SENS Note - 07 March 2019

MTN final results December 2018

Revenue for the year increased to R134.6 billion (R132.9 billion) whilst EBITDA was higher at R48.2 billion (R47.0 billion). Operating profit also rose to R23.6 billion (R20.6 billion). Profit attributable to equity holders shot up R8.7 billion (R4.4 billion). In addition, headline earnings per share jumped to 337 cents per share (182 cents per share). Dividends The board has declared a gross final dividend of 325 cents per share, bringing the total dividend for the year to 500 cents per share. Company prospects and guidance Well positioned to deliver growth MTN is a leading operator in regions with the fastest growing telecoms markets. Guided by our BRIGHT strategy, we are well positioned to grow by leveraging our scale and enhancing our competitive position. With our expanding population coverage and drive to accelerate smartphone adoption, we will take advantage of the material data and digital opportunity in our markets. In addition, the combination of our large customer base, extensive networks and deep distribution will allow us to drive opportunities in fintech, digital, wholesale and enterprise delivering value for all stakeholders. Portfolio optimisation and asset realisation programme In 2018 we completed a review of the markets in which we operate to ensure an appropriate strategic and operational fit, considering demographics, regional synergies, control position and business and regulatory environments. We also reviewed our non-mobile assets, including our existing investments in tower companies and e-commerce ventures. While these are important and material investments where we need a tight commercial and operational integration with our mobile assets wherever possible, they are not viewed as long-term strategic holdings of the group. As a result of this review, we plan to realise at least R15,0 billion in asset realisations over the next three years excluding any proceeds from IHS. Proceeds will be used to reduce holding company debt. The IHS investment was fair valued on the balance sheet at R23,4 billion as at 31 December 2018. Pursuant to the portfolio review MTN's 53% shareholding in Mascom Wireless Botswana (Pty) Ltd. (Mascom) has been identified as non-core in light of the lack of control position (Mascom is a joint venture company and is not consolidated) and inability therefore to execute the BRIGHT strategy. MTN has accepted an offer from Econet Wireless (Pty) Ltd., our existing partner, to acquire Mascom and in line with IFRS recognition requirements, Mascom has been classified as an asset held for sale at 31 December 2018. The purchase consideration for MTN's shareholding is USD300 million representing an EBITDA multiple of approximately 6.1 times. The transaction is subject to various approvals and is anticipated to be concluded by June 2019. MTN Nigeria listing MTN Nigeria expects to list its shares on the Nigerian Stock Exchange in the first half of 2019, subject to regulatory approvals. This will be achieved via a listing by introduction and will be followed by a public offer once market conditions are conducive. Over time, and subject to market conditions, we anticipate that the participation of Nigerians in the ownership of the business will increase from around 20% to 35%. Revised medium-term guidance We have revised our medium-term (three to five years) guidance on service revenue growth from upper-single-digit in constant currency terms to double digit growth, driven by double-digit growth from MTN Nigeria and mid-single-digit growth from MTN South Africa. Over this period, we expect to continue to widen our group EBITDA margin. By leveraging historical investments, improved procurement processes and an increasing revenue contribution from our digital businesses, we expect the group capex intensity to steadily improve over the medium-term following the introduction of IFRS 16 effective from 2019. Our improving revenue growth, margins and capex intensity are anticipated to drive significant improvements in group returns. We expect our adjusted ROE to improve from 11.5% in 2018, to above 20% over the medium term. While the board remains committed to targeting growth of 10% to 20% in the dividend going forward, for 2019 this is likely to be towards the lower end of this range.

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