MTN Group Limited · JSE:MTN
MTN — Investor Presentation (2008)
17 slides from MTN's investor presentation, 2008
Slide 1: MTN Group Limited – A growth strategy
MTN Group Limited – A growth strategy Phuthuma Nhleko Group President and CEO
Slide 2: The emerging market opportunity
The emerging market opportunity • Population Mobile penetration forecast in • Africa > 853 m Africa and Middle East • Middle East >244m • Significant untapped telephony market potential • Stagnant fixed line growth • Mobile technology able to leap frog fixed line as a solution • Mobile becoming “de
Slide 3: MTN's opportunity
MTN’s opportunity Nigeria Iran Market size 80m Group Market share 43% Market size 52,5m Market share 32% subscribers Penetration 31% GDP/capita 1,490 Penetration 50% GDP/capita 5,247 80,736 Cote d’Ivoire Syria Market size 7.8m Market size 11,7m Market share 40% Market share 46% Penetration 36% Penet
Slide 4: Building blocks of the growth strategy
Building blocks of the growth strategy To be the leader in telecommunications in emerging markets Leverage existing footprint Convergence Consolidation Increased competitiveness Hub and Procurement Skills Value Best practice Diversification Brand cluster synergies optimisation proposition Execution
Slide 5: Consistent spending patterns
Consistent spending patterns Rising inflation has not had negative impact on quantum of disposable income to date Inflation rate (%) ARPU R145 R147 $16 $17 $14 $19 $20 $13 $12 $12 $9 $9 $11 $11 $9 $9 $7 $7 $6 $6 Avg ARPU $14 (Sep 08) (group) * All ARPUs YTD 5
Slide 6: FX backdrop
FX backdrop Exchange rates LC: USD 6
Slide 7: Well positioned
Well positioned South Cote Afghani- Uganda Nigeria Ghana Cameroon Iran Sudan Syria Africa d’lvoire stan No of National 3 5 4 6 3 4 2 3 2 4 GSM operators To launch - 1 1 2 - - 1 - 1 - Market 2 1 1 1 1 1 2 3 2 3 position Market share 36% 50% 43% 52% 60% 40% 32% 25% 46% 29% (Jun 08) Wimax Fixed line CD
Slide 8: Investing for growth
Investing for growth Investing to take advantage of the large market potential • Significant network infrastructure spend 10,877 9,764 • H1 spend represents 40% of ZAR25bn target for 2008 in line with 2007 H1 spend 7,212 • USD 3bn committed at Jun 08, 5,253 including accelerated approvals for H1 200
Slide 9: Operational structure support
Operational structure support 9
Slide 10: Integrated service provision
Integrated service provision Positioning ourselves as an integrated service provider Data Revenue • South Africa ZAR (million) • Data as a % revenue – 12% (Jun08) • Improved data propositions • Purchase of Verizon (subject to CC approval) • Nigeria • Data as a % of revenue -3% (Jun08) • Renewed focu
Slide 11: Managing risks
Managing risks Economic Technical Human resources Political / regulatory Key challenges Repatriation risk Currency fluctuation Shadow economies often rather than real economies Limited infrastructure Availability of skilled staff in country Political and regulator uncertainty Risk management Investm
Slide 12: Portfolio management
Portfolio management MTNdiversification Increased Group Total 73 417 (Revenue ZAR million) 51 595 15% 46 128 27 212 7% 16% 23 730 19 405 42% 34% 40% 41% 32% 46% 70% 66% 60% 51% 43% 38% *** difference in HO companies MENA * 9 months * 6 months 12
Slide 13: Margin managment
Margin managment EBITDA Contribution % EBITDA Margin % 2007 34 35.5 SEA 2007 30 33.5 2007 54 54.2 WECA 2008 57 52.9 2007 8 25.4 MENA 2008 11 29.5 2007 100 44.4 *MTN Group 2008 100 42.6 Difference in HQ companies Comparatives June to June 13
Slide 14: Other considerations
Other considerations Global backdrop MTN • World recession • Balance sheet structure • Economic slowdown in • Local funding Africa and ME • No material re-financing • Slowing GDP growth • Strong cash flows although still positive • Governance • Impact of oil and commodity prices • JSE / King code •
Slide 15: Looking forward…
Expansion opportunities Convergence Optimise operations Regulations Actively seeking value-accretive opportunities in emerging markets Ongoing infrastructure investment to ensure appropriate levels of capacity and quality of service for enlarged market potential Ensuring the Group is well positioned
Slide 16: Thank you
Thank you Questions
Slide 17: Notice
Notice The information contained in this document 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 herein. Opinions and