Slide 1: MTN Nigeria Investor Presentation FY 2021
MTN Nigeria | Investor Presentation FY 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 con
Slide 3: Agenda
Agenda Operational Review Financial Review Looking Ahead Appendix
Slide 4: Operational Review
Operational Review Karl Toriola
Slide 5: MTN Nigeria at a Glance
MTN Nigeria at a Glance Nigeria’s leading mobile operator and provider of communication services Ig Z With over 68 million subscribers, we are connecting Nigerians with each other and to a world of people, ideas and opportunities. Our belief is that everyone deserves the benefits of a modern, connec
Slide 6: Nigeria's Leading Mobile Operator
Nigeria’s Leading Mobile Operator 68.5 million 34.3 million 9 .A million 3.8 million subscribers data subscribers active MoMo users ayoba subscribers 70.3% 82.5% 89.8% 50.1% 49.9% 4G population 3G population 2G population Data Smartphone coverage coverage coverage penetration penetration Exciting da
Slide 7: ESG
ESG SZ Eco-responsibility Giawmact | 12 foemern | 13 stor ar (ca) 5 IPP Commissioned 5 Independent Power Plants (IPP) with 2 running on piped natural gas and 3 on compressed natural gas, significantly reducing CO, emissions SBS 60% Reduction in paper & toner \sumption from office igitization campaig
Slide 8: 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 Development 28) Flagship Head Office Scaling Fintech Business (000 * Participation in the Road Infrastructure Tax Credit (
Slide 9: Competitor Landscape and Market Opportunities
Competitor Landscape and Market Opportunities MTN is the leading player in the market with 50.8% of subscriber market share and 4G leadership Market share by mobile subscribers! Market opportunities 11.2% 60% 13.9% 14.5% 17.5% 15.6% WENO | 25.8% | 27.1% | | 27.9% | | 30.6% | 31.2% 49.1% 50.0% 48.5%
Slide 10: Operational and Commercial Performance
Operational and Commercial Performance Voice and data services, driving continued commercial momentum Mobile Subscribers, in millions Total Data Subscribers, in millions Average Revenue per User, N = Active Users Incidental Users2 _ 4 64.9 585 A o.878, 76: - 64.3 65 68.5" 53.8 1,503.2 1,519.1 1,501.
Slide 11: Operational and Financial Performance
Operational and Financial Performance Solid track record of leadership and continuous improvement gh Total Revenue Nb 22: mane 1,654 1, ae 1,039 1,170 ‘| 2018 2019 2020 2021 & Sustained Investment in of) Technology Capex intensity 240 Copex n> 54 208 2018 2019 2020 2021 gh NPS Market Leadership [=]
Slide 12: Industry-wide SIM Registration Update
Industry-wide SIM Registration Update Impact on voice revenue reduced by migration to higher quality of service and higher usage in active base Subscriber net adds Active data users net adds NIN registration update te © lim [Eom] 0.7m Lad ar 44m >64% >74% 2.6 J Subscriber NIN %oF = OF 0.02m submitte
Slide 13: Fintech Journey of Progress
Fintech Journey of Progress Leveraging our Super-Agent licence and single distribution strategy, we have grown our MoMo agent network, serving approximately 9.4m users 5% 5% FY 2021 FY 2020 Revenue mix 5% FY 2019 OXtratime OMobile money Transaction volume Agent network (‘000) Active users 9.4m Activ
Slide 14: Financial Review
Financial Review Modupe Kadri
Slide 15: Financial Framework underpinning our Ambition 2025 Strategy
Financial Framework underpinning our Ambition 2025 Strategy XL L a > ‘a C ‘a Service Margin Value based Attractive revenue growth expansion capital allocation FCF X J X X ( f (4 hf i i mprove cash Flow At least 20% Susiclin ASIA Gite Reduced Capital intensity P' of 53-55% Well-managed leverage 0 ‘a
Slide 16: Note: Growth rates refer to year-on-year growth between 2021 and 2020 | DPS –
Note: Growth rates refer to year-on-year growth between 2021 and 2020 | DPS – Dividend per share.
Slide 17: Service Revenue Evolution
Service Revenue Evolution Solid service revenue profile driven by voice, data and fintech| Data now accounts for c.31% of service revenue Voice Data N1,037b Digital OFintech Other 2018 Service revenue evolution 4.6% N385.2b N405.1b N414.1b N446.9b 44% 43% 4.7% 4.8% 43% 45% 5% a3 1.0% 1.0% 25 63.5% 6
Slide 18: EBITDA Margin Evolution
EBITDA Margin Evolution Solid revenue growth and expense efficiencies enabled continued EBITDA growth and margin improvement, Annual EBITDA margin evolution N’b 625.0 53.4% 434.0 41.8% 2018 2019 (EBITDA 877.1 685.7 50.9% 53.0% 2020 2021 — EBITDA margin 18 Quarterly EBITDA margin evolution N’b 204.6
Slide 19: Disciplined approach to capital expenditure (capex)
Disciplined approach to capital expenditure (capex) Sustained increase in the demand for data, driving investments in our network Capex & Capex intensity Capex breakdown 2021 Intensity 17.7% 17.8% 17.8% 18.4% 2.2% Capex (N'b) 304.4 Network 3083 240.1 ° Olnformation 184.2 N304.4bn technology Other 20
Slide 20: Capex Funding strategy
Capex Funding strategy Capex is financed from a pool of operational cash and external borrowing, ensuring protection of the balance sheet against market risk and volatilities Limited foreign exchange supply * Prioritize access to foreign currency credit lines and medium-term loans * Explore repaymen
Slide 21: Capital structure
Capital structure Disciplined approach to funding activities to reduce market risk and maintain strong balance sheet Funding strategy Net debt (N’b) * Diversify Funding sources to optimize debt mix and cost — Tapped the domestic debt capital markets and raised: 122 * N200b in bonds across two (overs
Slide 22: Looking Ahead
Looking Ahead Karl Toriola
Slide 23: 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 Build the Accelerate portfolio & most ae connectivity strategic operations priorities . B
Slide 24: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 25: Enhanced risk and regulatory framework; Disciplined capital allocation
• • • • • NaaS • API Marketplace Enterprise ayoba • • fintech • • • • • • Enhanced risk and regulatory framework Disciplined capital allocation
Slide 26: Medium-term guidance
Medium-term guidance Continued commercial momentum, with an eye on efficiencies. : oa , o M Target oe Revenue evolution At least 20% 2021 @ 53-55% OVoice ORest Reducing intensity 2025 ) O Voice Minimum 80% of Rest distributable income Data, fintech and digital to drive revenue growth 26 fered 2S |
Slide 27: Key Take-aways
Key Take-aways N OO OW BR WN Ambition 2025 provides a compelling and unique growth opportunity For our business Underpinned by a solid connectivity business and value unlock opportunities in fintech and digital Sustained increase in the demand for data, driving accelerated investments in our network
Slide 28: Appendix
Appendix
Slide 29: Key Financial Highlights
Key Financial Highlights Total Revenue 22.9% 1,654,299 1,346,390 1,169,831 1,039,118 Service Revenue 23.3% 1,651,341 1,339,033 1,167,526 1,036,916 Voice 8.4% 971,445 895,971 848,262 782,323 Data 55.3% 516,149 332,413 219,879 154,380 Fintech 61.2% 18,040 11,194 4,583 28,588 Digital 57.3% 70,553 44,84
Slide 30: Thank you
Thank you Contact: Chima Nwaokoma Snr. Manager, Investor Relations Telephone: +234 803 200 0186 Email: Investorrelations.ng@mtn.com