MTN GROUP LIMITED - MTN Trading Statement for the year ended 31 December 2019

MTN Trading Statement for the year ended 31 December 2019

MTN Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/009584/06)
(Share code MTN)
(ISIN: ZAE000042164)
(“MTN” or “the Company” or “the Group”)

Trading statement for the year ended 31 December 2019


MTN is currently in the process of finalising its results for the year ended 31 December 2019, which
will be announced on the Stock Exchange News Service of the JSE Limited (“SENS”) on or about
Wednesday, 11 March 2020.


MTN has adopted the new accounting standard on leases, IFRS 16, with effect from 1 January 2019
and, as permitted by the standard, comparative numbers have not been restated and remain on the
previous accounting treatment of operating leases in accordance with IAS 17. The adoption of IFRS 16
has resulted in an approximately 13% reduction in the reported earnings numbers, arising primarily
from the net effects of (a) lower operating lease costs, (b) higher finance costs, and (c) higher
depreciation charges.

Shareholders are advised that MTN expects to report growth in headline earnings per share (“HEPS“),
on an IFRS reported basis (2018 on IAS 17 and 2019 on IFRS 16) of between 30% and 50%, i.e. HEPS of
between 438 cents and 506 cents for the year ended 31 December 2019, compared with HEPS of 337
cents for the prior financial year. The change in earnings per share (“EPS”) is expected to be between
0% and 10% i.e. a figure of between 485 cents and 534 cents compared with EPS of 485 cents for the
prior financial year.

The anticipated changes in HEPS and EPS for the year ended 31 December 2019, on an IFRS reported
basis are illustrated in the table below:


                                  IAS 17
                                  reported               IFRS 16 reported
                                  31 December 2018       31 December 2019
                                                         expected range        expected increase
                                  cents                  Cents                 %
 HEPS                             337                    438 to 506            30% - 50%
 EPS                              485                    485 to 534            0% - 10%


HEPS were negatively impacted by non-operational items in the financial year ended
31 December 2019 totalling approximately 128 cents per share, on a reported IFRS 16 basis (2018: 215
cents per share, on an IAS 17 basis).

The like-for-like information disclosed below has been prepared for illustrative purposes only and is
treated as pro forma financial information by the JSE Limited. The information is the responsibility of
the Group's board of the directors and because of its nature may not fairly present the Group's
financial position, changes in equity, results of operations or cash flows.

On a like-for-like IAS 17 basis for both years, MTN expects to report growth in HEPS of between 55%
and 75% i.e. HEPS of between 522 cents and 590 cents for the year ended 31 December 2019,
compared with HEPS of 337 cents for the prior financial year. EPS, on an IAS 17 basis, are expected to
be between 15% and 25% higher i.e. between 558 cents and 606 cents compared with EPS of 485 cents
for the prior financial year.

The anticipated changes in HEPS and EPS for the year ended 31 December 2019, on a like-for-like IAS
17 basis are illustrated in the table below:



                                 IAS 17          IAS 17
                                 31     December 31     December
                                 2018            2019
                                                                            expected
                                                      expected range        increase
                                 Cents                Cents                 %
 HEPS                            337                  522 to 590            55% - 75%
 EPS                             485                  558 to 606            15% - 25%


HEPS were negatively impacted by non-operational items in the financial year ended
31 December 2019 totalling approximately 133 cents per share, on an IAS 17 basis (2018: 215 cents
per share, on an IAS 17 basis). MTN will detail the relevant adjustments used to arrive at the pro forma
information when its full-year results are published on or about 11 March 2020.

The abovementioned non-operational items for the year include costs relating to the Nigerian
regulatory fine interest, hyperinflation adjustments, net foreign exchange losses, impairment on Iran
receivables and the impact of divestments made during the year.

The financial information on which this trading statement is based has not been reviewed and
reported on by the external auditors of MTN.


Fairland
11 February 2020
Lead sponsor

Tamela Holdings Proprietary Limited

Joint sponsor

JP Morgan Equities South Africa Proprietary Limited

Date: 11-02-2020 05:05:00
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