Mtn Group Limited · JSE:MTN
Mtn — FY2024 Earnings Presentation
47 slides from Mtn's earnings presentation, March 2025
Slide 1: MTN Group Results Presentation for the year ended 31 December 2024
MTN Group Results Presentation for the year ended 31 December 2024 Leading digital solutions for Africa’s progress
Slide 2: Disclaimer
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 or correctness of the information or opinions contained
Slide 3: Agenda
Agenda 01 FY 24 Highlights 02 Operational & strategic review 03 Financial review 04 Outlook and priorities 3
Slide 4: FY 24 Highlights
01 FY 24 Highlights Ralph Mupita Group President and CEO 4
Slide 5: Key messages
Highlight Operational & strategic review Financial review Outlook & priorities Key messages 1 Strong underlying performance and H2 financial results 2 Commercial momentum underpinned by structural demand for data and fintech 3 Progressed key strategic priorities – localisations and portfolio optimis
Slide 6: Highlights | commercial momentum
Highlight Operational & strategic review Financial review Outlook & priorities Highlights | commercial momentum Strong commercial execution drives growth Subscribers (m) Active data subscribers (m) Data traffic (PB) 2.2% YoY 7.7% YoY 32.6% YoY 157.8 290.9 19 459 284.8 152.0 283.5 284.2 149.0 148.1 4
Slide 7: Highlights | financial performance, FY 24
Highlight Operational & strategic review Financial review Outlook & priorities Highlights | financial performance, FY 24 Growth Earnings Balance sheet Returns Service +10.2%* Group revenue +13.8%* EBITDA Leverage 0.7x OpFCF^ R31.4bn R70.1bn Data EBITDA -0.8pp* Holdco Adjusted revenue +21.9%* margin
Slide 8: Operational & strategic review
02 Operational & strategic review Ralph Mupita Group President and CEO 8
Slide 9: South Africa
Highlight Operational & strategic review Financial review Outlook & priorities South Africa Resilient performance with encouraging H2 momentum in data and consumer postpaid Market context Key activities Solid results • Improved macro conditions • R9.8bn capex (ex-leases) | Network • Service revenue
Slide 10: Nigeria
Highlight Operational & strategic review Financial review Outlook & priorities Nigeria Strong underlying operating performance, financial result impacted by inflation and naira devaluation Market context Key activities Solid results • Naira devaluation abated in H2 | Improved • Executed on 5-point p
Slide 11: Markets
Highlight Operational & strategic review Financial review Outlook & priorities Markets Strong performance in Markets portfolio | MTN Ghana and MTN Uganda leading growth SEA WECA MENA +21.3%* +9.7%* -41.6%* service revenue service revenue Service revenue • Strong MTN Uganda: data revenue • Strong MTN
Slide 12: Scaling fintech
Highlight Operational & strategic review Financial review Outlook & priorities Scaling fintech Improved commercial monetisation Total fintech transactions 20.3 billion TX volume +15.3% YoY US$321.3bn TX value +18.4%^ YoY Wallet ^35.1% constant currency BankTech 63.1m MoMo users +0.9% YoY US$1.74m lo
Slide 13: Portfolio optimisation and ARP
Highlight Operational & strategic review Financial review Outlook & priorities Portfolio optimisation and ARP Further progress in execution of portfolio optimisation ARP | R22.4bn^ of target achieved to date Realisations & other Localisations Progress to date • Jumia, BICS, aYo, & other – R5.0bn • N
Slide 14: Creating shared value
Highlight Operational & strategic review Financial review Outlook & priorities Creating shared value Significant economic value added across our markets of ~ R155bn E Co-responsibility • Reduce GHG emissions • Improve energy efficiency ~46.2%^ Net Zero by 2040 E conomic value added “We are committed
Slide 15: Good progress against our medium-term guidance in FY 24
Highlight Operational & strategic review Financial review Outlook & priorities Good progress against our medium-term guidance in FY 24 KPI Target Performance Group: ‘at least mid-teens’ 13.8%* South Africa: ‘mid-single-digit’ 3.1% Service revenue growth Nigeria^: ‘high-20% to low-30%’ 35.6%* Fintech
Slide 16: Financial review
03 Financial review Tsholofelo Molefe Group CFO 16
Slide 17: Key financial messages
Highlight Operational & strategic review Financial review Outlook & priorities Key financial messages 1 Macro impacts on our financial results moderated in H2 2 Pleasing underlying trajectory of our service revenue growth and EBITDA margin 3 Strong execution of expense efficiency programme (EEP) 4 E
Slide 18: Positive momentum in financial results
Highlight Operational & strategic review Financial review Outlook & priorities Positive momentum in financial results Encouraging trends in key H2 financial metrics vs H1 Service revenue (%*) EBITDA Margin (%*) OpFCF (Rbn) 21.5 15.5 39.9 12.1 36.5 Holdco leverage (x) 9.9 1.6 1.4 H1 24 H2 24 H1 24 H2
Slide 19: Significant items impacting reported results
Highlight Operational & strategic review Financial review Outlook & priorities Significant items impacting reported results Macro impacts Other impacts 1. FX volatility 1. Gain/loss on disposal of subsidiaries in 2024 • Negative impacts of naira devaluation on • Afghanistan and Guinea-Bissau gains:
Slide 20: Group income statement
Highlight Operational & strategic review Financial review Outlook & priorities Group income statement Group EBITDA margin of 38.2%*; improved in H2 to 39.9%* vs H1 of 36.5%* % change % change (Rm) FY 24 FY 23 reported constant currency Revenue 188 001 221 056 (15.0) 12.6 Service revenue 177 756 210
Slide 21: Group service revenue
Highlight Operational & strategic review Financial review Outlook & priorities Group service revenue H2 service revenue of +15.5%* (Rm) constant currency +14.4%* ex-MTN Sudan +13.8%* 4 561 177 756 824 1 473 173 195 5 003 12 873 507 152 233 282 FY 23 Voice Data Digital Fintech Wholesale SMS, ICT and
Slide 22: Illustrative service revenue normalisation
Highlight Operational & strategic review Financial review Outlook & priorities Illustrative service revenue normalisation Analysis of macro headwinds impact on service revenue (Rm) +18.7%* 67 750 240 306 210 139 -1 522 202 533 -6 084 177 756 -3 804 -1 396 Nigeria: 57 712 FY 23 Sudan Hyperinflation F
Slide 23: MTN South Africa
Highlight Operational & strategic review Financial review Outlook & priorities MTN South Africa Resilient topline | H2 momentum in profitability, EBITDA margin of 38.2% vs 36.5% in H1 (Rm) Service revenue Expenses EBITDA and capex (ex-leases) +3.1% 35.9% 37.4% EBITDA margin^ 43 175 41 882 +0.2% +5.5
Slide 24: MTN Nigeria
Highlight Operational & strategic review Financial review Outlook & priorities MTN Nigeria Strong service revenue growth | Successful renegotiation of lease agreements – R1.3bn in opex savings (Rm) constant currency Service revenue Expenses EBITDA and capex (ex-leases) +35.6% 40 755 49.2% 38.9% EBIT
Slide 25: Markets
Highlight Operational & strategic review Financial review Outlook & priorities Markets Markets portfolio delivered solid overall results, with robust growth from MTN Uganda and MTN Ghana SEA MTN Uganda WECA MTN Ghana Service revenue (Rbn) Service revenue Service revenue (Rbn) Service revenue +21.3%
Slide 26: Fintech revenue breakdown
Highlight Operational & strategic review Financial review Outlook & priorities Fintech revenue breakdown Strong expansion of advanced services revenue, +52.0% | EBITDA margin at top end of mid to high 30% target (Rm) constant currency Revenue Revenue contribution by services FY 24 +28.5% 22 541 25%
Slide 27: Group expenses
Highlight Operational & strategic review Financial review Outlook & priorities Group expenses FX and CPI drive higher costs, especially network expenses | Savings of R3.8bn (of R7-8bn target) (Rm) constant currency Expenses Expense efficiency programme +14.5% 113 936 Savings by region Savings by cat
Slide 28: Finance costs
Highlight Operational & strategic review Financial review Outlook & priorities Finance costs Reducing impact from FX losses, especially H2 | Lower average cost of debt Net finance costs Forex losses / (gains) Rm FY 24 FY 23 Rm FY 24 FY 23 Net interest paid 7 999 8 239 Head offices 1 981 999 Finance
Slide 29: Adjusted HEPS
Highlight Operational & strategic review Financial review Outlook & priorities Adjusted HEPS Result reflects impacts from challenging macro environment Reported (R’cents) FY 24 FY 23 % change Attributable EPS (531) 227 (333.9) Impairment of goodwill, PPE and associates 578 40 Impairment loss on reme
Slide 30: Illustrative AHEPS normalisation
Highlight Operational & strategic review Financial review Outlook & priorities Illustrative AHEPS normalisation Analysis of macro headwinds impact on AHEPS +40.1% (R’cents) 822 1 811 76 1 269 1 203 -10 159 816 14 Nigeria: 708 FY 23 Impact of fx on Sudan Impact FY 23 FY 24 Sudan Impact Impact of Fx o
Slide 31: Capex (ex-leases)
Highlight Operational & strategic review Financial review Outlook & priorities Capex (ex-leases) Focus on capex optimisation and efficiency | Intensity of 15.9% (Rm) Capex Capex segmentation across regions and operations CAPEX CAPEX Intensity 41 142 6% 38 240 27.0% 33% 32% 29 871 73.0% 12% 17% 18.6%
Slide 32: Free cash flow
Highlight Operational & strategic review Financial review Outlook & priorities Free cash flow Improving FCF generation with H2 OpFCF of R21.5bn (Rm) -7 829 59 298 -9 024 19 033 -31.6% -22.6% -34.5% 31 426 29 802 -30 051 -1 624 -13 617 6 033 -10 152 Reported EBITDA^ Non-cash Working capital Capitalis
Slide 33: Leverage and liquidity profile
Highlight Operational & strategic review Financial review Outlook & priorities Leverage and liquidity profile Consolidated and Holdco leverage remained healthy | Pleasing H2 improvement in upstreaming and leverage ratios Holdco Net Debt (Rbn) Maturity Profile (Rbn) 43.3 13.2 35.5 USD 30.1 31.9 21% 4
Slide 34: Outlook and priorities
04 Outlook and priorities Ralph Mupita Group President and CEO 34
Slide 35: Macro outlook
Highlight Operational & strategic review Financial review Outlook & priorities Macro outlook Signs of stability and improvement in key indicators | Evolving geopolitical risks Global macro / geopolitics Economic outlook – GDP SSA South Africa Nigeria Ghana • Evolving global geopolitical conditions 4
Slide 36: Structurally higher demand for data & fintech
Highlight Operational & strategic review Financial review Outlook & priorities Structurally higher demand for data & fintech MTN’s investment case and medium-term growth underpinned by structural demand Data traffic Fintech transaction volume Average data traffic per quarter (Petabytes) Average tran
Slide 37: FY 2025 priorities
Highlight Operational & strategic review Financial review Outlook & priorities FY 2025 priorities Focus on continued operational and strategic execution Sustain Accelerate Drive expense and Strengthen operational momentum fintech strategy capital efficiencies balance sheet • Accelerate MTN SA toplin
Slide 38: Q&A
Gm) | 32.. Q&A
Slide 39: Thank you
Thank you Contact: Thato Motlanthe Group executive - Investor Relations Investor.relations@mtn.com 39
Slide 40: Appendices
Appendices 40
Slide 41: Definitions
Definitions • All financial numbers are YoY unless otherwise stated • All subscriber numbers are compared to end-December 2023 unless otherwise stated • Service revenue excludes device and SIM card revenue • Data revenue is mobile and fixed access data and excludes roaming and wholesale • Fintech in
Slide 42: Macro indicator | Inflation
Macro indicator | Inflation Average FY 24 FY 23 Worsening /(Improving) MTN Group 14.5% 16.7% (2.2pp) South Africa 4.4% 6.0% (1.6pp) Nigeria 33.2% 24.5% 8.7pp Ghana 22.9% 40.3% (22.3pp) Cameroon 6.1% 6.1% (0.0pp) Cote d’Ivoire 4.0% 4.6% (0.6pp) Uganda 3.3% 5.5% (2.2pp) Sudan 123.3% 67.7
Slide 43: Macro indicators | Closing FX rates
Macro indicators | Closing FX rates ZAR: LC ZAR: Local currency FY 24 FY 23 strengthening/(weakening) Nigerian naira 81.20 49.65 63.5% Iranian rial 33 185.44 21 372.32 55.3% Ghanaian cedi 0.78 0.66 18.2% Cameroonian franc 33. 53 32.45 3.3% Ugandan shilling 194.64 206.91 (5.9%) South Sudane
Slide 44: Macro indicators | average FX rates
Macro indicators | average FX rates ZAR: LC ZAR: Local currency FY 24 FY 23 strengthening/(weakening) Nigerian naira 82.25 32.58 152.5% Iranian rial 26 000.70 19 379.16 34.2% Ghanaian cedi 0.79 0.64 23.4% Cameroonian franc 33. 15 32.84 0.9% Ugandan shilling 205.17 202.47 1.3% South Sudanes
Slide 45: Share of Profits and JV
Share of Profits and JV % change constant (Rm) FY 24 FY 23 % change currency Telco joint ventures 4 975 3 495 42.3 137.9 Iran (reported) 4 683 3 124 49.9 174.1^ Iran (excl. hyperinflation) 4 407 2 000 120.4 174.1 Iran (hyperinflation) 276 1 124 (75.4) 0.0 eSwatini 59 71 (16.9) (16.9) Botswana 233 30
Slide 46: We continue to drive efficiency measures to curb macro impacts
Highlight Operational & strategic review Financial review Outlook & priorities We continue to drive efficiency measures to curb macro impacts Expense breakdown Total cost to revenue contribution % ch (Rm) constant currency 61.1% 62.1% 6.3% 43.4% Cost of sales 46.8% 27.0% Cost of Sales 28.6% 45.0% 17
Slide 47: Net debt composition
Net debt composition Nigeria borrowings (%) Head office borrowings (%) 77%^ 79% (2023: 89%) (2023: 77%) Naira ZAR 23% Non-ZAR Non-Naira (2023: 11%) 21% (2023: 23%) Nigeria cash (%) Head office cash (%) 81% Non-ZAR (2023: 91%) ZAR Naira Non-Naira 43% 19% (2023: 9%) (2023: 33%) 57% (2023: 67%) 47 ^ Ex