Commercial Overview

8/12/2019 Commercial Overview

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MTN GroupCommercial OverviewChristian de FariaGroup Chief Commercial Officer


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Agenda

2

Transforming the strategic intent

Group commercial strategic objectives

Augment voice offerings

Levering data opportunities

Mobile money

Consumer eco system

ICT strategy


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3

Strategic objectives

Drive new revenueopportunities

Dynamism anddifferentiation of MTN

Understand customers tobecome indispensible

Increase speed, efficiencyand effectiveness

Increase data as % of revenue

Establish MTN in digital space

ICT Strategy

Brand Leadership

Hold key associations

MTN Branded Customer Experience

Providing access, content, products and services

Segmented approach

Understanding what drives loyalty and prevents churn

Center-led but locally relevant strategies, models andsuppliers


Devices

Cost efficiencies


4/22


4

Voice still offers revenue potential and remains greatest driver of revenues

Development of services based on Niche and Bulk Solutions the main theme withinthe voice space

Voice as bearer for content services, such as IVR services key to maintaining of voicerevenues

Voice over alternative bearer technology such as VoIP becoming more relevant

Enhance MTN Zone reporting and assessment of revenue impact

Segmented value propositions addressing exact needs of subscriber bundled withlifestyle products (i.e. Trace TV)

The MTN SA analysis indicates how smartphone push of selective handsets can aid in

stimulating further voice usage despite perception of inelastic behaviour of highvalue subscribers


5/22

5

Transforming strategic intent

Mobile operator revenue split MBB is key decision factor (% revenue)

70-75%

15-20%

15-20%

10%

Today 3-5 years

12-15%

65-75%

Voice + SMS

only

Consumersusing dataconnectivityservices

CorporateVAS

Data access

SMS

Voice

79%

68%

51%

9%

15%

1%

8% 12%

30%

6% 4%

19%

Emergingmarkets

Europe Japan

Source: Delta Partners

Mobile broadband(MBB) is the key driver to win or lose value in the market


6/22


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Fast-tracking access through Opera mini browser

Group Agreement

Signed a Group Agreement 11 August2011 with Opera Mini Browser

Launched to date

South Africa (700k downloads)

Nigeria (15 Sep 11 1.9mil downloads)

Ivory Coast (20 Oct 11)

Uganda (31 Oct 11)

Launches Planned for November

Rwanda

Ghana


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Approval on service delivery platform

Developer 1 Developer 2 Developer n

Service Delivery Platform

SMSC MMSCStreaming

ServersChargingInterface

HandsetDetection

OTA Platform

MessagingGateway

DeviceRepository

SubscriptionEngine

Billing EngineTransaction

Log

WAP Web IVR USSD WIG/STK SMS

Subscriber to benefit by accessingcontent via any channel00

Seamless delivery of content,regardless of channel

Reporting, billing, profiling andfinancial reconciliation

Network nodes accessed via SDPand integrated into core networkfunctions

The SDP environment mustintegrated into various operationsand network nodes (deploymentshouldnt be for just one operation)

Independent developers as well asvendor developers should be able toaccess and develop applications forall MTN operations


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Service examples

9

March 2011 - Group Agreement signed with Hollard

MTNs role is to facilitate payment , registration and provide co-marketing

June 2011 - Pilot launched in MTN Ghana via Mobile Money

Feb 2011 signed a Group MOU with Sanlam as a strategic partner on mHealth

Our strategy is to enable access to affordable healthcare

MTN Uganda launched health tips & clinic finder via sms

MTN Nigeria facilitated an industry mHealth workshop with participation from Govt, NGOs,

private sector to define the landscape on mHealth

mInsurance

mHealth


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Segmented device strategyConsumer

2011

2015


11/2211

Segmented device strategyBusiness

2011

2015


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Mobile money

Partner selection

Evaluation of platform

MoMo wallets to be linked to VISA payments

Retail payments

Focus areas

Launched in 12 countries with more than 5.1 million subs

Finalised Fundamo roadmap of features to be developed

Governance process in place

Extended partners programme (Western Union, BIBS and MFS)

Achievements

Launched in 10 countries

Streamline existing contracts

International airtime transfer


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Developing digital marketing strategy

13

To build a best in class digital presence for MTN, positioning the company as a leaderin its emerging target segments

To enhance existing and new social networks to drive engagement and increasenumber of MTN ambassadors

To provide customers the platform to contribute and be part of the new Digital MTN

within the integrated digital approach


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Social media strategy

14

To manage the brand reputation online, driving awareness and engagement usingpaid media

To compile consumer insights, using owned media and sentiment analysis in buildingrelationships

To accelerate problem solving and increase sales, leveraging earned media

Objective Branding andEngagement

Insights andSentiment

Purchase andSupport

Metrics Share of voice Engagement Reach

Active Influencers Impact

Satisfaction Resolution Impact

Content Banner Ads

Adwords Wikis Blogs

Reviews Comments

Media Paid Owned Earned


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Defined the customer ecosystem

Prevents churn in customersthat provide highest value

Clusters our customers basedon behaviour

A framework that informs andintegrates the strategic andoperational plans of thebusiness

Segmentation Loyalty CRM

Should be addressed via an integrated approach vs isolated projects

Months

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Strategy&Leadership

UnderstandingCustomers

PlanningActivity

CustomerPropositions

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MTN Business

Ghana

Nigeria

South Africa

Group Technology

Group Commercial

Establish the business and technical work streams to further define the detailed scope ofthe ITC strategy deliverables

Define the principle decisions to form the support governance structure to implement thestrategy moving forward

Develop the coherent strategy and develop a plan for deployment

16

ICT work group established

Participation from

Objectives


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Mobile internetICT & mobility management

Mobile Workforce Management

Additional remarksInternetaccess

Collaborationtools

Mobile devicemanagement

Mobileresource

management

Serviceproviders

Verizon provides full-fledged mobileworkforce solutions, from VPN networkaccess to enterprise messaging. It alsoprovides service for tracking the location anddispatching mobile workforce

MTN Uganda provides a basic version of

mobile office solution, combining mobilebroadband access and push-basedcollaboration tools

Vodafones featured mobility as a service

offers mobile device management in a hostedSoftware-as-a-service model

Platform

providers

Partners with operators (Vodafone, Milcom)

to offer mobile device management solutions(Software-as-a-service)

Productproviders

Industry specialist focusing on field

manpower management, includingscheduling, dispatching, location monitoringas a software package

System integrator with broad experience in

enterprise mobility solutions, partner ofinternational operators such as Vodafone

ProvidedNot provided


18/2218

Mobile internet - M2M

North America& Europe

Governments arestarting smart-gridprojects in US andEurope

Middle East

STC started Fleet-tracking/Asset

managementapplications

Africa

Vodacom and MTNhave bothestablished assetmanagementservice

Asia Pacific

Enterprise-focused

M2M applicationsare being deployedin Asia Pacific

Latin America

Telefonica is doingtrials with andintegrated platformfor M2M

Individuals

Enterprises /

Governments Multinationals

Manyoperators

are bettingbig on

mobilehealth

Manyoperators

are bettingbig on

mobilehealth

Enterprise-focused M2Mapplications

Manyoperators

are betting

on mobilehealth


19/2219

Mobile internetCloud computing

NorthAmerica& Europe

US vendors arenow targetingenterprises andgovernment

Middle

East

Etisalat launchedcloud marketplace

and private cloudservices

Africa

Vodacompartnered withNovell to offercloud solutions toenterprises

AsiaPacific

WiPro targeted

SMEs with SaaSplatform andenterprises withcloud consulting

LatinAmerica

NEC and Telefonicapartnered tointroduce cloudservices in

Americas

SMEsEnterprises

/GovernmentsMultinationals

Tata to enter SAmarket through

Neotelsubsidiary


20/2220

Mobile internetData centers

NorthAmerica& Europe

Major players areincreasing theircapacity in theUS/Canada both viaacquisition orincreased capacity

LatinAmerica

Dimension Data(South Africa) isseeking Data Centercapacity expansion inLatin America

Europe

Recent movements inthe European marketare lead by the newvirtual Data Centeroffer launched by BT

AsiaPacific

Asian operators are

also increasing theirData Center capacityand expecting asubstantial increase inthe demand

MiddleEast andAfrica

Dimension DatasInternet solutionsexpand existingcapacity

SMEsCorporations

/GovernmentsMultinationals
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Thank you


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Notice

The information contained in this document has not been verified independently. Norepresentation or warranty express or implied is made as to and no reliance should beplaced on the fairness, accuracy, completeness or correctness of the information oropinions contained herein. Opinions and forward looking statements expressedrepresent those of the Company at the time. Undue reliance should not be placed onsuch statements and opinions because by nature, they are subjective to known andunknown risk and uncertainties and can be affected by other factors that could causeactual 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 representativesshall have any liability whatsoever (based on negligence or otherwise) for any losshowsoever arising from any use of this presentation or its contents or otherwise arisingin connection with this presentation and do not undertake to publicly update or reviseany of its opinions or forward looking statements whether to reflect new information orfuture events or circumstances otherwise.

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

Documents

Commercial Overview