MENA Overview

Ismail Jaroudi – VP MENA

AGENDA

1 Overview

2 MTN Syria

3 MTN Sudan

4 MTN Yemen

5 MTN Afghanistan

6 MTN Cyprus

7 Looking ahead
MENA overview

• Subscriber growth of 2.7% across the region(Q3 16 vs. Q3 15)

• Improved economic outlook expected for Yemen in 2018
• Good EBITDA growth in Syria, Sudan and Cyprus
• Afghanistan and Yemen EBITDA affected by the drop in revenue
performance
• Yemen EBITDA further affected by the licence provision
• PAT affected by exchange losses as well as lower EBITDA
performance in Afghanistan and Yemen

Subscribers September 2016 Revenue June 2016 EBITDA June 2016

(% contribution) (% contribution) (% contribution)
9% 1% 5% 5% 5%
7% 8%
12%
12% 53%
57%
10% 65%
15%
15%

8%

7% 6%

Iran* Syria Sudan Yemen Afghanistan Cyprus

* Iran added back to revenue and EBITDA for purpose of this presentation. Equity accounted on an IFRS basis. 3
MTN Syria
Syria – country overview
Population 17.0m Market share 40.9% Penetration 84%

Economics

GDP per capita $1 000 (2016 forecast)

Inflation 48%

Exchange rate US$ = 540 SYP

Demographics

Language Arabic

Religion 90% Muslim, 10% Christian

5
Syria – country overview

The state of unrest still dominates the country

• Impact of unrest resulted in: Gross domestic product (GDP)

(US$bn)
- Decreased population by 40% from 2011 to 2015 35
- Exterminated poverty index increased to 25% in 2016 30
vs.11.2% in 2010 25
20
- Depreciation of currency against USD
15
- Hyperinflation 10
• Geographical spread and level of violence have 5
dramatically increased, especially in Aleppo province 0
2011 2012 2013 2014 2015
• MTN continues to operate mainly in safe zone, including
coastal areas and Capital Damascus

Exchange rate SYP vs US$

300
250
200
150
100
50
0
2010 2011 2012 2013 2014 2015

6
Syria – market overview

• Number of people displacement by end of 2016 will reach Market share vs Penetration
4.3 million
100%
• Regulator has the right to grant a 3rd entrant a mobile
license 80%

• Competition is investing aggressively on their network 60%

mainly on Mobile Broadband (MBB) and hybrid solutions 40%
• Brand re-position 20%
• Focused and segmented market approach through below- 0%
the-line (BTL) campaigns (Regional, Youth). Dec 2014 Dec 2015 Jun 2016

• Enhanced traffic consumption is underpinned by better Market share Penetration

network availability due to continuous investment in the
network infrastructure
• Capex authorised for 2016 is R1 543 million

7
Syria – market players

Syrian Telecom
MTN Syritel
(fixed line)

Launch date 2001 2001 1975

(BOT effective Jun 02)

Subscribers 5.9m (Sep 16) 8.6m (Sep 16) 3.5m (Apr 16)

Coverage 75% geographical N/A N/A

98% population

Shareholders MTN 75% Drex Technologies Syrian government

Teleinvest 25%

8
Syria – management structure

CEO
Ziad
Sabah

GM: GM: CO: CO: CO: SM: GM:

Bus. Risk Cust. Care HR Operating Finance Consumer Sales & Dist.
Maher Samer Ahmad Abdallah Kamal Ghiath Tarek
Bairakdar Kaddouh Ramadan Homsi Santina Bazerbashi Noureddine

GM: CO: Acting CO:

Capital Proj. Technical IT
Mohamad Bashar Mazen
Massoud El Naboulsi Farah

9
Syria – licence

 Commenced in 1 January 2015 (conversion of BOT)

Period  20 years Licence from commencement order date (6/1/2015), on a revenue share basis, renewable
with new conditions

 Year 1 – 50 % of total revenues

Fees  Year 2 & 3 – 30 % of total revenues

 Year 4 to 20 – 20 % of total revenues

 6.4 MHz on 897-900, 942-954, 906-909.4, 951-954.4 band

Spectrum/
technologies  12 MHz on 1830-1842, 1735-1747 band

 10 MHZ on 1930-1940, 2120-2130 band

Coverage  76% of population

10
 Syria – operational performance
Launched Jun 2002 Market share 40.9% Population 17.0m Market size 2016 14.8m Penetration 84% Shareholding 75%

Satisfactory performance despite a challenging environment

Revenue SYP (million)
Subscribers increased by 1.1% QoQ 55 860
53 280
Revenue increased 10.5%*
• Supported by 16.9%* increase in data revenue, 26 844 29 392
29 295
contributing 28.8% to total revenue

EBITDA margin increased 12.3pp 29 295

26 436 26 468 H2
• Supported by the conversion of the BOT licence and cost
optimisation H1
Dec 14*** Dec 15*** Jun 16***
Capex increased by 241.1% to R191 million
18.9%** 17.7%** 28.6%** EBITDA margin
• Added 92 co-located 3G sites and 3 LTE sites

Capex ZAR (million)

974

357 918
191
319 H2
56 191
38 H1
Dec 14*** Dec 15*** Jun 16***
*Constant currency ('organic') information
**In ZAR terms
***Excluding hyperinflation

11
Syria – coverage

June 2016 June 2016

% land 63%

% population 76%

2 915 (37% out of service

Total number of sites
sites)

3G population coverage 65%

12
Syria – looking forward

Opportunities Challenges

 20 year licence  Prolongation of crisis

 3G and growth of data  High inflation and currency depreciation
 Expected country rebuild  Sanctions
 Educated population  In-country skill shortage

13
MTN Sudan
Sudan – country overview
Population 37.6m Market share 33.8% Penetration 69%

Economics

GDP per capita $1 850

Inflation 19%

Exchange rate US$ = 8.73 SDG

Demographics

Language Arabic

Religion Islam, Christian

15
Sudan – country overview

The country still suffers tension with South Sudan – disputed borders and oil revenue

• Impact of unrest resulted in: Gross domestic product (GDP)

(US$bn)
- Degradation of economic climate – consumer 85
84
consumption behaviour changes
80
- Increased poverty and unemployment 74
75
- Depreciation of currency against USD
70 67 66
- High inflation
65 63
• Hope for the ongoing national dialogue, movements to
end conflict, bring about political stability and socio- 60
2011 2012 2013 2014 2015
economic development

16
Sudan – market overview

• Negotiating LTE licence with regulator Market share vs Penetration

• Mobile Money regulations are being redrafted – launch 80%
expected in December 2016 70%
• Competition is investing aggressively on new 60%
50%
technologies (e.g. LTE) and coverage areas 40%
• Competitors offering extremely discounted tariffs on data 30%
bundles 20%
10%
• Capex authorised for 2016 is R1 280 million 0%
Dec 2014 Dec 2015 Jun 2016
Market share Penetration

17
Sudan – market players

Zain Sudani Sudatel Canar

MTN
(previously Mobitel) (CDMA) (fixed line) (Limited mobility)

Launch date 2005 1997 2006 1993 2006

Subscribers 7.7m (Sep 16) 9.5m (Sep 16) 4.6m (Sep 16) 0.23m (Sep 16) 0.014m (Sep 16)

Coverage 54.74% N/A N/A N/A N/A

Shareholders MTN (85%) MTC Sudatel (26%) Government Etisalat (40%)

Larrycom Private (74%) (26%) Private (60%)
Company Ltd Private (74%)
(15%)

18
Sudan – management structure

CEO
Malik
Melamu

CFO GM:HR CTO CIO GM: CS GM: CEX GM: BRM CMO GM: S&D
Ali Nasreldin Nabil Ahmed Abdalla Elfadi Wardi Daniel Acting Open
Amir Babiker Baalbaki Mukhtar Ali Fayet Mohammod Udochi
Mustafa Wardi

19
Sudan – licence

 Granted in October 2004

Period  Effective commercial launching date 4 April 2005

 20 years renewable thereafter from commercial launching date

Fees  150 million Euro

 900MHz band  9.6 MHz

Spectrum /
technologies  1800MHz band  10 MHz

 2100MHz band  15 MHz

Coverage  60% of population of applicable town

20
 Sudan – operational performance
Launched Sep 2005 Market share 33.8% Population 37.6m Market size 2016 30.3m Penetration 69% Shareholding 85%

Progress in tough conditions

Revenue SDG (million)
Subscribers decreased 13.0% to 7.7 million
1 641
Revenue increased by 15.7%* 1 430
• Data revenue increased 78.3%* and contributes 27.7% to
830 938
total revenue as a result of increased data users 738

EBITDA margin down 1.9 pp 938

692 811 H2
Capex up 62.9% to R549 million H1
• Added 44 co-located 3G sites Dec 14*** Dec 15*** Jun 16***

33.8%** 35.0%** 35.4%** EBITDA margin

Capex ZAR (million)

1 392

911 819
549
482
481 549 H2
337
H1
Dec 14*** Dec 15*** Jun 16***
*Constant currency ('organic') information
**In ZAR terms
***Excluding hyperinflation

21
Sudan – coverage

June 2016

% land 16.6%

% population 54.7%

Total number of sites 2 038

3G population coverage 33.6%

22
Sudan – looking forward

Opportunities Challenges

 Mobile Money and EBU  Customer experience

 Data and smartphone penetration  Regulatory demands
 Youth brand and affordability perception  Aggressive competition
 OTT’s
 Exchange rates and availability of hard currency

23
MTN Yemen
Yemen – country overview
Population 27.1m Market share 42.8% Penetration 46%

Economics

GDP per capita $1 096

Inflation 30%

Exchange rate US$ = 320 YER

Demographics

Language Arabic, English

Religion Islam

25
Yemen – country overview

Fully fledged military conflict since 2015

• Unrest has resulted in: Gross domestic product (GDP)*

(US$bn)
- Yemen’s GDP contraction of 28% in 2015 40 37
- Lack of skilled specialised resources 35
35 31 32
- Destruction of country’s infrastructure 30
• Recovery for the country and economy anticipated in 25
medium term
20
15
2010 2011 2012 2013 2014

* Due to the current security situation in the country 2015 & 2016 figures were
not reported by the World Bank

26
Yemen – market overview

• Coalition countries (Gulf states) committed to financing Market share vs Penetration

the rebuilding of the country.
47%
• MBB licence expected to be granted end 2017/beginning 46%
2018
45%
• Yemen Mobile enjoying monopoly over MBB service – 44%
providing fast data service at low rates
43%
• Price war with Sabafon – impacting ARPU and effective 42%
tariff
41%
• Operating licence renewed until December 2017 Dec 2014 Dec 2015 Jun 2016
Market share Penetration

27
Yemen – market players

Public Tele-
MTN Sabafon Yemen Mobile Hits Unitel “Y” communication
Corporation

Launch date July 2000 February 2001 November 2004 December 2007 1982
(15yr GSM (expected) Fixed line license
licence)

Subscribers 5.3m (Sep 16) 2.4 m 4m 0.8 m 1.2 m

Coverage Geographical – *Geographical – *Geographical – *Geographical – *Geographical –

73% 57% 54% 36% 62%
Population – 88% Population – 71% Population – 74% Population – 59% Population – 78%

Shareholders MTN 83% All-Ahmar Group, Government and Saudi/Kuwaiti/ Government

Batelco, Hayel
Saeed Group, public shares Syrian/Local owned
Ifan Foreign investors
Investment
Company, CCC
* Estimate
28
Yemen – management structure

CEO
Raed
Ahmad

Deputy CEO /
Corp Affairs
Ali Abdul
Wareth
Hashem

BRM SM CFO CMO GM HR GM S,D & CRD CTO CIO

Ahmed Abdullah Malek Mohammad Houssam Tamer Mahmoud
Abdulkader Madari El Koussa Nasher Abdul Khorbotly
Saad
Dayem

29
Yemen – licence

 29 months extension to the current license to Dec 2017 by which time a renewal of the original license
Period for another 15 years will be negotiated

 US$36.4m was paid for the extension

Fees
 The full 15 year license renewal amount has still to be negotiated

Spectrum /  900 MHZ

technologies
 1800 MHZ

Coverage  71% of population

30
 Yemen – operational performance
Launched Jul 2000 Market share 42.8% Population 27.1m Market size 2016 12.5m Penetration 46% Shareholding 83%

A challenging environment impacted growth

Revenue ZAR (million)
Subscribers flat at 5.3m 3 691
3 371
Revenue decreased 3.7%*
• Offset by 10.9%* increase in data revenue, contributing 1 847
1 738 1 905
16.6% to total revenue

EBITDA margin decreased 0.9 pp 1 905

1 844 1 633 H2
Capex at R77 million H1
Dec 14*** Dec 15*** Jun 16***

52.0%** 39.3%** 35.4%** EBITDA margin

Capex ZAR (million)

314

158
134
47 77
156 H2
87 77 H1
Dec 14*** Dec 15*** Jun 16***
*Constant currency ('organic') information
**In ZAR terms
***Excluding hyperinflation

31
Yemen – coverage

June 2016

% land 57.1%

% population 70.7%

Total number of sites 1 414

3G population coverage 0%

32
Yemen – looking forward

Opportunities Challenges

 Fast growing MBB business  Civil war impact on operations

 MFS – digital, Mobile Money  Lack of independent regulatory body
 Coverage superiority, especially in rural and untapped  Delayed MBB license
areas  Possibility of loss of revenue from Southern cities -
license renewed with Northern government
 Possibility of launch of fourth GSM operator in the North
and one in the South

33
MTN Afghanistan
Afghanistan – country overview
Population 33.5m Market share 37.8% Penetration 52%

Economics

GDP per capita $624

Inflation 6%

Exchange rate US$ = 65.95 AFN

Demographics

Language Pashtu, Dari

Religion Islam

35
Afghanistan – country overview

Challenging operating environment

• Impact of unrest resulted in: Gross domestic product (GDP)

(US$bn)
- Migration of high- and middle-class 22
- Loss of skilled resources 20.5 20.3 20.1
- High poverty and unemployment rate 20 19.2
- Negative output gap 17.9
- Currency depreciation 18

• Increased levels of site downtime due to halted/burnt sites

16
• 2016 growth to remain sluggish 2011 2012 2013 2014 2015

36
Afghanistan – market overview

• New telecom tax – 10% Market share vs Penetration

• Fifth operator commenced its operations destroying value 60%
in the market
50%
• Irrational competitor behaviour 40%
• Improved network availability 30%
20%
10%
0%
Dec 2014 Dec 2015 Jun 2016
Market share Penetration

37
Afghanistan – market players

MTN Roshan AWWC SALAM Etisalat

Launch date 2006 2003 2002 2013 2007

Subscribers 6.5m (Sep 16) 5.9m 3.2m 1.0m 5.7m

Coverage 78% 69% 58% 27% 65%

Shareholders MTN AKFED (major) 20% Ministry of Afgan Telecom Etisalat UAE
MTI Communications (Government)
MCT Ehsan bayat

38
Afghanistan – management structure

CEO
Hassan
Ibrahim Jaber

Chief GM: Chief Mkt. Chief Tech GM: Sales & GM: Cust CFO GM: Corp GM:
Info System HR Officer Officer Distribution Relations Services EBU & MM
Fareed Alex Raul Ernesto Raad Mohamamd Mohammad Marius Hidayatullah Tarek Soliman
Tayar D’Souza Velasco Kannan Kamil Alizad Aamir Masood Van Wyk Zahid

Senior
Manager
BRM
Vacant

39
Afghanistan – licence

 The 3G licence obtained on Jun 20, 2012 for a term of (15) years against a one time non refundable
fee of US$ 25 million
Period  The GSM licence acquired on October 15, 2005 for a one-time non-refundable fee of US$ 40.1 million
for the period of 15 years
 The licence will be renewable subject to compliance with the applicable law and regulation

 Spectrum fee payable for (900, 1800 and 2100MHz) US$ 536,000 annually
 Annual Admin Fee is 15 million Afs Revenue sharing fee 2% spectrum and 2.5% TDF contribution
paying to the government quarterly
Fees
 One time registration of BTS 900(332100 US$) and BTS 1800 (96150 US$)
 Extending of MW link (2943399 Afs) and annual freq fee (42291321 Afs) for MW licenses; extending
Vsat licenses (42434 afs) Annual Freq Fee for VSAT (181860 afs)

 6.8 Mhz GSM 900

Spectrum /
technologies  10 Mhz GSM 1800

 10 Mhz 3G

Coverage  78% of population

40
 Afghanistan – operational performance
Launched Jul 2006 Market share 37.8% Population 33.2m Market size 2016 17.6m Penetration 52% Shareholding 100%

Performance impacted by challenging environment

Revenue ZAR (million)
Subscribers flat at 6.5m 2 824
2 694
Revenue decreased 17.9%*
• Offset by 66.7%* increase in data revenue, contributing 1 383 1 484
7.6% to total revenue 1 204

EBITDA margin decreased 9.9 pp

1 311 1 340 1 204 H2
Capex of R187 million H1
• 120 co-located 3G sites added Dec 14*** Dec 15*** Jun 16***

30.5%** 32.3%** 22.4%** EBITDA margin

Capex ZAR (million)

468

275 170
187
163
298 187 H2
112
H1
Dec 14*** Dec 15*** Jun 16***
*Constant currency ('organic') information
**In ZAR terms
***Excluding hyperinflation

41
Afghanistan – coverage

June 2016

% land 42.8%

% population 78.0%

Total number of sites 1 241

3G population coverage 38%

42
Afghanistan – looking forward

Opportunities Challenges

 Drive data revenue – data devices and data bundling  General security
 MFS – Mobile Money & Digital  Lack of skilled resources
 Expanding 3G coverage and enhancing 3G service  Irrational competitor behaviour
(quality and speed)  Increase in government taxes
 Impact of OTT

43
MTN Cyprus
Cyprus – country overview
Population 0.8m Market share 38.9% Penetration 109%

Economics

GDP per capita $27 377

Inflation -0.7%

Exchange rate US$ = 0.92 EURO

Demographics

Language Greek, English, Turkish

Religion Christian Orthodox, Islam, Maronite

45
Cyprus – country overview

Cyprus, a member of the EU, is in recovery mode

• Impact of financial crisis resulted in: Gross domestic product (GDP)

(EURm)
- Negative GDP growth for 3 years 20 000 19 776
19 504
- Increasing unemployment
19 000
- First bail measures in Europe 18 119
• Ongoing discussions between Greek Cypriot and Turkish 18 000 17 614 17 660
Cypriot on reunification of the island
17 000

16 000
2011 2012 2013 2014 2015

46
Cyprus – market overview

• Recent spectrum auction for three blocks of 800/2600 Market share vs Penetration
MHz – MTN and CYTA acquired; one block still
120%
unallocated
100%
• Telecoms under pressure – regulators, OTT’s, saturation
80%
• CYTA aggressive network investment plan 60%
• Cablenet – MVNO with CYTA 40%
• Primetel looking for investors – expected to continue 20%
aggressive tactics in the market 0%
Dec 2014 Dec 2015 Jun 2016
Market share Penetration

47
Cyprus – market players

Cytamobile – Vodafone, CyTA, PrimeTel, Cablenet

MTN
PrimeTel (fixed line)

Launch date 2004 Cyta: 1988 CyTa: 1961

PrimeTel: 2011 PrimeTel: 2003
Cablenet: 2003

Subscribers 407k (Sep 16) 563k (Sep 16) 252k (Dec 15)

Coverage Almost 100% Almost 100% Almost 100%

Shareholders MTN 100% Cyta: Vodafone CyTa: State-owned

Government PrimeTel: 36.7% Manglis
PrimeTel: 36.7% Manglis (Holdings), 31.1%
(Holdings), 31.1% Celltech
Celltech Cablenet: 51% Go Malta,
49% C.N. Shiacolas

48
Cyprus – management structure

CEO
Philip
van Dalsen

CFO CCO CTIO Bus. Sales Commercial Bus. Risk & Head
Stoyanka Thanos Cosmas Director & Legal SM Audit SM of HR
Stylianaki Chronopoulos Adam Andreas Evridiki Ariana Maria
Neocleous Papadopolou Pantazi Sergiou

49
Cyprus – licence

900MHz, 1800MHz and 2100MHz

 2003
Period
 20 years, renewable

Fees  22.9 million Euros

 900MHz, 1800MHz and 2100MHz

Spectrum /
technologies  GSM UMTS 4G

 Technological neutrality applies

 GSM  UMTS
- 50% 01.12.2005 - 60% 01.12.2013
Coverage - 75% 01.12.2007 - 70% 31.10.2015

50
Cyprus – licence

800MHz and 2600MHz

Period  05 September 2016 – 05 September 2028

Fees  6 million Euros

Spectrum /
technologies  LTE

 50% 31.12.2018
Coverage
 75% 31.12.2020

51
 Cyprus – operational performance
Launched Jun 2003 Market share 38.9% Population 0.8m Market size 2016 1m Penetration 109% Shareholding 100%

Operational growth despite a challenging environment

Revenue ZAR (million)
Subscribers increased by 5.5%
Revenue increased 4.6%* 1 509 1 494
• Supported by 109.5%* increase in data revenue,
contributing 32.5% to total revenue 824 837 880

EBITDA margin increased 4.4 pp

685 657 880 H2
Capex of R60 million H1
Dec 14*** Dec 15*** Jun 16***

28.0%** 27.5%** 31.9%** EBITDA margin

Capex ZAR (million)

262

188
190
108
60
80 60 H2
72
H1
Dec 14*** Dec 15*** Jun 16***
*Constant currency ('organic') information
**In ZAR terms
***Excluding hyperinflation

52
Cyprus – coverage

2G

June 2016

% land 97.8%

% population 99.4%

Total number of 2G sites 579

53
Cyprus – coverage

3G

June 2016

% land 72.3%

% population 90.0%

Total number of 3G sites 468

54
Cyprus – coverage

4G

June 2016

% land 17.2%

% population 59.3%

Total number of 4G sites 206

55
Cyprus – looking forward

Opportunities Challenges

 Increase broadband base via cross selling:  MTR European regulatory pressures
 Fixed broadband  Roaming rates to be abolished in 2017
 Mobile home broadband  Competition is expected to intensify in 2017 – CYTA,
PrimeTel and Cablenet
 TV offering launch
 EBU/ICT

56
Looking ahead
VP priorities for the region

1. Regional synergies

2. Business development

3. Organic growth

4. Cash upstreaming

5. Business continuity (including recovery of halted sites in Afghanistan)

6. High-value customers

7. Network experience

8. Data revenue growth and smartphone penetration

9. Digital revenue growth: Middle East Internet Holdings (MEIH) and Iran Internet Group (IIG)

58
Questions
thank you
Disclaimer

The information contained in this document has not been verified independently. No representation or
warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy,
completeness or correctness of the information or opinions contained herein. Opinions and forward looking
statements expressed represent those of the Company at the time. Undue reliance should not be placed on
such statements and opinions because by nature, they are subjective to known and unknown risk and
uncertainties and can be affected by other factors that could cause actual results and Company plans and
objectives to differ materially from those expressed or implied in the forward looking statements.

Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability
whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this
presentation or its contents or otherwise arising in connection with this presentation and do not undertake
to publicly update or revise any of its opinions or forward looking statements whether to reflect new
information or future events or circumstances otherwise.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and
no part of it shall form the basis of or be relied upon in connection with any contract or commitment
whatsoever.

61
 MENA Investor Day
MTN Irancell COO presentation
AGENDA

1 Overview

2 MTN Irancell

3 Licences and coverage

4 Looking ahead
Country overview – macroeconomic indicators

Area 1 648 195 km2

Capital Tehran
No. of provinces 31
Languages Persian (Farsi)

Literacy rate 93%

Population 80.6 million
Major cities
Tehran 8.846 m
Mashhad 2.749 m
Isfahan 1.945 m
Tabriz 1.549 m
Shiraz 1.461 m

Median age 28 years

GDP (PPP): Per capita $12 833
GDP (nominal): Per capita $5 306
GDP annual growth rate 0.6%
Exchange rate 1 US$ = 30 527 IRR
Inflation rate 8%
Mobile penetration 127%

64
Geopolitical overview

Political environment Economic environment

• International economic sanctions lifted in early 2016
• Presidential Elections to be held in early 2017
• Political stability and security
• Multicultural country comprising several ethnic and
linguistic groups
Regulatory environment
• 3G/4G Licences issued in 2014, TD-LTE in 2015
• MVNO Regulations Issued
• Mobile number portability commercially launched in
2016 Q3
• National Roaming in place
• Tehran is the country's capital and largest city as well as
its leading economic center
• Inflation rate decreased to 8.3% in September (11.6% last
year)
• LC as per market rate depreciated by 3.1% against USD
and depreciated 3.2% against Euro
• Rapid technology changing in telecommunication industry
• Growth projection in line with the lifting of sanctions and
return to global markets
• Diversified economy, increase level of international
agreements and foreign investments
• Improvements in the level of social responsibility of the
private sector and more care and respect for the
environmental challenges
• Fourth biggest reserves of oil in the world, Iran is a
potential bonanza for oil companies, 2.9 million barrels a
day in 2015
• The second largest proved gas reserves in the world and
the third in natural gas production

65
Market overview

MTN Irancell MCI Rightel

Shareholding MTN 49% TCI Holding 90% Social Security
IEDC 51% Stock Exchange 10% Organization 100%

Launch date Oct 2006 1993 2010

Subscribers 48 m 52 m 3m

Suppliers Huawei Nokia Huawei

Ericsson Huawei
Nokia Ericsson
Coverage (mobile) 86% 96% N/A

Market share 46.42% 50.35% 3.23%

66
Market dynamics

• Second-largest country in the Middle East and the 18th-largest in the world.
• The world's 17th-most-populous country, population is projected to stabilize above 105 million by 2050
• The only country with both a Caspian Sea and an Indian Ocean coastline
• Over five million tourists visited Iran in the fiscal year of 2014–2015
• Large youthful population – Median age 28 years.
• Highly fragmented businesses
• Mobile broadband license for 3G, LTE and TD-LTE
• Mobile SIM penetration over 127%
• High smartphones and devices penetration
• Good education system and availability of skills
• Shift to data with drop of traditional voice and SMS business
• High usage of OTTs platforms
• Newly licensed FCPs will aim to provide triple / quad play services in 2017
• Limited FTTx services
• IPTV licenses approved, services to be launched next year
• Removal of sanctions – an opportunity to expand existing business and explore new investments

67
 Operational performance – 30 June 2016
Launched Oct 2006 Market share 46.4% Population 80.6m Market size 2016 101m Penetration 126% Shareholding 49%

Revenue growth of 8.7%* supported by increased data revenue growth

Revenue IRR (billion)
(100%)
Subscriber growth of 2.0% to 47.3 million 63 319
56 726
• Attractive segmented offerings, data bundles and
improved network experience 32 281
29 466 33 739
Strong data revenue
• Data revenue increased 65.3%*, contributing 40.6% to 27 260 31 038 33 739 H2
total revenue despite regulatory pressure on data tariffs H1
• Smartphones increased 25.8% to 25.8 million Dec 14*** Dec 15*** Jun 16***
• Digital revenue contributed 32.6% to data revenue due to
strong growth in local lifestyle content based usage 42.8%** 41.5%** 37.7%** EBITDA margin *

• Outgoing voice revenue negatively impacted by the

continuous substitution of data services Capex ZAR (million)
(49%)
EBITDA down 2.4pp
• Mainly due to increased transmission costs associated 4 180
with the data network expansion, as well as marketing 3 112
costs related to 3G and LTE campaigns 2 326 2 313
2 221
3G and LTE networks expansion
1 854 2 313 H2
• Added 1,783 co-located 3G sites and 851 LTE sites 891 H1
Dec 14*** Dec 15*** Jun 16***
*Constant currency ('organic') information
**In ZAR terms
***Excluding hyperinflation

* Including revenue share of 28.1% 68

Licence conditions

 Granted Nov 2005

 Effective July 2006
Period  15 years
 Renewable 2 periods of 5 years
 Protection period: not to issue any new license for 2 years from the effective date

 GSM license Initial fee €300m

 Each contractual year 28.1% of revenue (min of 80% of B.P revenue)
 Universal service fee – 3% of revenue
Fees  Regulation fee – 0.25% revenue
 Numbering fees
 3G & 4G license initial fee $113m
 TDLTE license initial fee $13m

Spectrum  900 MHz | 3500 – 3600 MHz | 2100 MHz | 2600 MHz | 1800 MHz

 Year 1 – 50% of population Year 10 – 79.5% of population Year 15 – 84.7% of population

Coverage – 248 towns – all provincial cities
– 1 589km of road – 9 089 km of road

 Voice & SMS: Prepaid tariffs can be +20% premium to the base tariffs that are determined by the CRA
Tariffs  Data: Tariffs cap is determined and announced by CRA to all operators.

69
Spectrum update

• On 24 August 2014, mobile broadband license for 3G and Spectrum allocated to MTN Irancell Frequency band
higher was awarded to MTN Irancell. Type of operating licence (MHz)

• On 23 August 2015, TD-LTE license was awarded to

MTN Irancell which allowed the company to convert its GSM 900 - 1800
existing WiMAX to TD-LTE technology

TD-LTE 3 500 – 3 600

3G / LTE licence 2 100 – 2 600

WIMAX 3 500 – 3 600

70
Coverage

 Population coverage: 86%

2G  Rollout: 1 199 cities

 Road coverage: 33 718 Km

 Population coverage: 44%

3G
 Rollout: 568 cities including capitals of all provinces

 Population coverage: 23%

4G
 Rollout: 228 cities including capitals of all provinces

71
Looking ahead

Commercial analysis

Opportunities Threats

 Leading mobile data service provider  Dependency on government organisations for national
and international bandwidth
 Anticipated GDP growth next years
 Coverage gap vs. competition including indoor
 Leverage MNP to attract HVCs
 Access to new site locations specially in big cities
 MVNO to target special segments
 Good margins getting affected by the cost increase
 FTTx to bundle digital services
 OTT impact
 Fast data growth in line with smartphone penetration
 Highly fragmented telecom licenses
 Established distribution channels
 Talent war
 Business opportunities in adjacent sector
(E-Commerce IoT, NFC,…)
 MTN Group footprint and International experience
 Established business to be able to leverage the removal
of sanctions
 Change in life style getting momentum
 Overall culture diversity
 Low cost operational structure
 Local shareholders support
 Improved customer experience

72
Questions
 MENA Investor Day
MTN Irancell CFO presentation
AGENDA

1 Key performance matrix

2 Revenue

3 Expenditure

4 Income Statement

5 Balance Sheet
Key performance matrix (IRR b)

Revenue Expenditure

31 038 8.7% 33 739

13.9% 21 023
27 261 20.7% 18 581 13.1%
15 395

June 2014 June 2015 June 2016 June 2014 June 2015 June 2016

EBITDA Data and Digital revenue

13 710
12 717 65.3%
2.1%
2.8% 12 458
8 295
12 117 88.5%
4 400

June 2014 June 2015 June 2016 June 2014 June 2015 June 2016

Data & Digital as % to revenue EBITDA margin

44%
41%
12.9%
28% 40%
11.6% 38%
16% -4.0%
-2.4%
June 2014 June 2015 June 2016 June 2014 June 2015 June 2016
* Including revenue share of 28.1%
76
Revenue analysis

Data & Digital revenue up 65.3% due to

• Up 65.3% due to aggressive 3G and LTE roll out and an
increase in smartphones and data users
13 710 13 620
Airtime revenue 12 986

• Decline in MOU as a result of increase usage of voice

over OTT applications and highly competitive pricing in
the market

Interconnect revenue
8 295
• Interconnect revenue declined by 17.9% due to reduction
in incoming minutes

SMS revenue
• Decreased by 28% due to increased usage of OTT 4 753
applications 3 901 3 835

2 749

534 394

Data & Digital Airtime Interconnect SMS Other

June 2015 June 2016

77
Expenditure

Revenue share and regulatory fees

• Increased 8% in line with revenue growth 9 509
8 815
Interconnect
• Decreased by 16% due to an increase in on-net traffic
Network costs
• Increased by 13% due to an increase in the new sites and
technology changes

Transmission cost
• Increased by 162% as a result of capacity needed to
support data growth
3 455
2 908
2 290
2 022 2 034

777

Revenue share Interconnect Network Transmission

June 2015 June 2016

78
Expenditure

Commission and discounts

• Increased by 11% aligned to commission related revenue
increases and an increase in device sales

Digital costs
• Increased by 31% aligned to the increase in digital
revenue, taking into account the change in the nature of
the content
• Content costs are mainly revenue sharing agreements
with content providers

Marketing
• Increased by 61%, driven by price increase as well as
increased media advertising to promote 3G/LTE and
maintain our market presence

Staff Costs
• Increased by 28% due to increases in salaries as well as
number of staff 948 1 048 862 1 015 1 087
657 687
466 599
• Minimum salary increases are prescribed by law and 426
implemented in April each year
Commisions VAS & Digital Marketing Staff costs Other
& discounts

June 2015 June 2016

79
Income statement

IRR bn H1 2016 H1 2015 Var H1 2014 FY 2015 FY 2014

Revenue 33 739 31 038 8.7% 27 261 63 319 56 727

EBITDA 12 717 12 458 2.1% 12 117 26 200 24 298

EBITDA margin % 37.7% 40.1% (2.4%) 44.4% 41.4% 42.8%

EBITDA margin % excl RS & RF 65.9% 68.5% (2.6%) 70.8% 69.3% 69.7%

Depreciation 4 068 2 997 35.8% 2 158 6 565 4 850

Amortisation 896 787 13.8% 545 1 669 1 120

Profit from operations 7 753 8 674 (10.6%) 9 415 17 965 18 328

Finance cost (2 044) (2 007) 1.9% (1 459) (3 186) (3 733)

Profit before tax 9 797 10 680 (8.3%) 10 873 21 151 22 060

Income tax expense 1 800 2 298 (21.6%) 2 392 4 121 4 580

Profit after tax 7 997 8 383 (4.6%) 8 481 17 030 17 480

PAT% 23.7% 27.0% (3.3%) 31.1% 26.9% 30.8%

Capex as a % of revenue 27.6% 28.1% (0.5%) 13.5% 30.5% 30.7%

80
Balance sheet

IRR bn H1 2016 H1 2015 H1 2014

Non-current assets 55 821 44 370 33 199
PPE 46 534 35 780 23 499
Intangible assets 6 173 6 288 3 155
Other 3 115 2 301 6 545
Current assets 64 795 55 865 44 764
Bank & restricted cash 48 225 37 322 30 491
Other 16 570 18 543 14 273
Total assets 120 617 100 234 77 962

Capital and reserves 35 812 19 168 13 786

Liabilities 84 805 81 067 64 176
Borrowings 14 214 12 994 11 113
Taxation 4 907 5 905 5 499
Other 65 684 62 168 47 564
Equity and liabilities 120 617 100 234 77 962

81
Questions
 MENA Investor Day
MTN Irancell CMO presentation
AGENDA

1 Competitive landscape

2 Market share

3 Digital

4 Data

5 Distribution

6 Commissions
Competitive landscape
Q1 2016
• 800 MB free internet for new subs
• Handset on Installment
• Free SMS on recharge
• Go to My.mci.ir and get your gift
• Free voice, SMS, and 1GB data for new
subs
• 18 years old offer: free SIM + free SMS /
Voice / Data
• Infinity offer
• Special combo (1K mins, SMS, MB data) for
primary and double for gift SIM: $3.3
• Find your amazing offer on *4444#
• Targeted STC (Talk x Get y)
• Loyalty points program
• Refill >$1.4, get 1GB data valid for 7 days
* Exchange rate; 3,500 IRR/USD
Q2 2016
• Handset on installment
• Free SIM campaign (One SIM for every
Iranian)
• Use 5 min voice, get 55 min free in same
call during Ramadan
• Increase credit limit for post-paid customers (free combo bundle on recharge)
• Deka offer
• Price competition on data: lower price per
GB (6Gb for $5.6) new off peak data
bundles
• Free voice, SMS, and 1GB data for new
Subs
• Invite non-MTN Irancell subs to join MTN
Irancell and get 500MB free data
• Segmented refill campaigns on select days
of the week
• New long term data bundles
• Tiered bundle for new customers 1K mins,
SMS and MB of data for Ramadan and 0.5K
offer after Ramadan
Q3 2016
• Hamrahi’ lucky draw ~$300k monthly prize
money
• Voice subscription offers – ERM ~$0.004
vs. $0.02 headline
• Student special
• Price competition on roaming in 30
countries
• Deka offer
• Infinity monthly offers: price ranges from
$17 to $74 (~ 97% discount on headline )
• Initial voice package for new prepaid users
(on-net+off-net)
• Special offer for insured users
• Special combo (1K mins, SMS, MB data) for
postpaid: (~96% discount on headline)
• 500Mb + 500Mb off peak bundle for new
subs
• Refill > $1.4, get 1GB free off peak data
bundle
• New structure for WOW recharge
• Dynamic Combo bundle
(~ 75% discount on headline)
85
Market share

• MTN Irancell gained market share in Q4 2015 through Market share

0.32% 0.31% 0.30% 0.30%
aggressive voice offers (the Amazing Offers campaign) 2.39% 2.72% 2.72% 2.94%
• RighTel market share growth in Q2 2016 driven by
aggressive price offers across voice, SMS and data 51.37% 50.66% 50.34% 50.35%

- Anticipating higher churn for RighTel in coming months

• Increase in MCI market share in Q2 2016 on the back of
their $300k monthly prize draw 45.92% 46.31% 46.65% 46.42%

• MTN Irancell remains focused on value management;

retention of valuable customers is priority as SIM Q2 2015 Q3 2015 Q4 2015 Q2 2016
penetration approaches 130% Irancell MCI RighTel Taliya & others
• 42% value share and NPS at 23%, up 18 points since
December 2015
• MNP expected to boost MTN Irancell mid to high value Value share
customer share once awareness improves and processes
simplified

58.0% 58.1% 58.3% 57.8%

42.0% 41.9% 41.7% 42.2%

Q2 2015 Q3 2015 Q4 2015 Q2 2016

MTNIrancell MCI
Source: MTNIrancell Interconnect data
86
Digital

• Digital subscriber is almost flat in Q3 2016 vs. Q2 Subscribers (million)*

• RBT, Vitrin (MTN Play), and SDP services remain key 21.0 20.7 20.7 20.7
drivers 20.5
• Revenues up 43% in H1 2016 vs. same period last year 20.0
• Anticipating stable performance in the remainder of the 19.5
19.5
year
• New opportunities being pursued: DoB, API charging and 19.0
Platform as a Service, and IPTV/ VoD 18.5
Q2 2015 Q4 2015 Q2 2016 Q3 2016
• Strong adoption of App based selfcare (>1.2m users).
This doubles as a sales channel and customer contact
interface

Digital Revenue (m, LC)

5 000 000

4 000 000

3 000 000

2 000 000
Q1-Q2 2015 Q3-Q4 2015 Q1-Q2 2016

* Digital subscribers are RGS30

87
Data – data users, MB/user and smartphones

Data users (Q3 2016- 26 million unique customers)

Strong growth driven by
• Smart coverage; rollout and modernisation 24 (92%)
• Adoption of smartphones; including 4G handsets and
18 (69%)
devices – over 50% penetration
• Provision of 4G devices by MTN Irancell and in
partnership with OEMs
• Increasing awareness of mobile broadband with activation ~3 (10%)
campaigns focused on phone set up and bundle
2G 3G LTE
recommendation
Smartphone Non smartphone
• Analytics that improves segmentation, targeting, and
selection of communication channels
• Variety of bundles to suit different segments
• Bundle personalisation service (Boom/ Boom+) Smartphone vs non-smartphone data
ARPU (USD)*
4G / 3G conversion remain key opportunities 8.8
• 3G usage is ~9 times more than 2G; and ARPU ~2 times 6.8
more
• 4G usage is ~3 times more than 3G usage and ARPU 3.3
about ~1.5 times more

2G 3G LTE
Smartphone Non smartphone

ARPU [data users] per technology for Q2 2016 was calculated based on
Jun 2016 report 88
Smartphone strategy

Smartphone Penetration – 2016

On the supply side…
• Dealing with OEMs to bring in 4G capable devices – 56.4%
a la Samsung, Huawei
• Importing MTN branded phones – first 5k brought in to
test the market
• Working with device resellers (dealers) to offer MTN
Irancell SIMs with their smartphones
• Importation of 4G devices
On the demand side…
• Instalment models and potential partners to finance deals 52.2%
• Multiple sales channels being used to improve proposition
discovery
• Targeting customers within 3G/ 4G coverage with legacy 50.4%
devices using appropriate messages to stimulate
conversion to smartphones/ 3G / 4G devices

Q1 Q2 Q3

89
Distribution channel

One of the key sales strategies is development digital sales channel including
• USSD sales
• E-Shop sales
• Tele sales
• Mobile app sales
• IVR sales

Point of sales Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Distributor 25 25 26 28 28 30 30
Dealers 14 520 14 732 15 248 15 382 15 721 14 299 14 511
Bank 26 27 27 28 28 30 30
ATMs in bank sites 35 900 36 352 36 702 38 100 40 156 41 325 42 732
POS device 2 896 935 3 306 303 3 668 965 4 000 500 4 207 135 4 626 825 4 673 503
MTNI store (Irancell) 10 10 11 11 11 11 12
MTNI store (distributor) 34 35 35 35 42 42 41
MTNI Connect - -  154 173 173 187
Total 2 947 450 3 357 484 3 721 014 4 054 238 4 263 294 4 682 735 4 731 046

90
Sales channels, commissions & discounts

Airtime sales channel (%)

Commissions & discounts 2015 2016
50
Effective discount rate on voucher
3.2% 3.3%
& Echarge 40

30
Commission & discount on SIM (LC’ IRR) 15 888 19 189
20
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Discount rate on device 9.4% 10.0% Physical Echarge Logical

91
Questions
 MENA Investor Day
MTN Irancell CTO presentation
AGENDA

1 Overview

2 Network performance

3 Coverage

4 Managed services
Overview - operating environment

Building a superior data network

 10 362 On-air 2G Sites in 3 242Cities

 7 102 On-air 3G-2100 Sites in 1 336 Cities

Highlights  4 014 On-air LTE-1800 Sites in 314 Cities

 1 605 On-air LTE-TDD Sites in 70 Cities
 Data usage 1100 TB per day

 Continuous improvement in customer experience

 New sites rollout

Key priorities  Improve indoor coverage

 Fibre Deployment

 Migration of data traffic from 2G to 3G and 4G

 Transmission quality, capacity and cost

Challenges  Sites acquisition

 Limited fibre footprint and challenges in getting ROW

95
2015 and 2016 capex spend

Network investment
2016 rollout (2015 and H 2016) 10%
9%
• 2G roll out – YTD new sites 344 added 3%
(Total sites 10 351)
13%
• 3G roll out – YTD new sites 2120 added
(Total sites 6 714)

• LTE roll out – YTD new sites 1 467 added

(Total sites 3 354) 65%

• WiMAX roll out – 943 sites rolled out Core & IP Modernisation 2G, 3G, LTE New site TDD Fibre

• TDD-LTE roll out – 1 406 sites rolled out 2016 budget

CPU / program (US$m)
NWG 577
BSS – Radio 439
NSS – Core 34
Support 13
Transmission (IP, fibre,…) 91
ITS 111
Other 21
Total capex 709

96
Quality indicators (availability, quality, coverage)

Throughput 145 Gbps – peak hour

NPS
User data speed & traffic distribution
22% 23%
• 2G 15%
19%
15% 15% 17%
- 109 Kbps 23%
13%
- Taking 6 % of mobile data traffic 10% 10%
5%
7%
-14% -17% 2%
• 3G
-26%
- 1.9 Mbps -17%
-22%
- Taking 60% of mobile data traffic -26%

• LTE Q2
2103
Q4
2013
Q2
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
- FD: 9.7Mbps
MTN advantage / disadvantage vs. best competitor with user share > 5%
- TD: 19.1 Mbps 0% -4% -5% -13% -8% -12% -10% -2% +9% 0%
- Taking 34% of mobile data traffic
Data throughput graph
14 000 120
12 000 100
10 000
80
8 000
60
6 000
40
4 000
2 000 20
0 0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct
2016 2016 2016 2016 2016 2016 2016 2016 2016 2016

3G_DL_THR 4G_DL_THR 2G_DL_THR

97
Network performance – quality indicators

Network availability graph

Plan progress 100

2G Planned # 11 162 93%

On-air # 10 362 99

3G Planned # 9 855 72%

98
On-air # 7 102
4G Planned # 5 911 68%
97
On-air # 4 014 Jan Feb Mar Apr May Jun Jul Aug Sept Oct
2016 2016 2016 2016 2016 2016 2016 2016 2016 2016
TDD Panned # 2 865 56%
On-air # 1 605 3G_CELL_AVAIL 4G_CELL_AVAIL 2G_TCHA

Dropped call rate

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct
2016 2016 2016 2016 2016 2016 2016 2016 2016 2016

3G_DCR 4G_DCR 2G_DCR

98
MPR score

Promoters Detractors and passives

100% 100%

90% 90%

80% 80%

70% 70%

60% 60%

50% Increased 50%

promotion
40% for MTN 40%
Irancell
30% 30%
Network
20%
this
20%
quarter
10% 10%

0% 0%
MTN Irancell MCI/TCI RighTel MTN Irancell MCI/TCI RighTel

Network quality
Branding and advertising
Getting service & help
Accessibility
Devices / handsets
Price and special offers
Value added services
Billing
Feeling valued & wowed
Commnunication
Network quality
Branding and advertising
Getting service & help
Accessibility
Devices / handsets
Price and special offers
Value added services
Billing
Feeling valued & wowed
Commnunication

99
2G coverage map

No. of sites 10 362

No. of cities / villages 3 242

100
3G coverage map

No. of sites 7 102

No. of cities / villages 1 336

101
4G coverage map

No. of sites 4 014

No. of cities / villages 314

102
Managed services

MTN Irancell Operation Management (Regional and Central)

MTN Irancell SVMS process supervision
• Hourly follow up of down cells/sites and network Network Performance Back Office
availability
• Weekly analysis on the root cause of availability Field Manintenance
degradation
• Deep investigation on quality of actions performed by MS Change Management Front Office SLA Supervision

on field
• Thorough audit & stabilisation of critical sites by on site Vendor Vendor Vendor Vendor
Infrastructure
Upgrade
investigation on problematic sites with low performance
* Core *Billing and * RAN * RAN * Link upgrade
• Scheduling and checking regularly preventive * Ran (2,3,4G) charging (2G,3G,4G) (2G,3G,4G) * MW
* TD-LTE System * Network * TX expansion
maintenance performed by MS * TX * RAN (2,3,4G) optimization * Point to
• Pre and post check health check of planned changes * IPBB
* WiMax
* Network
Optimization
Multipoint

done on the network *M2M * VAS

• Accurate TT follow up
• Quarterly SLA and penalty calculation and immediate
deduction from their monthly payment
• In-house strong processes and close follow up
• Competent team handling the daily follow up and full
visibility on main KPI
• Close management follow up and regular evaluation of
performance through different forums
(War room, MS performance)

103
Questions
thank you
Disclaimer

The information contained in this document has not been verified independently. No representation or
warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy,
completeness or correctness of the information or opinions contained herein. Opinions and forward looking
statements expressed represent those of the Company at the time. Undue reliance should not be placed on
such statements and opinions because by nature, they are subjective to known and unknown risk and
uncertainties and can be affected by other factors that could cause actual results and Company plans and
objectives to differ materially from those expressed or implied in the forward looking statements.

Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability
whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this
presentation or its contents or otherwise arising in connection with this presentation and do not undertake
to publicly update or revise any of its opinions or forward looking statements whether to reflect new
information or future events or circumstances otherwise.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and
no part of it shall form the basis of or be relied upon in connection with any contract or commitment
whatsoever.

106