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Edited Transcript of MTN.J earnings conference call or presentation 2-Mar-17 7:30am GMT

Thomson Reuters StreetEvents

Full Year 2016 MTN Group Ltd Earnings Presentation

Mar 2, 2017 (Thomson StreetEvents) -- Edited Transcript of MTN Group Ltd earnings conference call or presentation Thursday, March 2, 2017 at 7:30:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Phuthuma Nhleko

MTN Group Limited - Executive Chairman

* Nik Kershaw

MTN Group Limited - IR

* Gunter Engling

MTN Group Limited - CFO

* Ferdinand Moolman

MTN Group Limited - CEO - MTN Nigeria

* Mteto Nyati

MTN Group Limited - CEO - MTN South Africa

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Conference Call Participants

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* JP Davids

JPMorgan - Analyst

* Jonathan Kennedy-Good

Standard Bank. - Analyst

* Ziyad Joosub

HSBC Securities - Analyst

* Mike Gresty

Citigroup - Analyst

* Chris Grundberg

UBS - Analyst

* Stephan Pienaar

Rand Merchant Bank - Analyst

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Presentation

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Nik Kershaw, MTN Group Limited - IR [1]

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Good morning, ladies and gentlemen, and thank you for joining us for the MTN Group Annual Results Presentation. Today we welcome members of the investor community, media, analysts and some members of MTN's Group Board and Group EXCO team. And, of course, MTNers from across operational footprint, who are watching and listening, using various channels. As many of you may be aware, today's results will be presented on the back of an incredibly challenging year for MTN. However, in spite of these challenges, we remain optimistic that as a business, MTN is turning a corner. MTN is built on a very proud legacy, however, for a number of reasons, we are equally confident of what lies ahead also gives us reason to be very optimistic and proud. Firstly, we have a leadership team and workforce that are focused and dedicated to continue with this spirit that is in MTN that we talk about, which is based on our values of can-do. But these can-do values are not to be found anywhere better than amongst the people we are proud to call our colleagues, who form the staff of MTN.

And finally, we remain an organization that is created to sharing value, particularly in the communities in which we operate in. This year, we celebrate 15 years of the MTN Foundation, which is our CSI vehicle and 10 years of our employee volunteer program, which is called the 21 Days of Y'ello Care. So on that note, let's go through the running order of events today and a few house rules, and other important information that I think you should take note of.

The proceedings today will take the following format. Our MTN Group Executive Chairman, Phuthuma Nhleko will give us a strategic and operational overview of 2016. Gunter Engling, who is the acting MTN Group Chief Financial Officer, will then provide a financial review for the past year. Then Phuthuma will come back to the podium and take you through some of the prospects and guidance for the future, and key matters, and indeed, priority issues that he will guide us through.

After the presentation, you'll be given an opportunity to ask questions. There'll be roving mics that will be circulating across the floor. Please introduce yourself, indicate which organization you may be representing, and please ask brief and succinct questions. Following the Q&A session, we'll invite members of the media to join us upstairs for a press briefing. But at that time, we also invite the members of this audience to join us for a light brunch just outside in the sunken area, where you'll be able to indeed interact and network with some of my colleagues, who are here today.

So just before we begin, I'd kindly ask you to place your phones on silent. For those who will be tweeting during the session, the hash tag is #MTNresults and our Twitter handle is @MTNgroup. The Wi-Fi details are as indicated here on the presentation, it's SSID: FA Web and the password for that is MTN Rresults. So ladies and gentlemen, without further ado, let me call upon our Executive Chairman, Phuthuma Nhleko to come and address us.

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [2]

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Thank you very much, Nik, for that very warm reception to our guests and I'd really like to take the opportunity to first and foremost to welcome you all. I know it's always difficult to go across traffic at this time of the morning to come to 14th Avenue. I would also like to welcome our Directors here in the front row, Stan Miller, Alan van Biljon, and, of course, my colleagues, EXCO colleagues. And last and certainly not least, the thousands of MTNers that are on telecast listening to this presentation.

I should say that there is absolutely no question that MTN has gone through a very difficult period in the last 12 months, really commencing to some extent with the fine in Nigeria in 2015, which of course cascaded into 2016. And since there have been quite a number of other unforeseen macro challenges not least the huge devaluation of the naira. So in that context, I'd really like to discuss these results in three phases. The first phase, which essentially deals with the challenges that we had, and I think once we thought we're coming out of that, the focus on stabilizing the business operationally and otherwise. And then third phase is really more an outlook of what we expect going forward. Of course, the Nigerian fine in October 2015 was a pretty seminal event, which included the withdrawal of regulatory services in Nigeria and those who are aware of that particular operation maybe familiar with the fact that with (inaudible) the operation being serviced. It is very difficult to put a number of products into the market and be competitive. So that was, obviously, a pretty significant negative impact. Secondly, the currencies not only in that particular main market, but in quite a number of emerging markets has been a challenge. We've seen quite a lot of devaluations of those currencies, quite a lot of it precipitated by the decline in the oil price. And then in that period, October 15 to June 16, particularly H1 of 2016, we had some challenges in both South Africa and Nigeria as the two main markets. As you are aware, we finally settled on the fine mid-June 2016 and that enabled us to refocus our attention to very much operational matters, because as I said, the fine cast a pretty long shadow over many key aspects of the operation. We put in place a transformative project called Project IGNITE, which I'll discuss a little bit later, but the essence of it is really to hit the reset button on a number of operational and strategic matters. We also put together an operating structure, which was there previously of instilling a second layer between the Group and the various countries at regional level. And we think that has given us a much higher degree of focus and supervision in the operations. We had for quite an extended period spoken about repatriating almost $1 billion out of Iran. We have managed that and I'll talk about that a bit later. And then I think the third and last key strategic focus for that period was, if you like, mending the balance sheet, ensuring that it was robust, bringing down the gearing and so on. I think it would be quite - it would be amiss if I didn't say that as we look positively to the future, there aren't any challenges that may come. I think we are in pretty difficult markets, but by and large we still believe that the recent disruptions in the emerging market regions in which we operate will taper down. And we have no doubt that we are still very well positioned being the largest operator in most of these countries. Also the fact that those countries are very much still in the primary stage of demand in terms of needs and so on. I think all of that puts us in a very good position to go forward. Needless to say, there isn't much that can be achieved without a very strong management team. And we've made great efforts to try and ensure that we reinforce our team with various skills.

The economic landscape is very much self-explanatory. I think the overriding theme is that in two of the largest markets, we've seen either contraction or essentially flat GDP growth, which clearly has got a consequential impact on consumers and demand. We should accept that the settlement of the nuclear agreement in Iran was quite fortuitous; as you can see, the GDP growth was up 4.5% during 2016, and, of course, when the oil price rebounded that helped fuel some of the demand in that country.

Needless to say, that it is pretty diversified economy with pretty strong domestic demand. I think the good news is that the Tier 1 operations are in countries where we are still seeing pretty solid GDP growth. I suspect Ivory Coast or Cote d'Ivoire had the largest GDP growth in Africa in 2016. The other two tier countries have also had relatively stable market conditions and political conditions, and that has helped us quite a great deal.

I think it is very important to put into context the environment in which these results were produced, the currencies of some of the major operations have devalued quite significantly as I've shown here. I mean you look at the naira, if you look at 2013 to 2016, it's a very, very material devaluation to say the least. And clearly, that's got a huge impact on the revenues that we generate out of that particular country. We've also had lower EBITDA or EBITDA under pressure because some of the OpEx is clearly dollar-denominated particularly when you come to rent and utilities and, of course, we continue to rollout the network, but where we have dollar linked, we have suffered that. The consequence of those lower currencies are much larger ForEx losses, which are clearly not within our control. And to put into perspective, we had almost 100% higher ForEx loss this year than the last reporting year. Another very strong headwind was the SIM registration disconnections. As you know, once [Metro] started in Nigeria, we took a pretty conservative view and decided that we would be preemptive and actually review in our entire footprint the status of SIM registration and where we are compliant and where we're not compliant. The upshot of that is we had to disconnect over 23 million subscribers, which clearly had an impact on revenue as well.

We have been labeled a dominant operator in Nigeria. And that does come with various constrictions and restrictions on the regulatory front, which do impede competition. I think lastly, tariff declines. If you look at that currency slide, you should also look at the tariff declines. I haven't got a slide, but if you look at the numbers, are also quite telling, they are quite significant. So I just know that it's important to paint the macro-picture, as well as some of the special or certain [eccentricities] that we face in those countries to just give a sense of really how difficult the year was. Needless to say, the net additions went down during that, what I call, Phase 1 and Phase 2. And then towards the end of Phase 2, we've seen a significant uplift and pick up. Of course the reported EBITDA is ZAR51 billion or almost ZAR52 billion. I do think it's important to have a good sense of how this stacks up, and clearly when Gunter does his financial report, he will put far more flesh and color onto this, but by and large, we did have a hyperinflation, which, of course, is added back, that was a positive, but you've then got the losses that you consolidate from the Tower company, the JV Nigeria and as you are aware, we really flipped up to the holding company, so those losses we will not see any longer, will not consolidate those losses any longer. We undertook a BEE scheme in the form of Zakhele Futhi and, obviously, that's also a pretty significant impact for this year. The fine itself by and large, the fine was - even though we've got a three-year period to amortize that fine from a cash flow perspective, we took the hit essentially in one year, so that we get that out of the way. And so if you put all of that back from the reported, you really get back to an operational EBITDA of about ZAR52 billion as I said. And then we've got ForEx, which goes up and down and we won't say it's a one-off because it will go up, or it will go down next year, it all depends. And that would take it you back to almost ZAR49 billion. The one-off costs are quite important, that's almost ZAR4.5 billion of what we consider to be one-off cost, as I have outlined there.

So the essence of this message is that if you put this into context, we think that notwithstanding all the difficulties that we had, we've at least stabilized things and as I'll show a bit later, we really think that we are going forward. It's not usual for us to start showing part of Q1 of the next financial year, but in this case, we thought that we should do it. So I think if you see the EBITDA margin in Nigeria and South Africa, particularly South Africa on the second half, it's a pretty strong turnaround and we really do believe that I think in both countries going into February hopefully all of that will be sustained. A similar waterfall on the headline earnings per share to the one that I showed you on EBITDA, I think if you take the reported of ZAR0.77 loss and you build up all those blocks, you come back to, as I indicated, almost ZAR11.16 per share. A pretty important aspect of the results is, of course, the fact that we have kept our promise as far as ensuring that we pay at least ZAR7 per share as a dividend, as a final dividend, of which ZAR4.50 is now due in this half.

I think in ensuring that our balance sheet is reconstructed and robust, we began in December 15, notwithstanding that the fine was still hanging over us, to really look at the capital structure of the Group, sort out facilities and get into a profile of far more long-term facilities. And in very, very difficult market and circumstances, we managed to raise the bond of $1 billion. And all of that's really enabled us to have what I regard is still a highly competitive net debt to EBITDA ratio compared to many players in the sector. Of course, we did do a number of small investments as I've listed there. But by and large, the key point here is that we think that we are in a meaningful position as far as our capital structure is concerned.

I had also indicated that we were going to work hard on repatriating our funds from Iran. And I say hard in the sense that, obviously, all repatriations have to be absolutely international law and sanction compliant, and I'm happy to say that I think we are almost there. We have all in all repatriated almost EUR900 million, half of that was, of course, the loan that we put into Iran when we went in there in 2005. And then, the balance is dividends that have accumulated in the last five years. So we expect this to be normalized and this process to continue as the Company continues to generate dividends in country.

I think looking at the revenue, and as I indicated earlier, Gunter will unpack some of these numbers in more detail. By and large, it was flat on an organic basis, maybe, almost 3% growth. Post June 2016, we started working hard on getting the Nigerian operation righted. I think we've recovered quite a bit of market share. Great deal has been done to improve the network, not only in Nigeria, but in Nigeria and South Africa, and all the other key markets. And I think that starts to reflect, of course, in the ZAR34 billion of CapEx that we had to deploy in order to achieve that. And it's also reflected in the NPS or Net Promoter Scores, virtually all our operations Tier 1s and Tier 2s have gone up quite significantly in the NPS scores. We have, as I mentioned earlier, taken the liberty of showing you January as well and I am reliably informed by some of the people sitting in the front that February continues and if they have misled me, I think we are going to have problems, but I believe that that trend is continuing very, very strongly and we'll continue to work on that.

I have mentioned Iran and once again it's also - even though we don't consolidate it, I think it's just to indicate that that Tier 1 operation, as well as the other Tier 2 operations have also embarked on a positive trend. I think in fairness Ghana was always on a positive trend. We had some very significant challenges in Uganda, but we've taken a lot of corrective action, which as you can see is also now very much a turnaround story. Some of it, of course, has to do with the disconnections, so I don't think we should discount that and revenue coming back, but there are lot of operational issues in terms of pricing of products, deeper analytics, et cetera, et cetera, et cetera. And I think the new management team, as well as the VPs, in that particular region have played a role in assisting us to achieve that.

I think talking more now about, I guess, the second part of what I call Phase 2 and looking forward. There are a number of areas, I mean, IGNITE is our transformation project, which is essentially the bedrock of our roadmap going forward. Digital Services, as you'll see in the financial report, has become increasingly a crucial aspect of growth of revenue as you have lower tariffs and declining voice. EBU we'll also talk about and then a little bit about Tower investments. I don't think there's much to say other than the fact that we flipped up into IHS Holdings and then, of course, we've strengthened the team.

I think the essence of IGNITE is to really achieve a number of these things that I've listed here, accelerated revenue growth, data analytics and so on. Now I know a skeptic can say well, this is what we expect you to be doing, anyway why should this be a special project? I think the response is that, an operation of this magnitude and footprint wideness the footprint from a geographical perspective, getting all these things aligned and from time-to-time resetting of processes and seeing whether you are still competitive, whether you are on the cutting edge in terms of operational efficiencies is absolutely crucial. But another very, very important point is that this sector is changing. Some of these operations in the next year or two are actually going to become more data companies than voice companies. And that's going to require some internal changes in terms of skills base and how we approach the market. So as I say, the transformation Project IGNITE has got quite a number of very clearly defined targets. And as I indicated, we will be at the center of our operational processes in trying to achieve certain numbers for 2017 and 2018. And we have tried to give some sort of feel and guidance for that in this earnings announcement. So that we're not just talking about a project, but we're also trying to give you a sense as to what is the project trying to achieve in the financial sense of the word.

Digital Services clearly pretty important growing element of the business and there are many facets to this, we're clearly in many respects still at the nascent stage of growing this, even though it's quite clear how important this is going to become. We are, for instance, the largest distributor of music content now in Africa. We've put together three JVs with Rocket, one for Africa, one for Middle-East and a special one for Iran. And I think they were all making progress. If I had to focus on the JV in Iran, which is the Iran Internet Group. It's done phenomenally well. It is now effectively the largest e-commerce company in that country with a very, very, very strong portfolio. I think somebody said that if it were - and I hope they were right in that steps, that if we were a part of Uber, it could be probably the fifth largest city in that stable. I think we do something like a 100,000 taxi rides per day in Iran. We will, of course, continue to be as innovative as we can. More Cash is essentially almost a banking kind of product that we've launched in Uganda, it's done phenomenally well. We facilitate, just for clarity, we are not the bank, a third party becomes the bank and by and large takes the risks, but we create that facilitation. Mobile Money is quite a strange product in the sense that it has to run for a few years before it gets critical mass, once it gets critical mass, then it picks up very, very fast. And I guess Ghana, Benin, I'm not going to talk about Uganda, because Uganda was really where we sort of started and it's been great, but certainly Uganda, Benin and even Cameroon, I think are picking up quite significantly on Mobile Money. And we are now generating almost ZAR3 billion on that. Where we do expect a huge uptick on Mobile Money would be Nigeria. The constraint at the moment is that there are some regulatory impediments regarding the regulation of that particular product. But if those were opened up and lifted, I think we see a very big impact. So quite a big focus area Group digital services, and we see this as part of the mainstream going forward.

EBU is another area that, obviously, we got off blocks in the last few years. We think we could achieve more momentum and we have Oliver Fortuin, who came from BT and he's going to head that unit. And I have no doubt that he is going to bring some pretty incisive views and expertise to that aspect of it.

And then I think, I did speak about the Tower investments in IHS, where essentially we've now flipped up our holding in the JV into the company itself, giving us almost 30% of IHS. I think what's more important here is that whatever losses we've been consolidated because of the dollar denominated loans, I think those will not be there going forward.

I mentioned a bit earlier that we have reviewed our capacity and capability and have brought in a number of new people. Rob, who would commence on [the 13th] as CEO; Ralph Mupita, who I think is here and is known to a lot of you. He was at Mutual; Jens, who was Vodafone, Germany; Bernice, I think was old MTM. She is back on the marketing, we really do think that we need to reposition ourselves, again, very strongly. And I should just say that notwithstanding all these challenges, MTN is still the Number 1 brand in most of our operations by far, in fact, beats Coke and others.

So there's a lot to leverage there that we think that we haven't been able to do more recently. Babak, I think, played a pretty important role in the turnaround, certainly on the network quality in South Africa. I know our [great] competitor might not want to hear this, but it's [truly important] to say, now in most cities, we are very, very comparable, right. I think it's back to neck on neck. Felleng on the regulatory side, BRM is, obviously, a pretty important issue as things become more and more difficult in these markets, Riaan was with us and Suren who served us excellently for a number of years, as he moves on, Riaan will take over.

And then Siam just to re-emphasize how important Project IGNITE is, he is essentially what we call the transformations are, he's the Group CTO, Transformation Officer, and that's what he will be focusing on. And Gunter, of course, has been here for many, many years, he will support Ralph in the finance function. And last and not least, Godfrey, who has taken over the region in the SEA region and I think has played a very important role in some of the turnarounds that we've seen in Uganda, in particular. So I do believe that we are on a very strong footing, capacity-wise and capability-wise. Of course, we don't control the macro issues, those will always be the tailwinds or headwinds, but certainly we'll start off on a very, very strong base.

We also have made great efforts to ensure that we continue to refresh the Board and bring in new scale and new capacity. Certainly on the telecom side, Stan Miller having operated certain operations in Europe in telecom, I think, brings a fresh view. I haven't been fishing at the pool at Old Mutual, by the way, Paul was out, and we thought that really on the financial aspect of things, Paul Hanratty that is, I think would get some interesting views. And there is, of course, a very stronger and stronger interface between mobility and financial services, and that fresh input does make a big difference.

And Nkunku Sowazi, who, obviously, is the Chairman of Tiso. I think, he's also joined us with a very, very different entrepreneurial flair in what we do. I think, I should also take the opportunity really to thank two directors that departed this year, JJ Njeke and Mr. Jan Strydom, just to say thank you to them for sterling input over many, many years and we do appreciate that. Okay. So I think with that, I'm going to step aside, I'm going to ask Gunter to come and put a bit more color on the Financial Services aspects of things. And then once he does that, I'll come back and talk about prospects and then we can take questions. Thank you very much. Thank you.

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Gunter Engling, MTN Group Limited - CFO [3]

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Good morning, everybody, and welcome again. As you would have gathered from Phuthuma's presentation, it is evident that we endured a difficult year with a number of headwinds, regulatory, macro and political and operational under-performance in the first part of the year. We are, however, making progress in the Tier 1 operations, while some of our larger markets including Ghana, Uganda and Ivory Coast recorded solid improvements in the last quarter of the year. Generally, you will see in the results a significant improvement from H1 to H2. On this group highlights slide, we have stripped out the effects of hyperinflation, the Tower sales, Zakhele Futhi, the Nigerian regulatory fine from the reported results to give you a underlying operational performance. All the financial details in my slides up to and including the taxation slide are based on the underlying operational results, which should enable you to make a more meaningful comparison.

On the financial highlights, our revenue and EBITDA were negatively impacted by currency movements during the year, with the weakness of the naira, obviously having the largest impact. Reported revenues were flat year-on-year, while on an organic basis, growth was a very subdued 3%, as we faced a number of challenges across our operations with a particularly slow start to the year. As we detailed in essense, our results were impacted by a number of so-called once-off items, including the Nigerian fine, the interest on unwind, professional fees relating to the settlement, Zakhele Futhi, losses from the Nigerian TowerCo, ForEx losses, hyperinflation and losses from our digital business. We will leave it up to you individually to decide which of these you would like to include or exclude in your view of our underlying operational performance. From our perspective, these are largely once off with the exception of the digital business, which is in an investment phase and we will continue to record losses over the medium term before turning profitable. The slow organic growth was clearly impacted by the 2% year-on-year decline in Nigerian revenues, and this was partially offset by the 5% year-on-year growth in revenues for the South African business. South Africa's growth was supported by 19% growth in handset revenue, while voice revenues declined 1%. However, despite the lower market share in service revenues, this continued to accelerate versus the prior period.

In Nigeria, the subscriber disconnections in the second half of 2015 and the first half of 2016 remained a key drag on revenues. This together with the weak consumer market saw the business deliver a challenging result. Exchange rates on translation had a 6% positive effect on our reported Group EBITDA although Nigeria's performance was a key factor in the organic EBITDA being down by 19% year-on-year. We will discuss the EBITDA margin in more detail later.

On balance, the revenue performance was below expectations with voice revenues continuing to come under pressure from price competition and lower termination rates on the incoming minutes also taking their toll. However, strong growth was achieved on core data revenues across most operations and we are well placed to continue growing these streams over the medium term. In South Africa, the higher handset volumes positively impacted revenues by some ZAR1.1 billion, while the core service revenues increased 1% year-on-year with the second half service revenues up almost 4% year-on-year. In Nigeria, organic revenues declined as the business faced headwinds already detailed. The quarterly revenue trend evidenced during 2016 as well as the January numbers, which were detailed in Phuthuma's slides lead us to expect a marked improvement in revenue growth in 2017. Our larger markets including Ghana, Uganda and Ivory Coast all delivered encouraging trends on the revenue line in the last quarter of the year. Across WECA, MENA and some of the smaller markets continue to underperform, this includes markets such as Yemen, Guinea Conakry and Liberia, which were a drag on performance. Turning to data, data revenues increased some 20% organically, despite the decline in Nigeria and excluding Nigeria, data revenues increased some 23% organically. Data now contributes some 27% of our total Group revenues. In Nigeria, the regulatory restrictions on out of bundles spending together with the lower subscriber numbers resulted in reported data numbers declining 2% year-on-year. However, encouragingly every month from June onwards, data revenues increased in Nigeria. South African business recorded some 11% year-on-year growth in the data revenues. This was lower than expected and was impacted by the underperformance in the postpaid segment. The Tier 2 and Tier 3 Opcos, however, recorded very strong data growth in 2016. Digital and VAS are beginning to play an increasingly important part in our data revenue. Nigeria and Iran are our standout performers in this regard and for both of those operations, digital/VAS revenues are almost 13% of total revenues at the moment. We continue to see encouraging progress with Mobile Money across our operations. In Uganda, Mobile Money is almost 20% of total revenue. While in Ghana and Rwanda, it is now almost 10%. Cameroon, Ivory Coast and Benin have recorded very strong year-on-year growth but of a lower base and we expect to see continued progress in these markets during the coming year.

When we look at OpEx, there is an 18% organic increase and this is well ahead of organic revenue growth. This was largely impacted by three major factors. Firstly, the continued expansion of our networks, which has led to those increased NPS scores, which Phuthuma mentioned. Secondly, ForEx denominated our OpEx costs in these markets, and lastly, the inflationary environments in which we operate. On an organic basis, direct network costs increased materially to 35%. The Nigerian Tower [lease-filled] ForEx denominated components and increased number of sites all contributed to this increase. We saw an increase in distribution and marketing expenses across a number of markets. This was generally a very good increase, because it's driven by the digital and VAS revenues, which, of course, have a revenue share behind them. The other OpEx increased 42% organically year-on-year. And this was impacted by the impairment of property, plant and equipment in South Sudan, as well as the professional fees as disclosed in the interim period. Going forward, we will continue to focus on optimizing costs. These initiatives are being driven through the transformational Project IGNITE and we have covered this in more detail in the SENS announcement. When we look at our EBITDA margin, there was a 5.5 percentage point decrease to 35.4%. Nigerian margins, particularly, came under pressure from the lower revenues and the almost 19% year-on-year decline in the naira versus the dollar. Full year margins for Nigeria decreased by 6.6 percentage points to 46.4%. The South African margin increased by 0.5% year-on-year and this was supported by stronger rand, where the handset sales benefited in the second half of the year. I would caution that while the margin improvement in South Africa was very encouraging, there was some benefit from the movement of the rand during the period. And should the rand weaken materially, some of this could reverse. Across the MENA region, the political unrest in Syria, Yemen and Afghanistan remains a drag on margins, while WECA the tough economic environment meant the smaller markets saw increased pressure on their margins. When we look at finance costs, not only were we negatively impacted on the EBITDA line by ForEx movements, but that also hurt us in closing rates. The three main items in here is Nigeria, they recorded a ForEx loss of around ZAR1.8 billion on the naira weakness against the dollar and this is mainly on loans they have. Given the limited dollar liquidity in Nigeria, reducing this exposure will remain a challenge. In Mauritius, a key element of the loss relates to the dividend receivable from Irancell. In the first quarter of 2017 as we've repatriated most of those dividends, this exposure should not exist during the remainder of 2017. Unpacking the interest paid line, it is important to note that ZAR1 billion relates to an interest unwind from the Nigerian fine. The remainder of the interest then relates to increased debt levels.

On the taxation slide, our normalized effective tax rate for the year is 42.4% and some of the big contributors to this are the assessed losses in South Sudan and Conakry, additional tax in Ghana, Syria and Yemen and withholding tax impacts. Nonetheless going forward, we expect the full-year effective tax to remain in the range of 32% to 35%. On the headline earnings slide, we now revert to IFRS reporting and it includes the impact of Tower profits and hyperinflation. Earnings per share decreased 110% year-on-year and headline earnings per share excluding the Nigeria fine, hyperinflation, Tower profits and Zakhele Futhi decreased by 54%. Phuthuma's presentation included the very nice waterfall explaining the once-off items in here. Some of the points to note, when reconciling your HEPS calculation is that hyperinflation was a drag on earnings of ZAR0.37 in 2016 versus ZAR0.55 in 2015. Our Rocket investments had a negative impact of ZAR0.39 in 2016, which was very much in line with our expectations. This compares to ZAR0.34 in 2015. The increased ForEx charges had a significant effect on our HEPS. Stripping these out, HEPS would have decreased by 32% versus the 54% operational decline. When we look at shareholder returns, we declared the second half dividend of ZAR4.50 with our previous guidance of dividends for the year of ZAR7 and I think the other point just to note is that the share buyback in 2016 related to the Zakhele transaction, which was unwound.

Looking at the income statement, just one or two things to note. The first one is the depreciation and amortization increase of 12% is lower than the increase we were expecting. And this is due to the marked depreciation of the naira, which have reduced the depreciation from that country. The ZAR1.4 billion swing in the associate line is largely due to the impact of the Nigerian TowerCo, which recorded a loss of ZAR2.2 billion largely due to the devaluation of the naira.

Turning to the statement of financial position, the decrease of profit in property, plant and equipment of ZAR11 billion]was largely the result of the impact of foreign currency movements relative to the rand and this was greater than the investments we made. The reported net debt increased by ZAR20 billion to ZAR51.9 billion. This was impacted by the payment of the installments of the fine in Nigeria, as well as the increase in CapEx and license payments of around ZAR35 billion. At year-end, the Group's cash position included ZAR6.3 billion, which we received from Iran and post year-end, we are in the process of clearing a further EUR468 million. On our cash flow statement, the big movement in investments was largely impacted by the South African CapEx invested of ZAR11 billion, Nigeria investments of around ZAR8 billion, the licenses and frequency we had acquired in Ghana, Congo-Brazzaville and Nigeria amounting to ZAR2.5 billion, increased investments in Amadeus, and the increased investment in Nigerian treasury bills of around ZAR2.6 billion.

On the financials, in closing, on the financial prospects for the coming period, we expect to see continued progress in 2017 on the operational improvements in our Tier 1 markets, South Africa, Nigeria and Iran. South Africa is expected to see continued margin expansion over the medium term with revenue growth in the mid-single-digit range. Nigeria margins will remain under pressure in the short-term, although this will be largely dependent on the naira exchange rate. Nigeria revenues are expected to grow in the upper single-digit range.

Thank you very much. That concludes the financial section of this presentation and I now hand back to Phuthuma.

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [4]

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Thank you very much, Gunter, for, as I said, putting color on some of the more detailed nuances of those numbers, and the picture that we're trying to share with you. The strategic outlook really has got a number of facets to it. For those that always put us under pressure on dividends, we have, as I said earlier, met our expectation for what we said in 2016, sorry, the dividend for the year ended 2016, we have taken a view that we have to continue to take a cautious view of our key markets, and given the fact that we are still in difficult macro situations in a number of countries, not least, the Tier 1 countries and, therefore, there is some sort of uncertainty on the ability to upstream. We've decided that we'll reaffirm that the guidance for 2017 will remain at ZAR7. Needless to say that, this will always ultimately be at the Board's discretion, if they felt that things deteriorated, then they'll take a different view, but by and large that's the guidance for the dividend for this coming financial year.

We are going to continue to work on improving the topline, of course, as you see the revenue mix that we've spoken about, we need to make quite a lot of efforts to review some of the products but ensure that we have new revenue streams from digital and so on, and not just be purely focused on OpEx, which, of course, remains a very important focus but also ensure that you can only get to a particular base and not improve margin if we don't grow the topline. So that remains a key issue for us.

Listing MTN Nigeria is something that's been quite topical. Suffice to say that, this was always our intention but we did [way that] into the settlement that we reached. There isn't a specific date, we want to list the Company as soon as it is practically possible for us to do so. And in that listing, obviously, you need to look at the macro conditions but as important is to ensure that we have absolute regulatory clarity in a number of things in Nigeria. Otherwise, we wouldn't be able to put out a credible prospectus for people to invest the money. So that is still on the cards to try and do as soon as we are able to do it.

In Ghana, we are also in the process of localizing some of the shareholding, I think 30% or something in that order, and that will be placed. So I think with Nigeria, I've said enough, suffice to say that, as the macro eco conditions improve with the further investment that we've made up to now in the network, we hope to continue to reap some benefits out of that investment. Iran, I think, is in a similar way, and clearly the geopolitical issues there could have an impact, but most importantly for us, it's to normalize the repatriation process and take advantage or leverage rather our very key position in that market.

And then, I think, lastly, in South Africa, we do believe that Project IGNITE will ensure that there is at least 15% improvement on the EBITDA margins that we achieved in 2017. So quite a number of key strategic matters that we are hoping to deal with. Net additions guidance is always very difficult, but we have taken, once again, a pretty conservative and cautious view knowing that net additions is really based on what people can afford to take up and spend and how we can roll things over. I do believe that there is some requirement in Nigeria as far as having more brick and mortar for registration and that may very well impact as hence the very conservative number we've put for connections for Nigeria. CapEx, we are looking at total CapEx of around ZAR34 billion, ZAR35 billion for 2017, broken down as we've indicated there. Once again, if situations change on the ground we'd either accelerate or decelerate. I think there's also probably some that will be rolled over from the last financial year. But nonetheless, I think, to just give you some guidance on it, that's the number that we're looking at collectively for the year. I think that brings it to an end. Hopeful that we've given you sufficient color on where we are and what we've had to deal with and how we've worked hard to try and turn things around. And we're hopeful that those trends are going to hold and working hard to ensure that they hold. But I keep on giving you the caution that some of the macro issues clearly can change things.

So I think we can take questions, right. Okay. Who is going to direct the questions?

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Questions and Answers

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Nik Kershaw, MTN Group Limited - IR [1]

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I will direct the questions. I will take a round of three and a few rounds thereafter. We'll start with the two gentlemen at front here. Let's give some mics to them, please.

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JP Davids, JPMorgan - Analyst [2]

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Good morning, JP from JPMorgan. First question is on Project IGNITE. The last aim you have is to balance performance with the health of the organization, perhaps you can give us a little bit of context around that. I would have though the health of the organization would lead to performance. Maybe you could just help us with the interpretation of that statement. And then, just in light of the flat dividend, Phuthuma, you've reiterated a few times, your caution around the macro-environment, but maybe give us your, sort of, medium term view on the bigger picture for Nigeria from a regulatory perspective, from a macro perspective, you are comfortable this is a market you can generate increasing returns from? Thank you.

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [3]

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Let me also just say that I have got a white bench at the front and therefore it gives me quite a lot of latitude to pass on questions as well. I think on the first part of your question, the health and performance in my view are integral and are intertwined. I don't think you can look at one and look at the other. If you have poor group culture scores, if as an example in terms of [surveys] it will eventually show up in the performance. So in Project IGNITE, we have got a wide number of streams that are financial, operational but also HR related, how people feel about the organization and so on and that's what I'd would broadly call the health of the organization. So I think it's a wide range of things that must all converge to actually finally provide the targets that we have. It's not only about numbers, it's about all those aspects.

Ferdi, you might want to comment on Nigeria. But maybe my initial comment is, it's really very, very difficult. I mean the reality is the country's going through a very difficult macro situation that we all know, oil price, currency and so on. And we are just, I think your question was precipitated by the dividend, we've taken a cautious view to say, if you have challenges, let's say, for the next two years in terms of those conditions persisting and I don't want to misinterpret you, I'm not saying, they'll persist for two years but I'm just saying we've taken a conservative view, we want to be sure that whatever guidance we give with dividends and so on, is something that we can adhere to. I don't know if that answers your questions. Ferdi, do you want to add?

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Ferdinand Moolman, MTN Group Limited - CEO - MTN Nigeria [4]

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Yeah. Good morning, everybody. First, I must use this opportunity also just to say, thank you to all the MTN Nigeria staff listening in. Thank you for your hard work and thank you for focusing and getting through the difficult [page one]. I think, perhaps also, what is in [conjecture] is you need to realize that if you look at 2015 and if you just look at the average [RJS], I think we were running at about 62 million average subscribers in 2015 after the disconnection and during the course of 2016, last year, I think we ended up around 59 million subscribers, right. So if you take that into account and you look at the performance over the course of the year, that is quite a big impact. Also what doesn't come out here is that if you look at quarter-on-quarter growth, from quarter three to quarter four we had closed to 8% growth in revenue also clearly indicating that we have gone through H1, we've gone through the all the removal of services, which perhaps gets to your question a bit closer and we were going back into the market. Over and above the macroeconomics, the regulatory environment is also still changing quite a bit but I think we're very well positioned in it. Phuthuma referred to when we gave guidance on subscriber numbers that we've given I think guidance of about 700,000 subscriber numbers for 2017. If there was a new regulation out in terms of subscriber registrations, just to give you a bit of color on this, this new regulation requires all registrations to take place in brick and mortar structures, a number of other issues also that are important but the big one is brick and mortar. We are quite well positioned in this compared to our competitors, we're, obviously, substantially bigger, have a bigger distribution infrastructure. So we feel we're quite well positioned but there will be a bit of a short-term [dip] as we align with these requirements. The environment is what it is, it's not an easy environment to be working out, but we're flexible and we're well-positioned and I truly think if you look at the challenges we had in H1, [what roll of] service units understand the impact of this, it means that we couldn't respond, we couldn't go into the market with new products. By the time we are going back into the market, the effective rate of data of our competitors was substantially lower than ours. So it really had a big impact and getting back into the market would take some time for the products to settle and to clean up. So I'm confident that remains a challenging environment that we've got the right skill sets and the right people in. So I'm quite confident in terms of facing these challenges going forward.

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [5]

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Thanks, Ferdi, after that response, I would be surprised if there are any more questions on [Nigeria], comprehensive indeed. Okay.

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Chris Grundberg, UBS - Analyst [6]

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Chris Grundberg from UBS. Sorry to disappoint, there is another question on Nigeria and also South Africa. Just wondered if you could frame your guidance, so mid single-digit growth in South Africa, high single-digit growth in Nigeria, in terms what your expectations are for the respective markets? What do you think market growth is doing in both countries? Within that, just a little bit color on the competitive landscape, particularly in Nigeria, as it pertains to the investments of the other operators, would be very helpful. And then a follow on just on the Nigerian commentary vis-a-vis the margin. I wonder if you can give us some guidance on what operational gearing we should think about? If you get five points of revenue growth, what does that do to your margin?

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [7]

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Okay. I'm going to ask Gunter to fill some of those, particularly on the margins. But I think generally, I think you're saying what is growth doing, if I understand. I mean, the reality is that [waterboat] that goes up or goes down with the tide. And as I indicated in the slide, with a relatively flat GDP growth in South Africa and Nigeria, it's a bit challenging. But not withstanding that, I think coming back from the challenges that we have, right, and the base from which we came in 2016, I've given you a little bit of flavor, at least, on the first months of 2017 for both countries. And I think I also said, we are reliably informed that even February we will be meaningfully strong, but I wouldn't be as bold as to extrapolate that to the rest of the year. So I don't want to - I'm not ducking a question, but I'm just saying that it really, really has pushed the macro conditions and we wouldn't want to give too much forward guidance in that respect. Gunter, you want to just talk about margins and so on?

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Gunter Engling, MTN Group Limited - CFO [8]

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On the Nigerian margin, while it's true that the revenue growth will have a positive impact, I think that almost try and cover the part, that is the most volatile part of the Nigerian margin, and that is the exchange rates. So currently, we're looking at a 10% weakening in the naira will have around a 2% dilution of margin. And, of course, as management, we are looking how can we mitigate and address those? But the most volatile part on Nigerian margins if you want to model it, is you shift the naira by 10% and the margin will move by 2%.

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Ferdinand Moolman, MTN Group Limited - CEO - MTN Nigeria [9]

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Extremely sorry, if I could just add, just to clarify, Chris. In Nigeria, we do expect to be gaining market shares, our guidance of that upper single digits revenue growth for 2017 would be ahead of the markets. And in South Africa, our guidance of mid single-digit kind of revenue growth is broadly in line with the market, I mean, we're down 1% or 2% or up or down 1% either side but broadly in line with the market for that. So it's a gain in Nigerian and probably staying largely stable in South Africa.

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Nik Kershaw, MTN Group Limited - IR [10]

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Yes. Let's go to -.

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Jonathan Kennedy-Good, Standard Bank. - Analyst [11]

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Jonathan Kennedy-Good, Standard Bank. I just wanted to clarify, in the presentation, you talk about IGNITE giving 10% to 15% improvement in EBITDA in Nigerian [SA] but in the SENS release it's 15% to 20%. Just wanted some clarification.

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Ferdinand Moolman, MTN Group Limited - CEO - MTN Nigeria [12]

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Well, I did modify and say, at least 15%. But [Gunter] do you want to comment on that or not?

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Gunter Engling, MTN Group Limited - CFO [13]

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Just pass it over, Nik. Just perhaps I think the arrow was in Nigeria. So the arrow was in the presentation for Nigeria. So the SENS announcement comments on the IGNITE are correct, the 15% to 20%.

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Jonathan Kennedy-Good, Standard Bank. - Analyst [14]

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So just in South Africa as a follow up. Do we see some obvious costs that can come out of the base, because obviously the network is expanding tremendously and we will expect operating costs to follow. So just wondering if there is some costs that can be taken out there. And then on the Nigerian revenue growth of 16% that you talked about in the New Year, is that generally related to price increases in the market, given that it doesn't seem like subscriber growth is that strong. And will those stick?

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [15]

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I think the last part is easy to answer. We haven't really had any significant price increases in Nigeria. So it's take up, it's re-looking at the products and how those were structured and so on. And, of course, as I said, we've also come from quite a low base, given what has happened. Mteto you want to comment on South Africa?

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Mteto Nyati, MTN Group Limited - CEO - MTN South Africa [16]

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Yes, on South Africa, if you're looking at the costs, we certainly are looking at driving down costs in a number of areas. If you look at, for example, the managed services contracts that we currently have, we are busy doing renegotiation of those contracts to drive down the costs there. And we're also looking at things like rentals and electricity and having discussions to try and look again to try and drive down costs in those specific areas. The other very important thing that we're doing around overall is to look at outsourcing. We did parcel outsourcing off the cost in the last year. And if you look at, for example, the cost of the customer operations last year versus this year, this year, we are seeing a number of savings because last year we were running two teams, where we were busy trying to do catch up linked to the strike that happened in 2015. This year, we're not going to have any of those costs where we're running two teams. And we have managed to catch up around all of the backlog that we had and we will be having a significant amount of savings around the [people site]. Thanks.

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Nik Kershaw, MTN Group Limited - IR [17]

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Gentlemen, over there please.

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Ziyad Joosub, HSBC Securities - Analyst [18]

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This is Ziyad from HSBC. Just on Project IGNITE as well, you mentioned that you're going to be deploying capital more effectively. How does that actually work in the South African landscape given that your CapEx guidance was still at the high end in the slide just before this. And (inaudible) right now, are you looking to establish a network advantage at this stage? And for Nigeria, history has shown us that once you become very dominant from a network capability perspective, things also look a bit progressive in spectrum in that market given recent news alerts. How do you strike the balance between being very strong as a network and not being too dominant that you might get a regulatory backlash sometime in the future?

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [19]

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Thanks, Ziyad. I was trying to find you. Look, I think on South Africa, I mean, the fact that the number is the same on CapEx doesn't mean that therefore we're not improving efficiencies. Because what we're really saying is that the yield that we get for the CapEx that we deploy needs to be much higher. And there's a whole series of issues below that, in terms of is that CapEx being deployed in the right place. Are we getting the kind of yields that we need from the high value subscribers? Are we putting the products that are suited to their needs better? Is there a much deeper coordination between the marketing and network people? So I'm just saying the fact that the number might be the same does not yield that the yield is not improving. The yield may very well be improving and the Project IGNITE is doing one of those things. I think coming back to Nigeria, yes, over the last sort of 15 years, I think we've gone - we have sufficient data now. If we are out of the market in terms of capacity and network for an extended time, we end up paying the price for that. And I think we've resolved that within [region], we're not saying that we must deploy CapEx just for the sake of deploying CapEx, but we need to remain to be hopefully and preferably the most [expensive] network, best quality network and best capacity and that's the only way that you get the high value subscribers, you get the necessary throughput and if the CapEx is deployed efficiently, hopefully you get the yield as well. So I think that's our default position is that by and large, we need to ensure that we remain as the predominant network. I think the second part of your question was about dominance. Well, I mean dominance is quite a contested point in a sense because even now, we're maybe 50% or slightly above 50% market share, and we don't consider that to be dominant, there are four players, and we do think that some of the constrictions that we are suffering are not entirely agreeable with us. But that's really where we are.

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Mike Gresty, Citigroup - Analyst [20]

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Good morning. Mike Gresty, Citi. Just two from my side, certainly by my calculations, things get a little tight on the dividend more in 2018. What do you see as a sustainable level of capital intensity for this Group? Because I think that's quite a big swing factor. And then somewhat related to that, how far has your thinking evolved around what this Group's going to look like in, say, two, three years time? Are we going to still see you in 22 countries? Are we still as obsessed with the diversification that these smaller markets give you, well, that's certainly been your view in the past, can you just perhaps shed a bit of light on possible M&A that we might see?

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [21]

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Well, I'm actually stuck in the twilight zone as I'm sure, you can imagine. I would like my successor to answer that question when it comes, but I can give you a broad view. I think the broad view is that it does come down to CapEx allocation. When you say where are we and what are we going to look like in three years time, I think in some respects the numbers are really start painting the picture in the sense that voice is coming down, voice tariffs are coming down, data is going up, and digital services are going up, as I mentioned, the companies are becoming more data companies than voice companies, and we need to transform accordingly to face that new world. And to that extent, we need to be highly focused on those new revenue streams. I mean, in terms of the structure and how we do that, that's a different discussion, but essentially that's without a question.

And I think as we look at that strategy, it's probably true to say that the smaller countries then come into sharper focus in terms of how do we look at those, but we also can't look at them purely through the old lens of telecom, we need to look at them in terms of content, in terms of all the new revenue streams. So as I said, I'm hesitant to put my successor into a straitjacket, I'm sure they can answer that question quite competently when they come.

And your first part of the question is capital intensity? I think on that one, really it is a choice of how we deploy capital and there is no question that by and large the three key markets South Africa, Nigeria and Iran will always get the lion's share of the CapEx. And if you take Iran, for instance, and Nigeria, huge opportunity and South Africa to that in that [list], a huge opportunity in digital. So I think there will be more movement in investment. I think Gunter did mention it to say that we are still very much investing in digital and basically that will take more and more in terms of privacy of CapEx deployment. And we're going to have to play it by ear to some extent because the macro conditions will have an impact on how we look at how we deploy CapEx.

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Gunter Engling, MTN Group Limited - CFO [22]

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So if I could answer that, Mike, I think what we said as well in the past, is that on a medium term view, so sort of three to five year view, around a 15% range of revenue. But the only things to caveat that with is, one, big currency movements in markets, obviously, have an impact because a large chunk of the CapEx is dollar-based and, obviously, with the rollout of data in the short term there's obviously a lot of more once-off costs, [five] investments and things like that, which obviously, or part of the reason why we've got much higher CapEx upfront. And then thirdly, depending on how we play out with our other new revenue streams, things like digital, Mobile Money, things like that those, obviously, because they are run on existing networks, they are not really CapEx intensive at all, so it will depend on those as well.

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [23]

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Okay. We'll take two more questions.

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Unidentified Participant [24]

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(inaudible) can you give us perhaps an update on your - you've [bucked] up management and I suppose that's to deal with the many governance issues MTN has had in the past? Can you give us an update on the transfer price and allegations that keep being leveled against the company by the various countries and indeed please include the Nigerian [SENS] comment where they said they would be investigating MTN on that?

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Ferdinand Moolman, MTN Group Limited - CEO - MTN Nigeria [25]

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Look, I think the simple answer to that is, I think, as we've indicated, let's start with your second question first, is that we are very clear that there is absolutely no basis for any challenge to the repatriations that we have had out of Nigeria over the years. In fact I think in the SENS announcement, we actually talk about the lifting of our Certificates of Capital Importation that's in this morning's SENS. So I think that alone should give you an indication, I mean I can't talk about the Senates and the processes. But that's really where we are, we're very comfortable with that.

The first part of your question, I think, was about transfer pricing or something to that effect. Again, we charge management fees like many multinational companies do, but I think the most important point is that those management fees that are charged needs to be demonstrated as having substance and so on. And I think in virtually all our markets, that's really where we are. So we don't have a case where somebody is saying, well, we think that you are charging management fees that are not justified by the values that you bring into the country and so on. Does it get [cleared]? Yes, it does get [cleared] by people, but that's really our view on it.

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Nik Kershaw, MTN Group Limited - IR [26]

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Great. We're going to take two more final questions. Can you indicate - sorry, yes, over to you, sir.

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Unidentified Participant [27]

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I was going to ask the last one.

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Nik Kershaw, MTN Group Limited - IR [28]

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Sorry, you can ask in the press briefing, and then, we'll allow you a chance. At the back?

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Stephan Pienaar, Rand Merchant Bank - Analyst [29]

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Stephan Pienaar, Rand Merchant Bank. Just a quick question on CapEx, your guidance is for an increase in Nigeria to about ZAR9.5 billion. My question is, what is the portion that we can expect to be in hard currency and I think the ultimate question is, will you be raising debt on Group level in order to fund this if dollar availability is limited in country?

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [30]

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I think that's a perfect question for the CFO. Yes.

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Gunter Engling, MTN Group Limited - CFO [31]

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The answer is in Nigeria, at the moment, I think, it's 60% hard, 40% local currency. The second part of the question is, we have enough facilities at Group, we will not be needing to raise extra funding to support Nigeria and that we got - and Nigeria has a number of US dollar facilities available where they can borrow in US dollar even at this stage.

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Nik Kershaw, MTN Group Limited - IR [32]

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The last question. No takers? Then I'll ask you, sir, to -

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [33]

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Apparently there is -

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Nik Kershaw, MTN Group Limited - IR [34]

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Is there one? What's it?

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [35]

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A late awakening.

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Unidentified Participant [36]

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Sorry, just a quick one. Your CapEx guidance for Nigeria, does that assume spot FX rates for the naira, so [315]?

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [37]

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Gunter, you want to answer that?

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Gunter Engling, MTN Group Limited - CFO [38]

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I mean that guidance is at the current exchange rates or slightly worsening, should the official exchange rates have another major devaluation to something closer to the parallel market, we would be having a look whether that CapEx is still economical at those rates. So the current assumption is more less in those ranges.

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Phuthuma Nhleko, MTN Group Limited - Executive Chairman [39]

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Well thank you very much and thanks for your support, thank you.

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Nik Kershaw, MTN Group Limited - IR [40]

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Thank you, before we leave. Just one more word. As Phuthuma Nhleko, our Executive Chairperson, prepares to withdraw from his executive role, on behalf of my colleagues here at MTN, we would like to thank him for the great leadership that he has shown through a very difficult period. In particular, the fulfillment of the mandate that was given to him by the Board. And in this regard, sir, we wish you all the best as you withdraw. And please accept our greatest regard and thanks for all the hard work and effort that you put in. Thank you. This concludes our press briefing.