Justifications for Digital Innovation in Africa

1. Innovation Africa
Digital Summit 2019
Addis Ababa
MTN Group COO:
Jens Schulte-Bockum

2. WHY digital
innovation in
Africa?

4. GDP growth and urbanisation in our regions supports opportunity
Compound annual urban population growth
2015 - 2025
4.0
2.1
2.1
2.0
1.9
1.8
1.2
1.0
1.0
0.3
Sub-Saharan Africa
North Africa
Western Asia (Middle East)
Asia
Egypt
World
Latin America and the Caribbean
Brazil
United States of America
Europe
Compound annual real GDP1 growth
2015 - 2025
5.3
4.6
3.8
3.5
3.3
2.5
2.0
2.0
1.8
1.3
Asia
Egypt
North Africa
World
Sub-Saharan Africa
Middle East
United States
Latin America and the Caribbean
Europe
Brazil
4

5. 2019 3 year CAGR 2021
Market
penetration
(%)
Africa 48% 3% 51%
Asia 67% 1% 68%
South America 71% 1% 72%
North America 84% 1% 85%
Europe 87% 0% 87%
2019 3 year CAGR 2021
Population
growth
(mn)
Africa 1320 2% 1386
Asia 4585 1% 4662
South America 428 1% 436
North America 366 1% 372
Europe 743 0% 745
Fast growing and youthful populations with low internet adoption
5
SSA MENA China US
Population below 24 66% 50% 30% 32%
GDP per capita PPP ($) 3 900 8 000 8 500 60 000
Adoption / Penetration
of population (%)
Developing Developed
Africa Asia
Central &
South
America
Europe
North
America
Smartphone (%) 33 61 65 93 86
Mobile internet (%) 23 40 49 69 73

6. Nascent digital services; underpenetrated mobile financial services
SSA MENA China US
TV 36% 95% 95% 96%
Pay TV 9% 65% 61% 79%
Netflix/iQiyi 0% 30% 17%
Whatsapp/WeChat/FB 18% 67% 73% 66%
SSA MENA China US
Banking 19% 45% 66% 76%
Digital payments 20% 23% 56% 74%
Momo/Alipay/Paypal 7% 15% 22% 15%
6
MTN Active Mobile Money (FinTech) customers
27m 125m
MTN Active Digital Users
28m 75m
Unbanked
population
today
~80%
to
to
20252018

7. What is MTN’s role
in digital innovation
in Africa?

8. Redefining inclusion…
“mobile at the centre”

9. 9
[Add disclaimer text in slide master mode]
Our core belief is that everyone deserves the
benefits of a modern connected life
Our vision is to lead the delivery of a
bold new digital world

10. African born free in 1994 and now today
10
237 million
subscribers
81 million
active data users
28 million
active MoMo users
+ 22%
Data revenue
+46,8%
Fintech revenue
19k Employees
64 nationalities
#1 or #2 in 21 markets across Africa and the Middle East
Largest market share in 14
SEAGHA
WECA
MENA
Service revenue of
R125 billion

11. MTN is leading the way in digital and financial inclusion
Mobile calls, internet
& digital services
Fintech
11
Only 1 in 4
Africans are
connected
Only 1 in 5
Africans are
Banked
Opportunity to address both
challenges and increase digital
and financial inclusion
MTN has unique assets at scale
233 million
Customers with
payment
relationship
Leading & most
admired African
Brand
Deep customer
insights & local
context
Deep & wide
distribution
channel
Extensive data
network
coverage

12. We are #1 or #2 across our markets
South Africa Nigeria Iran Uganda Ghana Cameroon Ivory Coast
Market
position
2/4 1/4 2/3 1/8 1/9 1/4 2/3
Subscriber
market
share
31% 50% 43% 54% 51% 47% 33%
#2 player in 7 markets
12
Numbers at December 2018
#1 player in 14 markets

13. How can we continue
to innovate in Africa
for Africa?

14. One network
One distribution
One registration
The evolving telco
The fintech player
The digital player
WholesaleVoice Data Enterprise
Fintech
Transfers, Payments,
loans, deposits,
insurance, marketplace
Digital
Media, messaging &
mobile advertising
The Digital Operator
14
MTN
The Digital Operator

15. From six value pools, we create inclusive growth & value potential
15
Calls
Maturing, large pool
Internet
Inflection to explosive growth
Digital
Unique EM opportunity
Fintech
Transformational opportunity
Enterprise
SME and converged services
Wholesale
Explosive traffic growth
2
2
2
2
2
2
2
2
3
2 2

16. The digital market evolution supports our digital operator strategy
16
2018
Africa mobile broadband connections1
560m 841m
2021
to
Smartphone adoption2
30% 55%to
Note: 1 GSMA Intelligence, 2 Markets sample data
Average data users 2
7 to 14
days connected
WhatsApp
Facebook
Facebook Messenger
Viber We Chat
Line
Kakoo Talk
The world of messaging

17. Thank you