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Five-year financial review

Income statement   2012
US$m1		   CAGR2
%		   2012
Rm		       2011
Rm		   2010
Rm		   2009
Rm		   2008
Rm		  
Revenue   16 545   7   135 112       121 884   114 684   111 947   102 526  
Other income   107   >100   894       1 458   –   –   –  
Operating expenses   (9 480)   7   (77 480)       (68 689)   (67 378)   (65 717)   (59 135)  
Reversal of impairment/(impairment)                                  
of property, plant and equipment   4   >100   38       97   231   (167)   (225)  
EBITDA   7 176   8   58 564       54 750   47 537   46 063   43 166  
Depreciation and amortisation   (2 107)   8   (17 246)       (15 459)   (15 368)   (14 475)   (12 759)  
Impairment of goodwill   –   –   –       (31)   (32)   –   –  
Operating profit   5 069   8   41 318       39 260   32 137   31 588   30 407  
Net finance costs   (505)   21   (4 157)       (1 582)   (4 094)   (5 810)   (1 917)  
Share of results of associates   (22)   (>100)   (180)       (38)   52   (5)   –  
Profit before tax   4 542   7   36 981       37 640   28 095   25 773   28 490  
Income tax expense   (1 594)   3   (12 913)       (13 853)   (11 268)   (8 612)   (11 355)  
Profit after tax   2 948   9   24 068       23 787   16 827   17 161   17 135  
Profit after tax attributable to                                  
– Equity holders of the Company   2 536   8   20 704       20 754   14 300   14 650   15 315  
– Non-controlling interests   412   17   3 364       3 033   2 527   2 511   1 820  
                                   
Headline earnings   2 452   6   20 018       19 811   14 011   14 869   15 603  

1 The income statement and the statement of financial position have been converted at an average R/US$ rate of 8,16 and a closing rate of 8,47 respectively.
2 Compound annual growth rate.

EBITDA (R million)   Headline earnings and dividends
per share (cents)
EBITDA (R million)   Headline earnings and dividends per share (cents)

 

Statement of financial position   2012
US$m		   CAGR
%		   2012
Rm		   2011
Rm		   2010
Rm		   2009
Rm		   2008
Rm		  
Property, plant and equipment   9 152   5   77 485   71 610   63 361   67 541   64 193  
Goodwill and intangible assets   4 008   (7)   33 935   34 540   30 266   36 064   45 786  
Investments and loans   973   15   8 240   6 353   4 693   5 291   4 683  
Deferred tax assets   170   22   1 437   1 284   1 407   1 317   657  
Bank balances, deposits and                              
restricted cash   4 495   7   38 051   45 832   36 232   24 741   28 738  
Other current assets   2 627   (4)   22 236   21 789   18 827   21 283   26 049  
Total assets   21 425   2   181 384   181 408   154 786   156 237   170 106  
Equity attributable to equity holders                              
of the Company   10 513   4   89 006   88 897   71 855   70 011   76 386  
Non-controlling interests   459   (2)   3 881   3 802   2 219   2 855   4 156  
Total equity   10 972   4   92 887   92 699   74 074   72 866   80 542  
Interest-bearing liabilities   3 843   (6)   32 532   34 016   35 328   36 917   41 590  
Non-interest-bearing liabilities   5 573   2   47 183   46 657   38 344   40 788   42 985  
Deferred tax liabilities   1 037   15   8 782   8 036   7 040   5 666   4 989  
Total liabilities   10 453   –   88 497   88 709   80 712   83 371   89 564  
Total equity and liabilities   21 425   2   181 384   181 408   154 786   156 237   170 106  

Total assets (R million)   Equity (R million) and return (%)
Total assets (R million)   Equity (R million) and return (%)

Statement of cash flows 2012
US$m		   CAGR
%		   2012
Rm		   20111
Rm		   20101
Rm		   20091
Rm		   20081
Rm		  
Net cash in flows from operating activities 3 073   (5)   25 078   25 227   32 532   33 581   30 257  
Net cash used in investing activities (3 315)   –   (27 059)   (20 616)   (15 701)   (33 192)   (27 177)  
Net cash (used in)/from financing activities (706)   (>100)   (5 759)   (9 386)   141   1 775   4 271  
Net (decrease)/increase in cash and cash equivalents (948)   (>100)   (7 740)   (4 775)   16 972   2 164   7 351  
Cash and cash equivalents at beginning of the year 4 364   23   35 213   35 907   22 646   25 596   15 546  
Exchange (losses)/gains on cash and cash equivalents (400)   (>100)   (1 942)   4 081   (3 711)   (5 114)   2 699  
Cash and cash equivalents at end of the year 3 016   –   25 531   35 213   35 907   22 646   25 596  
Statement of cash flows - extracts                            
Cash generated from operations 7 089   7   57 856   50 277   50 536   49 632   44 836  
Dividends paid to equity holders of the Company (1 828)   56   (14 919)   (11 722)   (6 313)   (3 381)   (2 536)  
Acquisition of property, plant and equipment (2 766)   (4)   (22 572)   (14 103)   (15 343)   (27 720)   (26 896)  

1 Dividends paid to non-controlling interests were reclassified from financing activities to operating activities to include all dividends paid in operating activities.

    CAGR
%		   2012   2011   2010   2009   2008  
Performance per ordinary share                          
Basic earnings (cents)   8   1 126,4   1 119,5   776,2   791,4   821,0  
Diluted earnings (cents)   9   1 119,5   1 110,8   764,5   781,5   806,1  
Headline earnings (cents)   7   1 089,1   1 068,6   760,6   803,2   836,5  
Dividends (cents)   46   824,0   749,0   500,0   192,0   181,0  
Net asset value – book value (rands)1   4   47,3   47,2   38,1   38,2   41,0  
Returns and profitability ratios                          
Return on assets (%)2       22,8   23,3   20,7   19,4   21,3  
Return on average shareholders' funds (%)3       22,5   24,6   19,8   20,3   25,2  
EBITDA margin (%)       43,3   44,9   41,5   41,1   42,1  
Enterprise value/EBITDA multiple (times)4       5,8   5,2   5,4   5,3   5,1  
Effective taxation rate (%)       34,9   36,8   40,1   33,4   39,9  
Solvency and liquidity ratios                          
Gearing (%)5       (5,9)   (12,7)   (1,2)   16,7   16,0  
Interest cover (times)6       4,1   5,9   5,2   2,6   3,5  
Dividend cover (times)7       1,3   1,4   1,5   4,2   4,6  
Net (cash)/debt to EBITDA8       (0,1)   (0,2)   –   0,3   0,3  
Operating cash flow/revenue (%)       42,8   41,2   44,1   44,3   43,7  
Share statistics                          
Number of ordinary shares in issue (million)                          
– at year-end   –   1 883   1 885   1 885   1 841   1 868  
– weighted average during the year   –   1 838   1 854   1 842   1 851   1 865  
Closing price (cents per share)   13   17 760   14 373   13 442   11 790   10 850  
Market capitalisation (Rm)   13   334 507   270 904   253 318   216 999   202 385  
US dollar to rand exchange rates                          
Average   –   8,16   7,17   7,34   8,32   8,13  
Closing   (2)   8,47   8,07   6,61   7,39   9,35  

Definitions

1 Ordinary shareholders' interest divided by the number of ordinary shares in issue at year end.
2 Operating profit as a percentage of the average of the opening and closing balances of total assets.
3 Headline earnings as a percentage of the average of the opening and closing balances of ordinary shareholders' interest.
4 Market capitalisation less net (cash)/debt (interest-bearing liabilities less bank balances, deposits and cash) divided by EBITDA.
5 Net (cash)/debt as a percentage of total equity.
6 Operating profit divided by finance costs.
7 Headline earnings divided by total dividend.
8 Interest-bearing liabilities less cash, divided by EBITDA.

Market capitalisation (R million)   Closing share price (R)
Market capitalisation (R million)   Closing share price (R)

Share price performance
Share price performance

Non-financial information   CAGR
%		   2012   2011   2010   2009   2008  
Countries in which MTN has GSM licences       21   21   21   21   21  
Subscriber numbers (million)   20   189,3   164,5   141,6   116,0   90,7  
Countries in which MTN has largest market share       15   15   15   15   13  
Employees 3   1   26 716   24 252   26 055   26 361   25 900  
CO2 emissions from energy use (tonnes CO2e)       1 040 723   950 564   1 127 254   565 861   N/A  
Operational information                          
South Africa                          
Mobile penetration (%)       131   120   105   103   97  
Market share (%)       38   34   36   32   36  
Subscribers (million)   10   25   22   19   16   17  
ARPU (ZAR) 1   (7)   122   134   154   126   164  
EBITDA margin (%)       35   35   34   31   33  
Capex/revenue (%)       16   11   11   18   15  
Nigeria                          
Mobile penetration (%)       62   54   49   42   36  
Market share (%)       48   50   52   50   44  
Subscribers (million)   20   47   42   39   31   23  
ARPU (US$) 1   (13)   9   10   11   12   16  
EBITDA margin (%)       58   62   63   59   58  
Capex/revenue (%)       36   18   14   31   30  
Nigerian naira average foreign exchange rate   8   19,50   21,76   20,67   17,83   14,54  
Nigerian naira closing foreign exchange rate   5   18,47   20,10   23,00   20,29   15,07  
Ghana                          
Mobile penetration (%)       91   78   67   61   50  
Market share (%)       51   52   53   55   55  
Subscribers (million)   19   12   10   9   8   6  
ARPU (US$) 1   (16)   6   7   7   8   12  
EBITDA margin (%) 2       37   37   44   45   46  
Capex/revenue (%)       16   14   54   46   31  
Ghanaian cedi average foreign exchange rate   15   0,23   0,21   0,20   0,17   0,13  
Ghanaian cedi closing foreign exchange rate   14   0,22   0,20   0,22   0,19   0,13  
Iran                          
Mobile penetration (%)       113   103   92   80   61  
Market share (%)       47   45   44   40   37  
Subscribers (million)   27   41   35   30   23   16  
ARPU (US$) 1   (6)   7   8   8   8   9  
EBITDA margin (%)       44   43   41   35   30  
Capex/revenue (%)       9   11   18   44   56  
Iranian rial average foreign exchange rate   10   1 686   1 474   1 401   1 195   1 152  
Iranian rial closing foreign exchange rate   29   2 905   1 378   1 566   1 354   1 048  
Syria                          
Mobile penetration (%)       59   58   50   46   38  
Market share (%)       45   46   45   45   46  
Subscribers (million)   11   6   6   5   4   4  
ARPU (US$) 1   (17)   9   14   16   18   19  
EBITDA margin (%)       23   26   24   20   28  
Capex/revenue (%)       11   7   6   11   16  
Syrian pound average foreign exchange rate   11   8,34   6,54   6,39   5,59   5,47  
Syrian pound closing foreign exchange rate   20   10,22   6,71   7,13   6,20   4,96  
Cameroon                          
Mobile penetration (%)       62   54   40   39   33  
Market share (%)       56   55   60   61   62  
Subscribers (million)   15   7   6   5   4   4  
ARPU (US$) 1   (14)   6   7   8   9   11  
EBITDA margin (%)       46   44   49   51   48  
Capex/revenue (%)       19   10   16   23   22  
Cameroon Communauté Financière Africaine                          
franc average foreign exchange rate   2   62,20   65,67   67,26   56,58   56,77  
Cameroon Communauté Financière Africaine                          
franc closing foreign exchange rate   4   58,70   62,73   74,20   61,89   49,87  
Ivory Coast                        
Mobile penetration (%)       77   75   64   51   41  
Market share (%)       36   37   38   38   40  
Subscribers (million)   11   6   6   5   4   4  
ARPU (US$) 1   (12)   6   6   7   9   10  
EBITDA margin (%)       40   42   33   29   39  
Capex/revenue (%)       22   12   24   28   30  
Côte d'Ivoire Communauté Financière Africaine                          
franc average foreign exchange rate   3   62,31   64,81   67,43   57,08   54,77  
Côte d'Ivoire Communauté Financière Africaine                          
franc closing foreign exchange rate   4   58,70   62,73   76,07   61,89   50,55  
Uganda                        
Mobile penetration (%)       41   42   34   25   22  
Market share (%)       53   52   56   63   52  
Subscribers (million)   19   8   8   6   5   4  
ARPU (US$) 1   (16)   4   4   5   6   8  
EBITDA margin (%) 2       36   35   45   44   45  
Capex/revenue (%)       13   26   21   34   50  
Uganda shilling average foreign exchange rate   9   303,08   347,60   295,99   242,29   215,59  
Uganda shilling closing foreign exchange rate   11   312,26   306,73   348,03   256,43   206,87  
Sudan                        
Mobile penetration (%)       73   53   39   34   23  
Market share (%)       32   27   21   28   28  
Subscribers (million)   28   8   6   3   4   3  
ARPU (US$) 1   (19)   3   5   5   5   7  
EBITDA margin (%)       28   22   17   20   15  
Capex/revenue (%)       62   49   41   34   57  
Sudanese pound average foreign exchange rate   12   0,43   0,36   0,34   0,29   0,27  
Sudanese pound closing foreign exchange rate   21   0,52   0,33   0,40   0,32   0,24  

1 Annual ARPU.
2 Excluding profit on tower sales.
3 Total number of employees.
N/A – not available
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