Mtn Annual Report

Topics: Balance sheet, Asset, Revenue Pages: 48 (5910 words) Published: March 9, 2013
Welcome to the New World
MTN Group Limited
Final results for the year ended 31 December 2012

01 Strategic and operational overview Sifiso Dabengwa Group President and CEO 02 Financial overview Nazir Patel Group Chief Financial Officer 03 Looking ahead Sifiso Dabengwa Group President and CEO

Strategic and operational overview

MTN vision and mission

Creating and managing stakeholder value
Creating value for our shareholders, employees and communities in a sustainable way and in accordance with the values of MTN

Our vision: To lead the delivery of a bold, new Digital World to our customers

Creating a distinct customer experience
A unique MTN branded user experience that is based on understanding and segmenting our customers

Driving sustainable growth
Driving growth in voice while developing new opportunities in data, enterprise and other opportunistic sectors as our markets mature

Transforming our operating model
Allow our front office functions to be more customer focused through more responsive, supportive and efficient back office functions

Our mission: To make our customers’ lives a whole lot brighter

Innovation and best practice
Operating under the principle of innovation in everything we do and looking for opportunities to share and apply best practices


Strategic considerations
Creating a distinct customer experience

Network quality

Brand preference Efficient distribution

Customer Experience
Voice and data services Effective segmentation and customer analytics Experienced people


Strategic considerations
Driving sustainable growth


Data and related services

ICT evolution

− Billed traffic volumes increased
24.6% YoY supported by ongoing customer engagement

− Growing data and related
services a key focus for the Group over the medium term

− Focus on ICT services for SME
and corporate segments

− Voice revenues grew 4.0%, on
constant currency basis impacted by the high levels of price competition

− In 2012, total data traffic on MTN
network increased 65.9% YoY to 30,521TB

− Ongoing infrastructure
investment allows us to leverage off key products and services

− Low mobile penetration of just
over 50% to support further growth

− Data revenues increased 58.5%
YoY while SMS revenues increased 11.6%

− Integration of Enterprise
Business into MTN South Africa, provides a more holistic offering to our clients

− Addressing network capacity and
quality to meet traffic growth challenges

− Important revenue driver over the
medium term as voice penetration slows and competition increases

− Group Enterprise Business Unit
to drive ICT products and services across the Group .

− Investment in 3G and
modernisation of networks


Strategic considerations
Transforming our operating model

Tower Company Transaction − Recent tower deals concluded in Cameroon, Ghana, Ivory Coast and Uganda

− Ongoing evaluation of tower opportunities in other operations driven by market specific requirements

Infrastructure sharing − Passive sharing at commercial rates in all operations − Fibre and transmission infrastructure Procurement transformation project − Capex procurement spend centralised − Single integrated supply chain across Group progressing well Back office rationalisation − Focus on transactional activities − Positive impact on margins in medium term


Group highlights

15.1% to 189.3 million Group subscribers

10.9% to R135,112 million *Revenue

8.2% to R57,977 million ** EBITDA

1.9% to 1089.1 cents HEPS

per share of 503 cents Final dividend

R2,088 million completed Share buy back

* On a constant currency restated using 2011 average exchange rates revenues increased 8.5% to R132,274m ** Excluding the impact of the tower transaction R587 million


2012 in review
A challenging year but well positioned for 2013

Organisational structure successfully implemented –...
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