SENS Note - 10 June 2004

MTN results for the year ended 31 March 04

The group`s consolidated revenue increased by 23% year-on-year to R23.87bn. Earnings before interest, tax, depreciation and amortisation (`EBITDA`) increased by 44% to R8.98bn, resulting in profit after tax (`PAT`) of R4.312bn, 94% up on the previous financial year. The group`s headline earnings per share have been adjusted to exclude the financial impact of the deferred tax asset recognised by MTN Nigeria. All of the group`s wireless telecommunications operations were profitable at the PAT level during the year. MTN Group`s international growth strategy continues to gain momentum, with non- South African operations accounting for 36% of the group`s revenue, 50% of its EBITDA and 46% of its adjusted headline earnings during the year. As a result, the fluctuation of the rand against the US dollar and the currencies of the operating countries increasingly impact the group`s earnings. During the 2004 financial year, the average rand exchange rate appreciated by between 21% and 50% year-on-year against the functional currencies of the group`s international operations. The average exchange rate between the Nigerian naira and the rand was 18.4 compared to 13.2 in the 2003 financial year. This had the effect of reducing the earnings, as well as assets and liabilities of the international operations reflected in the consolidated results on their conversion into rand. The South African operations showed higher than anticipated growth, with revenue increasing by 22% to R15.184bn. The group`s international operations increased revenue by 25%, from R6.97bn to R8.69bn. The overall EBITDA margin for the group increased to 37.6%, from 32%. MTN South Africa`s EBITDA margin increased to 30.1% from 27.6% (excluding Orbicom and MTN Network Solutions), this turnaround primarily being due to operational expenditure efficiencies coupled with strong revenue generation. The group`s international operations recorded a healthy EBITDA margin of 51.4%. Net finance costs declined by 27%, from R828m to R604m, as a result of strong operating cash-flow, delays in capital expenditure and the 27% appreciation of the rand against the US dollar. Included within net finance costs are foreign exchange losses of R224m (R325m). The group has achieved a level of EBITDA-to-net interest cover of 15 times. The group`s effective tax rate, excluding goodwill amortisation charges was 18.3%, compared to 19.6% last year, mainly due to MTN Nigeria being tax exempt because of its pioneer status, coupled with the raising of the deferred tax asset arising on capital allowances. Adjusted Headline EPS increased by 77% to 253.1 cents. South African wireless operations contributed 135.8c, whilst the contribution of the international operations increased by 116% to 117.3c. Prospects The group will continue to explore value-enhancing international expansion opportunities. While such expansion is expected to provide further growth as well as diversification of earnings and risk, the group will become more susceptible to foreign exchange-rate movements. Assuming that current market conditions prevail, the board is confident that the South African operation will maintain its strong free cash flow generation for the group, which will fund further expansion, while the international operations are expected to maintain positive subscriber and revenue growth, underpinned by the significant ongoing capital investment into network roll-out, particularly in MTN Nigeria. Dividend The board of directors has recommended the reinstatement of a conservative dividend policy that will allow the group to pursue growth opportunities while returning excess cash to shareholders, thereby optimising its capital structure. Accordingly a dividend of 41cps for the year has been proposed. The last day to trade cum dividend is Friday, 25 June 2004; and the dividend will be paid on Monday, 5 July 2004.

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