MTNFY20

Annual financial results
for the year ended 31 December 2020
Leading digital solutions for Africa’s progress

Contents
Results overview
1 Highlights 43 Summary group statement
of financial position
2 Results overview 44 Summary group statement
of changes in equity
39 Audited summary group financial 45 Summary group statement
statements of cash flows
40 Independent auditors’ report on 46 Notes to the summary group
the summary consolidated financial statements financial statements
41 Summary group income statement 87 Results presentation
42 Summary group statement of 133 Appendices
comprehensive income
147 Data sheets
* Constant currency information after accounting for the impact of on the summary group financial statements and the group annual
the pro forma adjustments as defined. financial statements together with the accompanying financial
information from MTN’s registered office, website and upon request.
Any forward-looking financial information disclosed in this results
announcement, including the dividend guidance, has not been The directors of MTN take full responsibility for the preparation of
reviewed or audited or otherwise reported on by our external joint this abridged report and ensuring that the financial information
auditors. has been correctly extracted from the underlying audited
financial statements.
Certain information presented in these results constitutes pro
forma financial information. The responsibility for preparing The key audit matters (pursuant to IAS 701) can be viewed via
and presenting the pro forma financial information and for the the full joint independent auditors’ audit report and the annual
completeness and accuracy of the pro forma financial information financial statements at www.mtn.com/investors/financial-
is that of the directors of the company. This is presented for reporting/annual-results.
illustrative purposes only. Because of its nature, the pro forma
financial information may not fairly present MTN’s financial IAS 21 The Effects of Changes in Foreign Exchange Rates
position, changes in equity, and results of operations or cash (IAS 21) requires that on the disposal of a foreign operation, the
flows. The pro forma and constant currency financial information cumulative amount of the exchange differences relating to that
contained in this announcement has been reviewed by the Group’s foreign operation, recognised in other comprehensive income and
external auditors and their unmodified limited assurance report accumulated in FCTR in equity, shall be reclassified from equity
prepared in terms of ISAE 3420 is available for inspection at the to profit or loss as a reclassification adjustment when the gain
company’s registered office on weekdays from 09:00 to 16:00. or loss on disposal is recognised. Two accepted methods exist
for recycling FCTR where the investments in foreign operations
Certain financial information presented in these consolidated are held by an intermediate parent with a different functional
financial results has been prepared excluding the impact currency than the entity disposed of and the ultimate parent, the
of hyperinflation, impairments of goodwill, PP&E and JVs & step-by-step approach and the direct approach. The Group has
associates, gain on disposal of tower associates; impairment loss accordingly changed its accounting policy on the reclassification
on remeasurement of disposal Groups, the Nigerian regulatory fine of FCTR on disposal of foreign operations held by an intermediate
(consisting of the re-measurement impact when the settlement parent where the functional currency of the foreign operation and
was entered into and the finance costs recognised as a result intermediate parent is different to that of the ultimate parent from
of the unwind of the initial discounting of the liability), gain on the step-by-step method to the direct method.
dilution of Jumia, impairment of investment in MEIH, impairment
of Iran receivable, gain on Travelstart disposal, gain on disposal The Group’s results are presented in line with the Group’s
of ATC Ghana and ATC Uganda, loss on disposal of investment operational structure. This is South Africa, Nigeria, the Southern
in Content Connect Africa and constitutes pro forma financial and East Africa and Ghana (SEAGHA) region, the West and Central
information to the extent that it is not extracted from the segment Africa (WECA) region and the Middle East and North Africa (MENA)
disclosure included in the audited consolidated annual financial region and their respective underlying operations.
statements for the year ended 31 December 2020. This pro forma The SEAGHA region includes Ghana, Uganda, Zambia, Rwanda,
financial information has been presented to eliminate the impact South Sudan, Botswana (joint venture-equity accounted), eSwatini
of the pro forma adjustments from the consolidated financial (joint venture-equity accounted) and Business Group. The WECA
results to achieve a comparable year-on-year (YoY) analysis. region includes Cameroon, Ivory Coast, Benin, Congo-Brazzaville,
The pro forma adjustments have been calculated in terms of the Liberia, Guinea Conakry and Guinea Bissau. The MENA region
Group accounting policies disclosed in the consolidated financial includes Iran (joint venture-equity accounted), Syria, Sudan,
statements for the year ended 31 December 2020. Yemen, and Afghanistan.
Constant currency information has been presented to remove Although Iran, Botswana and eSwatini form part of their respective
the impact of movement in currency rates on the Group’s results regions geographically and operationally, they are excluded
and has been calculated by translating the prior financial from their respective regional results because they are equity
reporting period’s results at the current period’s average rates. accounted for by the Group.
The measurement has been performed for each of the Group’s
currencies, materially being that of the US dollar and Nigerian
naira. The constant currency growth percentage has been
calculated based on the prior year constant currency results
compared to the current year results. In addition, in respect of
MTN Irancell, MTN Sudan, MTN South Sudan and MTN Syria, the
constant currency information has been prepared excluding the
impact of hyperinflation. The economies of Sudan, South Sudan,
Iran and Syria were assessed to be hyperinflationary for the period
under review and hyperinflation accounting was applied.
The joint independent auditors’ audit reports by
PricewaterhouseCoopers Inc. and SizweNtsalubaGobodo Grant
Thornton Inc. do not report on all of the information contained in
this announcement/financial results. Shareholders are therefore
advised that in order to obtain a full understanding of the nature
of the joint independent auditors’ engagement they should obtain
a copy of the unqualified joint independent auditors’ audit reports
Results overview

Results overview
Highlights
MTN is an emerging markets mobile operator with a clear vision to lead the delivery of
a bold, new digital world. We have 280 million customers in 21 markets and are inspired
by our belief that everyone deserves the benefits of a modern connected life.
Subscribers increased
Service revenue grew
by 28,8 million
by 11,9%*
to 279,6 million
Reported EBITDA margin

IFRS reported EBITDA
improved by
(before once-off items)
2,9 percentage points
increased by 21,9%
(pp) to 45,3%
(up 13,4%*)
(up 0,9 pp* to 42,7%*)
IFRS reported HEPS Group leverage at 0,8x

at 749 cps, (2019: 1,2x). Holding company
up 60,0% (Holdco) leverage flat at 2,2x,
Non-operational impacts Holdco net debt down R43,3 billion
decreased HEPS by 128 cps (2019: R55,3 billion)
Capex of
ROE R33,0 billion
improved to 17,0% (R28,6 billion
under IAS17)
Suspension of Enhanced medium-term

2020 final dividend, guidance to underpin
2021 dividend guidance our new ambition
of 260 cps 2025 strategy
* Constant currency information after accounting for the impact of the pro forma adjustments as defined.
Any forward-looking financial information disclosed in this results announcement, including the dividend guidance, is the directors’
responsibility and has not been reviewed or audited or otherwise reported on by our external joint auditors.
MTN Group Limited Results overview for the year ended 31 December 2020 1
Results overview
Group president and CEO, Ralph Mupita comments:

“The pandemic has brought about unprecedented socio and macroeconomic challenges
globally that have impacted lives and livelihoods across our footprint. The health and safety
of our people across our markets has been our key priority. To the end of February 2021, we
have reported 1 404 COVID-19 infections and mourned the loss of 10 MTN employees across
our markets. We continue to apply health measures to safeguard the wellbeing of our people,
who have also been empowered to work remotely.
The resurgence of COVID-19 infections across our footprint and globally presents ongoing
challenges including renewed lockdown restrictions in some markets. We continue to look
after our people, customers and other stakeholders through various programmes, including
Y’ello Hope.
We are pleased to have made a US$25 million donation in support of the African Union’s (AU)
programme to secure much-needed COVID-19 vaccines for member states. This partnership
deepens MTN’s role in the ongoing work to save lives in the markets in which we operate.
Importantly, it aligns with our ambition to create shared value and ensure the continent’s
future progress and prosperity.
Beyond this, as well as managing the accompanying risks of COVID-19, we remain alive to the
opportunities presented by the pandemic, particularly the accelerated need for digitalisation
evidenced in the adoption and usage of our services. In support of this, we continue to
strengthen our commercial, operational, and financial position while focusing on the
resilience of networks and efficiency programmes in our various markets.
Despite the challenging trading conditions, therefore, MTN continued to demonstrate strong
operational execution and resilience in delivering a solid performance for the year in our key
commercial and financial metrics. We added 28,8 million customers to our networks, to end
with a subscriber base of 279,6 million, as at December 2020. Driven by our focus on
furthering digital and financial inclusion, we added 19,0 million active data users and
11,7 million MoMo users to reach 114,3 million and 46,4 million respectively. The number of
active merchants accepting our MoMo propositions increased 115% to 440 000 in number. In
Nigeria, we signed up more than 280 000 additional agents to end the financial year with
more than 395 000 registered agents for our fintech business.
We continued to perform favourably against our medium-term targets, with service revenue
growth of 11,9%* and EBITDA growth of 13,4%*, maintaining our strong operating leverage.
The Group’s EBITDA margin improved by 0,9pp* to 42,7%*, benefiting from the execution of
our expense efficiency programme. The solid operational result was supported by the
pleasing growth in our larger operations as well as a broad-based improvement across all
our regions. In the larger operations, MTN South Africa (MTN SA) sustained the turnaround
in its core business units while MTN Nigeria and MTN Ghana continued to deliver solid overall
performances with double-digit service revenue growth in both markets.
Importantly, our adjusted ROE advanced by a further 4,0pp to 17,0%, driven by strong
underlying earnings growth.
Group leverage remains comfortable and net debt-to-EBITDA improved further to 0,8x.
Holdco leverage was steady at 2,2x and remains above our previously communicated target.
2 MTN Group Limited Results overview for the year ended 31 December 2020
Results overview
Although slower than expected, with delays to some of our larger planned divestments such
as IHS Towers, we made some encouraging progress in our asset realisation programme
(ARP). Following the disposal of our ATC Ghana and ATC Uganda tower joint ventures for
R8,8 billion in Q1, we finalised the exit from our 18,9% investment in Jumia (for proceeds of
R2,3 billion) as well as the localisation of an 8% shareholding in MTN Zambia (for proceeds
R178 million). In February 2021, we also completed the exit from BICS, and received net cash
proceeds of R1,8 billion in the same month.
Cash upstreaming from Nigeria remained challenged in terms of securing foreign currency in
the market. During 2020, we upstreamed the equivalent of approximately R286 million from
Nigeria, with approximately R4,2 billion yet to be repatriated as at 31 December 2020.
In H1 2020 we suspended the interim dividend, informed by three key conditions negatively
impacting our Holdco leverage evolution. These related to uncertainties around cash
upstreaming from Nigeria, the timing of ARP proceeds and COVID-19 impacts. These
conditions have not materially improved, resulting in Holdco leverage remaining above our
target, the Board has resolved not to declare a final dividend for 2020. This is in line with our
capital allocation framework.
In light of these material uncertainties, the Board has also suspended the dividend policy and
anticipates communicating a revised medium-term dividend policy when we announce our
FY 2021 results in March 2022.
During this transition, the Board anticipates paying a total ordinary dividend of at least
260cps for the 2021 financial year. We anticipate that this will be a final dividend, with no
interim dividend for FY 2021. On assessment of the progress of cash upstreaming from
Nigeria, ARP delivery and COVID-19 impacts, the Board will consider returning further cash
to shareholders in the form of special dividends or share repurchases after the release of
FY 2021 results.
Further to our previous announcement regarding the intention to focus on our pan-Africa
strategy, we completed a comprehensive strategy review in Q4 2020 and are excited to
introduce ‘Ambition 2025’. As part of this strategic repositioning, we are looking to structurally
separate our infrastructure assets and platforms, such as fintech, to reveal value and attract
3rd-party capital and partnerships into these businesses, over the medium-term.
Going forward, we believe that our revised strategy, Ambition 2025, will position the business
to capture the exciting opportunities across our markets and our medium-term guidance has
been enhanced to reflect this accelerating growth outlook. To support this, we plan to invest
approximately R29,1 billion in our network, fintech and digital services platforms in 2021.”
Results overview continued
Overview
MTN delivered another solid operational and financial performance for the year ended
31 December 2020, under exceptionally challenging trading conditions. Service revenue grew
ahead of our blended inflation, despite varying degrees of lockdown restrictions across most
of our markets throughout the period. Our efficiency programme drove positive operating
leverage, supporting an improved EBITDA margin.
Group service revenue increased by 11,9%* to R170,1 billion (2019: R141,8 billion). This was
led by growth of 14,6%* in MTN Nigeria, 1,6% in MTN SA, 16,6%* in MTN Ghana and benefitted
from solid overall top line growth from the regional opcos.
Voice revenue increased by 4,8%*, despite voice traffic coming under pressure – especially
during the height of COVID-19 effects in Q2. There was some improvement in trends as
lockdown restrictions eased, resulting in a recovery in voice revenue through the remainder
of the year. The overall performance in the period was supported by a 28,8 million increase in
Group subscribers to 279,6 million. We continued to enhance growth through our well-
executed customer value management (CVM) initiatives and segmented customer propositions.
Data revenue expanded by 31,0%*, with a 110,0% increase in traffic brought about by higher
levels of online demand resulting from the effects of COVID-19, including an increase in learn-
from-home and work-from-home. At 31 December 2020 we had 114,3 million active data
users, having added 19,0 million in the year. We surpassed the breakthrough 100 million mark
in H1 as we continue to work towards our ambition of connecting 200 million data users to our
networks in the medium-term.
Anchored in our intent of driving the industry-leading connectivity operations in our markets,
we sustained our efforts to bridge the digital divide. We expanded our 3G and 4G coverage
footprint adding 16,3 million and 55,0 million people respectively; invested in 5G in SA;
recorded 140 million smartphones on our network; and reduced the effective rate per
megabyte by 32,9%. Average data usage rose by 60% to 4,4 GB per month.
Fintech revenue rose by 23,9%*. The number of active Mobile Money (MoMo) users increased
by 11,7 million to 46,4 million, generating a monthly ARPU of $1,2. The value of MoMo
transactions was US$152 billion and we processed 12 400 transactions per minute (up 35%
from 9 200 in 2019). While COVID-19 accelerated the adoption of mobile financial services,
growth in fintech revenue was moderated by reductions in transaction fees to support our
customers, lockdown restrictions on agents and a slowdown in economic activity.
At the end of December 2020, our aYo insurance joint venture had 11 million registered policy
holders and 6 million active policies. In total, aYo generated US$6,4 million (R106 million) in
service revenue and US$10,5 million (R172 million) premium income. We have concluded an
agreement to increase our shareholding in aYo to 75% and will consolidate it in future once
regulatory approvals are obtained.
Digital revenue increased by 27,1%*, with an acceleration in growth in H2, supported by

greater uptake of our services. With this, the structural turnaround in the segment has been
completed and we are positioned for further sustained growth. We expanded our instant
Results overview
messaging platform ayoba making good strides in the year, to record 5,5 million monthly
active users, an addition of 3,5 million. It has now been integrated into 16 MTN markets and
can be downloaded across many other markets on the Google Play store, Apple App Store and
via the ayoba website as an OTT offering. In the year, ayoba expanded its services to include
music, gaming, channels and money transfer.
Streaming service MusicTime! is now live in nine MTN markets, and 15 opcos live with
MusicTime in the ayoba app. In the year, MTN extended its digital strategy with the launch of a
new pan-African API marketplace called Chenosis, which will enable developers and
businesses to discover and subscribe to what will become the largest library of open APIs
published on the continent.
Enterprise revenue increased by 14,8%*, supported by growth in MTN SA, MTN Nigeria, MTN
Ghana and MTN Côte d’Ivoire. Growth benefitted largely from increased data usage and
remote working.
Wholesale revenue declined by 12,4%*, impacted in South Africa by the conclusion of our
roaming agreement with Telkom and as we continued to account for Cell C revenue on a cash
basis. We recognised revenue of approximately R2,0 billion (up 10% YoY) from Cell C for
national roaming during the year, and R414 million remained unrecognised as at 31 December
2020. Phase 2 of the Cell C roaming agreement, which was concluded in May 2020, continues
to be implemented. Cell C remains up to date with payments in line with its payment plan.
MTN GlobalConnect recorded strong commercial and financial performances, having billed
new fixed wholesale deals to the value of US$28,8 million and delivered growth in external
revenue of 54,0% to US$66,8 million.
The Group’s EBITDA margin in constant currency terms and excluding the effects of once-off
items expanded by 0,9pp* to 42,7%*, driven by the 1,7pp* and 2,0pp* improvements delivered
by MTN SA and MTN Ghana respectively. The EBITDA margin in MTN Nigeria (down by 3,0pp*)
was impacted by costs linked to its accelerated 4G site rollout, an increase in the VAT rate as
well as higher tower lease costs due to exchange rate adjustments.
MTN Group’s reported EBITDA margin was 45,3% compared to 42,4% in December 2019. This
was impacted positively by the gain on disposal of our ATC Uganda and ATC Ghana tower
associates and negatively by the impairment loss on the remeasurement of disposal groups.
The 2019 margin had included the effects of the gain on dilution of our investment in Jumia,
the gain on disposal of Travelstart as well as tower profits. The Group’s overall margin
improvement in 2020 was assisted by our efficiency programme, including strict cost
containment measures.
Basic earnings per share (EPS), increased by 87,0% to 946 cents (2019: 506 cents), supported
by the weaker rand, good operational performance and an improved contribution of the share
of profits from associates and joint ventures. EPS includes the impairment losses relating to
MTN Syria and BICS of approximately 84 cents, as well as the benefit from gains amounting
to approximately 341 cents on the disposal of the ATC Uganda and ATC Ghana tower joint
ventures as announced in March 2020.
Reported headline earnings per share (HEPS) increased by 60,0% to 749 cents
(2019: 468 cents). HEPS were negatively impacted by non-operational items amounting to
128 cents from the following items: 0 cents relating to the Nigeria fine interest (-8 cents
in 2019); hyperinflation (excluding impairments) of 30 cents (-13 cents in 2019); the impact of
foreign exchange gains and losses of -168 cents (-78 cents in 2019) and the reversal of the
time value loss recognised on the Iran receivable of 10 cents (-12 cents in 2019).
We are particularly pleased with the momentum in growth of underlying earnings at the
bottom-line. This bears testament to the progress we have made in enhancing the quality of
our earnings in line with our strategy, particularly in relation to line items below the operating
line.
We invested capex of R33,0 billion on an IFRS reported basis, which is 0,5% higher YoY (up by
8,9% to R28,6 billion under IAS 17). We managed to accelerate our investment in H2 as
COVID-19 lockdown restrictions eased and continued to expand the capacity of our networks,
rolling out 3 342 3G and 8 354 4G sites. Capex intensity reduced to 16,0% from 17,3% in
December 2019 under IAS 17.
Group operating free cash flow increased by 117,1% to R28,3 billion, benefitting from positive
operating leverage and solid EBITDA growth as well as our focus on efficiencies and liquidity
management.
Return on equity (ROE) for the year increased to 17,0%, compared to 13,0% in December
2019. This adjusts for non-operational items, including hyperinflation, and was driven by the
Group’s solid revenue growth, improved efficiencies and positive operating leverage. The
expansion in ROE is a further demonstration of the improving quality of our earnings.
Asset Realisation Programme and portfolio transformation

Our asset realisation programme (ARP), launched in March 2019 and enhanced in March
2020, aims to reduce debt, simplify our portfolio, reduce risk and improve returns. The stated
target of our ARP is to realise capital of at least R25 billion over three to five years – over the
past 12 months we have delivered approximately R4,3 billion in asset realisations.
MTN’s broader portfolio transformation ambition is to accelerate these objectives to actualise

our focus on pan-Africa and structure the business to reveal value.
In March 2020, we completed the disposal of our 49% equity holdings in Ghana Tower Interco
B.V. and Uganda Tower Interco B.V., which were part of the first phase of our ARP. However,
COVID-19 brought about unprecedented uncertainty and volatility in global oil prices and
capital markets, which impacted our short-term ability to continue with further significant
realisations. We remain committed to execute on our portfolio transformation and continued
to make significant progress in laying the groundwork for when conditions are more conducive
to implement our ambitions.
During H2, we completed the exit from our 18,9% investment in e-commerce venture Jumia
Technologies AG realising a total consideration of approximately R2,3 billion (US$138 million).
In August 2020, we announced plans to exit the Middle East in an orderly manner over the
medium-term, aligning with our ambition to simplify our portfolio and focus on pan-African
markets. As part of this process we classified MTN Syria as an asset held for sale and it
remains the Group’s intention to exit its 75% stake in the business.
Results overview
Also in H2, we completed the localisation of an 8% shareholding in MTN Zambia, netting

approximately R178 million of proceeds. Further to our localisation ambition, in October 2020,
we announced that the Group intends to sell down a further 12,5% of its investment in MTN
Ghana, with a focus on local shareholding. This will increase its free-float on the Ghana Stock
Exchange (GSE) to 25%, following the initial public offer in which 12,5% of its shares were listed
on the GSE and nearly 130 000 Ghanaians were welcomed as shareholders.
In December 2020, we announced the intention to list MTN Rwanda directly on the Rwanda
Stock Exchange (RSE) by way of introduction. This is an important first step towards further
broadening local participation in Rwanda’s leading mobile network operator and developing
the capital markets in the country.
In February 2021, we completed the sale of our 20% associate shareholding in Belgacom
International Carrier Services SA (BICS) to PROXIMUS NV/SA. We have received proceeds of
approximately €102,4 million (R1,8 billion) in cash. As at 31 December 2020, the carrying
amount of MTN’s investment in BICS was R1,7 billion and the accumulated FCTR gain related
to the asset was R1,2 billion. Upon release of the FCTR, we anticipate recording a profit on
disposal of R1,2 billion.
Regulatory and legal considerations

SIM registration in Nigeria
On 9 December 2020, the National Communications Commission’s (NCC) suspended the sale
and activation of new SIM’s for all operators in Nigeria. On 15 December 2020 the NCC further
directed operators to update SIM registration records with national identification numbers
(NIN’s) for every SIM connected to networks in Nigeria, with the current deadline to complete
this specified as 6 April 2021.
MTN Nigeria has embraced the opportunity to play a more meaningful role in driving a solution
for this issue and establish a sustainable and more reliable SIM registration process in the
country. As at 28 February 2021, 37,2million (or 48,7%) of the MTN Nigeria subscriber base
had submitted their NIN’s. These submissions remain subject to verification against the
National Identification Management Commission (NIMC) database to complete the
registration.
MTN Nigeria has been granted a licence to enrol citizens for new NINs and is scaling up its
capacity to do so in collaboration with NIMC. In that context, MTN Nigeria is engaging with the
authorities and industry stakeholders in the country to resume new SIM registration as soon
as possible.
MTN Afghanistan anti-terrorism complaint

On 5 February 2021, MTN Group (MTN) filed a reply in support of its request that the court
dismiss MTN from a civil case in U.S. court. In September 2020, MTN had asked the United
States court to dismiss the case, filed against MTN on 27 December 2019, which asserted
claims for civil monetary relief under the U.S. Anti-Terrorism Act.
MTN requested that the court dismiss the complaint for two independent reasons: firstly, the
court lacks jurisdiction over MTN, which does not operate in the United States, and secondly,
the complaint does not allege any conduct by MTN that violated the Anti-Terrorism Act.
On 8 December 2020, plaintiffs responded to MTN separately from other defendants because
of MTN’s distinctive arguments as a telecommunications company with no presence in the
United States, including that it argues that it is not subject to the U.S. court’s jurisdiction. MTN
filed its reply to the plaintiffs on 05 February 2021. In its written reply, MTN reiterates its
position that the plaintiffs case should be dismissed because the plaintiffs cannot establish
jurisdiction over MTN in the United States or plead a viable claim under the U.S. Anti-Terrorism
Act.
MTN conducts its business in a responsible and compliant manner in all its territories and will
defend its position where necessary.
Spectrum in South Africa

In December 2020, MTN SA submitted its bid for high-demand spectrum to the Independent
Communications Authority of South Africa (ICASA). The auction includes spectrum in the 700-
800 MHz, 2,6 GHz and 3,5 GHz bands. Temporary spectrum allocated in early 2020 was
extended to March 2021.
In January 2021, MTN SA filed an application in the Gauteng High Court to declare unlawful,
and to review, correct or set aside two decisions made by ICASA relating to the spectrum
auction process. MTN SA is challenging ICASA’s decision to implement an auction structure
that creates two categories of mobile operators, namely Tier 1 and Tier 2, and the use of an
opt-in auction round in which Tier 1 operators will not be allowed to participate. MTN SA has
been classified as a Tier 1 operator.
MTN SA’s action is premised on two fundamental concerns. Firstly, the definitions used to
differentiate a Tier 1 operator from the Tier 2 operator are, amongst others, impermissibly
vague, arbitrary and unreasonable. Secondly, ICASA has included the highly sought-after
3,5 GHz band (that is optimal for 5G usage) in the portfolios that are available during the opt-
in round. The categorisation and opt-in structure of the auction have created a very real
outcome where MTN would be unable to bid for any of the 3,5 GHz, due to the bulk of the
spectrum having been taken up by the Tier 2 operators in the initial opt-in round.
Given its desire not to delay the process, MTN SA has addressed the matter to the court on an
urgent basis. MTN SA remains committed to reaching a constructive resolution on this matter
and look forward to the release of high-demand spectrum.
MTN Ghana classified a significant market power

In June 2020, the National Communications Authority (NCA) classified MTN Ghana a
significant market power and determined that it would be subject to special regulatory
restrictions. From October 2020, MTN Ghana implemented the NCA’s directive to apply a 30%
asymmetrical interconnect for two years. MTN Ghana remains in constructive discussions
with the NCA in order to pave the way for an amicable resolution. These discussions are
ongoing and the market will be updated on any significant developments.
MTN Syria placed under judicial guardianship

On 17 February 2021, a lawsuit was filed before the Administrative Court of Damascus (the
Court) by the Syrian Ministry of Telecommunications and the Syrian Telecommunications and
Post Regulatory Authority seeking interim measures against MTN Syria. On 25 February 2021,
the Court placed MTN Syria under a judicial guardianship, with immediate effect.
Results overview
The Court has appointed the Chairman of Tele Invest, the minority shareholder of MTN Syria,
to serve as the judicial guardian. According to the Court order, the judicial guardian took over
responsibility for managing the day-to-day operations of MTN Syria. MTN Syria remains a
going concern.
MTN Group strongly disagrees with the Court’s decision to appoint a judicial guardian over
MTN Syria, and on 1 March 2021, filed an appeal to remove the judicial guardian. On the same
date, Tele Invest filed an appeal against the appointment of its Chairman as the judicial
guardian. Both appeals remain pending. MTN continues to consider the potential impact of
these latest developments and is considering further steps related to its investment in MTN
Syria.
MTN Group is committed to continued compliance with all applicable laws and continues to
monitor all developments to ensure it acts in accordance with applicable laws.
COVID-19 pandemic impact on the business

2020 was characterised by the COVID-19 pandemic and its impacts, including volatility in
global commodities and capital markets as well as the implementation of varying degrees of
restrictions. These were most severe in April 2020, after which they began to ease. However,
towards year-end a second wave of infections emerged, resulting in renewed lockdown
restrictions in some markets.
While economic activity improved as the year progressed, the trading environment remained
challenging. We continued to focus on four key areas, namely: social (our people, communities
and stakeholders); commercial (including our customers); network and supply chain; and
funding and liquidity.
Social
The Group provided ongoing support through the MTN Global Staff Emergency Fund for
employees; Y’ello Hope packages for our customers, communities and other stakeholders as
well as through contributions to MTN foundations and government-led initiatives. The Group
contributed R107 million through its foundations towards healthcare and government relief
efforts in support of the fight against COVID-19.
The investment we made in Y’ello Hope initiatives provided approximately R1,8 billion in value
to our stakeholders. We committed marketing resources to our global #WearItForMe campaign,
which encouraged the wearing of masks to fight the spread of the virus.
In January 2021, we donated US$25 million in support of the African Union’s (AU) programme
to secure much-needed COVID-19 vaccines for frontline health workers across the member
states.
Commercial
Despite some periods of volatility, primarily in April 2020, our commercial trends were relatively
resilient in 2020. Although we have observed some easing from peaks, most trends recovered
well from the initial severe pressure caused by COVID-19 and maintained relatively elevated
levels. We once again overview the trends in our data, voice and fintech volumes in context of
COVID-19.
Comparing overall Group data traffic in December 2020 with that in April 2020, the level of
activity was 32,5% higher, and grew by approximately 110% YoY for the financial year. In terms
of our larger markets: MTN SA was up by 14,4% in December versus April 2020 (and 68,1%
YoY), MTN Nigeria increased by 28,0% (and 33,5% YoY), while MTN Ghana was up by 16,7%
(and 60,2% YoY).
Data demand, and online or connectivity services generally, benefitted from shifts in consumer
spending patterns during peak periods of lockdown restrictions as spend that would normally
have been directed elsewhere was channelled into data and other digital services. But as
restrictions were lifted, we observed some reversal in this trend although we expect some
structural element of the shift to remain.
We experienced some pressure on voice during strict lockdowns conditions, however the
trajectory of voice traffic showed a solid recovery. Group voice traffic was up by 21,7% in end
December 2020 compared with April 2020 and increased by 14,1% YoY for the financial year.
For MTN SA, voice traffic was 23,7% higher in December versus April (and 40,8% YoY), MTN
Nigeria was up by 49,3% (and 22,1% YoY) and MTN Ghana had increased by 42,2% (and 26,5%
YoY).
Fintech recovered strongly from the lows experienced since April 2020, against which Group
fintech transaction volumes in December 2020 were up by 48,5% and 34,5% higher, YoY for the
financial year. On the same basis, the value of fintech transactions in US$ terms was up by
94,9% and 57,6% respectively. We zero-rated transaction fees to support our customers
through challenges presented by COVID-19, which also helped to drive increased adoption.
COVID-19 has put pressure on the financial position of our postpaid and enterprise business
unit customers. The increased credit risk culminated in larger long-outstanding balances on
which a detailed review and adequacy of provisions was performed. During 2020 we
recognised an impairment and write-down of trade receivables and contract assets of
R2,2 billion, which reflects a 197% increase on FY 19.
Network and supply chain

Our priority throughout the pandemic has been to safeguard the capacity and resilience of
our networks. We ensured this by implementing measures including building up an inventory
of equipment and critical spares. Following a delay in the pace of site rollouts during the
height of COVID-19 restrictions in H1, we managed to accelerate our investment in H2 and
managed to meet our original (pre-COVID19) capex target for the year.
This helped to increase the headroom in our networks and, in December 2020, the headroom
on our data networks was approximately 39,0% in South Africa, 50,0% in Nigeria and 29,0% in
Ghana.
We continue to monitor our network and supply chain to mitigate against any significant
interruptions that may be caused by the pandemic.
Funding and liquidity

Our ability to weather the volatility brought about by COVID-19 is demonstrated in the strength
and resilience of our balance sheet. During 2020, we successfully fast-tracked and closed
R18,2 billion in funding to mitigate refinance risks around upcoming maturities and our
ongoing focus remains on managing liquidity as a priority.
Results overview
As at 31 December 2020, our Group net debt was R49,7 billion and our net debt-to-EBITDA
ratio of 0,8x, remains well within our covenant limit of 2,5x. Our interest cover was 7,7x,
comparing favourably with the covenant limit of no less than 5,0x.
We maintained a healthy liquidity position at the Holdco level where our year-end Holdco net
debt of R43,3 billion reflected a pleasing reduction on the December 2019 level of R55,3 billion.
At the end of December 2020, our Holdco leverage of 2,2x was flat on the previous year as
cash upstreaming, from Nigeria in particular, remained challenging. Holdco leverage did,
however, improve from the June 2020 level of 2,7x aided by some H2 progress in our ARP and
recovery in the rand against the US dollar. The ratio of US$ to ZAR denominated debt at
Holdco level improved to 48:52, from 50:50 compared in 2019.
During the year, we upstreamed R8,7 billion in cash from most of our opcos with MTN Nigeria
being the notable exception. Although some cash was repatriated from Nigeria (approximately
R286million) during the year, this was not material and upstreaming continues to be delayed
due to challenges in securing foreign currency in that market. Presently, the total dividends
that have accrued to Group as at December 2020, and yet to be upstreamed, amount to
NGN118,5 billion (approximately R4,2 billion). In February 2021, MTN Nigeria declared a final
dividend for FY 2020 of which the Group’s net portion amounts to NGN87,5 billion
(approximately R3,2 billion) – this is subject to approval by the MTN Nigeria shareholders at
its annual general meeting (AGM), scheduled for 25 May 2021. The preceding ZAR-equivalent
figures were calculated based on December 2020 closing rates.
We maintain a prudent approach to liquidity management and focus on cash preservation. At

31 December 2020, our Holdco liquidity headroom was R41,0 billion. This is comprised of
R16,4 billion in cash (excluding the Nigeria dividends that have been paid and not repatriated)
and R24,6 billion in committed, undrawn credit facilities.
Our focus over the medium-term remains on reducing our exposure to US dollar debt, as well
as to improve the funding mix at the Holdco level through greater cash flows.
Strategy update: Ambition 2025 – ‘Leading digital solutions for

Africa’s progress’
We completed a comprehensive review of our strategy in November 2020, resulting in a
repositioning of the business for sustained growth and greater relevance to 2025. MTN has
built strong core operations, which are underpinned by the largest fixed and mobile network
in Africa; a large connected, registered customer base; an unparalleled registration and
distribution network as well as one of the strongest brands in our markets. This is the starting
point and foundation of our strategic inflection.
In the wake of COVID-19, the challenges of reducing the Group’s risk profile and Holdco
leverage have been brought into sharper focus. The pandemic has also highlighted the
opportunities presented by the shift in the global operating environment. These factors inform
the case for change and need to revise our strategy.
In light of the digital acceleration taking place globally, MTN recognises the opportunity to win
in digital services in our markets as customers come online for the first time. In so doing, there
is also an opportunity for MTN to more closely align our priorities to the socio-economic and
development agendas of the markets we operate in.
Our revised strategy, Ambition 2025, is anchored on building the largest and most valuable
platform business with a clear focus on Africa. This will rest on a scale connectivity and
infrastructure business, making use of both mobile and fixed access networks across the
consumer, enterprise and wholesale segments. The implementation of this growth strategy
will be accelerated through selective partnerships and leveraging MTN’s brand as the most
trusted and valued in Africa, while it will be supported and funded through enhanced cost
and capex efficiencies.
The strategic intent of Ambition 2025 of ‘Leading digital solutions for Africa’s progress’ is
anchored in our enduring belief that ‘everyone deserves the benefits of a modern connected
life’. In the above context, the execution of Ambition 2025 is thus embodied in four clear
strategic priorities:
■ build the largest and most valuable platforms;
■ drive industry leading connectivity operations;
■ create shared value; and
■ accelerate portfolio transformation.
We have identified five vital enablers to assist in operationalising our strategy. These are:
leading customer experience; the best talent, culture and future skills; value-based capital
allocation; ESG at the core; and technology platforms that are second to none.
At its core, Ambition 2025 sets the context of how we will drive the business forward to take
advantage of the digital acceleration trends, capture growth opportunities and reveal the
inherent value in our business. This will be underpinned by a clear focus on driving network
and operational efficiencies, including digitalising the core, with a target of realising
efficiencies of at least R5 billion over the next three years off the 2020 base. Importantly,
under the revised strategy we will look to structurally separate some of our businesses such
as fintech and fibre over the medium-term, as part of revealing and crystallizing value.
We will provide more details of our strategy and its implementation at a capital markets day
(CMD) planned for early June 2021.
Capital allocation priorities

Over the past three years, our disciplined and prudent capital allocation framework has
underpinned the Group’s solid organic topline growth, progress on reducing and optimising
our leverage as well as improvement in our ROE. We will continue to be guided by this
framework, which prioritises:
■ Investment to drive organic growth;
■ Stabilising leverage and rebalancing the mix to have rand debt making up at least 60% of
Holdco net debt;
■ Return cash to shareholders through dividends;
■ Selective and strategic mergers and acquisitions; and
■ Further returns of cash to shareholders through share repurchases and/or special
dividends.
Our capital allocation framework aligns to our Ambition 2025 strategic priorities and
emphasizes expense efficiencies and strengthening of the Holdco balance sheet, including
appropriate liability management. It informs our focus on allocating capital in a manner that
ensures the best possible short and long-term returns for the business and shareholders’
investment.
Results overview
Dividend and dividend policy update

In H1 we suspended the interim dividend, informed by three key conditions negatively
impacting our Holdco leverage evolution. These related to uncertainties around cash
upstreaming from Nigeria, the timing of ARP proceeds and COVID-19 impacts. These
conditions have not materially improved, resulting in Holdco leverage remaining above our
target, the Board has resolved not to declare a final dividend for 2020 (2019: 550cps). This is
in line with our capital allocation framework.
In light of these ongoing material uncertainties, the Board has also suspended the dividend
policy and anticipates communicating a revised medium-term dividend policy when we
announce our FY 2021 results in March 2022.
During this transition, the Board anticipates paying a total ordinary dividend of at least 260cps
for the 2021 financial year. We anticipate that this will be a final dividend, with no interim
dividend for FY 2021. On assessment of the progress of cash upstreaming from Nigeria, ARP
delivery and COVID-19 impacts, the Board will consider returning further cash to shareholders
in the form of special dividends or share repurchases after the release of FY2021 results
Going forward, MTN remains focused on capturing the exciting growth opportunities across
our markets and our medium-term guidance has been enhanced to reflect this. To support
this, we plan to invest approximately R29,1 billion in our network, fintech and digital services
platforms in 2021, guided by our disciplined capital allocation framework.
Capex guidance 2021 (including the impact of IFRS 16)

Estimated Estimated Capitalised Capitalised Capitalised Capitalised
(IFRS 16) (IAS 17) (IFRS 16) (IAS 17) (IFRS 16) (IAS 17)
Rm 2021 2021 2020 2020 2019 2019
South Africa 8 283 7 798 7 542 7 209 11 295 7 562
Nigeria 12 154 8 976 12 694 10 016 9 750 8 011
SEAGHA 5 677 4 885 6 063 5 052 5 554 4 979
WECA 3 673 3 472 3 418 3 255 3 231 2 799
MENA 1 539 1 331 1 642 1 573 1 989 1 941
Head offices, GlobalConnect
and eliminations 2 662 2 662 1 286 1 127 834 833
Total 33 988 29 124 32 645 28 232 32 653 26 125
Hyperinflation – – 394 377 215 156
Total reported 33 988 29 124 33 039 28 609 32 868 26 281
Iran (49%) 1 940 1 859 1 865 1 773 2 568 2 483
The difference between IFRS 16 and IAS 17 is operating leases, that are capitalised under
IFRS 16.
Financial review
Headline earnings reconciliation
Impairment Gain on
loss on disposal/
Impairment remeasure- dilution of
IFRS of goodwill, ment of investment
reported PPE and disposal in JV/
Rm 2020 associates1 group2 Associate3
2020
Revenue 179 361 – – –
Other income 6 228 – – (6 129)
CODM EBITDA before impairment of
goodwill 81 311 42 1 113 (6 129)
Depreciation, amortisation and impairment
of goodwill and joint venture (36 716) 1 065 397 –
CODM EBIT 44 595 1 107 1 510 (6 129)
Net finance cost (18 233) – – –
Net monetary gain 1 582 – – –
Share of results of joint ventures and
associates after tax 1 142 – – –
Profit before tax 29 086 1 107 1 510 (6 129)
Income tax expense (9 439) – – –
Profit after tax 19 647 1 107 1 510 (6 129)
Non-controlling interests (2 625) (9) (7) –
Attributable profit 17 022 1 098 1 503 (6 129)
EBITDA margin 45,3%
Effective tax rate 32,5%
Impairment Gain on
loss on disposal/
Impairment remeasure- dilution of
IFRS of goodwill, ment of investment
reported PPE and disposal in JV/
Rm 2019 associates1 group2 Associate3
2019
Revenue 151 460 - - -
Other income 1 510 - - (1 288)
CODM EBITDA before impairment of
goodwill 64 229 330 - (1 288)
Depreciation, amortisation and impairment
of goodwill and joint venture (32 800) 342 - -
CODM EBIT 31 429 672 - (1 288)
Net finance cost (15 184) - - -
Net monetary gain 787 - - -
Share of results of joint ventures and
associates after tax 705 - - (37)
Profit before tax 17 737 672 - (1 325)
Income tax expense (6 908) - - -
Profit after tax 10 829 672 - (1 325)
Non-controlling interests (1 729) 25 - -
Attributable profit 9 100 697 - (1 325)
EBITDA margin 42,4%
Effective tax rate 38,9%
Results overview
Reversal
Hyper- Impact of of time
inflation foreign value loss
Nigeria (excluding exchange recognised %
Headline fine impair- losses and on the Iran Adjusted move-
Other 4
earnings interest5 ments)6 gains7 receivable8 2020 ment
– 179 361 – (2 925) – – 176 436 17,2

– 99 – 15 – – 114 (14,3)
(22) 76 315 – (1 186) – – 75 129 19,4
– (35 254) – 951 – (174) (34 477) (9,0)

(22) 41 061 – (235) – (174) 40 652 30,0
– (18 233) – 868 3 972 – (13 393) (8,2)
– 1 582 – (1 582) – – – –
– 1 142 – 69 284 – 1 495 54,2

(22) 25 552 – (880) 4 256 (174) 28 754 44,8
– (9 439) – 193 (1 103) – (10 349) (36,7)
(22) 16 113 – (687) 3 153 (174) 18 405 49,8
1 (2 640) – 148 (137) – (2 629) (39,6)
(21) 13 473 – (539) 3 016 (174) 15 776 51,6
42,5%
36,9%
Reversal
Hyper- Impact of of time
inflation foreign value loss
Nigeria (excluding exchange recognised
Headline fine impair- losses and on the Iran Adjusted
Other4 earnings interest5 ments)6 gains7 receivable8 2019
- 151 460 - (905) - - 150 555

(83) 139 - (6) - - 133
(83) 63 188 - (282) - - 62 906
- (32 458) - 598 - 217 (31 643)

(83) 30 730 - 316 - 217 31 263
- (15 184) 189 256 2 364 - (12 375)
- 787 - (787) - - -
- 668 - 466 (165) - 969

(83) 17 001 189 251 2 199 217 19 857
- (6 908) - - (662) - (7 570)
(83) 10 093 189 251 1 537 217 12 287
22 (1 682) (40) (20) (142) - (1 884)
(61) 8 411 149 231 1 396 217 10 404
41,7% 41,8%
40,6% 38,1%
1
Represents the exclusion of the impact of goodwill, PPE and joint venture impairments. 2020: MEIH (R67million),
goodwill (Liberia: R308 million, Guinea-Bissau: R165 million and Yemen: R525 million) and PPE (R42 million);
2019: MEIH (R342 million) and PPE (R355 million).
2
Represents the impairment loss on remeasurement of Syria (2020: R1 106 million; 2019: R0 million) and BICS
(2020: R397 million; 2019: R0 million) disposal groups.
3
Represents the gain on disposal/dilution of investment in joint ventures and associates: Gain on disposal of tower
companies (R6 136 million) and loss on disposal of CCA (R7 million); 2019: R1 325 million (Jumia: R1 039 million,
MEIH: R37 million and gain on disposal of TravelStart: R249 million).
4
Release of a deferred gain in Ghana on the sale of tower assets (2020: R0 million; 2019: R19 million) and profit on
the disposal of items of property, plant and equipment. 2020: R21 million; 2019: R42 million.
5
Exclusion of finance cost recognised as a result of the unwind of the discounting of the financial liability created on
conclusion of the Nigeria regulatory fine. 2020: R0 million (2019: R149 million).
6
The impact of hyperinflation is excluded for the operations that are currently accounted for on a hyperinflationary
basis (MTN Irancell, MTN Syria, MTN Sudan and MTN South Sudan) as well as those that have previously been
accounted for on a hyperinflationary basis. The economy of Sudan was assessed to be hyperinflationary during
2018, and hyperinflation accounting has since been applied. Hyperinflationary accounting was applied previously
in MTN Sudan until 30 June 2016. The economy of Iran was assessed to be hyperinflationary effective 1 January
2020, and hyperinflation accounting was applied for the current financial year. The economy of Iran was assessed
to no longer be hyperinflationary effective 1 July 2015 and hyperinflation accounting was discontinued from this
date onwards. For this operation the impact of hyperinflation unwinds over time mainly through depreciation,
amortisation or subsequent asset impairments.
7
Adjustment for the net forex losses impacting earnings for the respective periods. 2020: forex loss of R3 016 million;
2019: forex loss of R1 396 million. This includes the impact of forex in Iran.
8
Represents the (reversal)/recognition of the time value loss recognised on the Iran receivable. 2020: -R174 million;
2019: R217 million.
Results overview
Exchange rates
The effects of COVID-19 brought about increased volatility in exchange rates. The weaker
average rand against most functional currencies had a positive overall translation impact on
rand-reported results, although the depreciation of the Iranian rial had a negative impact. The
average naira weakened 5,8% YoY against the US dollar and closed 8,9% weaker. The average
rand weakened by 14,3% YoY against the US dollar and closed 4,8% weaker, which impacted
negatively on the balance sheet especially due to US dollar-denominated debt.
Revenue and service revenue

Table 1: Group revenue by country
Constant Contribution
Actual Prior Reported currency to revenue
Rm Rm % change % change %
South Africa 45 473 45 447 0,1 0,1 25,4
Nigeria 57 980 46 696 24,2 15,0 32,3
SEAGHA 34 034 27 069 25,7 18,6 19,0
Ghana 17 245 13 820 24,8 16,7 9,6
Uganda 8 320 6 700 24,2 9,2 4,6
Other 8 469 6 549 29,3 34,3 4,7
WECA 27 627 21 821 26,6 8,7 15,4
Cameroon 6 686 5 389 24,1 6,0 3,7
Côte d’Ivoire 8 776 6 917 26,9 8,7 4,9
Other 12 165 9 515 27,9 10,2 6,8
MENA 10 423 8 977 16,1 26,8 5,8
Syria 2 295 2 986 (23,1) 29,0 1,3
Sudan 3 306 1 903 73,7 81,0 1,8
Other 4 822 4 088 18,0 4,6 2,7
Head offices,
GlobalConnect and
eliminations 899 545 0,5
Total 176 436 150 555 17,2 10,9 98,4
Hyperinflation 2 925 905 1,6
Total reported 179 361 151 460 18,4 10,9 100,0
Group total revenue increased by 10,9%* and service revenue increased by 11,9%*, supported
by growth across all our operations: MTN South Africa (up 1,6%), MTN Nigeria (up 14,6%*),
MTN Ghana (up 16,6%*), MTN Uganda (up 9,5%*), MTN Côte d’Ivoire (up 8,6%*) and MTN
Cameroon (up 6,5%*).
Group voice revenue grew by 4,8%* to R92,8 billion, data expanded by 31,0%* to R48,7 billion,
fintech grew by 23,9%* to R13,5 billion and digital was up by 27,1%* to R3,2 billion. Enterprise
revenues grew by 14,8%* to R16,8 billion and wholesale declined by 12,4%* to R4,2 billion.
Table 2: Group service revenue by country

Contribution
Constant to service
Actual Prior Reported currency revenue
South Africa 37 024 36 430 1,6 1,6 21,8
Nigeria 57 686 46 608 23,8 14,6 33,9
SEAGHA 33 702 26 754 26,0 18,7 19,8
Ghana 17 125 13 730 24,7 16,6 10,1
Uganda 8 267 6 639 24,5 9,5 4,9
Other 8 310 6 385 30,1 34,9 4,9
WECA 27 444 21 650 26,8 8,8 16,1
Cameroon 6 640 5 327 24,6 6,5 3,9
Côte d’Ivoire 8 729 6 880 26,9 8,6 5,1
Other 12 075 9 443 27,9 10,2 7,1
MENA 10 402 8 940 16,4 27,2 6,1
Syria 2 294 2 986 (23,2) 28,9 1,3
Sudan 3 295 1 898 73,6 80,8 1,9
Other 4 813 4 056 18,7 5,2 2,8
Head offices,
GlobalConnect and
eliminations 900 544 0,5
Total 167 158 140 926 18,6 11,9 98,3
Total reported 170 072 141 830 19,9 11,9 100,0
Results overview
Table 3: Group revenue analysis
Actual Prior Reported currency to revenue
Outgoing voice1 78 811 70 549 11,7 4,9 43,9
Incoming voice2 12 290 10 905 12,7 3,9 6,9
Data3 47 615 34 878 36,5 31,0 26,5
Digital4 3 133 2 402 30,4 27,1 1,7
Fintech5 13 563 10 125 34,0 23,9 7,6
SMS 3 959 3 853 2,8 (2,6) 2,2
Devices 9 278 9 629 (3,6) (4,0) 5,2
Wholesale6 4 204 4 714 (10,8) (12,4) 2,3
Other 3 583 3 500 2,4 (5,4) 2,0
Total 176 436 150 555 17,2 10,9 98,4
Total reported 179 361 151 460 18,4 10,9 100,0
1
Excludes international roaming and wholesale.
2
Includes local and international roaming and excludes wholesale.
3
Includes mobile and fixed access data and excludes roaming and wholesale.
4
Includes rich media services, content VAS, eCommerce and mobile advertising.
5
Includes Xtratime and mobile financial services.
6
Includes domestic wholesale voice, SMS and data, leased lines and BTS rentals.
Table 4: Group data revenue1

Constant
Actual Prior Reported currency
Rm Rm % change % change
South Africa 14 565 12 631 15,3 15,3
Nigeria 14 360 8 796 63,3 51,7
SEAGHA 8 380 6 143 36,4 29,3
Ghana 5 066 3 899 29,9 21,4
Uganda 1 505 1 035 45,4 27,8
Other 1 809 1 209 49,6 60,4
WECA 6 623 4 639 42,8 22,6
Cameroon 1 834 1 308 40,2 19,7
Côte d’Ivoire 1 645 1 080 52,3 30,1
Other 3 144 2 251 39,7 20,7
MENA 3 458 2 584 33,8 51,2
Syria 860 1 003 (14,3) 42,1
Sudan 1 240 575 115,7 126,3
Other 1 358 1 006 35,0 19,8
Head offices, GlobalConnect and
eliminations 229 85
Total 47 615 34 878 36,5 31,0
Hyperinflation 1 091 233
Total reported 48 706 35 111 38,7 31,0
Includes mobile and fixed access data and excludes roaming and wholesale.
1
Table 5: Group fintech revenue2
Constant
South Africa 1 052 1 021 3,0 3,0
Nigeria 1 931 1 407 37,2 27,3
SEAGHA 7 091 5 335 32,9 24,5
Ghana 3 928 2 795 40,5 31,3
Uganda 2 111 1 662 27,0 11,8
Other 1 052 878 19,8 28,9
WECA 3 340 2 207 51,3 29,4
Cameroon 883 524 68,5 43,6
Côte d’Ivoire 1 156 850 36,0 16,3
Other 1 301 833 56,2 33,7
MENA 146 129 13,2 50,5
Syria 91 85 7,1 89,6
Sudan 2 - 100.0 100.0
Other 53 44 20,5 8,2
eliminations 3 26
Total 13 563 10 125 34,0 23,9
Hyperinflation (23) 1
Total reported 13 540 10 126 33,7 23,9
Includes Xtratime and mobile financial services.
2
Results overview
Table 6: Group digital revenue3
Constant
South Africa 1 118 1 045 7,0 7,0
Nigeria 410 177 131,6 108,1
SEAGHA 686 648 5,9 1,2
Ghana 559 531 5,3 (1,4)
Uganda 24 19 26,3 9,1
Other 103 98 5,1 15,7
WECA 581 304 91,1 64,6
Cameroon 111 47 136,2 101,8
Côte d’Ivoire 316 191 65,4 42,3
Other 154 66 133,3 102,6
MENA 331 214 54,7 79,9
Syria 122 82 48,8 159,6
Sudan 117 69 69,6 77,3
Other 92 63 46,0 29,6
eliminations 7 14
Total 3 133 2 402 30,4 27,1
Hyperinflation 89 22
Total reported 3 222 2 424 32,9 27,1
Includes rich media services, content VAS, eCommerce and mobile advertising.
3
Costs
Table 7: Cost analysis
Constant
Actual Prior Reported currency %
Rm Rm % change % change of revenue
Handsets and other accessories 10 899 11 911 (8,5) (9,4) 6,1
Interconnect 9 867 9 218 7,0 (0,1) 5,5
Roaming 872 599 45,6 36,5 0,5
Commissions 13 919 11 033 26,2 14,1 7,8
Government and regulatory costs 6 274 4 976 26,1 12,7 3,5
VAS/Digital revenue share 2 884 3 099 (6,9) 12,7 1,6
Service provider discounts 1 321 1 540 (14,2) (14,4) 0,7
Network and IS maintenance 17 867 21 915 (18,5) (23,3) 10,0
Marketing 2 948 3 409 (13,5) (17,5) 1,6
Staff costs 12 616 10 562 19,4 13,5 7,0
Other opex 21 760 9 850 120,9 109,8 12,1
Total 101 227 88 112 14,9 9,1 56,4
Impairment loss on remeasurement
of disposal group 1 510 – 0,8
Loss on disposal of joint venture – – –
Total reported 104 278 88 741 17,5 9,1 58,1
Total costs increased by 9,1%*, stemming largely from higher costs related to the maintenance
of network sites although partially mitigated by lower handset costs, particularly at MTN SA.
There was upward pressure on costs in Nigeria due to the impact of naira depreciation on
lease rentals in the year. There was also an impact from bad debt provisions which increased
by 197%, mainly due to COVID-19 effects; refer to the commercial impacts section of the
COVID-19 discussion for further detail.
The Group expense efficiency programme, including enhanced oversight of expenditure such
as distribution and network costs, helped to contain overall cost increases below top line
growth to drive positive operating leverage.
Results overview
EBITDA
Table 8: Group EBITDA by country
Constant
Actual Prior Reported Currency
South Africa 17 742 16 972 4,5 4,5
Nigeria 29 506 25 149 17,3 8,6
SEAGHA 16 802 12 136 38,4 29,4
Ghana 9 097 7 014 29,7 21,2
Uganda 4 118 3 150 30,7 14,9
Other 3 587 1 972 81,9 (6,7)
WECA 8 620 6 081 41,8 21,1
Cameroon 2 149 1 635 31,4 12,2
Côte d’Ivoire 3 042 1 814 67,7 42,7
Other 3 429 2 632 30,3 (33,8)
MENA 3 352 2 836 18,2 37,2
Syria 574 1 173 (51,1) (16,8)
Sudan 1 428 677 110,9 123,8
Other 1 350 986 36,9 (69,8)
eliminations (699) (534)
CODM EBITDA 75 323 62 640 20,2 13,4
Gain on disposal/dilution of
investment in associates and joint
ventures 6 129 1 039
Gain on disposal of subsidiary – 249
Impairment loss on remeasurement
of disposal group (1 510) –
Tower sale profits – 19
CODM EBITDA before impairment
of goodwill and joint ventures 81 311 64 229 26,6 13,4
Group EBITDA increased by 26,6% on a reported basis and by 13,4%* in constant currency,
before once-off items. This was driven by strong performances across most operations, with
MTN SA up 4,5%, MTN Nigeria up 8,6%* and increases of 29,4%*, 21,1%* and 37,2%* in
SEAGHA, WECA and MENA respectively.
The healthy growth in EBITDA and strong service revenue growth resulted in an increase in
the Group EBITDA margin by 0,9pp* to 42,7%*.
Depreciation, amortisation and impairment of goodwill

Table 9: Group depreciation and amortisation
Depreciation Amortisation
Constant Constant
Actual Prior Reported currency Actual Prior Reported currency
Rm Rm % change % change Rm Rm % change % change
South Africa 8 417 8 197 2,7 2,7 1 062 1 123 (5,4) (5,4)
Nigeria 9 598 8 168 17,5 8,7 1 576 1 196 31,8 22,1
SEAGHA 4 115 3 709 10,9 4,2 779 497 56,7 52,1
Ghana 2 137 1 870 14,3 6,8 368 266 38,3 30,0
Uganda 1 138 1 049 8,5 (4,8) 327 128 155,5 124,0
Other 840 790 6,3 11,4 84 103 (18,4) 1,2
WECA 5 202 4 635 12,2 (3,6) 1 163 1 118 4,0 (10,5)
Cameroon 1 655 1 525 8,5 (7,3) 246 185 33,0 13,9
Côte d’Ivoire 1 636 1 444 13,3 (3,2) 546 499 9,4 (6,5)
Other 1 911 1 666 14,7 (0,6) 371 434 (14,5) (25,7)
MENA 1 263 1 692 (25,4) (12,0) 470 442 6,3 9,8
Syria 364 879 (58,6) (32,1) 58 121 (52,1) (20,5)
Sudan 202 177 14,1 17,4 24 25 (4,0) –
Other 697 636 9,6 (4,3) 388 296 31,1 17,2
Head offices,
GlobalConnect and
eliminations 503 403 552 680
Total 29 098 26 804 8,6 2,9 5 602 5 056 10,8 4,9
Hyperinflation 810 516 141 82
Total reported 29 908 27 320 9,5 2,9 5 743 5 138 11,8 4,9
The increase in the Group depreciation charge abated to 2,9%* as the trajectory continues to
normalise and stabilise following the elevated capex profile of the past few years. Amortisation
costs increased by 4,9%*.
As a result of our regular impairment testing, the Group partially impaired its goodwill in MTN
Liberia by R308 million, MTN Yemen by R525 million and MTN Guinea-Bissau by R165 million.
This has resulted primarily from increased risk premium and discount rate assumptions in the
valuation analysis of the assets. Furthermore, the impact of COVID-19 restrictions on
operational and valuation assumptions – offset by higher valuations of comparable
technology companies – resulted in net impairment of R67 million being recognised against
the Group’s investment in its joint venture, Middle East Internet Holdings S.A.R.L. (MEIH).
Results overview
Net finance costs

Table 10: Net finance cost
Constant
Actual Prior Reported currency %
Rm Rm % change % change of revenue
Net interest paid 13 393 12 495 7,2 3,1 7,5
Net forex losses 3 972 2 245 76,9 75,2 2,2
Total 17 365 14 740 17,8 13,8 9,7
Nigeria regulatory fine interest
unwind – 189 –
Hyperinflation 868 255 0,5
Total reported 18 233 15 184 20,1 13,8 10,2
Net finance costs increased by 13,8%* to R18,2 billion driven by increase in forex losses.
At 31 December 2020, we recognised net forex losses of R4,0 billion compared to net forex
losses of R2,2 billion in the prior period largely due to the weakening of the unofficial rate
being used in Sudan and South Sudan.
Share of results of associates and joint ventures after tax

We reported a positive contribution of R1,1 billion from associates and joint ventures,
compared to R705 million in December 2019. The 2020 contribution was largely attributable
to lower losses from the Digital Group, as Jumia was no longer equity accounted (from
12 April 2019), the recommencement of equity accounting for Mascom and the lower
unwinding of depreciation on previously hyperinflated assets in Iran.
Taxation
Table 11: Taxation
Actual Prior Reported currency to taxation
Normal tax 9 293 5 947 56,3 44,7 98,5
Deferred tax (1 469) (100) (15,6)
Foreign income and withholding
taxes 1 421 1 060 34,1 26,6 15,1
Total 9 245 6 907 33,8 24,5 97,9
Hyperinflation 194 1 2,1
Total reported 9 439 6 908 36,6 24,5 100,0
The reported group effective tax rate (GETR) was 32,5%; lower than the prior year’s rate of
38,9% mainly due to the non-taxable gain from the disposal of the tower companies. For the
year ended 31 December 2020, the Group’s reported taxation charge increased by 36,6% to
R9,4 billion.
Cash flow
Cash inflows generated from operations increased by 61,2% to R58,5 billion driven by the
solid operational performance across our markets. Key cash outflows included tax paid of
R8,4 billion, net interest paid of R12,3 billion, capex of R30,2 billion and dividends paid to
equity holders of R6,5 billion.
Results overview
Capital expenditure
Table 12: Capital expenditure
Actual Actual Prior Constant

IFRS 16 IAS 17 IAS 17 Reported currency
Rm Rm Rm % change % change
South Africa 7 542 7 209 7 562 (4,7) (4,7)
Nigeria 12 694 10 016 8 011 25,0 15,3
SEAGHA 6 063 5 052 4 979 1,5 (2,8)
Ghana 3 021 2 773 2 705 2,5 (4,9)
Uganda 1 328 1 032 1 042 (1,0) (6,7)
Other 1 714 1 247 1 232 1,2 5,9
WECA 3 418 3 255 2 799 16,3 (0,2)
Cameroon 950 900 509 76,8 50,6
Côte d’Ivoire 1 064 1 036 844 22,7 5,3
Other 1 404 1 319 1 446 (8,8) (21,5)
MENA 1 642 1 573 1 941 (19,0) 6,5
Syria 751 721 904 (20,2) 84,3
Sudan 495 473 430 10,0 19,1
Other 396 379 607 (37,6) (45,0)
eliminations 1 286 1 127 833
Total 32 645 28 232 26 125 8,1 6,9
Total reported 33 039 28 609 26 281 8,9 6,9
Financial position
Table 13: Net debt analysis
Net Net debt/ Net debt/

Cash and Interest- Inter- interest- (cash) (cash)
cash bearing company bearing December December
Rm equivalents* liabilities eliminations liabilities 2020 2019
South Africa 1 901 28 069 (28 069) – (1 901) (1 310)
Nigeria 17 230 19 107 – 19 107 1 877 7 796
SEAGHA 2 964 10 960 (5 894) 5 066 2 102 1 391
Ghana 1 702 2 079 – 2 079 377 114
Uganda 237 1 558 – 1 558 1 321 423
Other 1 025 7 323 (5 894) 1 429 404 854
WECA 2 448 12 350 (4 197) 8 153 5 705 6 657
Cameroon 490 1 978 (393) 1 585 1 095 1 593
Côte d’Ivoire 526 3 499 – 3 499 2 973 2 990
Other 1 432 6 873 (3 804) 3 069 1 637 2 074
MENA 1 384 3 734 (3 734) – (1 384) (1 927)
Syria – 616 (616) – – (444)
Sudan 451 3 118 (3 118) – (451) (338)
Other 933 – – – (933) (1 145)
Head offices,
GlobalConnect and
eliminations 20 640 63 922 – 63 922 43 282 55 313
Total reported 46 567 138 142 (41 894) 96 248 49 681 67 920
Iran 862 436 – 436 (426) (313)
* Includes restricted cash and current investments.
Group net debt reduced to R49.7 billion, from R67,9 billion in December 2019. This was
boosted by the proceeds from ARP sales as well as no interim dividend being paid.
Holdco borrowings reduced to R43,3 billion, from R55,3 billion in December 2019. The
reduction was mainly due to ARP proceeds and repayment of loans. The currency mix of
MTN’s debt at December 2020 was 48,0% US dollar/euro and 52,0% South African rand
(2019: 50% and 50% respectively), reflecting pleasing progress in our objective of optimizing
the mix of our Holdco debt. At the end of December 2020, our Holdco leverage was flat at
2,2x, impacted by the 4,8% weakening of the rand against the US dollar and offset by asset
sales.
We remain comfortably within our debt covenants, which are evaluated on a group
consolidated basis. Our Group net debt-to-EBITDA ratio stood at 0,8x at 31 December 2020
(2019: 1,2x) against our covenant of 2,5x. Our interest cover ratio was 7,7x (2019: 6,6x)
compared to the covenant of no less than 5,0x. Our Group cash balance at the end of
December 2020 was R46,6 billion.
Results overview
Operational review
MTN South Africa
■ Service revenue increased by 1,6%;
■ Data revenue increased by 15,3%;
■ Fintech revenue increased by 3,0%;
■ Digital revenue increased by 7,0%;
■ EBITDA increased by 4,5% to R17,7 billion;
■ EBITDA margin increased by 1,7pp to 39,0%; and
■ Capex of R7,5 billion on IFRS reported basis (R7,2 billion under IAS 17).
MTN SA delivered solid overall performance underpinned by strong commercial and

operational execution as well as an acceleration in digital adoption arising from the impacts
of the COVID-19 pandemic. This was despite a challenging macro and trading environment
and volatility in the national roaming business.
The 1,6% growth in service revenue was supported by the prepaid (up 2,9%) and total postpaid
(up 8,6%) businesses, which recovered well from the impact of regulation changes in 2019.
Overall service revenue was also boosted by a resilient performance in the broader consumer
business unit (CBU) and growth in the enterprise business unit (EBU). The core mobile
business grew service revenue by 4,6%.
MTN SA’s results were impacted by lower revenue in the wholesale business. This arose from
discontinuation of the roaming agreement with Telkom and the continuing effects of
accounting for Cell C revenue on a cash basis. Excluding the impact of national roaming (both
Cell C and Telkom), MTN SA would have recorded service revenue growth of 3,2%. Cell C has
remained current with payments on the agreed upon plan.
Total subscribers increased by 3,1 million to 32,0 million on stronger gross additions and
improved churn. The main driver was an increase in prepaid customers by 2,4 million, to a
base of 25,3 million – the highest level in about two years.
Postpaid subscriber numbers increased by 664 000 to 6,8 million, in a highly competitive
environment and limited by lockdown restrictions. It was encouraging to note that MTN SA
achieved positive net connections for the five months in a row to December 2020. The
postpaid subscriber base benefited from short-term university and college deals offered to
support students during the height of COVID-19 impacts.
Total data revenue grew by 15,3%, supported by a 79% rise in traffic and an increase of 1,5
million in active data subscribers to 15,7 million; the significant traffic growth was supported
by ICASA’s temporary assignment of high demand spectrum. In the year, the effective data
tariff reduced by 35%, due to an increased adoption of mobile broadband deals, student deals
and SME deals. MTN SA also implemented data price reductions in line with the agreement
reached with the Competition Commission (CompCom) and remains committed to ensuring
data affordability for its customers.
The consumer prepaid business continued to deliver pleasing and improving results, especially
through H2. Service revenue for the year increased by 2,9%, driven by solid commercial
execution of customer value management (CVM) initiatives and enhanced distribution. Service
revenue slowed from 5,7% in the third quarter to 2,5% in the fourth quarter, impacted mainly
by the release of loyalty provisions.
The consumer postpaid business performed strongly in a highly competitive trading

environment, generating solid service revenue growth of 5,3% in the year. This was aided by
subscriber growth, well-managed churn and the uptake of Data First offers (Mega Deals
campaign). The business has shown pleasing resilience in a challenging environment, however
with South Africa now in the midst of a second wave of COVID-19 infections, further
macroeconomic challenges and pressure on consumers may present some headwinds to the
business.
The enterprise business sustained its progress, achieving growth for the fifth consecutive
quarter with service revenue up 14,3% for the year. The business benefited from a record
number of customer additions, boosted by a surge in data deals as universities facilitated
‘learn from home’ initiatives and customers required ‘work from home’ solutions. Some of the
deals were on a short-term basis, leading to a slowdown in the fourth quarter because of
university churn.
Wholesale revenue declined by 16,4% because of the discontinuation of our roaming

agreement with Telkom and the effects of accounting for Cell C revenue on a cash basis. For
the year, we recognised R2,0 billion in roaming revenue from Cell C – this was up by 10% on
the revenue recognised in the previous year. R414 million of Cell C roaming revenue remained
unrecognised at December 2020. These payments are anticipated in 2021 upon successful
recapitalisation and will be recognised in 2021. MTN SA commenced phase two of the roaming
agreement with Cell C, effective 1 May 2020. The arrangement envisages a three-year
transition towards a full national roaming arrangement under which MTN will carry all of Cell
C’s network traffic.
MTN SA recorded a solid EBITDA margin of 39,0%, an improvement of 1,7pp, with EBITDA
increasing by 4.5% YoY. In addition to service revenue growth, the margin performance was
supported by cost efficiencies and channel optimisation, reductions in device volumes, as well
as reductions in device subsidies. Based on an assessment of the prevailing macroeconomic
environment, we recorded an additional R371 million provision for expected credit losses
under IFRS 9.
The fintech business in SA continued to scale, with 2,5 million registered users and 207 000
active users at year-end. This follows the launch of Mobile Money in South Africa in January
2020. The platform continues to grow transactions driven by innovative and relevant solutions.
MTN SA’s main focus is around distribution, as well as extending cash-in and cash-out points
through both formal and informal channels.
In the year, our commitment to transformation and improving access to mobile technology
across South Africa resulted in the company achieving the significant milestone of Level 1
BBBEE contributor status.
MTN SA continues to deliver and sustain the best network quality in SA on both customer and
independent measures. It has been endorsed as the best network by MyBroadband, Tutela,
Open Signal and P3 for more than three years in a row.
MTN SA launched 5G in June 2020 being the first in the MTN Group. We have over 150 sites
across several spectrum bands in Johannesburg, Cape Town, Pretoria, Durban, Bloemfontein,
Centurion, Port Elizabeth and a few towns, with ambitious plans to scale up to more than 1000
sites upon allocation of 3500MHz high demand spectrum.
Results overview
MTN Nigeria
■ Service revenue increased by 14,6%*;
■ Data revenue increased by 51,7%*;
■ Fintech revenue increased by 27,3%*;
■ Digital revenue increased by 108,1%*;
■ EBITDA grew by 8,6 %* to R29,5 billion*;
■ EBITDA margin decreased by 3,0 pp* to 50,9%*; and
■ Capex investment of R12,7 billion on a reported basis (R10,0 billion under IAS 17).
MTN Nigeria delivered considerable growth in its base, connecting 12,2 million new
subscribers to its network, which helped to grow its service revenue by 14,6%*. The growth in
our subscriber base provided support for voice revenue, which accounted for 67,0%* of
service revenue and rose by 5,6%*, with an acceleration in growth to 8,9% YoY in H2. This was
enabled by our expanded customer acquisition touchpoints, rural telephony initiatives and
revamped acquisition offers. The suspension of new SIM registration in mid-December did not
have a significant impact on voice revenue as we saw an increased level of activity from the
existing base.
Data revenue rose by 51,7%* for the year, maintaining the positive momentum from the
effects of COVID-19 lockdowns. The performance in data was enabled by a combination of
increased subscribers, usage and ultimately traffic, which was in turn supported by increased
network capacity and 4G penetration. Data traffic rose by 126,5% and average usage by
64,0%. MTN Nigeria added approximately 8,2 million new smartphones to the network,
bringing smartphone penetration to 45,9% of our base, up from 41,9% in 2019.
Fintech revenue rose by 27,3%* boosted by airtime lending service, MTN Xtratime. MTN
Nigeria expanded its MoMo agent network with the addition of more than 280,000 registered
agents during the year. This achievement was aided by the conversion of traditional airtime
agents in line with the ‘one distribution’ strategy. Fintech subscribers increased more than
eight-fold to 4,7 million, driving higher transaction volume of approximately 51,5 million and
core fintech revenue growth of 28,0%.
The uptake of digital services continued to gain traction with the revamp of MTN Nigeria’s
portfolio of digital products and services, improved customer journey and increase in the
active user base. As a result, digital revenue recorded a growth of 108,1%*. Active users
increased to 2,8 million, from 1,6 million in H1 when the definition was revised (to capture only
unique paid subscriptions). This was driven mainly by subscriptions for instant messaging
platform, ayoba, which rose by 120,9% to 1,4 million.
Enterprise revenue increased by 0,8%*, supported by growth in revenue from devices and
fixed connectivity. The economic impact of the COVID-19 lockdown, particularly in Q2, led to
a decline in the uptake of products and services by the businesses supported by MTN Nigeria.
The recovery in H2 was, however, encouraging as restrictions eased and economic activity
began to improve. A further uplift in enterprise revenue is anticipated once the USSD pricing
dispute is resolved and outstanding fees are recovered from the banks.
During the period, MTN Nigeria expanded the scope of its service agreement with IHS Holding
Limited (IHS) and amended the currency conversion provision for tower services. The changes
in the service agreement substantially improve MTN Nigeria’s terms and conditions for future
network expansion. The contract adjustment included the movement of the reference rate for
conversion to Naira from the CBN’s official rate to the NAFEX. MTN Nigeria also reviewed the
treatment of non-recoverable VAT on lease payments to account for it as an expense over the
lease period. These, together with the effects of Naira depreciation, put upward pressure on
lease rental costs in the period.
In addition to this, the combined effect of the 2.5% increase in value-added tax (VAT) and
COVID-19-related costs led to a 29.2% increase in operating expenses with knock-on effect
on EBITDA. This resulted in the EBITDA margin softening by 3,0pp* to 50,9%* with EBITDA
rising by 8,6%*.
Southern and East Africa and Ghana (SEAGHA)

■ Fintech revenue increased by 24,5%*; and
■ Digital revenue increased by 1,2%*
MTN’s SEAGHA region delivered a healthy performance despite a substantial downturn in

economic activity resulting from COVID-19 containment measures. Total subscribers
increased by 8,8 million in the year to 57,3 million.
MTN Ghana was once again a key driver of the strong performance in SEAGHA, with service
revenue growth remaining in the double-digits (up 16,6%*) driven by improved performances
across most revenue curves. Voice revenue (up 8,4%*) was supported by an increase in the
number of active subscribers, as well as various CVM initiatives, which helped to manage
churn and improve usage. The continued robust growth in data revenue (up 21,4%*) was
supported by higher active data users and smartphones on the network. The increased usage
was partly due to shifts in consumer behaviour amid the COVID-19 pandemic.
The growth in MoMo revenue (up 31,3%*) benefited from various promotions in the year,
increased person-to-person (P2P) transactional activity and broader penetration of more
advanced services such as retail merchant payments and international remittances. MTN
Ghana’s EBITDA margin improvement of 2,0pp* to 52,8%* resulted from ongoing cost
initiatives and distribution efficiencies.
MTN Uganda increased service revenue by 9,5%*, with positive growth delivered in most of its
revenue lines notably, voice (up 3,9%*), data (up 27,8%*) and fintech (up 11,8%*). MTN
Uganda’s performance was underpinned by increases in the user base and usage, helped by
CVM initiatives. EBITDA margin expanded by 2,4pp* to 49,5%*, on higher revenue and effective
implementation of cost efficiencies.
The rest of the SEAGHA portfolio also delivered strong results, with MTN Rwanda and MTN
Zambia growing at a double-digit rate. Data growth was strong across all opcos, benefiting
from increased traffic resulting in part from the effects of COVID-19. Overall, the SEAGHA
portfolio excluding MTN Ghana delivered service revenue growth of 20,9%* for the year, and
24,8%* YoY in Q4. Service revenue continued to grow ahead of costs in most markets, driving
positive operating leverage. Moving forward, disclosure of the region will change to reflect the
new regional operating structure announced during 2020.
Results overview
West and Central Africa (WECA)

■ Digital revenue increased by 64,6%*
The WECA region delivered a solid result with growth continuing to significantly outstrip
inflation. This was supported by strong double-digit base growth despite the COVID-19
restrictions as well as improved data and fintech activities. Execution of the expense efficiency
programme resulted in most WECA opcos improving their EBITDA margins. The aggregate
EBITDA margin of WECA increased by 3,2pp* for the year to 31,2%*. Total subscribers
increased by 3,0 million in the year to 39,2 million.
MTN Côte d’Ivoire recorded an increase in service revenue of 8,6%*, supported by net
additions of 0,8 million following positive net additions for the eighth month in a row to
December. This result was also supported by strong revenue growth in data (up 30,1%*) and
fintech (up 16,3%*). The EBITDA margin widened by 8,3pp* to 34,7%*.
MTN Cameroon delivered service revenue growth of 6,5%*, with strong growth in data (up
19,7%*), fintech (up 43,6%*) and digital (up 101,8%*). The performance was supported by
gains in market share in a difficult operating environment and ongoing conflict in large parts
of the country. The EBITDA margin for MTN Cameroon improved by 1,7pp* to 32,1%*.
Overall, excluding MTN Cameroon and MTN Côte d’Ivoire, the WECA markets grew their
service revenue by an aggregate of 10,2%*, and 13,3%* YoY in Q4.
Middle East and North Africa (MENA) (excluding Iran)

■ Digital revenue increased by 79,9%*.
Despite persistent geopolitical challenges, the operations within the MENA portfolio delivered
a strong performance with a firm EBITDA margin. This was supported by solid growth in data
revenue with a 16,3% YoY increase in active data subscribers (excluding MTN Irancell). The
total number of subscribers (excluding MTN Irancell) was 26,0 million.
MTN Syria grew service revenue by 28,9%*, driven by growth in voice (up 12,1%*) and data
(up 42,1%*). The EBITDA margin declined by 13,8pp* to 25,0%* as a result of a material
devaluation in the local currency, which put pressure on foreign-denominated operational
expenditure.
MTN Sudan increased service revenue by 80,8%*, underpinned by growth in voice (up 64,7%*)
and data (up 126,3%*) on the back of increase in data bundle prices, active data subscribers
and usage. The EBITDA margin expanded by 8,3pp* to 43,2%*, driven by strong growth in
revenue.
Associates, joint ventures and investments

Telecoms operations
MTN Irancell delivered a strong set of results amid ongoing challenges including US sanctions
and re-entering classification as a hyperinflationary economy, the depreciation of the
currency and the high rate of inflation. Service revenue grew by 36,4%*, with voice revenue up
by 14,3%* and data revenue up by 56,9%*.
MTN Irancell’s EBITDA margin decreased by 0,3pp* to 37,2%*. Invested capex was R3,6 billion
under IAS 17. The value of the Irancell loan and receivable as at 31 December 2020 was
R2,8 billion.
E-commerce investments
Although Iran Internet Group (IIG) was impacted by COVID-19, ride-hailing app Snapp
remained the market leader, ranking among the top ride-hailing apps globally with 464 million
rides in 2020. Snapp Box is the leading last-mile delivery network in the country with over 100
000 orders each day. Food delivery app Snappfood grew 66% YoY; it leads the market with
over 10 000 partner restaurants. Snapp market grew 181% YoY. It is the leading supermarket
delivery app in the country.
Within Middle East Internet Holding (MEIH), ride-hailing service Jeeny and cleaning service
app Helpling were both impacted by COVID-19 but then began to recover strongly. In 2020,
Jeeny more than doubled its market share in Saudi Arabia.
These e-commerce holdings, while important investments, are not viewed as long-term
strategic holdings for the Group and form part of the ARP.
Investments in tower and infrastructure companies

At 31 December 2020, the fair value of our 29% investment in IHS was recognised at
R27,2 billion.
Prospects and guidance

Positioning the business for accelerated growth and relevance to 2025
COVID-19 brought about unprecedented volatility and uncertainty globally and across our
markets placing enormous pressure on economies and the lives of our staff, customers and
other stakeholders. The pandemic also brought into sharper focus the impact of the digital
divide, especially in our markets, and the need for accelerated digitalisation.
FY 2020 demonstrated the resilience and agility of the MTN business model, as well as its
importance and relevance to the shifting global operating environment. Our revised strategy,
Ambition 2025, is geared to accelerating the Group’s de-risking and growth into platforms
that will provide digital solutions for the markets we serve. At the heart of our ambition is to
continue leading the drive for digital and financial inclusion in Africa while aligning to its
nation-state development agenda.
MTN has built Africa’s leading scale and connectivity business, underpinned by a large
connected and registered customer base as well as an enhanced risk framework and
disciplined capital allocation. This provides the cornerstone upon which our ambition rests; to
accelerate the Group’s progression into a platform business led by fintech and expanding into
other digital, enterprise and network services.
Results overview
Our target over the next five years is to grow our total subscriber base to 300 million, our
mobile data users to 200 million data subscribers and our home broadband users to 10
million. This objective forms the connectivity foundation upon which we aim to leverage our
platform ambition, in terms of which we aim to scale our MoMo and ayoba user bases to
100 million.
In the nearer-term, we remain focused on sustaining the turnaround achieved in MTN SA,
particularly the pleasing traction achieved in its core consumer and enterprise businesses.
MTN Nigeria will continue to prioritise investment in its network to accommodate the rapidly
growing demand for data. More broadly, we will continue to drive operational execution to
maintain the good growth achieved across our markets.
The acceleration of our portfolio transformation and Holdco deleveraging are key priorities.
While the disruption caused by COVID-19 hampered execution in 2020, we are pleased with
some of the progress we were able to make in our ARP. Much of the groundwork has been
done to advance further planned asset realisations during the course of the coming year.
We will continue to invest in the capacity and resilience of our networks as well as scaling our
platforms to drive accelerated growth in our business. Our guidance for capex in 2021 is
R29,1 billion, which is a slight increase of 1,8% on our 2020 capex.
Medium-term guidance
Although there remains some uncertainty around the effects of COVID-19, we are committed
to delivering on our medium-term (three to five years) guidance. In the context of our revised
strategy, Ambition 2025, we have amended the guidance framework to align with our refreshed
strategic priorities.
■ Group service revenue: low to mid-teens growth;
– South Africa service revenue: mid-single-digit growth
– Nigeria service revenue: mid-teens growth
– Accelerate fintech: target a greater than 20% service revenue contribution
■ Holdco leverage of not higher than 1,5x;
■ ARP proceeds of at least R25 billion; and
■ ROE of greater than 20%.
Senior management and Board changes

Senior management changes
During the year, we announced some changes to the Executive Committee (Exco) and an
amended regional operating structure to support the execution of our strategy and realising
our ambition:
■ Ralph Mupita was appointed President and GCEO, effective 1 September 2020;
■ Sugen Perumal was appointed as Acting GCFO, effective 1 September 2020;
■ Tsholofelo Molefe was appointed GCFO. She will take up the role from 1 April , and will join
the Board on the same day;
■ Ebenezer Asante became VP for WECA effective from 1 January 2021;
■ Yolanda Cuba was appointed VP for SEA, effective 1 January 2021;
■ Serigne Dioum assumed the role of Group Chief Digital and Fintech Officer, joining Exco on
1 January 2021;
■ Kholekile Ndamase was appointed Group Chief M&A and Business Development Officer,
joining Exco on 1 January 2021;
■ Karl Toriola became MTN Nigeria CEO effective 1 March 2021; and
■ Ferdi Moolman assumed the new role of MTN Group Chief Risk Officer on 1 March 2021.
Effective 1 January 2021, MTN Ghana became part of the Group’s West and Central Africa
(WECA) region. From that date, MTN’s Southern and East Africa and Ghana (SEAGHA) region
became known as the Southern and East Africa (SEA) region.
Board changes
We announced the following changes to the board in the year:
■ Christine Ramon stepped down as a director on 30 September 2020;
■ Sindi Mabaso-Koyana was appointed as an independent non-executive director, effective
1 September 2020, and assumed the role of Chairman of the Audit Committee from
1 October;
■ Rob Shuter stepped down as GCEO and an executive director effective 1 September 2020;
■ Nosipho Molope was appointed as an independent non-executive director, effective
1 April 2021; and
■ Noluthando Gosa was appointed as an independent non-executive director, effective
1 April 2021.
We thank all departing directors for their valuable contribution over many years.
For and on behalf of the board
MH Jonas RT Mupita
Group Chairman Group President and CEO
09 March 2021
Fairland
Date of release 10 March 2021
Lead sponsor
JP Morgan Equities South Africa Proprietary Limited
Joint sponsor
Tamela Holdings Proprietary Limited
Results overview
Appendix
Definitions:
■ Service revenue excludes device and SIM card revenue;
■ Data revenue is mobile and fixed access data and excludes roaming and wholesale;
■ Fintech includes Mobile Money (MoMo), insurance, airtime lending and e-commerce;
■ Mobile Money users are 30-day active users;
■ CODM EBITDA (referred to as EBITDA) is defined as earnings before finance income and
finance costs (which includes gains or losses on foreign exchange transactions), tax,
depreciation and amortisation, and is also presented before recognising the following
items: impairment of goodwill and joint ventures; net monetary gain resulting from the
application of hyperinflation; share of results of associates and joint ventures after tax;
gain on disposal of tower associates; impairment loss on remeasurement of disposal
Groups; and gain on disposal/dilution of investment in associates and joint ventures (ATC
Ghana and ATC Uganda, Travelstart and Jumia) and loss on disposal of investment in
Content Connect Africa. EBITDA including these once-off items increased by 26,6%;
■ ROE is calculated based on reported Group HEPS of 749 cps after adjusting for non-
operational impacts of 128 cps. Equity is also adjusted for non-operational items such as
hyperinflation;
■ All financial numbers are year on year (YoY) unless otherwise stated;
■ All subscriber numbers are compared to the end of December 2019 unless otherwise
stated;
■ Holdco leverage = Holdco net debt (including GlobalConnect) / SA EBITDA + cash
upstreaming;
■ ARPU: average revenue per user;
■ SME: small and medium-sized enterprises;
■ All financial numbers are year on year (YoY) unless otherwise stated;
■ All subscriber numbers are compared to the end of December 2019 unless otherwise
stated.
Notes:
Results overview
Audited summary group financial statements
The audited summary group financial statements have been

independently audited by the Group’s external auditors. The
audited summary group financial statements have been prepared
by the MTN finance staff under the guidance of the acting Group
Finance Operations Executive, BG Samwell, BCom (Hons), MCom,
CA(SA), and were supervised by the acting Group Chief Financial
Officer, S Perumal, CA(SA).
The audited summary group financial statements were made
available on 10 March 2021.

39 MTN Group Limited Audited summary group financial statements for the year ended 31 December 2020
Independent auditors’ report on the summary
consolidated financial statements
TO THE SHAREHOLDERS OF MTN GROUP LIMITED
OPINION
The audited summary consolidated financial statements of MTN Group Limited, contained in
the accompanying preliminary report, which comprise the summary group statement of
financial position as at 31 December 2020, the summary group income statement and the
summary group statements of comprehensive income, changes in equity and cash flows for
the year then ended, and related notes, are derived from the audited consolidated financial
statements of MTN Group Limited for the year ended 31 December 2020.
In our opinion, the accompanying summary consolidated financial statements are consistent,
in all material respects, with the audited consolidated financial statements, in accordance with
the requirements of the JSE Limited Listings Requirements for preliminary reports, as set out
in note 3 to the summary consolidated financial statements, and the requirements of the
Companies Act of South Africa as applicable to summary financial statements.
SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

The summary consolidated financial statements do not contain all the disclosures required by
International Financial Reporting Standards and the requirements of the Companies Act of
South Africa as applicable to annual financial statements. Reading the summary consolidated
financial statements and the auditor’s report thereon, therefore, is not a substitute for reading
the audited consolidated financial statements and the auditor’s report thereon.
THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND OUR REPORT THEREON

We expressed an unmodified audit opinion on the audited consolidated financial statements in
our report dated 9 March 2021. That report also includes communication of key audit matters.
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period.
DIRECTORS’ RESPONSIBILITY FOR THE SUMMARY CONSOLIDATED FINANCIAL

STATEMENTS
The directors are responsible for the preparation of the summary consolidated financial
statements in accordance with the requirements of the JSE Limited Listings Requirements for
preliminary reports, set out in note 3 to the summary consolidated financial statements, and
the requirements of the Companies Act of South Africa as applicable to summary financial
statements.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on whether the summary consolidated financial
statements are consistent, in all material respects, with the audited consolidated financial
statements based on our procedures, which were conducted in accordance with International
Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial
Statements.
PricewaterhouseCoopers Inc. SizweNtsalubaGobodo Grant Thornton Inc.

Director: SN Madikane Director: DH Manana
Registered Auditor Registered Auditor
4 Lisbon Lane 20 Morris Street East
Waterfall City Woodmead
Jukskei View 2191
2090
9 March 2021 9 March 2021
Results overview
Summary group income statement

2019
2020 Restated1
Note Rm Rm
Revenue 8 179 361 151 460
Other income 99 471
Direct network and technology operating costs (28 208) (22 121)
Costs of handsets and other accessories (11 093) (11 929)
Interconnect and roaming costs (10 992) (9 897)
Staff costs (12 741) (10 597)
Selling, distribution and marketing expenses (21 158) (18 574)
Government and regulatory costs (6 823) (5 695)
Impairment and write-down of trade receivables and
contract assets (2 169) (729)
Other operating expenses (9 584) (9 199)
Depreciation of property, plant and equipment (22 704) (21 492)
Depreciation of right-of-use assets (7 204) (5 828)
Amortisation of intangible assets (5 743) (5 138)
Impairment of goodwill and investment in joint venture 9 (1 065) (342)
Gain on disposal/dilution of investment in joint ventures
and associates2 6 129 1 039
Impairment loss on remeasurement of non-current
assets held for sale (1 510) –
Operating profit 44 595 31 429
Net finance costs 10 (18 233) (15 184)
Net monetary gain 1 582 787
Share of results of associates and joint ventures after tax 11 1 142 705
Profit before tax 29 086 17 737
Income tax expense (9 439) (6 908)
Profit after tax 19 647 10 829
Attributable to:
Equity holders of the company 17 022 9 100
Non-controlling interests 2 625 1 729
19 647 10 829
Basic earnings per share (cents) 12 946 506
Diluted earnings per share (cents) 12 936 498
Restated for change in accounting policy, refer to note 23 for details of restatements.
1
Gain on disposal/dilution of investment in joint ventures and associates was included in other income in 2019 and
2
has been disaggregated in 2020 and comparative numbers have been re-presented accordingly.
MTN Group Limited Audited summary group financial statements for the year ended 31 December 2020 41
Summary group statement of comprehensive
income
2019
2020 Restated1
Note Rm Rm
Other comprehensive income after tax
Items that may be and/or have been reclassified to
profit or loss: 5 243 (3 862)
Net investment hedges 18 (878) 515
Foreign exchange movement on hedging instruments (1 219) 715
Deferred and current tax 341 (200)
Exchange differences on translating foreign
operations including the effect of hyperinflation2 18,19 6 121 (4 377)
Gains/(losses) arising during the year 18 4 453 (4 415)
Reclassification of foreign currency translation
differences on loss of significant influence 1 668 38
Items that will not be reclassified to profit or loss:

Equity investments at fair value through other
comprehensive income2,3 (622) 2 759
(Losses)/gains arising during the year 13 (622) 2 759
Other comprehensive income for the year 4 621 (1 103)

Attributable to:
Equity holders of the company 3 955 (878)
Non-controlling interests 666 (225)
Total comprehensive income for the year 24 268 9 726

Attributable to:
Equity holders of the company 20 977 8 222
24 268 9 726
1
2
This component of other comprehensive income (OCI) does not attract any tax.
3
Equity investments at fair value through other comprehensive income relates mainly to the Group’s investment in
IHS Holding Limited (IHS Group) and Jumia Technologies AG (Jumia) (note 13).
Results overview
Summary group statement of

financial position
as at 31 December 2020
2020 2019
Note Rm Rm
Non-current assets 235 166 226 029
Property, plant and equipment 100 576 98 312
Intangible assets and goodwill 39 069 36 866
Right-of-use assets 46 156 44 984
Investments 13 28 518 28 555
Investment in associates and joint ventures 10 306 8 764
Deferred tax and other non-current assets 10 541 8 548
Current assets 109 760 75 444
Trade and other receivables 29 826 27 256
Other current assets 14 377 9 092
Restricted cash 6 888 2 042
Mobile Money deposits 27 679 15 315
Cash and cash equivalents 30 990 21 739
Non-current assets held for sale1 21 4 016 838
Total assets 348 942 302 311
Total equity 106 225 86 100
Attributable to equity holders of the company 102 873 83 897
Non-current liabilities 133 334 132 372
Interest-bearing liabilities 15 78 457 78 457
Lease liabilities 43 753 42 271
Deferred tax and other non-current liabilities 11 124 11 644
Current liabilities 108 299 83 839
Interest-bearing liabilities 15 17 792 15 823
Trade and other payables 41 880 36 630
Mobile Money payables 28 008 15 315
Other current and tax liabilities 14 891 12 015
Liabilities directly associated with non-current assets
held for sale1 21 1 084 –
Total equity and liabilities 348 942 302 311
1
n 25 February 2021, subsequent to the end of the reporting period, MTN Syria was placed under judicial
O
guardianship. Please refer to note 21 for further details in relation to this development.
Summary group statement of changes
in equity
2019
2020 Restated1
Rm Rm
Opening balance at 1 January 83 897 84 799
Opening reserve adjustment for impact of hyperinflation 3 677 –
Total comprehensive income 20 977 8 222
Other comprehensive income after tax 3 955 (878)
Transactions with owners of the company
Share-based payment transactions 695 331
Dividends declared (6 393) (9 362)
Gain on disposal of shares in MTN Zambia 180 –
Other movements (160) (93)
Attributable to equity holders of the company 102 873 83 897

Closing balance 106 225 86 100
Dividends declared during the year (cents per share) 355 520
Dividends declared after the year (cents per share) – 355
1
Restated for changes in accounting policies, refer to note 23 for details of restatements.
Results overview
Summary group statement of

cash flows
2020 2021
Note Rm Rm
Net cash generated from operating activities 58 513 36 289
Cash generated from operations 78 580 55 197
Interest received 1 305 1 196
Interest paid (13 576) (13 014)
Dividends received from associates and joint ventures 608 550
Income tax paid (8 404) (7 640)
Net cash used in investing activities (33 512) (24 542)
Acquisition of property, plant and equipment (23 502) (23 416)
Acquisition of intangible assets (6 678) (3 624)
Proceeds from sale of investment in associates 19 8 962 –
Increase in non-current investment and joint venture (260) (71)
Proceeds from sale of investment in Jumia 2 315 –
Proceeds from sale of subsidiaries, net of cash disposed - 1 152
Decrease in loan receivables 25 942
(Purchase)/realisation of bonds, treasury bills and
foreign deposits (8 116) 396
Net increase in restricted cash (6 285) (12)
Movement in other investing activities 27 91
Net cash used in financing activities (13 705) (4 340)
Proceeds from borrowings 16 22 551 35 013
Repayment of borrowings 16 (22 655) (23 662)
Repayment of lease liabilities (4 998) (3 417)
Dividends paid to equity holders of the company (6 462) (9 352)
Dividends paid to non-controlling interests (2 093) (1 460)
Redemption of MTN Nigeria preference shares - (1 243)
Other financing activities (48) (219)
Net increase in cash and cash equivalents 11 296 7 407

Net cash and cash equivalents at beginning of the year 21 607 14 967
Exchange losses on cash and cash equivalents (2 179) (1 300)
Net monetary gain/(loss) on cash and cash equivalents 36 (82)
(Increase)/decrease in cash classified as held for sale 21 (124) 615
Net cash and cash equivalents at end of the year 30 636 21 607
Notes to the group summary financial
statements
1. INDEPENDENT AUDIT
The summary group financial statements have been derived from the audited group
financial statements. The directors of the company take full responsibility for the
preparation of the summary group financial statements and that the financial
information has been correctly derived and are consistent in all material respects with
the underlying audited group financial statements. The summary group financial
statements for the year ended 31 December 2020 have been audited by our joint
auditors PricewaterhouseCoopers Inc. and SizweNtsalubaGobodo Grant Thornton Inc.,
who have expressed an unmodified opinion thereon. The auditors also expressed an
unmodified opinion on the group financial statements from which the summary group
financial statements were derived. A copy of the auditors’ report on the group financial
statements is available for inspection at the company’s registered office or can be
downloaded from the company’s website: www.mtn.com/investors/financial-reporting/
annual-results, together with the financial statements identified in the auditors’ report.
2. GENERAL INFORMATION
MTN Group Limited (the company) carries on the business of investing in the
telecommunications industry through its subsidiary companies, joint ventures,
associates and related investments.
3. BASIS OF PREPARATION
The summary group financial statements are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for preliminary financial
statements and the requirements of the Companies Act, 71 of 2008 applicable to
summary financial statements. The summary financial statements were prepared in
accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (IFRS) and the South
African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as
issued by the Accounting Practices Committee (APC) and the Financial
Pronouncements as issued by the Financial Reporting Standard Council (FRSC), and
to also, as a minimum, contain the information required by IAS 34 Interim Financial
Reporting.
The accounting policies applied in the preparation of the group financial statements
from which the summary group financial statements were derived, are in terms of IFRS
and are consistent with those accounting policies applied in the preparation of the
previous group financial statements, unless otherwise stated.
The summary group financial statements should be read in conjunction with the group
financial statements for the year ended 31 December 2020, which have been prepared
in accordance with IFRS. A copy of the full set of the audited group financial statements
is available for inspection from the Company Secretary at the registered office of the
company or can be downloaded from the company’s website: www.mtn.com/investors/
financial-reporting/annual-results.
4. PRINCIPAL ACCOUNTING POLICIES
The accounting policies applied in the preparation of the group financial statements
from which the summary group financial statements are derived, are in terms of IFRS
and are consistent with those accounting policies applied in the preparation of the
previous consolidated Annual Financial Statements except as described below.
The Group changed its accounting policy with regards to the method applied in
determining the amount of foreign currency translation reserves to be reclassified to
profit or loss on disposal of a foreign operation during the current financial year. Refer
to note 23 for details.
A number of amendments to accounting pronouncements are effective from 1 January
2020, but they do not have a material effect on the Group’s summary financial
statements.
Results overview

statements continued
5. IMPACT OF THE COVID-19 PANDEMIC

On 11 March 2020, the World Health Organisation officially declared the novel
coronavirus, COVID-19, a pandemic. Governments across the world have taken
extreme measures to curb the spread of the virus by introducing various forms of
social distancing, lockdown regimes and forms of monetary and fiscal stimulus. These
measures impacted the financial position of individuals, small and medium-sized
businesses as well as corporates to varying degrees, thereby significantly impacting
economies across the Group’s footprint.
The effects of COVID-19, and other macro developments, have also increased financial
risks such as exchange rate volatility, economic growth and capital flows in the Group’s
markets. During the past year, credit ratings agencies have downgraded sovereign
credit ratings in two of the Group’s largest markets, South Africa and Nigeria. The
Group continues to monitor these developments, assess the implications and manage
its responses in order to mitigate the related risks.
Amid the nearer-term risks and uncertainties of the impact of COVID-19 on markets,
the Group remains focused on preservation of cash and maintaining a healthy liquidity
position and strengthening its operational and financial position. In this regard it has
implemented cost control measures, focusing on critical expenses and enhanced
oversight of expenditure that support margin management and liquidity across the
business.
With the effects of COVID-19 being felt around the globe, there is also an impact on the
telecommunications sector. The restrictions placed on movement resulted in people
spending more time at home for work and leisure which resulted in the use of higher
amounts of data. This has been the impact in all our regions whereby revenue has
increased in local currency.
For the year ended 31 December 2020, there has been direct and indirect financial
effects caused by the COVID-19 pandemic. We highlight the following relevant
disclosures provided in the notes to the Annual Financial Statements which include the
effects of the pandemic:
● During the past year, the Group has continued to provide telecommunication
services across its footprint as an essential service. The Group’s various revenue
streams per operation are disclosed in the operating segments (refer to note 8).
There has been revenue growth in network services resulting from strong growth in
data revenue, digital and fintech services and interconnect. Conversely, revenue
from sale of devices and roaming services have slowed due to the economic strain
placed on our customers and the lockdown regimes. The resilience of the national
networks, the headroom available on the networks and the allocation of temporary
additional spectrum enabled the Group to meet the surge in data volume driven by
work from home protocols and social distancing.
● The Group’s capital expenditure (capex) focus is to ensure the resilience and
capacity of its networks, which have been maintained despite disruptions in the
supply chain and challenges in rolling out coverage under lockdown rules and the
Group’s emphasis on liquidity for the period. As lockdown regulations lifted in our
markets towards the end of the year, the Group was able to resume a more regular
rollout of network investment as restrictions on movement and logistical bottlenecks
have eased. This enabled increased headroom in our networks, notably in South
Africa and Nigeria among our larger markets.
5. IMPACT OF THE COVID-19 PANDEMIC continued

● Liquidity management remained a focus during this period. As at 31 December
2020 the Group had access to undrawn borrowings of R33,3 billion (December
2019: R33,8 billion) as disclosed in note 13.4. Holdco1 cash balances including
restricted cash and current investments was R20,6 billion as at 31 December 2020.
Year to date we have successfully fast-tracked and closed R18,2 billion in funding
to mitigate refinance risk around upcoming maturities. The Group also concluded
the sale of its Ghana InterCo and Uganda InterCo tower investments for a
consideration of R8,8 billion and continued to pay its final dividend in respect of its
2019 financial year in April 2020.
● The financial impact of the crisis has put pressure on post-paid customers and the
Group’s enterprise business unit. The following table reflects the movements for the
period related to credit risk:
31 December 31 December
2020 2019 Movement
Trade receivables and contract
assets gross carrying amount
– MTN Group R22 666 million R21 081 million 8%
Expected credit loss allowance
– MTN Group R3 637 million R2 709 million 34%
Average ECL/Impairment ratio
– MTN Group 16,0% 12,9% 3,1
Impairment and write down of
trade receivables and contract
assets – MTN Group R2 169 million R729,1 million 197%
Impairment and write down
of trade receivables
– MTN Nigeria R209 million R9,7 million 2 055%
Impairment and write down of
trade receivables and contract
assets – MTN South Africa R1 869,3 million R629,7 million 197%
● he Group’s exposure and management of credit risk relating to its customers as

T
well as its exposure relating to cash and cash equivalents and Mobile Money (MoMo)
deposits placed with banks are provided in note 13. The Group has assessed the
potential impairment on cash balances and MoMo deposits due to the negative
impact of the pandemic on financial institutions. The nature of the bank balances
and MoMo deposits are largely short term in nature comprising mainly of current
accounts and call deposits. Given the significant actions taken by central banks to
improve liquidity through monetary and fiscal interventions, the Group’s expected
credit losses (ECLs) on cash balances and MoMo deposits remained immaterial.
● Significant movements in currencies expose the Group to foreign currency gains
and losses and also impact the Group’s translation of its results into its rand
presentation currency. The Group recognised net foreign exchange losses of
R4,5 billion (December 2019: R2,4 billion loss). In addition, the Group recognised a
foreign currency translation gain in the statement of comprehensive income on
converting the net assets of its foreign operations. The Group’s foreign exchange
gains and losses recognised in the income statement are provided in note 10 and
the income statement sensitivity to exchange rates is provided in note 13.5.2.
Exchange rates used in the conversion of the Group’s results are provided in
note 18.
Holdco comprises the Group excluding operating segments per note 2.1 and MTN GlobalConnect Solutions
1
Limited.
Results overview

5. IMPACT OF THE COVID-19 PANDEMIC continued

● The severe impact of the pandemic on oil producing economies such as Nigeria
resulted in pressure on the availability of foreign currency and limited the Group’s
ability to repatriate dividends. The Group continued to manage sensitivities of
variability in cash flows on its debt gearing at a head office level. Holding company
debt gearing levels increased during the period as dividend flows were restricted
and the amounts in transit have been disclosed as restricted cash.
● The carrying values in a number of the Group’s smaller operations and an
investment in a joint venture exceeded their recoverable amounts during 2020,
which resulted in impairments recognised against the goodwill of MTN Yemen, MTN
Liberia and MTN Guinea-Bissau and an impairment in an investment in joint venture
– Middle East Internet Holding S.A.R.L (MEIH). Further details of the entities are
provided in the note relating to impairment of goodwill (note 9.2) and investment in
joint venture (note 9.1).
● The Group’s valuation of its investment in IHS Holdings Limited (IHS) is based on
international tower industry multiples relevant at 31 December 2020. In February
2020, IHS completed the acquisitions of approximately 1 600 towers from Zain in
Kuwait and approximately 2 300 towers from Cell Site Solutions in Brazil, Peru and
Columbia. For the current year, IHS continued to operate under COVID-19 conditions
and grew operationally in all markets. However, the macroeconomic environment,
particularly in Nigeria, is impacted by the drop in oil prices and devaluation of the
Nigerian naira following the effects of COVID-19. Given the market conditions, a
combined liquidity and macro discount of 30% (2019: liquidity discount of 10%) has
been applied. The fair value was calculated based on unobservable market inputs
including tower industry earnings multiples which dropped to between 10x to 13x
(December 2019: 10x to 14x). The sensitivities to the fair value estimations are
provided in note 13.2.
● There have been no major impacts on leases and their related accounting impacts
as a result of COVID-19. With telecommunications being treated as an essential
service in most economies, our operations have continued to provide services to
customers. The Group has not been granted rent concessions or COVID-19 related
amendments to lease arrangements. Similarly, the increase in teleworking has
resulted in an increased demand for network capacity to accommodate traffic.
The Group is not only focused on managing the risks brought about by COVID-19,
but also on the opportunities it creates in the accelerated digitalisation it has brought
about. The Group is well positioned to benefit from this evolution, especially given its
focus on growth in data, digital and financial services businesses in the execution of
its strategy.
The Group provided ongoing support through the MTN Global Staff Emergency Fund
for employees and Y’ello Hope packages for our customers, communities and other
stakeholders. The extensive interventions that have been implemented are expected
to continue to safeguard the sustainability of the business, its people and its
customers in the prevailing challenging environment. The Group provided
government relief funds, personal protective equipment, healthcare support
and contributions to food security initiatives through its foundations. Across
the footprint numerous websites have been zero-rated to provide access to
education portals to enable on-going learning and health related information. In
countries like South Africa and Ghana, the Group has also supported contact tracing
initiatives to fight the spread of COVID-19.
On 27 January 2021, MTN announced that it will be donating US$25 million to
support the African Union’s COVID-19 vaccination programme. The donation will
help secure COVID-19 vaccines for health workers across the continent. MTN will
recognise an expense and related cash outflow for the donation in the 2021 financial
year.
Details of other events after the reporting period are set out in relevant notes within
these annual financial statements.
6. CRITICAL ACCOUNTING JUDGEMENTS

6.1 MTN SA revenue recognition
On 1 May 2020, MTN SA’s new long-form roaming agreement (Phase 2 agreement)
with Cell C became effective.
Based on Cell C’s liquidity issues, the Group has assessed that it is not probable that it
will receive the consideration to which it is entitled under the Phase 2 agreement, and
therefore the agreement does not meet the definition of a contract for revenue
recognition purposes in terms of IFRS 15 Revenue from Contracts with Customers
(IFRS 15). As a result, MTN SA did not recognise all revenue accrued on satisfied
performance obligations during the year. Revenue was only recognised on completed
services based on the non-refundable consideration received.
MTN SA recorded revenue of R1 992 million from Cell C during the year ended
31 December 2020. As at 31 December 2020, R525 million of revenue in relation to
satisfied performance obligations remains unrecognised.
Cell C continues to work on its recapitalisation and liquidity challenges. When Cell C
has been adequately recapitalised and starts paying significantly all the amounts due
to MTN, there will be a change in the Group’s accounting treatment of Cell C roaming
revenues back to an accounting methodology of recognising revenue as performance
obligations are satisfied.
7. HYPERINFLATION
The financial statements (including comparative amounts) of the Group entities whose
functional currencies are the currencies of hyperinflationary economies are adjusted
in terms of the measuring unit current at the end of the reporting period.
The Group has classified the economies of Syria, South Sudan, Sudan and Iran as
hyperinflationary effective 2014, 2016, 2018 and 2020 respectively.
In May 2020, MTN Syria was classified as a disposal Group held for sale (note 21) and
was remeasured to its fair value less costs to sell and the Group has therefore
discontinued adjusting MTN Syria’s net assets for hyperinflation from this date
onwards.
The economy of Iran was assessed to be hyperinflationary effective 1 January 2020,
and hyperinflation accounting was applied for the current financial year. Upon first
application of hyperinflation, prior period gains of R3 677 million were recognised
directly in equity.
The impact of hyperinflation on the segment analysis is as follows:
2020
Operating
Revenue profit/(loss) Capex
Rm Rm Rm
Syria (669) 124 (139)
Sudan 3 429 233 507
South Sudan (included in other SEAGHA) 165 61 26
2 925 418 394
Major joint venture – Irancell (2 312) (1 629) (121)
Results overview

7. HYPERINFLATION continued
2019
Operating
Revenue (loss)/profit Capex
Rm Rm Rm
Syria – (250) –
Sudan 626 (120) 106
South Sudan (included in other SEAGHA) 279 54 109
905 (316) 215
Major joint venture – Irancell – (621) –
8. SEGMENT ANALYSIS
The Group has identified reportable segments that are used by the Group Executive
Committee Chief Operating Decision Maker (CODM) to make key operating decisions,
allocate resources and assess performance. The reportable segments are largely
grouped according to their geographic locations and reporting lines to the CODM.
The Group’s underlying operations are clustered as follows:
● South Africa;
● Nigeria;
● South and East Africa and Ghana (SEAGHA);
● West and Central Africa (WECA); and
● Middle East and North Africa (MENA).
South Africa and Nigeria comprise the segment information for the South African and
Nigeria-based cellular network services providers respectively.
The SEAGHA, WECA and MENA clusters comprise segment information for operations
in those regions which are also cellular network services providers in the Group.
Subsequent to year-end, the Group redefined its reporting segments from SEAGHA to
SEA with Ghana being included in WECA.
Operating results are reported and reviewed regularly by the CODM and include items
directly attributable to a segment as well as those that are attributed on a reasonable
basis, whether from external transactions or from transactions with other Group
segments.
A key performance measure of reporting profit for the Group is CODM EBITDA. CODM
EBITDA is defined as earnings before finance income and finance costs (which
includes gains or losses on foreign exchange transactions and a loss on revision of
cash flows from a joint venture), tax, depreciation and amortisation, and is also
presented before recognising the following items:
impairment of joint venture and goodwill (note 9);
●
net monetary gain resulting from the application of hyperinflation;

●
share of results of associates and joint ventures after tax (note 11);
●
hyperinflation (note 7);

●
tower sale profits;

●
gain on disposal/dilution of investment in associate and joint venture (note 19);

●
gain on disposal of subsidiary; and

●
impairment loss on remeasurement of non-current assets held for sale (note 21).
●
These exclusions have remained unchanged from the prior year, apart from impairment
loss on remeasurement of the non-current assets held for sale.
Irancell proportionate results are included in the segment analysis as reviewed by the
CODM and excluded from reported results for revenue, CODM EBITDA and capex due
to equity accounting for joint ventures. The results of Irancell in the segment analysis
exclude the impact of hyperinflation accounting.
8. SEGMENT ANALYSIS continued
Interconnect
Network Mobile and
services devices roaming
REVENUE Rm Rm Rm
2020
South Africa 29 639 8 449 3 481
Nigeria 49 054 294 5 732
SEAGHA 23 485 332 1 659
Ghana 11 648 120 749
Uganda 5 570 53 437
Other SEAGHA 6 267 159 473
WECA 20 107 183 2 581
Cote d’lvoire 5 697 47 1 101
Cameroon 5 118 46 459
Other WECA 9 292 90 1 021
MENA 8 568 21 1 228
Syria 2 036 1 32
Sudan 2 526 11 623
Other MENA 4 006 9 573
Major joint venture – Irancell1 6 539 92 414

Head office companies2, 3 1 077 – 4 553
Eliminations3 (166) (1) (4 661)
Hyperinflation impact 2 169 11 651
Irancell revenue exclusion (6 539) (92) (414)
Consolidated revenue 133 933 9 289 15 224
1
Irancell proportionate results are included in the segment analysis as reviewed by the CODM. This is,
however, excluded from IFRS reported results due to equity accounting for joint ventures.
Head office companies consist mainly of dividends received, revenue from GlobalConnect Solutions
2
Limited, the Group’s central financing activities and management fees from segments.
The head office companies and eliminations have been disaggregated in the current year. The 2019 year
3
has been re-presented to reflect this disaggregation.
Results overview
Revenue from
Digital and contracts with Interest Total
fintech Other customers revenue revenue
Rm Rm Rm Rm Rm
2 170 1 331 45 070 403 45 473

2 341 559 57 980 – 57 980
7 777 781 34 034 – 34 034
4 487 241 17 245 – 17 245
2 135 125 8 320 – 8 320
1 155 415 8 469 – 8 469
3 921 835 27 627 – 27 627
1 472 459 8 776 – 8 776
994 69 6 686 – 6 686
1 455 307 12 165 – 12 165
477 129 10 423 – 10 423
213 13 2 295 – 2 295
119 27 3 306 – 3 306
145 89 4 822 – 4 822
393 114 7 552 21 7 573

10 11 902 17 542 148 17 690
– (11 822) (16 650) (141) (16 791)
66 28 2 925 – 2 925
(393) (114) (7 552) (21) (7 573)
16 762 3 743 178 951 410 179 361
Interconnect
Network Mobile and
services devices roaming
REVENUE Rm Rm Rm
2019
South Africa 27 926 9 017 4 381
Nigeria 39 545 88 4 995
SEAGHA 18 333 315 1 757
Ghana 9 275 90 915
Uganda 4 463 61 409
WECA 16 240 171 2 280
Cote d’lvoire 4 535 37 899
Cameroon 4 248 62 457
Other WECA 7 457 72 924
MENA 7 520 37 1 006
Syria 2 745 – 51
Sudan 1 335 5 472
Other MENA 3 440 32 483

Head office companies2, 3 542 1 2 408
Eliminations3 (327) – (2 904)
Hyperinflation impact 679 1 193
Irancell revenue exclusion (6 715) (104) (526)
Consolidated revenue 110 458 9 630 14 116
1
2
3
The head office companies and eliminations have been disaggregated in the current year. The 2019 year
Results overview
Revenue from
Digital and contracts with Interest Total
fintech Other customers revenue revenue
Rm Rm Rm Rm Rm
2 066 1 635 45 025 422 45 447

1 584 484 46 696 – 46 696
5 983 681 27 069 – 27 069
3 326 214 13 820 – 13 820
1 681 86 6 700 – 6 700
976 381 6 549 – 6 549
2 511 619 21 821 – 21 821
1 041 405 6 917 – 6 917
571 51 5 389 – 5 389
899 163 9 515 – 9 515
343 71 8 977 – 8 977
167 23 2 986 – 2 986
69 22 1 903 – 1 903
107 26 4 088 – 4 088
539 106 7 990 24 8 014

40 12 309 15 300 106 15 406
– (11 533) (14 764) (97) (14 861)
23 9 905 – 905
(539) (106) (7 990) (24) (8 014)
12 550 4 275 151 029 431 151 460

2020 2019
Inter- Inter-
External versus External segment Total External segment Total
inter-segment revenue revenue revenue revenue revenue revenue
revenue Rm Rm Rm Rm Rm Rm
South Africa 45 045 428 45 473 45 237 210 45 447
Nigeria 57 355 625 57 980 46 265 431 46 696
SEAGHA 32 934 1 100 34 034 26 259 810 27 069
Ghana 16 697 548 17 245 13 397 423 13 820
Uganda 7 936 384 8 320 6 471 229 6 700
Other SEAGHA 8 301 168 8 469 6 391 158 6 549
WECA 26 761 866 27 627 21 202 619 21 821
Cote d’lvoire 8 643 133 8 776 6 835 82 6 917
Cameroon 6 440 246 6 686 5 239 150 5 389
Other WECA 11 678 487 12 165 9 128 387 9 515
MENA 9 781 642 10 423 8 651 326 8 977
Syria 2 295 – 2 295 2 986 – 2 986
Sudan 2 804 502 3 306 1 634 269 1 903
Other MENA 4 682 140 4 822 4 031 57 4 088
Major joint venture
– Irancell1 7 573 – 7 573 8 014 – 8 014
Head office
companies2, 3 4 557 13 133 17 690 2 938 12 468 15 406
Eliminations3 – (16 791) (16 791) – (14 861) (14 861)
Hyperinflation
impact 2 928 (3) 2 925 908 (3) 905
Irancell revenue
exclusion (7 573) – (7 573) (8 014) – (8 014)
Consolidated
revenue 179 361 – 179 361 151 460 – 151 460
1
2
3
The head office companies and eliminations have been disaggregated in the current year. The prior year
Results overview


2019
2020 Restated1
CODM EBITDA Rm Rm
South Africa 17 742 16 972
Nigeria 29 506 25 149
SEAGHA 16 802 12 136
Ghana 9 097 7 014
Uganda 4 118 3 150
WECA 8 620 6 081
Cote d’lvoire 3 042 1 814
Cameroon 2 149 1 635
Other WECA 3 429 2 632
MENA 3 352 2 836
Syria 574 1 173
Sudan 1 428 677
Other MENA 1 350 986
Head office companies2 1 871 (849)
Eliminations2 (2 570) 315
CODM EBITDA 75 323 62 640
Tower sale profits – 19
Gain on disposal/dilution of investment in joint
ventures and associates 6 129 1 039
Gain on disposal of subsidiary – 249
assets held for sale (1 510) –
Irancell CODM EBITDA exclusion (2 818) (3 041)
CODM EBITDA before impairment of goodwill 81 311 64 229
Depreciation, amortisation and impairment of
goodwill and joint venture (36 716) (32 800)
Net finance cost (18 233) (15 184)
Net monetary gain 1 582 787
Share of results of associates and joint ventures
after tax 1 142 705
Profit before tax 29 086 17 737
1
Restated for changes in accounting policies, refer to note 23 for details of restatements.
2
he head office companies and eliminations have been disaggregated in the current year. The prior year
T
The CODM EBITDA relating to the major joint venture, Irancell, has been presented after the Group CODM
3
EBITDA as Irancell does not form part of CODM EBITDA as it is a joint venture.

2020 2019
CAPITAL EXPENDITURE INCURRED Rm Rm
South Africa 7 542 11 295
Nigeria 12 694 9 750
SEAGHA 6 063 5 554
Ghana 3 021 2 850
Uganda 1 328 1 147
WECA 3 418 3 231
Cote d’lvoire 1 064 918
Cameroon 950 573
Other WECA 1 404 1 740
MENA 1 642 1 989
Syria 751 939
Sudan 495 430
Other MENA 396 620
Head office companies2 1 286 949
Eliminations2 – (115)
Hyperinflation impact 394 215
Irancell capex exclusion (1 865) (2 568)
33 039 32 868
1
however, excluded from capital expenditure incurred due to equity accounting for joint ventures.
The head office companies and eliminations have been disaggregated in the current year. The prior year
2
Results overview

9. IMPAIRMENT OF GOODWILL AND INVESTMENT IN JOINT VENTURE

9.1 Impairment of joint venture
The Group tested its investment in its equity-accounted e-commerce joint venture,
MEIH, for impairment. The Company experienced decreasing results in the current
year due to the impact of COVID-19 on the transportation and online booking platform
for household services business. The recoverable amount was determined as the fair
value less cost of disposal. The fair value represents a value determined from
unobservable inputs. This was based on comparable company and transaction
average net merchandise value multiples of 0,9x (2019: 1,3x) and revenue multiples of
4,4x for its transportation business, and merchandise value multiples of 0,6x
(2019: 1,4x) for its on-demand cleaning marketplace business. The carrying value of
the equity-accounted net assets exceeded the recoverable amount of R575 million
(2019: R572 million) by R67 million (2019: R342 million) and the Group recognised the
resulting impairment in profit or loss.
9.2 Impairment of goodwill
The poor economic environment combined with further impacts of the COVID-19
pandemic in a number of the Group’s operations in the WECA and MENA regions
resulted in suppressed revenue growth and lower operating margins being
experienced, which decreased forecasted cash flows at 31 December 2020. In
addition, sovereign risk premiums have increased significantly for MTN Guinea-
Bissau and MTN Yemen given the macroeconomic environment in these countries.
This necessitated impairment reviews being performed on the Group’s operations in
Guinea-Bissau, Liberia and Yemen where the carrying amounts of these cash
generating units (CGUs), were compared to their respective recoverable amounts. The
recoverable amounts were determined through value-in-use calculations where
future cash flows were estimated and discounted at the weighted average cost of
capital discount rates. The discount rates and the perpetuity growth rates used in the
value-in-use calculations of the operations impacted by impairment are as follows:
2020 2019
Growth Discount Growth Discount

rate rate rate rate
% % % %
MTN Liberia 2,8 19,0 2,3 21,0
MTN Guinea-Bissau 6,3 17,0 2,5 11,7
MTN Yemen 8,0 28,5 5,0 18,5
An impairment charge amounting to R525 million was recognised against the goodwill
of MTN Yemen. The operational and economic outlook in MTN Yemen remains negative
due to political instability and subdued economic conditions. This has an impact
across all industries in-country. As at 31 December 2020, the carrying value of this
CGU exceeded its recoverable amount, necessitating an impairment. The remaining
goodwill balance for MTN Yemen at 31 December 2020 amounts to R564 million, after
recognising the impairment charge.
of MTN Liberia. The operational and economic outlook in MTN Liberia remains
negative due to the government struggling with its budget deficit and rising inflation
rates. This has an impact across all industries in-country. As at 31 December 2020,
the carrying value of this CGU exceeded its recoverable amount, necessitating an
impairment. The goodwill balance for MTN Liberia at 31 December 2020 amounts to
R124 million, after recognising the impairment charge.
of MTN Guinea-Bissau. The operational and economic outlook in MTN Guinea-Bissau
remains uncertain due to political instability and volatile agricultural prices, which has
resulted in more conservative budgets being planned. As at 31 December 2020, the
carrying value of this CGU exceeded its recoverable amount, necessitating an
impairment. The goodwill balance for MTN Guinea-Bissau at 31 December 2020
amounts to R265 million, after recognising the impairment charge.
No impairment was required on goodwill balances as at 31 December 2019.
10. NET FINANCE COSTS

2020 2019
Rm Rm
Interest income on loans and receivables 605 923
Interest income on bank deposits 888 950
Finance income 1 493 1 873
Interest expense on financial liabilities measured at
amortised cost1 (8 816) (8 767)
Net foreign exchange losses (4 537) (2 364)
Unwind of/(loss on) revision of cash flows2 174 (217)
Lease liability interest expense (6 547) (5 709)
Finance costs (19 726) (17 057)

Net finance costs recognised in profit or loss (18 233) (15 184)
1
Included in 2019 is an amount of R189 million which relates to the discount unwind on the MTN Nigeria
regulatory fine liability.
2
Refer to note 11 for details on the balance with Irancell.
11. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES AFTER TAX

2020 2019
Rm Rm
1 142 705
Irancell 538 441
Others 604 264
Irancell loan and receivable

On 20 September 2019, the US Treasury Department’s Office of Foreign Assets Control
(OFAC) designated the Central Bank of Iran (CBI) as being subject to sanctions.
Sanctions imposed on the CBI creates a secondary sanctions risk for MTN entities if
the CBI allocates foreign currency to an MTN entity for the purpose of repatriating the
receivable and/or loan. As at 31 December 2020, Iranian rial denominated receivables
amounted to R1 037 million1 (2019: R1 237 million) and the Iranian rial denominated
loan amounted to R1 733 million2 (2019: R1 516 million).
1
Includes R840 million at the SANA rate. Includes R197 million at the CBI rate.
2
he amount outstanding was translated at the CBI rate.
T
Results overview

12. EARNINGS PER ORDINARY SHARE

Number of ordinary shares 2020 2019
Number of ordinary shares in issue
At end of the year (excluding MTN Zakhele
Futhi and treasury shares) 1 798 990 980 1 798 007 746
Weighted average number of shares 1 798 503 457 1 797 927 770
Add: Dilutive shares
– Share options – MTN Zakhele Futhi 11 045 701 23 250 313
– Share schemes 8 443 911 4 381 435
Shares for dilutive earnings per share 1 817 993 069 1 825 559 518
Treasury shares
Treasury shares of 8 443 400 (2019: 9 426 634) are held by the Group and 76 835 378
(2019: 76 835 378) are held by MTN Zakhele Futhi (RF) Limited (MTN Zakhele Futhi).
Headline earnings
Headline earnings is calculated in accordance with Circular 1/2019 Headline Earnings
as issued by SAICA as amended from time to time and as required by the JSE Limited.
12. EARNINGS PER ORDINARY SHARE continued

2019
2020 Restated1
Rm Rm
Reconciliation between net profit attributable to the
equity holders of the company and headline earnings:
Profit attributable to equity holders of the company 17 022 9 100
Net profit on disposal of property, plant and
equipment and intangible assets (24) (64)
– Subsidiaries (IAS 16) (22) (64)
– Joint ventures (IAS 28) (2) –
Profit on disposal of subsidiary (IFRS 10) – (249)
Impairment of goodwill and investments in joint
ventures (IAS 36) 1 065 342
Net impairment loss on property, plant and
equipment (IAS 36) 42 330
asset held for sale (IFRS 5) 1 510 –
– Subsidiary 1 113 –
– Associate 397 –
Net gain on disposal/dilution of investment in joint
venture/associate (IAS 28) (6 129) (1 076)
- Subsidiaries (6 129) (1 039)
- Joint venture/associate – (37)
Realisation of deferred gain on tower sale – (19)
Total non-controlling interest effect of adjustments (13) 47
Headline earnings 13 473 8 411
Earnings per share (cents)
– Basic 946 506
– Basic headline 749 468
Diluted earnings per share (cents)
– Diluted 936 498
– Diluted headline 741 461
1
Results overview

13. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

The Group has exposure to the following risks from its use of financial instruments:
credit risk, liquidity risk and market risk (foreign exchange, interest rate and price risk).
This note presents information about the Group’s exposure to the above risks, the
Group’s objectives, policies and processes for measuring and managing risk, and the
Group’s management of capital. While MTN Syria has been classified as a disposal
group held for sale, the entity still exposes the Group to risks relating to financial
instruments. Accordingly, MTN Syria has contributed to the disclosure below.
13.1 Financial assets and financial liabilities at amortised cost
The carrying value of current receivables and liabilities measured at amortised cost
approximates their fair value.
Listed long-term borrowings
The Group has listed long-term fixed interest rate senior unsecured notes in issue
which were issued in prior years, with a carrying amount of R25 987 million at
31 December 2020 (2019: R24 706 million) and a fair value of R27 691 million
(2019: R25 775 million). The notes are listed on the Irish bond market and the fair
values of these instruments are determined by reference to quoted prices in this
market. The market for these bonds is not considered to be liquid and consequently
the fair value measurement is categorised within level 2 of the fair value hierarchy.
13.2 Financial instruments measured at fair value
IHS Group unlisted equity investment
The fair values of financial instruments measured at fair value are determined as
follows:
Included in investments in the statement of financial position is an equity investment

in IHS Group at fair value of R27 197 million (2019: R27 000 million). The fair value is
determined using models considered to be appropriate by management, due to the
absence of transactions between market participants. The fair value was calculated
using an earnings multiple technique and was based on unobservable market inputs
including international tower industry earnings multiples of between 10x to 13x
(2019: 10x to 14x) applied to MTN management’s estimates of earnings, less estimated
net debt of R23 330 million (2019: R20 217 million). The Group has applied a combined
liquidity and macro discount of 30% (2019: liquidity discount of 10%). A fair value
decrease of R1 151 million (2019: R4 297 million increase) translated at the closing
rate has been recognised for the year.
Given the confidentiality restrictions in the shareholders’ agreement with IHS Group,
MTN does not have access to the IHS Group business plans or actual financial
information. Any estimated earnings used to derive the existing fair value are therefore
solely based on MTN management assumptions and market estimates on financial
growth, currency movements, costs and performance. The investment has therefore
been classified as level 3 on the fair value hierarchy. An increase of one in the low and
high end of the multiple range, keeping other inputs constant, would have resulted in
an increase in the fair value of R2 700 million (2019: R2 813 million) and a decrease of
one in the low and high end of the multiple range, keeping other inputs constant, would
have resulted in a decrease in the fair value by R2 700 million (2019: R2 813 million).
An increase of 10% in the estimated earnings used, keeping other inputs constant,
would have resulted in an increase in the fair value of R3 019 million (2019:
R3 228 million) and a decrease of 10% in the estimated earnings used, keeping other
inputs constant, would have resulted in a decrease in the fair value of R3 019 million
(2019: R3 228 million).
An increase of 1% to the combined liquidity and macro discount (2019: liquidity
discount), keeping other inputs constant, would have resulted in a decrease in the fair
value of R389 million (2019: R300 million) and a decrease of 1% to the combined
liquidity and macro discount (2019: liquidity discount), keeping other inputs constant,
would have resulted in an increase in the fair value by R389 million (2019: R300 million).
13. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS continued

13.2 Financial instruments measured at fair value continued
Reconciliation of level 3 financial assets
The table below sets out the reconciliation of financial assets that are measured at
fair value based on inputs that are not based on observable market data (level 3):
Insurance cell captives Rm

Balance at 1 January 2019 1 597
Contributions paid to insurance cell captives 469
Claims received by insurance cell captives (123)
Loss recognised in profit or loss (131)
Contributions paid to insurance cell captives 605
Claims received by insurance cell captives (869)
Loss recognised in profit or loss (410)
Balance at 31 December 2020 1 138
Investments Rm
Disposal of underlying equity investments of Amadeus (592)
Acquisitions 75
Gain on equity investments at fair value through other comprehensive
income 4 401
Foreign exchange differences (751)
Acquisitions 158
Loss on equity investments at fair value through other comprehensive
income (1 575)
Foreign exchange differences 1 829
Balance at 31 December 2020 27 570
13.3 Credit risk

Credit risk, or the risk of financial loss to the Group due to customers or counterparties
not meeting their contractual obligations, is managed through the application of
credit approvals, limits and monitoring procedures. The Group’s maximum exposure
to credit risk is represented by the carrying amount of the financial assets and
contract assets that are exposed to credit risk.
The risk rating grade of cash and cash equivalents and restricted cash range from
AA+ to B- (2019: A+ to BBB-). Given these credit ratings, management expects that
the exposure to credit risk is minimal.
Mobile Money deposits
MoMo deposits are balances that are held with banks for and on behalf of MoMo
customers. Regulations in certain jurisdictions specify the types of permissible liquid
instruments in which these deposits may be invested in. MoMo deposits are spread
among approved, reputable financial institutions based on internal risk assessments
or guidance provided by regulators, to manage the concentration of credit risk to a
single counterparty. Many risk mitigations are in place and banks are also obliged to
pay insurance premiums to protect MoMo customer deposits (or a portion thereof) in
the event of bank failure.
As a result of the uncertain and evolving legal and regulatory environment, the
assessment of which party in a MoMo arrangement is exposed to a bank credit risk
event, has become increasingly complex and dependent on legal interpretations that
are largely untested in the respective markets in which the Group operates.
Consequently, the assessment of the Group’s credit risk exposure with regards to
MoMo remains subject to legal and regulatory developments.
Results overview


13.3 Credit risk continued
Mobile Money deposits continued
The treatment of MoMo in the financial statements is not and should not be construed
as a waiver by the members of the Group of any legal, contractual or statutory rights,
remedies, and defences they may have, or as an admission of liability enforceable
against any of them in law or otherwise. The legal, contractual, and statutory rights,
remedies and defences of members of the Group are reserved.
Trade receivables and contract assets (unbilled handset component)
A large portion of the Group’s postpaid market revenues are generated in South
Africa. There are no other significant concentrations of credit risk, since the other
operations within the Group operate largely within the prepaid market. The Group has
policies in place to ensure that retail sales of products and services are made to
customers with an appropriate credit history. Before credit is granted to a customer,
the Group performs credit risk assessments through credit bureaus. The Group
insures some of its trade receivables in its South African operation, in which instance
the credit risk assessments are performed by the credit insurer prior to the granting
of credit by the Group. In terms of this arrangement R6,3 billion (2019: R6,5 billion) has
been insured, for which the Group’s risk is limited to R1,1 billion (2019: R1 billion). In
addition, some entities within the Group require potential customers to obtain
guarantees from banks before credit is granted. During the current year the Group did
not recognise ECLs amounting to R33,7 million (2019: R97 million) as a result of
collateral held.
Total past due receivables
Interconnect Contract Retail EBU Other

receivables receivables receivables receivables receivables1 Total
Rm Rm Rm Rm Rm Rm
2020
MTN SA 266 523 613 679 1 116 3 197
MTN Nigeria 87 241 – – 332 660
MTN Cote
d’lvoire 114 286 175 – 130 705
MTN Yemen 510 83 – – 109 702
MTN Cameroon 11 24 51 311 28 425
MTN Benin 106 – – – 642 748
MTN
Guinea-
Conakry 189 82 247 44 15 577
MTN
Congo-
Brazzaville 250 – – 473 – 723
Other
operations 396 223 329 521 524 1 993
1 929 1 462 1 415 2 028 2 896 9 730
1
Other receivables include both national and international roaming receivables.

Total past due receivables continued
Inter-
connect Contract Retail EBU Other
receivables receivables receivables receivables receivables1 Total
Rm Rm Rm Rm Rm Rm
2019
MTN SA 479 669 665 189 74 2 076
MTN Nigeria 114 114 – – 255 483
MTN Cote
d’Ivoire 56 314 161 – 92 623
MTN Yemen 524 86 – – 66 676
MTN Cameroon 69 43 85 247 29 473
MTN Benin 142 – – – 412 554
MTN
Guinea-
Conakry 171 79 87 164 18 519
MTN
Congo-
Brazzaville 175 – – 323 – 498
Other
operations 669 262 189 193 583 1 896
2 399 1 567 1 187 1 116 1 529 7 798
Expected credit losses

Application of the ECL model had an immaterial impact on all financial assets except
for contract assets and trade receivables.
Provision Matrix – ECLs are calculated by applying a loss ratio to the aged balance of
trade receivables at each reporting date. The loss ratio is calculated according to the
ageing/payment profile of sales by applying historical/ proxy write offs, to the payment
profile of the sales population. In instances where there was no evidence of historical
write offs management used a proxy write off. Trade receivable balances have been
grouped so that the ECL calculation is performed on groups of receivables with similar
risk characteristics and ability to pay. Similarly, the sales population selected to
determine the ageing/payment profile of the sales is representative of the entire
population and in line with future payment expectations. The historic loss ratio is then
adjusted for forward-looking information (including forecast economic indicators, as
affected by the COVID-19 pandemic) to determine the ECL for the portfolio of trade
receivables at the reporting date to the extent that there is a strong correlation
between the forward-looking information, and the ECL.
Simplified parameter-based approach – ECL is calculated using a formula

incorporating the following parameters: Exposure at Default (EAD), Probability of
Default (PD), Loss Given Default (LGD) discounted using the Effective Interest Rate
(EIR) (i.e. PD x LGD x EAD = ECL). The probability of default has been increased for the
estimated deteriorated gross domestic product growth in South Africa.
1
Results overview


Expected credit losses continued
The loss allowance for trade receivables to which the provision matrix and simplified
matrix approach has been applied is determined as follows:
Average
Gross ECL/
carrying Impairment
amount Impairment ratio
Rm Rm %
2020
Interconnect receivables 2 636 (516) 19,58
Fully performing 707 (24) 3,39
Up to 90 days past due 571 (30) 5,25
120 days and above past due 1 358 (462) 34,02
Contract receivables 1 418 (504) 35,54
120 days and above past due 662 (459) 69,34
Retail receivables 7 673 (435) 5,67
Fully performing 6 258 (1) 0,02
EBU receivables 2 488 (946) 38,02
Other receivables1 3 187 (469) 14,72
Simplified parameter-based approach

Trade receivables 1 073 (268) 24,98
Contract assets 4 191 (499) 11,91
Total 22 666 (3 637) 16,05

1

The loss allowance for trade receivables to which the provision matrix and simplified
matrix approach has been applied is determined as follows:
Average
Gross ECL/
carrying Impairment
amount Impairment ratio
Rm Rm %
2019
Interconnect receivables 3 074 (458) 14,90
Contract receivables 1 262 (453) 35,90
Retail receivables 7 026 (403) 5,74
EBU receivables 2 165 (473) 21,85
Other receivables1 2 056 (187) 9,10
Simplified parameter-based approach

Trade receivables 1 292 (397) 30,73
Contract assets 4 206 (338) 8,04
Total 21 081 (2 709) 12,85

1
Results overview


Trade receivables are written off when there is no reasonable expectation of recovery.
This is assessed individually by each operation and includes for example where the
trade receivables have been handed over for collection and remain outstanding or the
debtor has entered bankruptcy.
A net impairment loss of R1 009 million (2019: R245 million) was recognised during
the year for trade receivables. In addition to the R486 million (2019: R531 million)
provision utilised, R999 million (2019: R347 million) was written off directly to profit or
loss during the year.
A net impairment loss of R161 million (2019: R137 million) was recognised during the
year for contract assets and Rnil (2019: R187 million) of the provision was utilised.
13.4 Liquidity risk
The Group’s approach to managing liquidity risk is to ensure that sufficient liquidity is
available to meet its liabilities when due under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Group’s reputation.
Group treasury develops strategies to ensure that the Group has sufficient cash on
demand or access to facilities to meet expected operational expenses, and to service
financial obligations. This excludes the potential impact of extreme circumstances
that cannot reasonably be predicted, such as natural disasters. Group treasury
performs regular cash flow forecasts, monitors cash holdings of the Group, negotiates
lines of credit and sets policies for maturity profiles of loans.
The Group has undrawn variable rate facilities of R33,3 billion (2019: R33,8 billion).
Holdco cash balances including restricted cash and current investments was
R20,6 billion as at 31 December 2020 (2019: R11,6 billion).

13.4 Liquidity risk continued
The following are the undiscounted contractual cash flows of financial liabilities:
Carrying
amount Total
Rm Rm
2020
Borrowings 95 895 111 485
Other non-current liabilities1 149 149
Lease liabilities1 49 637 81 161
Trade and other payables1 38 597 38 636
Derivative liabilities 7 7
Bank overdrafts 354 355
212 647 259 801
2019
Borrowings 94 148 104 426
Other non-current liabilities 383 383
Derivative liabilities 21 21
190 045 245 060
1
Includes liabilities directly associated with non-current assets held for sale relating to MTN Syria.

Results overview
Payable More than More than More than More than

within one month three months one year two years
one month but not but not but not but not
or on exceeding exceeding exceeding exceeding More than
demand three months one year two years five years five years
Rm Rm Rm Rm Rm Rm
1 634 6 316 13 275 23 580 54 791 11 889

– – – 6 7 136
839 2 701 6 813 8 780 25 525 36 503
26 029 3 795 8 812 – – –
28 008 – – – – –
– – 7 – – –
176 77 102 – – –
56 686 12 889 29 009 32 366 80 323 48 528
8 178 1 301 4 831 27 908 48 601 13 607

5 3 4 – – 371
786 2 061 7 340 7 802 25 539 47 261
22 576 6 218 5 200 – – –
15 315 – – – – –
21 – – – – –
128 – 4 – – –
47 009 9 583 17 379 35 710 74 140 61 239

13.5 Market risk
13.5.1 Interest rate risk
The Group’s interest rate risk arises from the repricing of the Group’s floating rate
debt, incremental funding or new borrowings, the refinancing of existing borrowings
and the magnitude of the cash balances which exist.
At the reporting date the interest rate profile of the Group’s interest-bearing financial
instruments was:
2020 Restated 20191,2
Variable Variable
Fixed rate rate Fixed rate rate
instruments instruments instruments instruments
Rm Rm Rm Rm
Non-current financial
assets
Loans and other non-
current receivables 29 286 79 392
Investments 948 – – –
Mobile Money deposits 329 – – –
Current financial assets
Trade and other
receivables1 – 1 311 50 2 048
Current investments 8 787 – 2 579 –
Restricted cash 87 33 170 –
Mobile Money deposits2 5 307 16 319 3 236 8 266
Cash and cash equivalents 4 475 12 655 4 565 11 044
19 962 30 604 10 679 21 750
1
Included in variable rate trade and other receivables for 31 December 2019 was an amount of
R1 651 million relating to a loan that has now been restated as a non-interest bearing instrument based
on the interest rate position existing at 31 December 2019.
Included in both variable rate MoMo deposits and payables for 31 December 2019 was an amount of
2
R1 863 million that have now been restated as fixed rate instruments based on the interest rate position
existing at 31 December 2019.
Results overview


13.5 Market risk continued
13.5.1 Interest rate risk continued
2020 Restated 20191
Variable Variable
Fixed rate rate Fixed rate rate
instruments instruments instruments instruments
Rm Rm Rm Rm
Non–current financial
liabilities
Borrowings 31 369 47 088 27 292 51 165
Other non–current
liabilities 13 136 – 373
Current financial liabilities
Mobile Money payables1 1 765 16 290 3 236 8 266
Borrowings 2 622 14 816 5 716 9 975
Bank overdrafts 173 176 75 57
36 082 79 141 36 529 70 018
1
Included in both variable rate MoMo deposits and payables for 31 December 2019 was an amount of
R1 863 million that has now been restated as fixed rate instruments based on the interest rate position
existing at 31 December 2019
13. FINANCIAL risk management and financial instruments continued

13.5.1 Interest rate risk continued
The Group has used a sensitivity analysis technique that measures the estimated
change to profit or loss of an instantaneous increase or decrease of 1% (100 basis
points) in market interest rates, from the rate applicable at 31 December, for each
class of financial instrument with all other variables remaining constant. This analysis
is for illustrative purposes only, as in practice market rates rarely change in isolation.
The Group is mainly exposed to fluctuations in the following market interest rates:
JIBAR, LIBOR, NIBOR, Money market and Prime. Changes in market interest rates
affect the interest income or expense of floating rate financial instruments. A change
in the above market interest rates at the reporting date would have increased/
(decreased) profit before tax by the amounts shown in the table to follow.
The analysis has been performed on the basis of the change occurring at the start of
the reporting period and assumes that all other variables, in particular foreign
currency rates, remain constant.
The analysis is performed on the same basis as was used for 2019.
2020 Restated 20191

(Decrease)/increase in profit (Decrease)/increase in profit
before tax before tax
Upward Downward
Upward Downward
Change change change Change change change
in interest in interest in interest in interest in interest in interest
rate rate rate rate rate rate
% Rm Rm % Rm Rm
JIBAR 1 (331,1) 331,1 1 (329,8) 329,8
LIBOR and
associated rates 1 (57,3) 57,3 1 (19,1) 19,1
NIBOR 1 (175,9) 175,9 1 (143,6) 143,6
Money market 1 (20,8) 20,8 1 75,3 (75,3)
Prime 1 100,3 (100,3) 1 18,5 (18,5)
Other1 1 (0,5) 0,5 1 3,3 (3,3)
1
Included in variable rate trade and other receivables for 31 December 2019 was an amount of
R1 651 million relating to a loan that has now been restated as a non-interest bearing instrument based
on the interest rate position existing at 31 December 2019.
Results overview


13.5.2 Currency risk
Currency risk arises on recognised financial assets and liabilities which are
denominated in a currency that is not the entity’s functional currency. The Group aims
to maintain its foreign currency exposure within internally determined parameters,
however, this depends on the market conditions in the geographies where the Group
operates. Group treasury reports on the status of foreign currency positions or
derivatives to the Group Treasury Committee on a regular basis.
Where possible, entities in the Group use forward contracts to hedge their actual
exposure to foreign currency.
Sensitivity analysis
The Group has used a sensitivity analysis technique that measures the estimated
change to profit or loss and to other comprehensive income (OCI), of an instantaneous
10% strengthening or weakening in the rand against all other currencies, from the
rate applicable at 31 December 2020, for each class of financial instrument with all
other variables remaining constant. This analysis is for illustrative purposes only, as in
practice, market rates rarely change in isolation.
The Group is mainly exposed to fluctuations in foreign exchange rates in respect of
the US dollar, euro, Nigerian naira and Iranian rial. This analysis considers the impact
of changes in foreign exchange rates on profit or loss and OCI.
The analysis excludes foreign exchange translation differences resulting from the
translation of Group entities that have functional currencies different from the
presentation currency, into the Group’s presentation currency, which are recognised
in the foreign currency translation reserve.
The analysis has been performed on the basis of the change occurring at the reporting
date and assumes that all other variables, in particular interest rates, remain constant.
Intercompany balances that are denominated in a currency other than the functional
currency of the entity are reflected as either impacting profit or loss before tax, or
equity in the case of loans for which settlement is neither planned nor likely to occur
in the foreseeable future.

13.5.2 Currency risk continued
A change in the foreign exchange rates to which the Group is exposed at the reporting
date would have increased/ (decreased) profit before tax or equity by the amounts shown
below.
Net assets/
(liabilities)
denominated
in foreign
currency
Denominated: Functional currency Rm
2020
US$:ZAR1 8 417
US$:SYP (418)
US$:SDG (1 172)
US$:SSP (6 365)
US$:NGN (19 309)
EUR:SDG (2 100)
EUR:US$ 3 167
US$:GNF (4 561)
US$:ZMK (439)
IRR:ZAR 2 815
EUR:ZAR (258)
NGN:ZAR 4 197
2019
US$:ZAR1 18 583
US$:SYP ( 516)
US$:SDG (1 344)
US$:SSP (5 809)
US$:NGN1 (8 522)
EUR:SDG (1 668)
EUR:US$ 2 509
US$:GNF (4 092)
US$:ZMK ( 104)
IRR:ZAR 2 753
EUR:ZAR 203
¹
Reduced by the impact of the net investment hedge as disclosed in note 18.
Results overview
Increase/(decrease) in profit before tax Increase/(decrease) in OCI
Strength- Strength-
Change in Weakening ening in Change Weakening ening in
exchange in functional functional in exchange in functional functional
rate currency currency rate currency currency
% Rm Rm % Rm Rm
10 841,7 (841,7) 10 – –
10 (12,4) 12,4 10 (29,4) 29,4
10 (28,5) 28,5 10 (88,7) 88,7
10 (48,4) 48,4 10 (588,1) 588,1
10 (1 930,9) 1 930,9 10 – –
10 (1,3) 1,3 10 (208,7) 208,7
10 316,7 (316,7) 10 – –
10 (176,9) 176,9 10 (279,2) 279,2
10 (43,9) 43,9 10 – –
10 281,5 (281,5) 10 – –
10 (25,8) 25,8 10 – –
10 419,7 (419,7) 10 – –
10 1 858,3 (1 858,3) 10 – –
10 (31,9) 31,9 10 (19,7) 19,7
10 (40,8) 40,8 10 (93,6) 93,6
10 (45,9) 45,9 10 (535,0) 535,0
10 (852,2) 852,2 10 – –
10 (1,1) 1,1 10 (165,7) 165,7
10 250,9 (250,9) 10 – –
10 (143,2) 143,2 10 (266,0) 266,0
10 (10,4) 10,4 10 – –
10 275,3 (275,3) 10 – –
10 20,3 (20,3) 10 – –

13.6 Capital management
Management regularly monitors compliance with its financial covenants. In terms of
most of the banking facilities, the Group is required to comply with financial covenants.
These financial covenants differ based on the contractual terms of each facility and
incorporate both IFRS and non-IFRS financial measures. With the exception of MTN
Zambia and MTN Côte d’Ivoire, the Group has complied with its financial covenants
during the current and prior year. For the year ended 31 December 2020, MTN Zambia
breached its debt service cover ratio covenant. As a result, the full related borrowings
of R820 million have been classified as current as at 31 December 2020 within the
Group statement of financial position. On 9 March 2021, the lenders granted
MTN Zambia a waiver of the debt service cover ratio breach, thereby remedying the
breach. For the year ended 31 December 2019, MTN Côte d’Ivoire breached its net
debt: EBITDA covenant. As a result, the full related borrowings of R3 559 million were
classified as current as at 31 December 2019 within the Group statement of financial
position. As at 31 December 2019, the Group had met interest-related covenants, and
these have improved further in the current period. Holdco leverage has increased
since December 2019 due to the weakening of the rand on US dollar denominated
borrowings and cash upstreaming challenges from MTN Nigeria due to limited
availability of foreign currency.
MTN Cameroon, with the support of MTN Group, had been in discussions with its
lender since the beginning of 2020 to restructure a syndicated revolving credit facility
of CFA 30 billion (US$56 million) initially maturing on 8 June 2020. Due to not having
concluded the restructuring by the maturity date, MTN Cameroon was in technical
default in respect of the repayment provisions. This default was subsequently
remedied by a waiver from affected lenders. MTN Cameroon successfully concluded
the restructuring by 31 December 2020. The maturity date of the CFA 30 billion
syndicated revolving credit facility was extended to 8 December 2021 and another of
MTN Cameroon’s syndicated revolving credit facilities of CFA 32,5 billion
(US$61 million) initially due on 15 December 2021 was extended to 16 May 2023.
Under the amended facility agreements, MTN Cameroon will repay each of the
facilities through equal monthly repayments.
14. AUTHORISED COMMITMENTS FOR THE ACQUISITION OF PROPERTY, PLANT,

EQUIPMENT AND SOFTWARE
2020 2019
Rm Rm
29 408 31 273
– Contracted 6 814 6 548
– Not contracted 22 594 24 725
15. INTEREST-BEARING LIABILITIES

2020 2019
Rm Rm
Current borrowings 17 438 15 691
Current liabilities 17 792 15 823
Non-current borrowings 78 457 78 457
96 249 94 280
Results overview

16. ISSUE AND REPAYMENT OF DEBT AND EQUITY SECURITIES

During the year under review the following entities raised and repaid significant debt
instruments:
Raised Repaid Raised Repaid
2020 2020 2019 2019
Rm Rm Rm Rm
Mobile Telephone
Networks Holdings
Limited 12 250 14 512 15 950 14 013
Loan facilities 5 550 9 458 8 000 7 363
General banking
facilities 2 500 2 500 3 700 5 500
Domestic medium term
programme 4 200 2 554 4 250 1 150
MTN International
(Mauritius) Limited – 1 913 – –
Loan facilities – 1 913 – –
MTN Nigeria
Communications Plc 6 182 1 796 15 030 5 792
Long-term borrowings 1 841 1 022 15 030 5 792
Commercial paper
issuance1 4 341 774 – –
Other 4 119 4 434 4 033 3 857
22 551 22 655 35 013 23 662
1
n 8 June 2020, MTN Nigeria issued commercial paper with a face value of NGN20 billion (R881 million)
O
for 182 days and NGN80 billion (R3 460 million) for 270 days.
17. CONTINGENT LIABILITIES

2020 2019
Rm Rm
Uncertain tax exposures 1 796 1 959
Legal and regulatory matters 2 035 2 280
3 831 4 239
Uncertain tax exposures
The Group operates in numerous tax jurisdictions and the Group’s interpretation and
application of the various tax rules applied in direct and indirect tax filings may result
in disputes between the Group and the relevant tax authority. The outcome of such
disputes may not be favourable to the Group. At 31 December 2020, there were a
number of tax disputes ongoing in various of the Group’s operating entities. The most
significant matter relates to a transfer pricing dispute which the Group is contesting
with the South African Revenue Service that relates to the 2009 to 2012 tax years.
Based on internal and external legal and technical advice obtained, the Group remains
confident that it has a robust legal case to contest the exposure.
Legal and regulatory matters
The Group is involved in various legal and regulatory matters, the outcome of which
may not be favourable to the Group and none of which are considered individually
material.
The Group has applied its judgement and has recognised liabilities based on whether
additional amounts will be payable and has included contingent liabilities where
economic outflows are considered possible but not probable.
18. EXCHANGE RATES TO SOUTH AFRICAN RAND

Closing rates Average rates
2020 2019 2020 2019

Foreign currency
to South African
rand:
United States
dollar US$ 14,68 13,98 16,50 14,44
South African
rand to foreign
currency:
Nigerian naira NGN 27,28 26,09 23,24 25,05
Iranian rial1 IRR 17 458,88 8 120,61 10 117,96 7 013,39
Ghanaian cedi GHS 0,40 0,41 0,35 0,38
Cameroon
Communauté
Financière
Africaine franc XAF 36,42 41,78 34,69 40,57
Côte d’lvoire
Communauté
Financière
Africaine franc CFA 36,47 41,78 34,76 40,57
Ugandan shilling UGX 249,19 262,14 225,45 256,68
Syrian pound SYP 85,57 31,33 50,53 30,27
Sudanese pound SDG 3,76 3,23 3,32 3,14
1
SANA rate.
The Group’s functional and presentation currency is rand. The weakening of the
closing rate of the rand against the functional currencies of the Group’s
largest operations contributed to the increase in consolidated assets and liabilities
and the resulting foreign currency translation reserve increase of R4 453 million
(2019: R4 415 million reduction) for the year.
Net investment hedges
The Group hedges a designated portion of its dollar net assets in MTN Dubai for forex
exposure arising between the US$ and ZAR as part of the Group’s risk management
objectives. The Group designated external borrowings (Eurobonds) denominated in
US$ held by MTN (Mauritius) Investments Limited with a value of R27,7 billion
(2019: R25,8 billion). For the period of the hedge relationship, foreign exchange
movements on these hedging instruments are recognised in other comprehensive
income as part of the foreign currency translation reserve (FCTR), offsetting the
exchange differences recognised in other comprehensive income, arising on
translation of the designated dollar net assets of MTN Dubai to ZAR. The cumulative
forex movement recognised in other comprehensive income will only be reclassified to
profit or loss upon loss of control of MTN Dubai. There was no hedge ineffectiveness
recognised in profit or loss during the current or prior year.
Results overview

19. DISPOSAL OF UGANDA TOWER INTERCO B.V. AND GHANA TOWER INTERCO B.V.
On 31 December 2019 the Group concluded an agreement to dispose of its 49% equity
holdings in Ghana InterCo and Uganda InterCo to AT Sher Netherlands Cooperatief
U.A. (ATC). The Uganda InterCo transaction closed on 21 February 2020 for cash
proceeds of $140 million (R2,2 billion1) and realised a profit of R1,3 billion, inclusive of
FCTR gains of R112 million reclassified to profit or loss on disposal. The Ghana Interco
transaction closed on 18 March 2020 for cash proceeds of US$384 million
(R6,6 billion1) and realised a profit of R4,8 billion, after inclusion of FCTR losses of
R1,8 billion reclassified to profit or loss on disposal.
1
ranslated at the effective date of sale. Cash proceeds per the statement of cash flows are translated at
T
the spot rate on the date of receipt of the proceeds.
20. DISPOSAL OF 8% SHAREHOLDING IN MTN ZAMBIA

On 7 October 2020 the Group disposed of 8% shareholding in MTN Zambia taking the
Group’s effective shareholding for accounting purposes from 97,8% to 89,8%. The
proceeds from the disposal amounted to ZMK287 million (R238 million) and realised a
net gain of R180 million recognised in equity as a transaction with non-controlling
interests.
21. NON-CURRENT ASSETS HELD FOR SALE
MTN Syria
In May 2020, the Group committed to a plan to sell MTN Syria to Teleinvest Limited
(TeleInvest), which is the 25% non-controlling shareholder in MTN Syria. Accordingly,
as at 31 December 2020, MTN Syria’s assets and liabilities have been presented as
held for sale due to the Group concluding that the sale was considered to be highly
probable. At 31 December 2020, the Group expected the sale to be concluded within
2021. An impairment loss of R1,1 billion was recognised in profit or loss for the period
due to writing down the carrying amount of the disposal group to its fair value less
costs to sell. MTN Syria was presented as part of the MENA cluster in the segment
information (note 8).
Subsequent to the end of the reporting period, on 25 February 2021, the appointment
of the judicial guardian has significantly reduced the Group’s power to direct
MTN Syria’s relevant activities and therefore, its control over MTN Syria. The Group is
still in the process of understanding its rights and obligations under the judicial
arrangement but to the extent that control is concluded to have been lost, the Group
will derecognise its 75% equity interest in and loans receivable from MTN Syria,
amounting to R955 million at 31 December 2020. In addition, the Group will reclassify
accumulated foreign currency translation losses of R5,1 billion to profit or loss in line
with the accounting policy. On loss of control, the Group will measure its equity interest
in and loans receivable from MTN Syria at fair value.
Included in the 2020 Group results is R2 295 million revenue (1,3% of the Group’s total
revenue) and R574 million CODM EBITDA1 (0,8% of Group’s total CODM EBITDA)
relating to MTN Syria. These amounts exclude the impact of hyperinflation.
Belgacom International Carrier Services (BICS)
The Group has been in discussions regarding a potential sale of its shareholding in
BICS for some time as the investment in associate was not considered a strategic
investment. BICS was accordingly classified as a non-current asset held for sale on
5 August 2020. An impairment loss of R397 million after writing down the carrying
amount of the non-current asset held for sale to its fair value less costs to sell has
been recognised in profit or loss.
Following year-end, the Group concluded an agreement to sell, and fully exited, its
20% investment in BICS. The transaction closed in February 2021 and the Group
received net cash proceeds of EUR99,1 million (R1,8 billion2) and realised a profit of
approximately R1,2 billion, mainly comprising of reclassified FCTR gains which will
form part of EPS, with no impact on HEPS, equity and cash flows.
1
CODM EBITDA is defined in note 8.
2
Translated at the effective date of sale.
21. NON-CURRENT ASSETS HELD FOR SALE continued

The carrying amounts of assets and liabilities that have been reclassified to non-
current assets held for sale were:
2020
Rm
MTN Syria
Property, plant and equipment 1 036
Right-of-use assets 131
Intangible assets 380
Trade receivables and other current assets 588
Cash and cash equivalents 124
Total assets 2 259
BICS
Interest in associate 1 747
Other 10
Non-current assets held for sale 4 016
MTN Syria
Deferred tax and other non-current liabilities 346
Current liabilities 738
Total liabilities 1 084
Net carrying amount of assets held for sale 2 932
Results overview

22. EVENTS AFTER REPORTING PERIOD

22.1 MTN Sudan
On 21 February 2021, the Central Bank of Sudan devalued the official Sudanese
exchange rate to US$ 1: SDG 375,08, which translates to an exchange rate of
approximately ZAR 1: SDG 25,57. The devaluation brought the official rates in line with
parallel market rates and is an effort to eliminate parallel market activity.
As Sudan is a hyperinflationary economy, the Group translates MTN Sudan’s results
at the closing exchange rate. The devaluation of the Sudanese Pound will result in
lower earnings consolidated from MTN Sudan based on the closing rate, a reduction
in net assets consolidated and a resulting lower equity in the form of higher foreign
currency translation losses.
23. CHANGES IN ACCOUNTING POLICIES
23.1 Release of foreign currency translation reserves
The Group implemented a voluntary accounting policy change relating to the release
of FCTR.
In the first quarter of 2019, the Group announced that it will be optimising its portfolio
through an asset realisation programme aimed at simplifying the Group, reducing risk
and improving shareholder returns and in March 2020 the Group announced that this
programme has been further expanded. The strategic intent to dispose of certain
investments in subsidiaries and associates over the medium term has resulted in a
review of the most appropriate approach in accounting for these disposals.
IAS 21 The Effects of Changes in Foreign Exchange Rates (IAS 21) requires that on the
disposal of a foreign operation, the cumulative amount of the exchange differences
relating to that foreign operation, recognised in other comprehensive income and
accumulated in the FCTR in equity, shall be reclassified from equity to profit or loss as
a reclassification adjustment when the gain or loss on disposal is recognised. Two
accepted methods exist for recycling FCTR where the investments are held by an
intermediate parent with a different functional currency than the entity disposed of
and the ultimate parent. These methods that are referred to as part of the basis for
conclusions (BC 35 – BC 39) in IFRIC 16 Hedges of a Net Investment in a Foreign
Operation are as follows:
Step-by-step method – FCTR is recycled based on the appreciation or devaluation
●
in the functional currency of the investment disposed of against the functional

currency of the intermediate parent and translated into the functional currency of
the ultimate parent.
Direct method – FCTR is recycled based on the appreciation or devaluation in the
●
functional currency of the investment disposed of against the functional currency

of the ultimate reporting entity.
The Group has historically applied the step-by-step method on disposals to date. The
functional currencies of some of the Group’s intermediate holding companies are US
dollar and, as a result, the FCTR reclassified on the step-by-step approach is
determined based on the appreciation or devaluation of the currencies of the entities
disposed of against the US dollar and translated into the functional currency of the
ultimate parent. As the Group’s functional and presentation currency is ZAR and the
FCTR is based on the appreciation or devaluation of the ZAR against the equity of the
underlying operations in the Group, the direct method provides a more reliable and
relevant view of the gain or loss realised in the context of the Group’s ZAR functional
currency. The Group has accordingly changed its accounting policy on the
reclassification of FCTR on disposal of foreign operations held by an intermediate
parent where the functional currency of the foreign operation and intermediate
parent is different to that of the ultimate parent from the step-by-step method to the
direct method.
23. CHANGES IN ACCOUNTING POLICIES continued

23.1 Release of foreign currency translation reserves continued
This change in accounting policy impacted the FCTR gains and losses reclassified to profit
or loss in the current year on disposal of the Group’s investments in associates, Ghana
InterCo and Uganda InterCo, and in the prior years on disposal of the Group’s interests in
foreign operations, as disclosed below:
Impacts on the financial statements
Condensed consolidated income 2020 2019
statement (extract) Rm Rm
Gain on disposal/dilution of investment in joint
ventures and associates 831 –
Other income – 137
Operating profit 831 137
Profit before tax 831 137
Income tax expense – –
Profit after tax 831 137
Attributable to:
Equity holdings of the company 831 137
Non-controlling interests – –
Results overview

23. CHANGES IN ACCOUNTING POLICIES continued

23.1 Release of foreign currency translation reserves continued
Condensed consolidated statement of 2020 2019
comprehensive income (extract) Rm Rm
Reclassification of foreign currency translation
differences on loss of control and joint control (831) (137)
Total comprehensive income for the year – –
31 December 31 December 1 January

Condensed consolidated statement 2020 2019 2019
of financial position (extract) Rm Rm Rm
Retained earnings 3 116 2 285 2 148
Other reserves (3 116) (2 285) (2 148)
Total equity – – –
The impact of the change in policy on earnings per share is a 46 cents increase
(2019: 7 cents increase) and diluted earnings a 46 cents increase (2019: 7 cents
increase). The change in accounting policy had no impact on headline earnings or
cash flows in the current or prior comparative year.
Administration
MTN GROUP LIMITED MTN Group sharecare line

Incorporated in the Republic of South Africa Toll free: 0800 202 360 or +27 11 870 8206
if phoning from outside South Africa
Company registration number:
1994/009584/06 Transfer secretaries
ISIN: ZAE000042164 Computershare Investor Services
Share code: MTN Proprietary Limited
Registration number 2004/003647/07
Board of directors Rosebank Towers, 15 Biermann Avenue
MH Jonas* Johannesburg, 2001
RT Mupita¹ PO Box 61051, Marshalltown, 2107
RA Shuter¹ (resigned 31 August 2020)
PB Hanratty²* Joint auditors
S Kheradpir³ PricewaterhouseCoopers Inc.
AT Mikati⁴# Waterfall City, 4 Lisbon Lane, Jukskei View
SP Miller5* Midrand, 2090
NL Sowazi*
NP Mageza* (resigned 30 April 2020) SizweNtsalubaGobodo Grant Thornton Inc.
MLD Marole* (resigned 30 April 2020) 20 Morris Street East,
KC Ramon* (resigned 30 September 2020) Woodmead, 2191
S Mabaso-Koyana* (appointed 1 September 2020)
BS Tshabalala* Lead sponsor
KDK Mokhele* JP Morgan Equities (SA) Proprietary Limited
SLA Sanusi6* 1 Fricker Road, cnr Hurlingham Road, Illovo,
VM Rague7* 2196
1
Executive Joint sponsor
2
Irish
3
American Tamela Holdings Proprietary Limited
4
Lebanese Ground Floor, Golden Oak House,
5
Belgian 35 Ballyclare Drive, Bryanston, 2021
6
Nigerian
7
Kenyan
* Independent non-executive director
#
Non-executive director
Group secretary Attorneys

PT Sishuba-Bonoyi Webber Wentzel
Private Bag X9955, Cresta, 2118 90 Rivonia Road, Sandton, 2196
PO Box 61771, Marshalltown, 2107
Registered office Contact details

216 – 14th Avenue Telephone: National 011 912 3000
Fairland International +27 11 912 3000
Gauteng, 2195 Facsimile: National 011 912 4093
International +27 11 912 4093
American depository receipt (ADR) programme E-mail: [email protected]

Cusip No. 62474M108 Website: http://www.mtn.com
ADR to ordinary share 1:1 Date of release: 10 March 2021
Depository: The Bank of New York

101 Barclay Street, New York NY, 10286, USA
www.mtn.com
Tel: +27 83 912 3000 / +27 83 869 3000

Innovation Centre
216 14th Avenue
Fairland, 2195
South Africa

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Annual financial results

for the year ended 31 December 2020

Leading digital solutions for Africa’s progress

Leading digital solutions for Africa’s progress

Reported EBITDA margin

IFRS reported HEPS Group leverage at 0,8x

Suspension of Enhanced medium-term

Group president and CEO, Ralph Mupita comments:

Digital revenue increased by 27,1%*, with an acceleration in growth in H2, supported by

Asset Realisation Programme and portfolio transformation

MTN’s broader portfolio transformation ambition is to accelerate these objectives to actualise

Also in H2, we completed the localisation of an 8% shareholding in MTN Zambia, netting

Regulatory and legal considerations

MTN Afghanistan anti-terrorism complaint

Spectrum in South Africa

MTN Ghana classified a significant market power

MTN Syria placed under judicial guardianship

COVID-19 pandemic impact on the business

Network and supply chain

Funding and liquidity

We maintain a prudent approach to liquidity management and focus on cash preservation. At

Strategy update: Ambition 2025 – ‘Leading digital solutions for

Capital allocation priorities

Dividend and dividend policy update

Capex guidance 2021 (including the impact of IFRS 16)

– 179 361 – (2 925) – – 176 436 17,2

(22) 76 315 – (1 186) – – 75 129 19,4

– (35 254) – 951 – (174) (34 477) (9,0)

– 1 142 – 69 284 – 1 495 54,2

- 151 460 - (905) - - 150 555

(83) 63 188 - (282) - - 62 906

- (32 458) - 598 - 217 (31 643)

- 668 - 466 (165) - 969

Revenue and service revenue

Table 2: Group service revenue by country

Table 3: Group revenue analysis

Table 4: Group data revenue1

Table 5: Group fintech revenue2

Table 6: Group digital revenue3

Depreciation, amortisation and impairment of goodwill

Net finance costs

Share of results of associates and joint ventures after tax

Actual Actual Prior Constant

Net Net debt/ Net debt/

MTN SA delivered solid overall performance underpinned by strong commercial and

The consumer postpaid business performed strongly in a highly competitive trading

Wholesale revenue declined by 16,4% because of the discontinuation of our roaming

Southern and East Africa and Ghana (SEAGHA)

MTN’s SEAGHA region delivered a healthy performance despite a substantial downturn in

West and Central Africa (WECA)

Middle East and North Africa (MENA) (excluding Iran)

Associates, joint ventures and investments

Investments in tower and infrastructure companies

Prospects and guidance

Senior management and Board changes

For and on behalf of the board

Date of release 10 March 2021

The audited summary group financial statements have been

Leading digital solutions for Africa’s progress

SUMMARY CONSOLIDATED FINANCIAL STATEMENTS

● he Group’s exposure and management of credit risk relating to its customers as

Included in investments in the statement of financial position is an equity investment