MTN Group Limited• Intensive trade marketing • Private placement concluded • MTN IFRS interest...

MTN Group LimitedReviewed interim results for thesix months ended 30 June 2008

© 2008 Mobile Telephone Networks. All rights reserved. 2

Agenda

Strategic & operational overviewPhuthuma NhlekoGroup President and CEO

Financial overviewRob NisbetGroup Finance Director

Looking aheadPhuthuma Nhleko

Strategic and operational overview

Phuthuma NhlekoGroup President and CEO


MTN vision

To be the leader in telecommunications in emerging markets

Increased competitiveness

Execution excellence

Consolidation Leverage existing footprint Convergence

Best practice Procurement synergies

Value proposition

Hub and cluster Diversification Skills

optimisation Brand


Group highlights

Group subscribersUp 53% to74.1 million

RevenueUp 35% to

ZAR 46,128 billion

EBITDAUp 29% to

ZAR 19,647 billion

PATUp 11%

to 6,964 billion

Adjusted headline EPSUp by 26%

to 408.5 cents

Market opportunity Market size

306m (2012)189m (current)

All comparatives to June 07


Key developments…

• Mobile Money- Move toward money payment and transfers rather than banking- Rollout to extend beyond SAISP’s- SA Verizon (subject to CC approval)- Côte d’Ivoire AfnetMobile TV- JV with MultiChoice- Launched in Nigeria and Kenya

Convergence

• Execution to take advantage of far larger market potential • Capex rollout of ZAR10,311 billion, up 65% from H107Rollout

Competition

• Increasing competitive environment • New entrants expected to launch in various ops in the next 6 to 12 months including

Nigeria, Ghana, Iran, Syria and Uganda• Execution of replicated product offering (MTN Zone)• Capability in challenging markets

Inflation• Inflationary pressures experienced throughout emerging markets• No material negative impact on spending patterns to date• Decline in ARPU’s in line with lower income segment penetration

Expansion opportunities

• Continue seeking value enhancing opportunities in existing and new territories


Key indicators

Subscribers(’000)Jun 08

% changeJun 07

ARPU(ZAR/US$)

Jun 08

ARPU(ZAR/US$)

Jun 07

South and East Africa 20 995 +22South Africa 15 590 +16 R145 R144Uganda 2 776 +49 $9 $11Botswana 885 +33 $13 $14Rwanda 834 +72 $11 $13Swaziland 457 +43 $15 $18Zambia 453 +124 $12 $11

West and Central Africa 32 506 +40Nigeria 18 565 +32 $16 $16Ghana 4 997 +47 $14 $16Côte d’Ivoire 3 030 +40 $11 $14Cameroon 3 106 +59 $12 $14Guinea Conakry 797 +103 $10 $15Benin 779 +37 $16 $15Congo Brazzaville 522 +86 $23 $18Liberia 407 +61 $16 $19Guinea Bissau 303 +115 $12 $18

Middle East and North Africa 20 557 +156Iran 11 593 +485 $9 $10Syria 3 375 +30 $19 $20Sudan 2 109 +38 $7 $15Yemen 1 725 +33 $8 $10Afghanistan 1 627 +209 $6 $11Cyprus 128 +29 $45 $39

Total MTN 74 058 +53 $14 $17


Subscriber contribution by region

0

100

200

300

400

500

600

700

Dec-06 Jun-07 Dec-07 Jun-08

SEA WECA MENA

MTN Group

Total(subscriber million)

Proportionate*(subscriber million)

* Based on % ownership

Increased diversification

40.1

48.3

61.4

74.1

0

100

200

300

400

500

600

Dec-06 Jun-07 Dec-07 Jun-08

28%

23%

17%

12%

44%46%48%49%

28%31%35%39%

23%

19%

15%

11%43%

45%46%

46%

34%36%39%43%

34.7

40.8

50.4

58.2


SouthAfrica

Nigeria Ghana Sudan Syria Iran

Jun-07 Jun-08

Relative ARPU performance

* All ARPUs YTD

Avg ARPU (group)

$17 (Jun 07)

R144 R145

$16 $16 $16$14 $15

$7

$20 $19

$10$9

$14 (Jun 08)


EBITDA analysis

EBITDA Contribution % EBITDA Margin %

* Difference in HQ companies

SEA2007

2008

WECA2007

2008

MENA2007

2008

*MTN Group

2007

2008

100

100

8

11

54

34

57

30

44.4

42.6

25.4

54.2

35.5

29.5

52.9

33.5


South & East Africa(SEA) region

Regulatory – SA

• Mobile licence conversion

•Awaiting final publication from ICASA

•Issues remain with proposed provisions

• Competition Commission (CST’s)

•Final submission from complainant awaited

•Expect hearing H109, subject to required process

• Interconnection and facilities leasing

•Further consultation with ICASA concluded

•Awaiting publication of final regulations

• RICA

•Further deliberations on subscriber registration in Parliament currently

•Anticipate publication end 2008

• Handset subsidies

•ICASA postponed implementation date from 18 August 2008 to 1 February 2009

•MTN will engage with ICASA re remaining issues

Subs 21m (28% group) Revenue ZAR17.6bn (38% group) EBITDA ZAR5.9bn (30% group) PAT ZAR3.2bn (45% group)

Population: 102,4m

Zambia6

Swaziland5

Rwanda4

Botswana3

Uganda2

South Africa1


• Strong prepaid value-proposition• MTN Zone (4.5m subs)

• Increased customer value

• Lower denomination vouchers

• Postpaid subscriber growth• Low voice and hybrid plans migrating to

prepaid

• Continued unwinding of on-biller

• Distribution strategy execution• Acquisition of the remaining 51% of I-

Talk (subject to CC approval) and Cell Place

• Ranked as one of SA’s Top 10 Brands**

• Non-recurring investment in strategic initiatives, diluting EBITDA

South Africa– operational highlights

1,784 2,288 2,493 2,588

8,59610,368

12,306 13,002

Dec-05 Dec-06 Dec-07 Jun-08

PrepaidPostpaid

Net additions(’000)

Subscribers(’000)

10 380

12,655

14,79915,590

Launched Jun 1994 Market share 36% Population 48m Market sizing 56m (2012) Penetration 90% Shareholding 100%

213

946 791

2,379 2,062

1,198

Dec-05* Dec-06 Dec-07 Jun-08

H2H1

*9 months** Ipsos Markinor / Sunday Times Top Brands Results


• Stable prepaid ARPU

• MTN zone stimulated revenue

• 30% of prepaid revenue

• Increased postpaid ARPU

• Impact of on-biller unwinding

• Acquisition of Verizon (subject to CC approval)

South Africa– operational highlights

ARPUZAR

Avg. total MOU comprises both incoming andoutgoing minutes

129 124 106 100

488441

396 405

163 159 149

92 95 92

145

92


Postpaid

Blended

Prepaid

* 9 months

Outgoing MOU 78 79 65 63


• Improved capacity on networks• 2G - 9%

• 3G - 26%

• 79 (2G) and 89 (3G) new sites built

• Fibre optic metropolitan network• Trials completed in June

• 5000km national fibre network• Tender completed

• Build to start Q408

• Improved data value propositions• Reduced pricing on Blackberry

• MTN Xploaded

• Two new low-end data plans

South Africa– infrastructure and data highlights

1,6661,205 1,294

1,772

5901,186

1,549


H2H1

Data revenueZAR (million)

CapexZAR (million)

2,256 2,391

2,843

* 9 months

Capex as % of revenue 14.5 9.7 10.1 11.5

679 7791,221

1,696403

1,159

1,535


H2H1

1,083

1,938

2,756

As % of SA revenue(excluding handsets) 8.2 9.0 11.0 12.0

1,772

1,696

© 2008 Mobile Telephone Networks. All rights reserved.15

Population: 230,1m

West & Central Africa(WECA) region

Regulatory:Nigeria• New numbering plan approved (10m

more numbers)• Significant QoS improvements should

assist in resolving advertising ban still in place

• Paid N175 per subscriber over May and Jun 08

Ghana• Introduction of 6% CST on revenue

effective Jun 08• 3G bidding initiated – terms and

conditions almost finalisedLiberia• Ongoing negotiation following licence

standardisation process initiated by regulator

Subs 33m (44% group) Revenue ZAR21bn (46% group) EBITDA ZAR11bn (57% group) PAT ZAR4bn (57% group)

Bissau9

Liberia8

Congo B7

Benin6

Conakry5

Cameroon4

Côte d’Ivoire3

Ghana2

Nigeria1


8,370

12,281

16,51118,565


MTNSubscribers('000)

ARPU (USD)

• Increased competition

• 1 new entrant expected in Q408

• Aggressive competitor activity including PTO’s

• Voluntary reduction of SIM’s in channel to manage quality in Q208

• Stable MOU and tariffs

• Decentralised distribution

• Intensive trade marketing

• Private placement concluded

• MTN IFRS interest now 78%

Nigeria– operational highlights

Launched Aug 2001 Market share 43% Population 141m Market sizing 80m (2012) Penetration 31% Shareholding 76%**

*9 months

**Legal

Subscribers (‘000)/ARPU ($)

Outgoing MOU 74 53 52 52

22 18 17 16

Net additions(‘000)

1,2661,755 2,054

3,978

2,6452,475


H2H1


• Network quality remains a priority

• 1407 BTS’s rolled out in 12 months

• 768 BTS’s including 494 3G co-located on 2G sites

• Transmission expansion continued

• Availability of network still a challenge

• Data increasingly important:

• Data as % of revenue 3%

• Mobile TV (launched Apr 08)

• SMS 86% (from 99%) of total revenue

• Renewed focus on leveraging VGC and XS Broadband

Nigeria– infrastructure and data highlights

2,1841,553 1,810

3,942

1,6652,121

2,979


H2H1

BTS rollout

CapexZAR (million)

3,849 3,674

4,789

* 9 months

Capex as % of revenue 42.6 24.6 23.6 29.3

335189 146

758123209

639


H2H1

458398

785

3,942

758


2,585

4,0164,997

141417

Dec-06 Dec-07 Jun-08


ARPU (USD)

• Strong subscriber growth 47% (from Jun 07)

• Enhanced value propositions

• MTN zone launched in Jun 08 (2.5m subs)

• Increased MOU

• Usage based promos (MTN family)

• Increasing competition

• New entrants expected to launch in next 12 months

• Privatisation of parastatal to foreign operator

Ghana– operational highlights

Launched Nov 1996 Market share 52% Population 23.1m Market sizing 15m (2012) Penetration 42% Shareholding 98%

Outgoing MOU - 104 113

Net additions(’000)

807981

567

624


H2H1



• Network rollout gaining momentum

• Significant improved network quality

• Dropped calls 32%

• Fibre rollout of 492km

• Data initiatives

• Launch of Blackberry

• Data products for higher value customers

• Extensive edge deployment

Ghana– infrastructure and data highlights

317 262

840484

977


H2H1

BTS rollout

CapexZAR (million)

801

1,239

* 9 months

Capex as % of revenue 28.5 32.8 29.5

328483

302

390


H2H1

302

718

483

840


Middle East & North Africa(MENA) region

Regulatory:Iran• Interconnect

• Agreement signed and payment received

• New interconnect rate negotiations

Sudan• Interconnect rate set by regulator

Syria• 3rd operator anticipated

Subs 21m (28% group) Revenue ZAR7.3bn (16% group) EBITDA ZAR2.1bn (11% group) PAT ZAR0.6bn (9% group)

Population: 184,4m

Cyprus6

Afghanistan5

Yemen4

Sudan3

Syria2

Iran1


6,006

11,593

1549109



ARPU (USD)

• High subscriber growth

• Promotional campaigns including bonus SIMS (BOGOF)

• Strong brand image

• Marginal decline in ARPU

• Increased penetration into lower income segments

• Reduced free minutes

• Enhanced products to reduce churn and dormancy

• Spring campaign (price plan promos)

• 3rd operator expected to be granted licence in Dec 08

Iran– operational highlights

Launched Dec 2006 Market share 32% Population 71.3m Market sizing 52m (2012) Penetration 50% Shareholding 49%

Outgoing MOU 85 92 70


1,829

5,587

4,023

154


H2H1



• Slower than anticipated rollout

• Equipment shortages

• Bad weather conditions

• Norouz

• Expect to catch up in H2

• Data increasingly important

• 8% of total revenue

• SMS 93% of data revenue

• VAS launched

Iran– infrastructure and data highlights

98

714 601675

845


H2H1

BTS rollout

CapexZAR (million)49% ownership

773

1,559

Capex as % of revenue - 116.3 31.4

748 696361

894


H2H1

361

1,642

696

601


71216



ARPU (USD)

• Disappointing growth

• NTC’s (regulator) requirement to disconnect subscribers without personal info

• 1.1 million subs disconnected in Q208

• Market share loss to 25%

• Increased and aggressive competition to capture disconnected subscribers

• Reduced effective tariffs and connection fee to match competition

• Revitalised distribution and value proposition strategy to be implemented in H208

Sudan– operational highlights

Launched Sep 2005 Market share 25% Population 37m Market sizing 18.3m (2012) Penetration 22% Shareholding 85%



457

19

475

567


H2H1


1,066

2,090 2,109


• Deployment of 3G (core)

• IN platform change to facilitate deployment of products

• Rollout in South Sudan in H208

Sudan– infrastructure and data highlights

203

492 583421

472


H2H1

BTS rollout

CapexZAR (million)

624

964

* 9 months


158

313191

128

252


H2H1

256

575

583

191


2,237

3,1093,375

192022



ARPU (USD)

• Subscriber growth

• extended validity on selected products

• Enhanced promo products (discounts)

• Postpaid disconnections in H108 (bad debts)

• Stable market share

Syria– operational highlights

Launched Jun 2002 Market share 46% Population 19.5m Market sizing 11.7m (2012) Penetration 38% Shareholding 75%



355 266494

517


H2H1



• Network rollout in Q208 to improve service quality

• Increased radio network capacity

• Core network renovation

• 3G trials continued

• Enhanced data products

• Reduction in GPRS tariffs

• Flat rate SIM promos

Syria– infrastructure and data highlights

119242

309

219

242


H2H1

BTS rollout

CapexZAR (million)

338

418


69124 152

191

193


H2H1

191

317

309

152

Financial overview

Rob Nisbet, Group Finance Director


H1 CAGR39%

H1 CAGR21%

Financial trends

278.5 324.7408.5

306.2357.2


8.715.2

19.6

16.6

13.8


46.134.2

20.2

38.9

31.4


Group revenueZAR billion

Group EBITDAZAR billion

Adjusted HEPS*cents

H1 H2

* Basic headline earnings Jun 08 – 339.3 cents (Jun 07 – 304.2 cents)Adjustment to reverse the utilisation of previously raised deferred tax and the put option impact

34.9% 29.2% 25.8%

H1 CAGR39%


Key accounting considerations

• Syria, however immaterial, will be reviewed in DecemberIFRIC 12

(BOT)

Group tax

• Total tax ZAR5 472m (Normal tax ZAR3 554m, deferred tax ZAR1 534m, STC ZAR263m and withholding taxes ZAR121m)

• 44.0% effective tax rate YTD (2007: 33%)• AHEPS effect (MTN share):

–Unwind of pioneer status deferred tax assets ZAR425m (total ZAR542m)

PPA Amortisation

• PPA amortisation – ZAR756m (2007: ZAR688m) Investcom ZAR590m (2007: ZAR568m)• 2007 Profit after tax by operation has been adjusted to reflect PPA entries

Put option

• Impact of put option (MTN share ZAR865m) (Jun 07 – ZAR167m) –Finance cost – ZAR161m–Fair Value adj. – ZAR520m–Forex Loss – ZAR243m–Minority share of profits – (ZAR59m)

Change in ownership

• Reduced accounting interest in Nigeria from 84.57% to 78.61% - Feb 08 (Legal interest: 76.08%) (Proceeds from disposal – USD594m)

• Reduced stake in Cyprus from 99% subsidiary to 50% JV - subject to competition commission approval

• Acquisition of 100% of Verizon – subject to competition commission approval

FX• Forex gain (ZAR794m) in MTNI Mauritius (ZAR functional currency) after transfer to

reserves (IAS21) (Jun 07 – ZAR19m)• Net forex gain – ZAR288m excl Put ZAR597m (Jun 07 – Net forex loss – ZAR130m)


261.0

25.5(43.9)

165.9

Earnings per share

cents 6 monthsended Jun 08

6 monthsended Jun 07

% change

Basic headline earnings per share 339.3 304.2 11.5

Reversal of put option in respect of subsidiary 46.4 9.0 415.6

Reversal of the subsequent utilisation of deferredtax asset 22.8 23.5 (3.0)

Reversal of deferred tax asset - (12.0) (100.0)

Adjusted headline earnings per share 408.5 324.7 25.8

2008 2007

217.3

1.7(38.3)

144.0

South & East Africa

West & Central Africa

Middle East & North Africa

Head Office Companies


Technical analysis of the NigeriaPut Option

RationaleIn terms of IFRS, MTN has no control over the exercising of the put and therefore cannot avoid an outflow of cash, hence must provide for potential liability, regardless of the fact that in return for the cash outflow an asset will be acquired at fair market value

Inception Each reporting period

1) De-recognise the sale to minorities

2) Raise the liability at fair value

a) Fair value reassessed at each reporting period

b) Revalue the liability (USD ZAR)

c) Put only exercisable between 2008 – 2013 therefore present value the liability

d) Reverse out current period minority profit


Exchange rates analysis

Average (PAT) Closing

Jun 08 Jun 07 % var Jun 08 Jun 07 % var

Rand per Dollar 7,57 7,13 (6.2) 7,81 7,01 (11.4)

Nigerian Naira per Dollar 116,72 128,19 8.9 117,85 127,33 7.4

Nigerian Naira per Rand 15,41 17,86 13.7 15,09 18,16 16.9

Iranian Rials per Dollar 8 990,85 9 243,24 2.7 9 300,00 9 274,00 (0.3)

Iranian Rials per Rand 1 186,92 1 291,90 8.1 1 190,48 1 332,44 10.7

Ghana Cedis per Rand 0,13 0,13 - 0,13 0,13 -

Sudanese Dinars per Rand 0,27 0,28 3.6 0,26 0,29 10.3

Syrian Pounds per Rand 6,11 7,12 14.2 5,88 7,18 18.1


Income statement

ZAR million 6 monthsendedJun 08

6 monthsendedJun 07

%change

Revenue 46 128 34 206 34.9

EBITDA 19 647 15 201 29.2

EBITDA MARGIN 42.6% 44.4% (1.8 pts)

Depreciation (4 395) (3 210) 36.9

Amortisation (1 319) (1 099) 20.0

Profit from operations 13 933 10 892 27.9

Net finance costs (1 499) (1 491) 0.5

Share of profits of associates 2 5 (60.0)

Profit before taxation 12 436 9 406 32.2

Income tax expense (5 472) (3 101) 76.5

Profit after taxation 6 964 6 305 10.5

Minority interest (724) (750) (3.5)

Attributable profit 6 240 5 555 12.3


Revenue analysis

ZAR million 6 months ended Jun 08

6 months endedJun 07

%change

ZAR

%change

LC’s

South & East Africa 17 609 14 556 21.0

South Africa 15 419 13 093 17.8

Other operations 2 190 1 463 49.7 / 35.4

West & Central Africa 21 132 15 053 40.4

Nigeria 13 446 9 656 39.3 20.1

Ghana 2 844 2 021 40.7 40.9

Other operations 4 842 3 376 43.4

Middle East & North Africa 7 324 4 575 60.1

Iran 1 912 431 343.6 311.2

Syria 2 866 2 141 33.9 16.1

Sudan 797 864 (7.8) (13.4)


Head Office Companies 63 22 186.4

Total 46 128 34 206 34.9


1,4

6,4

1,4

25,0

8,7

34,1

1,61,7

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Airtime &Subscription

Fees

Interconnect Cellulartelephones

andaccessories

Other

20072008

Revenue analysis

(ZAR34.2bn)

(ZAR46.1bn)

• Airtime revenue mainly on prepaid growth in subscriber base (Nigeria, Iran, Ghana)

• Interconnect revenue:

• Nigeria up 48% on high growth in traffic volumes

• Iran significantly higher due to high fixed line penetration and increased subscriber base

• RSA interconnect up 11% year-on-year with strong contribution from prepaid growth

• Handset sale:

• RSA handset revenue up 19% year–on–year

• Strong growth in low cost handset sales in other markets

36.4%

36.1%

25.9% 11.2%


EBITDA analysis



%change

ZAR

%change

LC’s


South Africa 4 955 4 492 10.3

Other operations 950 671 41.6 / 25.7

West & Central Africa 11 174 8 162 36.9

Nigeria 7 868 5 679 38.5 20.0

Ghana 1 316 1 045 25.9 32.4


Middle East & North Africa 2 161 1 163 85.8

Iran 563 (181) 411.0 389.6

Syria 921 679 35.6 17.5

Sudan 219 320 (31.6) (40.4)

Other operations 458 345 32.8

Head Office Companies 407 713 (42.9)

Total 19 647 15 201 29.2


EBITDA margin analysis

44,4

-

30,3

37,0

31,7

(42,0)

25,4

42,6

51,7

58,8

54,2

45,9

34,3

35,5

Jun 07EBITDA

margin %

(1.8)

(4.1)

(9.5)

0.4

71.4

4.1

(1.5)

(5.4)

(0.3)

(1.3)

(2.5)

(2.2)

(1.9)

%change

pts

ZAR million Jun 08EBITDA

margin %

South & East Africa 33,5

South Africa 32,1

Other operations 43,4

West & Central Africa 52,9

Nigeria 58,5

Ghana 46,3


Middle East & North Africa 29,5

Iran 29,4

Syria 32,1

Sudan 27,5


Head Office Companies -

Total 42,6


Operating expenses analysis

• Direct network operating costs• 15% of the increase from Nigeria

• Rent and rates up 150%• Fuel and electricity up 101%

from Jun 07• Revenue share – Iran (79%) , Syria

(34%) from Jun 07

• Employee benefits• Nigeria monetisation of benefits and

long term incentive provision

• Selling, distribution and marketing• RSA connection incentives (higher

value phone upgrades)• AFCON• Increased marketing activity in

Nigeria

• Other• RSA and Group standardisation

professional consulting fees• Asset and inventory write-downs

2,4

3,9

4,7

1,6

2,1

4,7

3,4

6,4

2,2

6,2

5,9

2,0

Direct networkoperat ing

costs

Cost ofhandsets andaccessories

Interconnectand Roaming

Employeebenef its

Selling,dist ribut ion

and market ing

Other

20072008

(ZAR19.0bn)

(ZAR26.5bn)

49.8%

31.1% 36.8%

22.8%

38.9%

59.7%


Finance costs



Year ended

Dec 07

Finance costs (3 550) (2 666) (4 953)

Interest paid (1 959) (1 666) (3 151)

Put option - finance costs (206) (139) (273)

- Revaluation of liability (Forex losses) (309) - -

- Fair value (663) (156) (310)

Forex losses (300) (450) (746)

Revaluation and settlement of FEC’s (Forex losses) (113) (255) (473)

Finance income 2 051 1 175 1 780

Interest received 1 041 601 1 336

Forex gains 216 402 245

Put option - revaluation of liability - 7 24

Functional currency gains (Forex gains) 794 19 29

Revaluation and settlement of FEC’s - 146 146

Net finance cost (1 499) (1 491) (3 173)


Profit after tax



% change

ZAR

% change

LC’s


South Africa 2 795 2 348 19.0


West & Central Africa 3 985 4 264 (6.5)

Nigeria 2 489 2 998 (17.0) (28.0)

Ghana 600 393 52.7 31.4


Middle East & North Africa 636 189 236.5

Iran 71 (344)

Syria 431 276 56.2 25.7

Sudan (93) 141 (166.0) (151.9)

Other operations 227 116 95.7Head Office Companies (819) (832) 1.6

Total 6 964 6 305 10.5


Tax considerations

Material reconciling items:• Effective rate reconciliation to 28.00%• Nigeria 10.32% • Non allowable interest on Investcom

acquisition 1.11% • STC and net withholding taxes suffered 2.87%• Nigeria Put Option effect 2.6%

Looking forward Dec 08• Group effective rate expected in higher 30’s based

on :• Nigerian tax• Effect of Nigeria Put Option• Disallowed expenses• Nigeria effective tax rate 53% this period,

expected to decline to lower 40’s

Nigerian tax 2008 (ZAR million)

Tax 2,871

Normal tax 1,349

Deferred tax 1,522

Effective tax rate 53%

20.40

32.97

39.53

13.64

44.0

17.6419.76

13.712.59

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Jun-06 Dec-06 Jun-07 Dec-07 Jun-08

MTN Group

Investcom

Effective tax rates%

0

25

50

75

Dec-07 Dec-08 Dec-09 Dec-10

Accountingtax rate

Cash taxrate

Nigeria – expected trends in effective tax ratesIllustrative %


Balance sheet

ZAR million As atJun 08

As atJun 07

Non-current assets 98 963 79 330

Property, plant and equipment 50 125 33 954

Goodwill and other intangible assets 43 450 40 524

Other non-current assets 5 388 4 852

Current assets 46 585 26 574

Bank balances 27 582 13 366

Other current assets 19 003 13 208

Total assets 145 548 105 904

Capital and reserves 67 228 47 033

Non-current liabilities 34 075 28 661

Long term liabilities 29 313 24 531

Deferred taxation and other non-current liabilities 4 762 4 130

Current liabilities 44 245 30 210

Put Option 3 258 -

Non–interest bearing liabilities 29 737 20 287

Interest bearing liabilities 11 250 9 923

Total equity and liabilities 145 548 105 904

* Net debt 12 981 21 088


Analysis of net debt position

As at 30 Jun 08ZAR million

Net debt/ (Cash)

Interest bearing

liabilities*

Cash and cash equivalents

South & East Africa 4 041 7 501 3 460

South Africa 4 310 6 703 2 393

Other operations (269) 798 1 067

West & Central Africa 6 391 14 190 7 799

Nigeria 7 069 12 355 5 286

Ghana (1 746) - 1 746

Other operations 1 068 1 835 767

Middle East & North Africa 1 061 5 035 3 974

Iran 4 259 4 532 273

Sudan 254 311 57

Syria (2 987) 50 3 037

Other operations (465) 142 607

Head Office Companies 1 488 13 837 12 349

Total 12 981 40 563 27 582

* Including long-term borrowings, short-term borrowings and overdrafts


Interest bearing liabilitiesas at Jun 08

Interest bearing liabilities

Cash and cash equivalents

25%

35%

40%

ZARUSD/EURLocal currency

• Fundraising at operational level • Zambia approx. USD39m (100% LC)

• Intercompany funding from head office co’s currently totals ZAR12.2bn including allocations:• Iran ZAR3.6bn

• RSA ZAR5.2bn

• Unproductive interest reduced further to ZAR10.9bn (Jun 08) from ZAR13.5b (Feb 08)

• Cash accumulation• Holding Co’s – July repayment of capital on

term loans

• Syria, Ghana, Nigeria

• Net debt to EBITDA of 0.36x (Dec 07:0.5x)

• Fitch rating upgrade• National scale rating to AA-(zaf) from A+(zaf)

• Outlook remains stable

48%

23%

29%

ZARUSD/EURLocal currency


Cash flow statement


6 months ended Jun 07

Net cash generated by operations 19 934 14 562

Net interest paid (1 004) (1 200)

Taxation paid (3 406) (2 280)

Dividends paid (2 536) (1 674)

Cash inflows from operating activities 12 988 9 408

Cash outflows from investing activities (7 444) (7 170)

Acquisitions of PP&E (excluding software) (9 882) (5 966)

Other investing activities 2 438 (1 204)

5 544 2 238

Cash inflows from financing activities 3 209 41

Net movement in cash and cash equivalents 8 753 2 279


Capital expenditures (incl. software)

24 502

240

13

5

3 553

3 811

1 743

1 888

8 980

12 611

1 877

6 203

8 080

Committed 2008

6 256

(5)

339

247

492

725

1 803

700

270

1 810

2 780

296

1 382

1 678

Actual2007

ZAR million Approved2008

Actual 2008

South & East Africa 8 281 2 405

South Africa 7 101 1 772

Other operations 1 180 633

West & Central Africa 17 463 5 842

Nigeria 13 092 3 942

Ghana 1 976 840

Other operations 2 395 1 060

Middle East & North Africa 4 837 1 980

Iran 2 089 601

Sudan 1 017 583

Syria 843 309

Other operations 888 487

Head Office Companies 84

Total 30 581* 10 311

* Balance sheet impact expected to be R25bn at Dec 2008


MTN Group- capital expenditure trends (USD’m)

• Increased investment in infrastructure to cater for increasing demand

• Significant network infrastructure spend in most operations drive year-on-year growth in capex spend and marginal capex / subscriber

• H1 spend represents 40% of ZAR25bn target for 2008 in line with 2007 H1 spend

• USD 3bn committed at Jun 08, including accelerated approvals for H1 2009 network capex

• 2006 marginal capex / subscriber impacted by Investcom acquisition

• 2008 capex spend in ZAR influenced by changes in fx rates (2008 target of ZAR25bn estimated at average fx rate of 7.22)

2619 21 22

227

180

138

83

160168

119

138

0

50

100

150

200

250


Capex / Revenue %

Cumulative Capex per subscriber US$

Marginal Capex / subscriber US$

5,2535,253

7,2127,212

9,7649,764

10,87710,877

Cumulative Capex


16

South Africa- capital expenditure trends (ZAR bn)

• Network quality improvement top priority, reflected by sharp increase in marginal capex / subscriber

• H1 spend ZAR2.2bn is 30% of full year target

• Significant spend expected in H2

• IS projects in progress include wholesale and retail billing systems, CRM tools (ZAR0.8bn)

111010

1.09

1.15

1.13

1.231.06

2.24

0

2

4

6

8

10

12

14

16

18

20


Capex / Revenue %

Cumulative Capex per subscriber (ZAR '000)

Marginal Capex / subscriber (ZAR '000)

14

18

Cumulative Capex


Nigeria- capital expenditure trends (USD’m)

• 45% of full year target capex spent H1 2008

• Significant investments in network capacity and coverage, transmission (fibre/microwave) (758 2G and 494 3G completed)

• Marginal capex trend reflects increased investment in network

• Total 2008 spend estimated at USD1.2bn

4325 24 29

292

243

213

133

243242

161

253

0

50

100

150

200

250

300

350


Capex / Revenue %

Cumulative Capex per subscriber US$

Marginal Capex / subscriber US$

2,4472,447

2,9912,991

3,9943,9944,5194,519

Cumulative Capex

Looking forward

Phuthuma Nhleko


Looking forward…

Expansion opportunities

• Actively seeking value-accretive opportunities in emerging markets

Rollout• Ongoing infrastructure investment to ensure appropriate levels of

capacity and quality of service for enlarged market potential

Convergence• Ensuring the Group is well positioned to benefit from a rapidly

converging technology market

Optimise operations

• Optimise efficiencies in maintaining and improving a competitiveposition

Regulations • Constructive engagement with regulatory authorities


Subscriber guidance 2008

Net additions guidance at Dec 07

Net additions guidance at Jun 08

South Africa 2,200 2,200

Nigeria 5,000 5,000

Ghana 1,300 1,300

Iran 7,000 8,500

Syria 680 680

Sudan 1,100 500

Rest 4,500 4,500

21,780 22,680

Thank you

Questions


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 forward looking statements expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements.

Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

MTN Group Limited• Intensive trade marketing • Private placement concluded • MTN IFRS interest...

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