Returns and efficiency focus Returns and efficiency focus

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.

Our 2022 aspirations

Improve ROIC
Report top-quartile TSR
Increase AFCF yield
Improve EBITDA margin


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.

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%.

Our focus in 2018

Roll out smart capex
across the group

Successful IPOs of MTN
Nigeria and MTN Ghana


Cash ratio

Cash ratio

Medium-term targets

Adjusted holdco leverageΔ   Improving
2,0 to 2,5x   EBITDA margins
     
Dividend of    
500 cents in 2018,
growing 10% to
20% per year		   Service revenue growth*
Group upper single-digit growth

Capex intensity between

20% and 15%

  
South Africa Nigeria
South Africa
mid single-
digit growth		 Nigeria
double-digit
growth
     
     
     
     
ΔHoldco net debt/SA EBITDA and cash upstreaming.