Integrated annual report (IAR) Full financial statements Downloads
     


Definition of KPIs for reporting purposes

Reporting period: 1 January – 31 December 2013

  KPI   Description of KPI
  MTN Group employee culture survey result   The MTN Group employee culture survey is conducted annually across each of the MTN Group’s 22 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 Group fraud
risk management
framework (FRM)
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 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 Group whistle-blower 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-offs line and MTN informed of such matter reported.
       
  MTN Group
foundation’s 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 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 ideally should be aligned to the millennium development goals.
• Economic empowerment initiatives.
• CSI spending excludes investment with a direct marketing revenue benefit, commercial and political sponsorships, as well as 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.
• 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.
       
  Energy spend in
MTN Nigeria
  MTN Nigeria’s energy spend figure (ZAR) is a sum of BTS sites and other facilities owned by MTN Nigeria.

For BTS sites, the following explains the spend figure reported:

• Actual payments for BTS electricity.
• Actual payments for BTS diesel fuel (including diesel delivery costs).
• For other facilities, the following explains the spend figure reported:
– Actual payments for electricity (including variable costing scales such as peak hour rates, and fixed costs related to consumption).
– Actual diesel consumed by MTN Nigeria facilities, multiplied by a diesel rate (including diesel delivery costs) per region.

In all cases, energy costs not included, as billed by a local or national provider or lessor, include the following:

• Municipal service charge.
• Business and/or sundry business charge.
• Value added or other tax including carbon tax.
       
  Energy use in MTN
Nigeria
  MTN Nigeria’s energy use figure is derived from use at BTS sites and other facilities owned by MTN Nigeria.

For BTS sites, the following explains the use figure reported:

• Expected electricity use in kWh based on reasonable, agreed figures per BTS site, calculated from aspects including connectivity to the national power grid.
• Expected diesel use in kℓ based on reasonable, agreed figures per BTS site, calculated from aspects including generator capacity, site load, and location characteristics.

For other facilities, the following explains the spend figure reported:

• Actual electricity use in kWh for switches, data centres, head office and regional offices.
• Actual diesel use in kℓ for switches, data centres, head office, regional offices, and Company-owned vehicle use.
       
  Carbon emissions
for MTN Nigeria:
Scope 1 and Scope 2
  MTN accounts for its greenhouse gas (GHG) emissions in terms of the scope and definitions indicated by the Carbon Disclosure Project (CDP). The unit of measure is expressed as metric tonnes CO2e.

The scope of emissions are as indicated in the CDP, and includes direct emissions (Scope 1) and indirect emissions (Scope 2). All MTN operations under the direct (majority) financial and/or management control of the MTN opco are included in the calculation.