Mtn Nigeria Communications Plc · NSENG:MTNN
Mtn Nigeria Communications — Investor Presentation (November 2021)
38 slides from Mtn Nigeria Communications's investor presentation, November 2021
Slide 1: MTN Nigeria Investor Presentation November 2021
MTN Nigeria | Investor Presentation November 2021
Slide 2: Disclaimer
The information contained in this document (“presentation”) 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, sufficiency or correctness of the information or opinions cont
Slide 3: Agenda
Agenda Introduction to MTN Nigeria Financial Review Looking Ahead MTN Public Offer Appendix
Slide 4: Introduction to MTN Nigeria
Introduction to MTN Nigeria
Slide 5: MTN Nigeria is part of the MTN Group
MTN Nigeria is part of the MTN Group Leading emerging markets operator with 2 7 2 milion. subscribers 1 19 million active data users Figures as at Q3 2021 #1/#2 position by market share 20 countries across Africa & the Middle-East Market leader in _.“- countries including Nigeria innovative products
Slide 6: MTN Nigeria at a Glance
MTN Nigeria at a Glance Nigeria’s leading mobile operator and provider of communication services With over 68 million subscribers, we are connecting Nigerians with each other and to a world of people, Leading operator with >50% market share ideas and opportunities. Largest listed company by revenue
Slide 7: Nigeria's Leading Mobile Operator
Nigeria’s Leading Mobile Operator 67 .5million 9 33.2 milion 6.6million 5.8 million subscribers data subscribers active MoMo users digital subscribers 69.2% 81.7% 89.4% 49.1% 48.7% 4G population 3G population 2G population Data Smartphone coverage coverage coverage penetration penetration Exciting d
Slide 8: Our Board of Directors
Our Board of Directors Our Board provides a strong mix of diversity, experience, governance and technical expertise a ta dh Dr. Ernest Ndukwe, OFR Mr. Karl Toriola Mr. Ralph Mupita Mr. Modupe Kadri * ‘OON long term growth and development. * Oversees our world class hi approach to corporate governanc
Slide 9: Our Management Team
Our Management Team A strong management team, predominantly Nigerian, with a mix of local & international expertise and a track record of execution 5 A +4 W- " A CEO CFO OPERATIONS COMPANY SECRETARIAT HUMAN RESOURCES INFORMATION TECH. Karl Toriola Modupe Kadri Mazen Mroue Uto Ukpanah Esther Akinnuka
Slide 10: Best-in-class Local-driven Workforce
Best-in-class Local-driven Workforce A generation of world class Nigerian tfelecommunications professionals driving new growth and opportunities * We're more than a company. We’re a community that connects societies, MTN Nigeria is commitment to its stafF shapes the future and aspires fo live inspir
Slide 11: Enabling Broad Socioeconomic Development
Enabling Broad Socioeconomic Development Paid N2.9Trillion in Faxes and levies to government from inception, and N3.2Trillion Capital investment Connecting 4,000+ medium & large Corporates, 100+ Public Sector & 1m+ small businesses 1. A broad set of initiatives to support national efforts to contain
Slide 12: Creating economic value
Creating Earned by Earned by vendors airtime retailers Over 3.9T naira Acti Earned by retailers ee added service providers over 2,000 Sales partners Local suppliers and agents Contributing significant economic value for all in Nigeria oy 12
Slide 13: ESG
ESG ... remains at the core of everything we do Reduced carbon emissions | Net zero emission by 2040 Improved energy efficiency Renewable energy Sourcing and supply chain integrity Drive Financial inclusion through our fintech business Drive diversity & inclusion | Target 50% female workforce by 203
Slide 14: Recent Developments and Commitment to National Impact
Recent Developments and Commitment to National Impact MTN Nigeria celebrated its 20' anniversary in August 2021 and made a commitment to national impact projects Infrastructure Investment 2) * Participation in the Road Infrastructure Tax Credit (RITC) Scheme with the rehabilitation of Enugu-Onitsha
Slide 15: Competitor Landscape and Market Opportunities
Competitor Landscape and Market Opportunities MTN is the leading player in the market with sustained advantage over competitors Market share by mobile subscribers! 13.9% 14.5% 17.5% 15.6% ce 25.8% | 27.1% | | 27.9% 30.6% 30.8% 49.1% 50.0% 48.5% 49.3% 50.8% 2017 2018 2019 2020 Q3 2021 OMTN DAirtel Gl
Slide 16: Operational and Commercial Performance
Operational and Commercial Performance Solid track record of leadership and continuous improvement gh Growing Subscribers [=] (in millions) 765 : 67.5 64.3 Total 58.2 25.2 32.6 Datausers | 14.1 HL) 2018 2019 2020 © @3.2021 Sustained Investment in as) Technology Q3 2021 2018 2019 2020 gh NPS Market L
Slide 17: Industry-wide SIM Registration Update
Industry-wide SIM Registration Update Impact on voice revenue mitigated by migration to higher quality of service and higher usage in active base Subscriber net adds EE -2.6m -5.0m Q12021 Q22021 @Q32021 Voice revenue 18.8% .0% 5.6% Q12021 Q22021 Q32021 Active data users net adds 0.7m 0.02m Cel -0.1m
Slide 18: Fintech Journey of Progress
Fintech Journey of Progress Leveraging our Super-Agent licence and single distribution strategy, we have grown our agent network to over 630K, serving approximately 7m users Revenue mix 5% 5% 5%, OXtratime N35.2 bn N44.8 bn N50.2 bn BMobile Up 23.2% Up 27.3% Up 55.2% money 95% 95% 95% FY 2019 FY 202
Slide 19: Financial Review
Financial Review
Slide 20: Financial Framework underpinning our Ambition 2025 Strategy
Financial Framework underpinning our Ambition 2025 Strategy C > C C > C > Service Margin Value based — Attractive revenue growth expansion capital allocation FCF X JS X XK S XK JS la >) la >) >) Mid to high teen growth | Growth ahead of inflation Sustain EBITDA margin of 53-55% Reduced Capital inten
Slide 21: Financial performance 9M 2021 growth
Note: Growth rates refer to year-on-year growth between 9M 2021 and 9M 2020 | DPS – Dividend per share.
Slide 22: Service Revenue Evolution
Service Revenue Evolution Solid service revenue profile driven by voice, data and fintech | Data now accounts for c.30% of service revenue Voice OData O Digital 9M 2021 66.7% OFintech 3.3% 4.1% Other 7\\| 2018 2020 24.8% 9M 2020 22 fa) 2 |
Slide 23: EBITDA Margin Evolution
EBITDA Margin Evolution Solid revenue growth and expense efficiencies enabled continued margin improvement N'b 434.0 2018 685.7 625.0 634.5 27.4% 497.9 — 53.4% 52.6% 50.9% 51.0% — 2019 2020 9M 2020 9M 2021 (EBITDA —EBITDA margin 23
Slide 24: Disciplined approach to capital expenditure (capex)
Disciplined approach to capital expenditure (capex) Growth in connectivity and platforms underpinned by disciplined approach to capex Capex & Capex intensity Medium term CAPEX plan 17.7% 17.8% 17.8% 13.8% * 4G network expansion 240.1 N’b 184.2 208.3 * New coverage areas and rural 166.5 telephony ¢ F
Slide 25: Capex Funding strategy
Capex Funding strategy Capex is financed from a pool of operational cash and external borrowing, ensuring protection of the balance sheet Adequate foreign exchange supply against market risk and volatilities Limited foreign exchange supply * Prioritize access to foreign currency credit lines and med
Slide 26: Capital structure
Capital structure Capital allocation framework supports growth opportunities and moderate leverage to ensure financial Flexibility Funding strategy * Diversify funding sources to optimize debt mix and cost— In 2021, tapped the domestic debt capital markets and raised: * N200b in bonds across two (ov
Slide 27: Looking Ahead
Looking Ahead
Slide 28: Ambition 2025
Ambition 2025 Framing our strategic priorities Belief statement “Everybody deserves the benefits of a modern connected life” Strategic Ambition 2025: “Leading digital solutions for Africa’s progress” intent 2 O Accelerate ? bs portfolio connectivity strategic operations priorities Technology Best ta
Slide 29: Strategic priorities: driving growth and value unlock
Strategic priorities | driving growth and value unlock Priorities Build the & most Drive connectivity operations Accelerate portfolio Objectives + Pivot From a ‘product’ to ‘platform’ play + Selective partnershipto accelerate growth * Fintech | Digital | Enterprise | MaaS | API marketplace 2025 Ambi
Slide 30: Platforms, risk framework and capital allocation
• • • • • NaaS • API Marketplace Enterprise ayoba • • fintech • • • • • • Enhanced risk and regulatory framework Disciplined capital allocation
Slide 31: Medium-term guidance
Medium-term guidance Continued commercial momentum, with an eye on efficiencies. (a= PAST @) KPI S|) target =| ea Mid teens growth Service 2020 53-55% Voice O Rest i Reducing intensity intensity 2025 Voice Minimum 80% of ORest Ti pay out distributable income Revenue evolution 60% 40% Data, fintech a
Slide 32: Key Take-aways
Key Take-aways 1 Ambition 2025 provides a compelling and unique growth opportunity in Nigeria 2 Underpinned by a solid connectivity business and value unlock opportunities in Fintech and digital 3 ‘Efficiency at all costs’ approach drives margin and cash flow growth 4 Culture change across the organ
Slide 33: MTN Public Offer
MTN Public Offer
Slide 34: Rationale for the Offer
Rationale for the Offer Providing more Nigerians with the opportunity to own an equity stake in MTN Nigeria + Introducing a wider base of Nigerian shareholders into Fhe ownership of MTN Nigeria + Increasing Free float of MTN Nigeria on the Nigerian Exchange Limited Enhancing liquidity of MTN Nigeria
Slide 35: MTN Nigeria Offer: Summary of Key Terms
MTN Nigeria Offer Summary of Key Terms Securities Offered Up to 575,000,000 (Five Hundred and Seventy-Five Million) Ordinary Shares in MTN Nigeria Communications PLC MTN International (Mauritius) Limited (“MTNI”) Offer for Sale [e]- Chapel Hill Denham Advisory Limited Rand Merchant Bank Limited, Ren
Slide 36: Appendix
Appendix
Slide 37: Key Financial Highlights
Key Financial Highlights Total Revenue 1,346,390 1,169,831 1,039,118 1,206,262 975,763 23.6% Service Revenue 1,339,033 1,167,526 1,036,916 1,204,352 973,811 23.7% Voice 897,912 848,262 782,323 722,001 653,016 10.6% Data 332,413 219,879 154,380 366,166 241,634 51.5% Fintech 9,495 4,583 28,588 50,236
Slide 38: Thank you
Thank you Contact: Chima Nwaokoma Snr. Manager, Investor Relations Telephone: +234 803 200 0186 Email: Investorrelations.ng@mtn.com
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