MTN GROUP LIMITED - MTN Nigeria and IHS amend service agreement

MTN Nigeria and IHS amend service agreement

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

MTN Nigeria Communications Plc and Global Independent Connect Limited, INT Towers Limited, IHS
(Nigeria) Limited and IHS Towers NG Limited, Nigerian affiliates of IHS Holding Limited amend
service agreement

Shareholders are advised that MTN Nigeria Communications PLC (MTN Nigeria) and Global
Independent Connect Limited, INT Towers Limited, IHS (Nigeria) Limited and IHS Towers NG Limited,
the affiliates of IHS Holding Limited (together, IHS) have reached an agreement to expand the scope
of their current service agreement, and amend the currency conversion provision for tower services.

In 2014, MTN Nigeria took a strategic decision to sell its passive infrastructure (including towers) and
focus on its core business. Although MTN Nigeria retains a small number of towers, it currently has
agreements in place with a number of tower providers across the country, including IHS.

MTN Nigeria leases the majority of the tower/site space required for its network equipment from IHS
and has concluded a renegotiation of certain terms of its tower rental agreements. These include an
increased focus on rural connectivity and fibre deployment. Furthermore, the changes will result in
improved cost for future technology evolution and backhaul in the network, which will bear fruit in
the longer term, whilst agreeing to move the reference rates for conversions to Naira from the Central
Bank of Nigeria's official rate (CBN) to the Nigerian Autonomous Foreign Exchange Rate (NAFEX).

This change in reference rate currently at N360 (CBN) to N385 (NAFEX) reduces the EBITDA margin in
2020 by approximately 0.4pp on an IFRS16 basis. This is however offset over time by the improved
pricing and increased focus on rural connectivity and backhaul in the network. MTN Nigeria will
continue to focus on operational efficiencies to further mitigate these impacts.

Commenting on the agreements, MTN Nigeria’s CEO Ferdi Moolman said: “We are pleased to have
agreed a mutually beneficial update to our agreements with IHS. These changes provide clarity for
both parties on foreign exchange denomination with Naira payments, while also extending our
relationship into key new areas. I am particularly excited about the partnership to expand fibre
connectivity and deliver accelerated rural telephony. The COVID-19 pandemic has demonstrated the
huge importance of digital infrastructure, and these agreements enable us to enhance fibre networks,
while rapidly connecting those Nigerians in rural areas who are currently unable to access
telecommunications services.



For and on behalf of the MTN Group board

Group Secretary

Fairland

23 July 2020

Lead Sponsor

Tamela Holdings Proprietary Limited

Joint Sponsor

J.P. Morgan Equities South Africa Proprietary Limited

Date: 23-07-2020 03:38:00
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