Build the largest most valuable platforms

Leading digital solutions for Africa’s progress

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Fintech and digital
services

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MTN digital & fintech vision
The leading digital platform of Africa; unlocking economic growth through financial and digital solutions for
consumers and businesses

Meet Kafui
Kafui lives in Takoradi (Ghana). She uses MoMo to
manage her business and payments; she also sells
her products online with MoMoMarket.
She took a business loan with MoMoAdvance and
invested it in buying new products to support her community.
She used aYo to insure her inventory and reduce
her business risks.
She sends money and often shares “wisewords”
(a local ayoba content channel) to her son who is
studying in Cape Coast.
She is the leader of an ayoba group chat where
local small shop owners coordinate to buy products
in bulk at reduced prices.
She enjoys listening to one of ayoba’s church channels on
weekends and watches live Sunday functions on ayoba when
she travels to Accra for business.

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Building on a scaled wallet platform and network
Integrated messaging, fintech, e-commerce and digital content platform

Consumers Deposit, withdraw Wallet & payment

Data scoring & analytics
Businesses
Insurtech Payment acceptance
E-commerce & loan and ecosystem payments
Payment and Subscription & Content
e-commerce distribution
API & managed services Customer engagement
Integrated Platforms and messaging
Nano loan and
insurance

API Online store front

Local P2P and management
international
remittance
Integrated ecosystem
partners Micro loans &
Banks & Insurers insurance
Digital content Money transfer operator
Agent & logistics networks Distribute content
Developers & Fintechs
Free Payment networks
messaging Content providers

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Delivering through a BOLD strategy
Accelerate the growth in MTN territories through excellent delivery and evolve to a full OTT play

B Biggest Fintech &

Digital platform
o Operate
like an OTT
L Leverage
MTN’s core business
D Deliver
6 unicorns
in Africa and assets
Delivery
level
• Launch in key markets • Create TopCo to • Digitize distribution
expose value Wallet
• Increase in MTN base • Enable device lending
• Evolved technology Payment &
• Accelerate payment • Accelerate prepaid
• OTT operating model airtime payments E-commerce
• Compliance focus
• Acquire new talents • Airtime as a reward Banktech
• MVNO model
• Acquire non MTN • Rapid OTT adoption Insurtech
• Rapid growth through customers with free data
partnerships Remittance

ayoba

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Securing several partnerships to ensure success
Accelerate delivery to the market and scale rapidly through our partners

InsurTech Payment & e-commerce Banktech Remittance

Partnership scope

Payment Gateway
Insurance technology Remittance licenses
technology Banking licences
licenses Remittance operation
e-commerce technology Capital
Insurance expertise Remittance technology
e-commerce expertise Risk Sharing
network Network
Merchant tool technology

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Unique assets to leverage the opportunity
Competitive advantage due to scaled fintech platform, GSM customer base and Africa’s most valuable brand

Five MTN differentiators in the African market

AFRICA DNA EXTENSIVE BROAD SCALED PEOPLE &

& USER REACH & TRUSTED DISTRIBUTION FINTECH EXECUTIVE
KNOWLEDGE BRAND NETWORK ECOSYSTEM EXPERIENCE

Comprehensive Established agent Unique experience

Multi-channel access to Already scaled in several
understanding of user presence in key combination in key
large userbase key markets
needs in Africa markets industries

Leveraging Africa’s largest mobile network operator enabling

fintech and ayoba to have unique propositions

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Fintech

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Leveraging our assets, building Africa’s largest & most valuable fintech
player

Fintech The opportunity & Ambition

today market growth 2025

47 active MoMo Opportunity monthly active

100
US$25^
users in MoMo users to
16 markets
million million

750
billion Annual transaction
Market
R13.6 revenue in 2020, value US$
growth of 23.9%*.
billion Contributes 8% to MTN
opportunity billion
Group service revenue
95% ofwithpayments Fintech contribution to
20%
remain cash based
90% of economies driven
MTN service revenue
US$150
by small business
value of
transactions in
billion 2020,
up 86.6% in Q1 2021
75% ofnotMobile Money users still do
have access to loans, Nano
loans for business remain
untapped

16 567 transactions per

minute, up 46.7%
in Q1 2021 2.6% Insurance penetration in
Sub Saharan Africa

^R350 billion - key value pools

Source: Market sizing: internal desktop research, delta partners market sizing
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On track to be the largest fintech player in Africa
Our ambition is to go beyond traditional telco-led Mobile Money play

We expect to be #1 telco-led wallet before end of 2021

2020
Overview
Number of
MAU (#m) 46 to 50m 21m 22m 47m

Number of
markets (#) 9 14 18 16

Ambition is to move beyond the traditional telco-led MoMo with the OTT super app ayoba
Payment focused Social media payments & Ecommerce and
and OTT players supervv
apps lifestyle platform

Source: Competitor benchmark: desktop research and MTN internal

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Unpacking MTN fintech markets
MTN has scaled user and transaction penetration, secured licences and deployed local operation

Region Country Population Active MTN MTN Tnx Fintech licence

#m wallet #m value / GDP status

South Africa 59 0.3 0% Bank led

Southern
Zambia 18 3.6 20% Telco led
Western Africa
eSwatini 1 0.5 16% Telco led

36% 3% 0.4% Nigeria 200 5.0 0% Super Agents

Eastern
Ghana 30 10.5 120% Telco led
1% Cote d'Ivoire 27 5.0 23% Telco led
Central 29% Western
2% Africa Guinea C. + B. 15 1.3 10% Telco led
1%
25%
Benin 13 2.8 64% Telco led
3%
Financial
Liberia 5 0.7 38% Telco led
service
account %^^ Central Cameroon 26 4.0 25% Telco led^
Southern
Africa Congo 5 1.7 5% Telco led^
Credit card 16%
penetration %^^ Uganda 44 8.4 40% Telco led
60%
Eastern Sudan 42 0.0 0% Telco led
25%
Insurance Africa South Sudan 11 - 0% Telco led
penetration %^^
Rwanda 13 3.5 67% Telco led

^In application
^^ Data.worldbank.or, internal MTN desktop research, DELTA partners
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Blueprint to reach 100m active wallets by 2025 | Opportunity US$4.3bn
wallet
Continue penetration within existing MTN base | Access to non-MTN subscribers in existing markets | New markets

MoMo Monthly Active Users

Strategy overview and focus
(MAU)
120 000 000 120 000 000

>100 million • Move penetration from 40% → 70%

100 000 000
94 337 918 100 000 000 within MTN GSM base
84 185 119
77 435 013 • Win in Nigeria with the right approach
on PSB set up; and
80 000 000 80 000 000

58 766 001 deploy full MoMo product offering

60 000 000 60 000 000

and ecosystem
47 million
40 000 000 40 000 000
• Grow and expand in new markets

• Advance service growth by enabling

recurring usages
20 000 000 20 000 000

- -

• Open MoMo to non MTN users with

2020 2021 2022 2023 2024 2025
MoMoApp and ayoba
Nigeria SA WECA SEA MENA Total

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Well-positioned to seize payment & e-Commerce | Opportunity US$8.6bn
Largest and growing, merchant base | At-scale mobile wallet platform | Strong brand Payment

In 2 years we have > 500k Based on established

merchants using MoMoPay to operations, licence holdings
accept payments, ambition to and mature relationships with
reach 3 million in 2025 regulators in 16 countries

Through the wallet, MTN Large distribution network of

offers a unique payment stores and agents, leveraged
process with escrow as well to enable e-Commerce
as lending logistics

Highly recognised & trusted brand Scaled mobile wallet provides a

(#1 in Africa), builds trust in captive consumer base for
payments offering for merchants merchants to leverage
and consumers

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Prioritising BankTech value propositions | Opportunity US$7.8bn
lending
Combining data wealth and scaled mobile wallet, we currently facilitate US$100m worth of loans per month

MoMo Consumers MTN Consumers MoMo Merchants MoMo Agents

MoMo-Advance Airtime-Advance Merchant-Advance Agent-Advance

(live in Uganda) (planned Q1 2022) (planned Q3 2021) (Nigeria loading Q2 2021)

Lending product embedded in the
MoMo user journey
Targeting P2P, bill payment, and
merchant payment use cases
Lending product for MTN Product leveraging merchant Loan on MoMo float availability
consumers depleting airtime MoMo payment history and during peak time & in remote area
merchant business turnover data
Replacing existing partners and Improving MoMo customer
saving estimated US$200m p.a experience

Live with own-solution in one market and through partnerships across five markets
Aim to be live across all our markets by 2023

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Gaining momentum on InsurTech venture “aYo” opportunity US$1.8bn
Ambition to become Africa’s #1 micro/mass insurance provider InsurTech

2021 development & strategy 2025 InsurTech ambitions

Current aYo overview

• 11.3m insurance policies sold since
inception (6.7m active)
33m
• 3 markets live | Micro hospital & Life Active customers
Insurance
• To add 2 markets in 2021, including
Nigeria
Strategy US$ 455m
• Expand in more countries Revenues
• Continue leveraging core MTN and
fintech platforms
• Onboard Sanlam as a strategic
partner to accelerate InsurTech Full portfolio
Micro, life, retirement,
We are onboarding Africa’s largest insurance company (Sanlam)
as a strategic partner to accelerate InsurTech expansion and growth
saving, general

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Leveraging our wallet, receiving over US$1bn p.a | Opportunity US$0.5bn
Targeting a 4x increase in our remittance volumes by 2025 Remittance

Regional and inbound remittance potential Our strategy

Where we are today

UE Continue to grow ecosystem
• Opened >30 regional corridors
US$25bn ME&A partners and regional corridor
US enabling customers to send/receive
US$11bn
U$18bn
funds to/from courtiers in SSA through standards tech and
commercial
• >50 partners including world remit,
Western Union, money gram sending
traffic Launch inbound remittance in
Regional Nigeria contributing to 40% of
US$14bn • Receive >US$1 billion international
remittance p.a. total inbound remittance to SSA
• Send >US$100 million p.a
• Launched our own remittance App Drive aggressive pricing on
Remittance potential “Homeland” in UK Homeland and launch in Europe &
• Remittance to SSA growing US
>10% p.a. and currently
estimated at US$55 billion p.a.
Use Airtime and Data as well as
• Within Africa formal remittance synergies with the core telco to
estimated at US$14 billion p.a
drive volumes
and growing with regional
economic integration

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Structural separation of fintech business to deliver ambitions & reveal
value

Rationale
Local Opco set up
• Local Opco licences
• Enabling operating model • Companies set up
• People and process separation
• Attract strategic partners • Customer ownership
• Accounting separation
• Comply with local regulations

• Reveal value TopCo set up

Ongoing assessment of key considerations
• TopCo company set up
• Technology separation
Q1 • Central operation and service set up
• People and process set up
2022

• Engagement with potential Fintech consolidation

strategic partners • Transfer of ownership
• Accounting consolidation
• Countries specific most efficient
consolidation path
Transaction
• Strategic partnership
• Investment

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Our 2025 Ambitions

100 million >20%

active MoMo users contribution to MTN Group service revenue

Leverage 1st Wallet unicorn to unlock

+ 4 new unicorns
(Payment, Insurtech, Banktech, Remittance)

Grow and expand beyond MTN customers and markets

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Digital & ayoba

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ayoba is our platform to harness Africa’s unique digital ecosystem &
context
Triple play of free messaging, content distribution service and e-Commerce powered by an open platform

Free messaging suite

Supported by free data, a full messaging service including groups,
media sharing, voice notes, SMS continuity, VoIP and video calling

Open
Content and channel services platform
Opening of
Global & local content distribution & Go To Market leveraging
platform to 3rd
The African Digital global brand & local presence
party services
economy catalyst delivered via
channels,
BOTs and app
Social-Commerce in app
Integrate fintech as a financial service & payment method
to enable
ayoba to be a digital market place

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We aim to reach 19m MAUs by 2021 and 100m by 2025
Our plan is to leverage MTN existing base to scale up quickly and then grow as OTT player in new markets

Jun
2020 2021 2023 2025
2019

100m

App of 41m
the Year
Monthly Launched
in 20
active countries 19m OTT play in
users big African
markets
5,5m Leverage MTN
2,2m data & Fintech
435k

Messaging Gaming MoMo Micro apps Premium content E-commerce

Product
expansion Channels Free data Music Voice & Video App in App OTT play

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The ayoba platform aims to harness growth in the African digital economy

ayoba The opportunity & Ambition

today market growth 2025

Opportunity
5.3 million
ayoba users
in 20 markets US$8.5^
Grow active monthly
ayoba users to 100
million
billion GMV

20 Markets
Market growth
Capture >10% of the
GMV of the digital
economy to reach
US$1 billion

475m Mobile data connections by 2025

5 In-app services
71% Smartphone penetration by
2025 vs 45% today

3.9% GDP of the digital economy

today

^R118bn – key value pools

Sources: GSMA, Statista, Delta Partners analysis
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The digital economy opportunity in SSA
Enablers for a digital economy in Africa are aligned to enable a strong acceleration in the next 4 years

Acceleration of Acceleration of Build up of Large potential of Digitalisation of Success in digital

mobile data smartphone digital economy digital services services & in Africa requires
penetration penetration value chains by 2025 e-Commerce localisation

Mobile data 45% of mobile Digital economy is Digital content Content not bound to Big digital players
connections in SSA to connections are only 3,9% of the GDP distribution shows a traditional channels, address big markets
grow 3 fold by 2025 to smartphone users R118bn market size with mobile & PC first
reach 475m for MTN on the main capturing 85% of
verticals video consumption in Localisation is still
Driven by network Expected to grow Nigeria. required to succeed
expansion & data cost to 71% by 2025 driven on the continent
reduction by decline in device E-commerce growing
prices very fast

Significant potential for a Super-App to capture the African digital opportunity

Network & distribution assets enable a unique opportunity to become Africa’s Digital Giant

Sources: GSMA, Omdia, TeleGeography, Delta Partners analysis

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Capturing a large share of the GMV^ of the Digital Economy
Main verticals covered by the app have a total market potential of R118 billion

Digital services revenue evolution within the MTN footprint

(Rb)

Music
E-Commerce
Gaming and e-Sports
118
6
US$8.5bn
Video
^^Total market size in MTN footprint,
13
excl. fintech, Delivery, 2025
E-Health
17
E-Learning

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>10%,
48
2
4 27
8
8
13 29 R10-15bn
12 % GMV, Absolute value GMV captured in
ayoba, excl. fintech, Delivery, 2025
2020 2025

Aim to capture >10% of the GMV of the digital sector in our footprint to
reach R10-15bn GMV (~US$1bn) by 2025
^ Gross merchandise value
Sources: GSMA, Statista, Delta Partners analysis 4
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Development phase of ayoba is organized around 3 stages
Completing stage 1 this year and stage 2 by 2023

ENRICHED COMMUNICATION
(CONTENT, BUSINESS)

FREE DATA ALL

NETWORKS

OTHER
E-WALLETS
INSTANT
MESSAGING MVNO
TELECOM
FREE DATA OFFERING
OTT
MTN FINANCIAL
MOMO SERVICES
MARKET
ACCOUNT PLACE
FREE
CONTENT

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Our 2025 Ambitions

Capture

100 million >10% to reach

US$1 billion
active ayoba users

GMV of digital sector

Enablers for a digital economy in Africa are aligning for a

strong acceleration in the next 4 years
ayoba will capture this growth by
leveraging telco & fintech platforms
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Take-aways

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Key risks/limitations mitigated through deliberate interventions
We have a clear plan to mitigate those risks, with the main actions well advanced

• Structural separation of fintech business

Appropriate operating model to support ambition • New operating model implemented together
with Topco Investment in technology, people &
strategic partnerships
EXECUTION

• RAPID execution of 6 unicorns with integrated

platform
• Strategic investment and partnership to support
Disruptions to current commercial model
rapid growth
• Free Data & SMS continuity as differentiator
COMPETITION

PSB licence in Nigeria • Engagement with regulators and partners

REGULATION

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Fintech & ayoba
Our vision is supported by 2 platforms

Africa’s Africa’s
Super platform Super App

Fintech
Wallet Instant Messaging
Payment & E-commerce Multimedia content
BankTech Lifestyle applications
InsurTech Digital services
Remittance Social commerce

The combination of ayoba and Fintech platforms is a unique asset to harness Africa’s digital economy

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DigiFin revenue ambition
Ambition is to grow and diversify revenue to contribute at least 20% of Group revenue over the medium term

DigiFin revenue composition • 100 million ayoba MAU

120%
• Platform to distribute digital content and
Wallet Payment and E-commerce BankTech InsurTech ayoba & digital service
• ~60 million policies
• Successful execution of product roll out
100%

19% • geographic expansion with new strategic

partner
80%

1%
• US$4 billion annual remittance volume
26% • Continues volume growth through partners
60%

6%
40%
• US$4 billion loans per month
• Successful execution of Banktech roadmap

47%
• 3 million active merchant
20%

• Successful implementation of product

0%
roadmap

2020 2025 • 100 million active wallet

• Continue leveraging MTN and succeed
9% of MTN Service revenue >20% of MTN Service revenue in Nigeria
revenue
Investment in technology and skills to support execution
Strategic partnership to enable RAPID scale for each vertical with tailored operating model
EBITDA^ margin ~30% and capex intensity <5% to remain stable over the period

^ EBITDA subject to change with structural changes of Fintech business

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MTN DigiFin leadership
a global team, passionate about Africa and committed to unlock the full potential of the Digital economy

Chris from
Kampala to
Monrovia

Aminata
Komba Alain from from
from Cameroon Conakry
Zambia
Usoro
from
Nigeria
Serigne from Sam
Dakar to from Andrew & Andrew
Joburg Eswatin Cedric from
Eli from CPT &
i Abidjan to Joburg
from
Joburg
Ghana
Phrase from
Lynda from
Kampala to
Cote
Joburg
D’Ivoire

Chantal
Elsa from from
Roma to Rwanda
Lagos Etienne from Tiemoko from
Paris to Abidjan Mali

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Key take-aways
Ambition 2025 DigiFin summary

$
Africa’s digital economy We are building Africa’s We are delivering Our proven InStartUp
opportunity is untapped; Super Platform and 6 Unicorns; we are done model gives us agility
it is happening NOW! Super App with one! and RAPID scale

475m 100m US$750bn+ Q1 2022

smartphones MAUs transactions full set up of
Fintech TopCo
revenue opportunity

US$35bn 30% 3m >20%

merchants of MTN service
of GDP moved revenue by 2025

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