1

Accelerating South Africa

Digital & fintech subscribers

207kMoMo

851kayoba active users

Network sitesTechnology investment

9.5

7.6 7.2

2018 2019 2020

MTN South Africa at a glance

2

Turnaround completed | Healthy and growing business

Financial performanceGrowing subscribers

44.7

45.4

45.5

2018 2019 2020

Total revenue(Rbn)

EBITDA margins

35.1% 37.3% 39.0%

21.2%

16.6% 15.9%

Capex intensityCapex (Rbn)

12 082 12 497 12 563

12 290 12 705 12 772

11 024 11 991 12 113

112

2018 2019 2020

96% 96%4G population

coverage5G sites

4G sites

3G sites

2G sites

90%

Total #of sites

31.2

28.9

32.0

2018 2019 2020

Total (m)

Data users (m) 13.614.1

15.7

#2Customer market

share

Leading in NPS

29.6%Market share

#1

3

How we manage the business

Chief Digital OfficerErnst Fonternel

Chief Executive OfficerGodfrey Motsa

Chief Transformation & Strategy Officer Marco Gagiano

Chief Financial OfficerDineo Molefe

Chief Consumer OfficerMapula Bodibe

Executive, Wholesale Quintus de Beer

Chief Enterprise OfficerWanda Matandela

Chief Sales & Distribution Officer

Philip Besimiire

Chief Executive FintechFelix Kamenga

Chief Technology & Information OfficerGiovanni Chiarelli

Acting Chief Officer Customer Service &

OperationsMmathabo Sukati

Chief Human Resources OfficerTebogo Maenetja

Executive, Risk &Compliance

Mmathabo Sukati

Executive, Corporate Relations

Jacqui O’Sullivan

Chief Corporate Services OfficerGraham de Vries

Strong, experienced and diverseleadership team

Macro context | SA is both a developed & developing market

4

… Creating a positive investment climate with multiple scale opportunities for sustained economic and sector growth

• SA economy contracted 7% in 2020 | Impacts of COVID-19 lockdowns

• Recovery to pre-pandemic levels expected mid-2023, with 3.9% GDP growth in 2021

• COVID-19 grants, funded in part by an IMF loan, injected R50bn into the economy in 2020, stabilising the market and assisting recovery

• SA’s GDP per capita of US$12.3k (PPP) ranked 32nd globally in 2020 | Provides an attractive market

• An independent central bank maintains tight control of inflation | Stable within 4-6%, well below other emerging markets

Sources: Stats SA, SARB, ICASA, IMF & World Bank, GSMA, BER, Fitch and Omdia

• Mobile data user penetration up 5.1pp (2020) | Forecast at ~60% population penetration by 2023

• 4G capable device penetration in the SA population is 36% (MTN = 40% of active base)

• SA market still presents a significant data revenue growth opportunity by adding data users

• Data usage expected to grow to 6.6GB per user per month by 2023 (currently 3,7GB)

• The 134% increase in data usage to 2023 driven by increased consumption by higher-end consumers

• Effective data prices declining but offset by elasticity to sustain data revenue growth

• SA consumer market, incl. households, offer significant opportunities for growing data revenues through increased usage and bundling of ancillary services

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

'20

'21

*

'22

*

South African GDP Growth rate & inflation

2003 – 2022 (*Forecast)

GDP Inflation

79.1% 83.0% 86.2% 88.8% 90.9%

48.4% 53.5% 56.8% 58.5% 59.0%

2019 2020 2021 2022 2023

Mobile data users as % of

population

Europe South Africa

-

0,020

0,040

0,060

0,080

0.0%

50.0%

100.0%

150.0%

2019 2020 2021 2022 2023

Usage per subscriber vs growth in

revenue per MB of data

Eur (GB per Sub) RSA (GB per Sub)

Eur (ZAR per MB) RSA (ZAR per MB)

Industry and regulatory context

Regulators

Spectrum: ICASA

Financial services: SARB and FIC

Competition Commission & Others

• Spectrum auction announced (ITA) for H2’2021; includes access to high value 5G spectrum

• Auction delays expected due to interim court order

• Temporary spectrum assigned for COVID-19 relief extended to August 2021

• MoMo and related Fintech services oversight by different financial services regulators

• Inter-governmental Working Group forum for regulators to understand fintech innovation and support responsible growth

• #DataMustFall – social pressure on reduction of data prices | market inquiries from Competition Commission

• POPI act compliance (SA’s equivalent GDPR) becomes mandatory from 01 July 2020

• Comprehensive stakeholder engagement plan executed via MTN Group & MTN SA regulatory teams and senior management

• Experienced industry legal and banking advisors support and advise SA management

• MTN Group & SA senior management engagement with financial sector regulators and SARB to seek active cooperation and early mitigation of concerns

• End-to-end assessment of fintech products & services to ensure full regulatory compliance

• Proactive engagement with Commission and ICASA on Data Services Market Inquiry

• Significant reductions in effective & retail data prices | Proactive and compliance

• POPI compliance implementation on track. Completed compliance audits via external GDPR and local auditors to ensure readiness

5

Regulatory environment managed through compliance and proactive/constructive engagements

Key regulatory updates Stakeholder management

Competitor landscape

6

SA is a four-player mobile operator market | MTN remains a competitive #2 with sustained growth in key market share measures

Sources: Vodacom SA annual results as at Mar‘21 , Telkom 2020 Annual Results, Cell C 2020 FY annual results, Umlaut (P3) 2020 Best in Test 1Mobile Service Revenue 2As as April 2020

Service revenue (Rm)

Total revenue (Rm)

EBITDA (Rm)

Capex (Rm)

Mobile customer market share2 (%)

Vodacom12 months March 2021

Telkom12 months to March 2020

Cell C12 months to December 2020

MTN 12 months to March 2021

46 776

38 029

18 661

7 209

30 745

76 737

10 076

56 405 12 5931

43 043

9 602

7 755

12 989

13 833

2 860

Net Promoter Score (NPS)2

Network quality leadership

EBITDA margin (%)

Capex Intensity (%)

29.6 44.6 15.5 10.3

#1 #3 #2 #4

#1 #2 #4 #3

39.9 40.1 22.3 20.7

15.9 13.1 18.0 N/A

N/A

7

2019-20• Strengthening core connectivity business

–Prepaid, Consumer Postpaid, EBU, Wholesale

• Establishing future businesses: Fintechand Digital

• Streamline capex while maintaining network leadership and efficiencies

2021-25• Connectivity – sustain world-class telco

business

• Expanding into platforms – Fintech, EBU-ICT

• Strong cash generating business –healthy profit margins (40%) and service revenue growth (4-6%)

Successful turnaround | Transforming into a platform operator to deliver Ambition 2025

2016-18 Addressed key issues to restore revenue and EBITDA:

• Network (4G catchup and quality)

• Channel

• People

BRIGHT AMBITION 2025

Fix Build Transform

Positioned for accelerated growth

A world-class and market-leading 5G-ready network supports sustained growth outlook

Mobile population coverage

• 43% population coverage

• ~11m subscribers

• ~>R20bn service revenue market opportunity

5G opportunity - 2025

Support infrastructure

• 10 national data centres

• 32 switching centres

• 27k km fibre transmission

Consumer and enterprise connectivity

• B2B solutions - edge computing

• Residential connectivity -entertainment and education

• Government – smart governmentsolutions and services

Source: Africa Analysis

• 4G population coverage of 96% | 5G at 1%

• ~16% 5G population coverage1 year post spectrum award

• Access to Cell C spectrum, enhance rollout

8

Exciting enterprise and wholesale acceleration & growth ambitionsE

BU

Wh

ole

sa

le

BUILD: stabilising operations

2019-2020TRANSFORM: accelerating growth

Ambition 2025

• Dedicated ICT Ownership

• Sales focus & increased inflow

• Brand awareness & positioning

• 20% of MTNSA total revenue contr. by 2025

• 35% mobile subscriber market share

• Top 5 ICT player in SA

• Enhancing technology infrastructure

• National roaming – Cell C Phase 1

• Launch of MVNO platform – 2 MNVOs onboarded in Q420

• Access to incremental spectrum to enhance 4G & rollout 5G

• National roaming - Cell C Phase 2

• New opportunities - Roaming partners, data centresand network slicing

Build Transform

9

Fintech | Accelerated implementation after early gains

10

Rapid ecosystem expansion and customer growth to deliver a scale fintech platform

The SA opportunity

• SA banks struggle to deliver commercially viable financial services to the unbanked and underbanked in SA – 11 million people

• Informal sector and industry verticals like transport (9% of GDP) remain dominated by cash

• Scale customer base + technical capability + trusted brand = opportunity for core MoMo expansion into an e-Commerce platform, ancillary financial services (insurance, credit) & data monetisation services

• Launched full MoMo wallet value proposition

• 285k active customers within 15 months of launching, 3.3m registered users, 500k app downloads

• 3k merchants and agents live covering public services, formal retail partners and informal sector

• Funeral insurance products launched | R1bn in airtime credit revenue (XtraTime); foundation for expanding micro-credit business

• Expand ecosystem & distribution → retain money in system, grow customers & transactions per user

• Set up B2B capabilities as disbursement service for large employers and communities

• InsurTech expansion – insurance portfolio growth

• Ambition 2025 target: 5 million active MoMo users | High single-digit growth in airtime credit revenue

Current plans and early gains

Ambition to 2025

MTN SA | Ambition 2025 Targets

11

2020 Actuals – MTN SAPriorities 2025 – MTN SA

Build thelargest & most

valuable platforms

Driveindustry-leading

connectivity operations

Createshared value

Accelerate portfoliotransformation

2025 – MTN Group

• +200m active data users

• +10m home broadband users

• +$500m investment overmedium-term

• >R5bn of expense savings | #1 NPS

• Top quartile ESG ratings

• Broad-based ownership and inclusivity achieved

• Reputation Index ≥ 75%

• ARP proceeds >R25bn

• Holdco leverage ≤ 1.5x

• Structural separation of infrastructure assetsand platforms

• 100m MoMo users

• 100m ayoba users

• #1 NaaS platform in Africa

• 15.7m active data users

• #1 NPS

• Level 1 B-BBEE rating

• Network sharing discussions underway

• Continuous free-cash flow management

• 851k ayoba users

• 207k MoMo users

• 20m digital and MoMo customers

• Leading wholesale business in SA –R10bn in revenue

• Successful implementation of CoE

• 30m active data users

• > 30% of homes connected

• #1 NPS

• Maintain Level 1 B-BBEE rating

• Industry-leading ESG company in South Africa

• Network sharing

• Improved free-cashflow

12

Financial framework in place to sustain/accelerate growth and support Ambition 2025

Mid-single-digits service revenue growth

Sustain EBITDA margin of 39-41%

Reduce capital intensity Improved free cash flow

• Healthy operations and EBITDA margin

• Working capital efficiencies

• Balance sheet optimisation through asset realisation programme

Service revenue growth

Margin expansionValue-based capital

allocationAttractive FCF-

Capital allocation priorities

Accelerate core revenue growth• 4G/5G monetisation

• CBU & EBU acceleration

• Expand fibre footprint

Scaling as platform operator • Fintech, digital and EBU ICT

growth

Strategic partnership / acquisition• Avenues to unlock fintech & residential

value

• Wholesale & infrastructure sharing

• Grow mobile data• Own the home |

Residential connectivity• Scale platforms

• Efficiency at all costs• Accelerated digitalisation

• Scale advantage• Network & IT

optimisation• Disciplined capital

prioritisation

*Excluding IFRS 16 impact

13

Investment case | A compelling South-African growth story

Enhanced risk and regulatory framework

Disciplined capital allocation

Multiple exciting growthopportunities

Scope for growth in smartphone penetration & data usage

Large opportunities in ICT, home connectivity, wholesale and infrastructure sharing

Market share gains in enterprise, especially in public sector

Well positioned for the long term

Strong management team and brand

Largest 4G data population coverage (>96%) supports data revenue growth

Early 5G investment to enable 4IR and core connectivity use cases

27k km fiber footprint | Supports residential

connectivity and FTTX growth

Fintech

API marketplace

NaaS

Enterprise

ayoba

Attractive return profile

Strong cash-flow and revenue generation track record

Healthy EBITDA margins, supported by efficiencies, digitisation and automation

R

Strong position in anattractive market

A scale customer base with >32m active subscribers | >15.7m data users

NPS and network leadership in a highly competitive market/industry

Successful turnaround with sustained growth from all business units

Medium-term guidance

14

Continued commercial momentum, with an eye on efficiencies.

KPI Target

EBITDA margin EBITDA margin 39-41% range

Service revenue Mid-single-digit growth

Capex intensity Reducing capex intensity

Conclusion | SA turnaround entrenched & positioned for accelerated growth

15

Key take-aways

The South African market offers a stable environment for sustained growth in the telco sector1

2

3

4

5

MTN SA has successfully turned around and is well positioned for accelerated growth

Best network, best customer experience and best brand - #1 on network quality, NPS and brand leadership

Optimally positioned to lead in 5G-enabled growth and use it to capture disproportionate share of growth

A robust strategy and investment priorities to support the high growth prospects – Ambition 2025