Mtn Nigeria Communications Plc · NSENG:MTNN
Mtn Nigeria Communications — Q1 2021 Earnings Presentation
14 slides from Mtn Nigeria Communications's earnings presentation, 2021
Slide 1: Accelerating MTN Nigeria
Accelerating MTN Nigeria
Slide 2: MTN Nigeria at a glance
MTN Nigeria at a glance A solid foundation and track record of market leadership and growth Fi . . tf Growing Subscribers (in millions) 14.6%! eee 76.5 64.3 Total 58.2 32.6 Data users 18.7 25.2 2018 2019 2020 Technology Investment Capex intensity Capex? (N’bn) 184 - 240 208 | | 2018 2019 2020 ian #L
Slide 3: How we manage the business
How we manage the business CEO Karl Toriola Strong, experienced and local management team Executive Director/CFO Modupe Kadri coo Mazen Mroue Chief Technical Officer Mohammed Rufai Ag. Chief Marketing Officer Anthony Obi Chief Digital Officer Srinivas Rao General Manager, Mobile Financial Services U
Slide 4: Macro context
Macro context Inflation rate mmm GDP Growth rate 4.0% 2.0% 0.0% 2.0% -4,0% 6.0% 8.0% Smartphone penetration 4G penetration 86% 73% 78% 82% 62% 65% 53% 49% “ 46% 39% 34% 26% 24% 31% 21% goal oo —o- ey 2 2 © gp ge ee g en 2 29 8 op gy 8 eg g #5 8 28 8 € 8 € B #35 882888 8 & 8B 8 & & & & && R KR K€ RK
Slide 5: Industry and regulatory context
Industry and regulatory context Proactively/constructively engaged with key regulators & stakeholders to ensure sustainability of Fhe business & sector National Environmental INE Bag Berecres trescttions ( NBE NE GEE cee NIE MQ GLE) inc COMMISSION Commission oot en cemstenes er oen SEC NIGERIA Key r
Slide 6: Competitor landscape
Competitor landscape MTN remains the leading player in the market with sustained advantage over competitors Market share by mobile subscribers (%) Competitive context o0% rm nme 17.5% 15.6% 15.1% 25.8% 27.1% 27.9% 30.6% 30.2% * Nigeria is a value seeking market * Stable voice tariff due to price Flo
Slide 7: Our Q1 2021 performance highlights
Our Q1 2021 performance highlights Momentum of recent growth has continued into 2021 (Q1), confident of continuing to drive that growth forward +17.2% +42.6% +8.0% Service revenue Data revenue Voice revenue N385.1bn N105.7bn N244.6bn +28.5% +0.9pp Fintech revenue EBITDA margin N14.3bn 53.1%
Slide 8: Positioned for accelerated growth
Positioned for accelerated growth Exciting growth opportunities to sustain growth in connectivity and platforms Largest telecoms market in Africa Rapid population growth estimated at 206m Predominantly youthful representing — 82.7% below the age of 40 Low but increasing data and smartphone penetrati
Slide 9: Fintech progress
Fintech progress Firm advances in scaling fintech ecosystem and positioning for exponential growth Current status We have launched super agent license and applied for PSB Obtained “super agent licence” OTC counter money transfers, payments, bank deposits and withdrawals 100k active monthly agents 5
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Slide 11: Financial framework in place to sustain & accelerate growth and support Ambition 2025
Financial framework in place to sustain & accelerate growth and support Ambition 2025 Service revenue Value based capital Attractive FCF growth allocation Mid to high teen growth | Sustain EBITDA margin of Reduced Capital intensity Improve cash Flow Growth ahead of inflation 53-55% Well-managed leve
Slide 12: Investment Case | A compelling growth story
Investment Case | A compelling growth story ma (- ( Nigeria's leading mo! operator and provider of communication services #1 subscriber market share Leader with a strong competitive advantage across all segments with significant lead over competitors XN S Ex ing demographic opportunity G Largest tel
Slide 13: Medium-term guidance
Medium-ferm guidance Continued commercial momentum, with an eye on efficiencies. =— Revenue oO ? Target PAL CY : [SII =| evolution \Y VY 2020 Voice ORest aN Service Revenue Mid teens growth 0% soo 60% ‘ oa EBITDA Margin 53-55% Vv 2025 Capex intensity Reducing intensity Dividend pay out Minimum 80% o
Slide 14: Conclusion
Conclusion Key take-aways Strong position to drive continued service revenue growth ahead of inflation Underpinned by a solid connectivity business and unlock of fintech opportunity Efficiency at all costs approach drives margin and cash flow growth Culture change across the organisation to enhance
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