Key financial tables

Selected financial results information

	2017 Rm		2016  Rm		% change  reported		% change  constant  currency*		Commentary       Data (34,2%*) and digital (14,2%*) are the main contributors to the constant currency growth. Voice trends continue to decline (-0,2%*).               Dollar-denominated lease costs in Nigeria driving up costs and directly impacting EBITDA.       Loss recognised on derecognition of the loan receivable from IHS.       Exercise of IHS exchange right resulting in lower losses in 2017, offset by lower income from Iran. Overall share of results remain positive.               2016 numbers were impacted by the Nigerian regulatory fine.
Revenue	132 815		147 920		(10,2)		6,8
Commentary Data (34,2%*) and digital (14,2%*) are the main contributors to the constant currency growth. Voice trends continue to decline (-0,2%*). Service revenue	124 409		139 430		(10,8)		7,2
Commentary Dollar-denominated lease costs in Nigeria driving up costs and directly impacting EBITDA. EBITDA	46 955		40 751		15,2		2,5
Depreciation, amortisation and impairment of goodwill	26 398		26 609		(0,8)		13,4
EBIT	20 557		14 142		45,4		(8,2)
Net finance cost	9 267		10 495		(11,7)		(0,9)
Commentary Loss recognised on derecognition of the loan receivable from IHS. Loss on derecognition of loans and receivables	2 840		–		100,0		–
Monetary gain	264		1 723		(84,7)		–
Commentary Exercise of IHS exchange right resulting in lower losses in 2017, offset by lower income from Iran. Overall share of results remain positive. Share of results from associates and JVs	841		(127)		NM		NM
Profit before tax	9 555		5 243		82,2		(22,9)
Income tax expense	5 014		8 346		(39,9)		(18,5)
Profit after tax	4 541		(3 103)		NM		(26,2)
Attributable to:
Commentary 2016 numbers were impacted by the Nigerian regulatory fine. Equity holders of the company	4 414		(2 614)		NM		(100,0)
Non-controlling interests	127		(489)		NM		(18,7)
EPS (cents)	246		(144)		NM
HEPS (cents)	182		(77)		NM

This information has been extracted from the MTN Group Limited financial results for the year ended 31 December 2017.

Selected financial position information

	2017 Rm		2016 Rm		Movement  %		Commentary       Net decrease as a result of impairments (R2,5bn**), depreciation (R19bn**) and forex translation impacts (R9,9bn**) offset by additions of R28bn**.       Increase mainly as a result of the exercise of the IHS exchange right.       Decrease as a result of lower trade and other receivables and lower cash balances at year end.
Commentary Net decrease as a result of impairments (R2,5bn**), depreciation (R19bn**) and forex translation impacts (R9,9bn**) offset by additions of R28bn**. Property, plant and equipment	91 786		95 633		(4,0)
Goodwill and other intangible assets	38 330		46 473		(17,5)
Commentary Increase mainly as a result of the exercise of the IHS exchange right. Other non-current assets	52 399		46 983		11,5
Commentary Decrease as a result of lower trade and other receivables and lower cash balances at year end. Current assets	59 900		79 611		(24,8)
Total assets	242 415		268 700		(9,8)
Total equity	94 267		105 231		(10,4)
Interest-bearing liabilities	79 720		86 954		(8,3)
Other liabilities	62 428		76 515		(10,6)
Total equity and liabilities	242 415		268 700		(9,8)
Net debt	57 145		51 902		10,1

This information has been extracted from the MTN Group Limited financial results for the year ended 31 December 2017.

Selected cash flow information

	2017  Rm		2016  Rm		Change  %		Commentary     Includes dividends of R6,5 billion received from Iran.           Lower outflow in 2017 driven by lower interest paid in Ghana, Sudan and head offices, as well as higher interest received in Nigeria as a result of early redemption of treasury bills (which increased the cash balance).     Decrease driven by lower capex spend in 2017 and forex impacting translation resulting in lower cash payments in the year at group level.     Lower outflow in 2017 as a result of Nigeria early redemption of treasury bills.           Net outflow as a result of head offices repaying borrowings facilities and relating interest.
Cash generated from operations	38 484		55 681		(30,9)
Dividends paid to equity holders of the company	(12 565)		(19 792)		36,5
Dividends paid to non-controlling interests	(956)		(1 178)		18,8
Commentary Includes dividends of R6,5 billion received from Iran. Dividends received from associates and joint ventures	7 129		692		NM
Commentary Lower outflow in 2017 driven by lower interest paid in Ghana, Sudan and head offices, as well as higher interest received in Nigeria as a result of early redemption of treasury bills (which increased the cash balance). Net interest paid	(802)		(2 983)		73,1
Tax paid	(7 596)		(11 704)		35,1
Cash generated by operating activities	23 694		20 716		14,4
Commentary Decrease driven by lower capex spend in 2017 and forex impacting translation resulting in lower cash payments in the year at group level. Acquisition of property, plant and equipment, and intangible assets	(26 661)		(35 247)		24,4
Commentary Lower outflow in 2017 as a result of Nigeria early redemption of treasury bills. Movement in other investing activities	(924)		(5 161)		82,1
Cash used in investing activities	(27 585)		(40 408)		31,7
Commentary Net outflow as a result of head offices repaying borrowings facilities and relating interest Cash used in financing activities	(4 919)		20 951		123,5
Net cash movement	(8 810)		1 259		NM
Cash and cash equivalents at the beginning of the year	27 375		34 139		(19,8)
Effect of exchange rates and net monetary gain	(2 628)		(8 023)		(67,2)
Cash and cash equivalents at the end of the year	15 937		27 375		(41,8)

This information has been extracted from the MTN Group Limited financial results for the year ended 31 December 2017.

Explanation on how we report our numbers

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 right whereby 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 discounting of 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.