mtn group limited

MTN Group LimitedFinal audited results for the year ended

31 December 2006

2

Agenda

Strategic & operational overviewPhuthuma NhlekoGroup President and CEO

Financial overview Rob NisbetGroup Finance Director

Looking ahead…Phuthuma Nhleko

Strategic and operational overviewPhuthuma Nhleko

Group President and CEO

MTN Vision

To be the leader in telecommunications in emerging markets

5

Key considerations for the period…

• Investcom acquisition

– Integration almost complete

– Synergy benefits included in 2007 budgets, including rebranding

– Asset base increased

• Significant interest in emerging markets, operations more competitive

• Increased regulatory intervention

• Margin management key

• Changes in ownership levels

– Increased shareholding in Côte d’Ivoire, Uganda, Botswana and Nigeria

Significantly different Group going forward

6

Operations 1 11 21

Population 41m 274m 501m

1998 - 2005

MTN an emerging market leader…

1993 - 1997 2006

National Player African Player Emerging Market Player

Successfully delivering on our vision

2006Revenue

Subscriber #’s

1998 - 2005

1993 - 1997

7

Group highlightsfor the 12 months ending 31 December 2006

Group subscribers up

73%to 40.1 million

Revenue 49% higher to ZAR 51,6 billionagainst 12 months

to 31 December 2005*

EBITDA up 53% to ZAR 22,4 billion against 12 months

to 31 December 2005*

EBITDA marginincreased to 43.4% from 42.4% against

12 monthsto 31 December 2005*

PAT increased to ZAR 12,1 billion fromZAR 6,7 billion against

9 months to31 December 2005

Dividend of 90 cents per share declared

Adjusted headlineEPS increased by 73% to 584.7 cents

against 9 monthsto 31 December 2005

* Unaudited

8

Subscriber growth...

0

5

10

15

20

25

30

35

40

Dec-05 Dec-06SEA WECA MENA

23.2

40.1

12%

27%49%

Split of subscribers by region

39%73%

No. of operations: 21 +110%

Population (m): 501 +83%

Subscribers (m): 40.1 +73%

Subscriber growth increasingly diversified

MTN Group

Comparative annual growth

9

Relative ARPU performanceUSD per month

$23

$18

$15

$18

$12

$17

$20 $19 $20 $20 $21

$12

$17 $18$16

$9

$14

$35

$17

$10

$17

South African ARPU: ZAR164 (Dec 05 – ZAR167)

10

-75%

19%

53%57%

34%

30%

54%

43%35%

-55%

35%

52%

0%

34%

53%57%

42%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

MT

N

SE

A

WE

CA

ME

NA

Sou

th A

frica

Nig

eria

Gha

na

Sud

an

Iran

'Dec-06 'Dec-05

Relative EBITDA margins

Group EBITDA margin expansionNew Operations: Iran – 21 October * 12-month comparison

RegionGroup Key operations

11

• Senior executive and board involvement on the ground

• Not politically aligned

• Commitment to local and regional regulatory forums

• Constructive engagement

• Extensive pre-investment research – deep understanding

• Strong corporate responsibility –social investment, governance, tax etc

• Positive contribution through broadbased infrastructure roll-out

Risk management

Political / regulatory regimes

Governance structures

• Comprehensive risk management structures aligned to King II and best practice

• Ultimate board responsibility with dedicated group executive risk officer

Committed and involved

12

Risk management (cont.)

• Expanded regions/ markets limit concentration exposure to any single region

• Co-investment with local partners

• Experienced and committed local management teams limit execution risks

• Detailed market analysis and robust business plan preparation contributes to informed risk decisions

Emerging market risk

FX risk

• Local currency funding maximised to limit revenue / liability mismatch

• Operations hedge foreign currency obligations where possible

• Translation risk not hedged - income statement impact

• Diversification of assets and earnings reduces risk profile

1326% increase in subscribers

South & East Africa (SEA) region

Deeper mobile penetration over last 12 months

Dec 06 Growth %

Countries in region 6 + 0%

Population (m) 98.9m + 2%

Mobile penetration 40% +6% pts

Subscriber numbers (m)

South Africa 12,483 + 22%

Swaziland 268 + 26%

Botswana 600 + 25%

Zambia 187 + 93%

Uganda 1,595 + 63%

Rwanda 384 + 40%

Total SEA 15,517 + 26%

% to Group 39%

14

1164178

24578

128

195

343

1595 384

12483

268

187

600

615 103

174

37

77

8340

South Africa Botswana Swaziland Zambia Uganda Rwanda

SEA region – OverviewBotswana, South Africa, Swaziland, Zambia, Uganda, Rwanda

• No contribution from Investcom, inclusion of Uganda and Rwanda, previously in MENA• Appointment of key roles in progress• South Africa key driver of growth and profitability• Strong performance from Uganda, subscribers up 63%• Zambia negatively affected by slow start to roll-out

Population : 98.9m

(20%Group)

16m Subs

(39% Group)

Revenue ZAR27bn

(52% Group)

EBITDA ZAR9bn

(42% Group)

CAPEX ZAR3bn

(31% Group)

PAT ZAR5bn

(42% Group)

South & East Africa EBITDA margin 35.2%

Revenue EBITDA Subscribers

15

8,001

10,235

6,2704,723 164

169184

203206

Mar-03 Mar-04 Mar-05 Dec-05 Dec-06

MTN Subscribers ('000) ARPU - Blended (ZAR)

SEA region South Africa – Financial and operational highlights

Dec 2006 Dec 2005*

Revenue ZAR25bn ZAR20bn

EBITDA margin 34% 34%

Capex/ Revenue 9% 13%

• Market share improvements ~ 36% up 1%

• Highly competitive market

• Expanded distribution channels

• Customer centricity through improved service initiatives

• Impact of regulatory changes still unclear

• Margins still healthy due to effective cost management

• Continued focus on data revenue growth

Launched Jun 1994 Market share 36% Population 47m Market sizing 48m (2011) Penetration 68% Shareholding 100%

Subscribers/ARPUmillion

MTN well positioned for change

12,483

*Unaudited 12-month period

16

SEA region South Africa – Financial and operational highlights (cont.)

487541

596 576

949397104

203 184 169 164

Postpaid Prepaid Blended

• Increased prepaid ARPU’s due to lower denomination vouchers

• Prepaid pricing segmentation

• Lower end packages boost postpaid subscribers but negatively affect ARPU

– MyChoice TopUp: 582k from 281k

– MyCall 100: 806k from 761k

• MOU decline slowing due to larger subscriber base

ARPUZAR per month

155 129Avg. MOU per sub 140 124

ARPU pressure

Mar-04 Mar-05 Dec-05 Dec-06

17

• SMS approx 79% of total data revenue

• 3G roll-out on track

– Expanded to 793 from 431 at June 2006

– Approx 20% subscribers under coverage

– Approx 280k users at December 2006

– Good HSDPA uptake

• Mobile money transfer system showing good over past six month – 203% increase in registered users

• Data tariffs reduced to improve competitive position and stimulate traffic

5,0% 8,2%As % of MTN SA revenue*

5,9% 8.0%

Competitive tariffs

* Includes data revenue from subscriptions from Dec 05

286 403679 779

384502

403

1159


First Half Second Half

670

905

1,938

1 082

SEA region South Africa – Data highlights

Data revenueZAR million

18Constructive engagement

SEA regionSouth Africa – Regulatory changes

• Electronic Communications Act (ECA) Promulgated on 19 July 2006

– Licence conversion process still pending

– Existing rights and obligations “protected” - new terms still unclear

• Interconnect Ongoing dialogue

– COA/CAM submitted to ICASA in March 2007, awaiting approval

– Market definitions as prescribed in ECA now proposed

• Re alignment of ICT BEE charter in process New DTI codes announced in December 2006

• Other– Court rules Cell C CST roll-out irregular – interconnect settlement pending

– MNP operational from 10 Nov 2006 – limited impact, 40k subscribers to end Feb 2007

– RICA, MTN ready but final implementation still outstanding

1980% increase in subscribers

West & Central Africa (WECA) region

Dec 06 Growth %

Countries in region 9 + 125

Population (m) 224m + 25%

Mobile penetration 19% +6% pts


Nigeria 12,281 + 47%

Ghana* 2,585 Acquired

Cameroon 1,783 + 43%

Côte d’Ivoire 1,625 + 50%

Benin* 476 Acquired

Congo B. 280 + 33%

G. Conakry* 276 New

Liberia* 218 Acquired

G. Bissau* 98 Acquired

Total WECA 19,622 + 80%

% to Group + 49%G. Conakry: Launch 18 April * Acquired as part of Investcom LLC acquisition

Footprint opportunities significantly increased

20

289

397271

1922

1725

1704

14900

122150 131

8529

971

562

890

Nigeria Cameroon Ghana Ivory CoastBenin CongoB Other

476

280592

12281

2585

1625

1783

Population : 224m

(45% Group)

20m Subs

(49% Group)

Revenue ZAR21bn

(41% Group)

EBITDA ZAR11bn

(50% Group)

CAPEX ZAR5bn

(52% Group)

PAT ZAR7bn

(61% Group)

WECA region - OverviewNigeria, Ghana, Cameroon, Côte d’Ivoire, Benin, Congo B, G. Conakry, Liberia, G.Bissau

• Low regional penetration at 19% offers opportunity for growth• Investcom merger contributing ~ 42% of net movement in subscribers• Increasingly competition and regulatory activities• Strong performance from Cameroon, subscribers up 43%• Integration of Investcom operations well advanced with focus on branding and products

Strong contribution to the Group, region dominated by Nigeria


21

• Market share up from 45% to 46%

• Strong EBITDA margin through cost savings

• Regulator activities:– Expanding GSM license with unified

licence and 3G license (awarded in last week of March 2007 for $150m)

– Award of 5th GSM operator

– New interconnect rates effective from 22 September 2006

• Broadening shareholder base still a priority

• Tax holiday ending 1 April 2007

• Uncertain outcome of 2007 elections

WECA regionNigeria - Financial & Operational Highlights

Dec 2006 Dec 2005*

Revenue ZAR14.9bn ZAR11.4bn

EBITDA margin 57% 53%

Capex/ Revenue 24% 45%

Launched Aug 2001 Market share 46% Population 138.9m Market sizing 45.6m (2011) Penetration 19% Shareholding 82%

8,370

4,392

1,966

1822

40

51


MTN Subscribers ('000) ARPU (USD)

Pre Dec 05, subscribers and ARPU based on 30 day

activity window

Subscribers/ARPU 12,281

Increasingly competitive

*Unaudited 12-month period

22

WECA regionNigeria – New product offering

• Launch of segmented value proposition products on 22 September 2006

– On net calling preference

– Growth from returning inactive MTN subscriber

– Incremental minute of use from both existing and returning inactives

• Brand preference at 54% from 49%

• Customer satisfaction at 80% from 69%

• Churn at 30% from 35% last year

• Pressure on network quality currently being addressed

Quarterly analysis of total MOU and net connections

0

500

1000

1500

2000

2500

Q1-2006 Q2-2006 Q3-2006 Q4-20060

500,000

1,000,000

1,500,000

2,000,000

2,500,000

MoU ('000) Net connections ('000)

MTN successfully repositioned

23

31%

58%

38%

64%

48%

73%

43%

18%

Geographic coverage Population coverage


WECA regionNigeria – Network infrastructure & enhancements

• Network infrastructure

– 2 518 base stations

– Continuing expansion of transmission backbone (~3600km)

• Acquisition of unified licence & VGC (fixed wireless PTO) aimed at corporate market

• Capacity of ~13.5m subscribers in core network

• Pressure on network: focus shifted to radio expansion to accommodate higher subscriber numbers and expansion into new areas

Geographic and population coverage

Most competitive coverage and backbone

24

WECA regionGhana – Financial & operational highlights

Dec 2006 Dec 2005*

RevenueZAR1.7bn (Jul-Dec)

ZAR3.0bn (12mths)**ZAR2.1bn

EBITDA margin52% (Jul-Dec)

53% (12mths)**58%

Capex/ Revenue 26% (12mths)** 16%

• Market share loss stabilised in early 2007

• Increasing competition

– Market penetration at 22% from 12.76%, fuelled by decrease in entry barriers (handset / SIM)

– Privatisation of 2 licenses

• Aggressive roll-out to improve network quality well underway by December 2006

– Approx 100 BTS’s/month (Sep-Dec)

Launched Nov 96 Market share 52% Population 22.4m Market sizing 9m (2011) Penetration 22% Shareholding 98%

Dec 06: 6 month ARPU figure

Subscribers/ARPU

Successfully integrated

2,585

1,820

955

171819

2004 2005 2006


*

*

* *

**Unaudited 12-month period

* Investcom LLC 12 month disclosure

25New subscribers acquired over period

Middle East & North Africa (MENA)

Footprint opportunities significantly increased with greenfield areas

Dec 06

Countries in region 6 Acquired

Population (m) 178m Acquired

Mobile penetration 16% Acquired


Sudan* 1,066 Acquired

Iran 154 New

Afghanistan 218 New

Syria* 2,237 Acquired

Yemen* 1,161 Acquired

Cyprus* 76 Acquired

Total MENA 4,912 N/A

% to Group 12 %

* Acquired as part of Investcom LLC acquisition New – Launched in 2006

26

580

2009

570

520

77 99 -58

700

99

277

Iran Syria Yemen Sudan Other

294 154

2237

1066

1161

MENA region – OverviewAfghanistan, Cyprus, Iran, Sudan, Syria, Yemen

Population : 178m

(35%Group)

5m Subs

(12% Group)

Revenue ZAR4bn

(7% Group)

EBITDA ZAR1bn

(5% Group)

CAPEX ZAR2bn

(17% Group)

PAT ZAR0.2bn

(2% Group)


Regional consolidation concluded

• Under-penetrated region with high growth potential

• Aggressive roll-out in Sudan, Iran and Afghanistan contributing to low EBITDA

• High revenue share in Syria and Iran

• Strong growth in Syrian subscribers to 2.2m from 1.5m

27

1,080154

8.5

Dec-06 Mar-07


Launched Oct 06 Market share 1% Population 69.5m Market sizing 46.3m (2011) Penetration 20% Shareholding 49%

MENA region Iran – Highlights

Dec 2006

Revenue ZAR 77m

EBITDA margin -75%

Capex/ Revenue 942%

• MTN’s market sizing increased to 46m (2011) from 31m (2015) estimated in 2005

• Pioneer in privatisation

• Low year end subscriber numbers due to• Late launch

• Slow regulatory approval processes

• Limited coverage

• Competitive pressure

• Current daily run rate now > 15 000• Efficient subscriber centric activation

process - registration within 15 minute

• Strong brand awareness within 3 months

• Costs well contained

Subscribers/ARPU

Slow start challenges identified and rectified

28

<1%

16%

<1%

26%

Geographic coverage Population coverage

Dec-06 Mar-07

361

8

588

49

Number of BTS Number of citiesDec-06 Mar-07

MENA regionIran – Infrastructure

• Significant vendor finance secured

• Roll-out behind schedule due to challenges

– Local ownership requirements

– High land costs

– Environmental procedures

– Access to intercity transmission

• Roll-out progressing well• 4 switches deployed with a core capacity in

excess of 1m subscribers

• Risk of sanctions mitigated by:– Diverse suppliers and contractual

commitments

– Outsourcing (network and IT)

– Front end supply

Coverage statistics

Cities & BTS’s roll-out

29

MENA region Iran – License obligations and regulatory

As at Dec05Within

prescribed period

Note

Licence Term – Effective Date

15 years 21 Nov 05

15 years10 Jul 06

Year 1 ends 10

July 2007

Commercial Launch

6-9 mths Oct 06

Within period from

new effective

date

1 year

~ 50% population; 248 towns; 1,600km of

road covered

50% population, 248 towns,

~1,000km of road covered

Road coverage

challenging

• Year 1 roll-out most onerous

• Higher connection fee retained on postpaid

• Competitive pressure reduced on prepaid

• Lower connection fee negatively impacts business targets

– Peak funding of $1.9m in 2009 whereas previously targeted at $1.5m in 2007/8

• Low tariffs not offset by higher usage

• Interconnect terms contained in Irancell licence, agreements to be finalised in 2007

30

Launched [Sep05] Market share 25% Population 36m Market sizing 22m (2011) Penetration 12% Shareholding 85%

1066

269

Dec-05 Dec-06

MTN subscribers ('000) ARPU (USD)

• First full year of operation

• Market share growth to 25%

• Regulatory & logistical challenges

• Despite roll-out challenges– 36% of population covered

– 3G and GPRS launched

– 662 BTS’s and 3 MSC’s

• Introduction of aggressive CDMA competitor

• ARPU dilution limited, low tariffs

• Dinar appreciation of 15% vs USD in 2006, positive contribution to margin

MENA region Sudan

Dec 2006 Dec 2005*

RevenueZAR570m (Jul-Dec)

ZAR887m (12mths)**ZAR130m(12mths)

EBITDA margin17% (Jul-Dec)

19% (12mths)** -55% (12mths)

Capex/ Revenue 70% (12mths)** 256% (12mths)

Subscribers/ARPU

1916

High growth market, 800k net adds for the year

Dec 06: 6 month ARPU figure

**Unaudited 12-month period

* Investcom LLC 12 month disclosure

*

*

*

Financial overviewRob Nisbet

Group Finance Director

32

Financial trends

31.4

20.217.213.711.38.7

9.815.312.6

10.7

2003 2004 2005 Dec-05 Dec-06

Group revenueZAR billion

CAGR 03FY – 06FY

28%

CAGR 03FY – 06FY

38%

Group EBITDAZAR billion

Adjusted HEPS*cents

13.8

8.67.25.64.32.7

3.86.4

4.73.5

2003 2004 2005 Dec-05 Dec-06

278.5218.4170.1123.4

60.9

306.2

82.4

129.7

193 119.8

2003 2004 2005 Dec-05 Dec-06

* Basic headline earnings Dec 2006 – 606.5 cents (December 2005 – 359.8 cents) Adjustment made to eliminate deferred tax asset raised by MTN Nigeria and put option impact

CAGR 03FY – 06FY

42%

33

Key accounting issues

• Investcom– Consolidated from 1 July 2006– Cash-flow hedging of purchase price resulted in gain of ZAR 2.5bn

• Set off against investment• No tax provided on gain (ZAR 680m)

– PPA amortisation – ZAR 587m (an additional ZAR 72m relates to Uganda)• Increased ownership

– Nigeria: 6.9%, ZAR 2,7bn from 75% to 82% (77% to 84% incl. put option impact)– Cote d’Ivoire: 17.34%, ZAR 363m from 51% to 68.34%– Botswana: 7%, ZAR 146m from 44% to 51% (remained as a JV)– Uganda: 45%, ZAR1,577m from 52% to 97% (fully consolidated from 1 July)

• MTNI (Mauritius)– Forex gain (ZAR 452m) in MTNI Mauritius (ZAR functional currency), after transfer to

reserves below– Early adoption of IAS21 – ZAR 242m gain taken to reserves instead of Income statement

(Dec 05 – loss of ZAR 79m – restated numbers)– Deferred tax credit (ZAR 145m) on timing differences

34

326

3

290

-33

South & East AfricaWest & Central AfricaMiddle East & North AfricaHead Office Companies

Earnings per share

cents12 months

ended Dec 2006

9 months ended

Dec 2005% change

Basic headline earnings per share 606,5 359,8 69

Impact of put option 15,3 (1,6)

Reversal of deferred tax credit (37,10) (20,0)

Adjusted headline earnings per share 584,7 338,2 73

HEPS (584,7 cents)• Adjusted headline earnings items:

– Deferred tax credit ZAR 825m (MTN share ZAR 650m)

– Impact of put option (MTN share ZAR 268m) (Finance costs – ZAR 212m, Fair value adj. – ZAR 120m, Forex loss – ZAR 89m, Minority share profits – ZAR 153m)

35

ZAR million12 months

endedDec 2006

9 monthsended

Dec 2005

Revenue 51 595 27 212

EBITDA 22 413 11 231

Depreciation (5 030) (2 497)

Amortisation (1 289) (256)

Profit from operations 16 094 8 478

Net finance costs (1 427) (373)

Share of profits of associates 23 10

Profit before taxation 14 690 8 115

Income tax expense (2 591) (1 411)

Profit after taxation 12 099 6 704

Minority interest (1 489) (838)

Net profit 10 610 5 866

Income statement

Net profit excluding Investcom 11 241

36

Exchange rates Average Closing

Dec2006

Dec2005

% var

Dec2006

Dec2005

% var

Rand per Dollar 7,04 6,47 (9) 7,05 6,32 (12)

Nigerian Naira per Rand 18,70 20,23 8 18,23 20,42 11

Iranian Rials per Rand 1 365,28 1 420,80 4 1 308,73 1 436,49 9

Ghana Cedis per Rand 1 282,55 1 412 9 1 312.99 1 449 9

Sudanese Dinars per Rand 32,54 37.63 14 28,82 36.55 21

Nigerian Naira per Dollar 128,49 131,44 2 128,41 129 0,5

Iranian Rial per Dollar9 168,96 9 192,58 0,3 9 220,00 9 078,62 (2)

Exchange rates analysis

If Dec 2005 rates are applied to Dec 2006 PAT there is an impact of -11%

37

ZAR million

12 months ended

Dec 2006

9 months ended

Dec 2005

Unaudited12 months

ended Dec 2005 ZAR LC

South & East Africa 26 586 16 293 21 065 26

South Africa* 24 578 15 507 20 101 22 22Other operations (Botswana,Uganda,Rwanda,Zambia,Swaziland) 2 008 786 964

West & Central Africa 21 208 10 868 13 533 57

Nigeria 14 900 9 034 11 377 31 19

Ghana 1 704 - -

Other operations (Côte d’Ivoire, Cameroon, Congo Brazzaville, Liberia, Benin, Bissau, Conakry) 4 604 1 834 2 156

Middle East & North Africa 3 756 - -

Iran 77 - -

Sudan 570 - -

Other operations (Cyprus, Syria, Afghanistan, Yemen, MedNet) 3 109 - -

Head Office Companies 45 51 70 (36)

TOTAL 51 595 27 212 34 668 49

Revenue excl. Investcom 45 608 27 212 34 668 32

Revenue analysis

% change

* Including MTN Network Solutions

38

• Strong South Africa interconnect revenue growth offset by higher interconnect cost growth due to “All net” proposition

• Regulatory focus on interconnect rates • New Nigerian interconnect tariffs effective 22nd Sep

reducing mobile to mobile tariffs significantly and increasing mobile to fixed and fixed to fixed. Negative impact offset over last quarter by value proposition

• Equipment sales contribute less due to SA impact being diluted

• Interconnect revenue unchanged from 2005 at 20%

20%

6% 1%

73%

Subscriber spend

Interconnect

Equipment sales

Connection fees

Revenue analysis (% of Revenue)

1,365

808

1,254

1,025

2364

596

118222

349

8052.46%

5.40%

6.40%

2.01%

5.45%

0

500

1,000

1,500

2,000

2,500

Mar-05 Sep-05 Dec-05* Jun-06 Dec-060.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

4,427

2,456

3,784

2,637

5600

1,852

1,063

1,572

970

1952

8.59%7.97%

10.90%

10.51%10.19%

0

1,000

2,000

3,000

4,000

5,000

6,000

Mar-05 Sep-05 Dec-05* Jun-06 Dec-060.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Dec 2006100% = ZAR 51 595m

Interconnect Revenue

Net Interconnect

Net Interconnect %

* 9 months

Nigeria InterconnectZAR million

South Africa InterconnectZAR million

39

EBITDA analysis

ZAR million

12 months ended

Dec 2006

Unaudited12 months ended

Dec 2005

%change

ZAR

Dec 2006EBITDA

margin %

Dec 2005EBITDA

margin %

South & East Africa 9 346 7 341 27 35,2 34,9

South Africa* 8 340 6 895 21 33,9 34,3

Other operations 1 006 446 126

West & Central Africa 11 355 7 051 61 53,5 52,1

Nigeria 8 529 6 051 41 57,2 53,2

Ghana 890 - - 52,2

Other operations 1 936 1 000 94

Middle East & North Africa 1 117 (3) - 29,7

Iran (58) (3) -

Sudan 99 - - 17,4

Other operations 1 076 - -

Head Office Companies 595 296

TOTAL 22 413 14 685 53 43,4 42,4

EBITDA excl. Investcom 20 100 14 685 37 44,1 42,4


40

EBITDA trends

11,355

5951,117

9,346

South & East AfrcaWest & Central AfricaMiddle East & North AfricaHead Office Companies

EBITDA (R22 413m)• Strong contribution from WECA

• Nigeria margins up to 57% from 52% on strong cost control initiatives, especially staffing and fuel

• RSA margins lower compared to prior twelve months on higher interconnect costs

• Accretive EBITDA contribution from full consolidation of Uganda

• Impact of lower margins from start – up operations i.e Iran and Sudan

• Dilution impact of revenue share arrangements in Iran and Syria

34 3439

52 52 5256 57

3234 333637 37 38

43.4

41.341.4

41.7

42.9

0

10

20

30

40

50

60

Mar-05 Sep-05 Dec-05 Jun-06 06-Dec40

40.5

41

41.5

42

42.5

43

43.5

44

SA EBITDA SA EBITDA (excl. handsets) Nigeria MTN Group

*

* 9 months

41

ZAR million

12 months ended

Dec 2006

9 months ended

Dec 2005 ZAR LC

South & East Africa 5 119 3 021 69

South Africa* 4 797 2 877 67 67

Other operations 322 144

West & Central Africa 6 664 3 210 108

Nigeria** 5 739 2 866 100 73

Ghana 348 -


Middle East & North Africa 182 (15)

Iran (144) (15)

Sudan (3) -

Other operations 329 -

Head Office Companies (691) 61

TOTAL 11 274 6 277 80

Profit after tax excl. Investcom 11 758 6 277 87

Profit after tax(excluding Nigeria deferred tax asset)

% change

* Including Network Solutions** Excluded deferred tax asset: 2006 – R825 million (Dec 2005 – R427 million)

42

0%

25%

50%

75%

Accounting tax rate Cash tax rate

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

Tax considerations

Tax – effective rate• Bulk of disallowed expenses relate to

unproductive interest on Investcom acquisition debt

• Prior year adjustment relates predominantly to Cameroon

• Investcom effective tax rate has limited impact at this stage

Looking forward • Pioneer status in Nigeria expires on 31 March

2007– Forecast rate for 2007 previously reported at

47%, now reported 52% is due to the deferred tax effect revised depreciation charge in MTN Nigeria

– Corporate tax rate is 30% plus the impact of a ~2% education levy

• Group effective rate expected to increase based on

– Nigerian tax– Non deductible interest

Nigeria - expected trends in effective tax rates

Illustrative

Currently deferred tax asset reversed for adjusted headline earnings

19.76

17.64

1717.4

15.5

16

16.5

17

17.5

18

18.5

19

19.5

20

Mar-05 Dec-05 Dec-06

MTN Group Investcom

Effective tax rates%

43

Balance sheetAssets

ZAR millionAs at

Dec 2006As at

Dec 2005

Non-current assets 76 282 31 136

Property, plant and equipment 30 647 20 676

Goodwill 27 017 2 650

Intangible assets 13 088 4 057

Investment, loans and other non-current assets 2 925 2 367

Deferred taxation 2 605 1 386

Current assets 20 635 13 676

Bank balances 9 961 7 222

Restricted cash 130 338

Other current assets 10 544 6 116

Total assets 96 917 44 812

44

Balance sheetEquities and liabilities

ZAR millionAs at

Dec 2006As at

Dec 2005Capital and reserves 42 729 23 096

Ordinary shareholders’ interest 38 696 19 716

Minority interest 4 033 3 380

Non-current liabilities 34 203 9 765

Long-term liabilities 28 587 7 505

Deferred taxation 2 778 853

Non-current liabilities 2 838 1 407

Current liabilities 19 985 11 951

Non-interest bearing liabilities 15 593 10 851

Interest bearing liabilities 4 392 1 100

Total equity and liabilities 96 917 44 812

45

Analysis of net debt position

* Including long-term borrowings, short-term borrowings and overdrafts** Including MTN Network Solutions# Includes debt from MTNI Mauritius

As at 31 Dec 2006ZAR million

Net (cash) debt

Interest bearing

liabilities*

Cash and cash equivalents

South & East Africa 4 882 7 326 2 444

South Africa ** 4 715 6 772 2 057

Other operations 167 554 387

West & Central Africa770 4 884 4 114

Nigeria 1 165 3 552 2 387

Ghana (565) 250 815


Middle East & North Africa 891 2 644 1 753

Iran 1 760 1 879# 119

Sudan 248 348 100

Other operations (1 117) 417 1 534

Head Office Companies 18 208 19 988 1 780

Eliminations (1 863) (1 863) -

TOTAL 22 888 32 979 10 091

46

Interest bearing liabilities splitas at 31 December 2006

19%

6%

75%

Cross surety structureRing-fenced to local operationOther

6 203

8%6%

62%

24%

USD ZAR* Naira Other

• Undrawn facilities of over ZAR 10 billion, mainly at MTN Holdings

• No FX exposure on SA debt

• Repayment of more than US$ 850m of Investcom acquisition debt from subsidiary dividends

• De-leveraging results in Net debt to EBITDA of 1.02

• Funding of underlying operations continued focus for 2007 to ensure

– Local balance sheet efficiency

– Better utilization of cash across the Group

24 897

1 879

70% of USD hedged

47

Cash flow statement

ZAR million12 months

ended Dec 2006

9 months ended

Dec 2005

Net cash generated by operations 22 934 11 369

Net interest paid (143) (116)

Taxation paid (4 086) (1 011)

Dividends paid (1 083) (1 081)

Cash inflows from operating activities 17 622 9 161

Cash outflows from investing activities (38 606) (12 922)

Acquisitions of PP&E (excluding software) ( 9 379) (6 438)

Other investing activities (29 227) (6 484)

(20 984) (3 761)

Cash (out) inflows from financing activities 18 993 5 357

Net movement in cash and cash equivalents (1 991) 1 596

48

Capital expenditures (incl. software)


ZAR millionCapex approved or

committed at31 Dec 2005

12 monthsended

Dec 2006

Capex approved orcommitted at31 Dec 2006

South & East Africa 4 308 3 120 5 014

South Africa* 3 641 2 391 4 360Other operations 667 729 654

West & Central Africa 6 660 4 998 8 841

Nigeria 5 321 3 674 5 558

Ghana 595 484 1 156Other operations 744 840 2 127

Middle East & North Africa 3 710 1 656 4 675

Iran 2 764 773 2 863

Sudan 413 421 839Other operations 533 462 973

Head Office Companies 4 14TOTAL 14 678 9 778 18 544

49

Capital expenditure analysis

126

4,998

1,636

3,018

South & East Africa

West & Central Africa

Middle East & North Africa

Head Office Companies

• 60% of capex due to Nigeria and RSA invested in network coverage and capacity

• RSA focus on 3G coverage (close to 800 sites rolled out to date)

• Nigeria $100 million investment in fibre network

• Roll – outs in Iran and Sudan accelerating in last quarter

CAPEX (R9 778m)

19

16

26 25

0

5

10

15

20

25

30

Mar-05 Dec-05 Jun-06 Dec-06

CAPEX as a % of revenue

Looking forward..Phuthuma Nhleko

51

Looking forward…

• Drive regional synergies

• Take advantage of opportunities within the value chain

– Payment solutions to enable transfer of funds in under-serviced markets;

– Data opportunities

• Improve operational efficiency through our least-cost operator strategy

• Aggressive roll-out and subscriber acquisition strategy for Iran

• Pursue appropriate expansion opportunities to diversify earnings and consolidate position in emerging markets;

• De-leverage core debt and gear up operations

52

Thank you

Questions?

53

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.

Annexure I

55

MTN – Data Sheet part 1

Market overview

Population (m) 500.8 98.9 223.8 178.1 47.4 138.9 22.4 36.3 69.5

Mobile penetration 40% 19% 16% 74% 19% 22% 12% 20%

Market position 2 1 1 2 3

No. of operators 61 14 30 17 3 4 4 4 3

Operational Data

Subscribers (000s) 40 051 15 517 19 622 4 912 12 483 12 281 2 585 1 066 154

ARPU (USD) 21 18 15 23 18 17 16 9

Market share 36% 46% 52% 25% 1%

Key Financials (Rm)

Revenue 51 595 26 586 21 208 3 756 24 578 14 900 1 704 570 77

EBITDA 22 413 9 346 11 355 1 117 8 340 8 529 890 99 -58

EBITDA margin 43% 35% 54% 30% 34% 57% 52% 17% -75%

PAT* 12 098 5 119 7 384 182 4 797 6 564 243 -3 -144

Group SEA WECA MENA RSA Nigeria Ghana Sudan Iran

56

MTN – Data Sheet part 2 (SEA)

Shareholding 100% 51% 100% 30% 97% 40%

License Period (years) 15 15 15 10 20 10

Market overview

Population (m) 98.9 47.4 1.8 11.5 1.1 28 9.1

Mobile penetration 40% 74% 60% 9% 24% 9% 4%

Market position 2 1 2 1 1 1

No. of operators 14 3 2 3 1 3 2

Market Size (2011) - million62.9 48.2 1.6 2.6 0.8 8 1.7

Operational Data

Subscribers (000s) 15 517 12 483* 600 187 268 1 595 384

ARPU (USD) 21 23 20 19 20 12 17

Market share 36% 60% 19% 100% 66% 95%

SubTotal RSA Botswana Zambia Swaziland Uganda Rwanda

* 2.1 million postpaid

57

SubTotal Nigeria Ghana Cameroon Côte d’Ivoire Congo B Benin G. Bissau G. Conakry Liberia

MTN – Data Sheet part 3 (WECA)

Shareholding 82% 98% 70% 68% 100% 75% 100% 75%60%

License Period 15 15 15 20 15 10 10 1815

Market overview

Population (m) 223.9 138.9 22.4 17.1 20.2 3.4 7.7 1.5 9.53.2

Mobile penetration 19% 19% 22% 18% 20% 27% 15% 10% 6%14%

Market position 1 1 1 2 2 1 1 11

No. of operators 30 4 4 3 3 2 4 2 44

Market Size (2011) - million 74.4 45.6 9.0 5.8 7.7 1.4 2.0 0.3 1.80.8

Operational Data

Subscribers (000s) 19 622 12 281 2 585 1 783 1 625 280 476 98 276218

ARPU (USD) 18 18 17 15 18 20 21 12 1718

Market share 46% 52% 58% 41% 31% 40% 66% 48% 51%

58

SubTotal Sudan Iran Afghanistan Cyprus Syria Yemen

MTN – Data Sheet part 4 (MENA)

Shareholding 85% 49% 100% 100% 75% 83%

License Period 22 15 14 20 15 15

Market overview

Population (m) 178.0 36.3 69.5 30.9 0.9 18.8 21.6

Mobile penetration 16% 12% 20% 6% 80% 26% 12%

Market position 2 3 3 2 2 1

No. of operators 17 4 3 3 2 2 3

Market Size (2011) - million 79.8 12.5 46.3 5.0 1.0 8.6 6.4

Operational Data

Subscribers (000s) 4 912 1 066 154 218 76 2 237 1 161

ARPU (USD) 15 16 9 14 35 17 10

Market share 25% 1% 12% 10% 46% 44%

59

2225

28

2822



15,517

12,281

9,1486,996

5,259

MTN – Regional Growth

4,912

15

Dec- 06


Pre Dec 05, subscribers and ARPU based on 30 day activity window

Pre Dec 06, subscribers exclude Investcom operations

Subscribers / ARPU

1821

37

4546



19,622

10,908

5,255

2,5471,468

MENASEA WECA

60

Structure

MTN Group

MTN Holdings

MTN South Africa MTN International

MTN Mauritius

Mednet100%

Zambia100%

Cameroon70%

Syria75%

Liberia60%

Botswana51%

Rwanda40%

Ghana98%

Guinea Bissau100%

Congo-B100%

Uganda97%

Yemen83%

Cyprus100%

MTN Swaziland30%

Investcom LLC

100%

100%

100%

Iran49%

Sudan85%

Afghanistan100%

Côte d’Ivoire68%

Nigeria82%

Guinea Republic75%

Benin75%

100%

Service Providers100%

Network Solutions100%

Network Operations100%

All shareholdings rounded

Annexure II

62

Balance sheetAsset analysis

As at 31 December 2006ZAR Million Total SEA WECA MENA HQ

Companies

Non-current assets 76 282 14 121 23 613 6 954 31 594

Tangible assets 30 647 9 612 17 568 3 444 23

Intangible assets (incl. goodwill) 40 105 1 951 3 542 3 122 31 490

Other non-current assets 5 530 2 558 2 503 388 81

Current assets 20 635 8 807 6 181 3 293 2 354

Bank balances (incl. securitised deposits)

10 091 2 444 4 114 1 753 1 780

Other current assets 10 544 6 363 2 067 1 540 574

Total assets 96 917 22 928 29 794 10 247 33 948

63

Balance sheetEquity and liabilities analysis

As at 31 December 2006ZAR Million Total SEA WECA MENA HQ

Companies

Capital and Reserves 42 729 7 223 18 827 3 782 12 897

Non current liabilities 34 203 7 725 3 837 2 254 20 387

Long-term liabilities 28 587 6 024 3 674 2 231 16 658

Non-current liabilities 2 838 412 2 23 2 401

Deferred taxation 2 778 1 289 161 - 1 328

Current liabilities 19 985 7 980 7 130 4 211 664

Non-interest bearing liabilities 15 593 6 678 5 920 3 798 (803)

Interest bearing liabilities 4 392 1 302 1 210 413 1 467

Total equity and liabilities 96 917 22 928 29 794 10 247 33 948

64

ZAR million

12 months ended

Dec 2006

9 months ended

Dec 2005 % change

South & East Africa 17 240 10 914 58South Africa* 16 238 10 485 55


West & Central Africa 9 853 5 277 87Nigeria 6 371 4 316 48

Ghana 814 -


Middle East & North Africa 2 639 -

Iran 135 -

Sudan 471 -

Other Operations 2 033 -

Head Office Companies (550) (210)

TOTAL 29 182 15 981 83

Operating expenditure analysis

* Including Network Solutions

65

EBITDA analysis

ZAR million

12 months ended

Dec 2006

9 months ended

Dec 2005

%change

ZAR

Dec 2006EBITDA

margin %

Dec 2005EBITDA

margin %

South & East Africa 9 346 5 367 74 35,2 32,9

South Africa* 8 340 5 009 67 33,9 32,3


West & Central Africa 11 355 5 599 103 53,5 51,5

Nigeria 8 529 4 727 80 57,2 52,3Ghana 890 - - 52,2Other operations 1 936 872 122

Middle East & North Africa 1 117 (6) - 29,7

Iran (58) (6) (867)Sudan 99 - - 17,4

Other operations 1 076 - -

Head Office Companies 595 271 120

TOTAL 22 413 11 231 100 43,4 41,3

EBITDA excl. Investcom 20 100 11 231 79 44,1 41,3


66

ZAR million

12 months ended

Dec 2006

9 months ended

Dec 2005 % change

South & East Africa 1 334 842 58South Africa* 1 065 744 43


West & Central Africa 3 282 1 652 99Nigeria 2 699 1 455 85

Ghana 124 -


Middle East & North Africa 414 -

Iran 15 -

Sudan 52 -

Other Operations 347 -

Head Office Companies - 3

TOTAL 5 030 2 497 101

Depreciation analysis


67

ZAR million

12 months ended

Dec 2006

9 months ended

Dec 2005 % change

South & East Africa 203 50 306South Africa* 86 39 121


West & Central Africa 801 206 289Nigeria 191 116 65

Ghana 317 -


Middle East & North Africa 284 -

Iran 19 -

Sudan 65 -

Other Operations 200 -

Head Office Companies 1 -

TOTAL 1 289 256 404

Amortisation analysis


68

ZAR millionNet

FinanceCost

FinanceIncome

FinanceCosts

ForexLosses

Forex Gains

South & East Africa 571 (238) 640 173 (4)

South Africa* 494 (223) 598 122 (3)

Other operations 77 (15) 42 51 (1)

West & Central Africa 49 (591) 557 115 (32)

Nigeria (92) (558) 472 11 (17)

Ghana (15) (27) 10 9 (7)

Other operations 156 (6) 75 95 (8)

Middle East & North Africa (90) (74) 31 42 (89)

Iran (43) (44) 1 - -

Sudan (33) - 4 26 (63)

Other Operations (14) (30) 26 16 (26)

Head Office Companies 897 (295) 1 379 370 (557)

TOTAL 1 427 (1 198) 2 607 700 (682)

Finance cost analysis

* Including Network Solutions

Thank You

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