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For long-term success, in addition to looking after our people and
customers, we must also look after our shareholders.
We are clear
on what we are asked to deliver: returns.
We must make sure we put the investment where the returns are.
When it comes to efficiency we need to make sure that we extract the
benefits of scale in each MTN country, but also as MTN Group: we must
leverage the power of being a group.
How we will achieve these
•
Leverage our scale in market by using our number one or two positions in all
countries to win; and leverage our scale across markets to reap the benefits in
terms of funding, procurement, commercial functional steering, brand and culture.
•
Save to invest by choosing not to spend on certain elements and then investing
those savings in areas where the returns are most favourable.
•
Ensure return-based capital allocation by being very scientific about
how and where we choose to invest and distribute profits.
•
Focus on cash flows by tightly managing cash upstreaming from operations.
Our 2022 aspirations
Improve
ROIC
Report top-
quartile
TSR
Increase AFCF
yield
Improve EBITDA
margin
Returns and efficiency focus
Details of our performance in 2017
• Aligned our financial KPIs with BRIGHT.
• Stabilised our EBITDA margin in the second half to record a margin of 34,0%*.
This was held back by higher foreign currency denominated expenses in
Nigeria because of the depreciation of the naira.
• Recorded a decline in the cash ratio (measured by subtracting capex intensity
from EBITDA margin), given the decline in the EBITDA margin and stable
capital intensity in the year.
• Reduced capex unitary costs after completing the validation of our smart
capex model. This addresses the challenges faced by every operator:
how to prioritise our investments with limited resources amid increasing
competitive pressure, while delivering profitable growth.
• Achieved TSR ranking of 19 in MSCI Emerging Markets Telecoms Index. This
is better than the median of 22, but not yet in the top 12, which represents
the top quartile.
• Reviewed the way we guide the market, introducing medium-term targets.
• Negotiated procurement savings of 15%.
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MTN Group Limited
Integrated Report 2017