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Contents
The year in review
“There can be little doubt that
the last 18 months have been
the most difficult period in
MTN’s 22-year history. We
faced unprecedented
challenges, precipitated by
regulatory, macro-economic,
political and competitive
forces in our two largest
markets, and to varying
degrees across our portfolio.
With the agreement to settle
the Nigerian regulatory fine in
June 2016, deeper senior
management capacity and
skills in place, including the
appointment of a Group CEO,
the board conducted a deep
and fundamental strategic
review of the business and its
processes. The review
illuminated a number of
issues in need of attention
and affirmed the Group’s
unique strategic advantages
on which we can continue to
build a sustainable business
for the future. Given their
impact on our performance
and the risk of being left
behind in a fast-moving
industry, these findings
necessitated a decisive and
immediate response. This
precipitated our business
transformation initiative,
IGNITE, which sets out a
clear roadmap for the next
18 months. There is still much
to be done to transform the
Group and position it for the
future, but also much to look
forward to for the people and
stakeholders of MTN.”
Phuthuma Nhleko, executive
chairman
01 WHO WE ARE
All about MTN
02
Where we operate and how we performed
04
Our operating context
06
Our material issues
08
02 HOWWE CREATE VALUE
How we create value using the six capitals
10
Human capital
12
Manufactured capital
13
Financial capital
14
Intellectual capital
15
Natural capital
16
Social and relationship capital
17
Relationships on which we rely to create value
20
Our key stakeholder themes
21
03 STRATEGIC OVERVIEW
Our executive chairman’s report
23
Our investment case
28
Our strategic performance in 2016
30
Our approach to risk
32
Our top risks
35
Mitigating our top risks
36
04 PERFORMANCE DETAILS
Financial review
41
Reconciliation of pro forma financial information
44
Operational reviews
47
South and East Africa
47
West and Central Africa
49
Middle East and North Africa and MTN Irancell
52
05 GOVERNANCE, PEOPLE
AND REMUNERATION
How we are governed to create value
55
Who is responsible
62
Our board of directors
62
Our executive committee
64
Management on the ground
66
Our people and their remuneration
68
Our people
68
Remuneration report
70
06 ADDITIONAL INFORMATION
Glossary of terms
89
Non-financial data for which limited assurance
was obtained
90
Stock exchange performance
91
Shareholders’ diary
91
Forward looking information
91
Administration
92
MTN Group Limited
Integrated Report 2016
01
WHO WE ARE