UNGC – Deepening Stakeholder confidence in MTN’s Local Content credentials – Macro Economic stability – Protecting business interest in the spate of Increased revenue & expenditure expectations of Government. MTN is leading industry efforts to showcase Socio –economic contributions of telecoms industry to Nigeria. – Political Environment – volatile political environment & uncertainty surrounding the 2015 Elections, may lead to security challenges and new political dispensation (challenges of building fresh relationships). Working to sustaining pivotal role of MTN in Nigeria

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227 West Africa investor event //13 and 14 May 2014

Key Successes and Challenges – 2013/14

Successes • Management of Dominant Operator status • Proactive management of regulatory interventions relating to tariffs and taxation • Successful engagement of FGN to secure commitment on tackling Multiple Taxation/Regulation through the National Economic Council (NEC • Successful engagement to secure Business Plan critical approvals • Mitigation of nationalisation/ expropriation risk of MTN’s Fibre Assets by the Federal Government • Successful completion of subscriber registration programme

Challenges • Managing regulatory expectations with regards to sustainable QoS KPIs • Slow progress on release of Digital dividend spectrum by 2015 – seeking favoured status for MTN and other GSM operators through natural progression to LTE. Opportunity also remains for favourable allocation of sub-1GB spectrum by 2015. • Government appetite to deliver regulatory convergence of Telecoms/Broadcasting may impact speed of digital service platform.

2014 Outlook – Focus Areas

• Policy & Regulatory Developments • Securing requisite regulatory and other approvals/resources to meet strategic objectives • Securing favourable terms for participation in Broadband, digital dividend and other initiatives • Managing QoS perception by ensuring due consideration of ecosystem challenges • Creating greater visibility for MTN by robust participation at relevant industry fora at local, regional and international levels to drive policy agenda

• Competition & Market Development • Dominance issues - Managing perception of MTN by direct engagement with NCC, shaping opinion & providing thought leadership on industry issues • Entrenching “regulatory impact analysis” to proactively manage outcomes • Advocating for shift in perception of MTN as dominant • Sustained engagement with all industry stakeholders • Relying on Governance and CSR credentials as differentiating factor – showcasing MTN’s value as major driver/contributor to national socio-economic development • Promoting self-regulatory initiatives in the industry through ALTON, GSMOA, etc

• Sustaining Business Operations • Securing License renewals on favourable terms • Ensuring favourable allocation of LTE and digital dividend spectrum • Securing Stakeholder & Opinion Leaders’ buy-in and support on industry challenges • Managing inherent legal risk through stakeholder engagement, pursuit and assertion of MTN’s rights. • Rebuilding/Reinforcing stakeholder confidence in MTN – advocacy, alliance building and goodwill through MTNF activities • Securing critical national infrastructure protection for telecommunications infrastructure

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229 West Africa investor event //13 and 14 May 2014

Thank You

230 West Africa investor event //13 and 14 May 2014

231