Notes to the group financial statements l Note 9.5

9.5

Interest in subsidiaries

The subsidiaries in which MTN Group Limited has direct and indirect interests are set out in note 9.1. A summary of the group’s subsidiaries with material non-controlling interests is presented below.

      Non-controlling
interests		  
  Principal place
of business		   2017 
Rm 		   2016 
Rm 		  
Subsidiary
            
MTN Nigeria Communications Limited Nigeria   793    725   
MTN Côte d’Ivoire S.A. Côte d’Ivoire   995    983   
Spacetel Benin S.A. Benin   61    172   
Mobile Telephone Networks Cameroon Limited Cameroon   302    396   
MTN Sudan Company Limited Sudan   (793)   36  
Other     136    539   
      1 494    2 851   

Summarised financial information of subsidiaries with material non-controlling interests

Set out below the summarised financial information for each subsidiary that has non-controlling interests that are material to the group. Unless otherwise stated, the group’s subsidiaries’ countries of incorporation are also their principal places of operation. The summarised financial information presented is before intercompany eliminations.

   MTN Nigeria
Communications Limited 		    MTN Côte d’Ivoire S.A.    
   2017 
Rm 		    2016  
Rm  		    2017 
Rm 		    2016 
Rm 		   
% ownership interest held by non-controlling interests    21,17       21,17        33,171      33,171   
Summarised statement of financial position                         
Non-current assets  25 226     28 704      8 091     8 070    
Current assets  8 809     16 493      1 426     2 003    
Total assets  34 035     45 197      9 517     10 073    
Non-current liabilities  10 849     19 855      2 665     2 702    
Current liabilities  19 439     21 916      3 852     4 408    
Total liabilities  30 288     41 771      6 517     7 110    
Summarised income statement                         
Revenue  36 005     47 122      7 421     7 176    
EBITDA  14 041     11 355      2 347     2 333    
Profit/(loss) before tax  4 772     (947)2    922     1 004    
Income tax expense  (1 206)    (3 156)     (212)    (230)   
Profit/(loss) after tax  3 566     (4 103)2    710     774    
Profit/(loss) attributable to non-controlling interests    756       (869)2      236       257    
Dividends attributable to non-controlling interests    425       –        269       527    
Summarised statement of cash flows                         
Net cash generated from operating activities    5 680       13 692        674       755    
Net cash used in investing activities  (5 844)    (11 165)     (1 241)    (748)   
Net cash (used in)/from financing activities    (2 123)      (5 034)       412       41    
Net (decrease)/increase in cash and cash equivalents    (2 287)      (2 507)       (155)      48    
Net cash and cash equivalents at the beginning of the year    6 412       15 577        445       430    
Exchange (loss)/gains on cash and cash equivalents    (1 035)      (6 658)       1       (33)   
Net cash and cash equivalents at the end of the year    3 090       6 412        291       445    
1 The non-controlling interests hold 41,17% of the issued ordinary share capital of MTN Côte d’Ivoire S.A. However, the effective ownership for accounting purposes is 33,17% due to outstanding funding provided by the group to the non-controlling interests to acquire ordinary share capital in MTN Côte d’Ivoire.
2 The summarised financial information is restated to reflect the timing of the recognition of the regulatory fine for all income statement line items affected in accordance with the financial period in which MTN Group recognised the fine.

   Spacetel Benin
S.A. 		    Mobile Telephone
Networks
Cameroon Limited 		    MTN Sudan Co
Limited 		   
   2017 
Rm 		    2016 
Rm 		    2017 
Rm 		    2016 
Rm 		    2017   
Rm   		    2016 
Rm 		   
% ownership interest held by non-controlling interests    25       25       201      201      15         15    
Summarised statement of financial position                                     
Non-current assets  2 587     2 434     6 335     6 347     1 624       8 532    
Current assets  2 278     1 721     1 988     2 362     894       1 284    
Total assets  4 865     4 155     8 323     8 709     2 518       9 816    
Non-current liabilities  771     563     2 330     1 253     2 202       866    
Current liabilities  3 852     2 906     4 484     5 478     2 104       4 817    
Total liabilities  4 623     3 469     6 814     6 731     4 306       5 683    
Summarised income statement                                     
Revenue  3 470     4 012     5 373     6 189     4 540       4 707    
EBITDA  655     1 038     1 304     2 065     (98)      1 512    
Profit/(loss) before tax  48     478     94     830     (1 640)2    (572)   
Income tax  (45)    1     (179)    (297)    (177)      (179)   
Profit/(loss) after tax  3     479     (85)    533     (1 817)      (751)   
Profit/(loss) attributable to non-controlling interests    *      120       (17)      107       (273)       (113)   
Dividends attributable to non-controlling interests    120       300       84       110       –         –    
Summarised statement of cash flows                                     
Net cash generated from/(used in) operating activities    329       612       (47)      900       1 188         1 374    
Net cash used in investing activities  (489)    (573)    (573)    (2 222)    (547)      (883)   
Net cash from/(used in) financing activities    269       (173)      25       1 701       627         (405)   
Net increase/(decrease) in cash and cash equivalents    109       (134)      (595)      379       1 268         86    
Net cash and cash equivalents at the beginning of the year    747       970       944       644       370         546    
Exchange (loss)/gains on cash and cash equivalents    (4)      (89)      38       (79)      (1 184)       (262)   
Net cash and cash equivalents at the end of the year    852       747       387       944       454         370    
1 The non-controlling interests hold 30% of the issued ordinary share capital of Mobile Telephone Networks Cameroon. However, the effective ownership for accounting purposes is 20% due to outstanding funding provided by the group to the non-controlling interests to acquire ordinary share capital in Mobile Telephone Networks Cameroon during prior years.
2 The significant devaluation in the Sudanese pound resulted in a large foreign exchange loss on loan balances. These balances are classified as part of the net investment in MTN Sudan Company Limited and is therefore accounted for in the foreign currency translation reserve in the MTN Group results.
* Amounts less than R1 million.

Notes to the group financial statements l Note 9.5