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Certain financial information presented in this
integrated report constitutes pro forma financial
information. The
pro forma
financial information
is the responsibility of the group’s board of
directors and is presented for illustrative
purposes only. Because of its nature, the pro
forma financial information may not fairly
present MTN’s financial position, changes in
equity, and results of operations or cash flows.
The pro forma financial information, indicated
with a “*” in this integrated report has been
extracted from the MTN Group Limited financial
results for the year ended 31 December 2017 in
respect of which PricewaterhouseCoopers Inc.
and SizweNtsalubaGobodo Inc. issued an
assurance report (on the
pro forma
financial
information as included therein). The pro forma
financial information included in this integrated
report has in itself not been subjected to a
separate assurance engagement.
The financial information presented in this
integrated report has been prepared excluding
the impact of hyperinflation and the relating
goodwill and asset impairments, tower profits
(including the profit realised on the exercise of the
IHS exchange rightwhereby the group’s interest in
the Nigeria tower company was exchanged for
additional shareholding in IHS Holding Limited),
the loss on derecognition of the long-term loan
receivable from IHS, the Nigerian regulatory fine
(consisting of the remeasurement impact when
the settlement was entered into and the finance
costs recognised as a result of the unwind of the
initial discountingof the liability) and IFRS 2 share-
based payment expense related to Zakhele Futhi
(‘the
pro forma
adjustments’) and constitutes
pro
forma
financial information to the extent that it is
not extracted from the segment disclosure
included in the audited consolidated financial
statements for the year ended 31 December 2017.
This
pro forma
financial information has been
presented to eliminate the impact of the
pro forma
adjustments from the financial results in order to
achieve a comparable analysis year on year. The
pro forma
adjustments have been calculated in
terms of the group accounting policies disclosed
in the consolidated financial statements for the
year ended 31 December 2017.
Constant currency information has been
presented to illustrate the impact of changes in
currency rates on the group’s results. In
determining the change in constant currency
terms, the current financial reporting period’s
results have been adjusted to the prior period
average exchange rates determined as the
average of the monthly exchange rates. The
measurement has been performed for each of the
group’s currencies, materially being that of the US
dollar and Nigerian naira. The constant currency
growth percentage has been calculated based
on the current year constant currency results
compared to the prior year results. In addition, in
respect of MTN Irancell, MTN Sudan, MTN South
Sudan and MTN Syria, the constant currency
information has been prepared excluding
the impact of hyperinflation. Hyperinflation
accounting was discontinued for MTN
Irancell and MTN Sudan on 1 July 2015 and
1 July 2016 respectively. The economy of South
Sudan was assessed to be hyperinflationary
effective 1 January 2016, and hyperinflation
accounting was applied from December 2016
onwards.
Explanation on how we report our numbers
MTN Group Limited
Integrated Report 2017
39
Strategic and
financial review