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MTN Group Limited Integrated Report for the year ended 31 December 2019 ended 31 December year the for Report Integrated Limited MTN Group Together, we go from isolated25YEAR to celebrated. BIRTHDAY Any dream can become a reality, with over 560 million Africans covered by a high-speed digital highway. When you can reach out to the most isolated people amongst you, and connect them from village to village, from nation to nation and from there to the world, you go. When you can use technology to teach, where books can’t reach, we all go. When 30 million people who could never bank before, now have a bank in their pocket, they go. Every day, MTN is# inspiredGoodTogether by the unstoppable spirit of the people we serve. That’s why, We’re good together. everywhere you go In Africa, every valley MTN Group Limited Integrated Report for the year can be Silicon Valley. TBWA\HUNT\LASCARIS 921574 TBWA\HUNT\LASCARIS ended 31 December 2019 Any dream can become a reality, with over 560 million Africans covered by a high-speed digital highway. When you can reach out to the most isolated people amongst you, and connect them from village to village, from nation to nation and from there to the world, you go. When you can use technology to teach, where books can’t reach, we all go. When 30 million people who could never bank before, now have a bank in their pocket, they go. Every day, MTN is inspired by the unstoppable spirit of the people we serve. That’s why, We’re good together. everywhere you go WorldReginfo - 23031917-99e7-43bf-b3dc-6a7b23af37e2 In 921574 TBWA\HUNT\LASCARIS Africa, every valley can be Silicon Valley. Any dream can become a reality, with over 560 million Africans covered by a high-speed digital highway. When you can reach out to the most isolated people amongst you, and connect them from village to village, from nation to nation and from there to the world, you go. When you can use technology to teach, where books can’t reach, we all go. When 30 million people who could never bank before, now have a bank in their pocket, they go. Every day, MTN is inspired by the unstoppable spirit of the people we serve. That’s why, We’re good together. everywhere you go TBWA\HUNT\LASCARIS 921574 TBWA\HUNT\LASCARIS Report navigation Celebrating 25 years In 2019, we marked 25 years in the business: two and half decades of YEAR astonishing achievements and 25 sometimes considerable challenges; BIRTHDAY connecting people, embracing diversity and creating sustainable economic value. From a single operation in South Africa offering simple voice and SMS in 1994, we have grown to 21 operations across Africa and the Middle East, offering our 251m subscribers a wide range of voice, data, digital, fintech, enterprise and wholesale services. Inspired to continue to transform lives, in 2020 we are recapturing the pioneering spirit that built MTN all those years ago, determined to be bolder, faster, together. Our online reports/links: GR SR AFS Governance report Sustainability, Annual financial including UN and statements CDP reports TAX SE KIV Tax report Social and King IV™Δ ethics report application Other icons: LA 5Y www.mtn.com/en/ Limited assurance Five year review investors/Financial- obtained Reporting/ Integrated-Reports/ pages/default.aspx SDG icons used in this report: Of the 17 Sustainable Development Goals, those on which we have the greatest impact are highlighted below. We view sustainability as an integral part of MTN’s value creation journey. ZERO HUNGER LIFE BELOW WATER Links to the pillars of our BRIGHT strategy: Best customer experience Returns and efficiency focus Ignite commercial performance Growth through data and digital Hearts and minds Technology excellence Δ Copyright and trademarks are owned by the Institute of Directors Southern Africa NPC and all of its rights are reserved. WorldReginfo - 23031917-99e7-43bf-b3dc-6a7b23af37e2 In Africa, every valley can be Silicon Valley. Any dream can become a reality, with over 560 million Africans covered by a high-speed digital highway. When you can reach out to the most isolated people amongst you, and connect them from village to village, from nation to nation and from there to the world, you go. When you can use technology to teach, where books can’t reach, we all go. When 30 million people who could never bank before, now have a bank in their pocket, they go. Every day, MTN is inspired by the unstoppable spirit of the people we serve. That’s why, We’re good together. everywhere you go TBWA\HUNT\LASCARIS 921574 TBWA\HUNT\LASCARIS Contents 01 All about MTN 01 Who we are 02 A compelling investment case 04 Where we operate and how we performed 06 Our market context 08 What we are doing to address the opportunities 10 25 years of doing good 02 How we create value 12 Creating value – #GoodTogether 14 How we create value using the six capitals 16 How we sustain value using the six capitals 18 Material matters impacting value creation 20 Social and ethics committee chair’s review 21 Relationships on which we rely to create value 25 Risk committee chair’s review 26 Top risks to value creation 03 Strategic and financial review 34 The view of our chairman 36 Q&A with the CEO 38 Q&A with the CFO 41 Key financial tables 45 Audit committee chair’s review 46 Our strategic performance 48 Best customer experience 50 Returns and efficiency focus 52 Ignite commercial performance 54 Growth through data and digital 56 Hearts and minds 58 Technology excellence 04 Governance and remuneration 60 Governance in action 64 Our international advisory board 66 Our board of directors 70 Our executive committee 72 Remuneration report 98 Glossary 105 Administration Throughout this report we also use the following symbol: * Constant currency and after taking into account pro forma adjustments. For a detailed explanation of this and other financial definitions, see page 44. The forward-looking financial information disclosed in this integrated report has not been reviewed or audited or otherwise reported on by our external joint auditors. WorldReginfo - 23031917-99e7-43bf-b3dc-6a7b23af37e2 About this report This integrated report is MTN Group Limited’s primary communication to all stakeholders and aims to enable them to make an informed assessment of our performance and prospects. Scope and boundary Our material matters, as well as our strategy, form the In assessing the issues that materially impact value anchor of the report and determine its content. This report creation we have looked beyond the financial reporting reviews MTN’s strategy and business model, risks and boundary to provide for the material interests of relevant opportunities and operational and governance stakeholders, and to address the significant risks, performance, covering the period 1 January to opportunities and impacts associated with our activities 31 December 2019. over the short term (less than three years), medium term (three to five years) and long term (beyond five years). The Financial and non-financial data from our subsidiaries are structure and layout of this report draw on the International fully consolidated. This report gives commentary, Integrated Reporting Council’s (IIRC) guidance. performance measures and prospects for the group’s two main operations in South Africa and Nigeria which make up We provide supplementary information in associated two thirds of the business, as well as its three regions: reports, including that on sustainability and the full set of SEAGHA (Southern and East Africa and Ghana), WECA annual financial statements (AFS) on MTN’s website. (West and Central Africa) and MENA (Middle East and North Africa), which collectively make up the other third. ndary fo orting bou r this rep Rep nd opportunities, outc ort (risks a omes) inancial reporting entity F and significant infl (control uence) MTN Group Limited subsidiaries joint ventures other investments (see our portfolio, page 01) 12 st 22) akeholder groups (see page Financial information Non-financial information We apply International Financial Reporting Standards We use local and global standards and guidelines to (IFRS) as issued by the International Accounting Standards compile non-financial information. These include the JSE Board and Interpretations as issued by the IFRS Listings Requirements, the Companies Act of 2008, the King Interpretations Committee. We comply with the SAICA Report on Corporate Governance for South Africa 2016 Financial Reporting Guides as issued by the Accounting (King IVTM), the IIRC’s guidelines, the FTSE/JSE Responsible Practices Committee and Financial Pronouncements as Investment Index, the United Nations Global Reporting issued by the Financial Reporting Standards Council. We Initiative Standards and the CDP standard. Non-financial also comply with the JSE Listings Requirements and the information on certain aspects of the business has been requirements of the South African Companies Act of 2008. assured by PricewaterhouseCoopers and is identified by LA . In parts of this report, we include data on MTN Irancell as it The assurance statement is available online. MTN’s is a large operation. However, under IFRS, this business is definitions of the KPIs assured is included in the glossary equity accounted for. section of this report. Approval by the board MTN’s board of directors acknowledges its responsibility to ensure the integrity of the integrated report. The board has applied its collective mind and, in its opinion, this integrated report addresses all material matters and offers a balanced view of MTN’s strategy and how it relates to the organisation’s ability to create value in the short, medium and long term. The report adequately addresses the use of, and effects on, the capitals and the manner in which the availability of these capitals is impacting on MTN’s strategy and business model.