Our Group performance and outlook

Here we provide an analysis of the Group’s performance against strategic themes in the year. Using some of the main key performance indicators (KPIs) that we measure, we rate the Group’s 2015 performance against targets set for the year and indicate the material issues, capitals and stakeholders that are most relevant to each KPI. We also provide information on the focus in the years ahead, and list the executives whose primary responsibility it was to deliver on each KPI in 2015.

Strategic theme

What we measure (KPIs) and 2015 target

2015 performance

2015 Status

Relevant capital

Relevant stakeholders

Primary executive responsibility in 2015

Short to medium-term focus

Creating and managing stakeholder value

5% to 15% dividend growth Opportunistic share buy-backs

Grew dividend by 5,2%

Financial

Shareholders

Brett Goschen

A minimum dividend of 700 cents per share is intended for 2016, depending on the outcome of the Nigeria issue and is at the discretion of the board. This takes into consideration the Nigeria regulatory fine and the dollar liquidity situation in Nigeria Opportunistic share buy-backs

Increase in positive media sentiment by 4% from 2014 baseline

An improved plan to increase positive media sentiment showed encouraging results although negative sentiment spiked in Q2 2015 and Q4 2015 as a result of the industrial strike action in MTN South Africa and the MTN Nigeria regulatory fine. Issue management councils have been set up in 10 operations

Social and relationship

All

Paul Norman

Improve corporate reputation through the continued establishment of issue management councils, improved stakeholder management and media engagement

Statistical improvement on vital behaviours in the Group culture audit

2% improvement in vital behaviours in the Group culture audit

Human

Employees

Paul Norman

Further embed vital behaviours across the Group

Creating a distinct customer experience

Net Promoter Score improvements Opportunistic share buy-backs

Improved 5% from the 2014 base

Social and relationship

Customers

Jyoti Desai Michael Ikpoki^ Mteto Nyati Zunaid Bulbulia^

Improvement in all markets relative to competitors Focus on customer experience, value, service and billing

17,5 million net additions

9 million net additions, affected by the disconnection of subscribers related to registration requirements

Social and relationship

Customers

Jyoti Desai Michael Ikpoki^ Mteto Nyati Zunaid Bulbulia^

Improve subscriber registration processes. Diversify products and deliver excellent services 12,5 million net additions guidance for 2016

Implement core managed services

Network managed services rolled out in seven opcos

Social and relationship

Customers

Jyoti Desai

Continue the rollout of managed services and improve network customer experience with vendors

Driving sustainable growth

Grow MTN Mobile Money (smaller operations)

9,3 million active subscribers

Financial

Customers

Jyoti Desai Michael Ikpoki^ Mteto Nyati Zunaid Bulbulia^

Improve Mobile Money revenues in key markets Focus on systems

Increase new revenue streams (enterprise, digital and MFS) – Target of US$2,4 billion

New revenues of US$1,8 billion

Financial

Shareholders, customers

Jyoti Desai Michael Ikpoki^ Mteto Nyati Zunaid Bulbulia^

Focus on growing non-voice revenues

Grow Enterprise Business Unit (EBU) revenue 30% YoY

Exceeded target – growth of 33% YoY

Financial

Shareholders, customers

Jyoti Desai Michael Ikpoki^ Mteto Nyati Zunaid Bulbulia^

Grow ICT revenues in key markets

M&A and partnerships

Further investment in Africa Internet Holdings; acquisition of Autopage’s subscriber base and SmartVillage and disposal of MTN Ivory Coast shareholding (8%) to fulfil licence requirement Entered into Telefonica strategic partnership agreement

Financial

Business partners

Karel Pienaar^

Explore adjacent business opportunities

Transforming our operating model

Group EBITDA margin of 44,6%

Achieved margin of 34,6%, including Nigeria fine adjustment

Financial

Shareholders, employees

Brett Goschen Sifiso Dabengwa^

Improve Group EBITDA margin by driving cost efficiency initiatives

Realisation of transformation benefits

Three opcos are live on the shared services platform

Human

Shareholders, employees, suppliers, social and relationship

Brett Goschen Jyoti Desai

Improve efficiencies in HR, finance and supply chain

Improve procurement savings by more than 7%

Procurement savings improved by 25% YoY

Financial

Suppliers

Brett Goschen

Leverage established procurement companies and continue to ensure the best quality at the best price

Improve capex efficiency and effectiveness in South Africa Improve capex efficiency and effectiveness in Nigeria

I ncreased capex 92,9% in South Africa         Sold towers in Nigeria and retained a stake in TowerCo

Financial, Environmental

Shareholders, communities

Mteto Nyati Michael Ikpoki^

Monitor profitability of capex Improve quality of networks

Innovation and best practice

Security framework rollout and adoption into standard applications

80% of countries rolled out security framework and key internal audit issues closed

Financial

Shareholders, customers

Jyoti Desai

Ensure the adoption of the Group information security policy controls

ICT: Enterprise BSS standardisation and M2M strategy

Business Support Systems: Low-level design sign-off M2M platform ready for services

Financial

Customers, shareholders

Jyoti Desai

Continue platform and opco deployments

Digital readiness (services migration and deployment)

Digital readiness platforms implemented and rolled out to four opcos

Financial

Customers, shareholders

Jyoti Desai

Continued rollout across footprint for digital readiness

Key:  Good progress made     We are working on it     Requires attention

^ Since left the Company.