MTN Group sustainability assurance 2012

Description of KPIs for reporting purposes.

Reporting period: 1 January – 31 December 2012

KPI

Description of KPI

Quality of service

Quality of service is a technical measure used to judge 2G and 3G network performance regarding the end-user customer experience. As revenue and customer satisfaction is related to network performance and quality, the following aspects will be used to determine if MTN is meeting end-user demands:

Network up time as measure by traffic channel availability (TCH availability all hours (%)).
Call services measured with call setup success rate (CSSR) all h
Calls dropped using the definition for dropped call rate (DCR) all hours.

The rates reported are for the Group level, and for the reporting period 1 January - 31 December 2012.

Employee culture survey result

The MTN Group employee culture survey is conducted annually across each of the MTN Group's 21 operating countries (referred to as OPCOs), and within the MTN Group Head Office (management company referred to as MANCO). The survey is conducted at a business unit level and at a team level within the business unit.

The survey reviews 14 dimensions that assess the extent to which MTN's SFTE (Standard Full Time Equivalent) employees are a fit for the Company's operational and competitive requirements as defined by the Group's vision and strategy:

Employee engagement
Leadership
Employee development
Performance management
Employee diversity
Pay and benefits
Company image
Competitive position
Innovation
Work organisation and efficiency
Direct supervisor
Communication
Goals and objectives
Values

MTN fraud management framework implementation

The MTN fraud risk management framework (FRM) outlines the minimum requirements for proactive and reactive fraud risk management across the MTN Group. Implementation of the FRM guideline is considered in place should the following proactive and reactive actions be reported in the operating company's (OPCO's) quarterly audit reporting committee packs:
Proactive reporting requirements: Top fraud risks identified and rated (mandatory) and awareness raising, training activities undertaken (other best practice).
Reactive reporting requirements: Fraud investigation is taking place (mandatory) and feedback on whistle-blowing/tip-offs is recorded (other best practice).

MTN whistleblower hotline data

The anonymous tip-offs line is managed by a third party, who collects the tip-offs and reports to MTN. MTN is responsible for the investigation of the tip-off. The tip-off items include fraudulent tip-offs and other administrative matters.

A matter is regarded as received when the call is logged on the anonymous tip-off line and MTN informed of such matter reported. It is regarded as reviewed when MTN has the information of the tip-off available to investigate the matter. A matter will be regarded as reviewed, as information to investigate the matter is available, but the issue may not yet be resolved.

MTN CSI spend

MTN Group's corporate social investment (CSI) activities are implemented through two vehicles: MTN foundations in some of the countries in which MTN operates, and 21 Days of Y'ello Care (an employee volunteering initiative undertaken over a set period of 21 days annually). MTN CSI comprises of financial, in-kind and employee volunteering initiatives undertaken by the MTN Group and its operations for the benefit of communities and other stakeholders in the countries in which MTN operates.

The following areas of spend are recognised for the purposes of CSI reporting:

All direct financial and in-kind contributions (financially quantifiable) to initiatives in the following sectors:

–	Education, including non-commercial sponsorships and bursaries
–	Health, including non-commercial sponsorships and bursaries
–	National priority foundation investment, which should ideally be aligned to the millennium development goals.

Economic Empowerment initiatives
All employee volunteering initiatives authorised and approved annually by the Group stakeholder relations CSI function, in terms of the 21 Days of Y'ello Care programme. Employee volunteering time is calculated by reports from employees, who are required to provide average times allocated to project support during the 21 days.
CSI spending excludes investment with a direct marketing revenue benefit, commercial and political sponsorships
CSI spend includes operating expenses and management fees associated with the running of foundation and volunteering activities, where these are included in the foundation's trial balance and general ledger account.