MTN NIGERIA COMMUNICATIONS : AUDITED FINANCIAL STATEMENT FOR 2021

MTN Nigeria Communications Plc

Audited consolidated and separate financial statements

for the year ended 31 December 2021

Together with Directors' and Auditor's Reports

MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2021

Corporate Information

Registered Company Number		395010
Directors	Names	Nationality	Position
	Dr. Ernest Ndukwe, OFR	Nigerian	Chairman
	Mr. Karl Toriola*	Nigerian	Chief Executive Officer
	Mr. Ralph Mupita	South African	Non-Executive Director
	Mr. Jens Schulte-Bockum	German	Non-Executive Director
	Mr. Michael Ajukwu	Nigerian	Independent Non-Executive
			Director
	Mr. Paul Norman**	South African	Non-Executive Director
	Mr. Rhidwaan Gasant	South African	Independent Non-Executive
			Director
	Mr Ferdinand Moolman***	South African	Non-Executive Director
	Mr. Muhammad K. Ahmad, OON	Nigerian	Independent Non-Executive
			Director
	Mr. Abubakar B. Mahmoud, SAN	Nigerian	Non-Executive Director
	OON
	Dr. Omobola Johnson	Nigerian	Non-Executive Director
	Mr. Andrew Alli	Nigerian	Non-Executive Director
	Mrs. Ifueko M. Omoigui Okauru,	Nigerian	Non-Executive Director
	MFR
	Mr. Modupe Kadri	Nigerian	Executive Director
	Ms. Tsholofelo Molefe****	South African	Non-Executive Director
	Mr. Charles Molapisi*****	South African	Non-Executive Director

*Became CEO effective 1 March 2021| **Retired 30 July 2021| ***Ceased to be CEO 28 February 2021, now Non-Executive Director|

****Appointed effective 3 May 2021| *****Appointed effective 2 August 2021

Registered office	4 Aromire road,
	Off Alfred Rewane
	Ikoyi Lagos
Holding company	MTN International (Mauritius) Limited
	incorporated in the Republic of Mauritius
Auditors	Ernst & Young Nigeria
	10th & 13th floors
	UBA House
	Marina
	Lagos
Company Secretary	Uto Ukpanah
Registrars	Coronation Registrars Limited
	9 Amodu Ojikutu Street
	Victoria Island, Lagos
Tax Identification Number	00969009-0001

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MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2021

Contents

	Page
Financial highlights	3
Directors' report	4
Statement of directors' responsibilities	8
Statutory audit committee report	9
Statement of corporate responsibility for financial statements	10
Independent auditor's report	11
Consolidated and separate statement of profit or loss	16
Consolidated and separate statement of other comprehensive income	17
Consolidated and separate statement of financial position	18
Consolidated and separate statement of changes in equity	19
Consolidated and separate statement of cash flows	21
Notes to the audited consolidated and separate financial statements	22
Other national disclosures:
Value added statements	91
Five-year financial summaries	93

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MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2021

Financial highlights

	Notes	2021	2020	% Change
		N million	N million
Revenue	8	1,654,299	1,346,390	22.9
Operating profit		584,747	426,713	37.0
Profit before taxation		436,687	298,874	46.1
Profit for the year		298,654	205,214	45.5
Share capital	26	407	407	-
Total equity		264,981	178,386	48.5
Basic/diluted earnings per share (N)	42	14.67	10.08	45.5
Net assets per share (N)		13.02	8.76	48.5
Stock Exchange Information
Dividend per share (DPS): - Interim (N)		4.55	3.50	30.0
Dividend per share (DPS): - Final (N) (proposed)		8.57	5.90	45.3
Market price per share as at year end (N)		197.00	105.00	87.6
Market capitalisation as at year end		4,009,935	2,137,275	87.6
Number of shares issued and fully paid as at year end (in	42	20,355	20,355	-
millions)

The financial highlights reflect Group numbers only.

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MTN Nigeria Communications Plc

Audited consolidated and separate financial statements for the year ended 31 December 2021

Directors' report

The directors present their report on the affairs of MTN Nigeria Communications Plc and its subsidiaries (the Group), together with the financial statements and independent auditors' report for the year ended 31 December 2021.

Principal activities of the Group

MTN Nigeria Communications Plc, formerly MTN Nigeria Communications Limited (MTN Nigeria or the Company) was incorporated on 08 November 2000 as a private limited liability company under the Companies and Allied Matters Act 1990 as amended. It was granted a licence by the Nigerian Communications Commission on 09 February 2001 to undertake the business of building and operating GSM Cellular Network Systems and other related services nation-wide in Nigeria. The Company commenced operations on 08 August 2001 (commercial launch date). Currently, the Company holds a Unified Access Service License (UASL).

The Company re-registered as a public limited company, MTN Nigeria Communications Plc on 18 April 2019 and listed by introduction on the Premium Board of the Nigerian Stock Exchange on 16 May 2019.

The registered office address of the Company is 4, Aromire Road, Off Alfred Rewane, Ikoyi Lagos. The principal place of business is MTN Plaza, Falomo, Ikoyi, Lagos.

The Group's subsidiaries are XS Broadband Limited, Visafone Communications Limited and Yello Digital Financial Services Limited. The subsidiaries principal activities are the provision of broadband fixed wireless access service, high quality telecommunication services and mobile financial services in Nigeria.

In its commitment to the fulfilment of the financial inclusion agenda of the Central Bank of Nigeria (CBN) and Federal Republic of Nigeria, the Company applied for a Payment Service Bank license. An Approval in Principle was granted by the CBN on 4 November 2021. The Company is working towards meeting the conditions leading to the granting of final approval by the CBN.

The Nigerian Communication Commission (NCC) on 5 April 2019, granted Visafone Communications Limited (Visafone) the approval to transfer its 800mHz license and spectrum to MTN Nigeria Communications Plc. On 24 July 2019, the Board of Visafone approved the voluntary winding down of Visafone Communication Limited. The final general meeting of the Company was held on 5 October 2020 whereby the account of the winding up of the Company was approved. The process for the transfer and liquidation is currently on-going.

Business review

The Group recorded revenue of N1.65 trillion (2020: N1.35 trillion) and a profit after tax of N298.65 billion (2020: N205.21 billion) for the year.

Operating results and dividends
The following is a summary of the Group's operating results:
	2021	2020
	N million	N million
Revenue	1,654,299	1,346,390
Operating profit	584,747	426,713
Profit before taxation	436,687	298,874
Income tax expense	(138,033)	(93,660)
Profit for the year	298,654	205,214

During the year ended 31 December 2021, N212.7 billion (31 December 2020: N133.0 billion) dividend was approved and paid as follows:

∙	31	December 2020 final dividend:	N120.1 billion
∙	30	June 2021 interim dividend:	N92.6 billion

On 29 July 2021, the Board of Directors approved interim dividends of N92.6 billion for the year ended 31 December 2021 (Interim 2020: N71.2 billion).

The interim dividend represents N4.55 kobo per ordinary share on the issued share capital of 20.3 billion ordinary shares of 2 kobo each for the period ended 30 June 2021.

The Board of Directors recommend the payment of a final dividend of N8.57 per ordinary share of 2 kobo each subject to shareholders' approval at the forthcoming Annual General Meeting (AGM). If the proposed final dividend is approved, the total dividend for the financial year ended 31 December 2021 will be N13.12 per share of 2 kobo each. Withholding tax would be deducted at the point of payment.

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