Profile Launched in 1994, the MTN Group Limited (MTN Group) is a multinational telecommunications group offering cellular netwo
Geographic footprint Group overview 3 MTN Integrated Business Report ⁄ 31 December 2009 ⁄ Group overview Sustainability review
Group structure MTN South Africa 100% MTN Holdings 100% MTN International 100% MTN Mauritius 100% + 100% Service Providers 30%
MTN Dubai 100% 75% MTN Guinea Conakry 98% MTN Ghana 75% MTN Benin 100% MTN Guinea-Bissau 60% Lonestar Liberia 75% MTN Syria 51%
Chairman’s statement The intensive capital investment programme of recent years is designed to stand the Group in good stead in
The intensive capital investment programme of recent years is designed to stand the Group in good stead in the years to come as
Chairman’s statement continued For MTN, sustainability is about ensuring sound practices are part of its core business. In 2009
the Group has signed the Copenhagen Communiqué on climate change ahead of the United Nations climate change summit, adding to t
Chairman’s statement continued In 2009, MTN stepped up its fight against fraud, implementing various improved fraud prevention
earnings base; leverage its significant footprint as well as strong intellectual capacity; and to capitalise on the trend towar
Group directorate Back row: from left to right MJN Njeke* NP Mageza* DDB Band* AT Mikati* MC Ramaphosa* JHN Strydom* Front row:
Back row: from left to right A Harper* RS Dabengwa* MLD Marole* AF van Biljon* J van Rooyen* Front row: from left to right PF N
Group directorate continued 1 MC Ramaphosa (57) BProc, LLD (HC) Independent non-executive director and chairman Board committee
Other directorships Director of Business Against Crime South Africa, Myriad International Holdings BV, The Standard Bank of Sou
Executive committee Back row: from left to right PD Norman** T Lowry** JA Desai** C de Faria** Front row: from left to right NI
Back row: from left to right J Ramadan** KL Shuenyane** S Fakie** PF Nhleko* Front row: from left to right SL Botha** KL Shueny
Executive committee continued 1 J Ramadan (53) MA (Inf Tech) Regional vice president – MENA region Committee membership Group e
11 PD Norman (44) MA (Psych) Group executive: human resources Committee membership Group executive and steering committee. Dire
Group president and CEO’s report MTN’s strategic agenda is clear: it aims to be the leader in telecommunications in emerging ma
and MTN believes there is still significant growth to be had across its footprint. The demographics of the markets also support
Group president and CEO’s report continued Consolidation and diversification MTN believes that consolidation in the sector will
Over the years, MTN has built up a strong core of valuable skills, experience and passion in its team of staff. This intellectu
Group president and CEO’s report continued To support the convergence of technologies, MTN has also worked to evolve its produc
In South Africa, MTN is still committed to the implementation of its BEE transaction. At the recent Mobile World Congress in Ba
Group chief operating officer’s report In more than half of the 21 countries in which MTN operates, mobile penetration remained
Management believes 2009 was the Group’s peak capital expenditure year and is pleased to report major successes – from an execu
Group chief operating officer’s report continued Related to infrastructure sharing is the contracting out of the management of
29 MTN Integrated Business Report ⁄ 31 December 2009 ⁄ Operational review Sustainability review All MTN’s endeavours are suppor
Contents 32 36 South and East Africa region South Africa 42 West and Central Africa region 46 Nigeria 52 Ghana 58 Middle East a
Group chief operating officer’s report continued for the year ended 31 December 2009 South and East Africa region MTN’s South a
Group chief operating officer’s report continued for the year ended 31 December 2009 South and East Africa region continued Per
of the network, refined its distribution model and stepped up its promotional activity. MTN Swaziland recorded good subscriber
Group chief operating officer’s report continued for the year ended 31 December 2009 South and East Africa region continued MTN
Overview 2009 was a tough year for MTN South Africa, marked by a depressed economy, network and IT support system problems and
Group chief operating officer’s report continued for the year ended 31 December 2009 South and East Africa region continued MTN
Products and services The MTN Group’s global sponsorship of the 2010 FIFA World Cup™ was used as a springboard for many MTN exc
Group chief operating officer’s report continued for the year ended 31 December 2009 South and East Africa region continued MTN
• The regulator has indicated that access to the appropriate spectrum required for LTE (long-term evolution) is destined for sm
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region MTN’s West
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region continued P
implemented five additional pilots in February 2009. These were in Benin, Congo Republic, Guinea-Bissau, Guinea Republic and Li
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region continued M
Overview MTN Nigeria’s continued heavy investment in infrastructure to enhance the quality and capacity of its network, togethe
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region continued M
The roll out of the Nigerian 3G network gained traction, with 561 3G sites going live, completing the second phase of the 3G ro
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region continued M
The Company secured approval from the NCC for MTN’s submarine cable landing station and the new 0816 numbering plan range in De
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region continued M
Overview Ghana is the most competitive market in which MTN operates, with five operators currently offering mobile telephony se
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region continued M
People Ensuring MTN Ghana maintains an engaged employee base that translates into exemplary performance was a key priority in 2
Group chief operating officer’s report continued for the year ended 31 December 2009 West and Central Africa region continued M
57 MTN Integrated Business Report ⁄ 31 December 2009 ⁄ Operational review Sustainability review Operational review Operational
Group chief operating officer’s report continued for the year ended 31 December 2009 Middle East and North Africa region MTN’s
Group chief operating officer’s report continued for the year ended 31 December 2009 Middle East and North Africa region contin
Khartoum. MTN also concluded a new approach with its main vendors and obtained board support for a strong rollout plan in 2010.
Group chief operating officer’s report continued for the year ended 31 December 2009 Middle East and North Africa region contin
Overview Aggressive subscriber acquisition activity and heavy investment in further extending the network ensured that MTN Iran
Group chief operating officer’s report continued for the year ended 31 December 2009 Middle East and North Africa region contin
easier. Dealers have moved away from only selling SIM cards and airtime and now offer an increasing range of services to ensure
Group chief operating officer’s report continued for the year ended 31 December 2009 Middle East and North Africa region contin
Overview The performance of MTN Syria exceeded forecasts in 2009, led by the expansion of its subscriber base by 20% to 4,25 mi
Group chief operating officer’s report continued for the year ended 31 December 2009 Middle East and North Africa region contin
The validity of some prepaid vouchers was extended to better accommodate customers’ needs. To facilitate improved communication
Abridged sustainability report MTN is a leading provider of telecommunications services in emerging markets. This provides us w
Strategy • Focus on environmental, social and governance issues of importance to stakeholders, and that may have a material imp
Abridged sustainability report continued The diagram below indicates the governance and management of the sustainability functi
2008 Sustainability commitments’ feedback Degree to which objective was achieved 2009 commitments in 2008 Risk/Governance Roll
Abridged sustainability report continued Degree to which objective was achieved 2009 commitments in 2008 Social contribution Mo
2009 commitments in 2008 Staff development (continued) Confirm sustainability resources at operational level Status Degree to w
Abridged sustainability report continued Material sustainability opportunities and risks for 2009 The Group’s review has determ
Material stakeholder matters addressed over 2009 Customers For purposes of this abridged report, examples of initiatives by ope
Abridged sustainability report continued Innovation • MTN’s Can Do spirit focuses on staying in touch with the needs of markets
cost model, to ensure that MTN and all network operators realise a fair return on facilities provided. In South Africa, draft r
Abridged sustainability report continued Our people Training and development Our 34 243 people (including temporary staff and c
compliance programme will be required to implement this, using guidelines issued by WHO, the EU, and Institute of Electrical an
Abridged sustainability report continued • The use of a hydrogen fuel cell for GSM and 3G base station backup (as an alternativ
As a Group, MTN acknowledges the need to develop a better understanding of e-waste generation, and a strategy customised for lo
Abridged sustainability report continued Motivation and support is provided through awarding the Group President and CEO Y’ello
Future sustainability commitments Enterprise development The development of small enterprises can be better sustained through t
Abridged sustainability report continued Reporting period/s Group sustainability 2010 2010 2010 – medium term Commitment Target
Abridged sustainability report continued Group overview Sustainability review Operational review Business review Reporting peri
Abridged sustainability report continued Reporting period/s People 2010 2010 2010 Commitment Target Improve staff health and sa
Reporting period/s Environment (continued) 2010 – medium term 2010 – medium term 2010 – medium term Commitment Target Review an
Abridged sustainability report continued Reporting period/s Suppliers 2010 Commitment Target Increase supplier participation in
Corporate governance report The board of directors and senior management are committed to good corporate governance and underst
Corporate governance report continued The MTN Group financial statements are prepared in accordance with International Financia
The board and its committees’ composition and the record of attendance are set out on page 98. The profiles of the individual d
Corporate governance report continued recommendation of the NRHR & CG committee. Where necessary, MTN Group uses external servi
Independence of directors The MTN board comprises a majority of independent non-executive directors. The board considers nine o
Corporate governance report continued The process included: • An evaluation of board effectiveness; • An assessment of the perf
is submitted to shareholders for sanctioning at the annual general meeting prior to implementation. Details of directors shareh
Corporate governance report continued Directors Independent non-executives MC Ramaphosa DDB Band KP Kalyan MJN Njeke AF van Bil
Audit Meetings attended Risk management and compliance committee Meetings attended NRHR & CG Meetings attended Group tender Mee
Corporate governance report continued Additional Group tender committee members (Including independent non-executive chairman)
is assisted by three regional vice presidents (VPs) who communicate and co-ordinate the policies and strategies of the committe
Corporate governance report continued The committees’ profiles are detailed as follows: its chairman. The committee chairman al
External audit The joint external auditors provide an independent assessment of key accounting and information systems and cont
Corporate governance report continued The committee is responsible for performing the following functions: formulation of a rem
Page 1:
Contents Subscribers 116,0 Revenue (Rm) 111,9 2 3 4 Group profi
Page 2:
Profile Launched in 1994, the MTN Group Limited (MTN Group) is
Page 3:
Geographic footprint Group overview 3 MTN Integrated Business R
Page 4:
Group structure MTN South Africa 100% MTN Holdings 100% MTN Int
Page 5:
MTN Dubai 100% 75% MTN Guinea Conakry 98% MTN Ghana 75% MTN Ben
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Chairman’s statement The intensive capital investment programme
Page 7:
The intensive capital investment programme of recent years is d
Page 8:
Chairman’s statement continued For MTN, sustainability is about
Page 9:
the Group has signed the Copenhagen Communiqué on climate chang
Page 10:
Chairman’s statement continued In 2009, MTN stepped up its figh
Page 11:
earnings base; leverage its significant footprint as well as st
Page 12:
Group directorate Back row: from left to right MJN Njeke* NP Ma
Page 13:
Back row: from left to right A Harper* RS Dabengwa* MLD Marole*
Page 14:
Group directorate continued 1 MC Ramaphosa (57) BProc, LLD (HC)
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Other directorships Director of Business Against Crime South Af
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Executive committee Back row: from left to right PD Norman** T
Page 17:
Back row: from left to right J Ramadan** KL Shuenyane** S Fakie
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Executive committee continued 1 J Ramadan (53) MA (Inf Tech) Re
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11 PD Norman (44) MA (Psych) Group executive: human resources C
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Group president and CEO’s report MTN’s strategic agenda is clea
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and MTN believes there is still significant growth to be had ac
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Group president and CEO’s report continued Consolidation and di
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Over the years, MTN has built up a strong core of valuable skil
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Group president and CEO’s report continued To support the conve
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In South Africa, MTN is still committed to the implementation o
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Group chief operating officer’s report In more than half of the
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Management believes 2009 was the Group’s peak capital expenditu
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Group chief operating officer’s report continued Related to inf
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29 MTN Integrated Business Report ⁄ 31 December 2009 ⁄ Operatio
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Contents 32 36 South and East Africa region South Africa 42 Wes
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Group chief operating officer’s report continued for the year e
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Group chief operating officer’s report continued for the year e
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of the network, refined its distribution model and stepped up i
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Group chief operating officer’s report continued for the year e
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Overview 2009 was a tough year for MTN South Africa, marked by
Page 36:
Group chief operating officer’s report continued for the year e
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Products and services The MTN Group’s global sponsorship of the
Page 38:
Group chief operating officer’s report continued for the year e
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• The regulator has indicated that access to the appropriate sp
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Group chief operating officer’s report continued for the year e
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Group chief operating officer’s report continued for the year e
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implemented five additional pilots in February 2009. These were
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Group chief operating officer’s report continued for the year e
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Overview MTN Nigeria’s continued heavy investment in infrastruc
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Group chief operating officer’s report continued for the year e
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The roll out of the Nigerian 3G network gained traction, with 5
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Group chief operating officer’s report continued for the year e
Page 48:
The Company secured approval from the NCC for MTN’s submarine c
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Group chief operating officer’s report continued for the year e
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Overview Ghana is the most competitive market in which MTN oper
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Group chief operating officer’s report continued for the year e
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People Ensuring MTN Ghana maintains an engaged employee base th
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Group chief operating officer’s report continued for the year e
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57 MTN Integrated Business Report ⁄ 31 December 2009 ⁄ Operatio
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Group chief operating officer’s report continued for the year e
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Group chief operating officer’s report continued for the year e
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Khartoum. MTN also concluded a new approach with its main vendo
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Group chief operating officer’s report continued for the year e
Page 59:
Overview Aggressive subscriber acquisition activity and heavy i
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Group chief operating officer’s report continued for the year e
Page 61:
easier. Dealers have moved away from only selling SIM cards and
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Group chief operating officer’s report continued for the year e
Page 63:
Overview The performance of MTN Syria exceeded forecasts in 200
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Group chief operating officer’s report continued for the year e
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The validity of some prepaid vouchers was extended to better ac
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Abridged sustainability report MTN is a leading provider of tel
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Strategy • Focus on environmental, social and governance issues
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Abridged sustainability report continued The diagram below indi
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2008 Sustainability commitments’ feedback Degree to which objec
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Abridged sustainability report continued Degree to which object
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2009 commitments in 2008 Staff development (continued) Confirm
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Abridged sustainability report continued Material sustainabilit
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Material stakeholder matters addressed over 2009 Customers For
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Abridged sustainability report continued Innovation • MTN’s Can
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cost model, to ensure that MTN and all network operators realis
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Abridged sustainability report continued Our people Training an
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compliance programme will be required to implement this, using
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Abridged sustainability report continued • The use of a hydroge
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As a Group, MTN acknowledges the need to develop a better under
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Abridged sustainability report continued Motivation and support
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Future sustainability commitments Enterprise development The de
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Abridged sustainability report continued Reporting period/s Gro
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Abridged sustainability report continued Group overview Sustain
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Abridged sustainability report continued Reporting period/s Peo
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Reporting period/s Environment (continued) 2010 – medium term 2
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Abridged sustainability report continued Reporting period/s Sup
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Corporate governance report The board of directors and senior m
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Corporate governance report continued The MTN Group financial s
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The board and its committees’ composition and the record of att
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Corporate governance report continued recommendation of the NRH
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Independence of directors The MTN board comprises a majority of
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Corporate governance report continued The process included: • A
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is submitted to shareholders for sanctioning at the annual gene
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Corporate governance report continued Directors Independent non
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Audit Meetings attended Risk management and compliance committe
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Corporate governance report continued Additional Group tender c
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is assisted by three regional vice presidents (VPs) who communi
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Corporate governance report continued The committees’ profiles
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External audit The joint external auditors provide an independe
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Corporate governance report continued The committee is responsi
African Annual Reports
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