Welcome to MTN Group's Capital Markets Day. Thank you very much for making the time to join us. My name is Thato Motlanthe. During the course of today, we'll be taking you, as our investment community and selected media, through a journey of MTN's Ambition 2025 strategy. Of course, there's nothing quite as effective as in-person interactions. Fortunately, adapting to the challenges of the world around us is actually part of what we specialize in. We're happy to be able to host everyone on this virtual platform. I hope you've all been able to access the presentation packs and other content on our website that provides further context to the day. We will break down today's schedule into four broad sections, through which our executive team will deliver various presentations and provide insights into the company as a whole, as well as a number of our key business streams. In section one, MTN Group President and CEO, Ralph Mupita, will deliver an overview of the company's Ambition 2025 strategy. Ralph will be followed by our Group Chief Financial Officer, Tsholofelo Molefe, who will take us through the key points of MTN's financial framework. Section two will cover MTN's drive to continue evolving and growing our leading and connectivity infrastructure business. The program will thereafter shift gears and get into the third section, covering our plans to build the largest and most valuable platforms, which we believe will accelerate our growth over the medium term. The day's final session provides an overview of our second-to-none platforms, as well as the context of how MTN's risk and regulatory framework provides the necessary guardrails that direct our ambition to accelerate growth in the business. Through the day, there will be opportunities to ask the executive team questions during live Q&A sessions. These will follow selected presentations. Your written questions will be filtered through our CMD host. Putting the day together has been an enormous effort, from the logistics to compiling the slides, as well as creating a variety of videos and multimedia. We hope to deliver a Capital Markets Day that is not only insightful but also interesting and cool to watch. To that end, I think it's important to acknowledge and appreciate the contribution of the various teams within the MTN family who have supported this project. Of course, this is along with our external partners who have helped to make today possible. On that note, thanks again for tuning in. We trust that by the end of the day, you'll have an excellent grasp of MTN's Ambition 2025 strategy. Let's get going. It's my pleasure to hand over to our host, Gugu Mfuphi, who will facilitate today's proceedings. Well, thank you so much, Thato, and hello to everyone. Welcome to MTN Capital Markets Day. As Thato mentioned, this is an event that would normally take place live with physical interaction, though we're rolling with the times and the new challenges that COVID-19 does present with us. We're broadcasting from Johannesburg here today and linking to the members of the executive team who are currently in other locations, including Lagos, Dubai, and London. You may be aware that running a live stream event like this does involve many technical elements, and these can lead to variances in video feeds and other factors that live broadcasts in a COVID-19 environment can bring about. It's just the nature of the beast, and you know what? It's also pretty exciting. If any problems do pop up, we want you to stay with us on the line and do trust that in the background, we'll be sure to make a plan to ensure that today's broadcast does go about seamlessly. I'll be facilitating today's program, which includes presentations, Q&A sessions, and other multimedia pieces that will help you understand MTN's Ambition 2025 vision. During the live Q&A sessions, I'll be receiving your written questions and facilitating these sessions with the members of the MTN Executive Committee. To present a business overview and a full explanation of the Ambition 2025 strategy, it's MTN Group President and CEO, Ralph Mupita. Thank you, Gugu. Much appreciated. I'd like to extend my warm welcome to all the investors and other stakeholders who are joining in on this virtual Capital Markets Day. Given COVID-19 developments, it was not possible to have the usual face-to-face event. We have prepared what we believe will be an information-rich and insightful day on Ambition 2025 and provide color about the markets we operate in. At MTN, we are very excited about Ambition 2025 and the impact this strategy will have to support Africa's progress, while at the same time delivering value to stakeholders. Let me kick off this Capital Markets Day by providing an overview of the business and our Ambition 2025 strategy. My colleagues will provide more detail in subsequent presentations on how we are positioned for accelerated growth, faster deleveraging of the Holdco balance sheet, and how we are arranging ourselves to unlock value in our infrastructure assets and platforms over the medium term. Today, MTN is a leading telecommunications and digital services provider on the African continent in terms of subscribers and revenues, with operations in 17 African markets and four markets in the Middle East. We have 278 million subscribers and service revenue of ZAR 170 billion, and an EBITDA margin that's healthy at 45.3%. Supported by demographic trends of low internet and financial services adoption across our markets, our data and fintech businesses are growing service revenue at approximately 31% and 24%, respectively. In the course of today, we will show you how this growth will evolve over the medium term and how well MTN is positioned to capture this growth. The MTN brand is exceptionally strong across the markets, and this year it has been voted the most valuable brand in Africa by Brand Finance, maintaining the leadership position that the business has enjoyed for several years. On this chart, we provide an overview of our subsidiaries' contribution to subscribers and EBITDA. Let me pick up some selling points on this chart. MTN Nigeria is currently our largest market, accounting for contributions of subscribers at 32% and EBITDA at 39%. As you can also see on the chart, South Africa and Nigeria combined account for just under 50% of subscribers and approximately two-thirds of earnings as of the end of 2020. We announced last year that we had commenced an orderly exit of the Middle East, starting with the consolidated subsidiaries of Syria, Yemen, and Afghanistan. You can see that the earnings contribution of the Middle East being at 5% of total. How do we manage our businesses? We have a highly experienced management team with skills covering telecommunications, financial services, as well as skills in operating in emerging markets. Looking at this team, I am proud of the diversity of nationalities that we have, as well as the gender mix that we have in the group executive committee. We leverage this diversity and inclusion in how we make decisions and execute, and I believe this diversity gives us a unique strength as the MTN Group. Most of the team will be presenting on their respective areas today, so you will have an opportunity to see that we do indeed have a strong leadership group that's behind the execution of this very exciting strategy. Before I unpack Ambition 2025, I would like to start off with a review of the progress we've made over the last four years. We've come a long way over the past four years and have established a strong foundation of commercial and operational excellence. We have grown subscribers from 270 million to 280 million. We have the number one NPS position in 15 markets and have made huge strides in the coverage, from 375 million subscribers to 504 million subscribers covered by our data services as of the end of 2020. From a financial resilience perspective, we've delivered solid service revenue growth and expanded margins, taking advantage of subscriber growth, improving internet adoption, and driving operating leverage. Our focus on deleveraging has gained traction, and we've seen lower holdco leverage and improving debt mix in more recent times. Lastly, our return on equity progression has been solid, increasing from 12.7% in 2017 to 17% in 2020, driven by both operating leverage and progress we've made on our asset realization program. You heard a short precis of our Ambition 2025 strategy earlier this year. Today, we want to unpack further what this is and why we believe it will support the socioeconomic progress of Africa and concurrently capture growth, drive faster deleveraging of the holdco balance sheet, and unlock value in our infrastructure assets and platforms. There is a global context that is the foundation of the strategic shifts and changes behind Ambition 2025. From an industry perspective, we've seen that developed market telcos missed the opportunities to scale in consumer digital services and are now mostly focused on delivering connectivity more efficiently and on enterprise services. On the other hand, emerging market telcos are now competing with big tech directly for access to the consumer's wallet, the Indian market is such an example of this development. Importantly for us as MTN, the data and financial services uptake in Africa is still in early stage of adoption, infrastructure and enterprise businesses are also nascent in their development. Looking at MTN more closely, our starting position is one of considerable strength and competitive advantage. We have a large connected registered customer base. We offer unparalleled service, registration, and cash distribution network, and the strongest brand in Africa. We have strong core connectivity operations. We have the largest fixed and mobile network in Africa. We have also built an API platform and analytics engine and have an exceptionally strong position in fintech and a foothold in messaging. That's the MoMo and Ayoba opportunities. Over and above the market opportunity we see and the competitive position of MTN, COVID-19 has accelerated the development of digital ecosystems across our markets. Developments we had anticipated to be 5-10 years out have been accelerated to today. We believe the time is right to reposition ourselves to take advantage of the opportunities to create value for stakeholders. We want to take advantage of the short window of opportunity that we see to win in digital services as customers come online for the first time. The operating environment is also shifting with de-globalization, a structural trend that was important in our decision to exit the Middle East. We are well-positioned to partner with nation states in delivering socioeconomic progress for the benefit of societies at large. Nation states are seeing the increased importance of digital infrastructure and the digital ecosystem during this time of COVID-19. Our Ambition 2025 strategy is anchored on a belief statement that everybody deserves the benefits of a modern connected life, as well as a strategic intent of providing leading digital solutions for Africa's progress. To achieve our strategic intent, we want to build on our leading connectivity network position. We want to use the scale and leverage it to build the most valuable platforms in the market. Our fintech business has already built scale through MoMo. In some markets, we are already offering lending and insurance with our strategic partners. We have ambitions to double the size of the platforms in the next 3-5 years, offering unique lending, savings, and e-commerce solutions across our markets. I'm sure what Serigne will tell you about what we are doing in the fintech business will help you understand why we're excited about the value and potential of this business. We have a vision of Ayoba scaling off the MoMo platform to create Africa's leading OTT super app, incorporating messaging, content, and advertising, amongst other services. The enterprise business has in the past been a relatively small contributor to group revenues. Looking forward, we see potential for converged services with growing unified communication offerings. In the move to industrial IoT with 5G virtualizations of workloads, AI, and edge computing, we see further exciting growth opportunities in the enterprise space. We have also some positive results in this arena, which Tumi and Jens will unpack for you much later. We're also looking to derive further value from our network through growing our business and driving efficiencies in our network as a service offering. In South Africa, we are currently offering this service to Cell C. We aim to offer network roaming in other markets, and have had encouraging discussions with some of the other MNOs that have overlapping operations to our markets. Finally, Chenosis. Chenosis is the first of its kind in Africa, and aims to aggregate and monetize APIs across the continent. We launched this in 2020, and we think it will grow materially over the next five years. In the near term, it will not be a material revenue and value contributor, but important for the development of the B2B ecosystem in Africa over the medium to longer term. I introduced this slide to you at our annual results presentation earlier this year, where I explained our strategic priorities, as well as those enablers that we deem vital to achieving success. I won't spend a lot of time here, but I want to reiterate what we are doing and why. We are building the largest and most valuable platforms in Africa. We'll have some of these platforms structurally separated in order to strengthen their operating models as they scale within different regulatory domains. Importantly, the structural separation will also be done in such a way as to reveal and crystallize value that is currently not reflected in the share price today. We will continue to invest in our strong connectivity business that provides the important foundation and access to GSM subscribers that the platforms will leverage off. Creating shared value is integral to our business, as it talks to not only the sustainability of our business, but our role in socioeconomic development across the markets. We have taken a step change in ESG in the business. We are committing ourselves to meeting net zero emissions by 2040. Charles will cover how through Project Zero we are planning to meet our emissions targets for both 2030 and 2040 timelines. Accelerating portfolio transformation talks to our asset realization program and the leveraging of our holdco balance sheet, both of which we'll hear later on from Sulu. This also includes a phased exit from the Middle East, which allows us to position ourselves as a true Pan-African business over the medium term. You will hear more detail about some of the vital enablers on these priorities from my colleagues later today. We have already started delivering on Ambition 2025. You'll hear more of that in the coming presentations. I really wanted to use this slide to demonstrate the size of ambition that we are talking about over the medium term. We are looking to exponentially increase MoMo and Ayoba active users to 100 million over the medium term. As we pivot from a product to a platform play. We are looking to double the base of data subscribers, capturing the largest revenue opportunity that we see over the medium term. There is a significant home opportunity that we see that Jens will cover in some detail later on. On the FibreCo opportunity, you will hear from Jens and Fred that we are looking to double the base of fiber assets we currently have, and we'll do this in an open access model with strategic partners that will bring funding and strategic benefits to support our growth. As previously mentioned, we are arranging ourselves to take a step change in ESG, and this will cover both our eco responsibilities, sustainable societies, and governance domain. As part of accelerated portfolio transformation priorities, we are committed to delivering on the asset realization program, faster deleveraging of the holdco balance sheet, and revealing the inherent value that's in our business. Sulu will cover some of this a little bit later on. She will also show that the asset realization program target of greater than ZAR 25 billion is well covered by the internal fair value of the assets that we are looking to monetize over the medium term. I won't spend too much time on this slide, as my colleagues will cover the details, but suffice to make three points. Firstly, the opportunities in both connectivity and platforms are large and are all growing. Secondly, we have a number 1 or number 2 position in our markets, so we're very well positioned to capture value from these opportunities. Finally, we have made investments ahead of demand for data and monetizing the opportunity will be done within a relatively stable CapEx envelope, as Sulu will cover in the following presentation. Before I hand over to Sulu, I wanted to touch on the structural separations of our fiber and Fintech businesses that I spoke to earlier. It is important to reiterate and clearly lay out the strategic rationale behind these structural separations. As I mentioned before, these businesses are scaling with a material growth opportunity lying ahead. As such, we want to ensure these businesses are focused with the right operating models and resourced with the appropriate human and financial capital to capture this accelerating growth that we find so exciting. We will be able to leverage the existing MTN-based brand network and footprint in the structurally separated businesses. We will also be better positioned to attract value-adding partnerships to scale, and accelerate the growth. MTN Group will look to maintain control positions within the structurally separated business with any partnership capital used for accelerating the growth. Cyril will provide extensive details on the Fintech business. Suffice to make a few comments on the structural separations. Firstly, we have already structurally separated the Fintech business in 12 out of our 16 markets as of the end of Quarter One 2021. We have made good progress with the setup of the topco that will hold the group's Fintech IP, tech platforms, and economic interest in the underlying opcos. Finally, we remain comfortable with the timeline that the topco will be fully operational by no later than the end of Q1 2022. Jens and Fred will take you through more details about our FibreCo plans. I just want to make two points on this particular chart. Firstly, with the structural separations, we are looking to create an open access model with the right operating model and ownership structure to provide services to third parties across Africa. The second point I'd like to make is that the timeline we see to completing the structural separation is that it may take us up to two years with this, depending on the regulatory approvals required for cross-country fiber deployment. We will cover a lot of the ground in the course of today. I hope that you will find it informative and insightful. We are certainly excited about the future of MTN as we continue to grow from strength to strength. In concluding the overview, I would like to reiterate a few important points. I think you'll agree we have a compelling and unique growth story. We are Africa's leading scale connectivity and infrastructure business, with number 1 or number 2 subscriber positions in all the markets we operate in. We have an exciting demographic opportunity with a fast-growing and youthful population, coupled with low data and Fintech adoption. We are well-positioned for the long term, given the digital acceleration of Africa, the benefits of the portfolio optimization program, and exposing value in our infrastructure, assets, and platforms. We also have a very attractive cash flow and return profile that Tsolo will talk to shortly. At the center sit our Fintech, Ayoba, enterprise, and API platforms, which play a vital role in driving the growth that we see ahead. Importantly, we have robust regulatory and risk framework and a disciplined capital allocation structure that provides the guardrails to ensure we realize our growth objectives in a sustainable way. The five key takeaways that we would like you to reflect on at the end of this session are as follows. Firstly, Ambition 2025 provides a compelling and unique growth opportunity in Africa. We have clear near-term value unlock opportunities, particularly in Fintech, FibreCo, and in the execution of the asset realization program. The deleveraging of the holdco balance sheet remains intact and is being accelerated. We have a robust risk and regulatory framework in place, and as you will have seen today, we have a strong, diverse, and experienced management team to execute and deliver on our ambitions. With that, I would like to say thank you for joining us today. The rest of my colleagues will provide you with a lot more detail on Ambition 2025. With that, let me hand back to Gugu. Well, thank you very much for that, Ralph. It's always quite helpful to get a big picture overview. As Ralph highlighted, we will have an opportunity to engage further with many more members of the ExCo team to get more detail and a better understanding of Ambition 2025. For now, though, we turn to the numbers, and we're joined by MTN Group Chief Financial Officer, Tsholofelo Molefe. Tsholo will break down the details of MTN's financial framework and value-based capital allocation plans. Thank you, Gugu. Good morning to everybody. Over the next few minutes, I will take you through the financial framework that underpins our strategy to deliver on Ambition 2025 and highlight our value-based approach to capital allocation. The framework has four key components. Firstly, delivering service revenue growth from the low to mid-teens under continued tough trading environment, supported by doubling data, platforms acceleration, and protecting voice. Secondly, expanding our EBITDA margins and earnings through our expense efficiency program, operating leverage, and reduced finance costs. Thirdly, reducing CapEx intensity supported by improved capital productivity, scale advantages, and disciplined capital prioritization. This will drive higher cash balances and reduced whole code leverage. Value-based capital allocation and improving returns is the critical lens that we use to apply the framework. Looking at service revenue, the evolution of our service revenue, as well as focusing on our services offered, one can see that the increased contribution from data is quite clear over the past few years. We do expect data to remain a key driver of growth under our new strategy. Our ambition is that it will contribute over 50% of service revenue by 2025, with voice being under 50%. In terms of our platforms, FinTech made up 8% of service revenue in 2020. Our ambition is to increase this to at least 20% by 2025. As a second component to the financial framework, we have an expense efficiency program that will enable margin expansion. We will continue to drive down costs to improve our margins as we have been over the past years. Our focus will be mainly on five key initiatives to achieve over ZAR 5 billion in expense efficiencies over the medium term. Cost savings in the mobile network, which includes energy savings and digital tools, will contribute over 44% of the savings. The other key areas of focus include trading goods, interconnect and roaming costs, as well as sales and general administration costs. By geography, the majority of savings will unsurprisingly come out of our biggest operating companies, namely South Africa and Nigeria, together contributing about 75% of savings. We are already seeing good progress being made in this regard. Moving on to CapEx, you will notice a decline in CapEx intensity from 19%-16% since 2018, which is a meaningful reduction and is in line with our objectives over the period. This has been achieved through improved capital productivity, scale advantages, disciplined capital prioritization, as I mentioned earlier. We will continue to drive growth and believe we can maintain our current CapEx envelope through unit cost reduction, strategic partnerships and hyperscalers, as well as spectrum efficiencies. We thus expect our CapEx over the medium term to remain in the range of ZAR 28 billion-ZAR 30 billion per annum, with about 60%-70% being focused on investment in core connectivity solutions and about 12%-16% focused on platforms in support of our investment strategy. In 2020, we released about ZAR 1.8 billion cash on our forecast working capital interventions, which were initiated in 2018. Our ambition is to release a further ZAR 5 billion over the medium term. This will be supported mainly by supply chain financing solutions and device receivables portfolio securitization. Our sustainable framework is underpinned by a disciplined capital allocation framework, which I am sure is familiar to many of you. Our first priority is to drive organic growth through investments in our networks and platforms in line with our Ambition 2025 while improving CapEx intensity. Secondly, stabilizing the balance sheet remains a key focus area for us, and we are committed to reducing our leverage through rebalancing our debt mix with rand debt making up at least 60% of our whole core debt. Thirdly, we will return cash to shareholders through a dividend. For the financial year 2021, we have guided that we anticipate paying an ordinary dividend of at least ZAR 2.60. Fourthly, we will look selectively at mergers and acquisitions where opportunities are aligned to our investment case. Lastly, should we have a surplus cash, we will consider share repurchases and/or special dividends once other capital allocation priorities have been met. Looking at the balance sheet, our balance sheet is in a strong position and is getting stronger. At the end of the first quarter of 2021, we had reduced net debt with group leverage declining to 0.6 times and whole core leverage remaining relatively stable at 2.1 times. We are showing an improved debt mix with SA rand debt at 54.2% at the end of Q1 of this year, supported by the early settlement of the $75 million facility. As I indicated earlier, our target for the medium term is a mix of 60% in rand facilities. We are committed to accelerating the deleveraging of the whole core balance sheet, and we will achieve this along with optimization of our debt mix, which will be achieved through solid operational performance and cash flow generation, improved cash upstreaming from our markets, over ZAR 25 billion of asset realizations over the medium term, and also considering liability management, depending on market conditions. In terms of our asset realization program and portfolio transformation, we are making progress on our asset realization, having achieved ZAR 4.3 billion of the ZAR 25 billion medium-term plan. This includes Jumia, BICS, and localization initiatives. We estimate that the current fair value of future focus on the asset realization program is at least ZAR 50 billion, where we continue to work on the sale of the assets we've identified as non-core. This includes delivering IHS and exploring the S.A. tower sale in this pack, as well as sell downs and further localizations in the opcos, including Nigeria and Ghana. IHS is the largest asset in the ARP portfolio, and we believe that conditions are looking favorable for this to proceed in the nearer term. From a pan-Africa perspective, we are committed to a process of divesting a 75% stake in MTN Syria and exiting the rest of the Middle East markets in an orderly manner over the medium term. As we have indicated to you previously, the exit of the Middle East will have a significant impact on the income statement from an accounting perspective, as we have to release the foreign currency translation reserves on cloud. This will, however, have no impact on adjusted earnings and cash flows. We've made excellent progress on improving the return on equity from 11.5% in 2017 to 17% in 2020. We are well on track to deliver our medium-term guidance of return on equity greater than 20%. We are comfortable that we will achieve this through the key drivers of return improvement, which includes some of the things I mentioned earlier, such as expense efficiencies, stable depreciation and amortization of the network, resulting in EBIT expansion, reduced finance costs, which will also improve earnings, as well as the asset realization program. In concluding the discussion on financial framework, the key takeaways are that we have built a solid foundation for financial excellence with a track record of resilient performance. We have strong cash generation to fund future growth with sustainable service revenue growth and efficiencies at all costs. We have a disciplined capital allocation with efficient capital deployment and a diversified portfolio of investments that deliver returns above the group's weighted average cost of capital, with a resilient balance sheet and a strong focus on driving shareholder value with an attractive free cash flow and ROE profile. Ladies and gentlemen, I trust you have a good overall sense of how we think about our strategy and growth outlook, as well as what we want to achieve from a financial perspective. Thank you very much. Well, we've heard some fascinating overviews from both Ralph and Tsholo regarding the strategy and, of course, the financial elements that do speak to the support of Ambition 2025. We've come to the exciting part of today's program, where I have them both with me here this morning. Great to see you both, thanks for making time. Thank you, Gugu. Much appreciated. Fantastic. We will be delving into a question and answer session. This is where you can also engage. Please do be sure to send through your questions, and I'll direct them to both Ralph and Tsholo to really ensure that we give you a great sense of comfort and understanding and clarity as to where we are with Ambition 2025. I'm quite excited because there's a lot to flesh out today, so we'll certainly deep dive into some of those elements. I think, Ralph, let's start off with you. You have given us a great overview of Ambition 2025- You've positioned us uniquely to really highlight how it will give MTN a differentiator and competitive edge in driving new opportunities across the continent. Elaborate a little bit further on this and just explain how it is that this does create that competitive advantage for MTN Group. Yeah, Gugu, we're very excited about Ambition 2025 and, as I provided in the overview, we think we have a very unique investment case from business that is largely a telco business today. We're still 90% service revenue coming out of connectivity, so we mustn't forget the core. The way we view MTN and the markets that we're in, is that we're in a unique position where we have a growth story. Most telco-centered companies are not necessarily growth stories. If you rise above the detail, I think there are really four areas that are particularly unique about MTN. The first is growth. I've mentioned that. We still have voice growth in our markets. We're bringing in new subscribers every day, literally new subscribers, both to voice and to the internet. There's still a massive growth story across our markets. I think my colleague, Jens, in particular, will unpack some of that. The second point we're saying about the MTN investment case is really around faster deleveraging our balance sheet. We've been working on our balance sheet, we really think now that with some near-term monetization opportunities, that balance sheet can be delevered much faster. gives the business a much bigger financial flexibility to pursue opportunities for growth, as well as to drive shareholder returns. The third component is really around the value unlock, we speak particularly around FinTech and fiber, because I don't want to take the thunder from Serigne and Fred Scheppens a little bit later. I think in our infrastructure and platforms, massive opportunity to unlock value. The fourth area is really around sustainability. We've pushed the sustainability angle much harder under Ambition 2025. ESG is there, localization is there. Finally, just making sure that we appear in the markets, as a agent of socioeconomic change, which is part of the shared value. We think that there isn't a company with those set of attributes. Broad aspects which really do speak not only to the growth of the organization, but also making an impact, as you say, in the communities that you serve. You do touch on growth, though, Ralph. Maybe, Tsholofelo, you can also share some perspective here as there is a key question that asks about the CapEx envelope that you've established to drive out these growth ambitions. Surely, it might seem as though you'll have to allocate a lot more CapEx to ensure that you're able to reach these growth targets. Yeah. Thanks, Gugu. I think from a CapEx perspective, we really are maintaining the CapEx envelope within the region of ZAR 28 billion-ZAR 30 billion, which is really the guidance that we've given to the market. We think that we will be able to sustain that certainly through some of the capital productivity improvement initiatives that we have been looking at. Certainly that as we continue with growth into the future to support Ambition 2025, we're quite comfortable that some of the initiatives that we put in place will help us to maintain that CapEx envelope. Yeah. Another interesting question that has come through from some of our audience members, of course, speaking to members of the investment community, it's around the dividend. We did hear in your most recent financial results, the changes that will be implemented to the dividend policy, which has been suspended for the moment. We do understand that there are some opportunities that might unlock value for the business. This, I guess, has offered some optimism that there might be a sooner announcement regarding the change to the dividend policy. Is there any guidance around this? I think the important thing to mention is that the dividend forms part of our capital allocation framework, which we really apply in a disciplined approach. As I indicated earlier, in support of Ambition 2025, we really have to continue with growth, particularly investing in network infrastructure as well as building platforms. Secondly, as we indicated, we want to continue with accelerating the deleveraging of the balance sheet. Thirdly, we have communicated to the market that we do anticipate paying an ordinary dividend of about ZAR 0.0260 per share by the end of the financial year. We do look at selective M&A activities in line with our Pan-Africa focus. Yes, if the board feels that we have sufficient surplus cash, we will consider additional dividends, special dividend, or even share buybacks to our shareholders. All of that will be communicated, I'm assuming, timely. That will be communicated timeously. Certainly even the dividend policy, we have indicated that we will look at a review of the medium-term policy by the end of the year. Just to build on to Tsuluge there, we've been super clear to investors. Yes, there are some near-term opportunities which are very positive. We're dealing with COVID and kind of its effect. We will clearly communicate a new dividend policy with full-year results for 2021 when we announce them in March 2022. Okay. Clarity on that, we will announce in March 2022. There is an interesting question that has come through, you mentioned some corporate activity that's likely going to take place in the short to medium-term. This question specifically, Ralph, does allude to the IHS and SA Towers. Sounds like a near-term opportunity to monetize. Please remind us of the strategic logic, especially regarding towers. The strategic logic behind this particular transaction and how it does happen to unlock value for MTN Group. Yeah. If we start actually with the SA Towers question. It now appears in our ARP because it has a monetization opportunity. Actually, the logic of how we get that, I think, needs to be laid out super clearly. We have about 68,000 towers across the 21 markets. The majority of them are already in tower co-constructs, either with IHS, ATC, Helios, and other big tower operators. When we looked at the efficiencies we're broadly getting out of the tower constructs, we looked at South Africa and said, well, South Africa actually is the last opportunity for us to be able to kind of strategically tidy up around our tower co-ownership. That's the last opportunity in the Group. The Nigerian towers are in IHS, Cameroon is in IHS, and so forth. It was more about the strategic clarity of saying tower companies are better owners and managers of tower assets. We have about 12,800 towers in South Africa. About half of those, we're looking for a sale and leaseback, and we believe tower companies are better positioned to do that. The strategy is about focus. However, when we do a sale and leaseback, what would be important is that we want an opco-friendly deal that gives us sustained good economics over the next 10 year plus. The cash that comes out is a derivative of the strategy as well as an opco-friendly deal. I know investors from time to time will look at the deal we have in Nigeria, which has dollar indexation. In South Africa, we're not going to have that, to be super clear. That's the logic on SA Towers, and we are well progressed with that, and we think by end of quarter three, we will have made a decision on the sale and leaseback. We're very well advanced now. Four big tower companies have been shortlisted out of 29 submissions. We think that one's moving quite nicely. Coming to IHS. IHS, we have a 29% shareholding, fair valued about ZAR 27 billion, and we've made announcements pretty much now for the last two years that IHS is well-positioned to list. They've been speaking about listing on the New York Stock Exchange, and we're very well engaged with them. We think in the near term, their prospects to list will be realized. We don't run the company, so we can't exactly speak on their behalf. We're very encouraged with the discussions we're having with them towards listing in the current macroeconomic conditions. Thanks for clearing that out to provide a lot more clarity for members of the market. Speaking about members of the market, I do see that there are active questions that are coming through. We will be sure to address these questions. There are some that might be similar in theme. As such, we will be sure and be mindful of keeping to those themes and addressing your questions. Do keep them coming in. For the moment, another interesting theme and question that has come through, Ralph, a lot of excitement being expressed around Fintech specifically. The question asked that you explained that the structural separation of the Fintech and fiber assets are key parts to the strategy. Perhaps if you can elaborate more on the logic behind this and how this, again, will also happen to unlock key value for the business, even providing a little bit more detail in terms of the timelines that you had shared with us earlier. Again, not wanting to take the thunder out of Serigne's presentation and Fred, but let's just think about them as separate points. On the Fintech side, I think we start off with a strategy that says today we have 47 million mobile money subscribers. We have ambitions to get to 100 million within the next five years. We're already a big business. What we're observing is that these businesses have their own unique financial operational risk profiles to a traditional telco. We're getting big and quite significant. 8% of service revenue is Fintech. We say it'll be 20% by 2025. The business is a really big business. We're saying we need these businesses strategic to be very focused. They have interdependencies for sure, where we're leveraging the assets and capabilities of the traditional telco business. That's providing an ability to accelerate and grow the Fintech business. We're saying we need to apply focus and resource to Fintech. In some aspects, actually, regulators are asking for the structural separation as well in some markets. I think you can well imagine that in years to come, across the fintech space, there will be an ask for structural separation for regulatory reasons. We're anticipating that in part. That's the first thing, the focus, the anticipation of regulatory developments. The third is that, we really think that there's a store of value that is currently underappreciated there. Part of the structural separation, we want to be able to show the financial profile of these businesses so that investors can themselves be able to say what value do they put into these businesses. What we've also said is that we don't have all the skills to run these fintech businesses. I come from financial services. That's where I originally come from. I actually see quite clearly that what we should be doing is thinking about partnerships. Partners can bring us both skills and probably a little bit of capital. When we say that we'll structurally separate, and bring in capital to accelerate, we still want to maintain majority control of these businesses. I know investors are asking questions, are you going to list or not, and when? What we've said clearly is that we'll complete the structural separation by end of quarter one, 2022. We are looking at all options that will set us up for the focus, positioning for regulatory developments, and then the revealing of the value. That is actually the last item. Whether listing does it or not, that is a decision we still need to make. We don't want to list prematurely or too early, and I'm sure that's something that people will think about. The actual shape of value crystallization is something we're still working. Again, it's clearly communicated by the time we have completed the structural separation, which we said quarter one 2022 for fintech. If I go to fiber has got different motivators. I think the real issue that we're seeing, particularly around fiber, is that we think that the right model is an open access model. Not just our own self-provisioning, but as we build out our fiber and data center footprint, we think that the future is one where it's shared infrastructure and an open access model. I want to leave it to Fred and Jens to talk more about that, but that one will take a bit more time. We need to acquire licenses. We build fiber across markets, we've said that it's probably going to take us up to two years, depending on how quickly we get some of these licenses. Exciting opportunities all the same, Gugu. Very exciting, and you are quite right. Talking about the backbone, essentially, that provides those opportunities through FibreCo, which we will get into with several executives later. There are a few questions I would like us to pick up on, and this up increase or rather additional question that does come through from Ronald Sim. He asks, "How do you think about reinvesting profits more aggressively to accelerate growth in other areas like Fintech or digital? Especially in the context of large cash holdings in markets like Nigeria, where it might make more sense to capture the opportunity as mentioned." Perhaps you can both elaborate more clearly on this, reinvestment of capital into digital and perhaps Fintech, and specifically in Nigeria, where we know there has also been some challenges in that market regarding upstreaming. Tsholo, perhaps you can provide more clarity here. Yeah. Maybe as a start and then Ralph will probably add. I think certainly as I mentioned earlier, when we look at our investments, we look at it from the region of ZAR 28 billion to ZAR 30 billion per annum over the term. Certainly what we are looking at is that from a platform perspective, which is really also incorporating Fintech and digital services, we probably think that anything between 12%-16% over the term is what would obviously be able to support our ambitions. Of course, the other, as I indicated earlier, connectivity solutions, the fiber backhaul is also important in that regard. I think how we look at it is obviously prioritizing in areas that give us growth. CapEx intensity is very important to us. As we look at those growth, we also look at how are they growing, can we actually invest more? And we do see that growth in Nigeria. Certainly, there has been challenges in terms of hard currency- We are seeing significant growth there. And we are quite- How are you navigating those? comfortable with the Look, I think from a leadership perspective, there's been good engagements happening in country, as well as working with Group from a treasury perspective. We're quite comfortable with some of the progress that we are making in that regard, and we're confident that we'll be able to unlock it in the nearer term. Maybe just to top and tail on that question from Ronald. Thanks for that question. As Tsholo's mentioned, our primary capital allocation point is to drive organic growth. That's organic growth in the core connectivity business, as well as fintech and digital services. We are pointing out that- In the fintech space, we will seek partners who bring skill and also capital to just accelerate the growth even further. To run for sure, we are very focused on that. That is priority number 1 from a capital allocation framework. As Tsholo said, on the Nigerian opportunity, we remain very focused. Karl, our new CEO in Nigeria, very focused on continued engagements with the authorities around the PSB license. We still remain highly convicted. I know that there's sometimes a bit of skepticism that it's taken long, but the PSB license is, for us, remains critical. It's top of Karl's agenda. It's in his STIs for this year. We'll see whether he succeeds in meeting that. The Nigeria opportunity is super important. When we say service revenue will develop from 8% fintech to 20%, what's part of the critical delivery there is ensuring that we unlock that opportunity in the next couple of years. Nigeria will be super important there. Playing a very key and strategic role then. We mentioned Nigeria, but of course, there are other opportunities that you have tried to pursue across the continent, and this ties into a question that we have from Muran. He asks, "Can we discuss your thoughts on the Ethiopian license? The question builds up to add, "How does this fit with your value-based capital allocation framework? And how are you thinking about the potential second rounding of the licensing participation? How much further can we raise your bid?" Quite a load of question on Ethiopia there, Muran. A very good question from a very important shareholder of ours. Look, we went into the licensing process with a very strategic financial and risk lens to the opportunity. I think one has to accept that in new opportunities, you have to have all three lenses driving you. Maybe to give the shareholders a bit more granularity and color on this opportunity and what fashioned and shaped our bid. The opportunity is significant. Let's not kid ourselves. 100 million plus, 140 million plus people, where there is relatively low connectivity and there's no competition. That strategic part was super clear. When we started looking at the financial framework, there were two if not three things that formed our decision. The one was the lack of mobile money. We really wanted to have seen mobile money in the license regime, we adjusted our bid for the lack of mobile money. The second was actually the tower construct. The tower construct was tower companies are not allowed into Ethiopia. We had asked that they be allowed. We speak about tower companies being more efficient at rolling out networks and securing access to build fiber, et cetera. Tower companies were not allowed. You had to do self-build, or you need a rental agreement with Ethio Telecom, and the rental agreement would've been a USD-based rental agreement while you're earning birr. That created quite a bit of a dynamic. We adjust, from a capital allocation framework, what we can afford. Obviously, the risks upstreaming, the ability and difficulty of getting securing network through the ports and into the country. It's a very mountainous country, and we had figured you need 7,000 sites plus. We put in our bid there. We're disappointed with the outcome, but we're very comfortable that we applied our capital allocation framework. As a team, we sat down and said, "Well, look, we didn't get it, but we still feel that we are living to our own capital allocation framework. Plans to apply in the second round, though? In the second round, if there is mobile money, we will re-bid again. If the license conditions in the second round remain the same, there's no reason to bid any higher. We are not about flag planting, trying to conquer the continent by putting flags. We need the strategy, the financial and risk profile to make sense. As desirous as we are, we will still look at the opportunity. Is mobile money in? What's happening with tower company? Then we'll apply our minds to that. For us, it'll really be important to see mobile money in that opportunity to put forward a bid. If it's not there, I think probably, we wouldn't even bid. It's quite refreshing that you say that, perhaps to build up on the theme that you mentioned, not necessarily planting flags, but really ensuring that the opportunity does make sense. Right. Given the change in the strategy to focus primarily on the African Continent does that mean that MTN wants to be in every country, or how are you driving those growth ambitions then? Just for clarity for the audience. We're not trying to be in every country. If it makes financial and strategic and risk sense to be, we will. We're very disciplined around strategy and capital allocation. I think probably people will say it's nauseating. We talk about capital allocation. Tsholo will keep me very disciplined here. Our focus also on just the African continent is also about reducing risk. I think we've seen just the change in the geopolitical environment, that multinationals that are spread across many markets or many regions, creates a whole host of complexities, regulatory in the main. also geopolitically. When we say we are focusing on Africa, yes, we would like to be in more markets, every market opportunity must make sense. We'll apply the same approach and discipline as we did in looking at Ethiopia, at other markets, if it doesn't pass, it doesn't pass. I think the important thing from an MTN executive management perspective, Gugu, is that we still see tremendous value in the current portfolio. The investment case we've put has got no new countries in it. It's the countries we currently are, the 17 African countries, the exit of the Middle East, enormous amount of work for us to do for the next five years. Even if we get to no new country in the next five years, we won't see that as a shame. Okay. Makes a lot more sense. I think giving us some guidance there to fully understand and comprehend the moves of MTN across the continent. We do have another question that's come through from Jaynesh of Mazi Asset Management, all about numbers here regarding our return ROE targets. The question asks, "The ROE target of over 20% was introduced at the CMD in 2019. It looks like this target has been maintained with another medium-term guidance. I hope this means you'll hit the over 20% target in 2022." Tsholo? Yeah. We've given guidance, and our guidance is a medium-term guidance, and we've actually said our aspiration is to actually exceed the 20%, and we believe that looking at how we have progressed in line to be able to achieve that. Yeah. Quite confident in providing him with no concerns or fears there. We'll build up on another question that's also been asked, and this one centers around ESG- which has come through as a key part of the strategy. It asks, "Please tell us about the priorities that you have around ESG. According to the integrated report, the CEO has a 10% weight on ESG. How is this 10% measured? Yeah. Maybe just to start with the first part of your question, Gugu, ESG is a super important part of our strategy- under the shared value banner. Nompilo will talk a little bit more about that. I need to give her the space to talk. In essence, we are looking at three really big pillars. Eco responsibility, and in there it's about our greenhouse gas emissions and how we bring them down to net zero by 2040. We've got a target of 47 reduction by 2030, Project Zero is under the guise of Nompilo, Charles will speak about that later. Also looking at energy efficiency. It reduces the cost. We spoke earlier about our ZAR 5 billion cost savings. Quite a lot of that is in network and in power. We really are pursuing those things. The next pillar is really around what we call sustainable societies. We start with what our core business is. Our core business is communications. The cost to communicate is coming down and will continue to come down as we get spectrum, as we build out our customer base. Driving financial inclusion is super important, and diversity. You're seeing our diversity is improving. We're not where we need to be on the gender side. Tulu will always remind me of that. Finally, governance. These are things that I think globally are shifting and we are shifting with the global movements. On the STI, on the short-term incentive, I'm not the only person with that. I think Felleng has also got that as a scorecard. Tulu will have it next year. In our discussions with the board end of last year, one of the things we discussed was, I think ESG needs to be leader led. If people don't see the leader, the CEO not taking ESG as important, obviously people will say, "Well, it's not important. We've got to tick the box." We're trying to make a clear message back into the business and into our broader communities that ESG is a CEO matter. As such, we're arranging ourselves. Next year, I think you'll see more executives actually at the MTN Group have ESG. My 10%, to your question, is 5% of the 10 is really around how we set up Project Zero and actually drive it systemically across all the markets. Charles is the key architect of that as the head of our networks. There's a 2.5% that's also about driving diversity and inclusion across our markets. Gender is a very important part, but also just diversity in a more general sense. You'll see our leadership is a very diverse leadership- also including nationalities. Finally, it's reputation. How our stakeholders are seeing us. We do a dipstick annually around the reputation. We have a reputation index measure. We want to be above 75%. That's how I measured for 10% of STI next year. I'm sure in the AGM or roadshow, people will ask my chairman and lead, and depending on what's going on, did Ralph achieve his objectives? We'll see next year. We'll certainly hold you to it. Look forward to those findings and results as we use that as a key measure. You're quite right. ESG, quite a key and important focus. There will be two executives, Nompilo and Charles specifically, who will be giving us some insight on that. If there are any ESG related questions, we are happy to take them slightly later in the day. We continue with the numbers, Tulu. There's a follow-up question that's also been shared here. You talked about FCF generation as a critical part of the financial framework. You are raising working capital management as an opportunity for the acceleration of FCF. Can you add more color to this and a little bit more detail for investors to understand here? Absolutely. I think firstly, as a start, working capital efficiencies are important for free cash flow generation. They provide us more cash to be able to do what we need to do as a business. I think we spent the last couple of years really getting that in order, just making sure that we're as efficient as possible from an inventory management perspective to supply chain as well as credit collection. I think what we see, we have achieved actually about ZAR 2 billion already. We do, based on the assessment that we've done, believe that there's more opportunities, particularly within supply chain financing solutions, as well as device receivable solutions, which I spoke about in my presentation. That is actually important in us in even accelerating the stabilizing the balance sheet and deleveraging. Very important component of that as we obviously look to more cash in addition to the ARP program that we have. Yeah. Fantastic. Another question. This time it does seem as though Fintech is where all the excitement is at. Fintech has targeted more than 20% of revenues by the year 2025. What is assumed for Nigeria? Do you assume that they will get the PSB license? I guess twofold question here on this part. Yeah. A key part of the 20% is the PSB license there. Now, if you were to take out the PSB license and you put a linear as opposed to any exponential growth of our existing markets, you're well on the other side of 15%. Okay? Well on the other side. I won't say exactly how much. Obviously, we do our business planning. A 20% clearly means the PSB license or a similar license regime. Fintech licenses are always evolving. In the current world of what we understand is in Nigeria, PSB will be preferable. We will seek an alternative license regime if one comes available in the next couple of years if we don't get the PSB. To be clear, PSB is needed to get to the 20%. If we don't have the PSB, we are well the other side of 15% anyway in our current markets. Another question, still focused on the fintech opportunity, and this one's come through from Ray J from Excelsior Capital. The question here asks, "Regarding the fintech opportunity, would you look to bring on one partner at the topco level, or will you look to bring different partners in at a country level? Yeah. Great question, Ray J. Just not to take some of the thunder from Serigne's presentation, we're looking to bring the partners at the topco. The way we think about the topco is that the topco is going to have the brand, IP, tech platforms, bring the partnerships. If you think about it, Ray J, in the context of, let's say, Mastercard wanting to work with us to develop a virtual card, so that our customers can have a broader merchant ecosystem because they can take their MoMo balances and convert them to dollars in a virtual. Mastercard will not want to have a discussion with Ghana, Uganda, Rwanda. They want to come once to the group. The partners will not be in the underlying, if there are kind of localization ownership issues, let's say, in Ghana, the real partners we're talking about are the topco. Okay. They need to come into the topco, because that's where we're creating the value when we go to the opcos to say, "Listen, we take care of" Let's say, I'm using Mastercard as an example, not to give people any insight whether they will come in or not. They would prefer to deal with the topco, which we've now created. That topco company is now created, and we're busy arranging ourselves. That's where the partnerships will sit, not in the underlying. It becomes too complex and messy. We have it at the topco, and we envision that we'll have a couple, not just one. Important, Ray J, we said we want to keep the majority of the economics because this business is still quite tightly linked to the core GSM business. Some narratives are popping out in the media that says we'll completely spin out. That's not true. Aha. We're saying structurally separate, bring in some partners. We'll maintain majority control. Whether we list or not is something we'll discuss later. It is important that for some of these partners to share in some of the economics in the business beyond just providing the services and skills. Back to Ray J's question, it's at the topco level. Mm-hmm. At the topco level. We will have an opportunity to delve deeper into- Yeah that during our fintech segment with Serigne. I do believe that we've come to the end of this particular segment where we've engaged in really peeling back at the layers of the Ambition 2025 strategy from both the Group CEO and Group CFO, giving us more details here. However, we look forward to hearing more about this from many members of your executive committee- Thank you Really getting further clarity in terms of where the capital will be allocated to, and of course, how it does speak to the strategy going forward. Thank you so much to you both. Thank you. We are quite excited and invigorated to walk this journey ahead. Thanks so much for your time. Absolutely. Thank you. Thanks, Gugu. Indeed. Well, for the moment though, let's take a quick look at an incredible company called Zipline. Now, this company is radically changing the way medical supplies reach remote areas through the use of drone technology delivery services. Zipline relies on MTN Rwanda's impressive connectivity infrastructure. Let's take a look. In most places in the world, when people think about going to hospitals or getting medical supplies there, it's not a big problem. You can just get in a car. In Rwanda, it's a little bit different. With using a drone, you don't have to worry about whether the roads are slippery today, whether it's nighttime or daytime. Zipline is a drone delivery service. We deliver blood, medical products, vaccines to hospitals in remote areas in Rwanda and in Ghana. We ask the hospitals, "How long does it take to get supplies?" They were like, "Okay, six hours, sometimes a day when it has been raining." We were like, "Okay, yes, we are going to beat that." When Zipline started developing this technology, Rwanda was one of the first countries that were interested. Many other countries were interested, but Rwanda was willing to take the risk. Rwanda is embracing innovation and technology. It's one of the competitive advantages. Zipline Muhanga is the busiest airport in Rwanda. It's busier than Kigali International Airport. On a day-to-day basis, we can do around 30 deliveries here, and then another 20 from our second distribution center in the eastern part of Rwanda. We are currently working with 44 hospitals, but we are working to also onboard more health facilities. Our goal is to be able to service all 500 health facilities in Rwanda using our two distribution centers. Our capacity is estimated to be around 150 deliveries a day. Zipline works to give access to vital medical supplies to patients in rural areas. Well, is that not impressive? You can certainly keep watching as we will be profiling many more of these innovations and how it is that MTN supports these kinds of entrepreneurship initiatives across the continent through its infrastructure. Well, this does conclude the opening session for this morning's Capital Markets Day, we do want you to come back at 10:20 A.M., we will commence with the second half of today's program. For the moment, stretch your legs, get some refreshments, we'll be back promptly to commence with the second part of our program at 10:20 A.M.. They've got no shame. Some people. Don't waste my time. I Congo money. I Congo shelete. I Congo money. I Congo shelete. Oh. I'm a poor man. Who needs some money. I'm a poor man. Who needs a girl. Ladies and gentlemen, we will be resuming our second session in one minute's time. [Foreign language] I Congo money. [Foreign language] I Congo shelete. Oh. The digital revolution is a powerful agent for transforming society for the better. As a Pan-African operator focused on connectivity and tech platforms business, MTN is leading digital solutions for Africa's progress. We have an established and leading position across our footprint, and the countries in which we operate have a fast-growing, youthful population. Our markets are characterized by low data, fintech, and digital adoption, and represent a significant opportunity to enable access to the digital world, changing lives and bridging inequality. As the adoption of digital technologies increases at an unprecedented pace, extensive infrastructure is required to meet demand. We have invested in our networks to build Africa's largest fixed and mobile network, one that is second to none. We have extended our wholesale and infrastructure services to other players, providing secure access to highways of telecommunication across Africa. We continue to enable digital and financial inclusion in alignment with the agendas of the nation-states we work alongside. There are far too many Africans who are not yet connected to the internet, and we want to play our part in supporting digital and financial inclusion. We truly believe that we can be a successful force for good by continuing to support Africa's progress. Welcome back to MTN Capital Markets Day. We're starting our second session now, when in this particular session, we're taking an in-depth look at MTN's industry-leading connectivity operations and how the business stream feeds into the overall Ambition 2025 strategy. We're crossing over to London now to hear from MTN Group Chief Operating Officer, Jens Schulte-Bockum. Jens will be talking us through MTN's Doubling of Data and Owning the Home strategies. Thanks, Gugu. Great to be here. I'm Jens Schulte-Bockum. I'm the Group Chief Operating Officer at MTN, I'd like to talk to you about what we mean by Doubling of Data. Data will be the single largest structural growth opportunity in the next five years and the biggest source of revenue for MTN by 2025. Our data-driven strategy across the operating companies, coupled with network modernization, has enabled strong new subscriber growth and higher data usage. In 2020, we managed to reach 100 million milestone of active data subscribers. We have a dual data strategy, which acknowledges the differences between our value and volume segments in order to double our active data subscribers to 200 million and to reach 50% data revenue contribution by 2025. Our data initiatives are enabled through the CHASE industry-leading framework, which includes ensuring MTN has sufficient and affordable coverage, especially in rural areas, providing affordable data-enabled handsets, improving data affordability, creating service bundling to drive data adoption, and enhancing education and the ease with which data can be accessed. For MTN, data is exhibiting rather favorable economics, driving margin expansion and return on equity. In addition to robust active data subscriber growth, MTN has consistently been able to compensate price declines with usage growth, resulting in ARPU accretion. Since 2018, data revenue had a CAGR of 31%. Data usage per subscriber has an impressive CAGR of 41%, and CapEx intensity has actually declined by 3%. Our markets offer significant opportunities in the medium term. This is a ZAR 375 billion revenue pool across our markets. 520 million people living in sub-Saharan Africa are covered by mobile broadband, but are not yet connected. This opportunity will enable exceptionally strong double-digit revenue growth in the mobile data space. Our 2025 ambition is to double our data customers from our current 150 million active users to 200 million, and to increase our data revenue contribution from 26% of total revenues in 2020 to about 50% in 2025. As mentioned previously, we remain disciplined in executing against our CHASE framework towards data ambitions. Let's look at the CHASE model in more detail. Starting with coverage. Our subscriber growth will continue to be enabled by broadband data coverage expansion, with a focus shifting from 3G in the past to 4G now and 5G in the future. Since 2018, we have accelerated the uptake and managed to add 3G or 4G coverage for a population of about 150 million. Our ambition for 2025 is to reach at least 90% population coverage for high-speed data. In our attempt to further increase access of the more rural population in an innovative and cost-effective manner, we continue with MTN's rapid rural rollout and aim to cover 12 million people through low-cost technologies by deploying a further 5,000 sites in collaboration with carefully selected partners. To further lower the cost to serve in data, we aim to become more competitive by deploying Open RAN with multiple vendors. For handset, the second CHASE component, we are increasing smartphone penetration by enabling low-cost ownership and access to data-enabled devices. MTN has several initiatives to lower the cost of entry-level data-enabled devices, including a wider portfolio of affordable smartphones and device financing. In the last two years, we've added 35 million smartphones onto our data network, and we aim to add a further 95 million by 2025. Our targeted interventions aim to lower price points at market level. Our ambition for 2025 is reaching about 235 million smartphones on our networks in total. Across the continent, our aim in reaching these targets is to lower the cost of ownership, greater use of informal channels, and accelerated adoption of 4G network subscribers. We continue to take down the pricing electric fence and improve data affordability for the masses. This is the third element in CHASE. This slide indicates how we have managed to flatten the data price curve by reducing or eliminating out-of-bundle rates and providing discounted onboarding data. In 16 of our operating companies, we have managed to reach the United Nations affordability benchmark. Looking ahead, we will include profitability benchmarks, pricing interventions, and drive affordability through freemium propositions like our Ayoba proposition or Facebook Flex. By way of careful segment management, MTN aims to maintain data affordability and improve data profitability across operating companies through ongoing regulatory engagement and the implementation of tailored pricing interventions. In element 4, service bundling, we are creating data service offerings that are relevant, simple, and meaningful to different customer need segments. This program drives data adoption and ensures sustained high data usage growth across our data subscriber base. Our levers include launching freemium data propositions, strategic OTT partnerships, configuring artificial intelligence for enhanced and curated data conversations, segmented value propositions such as try before you buy, and offering the right product at the right time, which we call next best activity. In line with our core belief, we are proud of the pioneering work on data and literacy with high conversion rates. Education is the final and most recent element of our integrated CHASE framework. The MTN Data Smart Literacy program was launched in partnership with the GSMA and is designed to improve the basic understanding of mobile internet and the benefits of data. Due to COVID-19 restrictions, MTN had to digitalize and industrialize the program, resulting in an exponential increase in people trained from 3 million in 2019 to 19 million customers in 2020. We continue to scale the initiative in all operating companies, revamp content, and aim at training another 100 million people in the next five years. There are a number of challenges in the data space, ranging from spectrum, data tariffs, to regulatory barriers, to new customer onboarding. MTN has a very robust and consolidated approach to dealing with these matters from a group and OpCo level, including proactive preparation and engagement in anticipation of spectrum auctions and active lobbying for future-proof 5G spectrum. Focused consultation with regulatory bodies at OpCo level. Maintaining a sufficient mix of initiatives aimed at increasing new customer gross additions, ongoing MTN data smart training via digital channels to complement face-to-face training. To sum up, as we look at Ambition 2025, MTN is well-placed to reach 200 million active data subscribers with growing data to contribute about 50% to MTN's group total revenue. We will accelerate our signature CHASE framework to support the transition from voice to data and to close the data usage gap. Let me now move to an incremental opportunity that we've identified more recently: Own the Home. Own the Home is a dedicated program to accelerate MTN penetration in the home segment, a new and incremental data growth opportunity. This will be achieved through dedicated home resources, a flexible bearer strategy across mobile broadband, 5G fixed wireless access, AirFibre, which I will explain in a minute, and fixed fiber. Our B2C-focused propositions, spanning e-learning and entertainment, will complement the offering. MTN will accelerate data connectivity across the markets, also capturing the growing customer data demand in the home environment. We see a growing customer data demand in the home environment accelerated by COVID-19 as more people are working from home and more are using video on a regular basis. At market level, this is a ZAR 120 billion revenue opportunity with almost 40 million expected subscribers in our footprint. MTN will accelerate data connectivity across the markets and thereby capture the growing customer data demand in the home environment. The segment is expected to grow dynamically until 2025, with fixed wireless access and mobile broadband being the dominant bearers. MTN aspires to present a flexible and competitive offer portfolio addressing different segment needs, including AirFibre, based on Tarana Wireless' innovative technology, which operates in unlicensed spectrum. Our portfolio will include a range of segmented pricing and usage bundles, reflecting both different customer segment needs and different technology production cost points. MTN is gearing up to address segment-specific challenges like spectrum, digital know your customer barriers, and entrenched niche competitors. Given the limited geographic and sociodemographic potential for access fiber networks, we will work with national governments to free up 5G fixed wireless access spectrum as soon as possible to take broadband home access to the broader market. Our ambition for 2025 is to achieve 10 million broadband subscribers, generating about ZAR 18 billion in revenues and rolling out the home framework across the group's footprint. This will mainly be driven by larger markets such as South Africa and Nigeria. Well, quite a fantastic presentation that we heard there in terms of understanding the backbone and the infrastructure that's required to make sure that these kind of engagements are actually possible. Well, Jens, we look forward to having you in the Q&A session because you stay with us to discuss FibreCo in just a moment, and more details behind that. Jens will also be joined by the CEO of MTN GlobalConnect, Frederik Scheppens, who joins us to give us more details and insight into that. Jens and Fred will also be taking and talking about MTN's plans to dominate as the leading FibreCo in Africa. Yeah, thanks, Gugu. I'm excited to talk about the GlobalConnect story. GlobalConnect was established only in 2018. It combines two of MTN's international businesses under one roof. International wholesale mobility and international fixed connectivity. Just over the last year, we grew revenues and EBITDA by 48% to $391 million and $46 million US dollars respectively. The wholesale mobility includes signaling, voice, messaging in our Yellow Connect hubs, as well as roaming and value-added services such as cloud numbering, detection and authentication. The fixed connectivity business offers access to our 15 submarine cables and commercializes our proprietary 85,000-kilometer fiber network across our African footprint. Growth in the wholesale mobility business will be achieved through platforms. We call them the Yellow Connect hubs. These hubs are based on the latest technologies enabling retail and wholesale mobile services at large scale. The Yellow Connect Voice hub offers voice interconnection and signaling service. The Yellow Connect Messaging hub is a core and central label for companies, public organization, whoever wants to interact in a secure and effective way with our mobile customers. The objective of the Yellow Connect Roaming hub is to increase and improve the roaming service portfolio through central operations, increasing usage for the retail customers, as well as improving customer satisfaction with quality performance. Despite the tough market conditions in the last year during COVID, we increased our revenues by 58%, from $193 million to $306 million US dollars, driven to some extent by further consolidation of revenues at the level of GlobalConnect. Voice continues to be challenged by free OTT services, but we are gaining good tractions in the growing market for other services, given our significant African footprint in areas as bulk SMS and two-factor authentication. We started with an established core of SMS, voice, and signaling. We have since expanded our portfolio to include value-added services to build an end-to-end digital ecosystem. Ultimately, we will elevate our performance through MTN and third-party partnerships. Our Yellow Connect hubs support a lot of business and operational activities for internal use at MTN and for third parties. By addressing a very diversified customer portfolio, wholesale mobility is a market with a large and lasting potential. On that basis, we expect a further almost 50% increase in revenue to reach about ZAR 450 million by 2025. The mobility business delivers consistently gross margins in the range of 5%-10% that accrue at the level of GlobalConnect. If we move over to the infrastructure playing field, we are addressing at MTN the opportunities in 5 different infrastructure asset classes. GlobalConnect has been tasked to commercialize subsea and terrestrial long-distance fiber assets, the first two of those asset classes. For data centers and FTTX assets, we are reviewing our options right now. Passive radio assets, the fifth asset class, has largely already been disposed to specialized tower companies with a sales process of our South African tower portfolio in execution right now. Along with international fixed connectivity, GlobalConnect is now going to manage national terrestrial fiber as well. This will improve operational efficiencies while unlocking new opportunities. I'm pleased to hand over to Fred, who is the head and CEO of GlobalConnect. Fred will unpack how we are going to deliver on our priorities on the fixed opportunity. Thanks, Jens. It's been a journey so far. Today we have over 15 submarine cables. GlobalConnect is also one of the major partners into 2Africa, one of the largest subsea projects in the world, connecting 23 countries in Africa, the Middle East, and Europe. The system is expected to go live in 2023 and 2024 on the east and the west coast, delivering more than the total combined capacity of all subsea cables serving Africa today. With a design capacity of up to 180 terabytes per second on key parts of the system. The combination of subsea cables with 85,000 kilometers of proprietary access is already positioning GlobalConnect as the leading player for fixed connectivity in Africa. A number of new initiatives have been achieved recently, such as new cross-border links in Ghana, in Côte d'Ivoire, and in Uganda. The connectivity opportunity we are looking at is estimated at over $1 billion US, the market is expected to grow threefold. Our Ambition 2025 is to offer a fiber footprint over 135,000 kilometers and strengthening our number 1 position as African fiber subsea and terrestrial fixed connectivity player, delivering over $300 million of revenue. Growth will be driven by explosive data demand with a sustainable runway for growth given current low fixed broadband penetration and limited data center capabilities. Limited fiber deployments, where the market typically can only support limited players, as well as subscale data centers assets coverage. More data centers will be built on the continent, increasing the value of a large fiber network, which needs to be resilient at the edge and support content delivery networks. We are on track to create value from existing capacity by building a Pan-African fiber railroad delivered as an open access service to all the customers. Initially, MTN will focus on seven countries, which includes Ghana, Ivory Coast, Kenya, Nigeria, South Africa, Uganda and Zambia. We are also developing fiber routes to connect East to West Africa to serve the landlocked countries, offer better resilience, and of course, we need to lower latency to keep everything on the continent. We expect a total capital investment of about $500 million over the next five years to deliver our ambition. We have a variety of competitors ranging from regional players, fiber network operators to tower companies. We do think we are well-positioned as we have the largest proprietary fiber network of over 85,000 kilometers. We have a biggest presence in most subsea cables and the largest anchor tenants, our open access model will offer MTN OpCos the ability to further develop mobile and fixed businesses. We are also super well-positioned for partnerships locally as well as internationally. We think we are the best placed to succeed as we have the largest and scale our infrastructure assets. From a regulatory perspective, the FibreCo is based on an open access model, and this will significantly be supportive to the socioeconomic developments in our markets. The FibreCo that we are developing will be neutral and independent. On that basis, we expect favorable regulatory conditions as we move to the open access and an establishment of independent subsidiaries will help us with that. Regarding competition, given our scale, we do think we are well-placed, underpins by a second-to-none technology platforms and our competitive advantages also to establish strong partnership to help us achieve our further scale. MTN plans a structural separation of the FibreCo business. This was explained by our Group CEO, Ralph. In brief, our key objective is to enable an operating model that will drive utilization by customers and partners, comply with regulations, and reveal value. We expect the whole process to be achieved in a two years timeframe. By 2025, we aim to roll out 135,000 kilometers of fiber, generate up to $300 million of revenue, excluding the mobility business, and an EBITDA margin of about 40%. We'll entrench MTN as the number one African fiber player by building subsea scalable capacity and resilience Our ambition is to grow together with all internal and external stakeholders by further expanding fiber railroads in Africa. Thank you. Well, we've come to our Q&A section, where we're joined by both Jens as well as Frederik to help us understand more details around double the data, as well as owning the home and leading FibreCo. As we've heard, these are very key and important aspects to the business to ensure that elements like connectivity, like we are hosting today, are able to take place quite effectively across the continent. A reminder that we are keen to hear your questions, so please do pose them, and we will be sure to share them with our respective speakers. Jens and Frederik, great to have you with us today, and I think we should be thanking you both for the fiber network, the connectivity. Otherwise, a conversation like this essentially wouldn't be happening today. Yeah, that's true. Good to see you, Gugu. Indeed. Thank you so much, Jens. Frederik, we're looking forward to hearing some of your questions. I would like to start off perhaps with you, Jens, as you've built up the narrative regarding doubling data and owning the home. It does seem as though there's a concerted effort to drive data revenue. Whilst we understand this, there's been no mention regarding voice. Does this still feature at all as a key part of the strategy? Well, we're looking into the future today, the focus is on the growth opportunity, which happens to be around data. With 4G and 5G coming, we are very excited. We are not losing the focus on voice in any way. As a matter of fact, I've been asked about how we think about voice for the last four years in numerous investor occasions. Every single time we said, voice, we see continued growth for the next two or three years in our footprint. I'm pleased to say that after four years, I can just reiterate that. We think that there is still growth in voice. We've been growing in 2020. We've grown into early this year. There is resilience in the voice business, and that remains a focus for us for the near future, because that is obviously a significant revenue and profit generator that allows us to invest into the data networks of the future. Very valid point there, we're looking forward to witnessing more of this growth. As you say, it's not that voice is not picking up, but remains resilient in this market. I'd like to build up and go back to data for a moment, where we talk about price elasticity. This has come through as a key question from one of our participants, Godfrey Mwanza of Absa Asset Management, who asks, "Have effective tariffs bottomed out in your view, or do you think there's still room to stimulate even more usage and ARPU from the further lowering of the price curve, specifically related to data pricing?" Jens, your response? Yeah, Gugu, that is an excellent question that Godfrey is posing for us here. We are really zooming into how we manage elasticity and how we manage, ultimately, the data ARPUs. Our focus is much more on data ARPU rather than looking at the price points. What we've seen, and I think in the presentation that came across, is that we've been able to compensate the nominal price declines with data volume growth at a per user basis over the last few years. We expect that to continue, we actually see an extended trajectory of data volume growth. We continue to believe that there will be slight ARPU accretion. We have to bear in mind this is an average figure, so there are more and more new customers coming, of course, into the data environment. These customers are more marginal than the existing customers. Actually, there is very healthy growth for the existing base of data customers when you look at the ARPU, that remains the focus for us. When we talk about doubling data as well as owning the home, this really does speak to spectrum, right? To allow for easier access and these opportunities to grow. A follow-up question to this, as we are keeping with the double-up data theme and owning the home. The question asks if you can provide more information on managing the availability of 4G and 5G spectrum, specifically in the key markets that are anticipated to drive this growth. Jens, if you could share more insight here. You are 100% right. The spectrum is the lifeblood of providing data services. Of course, it's also necessary to keep the economics intact. We are working with regulators and national governments to explain that. The governments of Africa want to provide affordable data to the mass market, we are committed in doing that. It necessitates the provision of high-speed spectrum for 4G and over time, also for 5G. There is an ongoing regulatory engagement. We cannot afford to fall behind on spectrum allocation, we see that as a particular priority, as Godfrey Mwanza will explain later, in the South African market, where we are actually staffed on the spectrum side. In most other markets, our spectrum allocation for 4G is fairly decent, we are starting to exploit that. On that basis, we can grow our production of data. For 5G, there's still a lot of work to be done, particularly for the sweet spot 3.5 gigahertz spectrum and the 700 megahertz spectrum. That's where, in our region, 5G services will be provided in the future, we're working with governments across the footprint to ensure that these spectrum bands will become available in time for rolling out the 5G networks. Thank you for that feedback there, Jens. As we know, to enable these technologies, you also need the infrastructure, perhaps we can talk about FibreCo with yourself now, Fred. A very important element to this is licensing, we are well aware of the ongoing regulatory engagements that MTN continues to have in key markets. Perhaps if you could explain to us as to what you're doing or what conversations are taking place in order to secure the necessary licenses within this particular short timeframe that's been shared. Frederik? Thanks, Gugu, it's great to have this. Based in Dubai here, we're really relentlessly continuing to have a real good vision in trying to enable an open access model, which is really making sure that we've got a value co-creation and ecosystem for all the carriers, local and global digital players. What is super important is that the large fiber network is critical to enable this digital economy. If you're talking about fixed wireless access, 5G, IoT, et cetera, it's also super important to have these bases for education, healthcare, also there's a big risk. When we talk to the local players, the regulators, to the governments, that if you don't have that type of network in place, we're missing an opportunity. Also, we will be making sure that we've got these new digital services available in all the regions across Africa. We view this really as a major motivation to unlock all of these licenses in cooperation with all the local, let's say, players. This model actually is already in place in other regions in the world, boosting also the socioeconomic developments. Of course, this is crucial in the path of the support to get these licenses on board. Very important aspects that you mentioned there, perhaps we can build up on the theme of partnerships that you've highlighted, Frederik. There's a key question that's come through from one of our guests, Ziad Jussab of Nedbank. Ziad has a loaded question regarding FibreCo, I'll share it with you and perhaps we can expand on this, if there are elements that Jens can add, please feel free to do so. The question asks, "Who do you see as the major FibreCo clients over the next five years in an open access model? Will it be MNOs, independent towercos, and data service providers predominantly?" The question adds, "Could you discuss the initial thoughts on how the vendor-neutral FibreCo model will develop in key markets like South Africa, Nigeria, and Sub-Saharan Africa?" Frederik, quite loaded, really build up on your initial thoughts there regarding FibreCo and how you envisage this to roll out over the next five years. It's a great question, really to the point also that today already, we are in a model where we are opening up gradually our network. We've got this fantastic proprietary network of 85,000 kilometers across the continent, which we actually more or less built it for ourselves, for our own mobile subscribers and retail enterprise users. What we are doing now is we are taking a structural separation where we gradually are opening up everything we have in order to sweat better our assets and provide it all to third parties. We're dealing already today, our biggest customers, it's not only our internal customer or anchor customer, which is MTN, we are doing already a tremendous amount of business with other MNOs, with OTTs, with everybody who would like to have access to our network. The team has been structured already in a central way, where we also have a lot of local team in-country, which is super important to have this interface and make sure that we deliver the right services towards our customers. If they're internal or external, we don't make any difference anymore, and this is why we would like to go ahead with this in order to do an even better open access model, which is completely neutral in the very near future. Maybe, Gugu, if I can come in with two builds. This is a super important discussion for us and quite strategic. I think we have two advantages here. One is we are our own anchor customer, so we can continue to expand our network rollout. As Fred has explained, we have an ambition to add about 50,000 kilometers of terrestrial fiber in the next 5 years, with a capital budget of about half a billion US dollars. A lot of that will be financed because we replace rental costs that our operating companies currently incur. There is very good starting economics because we are our own anchor customer. Secondly, if we fast-forward 5 years, we believe that more than half, probably 60%, of the revenue will come from third parties. That is a huge incremental opportunity. While the internal use helps us with the economics initially, the external use will provide the growth trajectory, that of course also over time then de-risks the business, which makes it very attractive from a financial profile perspective. Thanks for that clarity there. I do want to build up on a question and theme that was addressed earlier in terms of the importance of data centers to really drive growth and the future opportunities that exist here. Perhaps, Jens, if you could both, as well as Fred, give us some color and some detail into how you're thinking about this and how the role of data centers will really manage to unlock the kind of value we're looking for here that aligns with Ambition 2025. Jens, if you could start off the response for us, and Fred, feel free to add. Yeah. No doubt that data centers are an integral part of our overall infrastructure asset base. We are, in all fairness, less developed in our thinking on data centers. We started to build Fred's team, GlobalConnect, to monetize the fiber platforms already two or three years ago. On data centers, we're currently exploring our options. We believe that we probably need complementary skills from partners in the data center space to enjoy the growth opportunity. At the same time, there is a tight coupling between data centers and fiber, because data centers are ultimately what generates the demand for the fiber connectivity. These asset classes are highly correlated, and we are working through the strategy on how we can expand our data center footprint and ultimately also monetize that externally over time. Yeah. Perhaps to add also to that, we had already quite some experience in building, of course, carrier landing stations, which is a kind of a data center also in order to land the massive capacity where we are one of the bigger, let's say, anchor tenants in all these consortium. Also with the new cable, which is coming up pretty soon in 2023, 2024, which is called 2Africa, we're going to enable quite a bit of terabytes of incremental capacity. All of that will have to be really well stitched with the solid infrastructure we have, which we will continue to roll out. Also the data center strategy is, of course, utmost important to make that happen. Again, we haven't, let's say, defined our next steps to that, like Jens was saying, we are quite intensely, let's say, looking into that in the coming weeks and months to come then with a clear strategic, let's say, rollout on the data center portfolio. Mm-hmm. Fred, I'd like to stick with you for a moment, just perhaps to build up on the fiber conversation. Earlier on, you did allude to the theme of collaboration. There's a question that actually asks more detail about the kind of collaborative opportunities that you're identifying on the continent. Who are you talking to perhaps? What kind of partners are you looking to work with? Are you able to elaborate if there's any messages of investment that have been conveyed? If so, would you be prepared to cede control of how it is that you participate in this rollout and further strategy of increasing fiber access across the continent? No, that's a great question also, and a very valid one, which I think this audience is very keen to understand. No decision hasn't been taken in any potential investors on the journey we're going. We do think that the FibreCo controls within MTN GlobalConnect, within MTN, which remains as a core basis. We don't really have anything to disclose at this stage on that matter. No breaking news just yet, right? No breaking news just yet. I'd like to go back to the conversation regarding doubling data as well as taking ownership of the home, really. A key question that actually talks about how the pandemic, but specifically on COVID-19, has left a legacy on the increase of data demand. We're well aware that we will see regulators perhaps changing their stance as access to data becomes an ever-increasing and available service. How do you see regulators perhaps adjusting and adapting their view on this? Jens, perhaps you can give us some expectations that might have been discussed with regulators if they are shifting their views on increased access to data and how they might approach the rules of the landscape. Yeah. The COVID-19 pandemic for sure has increased, I think, awareness about the utility of data and the necessity of data, particularly as more and more people, also in Africa, are working from home. In the course of the last year, we've seen effectively a doubling of data demand across the footprint. That has materialized in a quite asymmetric way because those people that are highly reliant on data usage from home, of course, have seen even a higher factor of data volume increase. It is not a surprise, of course, that politicians and regulators are now taking a keen interest in data pricing and affordability. Hence, we remain absolutely committed to bring the affordability level down. As I mentioned earlier, that relies on ample availability of spectrum. We are working with the political stakeholders, of course, also with regulators across Africa to raise that awareness and to make sure that spectrum will become available. From a technology perspective, we have headroom. We are still in Africa in the early stages of 4G, and then we have the full opportunity of 5G, which gives more spectral efficiency, which in economic terms means lower cost per gigabyte. We can produce if we have the spectrum, and we are absolutely committed in doing that. The other thing that we need to solve for is the concentration of home usage. Here, we adopt a very flexible approach using different technologies. Wireless technologies, but we're also looking at fiber to the home in the more densely populated areas where we have high pockets of demands. We are starting to see the economics working out in some parts of Africa. South Africa is perhaps a bit ahead of the curve here, other markets are picking up very fast. High income pockets of the big cities We'll see fiber deployments over time. That's an area we're also considering our options in. Are we going to invest in fiber? We haven't really concluded on fiber to the home in a massive way, but it's something we are very actively monitoring. We are certainly not short of opportunities. The commitment is there to support the data growth for the next few years. As I said, I can only restate it again and again, this remains this super exciting near and medium-term growth opportunity for MTN, leading to probably 50% of the revenue base in 2025. We're looking forward to that, Jens, are glad that you've been able to provide some more color in that regard. We do have a follow-up question, which is straightforward from one of our investors, John Kim from UBS. He asks, "What do you see as the biggest challenges in achieving your data targets?" Jens? John, thanks for that question. I think the challenges are very much embedded in the CHASE framework. It is, can we extend coverage in a meaningful way? The handset side devices are certainly a concern right now. We've seen the chipset shortages also impacting pricing for devices more recently. Even though we continue to enjoy growth of smartphone devices on our networks, to some extent to our surprise. For sure, to get to the lower income levels in many of our markets, we need super affordable devices that are 4G capable, probably at a price point of $20 to $30, and we are not quite there yet. The device barrier is something we need to work on. The knowledge barrier when it comes to education, what can the internet do for people, is something we are very, very passionate about. I mentioned the work that we're doing with the GSMA. I think it's genuinely pioneering work where we are reaching millions of people to expose them to what the internet can do. Education, healthcare, agri business support, and so forth. Very, very exciting story there. Last, not least, I have to come back to the question of spectrum. To produce coverage and to produce volume of data, we will need more spectrum. That is the lifeblood of the data story. I think for the very foreseeable future, as I mentioned on 4G, we are in a decent shape except perhaps for South Africa in all fairness. We are battling through the ICASA and ITA discussion, Godfrey will explore that further. For 5G, there's a lot of work that needs to be done. Africa must not be late on 5G. That's really also an appeal to the governments and the regulators to free up that spectrum as quickly as possible to allow us to continue to roll out data and improve the development of the continent. Very important elements you highlight there to enable ongoing development on the continent and allow us to leapfrog certain stages of development. Going back now to the FibreCo initiatives, which Fred, you highlighted earlier on regarding the level of investment, the growth opportunities, and the countries that you're targeting here. A question from Wilhelm Hertzog, who is from Rozendal Partners. He asks, "Do all your FibreCo initiatives imply that your infrastructure has historically been substantially underutilized?" Fred? No, that's a great question, Willem. Yes, what we try to do, of course, is we firmly believe that everybody deserves a digital connected life. What we're trying to do here also is to make sure that everybody has really access to our network. When you put fiber in the ground, usually from a mobile operator aspect, there's usually quite a few cores which are going into the ground. Majority is, of course, then underutilized. What we're trying to do here really is that when you put a cable in the ground, there's always 48 cores or 24 or even more cores. Usually, our operations just need between two to four of them, which is more than ample sufficient for running the entire network from an MTN perspective. Now all the rest lays there and is idle, of course. We'll try to monetize that, we will certainly do everything we can in order to make sure that everybody will be able to have access to that. It's a great opportunity. There's a lot of future build we're going to do, not only from an internal perspective, but also where we don't even have mobile operations. There's quite a lot of room to play there in order to build a fantastic network on the African continent. Frederik, you've clearly highlighted some key elements there, but I guess a build-up to that question is with regard to the fiber strategy. Are you looking to roll this out in parallel in a number of countries? Are you able to provide more details as to your ability to execute this? Yes. We are focusing as we speak, on certain countries where we do have quite a lot of fiber in the ground. The structural separation will be really happening there to start with. That doesn't mean that we are not looking at other options with the other countries. In parallel, also, we are looking into various connectivity roadmaps where we will be going from the east coast to the West Coast. There's three major projects also that we are working on, like you saw in my presentation. These are really uncharted territories where we really are continuing to roll out, to build resiliency for our network, but also to really dramatically lower the latency, which will become super important, especially from the various content provisioning aspects customers would like to see and to hear. Our aim is also to keep as much as possible on the African continent, and I think we have a fundamental play in doing so. In terms of execution, I think the local teams will be super busy, of course, in the coming months and years, coordinated by the central teams. I think we are laser-focused in order to execute that Ambition for 2025. I think we can hear that engine room rumbling already, right? The team ready to execute and roll it out onto the ground. Jens, to come back to you, the question here builds up on the numbers and the profitability opportunities here that come across from Own the Home. The question is from Alistair Jones, from New Street Research. Alistair asks, "For the new potential of ZAR 18 billion of revenues from Own the Home initiative, how profitable is this new revenue stream?" Jens? Alistair, a very good question. I think what we need to consider here is the capital that we need to put to accommodate that opportunity. If you look at the margins, the variable operating cost is actually very low. It's commission payments, largely. Data generally comes in as a high-margin product, but of course, it necessitates a lot of capital outlays. We are applying a very rigorous cost of production methodology, where we assess what is ultimately the cost of a gigabyte produced. We apply that even on a regionalized way to make sure that we achieve commensurate returns on our capital investment. As we push into the home opportunity, these are becoming almost regionalized investment projects, where you look at a certain region, you look at the demand, you forecast the revenue opportunity, and then you can ascertain whether the capital outlays that you need to put up are going to give you the right level of returns. So far we've been pleased to see very, very good returns, and as Tsholo has explained, we believe that we can accommodate this demand in the ZAR 28 billion-ZAR 30 billion overall CapEx envelope. Because as we are pushing towards more home connectivity, the big physical rollout, the coverage rollout for our mobile networks is reaching conclusion in many of our markets. The modernization that we've pushed through in the last few years is going to reach conclusion in the next 2 years, roughly, with the massive projects that we have in South Africa and elsewhere. We'll have some freedom to free up new capital for the home opportunity. Again, I would like to emphasize that we anticipate that we'll continue to execute it in a similar CapEx envelope as the one that Tsholo referred to. Thank you so much to you both for taking the time out to address our questions here today. We still have quite a stream of questions that have come through, but we will be sure to address them offline with the investor relations team. Jens and Frederik, thank you very much for giving us further detail into understanding FibreCo and, of course, opportunities that exist in doubling data and owning the home. We look forward to seeing more of these developments take place and, of course, reaching those targets that we have in Ambition 2025. Next up, we're talking about MTN's larger opcos, South Africa and Nigeria. I'll be chatting with MTN South Africa CEO, Godfrey Motsa, and CFO, Dineo Molefe, about the accelerating SA strategy. MTN Nigeria CEO, Karl Toriola, and CFO, Modupe Kadri, will be joining me from Lagos to take us through the accelerating Nigeria strategy. We'll do both these interviews back-to-back and ensure that Karl and Godfrey will be back here with us for a live Q&A session, where you can address your questions to these two key operating markets. Our next session is entitled Accelerating MTN South Africa, and we've certainly witnessed how this opco has demonstrated a solid turnaround in both its operational and financial performance over the past few years. This has certainly been reflected in a number of key metrics that we use. But to join us and give us some perspective regarding MTN South Africa's positioning, I'm joined by the CEO, Godfrey Motsa, as well as the recently appointed Chief Financial Officer, Dineo Molefe, to help us understand more about MTN SA. Welcome and good morning to you both. Thank you. Good morning. Well, we are quite excited to get some perspective regarding MTN SA, and perhaps let's start there, Godfrey, by really getting to understand not only more about the developments that have taken place in this particular region, but also who are the key individuals who will assist you in implementing this new strategy. MTN South Africa is an evolving operation with a strong connectivity platform. We are a solid telco. We are also an emerging fintech and digital business. When you look at South Africa at a glance, we have spent time on turning around the business, which has seen an increase in our subscriber base. The turnaround of MTN South Africa has delivered an increase in our key metrics and is one which we believe will be sustained in the future. We have invested in technology, and we have broadened our 4G and 5G footprint, which positions us well to focus squarely on accelerating growth. We have strengthened our position as a strong challenger from a subscriber perspective, and are number one on NPS and network quality perspective. These initiatives have driven an improvement in revenue and margin. We have also been boosted by a sharp focus on expense efficiencies, which is part of Ambition 2025 program. Around how we manage the business, working with me to deliver on this is a dynamic team. We have got over 200 years of combined experience. I am confident that with the team, South Africa will continue our growth ambition. Maybe worth calling out the appointment of Mathabo Sugadi, that has been elevated to manage our governance and our risk for South Africa. We have fairly recently appointed CFO Dineo. Well, congratulations, Dineo, on your appointment. I know that you will be sharing some insight with us, too, in just a moment around the background of the numbers. Godfrey, to come back to you, when you talk about network infrastructure, we know that this is quite key to meet some of the plans and initiatives that MTN South Africa has. Spectrum, in South Africa specifically, has been delayed. Give us some color as to how MTN is managing the situation. Most importantly, also going to manage some of the network demands that it has. Our overarching approach is to ensure that we actively engage with our regulators in transparent dialogue where we have any concerns and wherever there's a regulatory change. To answer your question more specifically, we are anticipating an auction in the short term, although this may be delayed. We have not rested on our laurels in this regard, and we continue to actively engage with ICASA. Our 2019 transaction with Liquid Intelligent Technologies has also helped us to unlock capacity through the utilization of their spectrum asset. While the second phase on the rollout of the managed network and national roaming agreements with Cell C will give us access to incremental spectrum capacity for MTN to roam on. Both of these afford us the flexibility to continue to innovate with regards to spectrum. The Cell C opportunity on spectrum, the Liquid opportunity on spectrum, really is very, very important for us moving forward. Godfrey, let's talk future growth and zone into that now. You did allude to Ambition 2025 a moment ago, the key question is: How has MTN South Africa positioned itself in line with this strategy? For MTN South Africa, we have successfully transitioned from a turnaround phase and now transforming into a platform operator to deliver Ambition 2025. As we have moved from BRIGHT to Ambition 2025, we focus on building on our position as a world-class telco business with an established best-in-class connectivity business. We are now transforming and expanding MTN SA into a platform business across FinTech, EBU ICT, and Network as a Service, NaaS. With an industry-leading EBU, fast-growing EBU business, a strong wholesale business anchored by the opportunities on spectrum from Cell C and Liquid Telecom, we believe these opportunities are cash-generative, we are bullish about sustaining the future ambitions. Well, we know that this is quite a strong strategy, for any strategy to be facilitated, it does need capital to be unlocked. Dineo, this is where you come in to help us understand what particular metrics or tools have been put in place that align with the financial targets of Ambition 2025. Thanks, Gugu, and good day to everyone. I will answer this using a similar framework to what you would have seen Sulu take you through a little earlier. Ultimately, the way in which we are looking at this is that if we are to deliver on that attractive free cash flow, we will need to do so in a number of ways. We are targeting a mid-single-digit growth in our service revenue through growing mobile data, residential connectivity, as well as scaling our platforms that Godfrey spoke about. We also target an EBITDA margin in the range of 39%-41%, which we will achieve through expense efficiencies, including accelerating digitization. Godfrey spoke earlier about our CapEx. We are now in a position to reduce CapEx intensity. Our priority here will be on building and monetizing the network to ensure that we are able to use our scale to advantage. We are quite clear on how we allocate capital in terms of our capital allocation priorities. We want to accelerate core revenue growth through continued strategic investment in our network and scaling as a platform operator. Where it does make sense, we will also look at strategic partnerships or acquisitions that support our efforts to progress our owning the home plans, unlocking FinTech value, driving wholesale, and also infrastructure sharing strategy. Our financial framework is aligned with the objective of Ambition 2025 and is crystallized in some of what I have just shared with you. Well, we look forward to seeing how this does unfold and gets developed in the next few years. I'm quite keen, Godfrey, to understand from you, in light of the strategy and, of course, the support that's being provided through this financially, what the investment case for MTN South Africa is. The investment case for South Africa is a compelling one. It is clear we have a strong position in an attractive market. We have delivered a successful turnaround, and we are poised for sustainable growth on NPS and network leadership. We have multiple exciting growth opportunities, smartphone penetration, the ICT opportunity, and taking advantage of the market share gains that we see in the EBU business. We are well-positioned for the long term. We have the largest 4G population coverage. We've got early 5G investments, and we've got 27,000 km of fiber. We have an attractive return profile, strong cash flow, and revenue generation track record, and we've got healthy EBITDA margins, all underpinned by a platform that accelerates growth. Well, quite excited to see that roll out. Are there any tangible metrics and figures that you can share with us and the investors that align to Ambition 2025? For sure, we can. Our Ambition 2025 is to build MTN South Africa into a business with over 20 million digital and MoMo customers and be the leading wholesale business in South Africa, contributing ZAR 10 billion in revenue. To ensure delivery of these ambitions, we'll maintain the number 1 position in NPS and almost double our current active data users. I would just ask Dineo to run through some of our medium-term targets. Sure. Thanks, Godfrey. In summary, we aim to increase service revenue in the mid-single-digit range. We're also strongly focusing on driving efficiencies, thereby expanding EBITDA margins in the range of 39%-41%. In addition to this, we're focusing on stabilizing CapEx investment and CapEx intensity, thereby delivering strong cash generation for the business. That sounds like quite a phenomenal strategy that's been put in place as well as growth targets. Godfrey, as we wrap up, we're well aware that we've got a number of investors who are listening and watching throughout the world to this investment case. Perhaps share with us what your final message to the investment community actually is. A couple of things to note about South Africa. The South African market offers a stable environment for sustained growth, primarily driven by data. MTN South Africa has turned around and is well-positioned for accelerated growth in the future. We have the best network, we have the best customer experiences per our NPS, and we have the best brand. We are optimally positioned to lead in a 5G-enabled growth era. We have a robust strategy. We have the capital, we have the people to help us support and deliver on Ambition 2025. Thank you very much, Gugu. Thank you so much to you both, Dineo and Godfrey. It's certainly been very refreshing and enlightening to hear more about MTN SA and its targets to meet Ambition 2025. Thank you so much for your time. Thank you. Thank you. We now turn our attention on to MTN Nigeria. To help us understand the growth that we've witnessed in this key market is both CEO Karl Toriola, as well as the CFO Modupe Kadri. Gentlemen, thank you so much for joining us. We're quite excited to find out more about MTN Nigeria, which has proven to be a real leader in the market. Karl, I'd like to start off with you by talking us through some of the highlights of this business and letting us know what the key drivers behind its success have been. Good afternoon, everyone. It's a real pleasure to be here with you today. MTN has a solid track record in terms of market leadership and growth in Nigeria. We have a 50.4% market share, and according to our number 1 NPS position, we are the most trusted amongst our peers in the market. Notwithstanding this long-term leading market position, we have continued to focus on growing the business. To this end, we have nearly doubled our data users in a two-year timeframe. We have also seen a 14.6% annual growth in the total number of subscribers, resulting in a 13.8% annual growth in total revenue. We have achieved this growth through the investments we are making on our backbone. As at the end of last year, we had a total number of 42,062 network sites in 2020, with an 88.9% penetration in the country's population. In terms of digital and fintech subscribers, we have 1.4 million Ayoba users and 4.7 million MoMo subscribers, providing an opportunity for future growth. At MTN Nigeria, we're fortunate to be able to have an executive management team that has a combination of telco experience of over 200 years, deep local expertise, and a successful track record of business turnaround. This positions us to drive strategy and run our operations more efficiently. We have seen significant improvements in corporate governance attributable to ExCo members introduced to focus on governance, effective stakeholder management, and operational executions in times of crisis, coupled with a highly experienced and seasoned board of directors. We have also introduced a seasoned team to focus specifically on emerging and future business, namely big tech and digital. We'll touch on those in just a moment. You did mention improvements in corporate governance, Karl. Now, we know a few years ago, MTN Nigeria was navigating seemingly turbulent waters. What does the regulatory picture look like now, and how are we approaching it differently this time? There are a number of dynamics at play at present. We are, however, comfortable that the changes we made internally will enable us to get through them. We have reinforced our relationships with key regulatory stakeholders and proactively repositioned ourselves in a constructive manner as a trusted partner for government, the preferred brand for customers and overall as the company to do business with. There are a number of questions around the new SIM registration policy. This is really a process that is conducted internationally in several countries, ensuring that your SIM card and your national registration numbers are linked. Know your customer in a nutshell. At this stage, 50% of our customers have submitted their NINs, and we continue to provide a number of avenues to get this number to 100%. Customers are able to submit details on our website using a USSD code and through our app before validation with the central national database. Karl, let's talk the competitive landscape for a second, maybe you can unpack this for us together with an understanding as to where you see opportunities in the market for MTN Nigeria. There are four main mobile players in Nigeria, with MTN being the leader, followed by Airtel. The market is predominantly prepaid with a high degree of multi-SIM cards per subscriber. A trend we're seeing increasingly is an increasing shift to data as voice tariffs become stable due to the implementation of a price floor. To maintain leadership, our approach has been focused on maintaining network quality, enhancing our footprint, whether it's LTE, rural coverage, 4G, or when the time comes, 5G. Looking forward, as the largest telecoms market in Africa with rapid growth in its population, Nigeria presents us with several opportunities for growth. Nigeria is a value-seeking market with a young, largely unbanked population. The urban market has largely been serviced, but there remains an opportunity in expanding into the rural market. We have found innovative means to ensure we have the infrastructure in place to deliver this. We're looking at 1,200 additional rural sites in 2021. What we have seen is data use increases with the availability of smartphones. We are therefore not only focusing on network, but also on increasing smartphone penetration in the market, as well as providing home broadband. Our fintech business is also a significant opportunity, which I will unpack for you separately. There's quite a bit of excitement around fintech, Karl. I'm hoping we can delve into that now, perhaps by you sharing how you intend to harness the fintech opportunity in Nigeria. Currently in the fintech space, MTN has obtained its super agent license and has over 100,000 active monthly agents and five million monthly customers. We continue to grow our agent network. We have applied for a payment service bank license, which will enable us to roll out full wallet capabilities for our customers to transact and to reach 40 million monthly users in the medium term. We intend to launch new fintech verticals, grow and secure our fintech ecosystem to include a cross-section of services that are value accretive to both individuals and businesses. Modupe, let's come to you now. Let's talk numbers, as we want to understand the financial framework underpinning your business in achieving Ambition 2025. Yeah. I'm sure this framework is not new to our investors, having seen it previously. What I've done here is to make the same model relevant to the Nigerian business. Our financial framework to sustain and accelerate growth, in much the same way Tsholo explained on Group and Dineo on South Africa, aims to deliver efficient cash flows. Our key objective is to accelerate generation of free cash flow and working capital efficiencies through a combination of increased service revenue growth, margin expansion, and reduced CapEx intensity. We are aiming for service revenue growth ahead of inflation, in the mid to high teens, through the rural telephone outlined by Karl earlier, accelerating mobile data, and scaling our platforms. Our margins will therefore increase through cost optimization and efficiency. From a funding perspective, we will continue to focus on local currency funding, which is currently at 82%. To follow our trustees, we recently announced the successful issuance of NGN 110 billion Series 1 seven-year 13% fixed rate bond, which was a first for a telco and the largest corporate bond issuance this year so far. This sounds quite favorable, I want us to go back to Ambition 2025, and a question for you two both. Karl, let's start off with you by talking us through your targets for Ambition 2025, and Modupe, if you could follow up by unpacking the KPIs for us. Karl, let's talk targets. Our ambition for Nigeria is closely aligned to that of MTN Group, building the largest and most valuable platforms, driving industry-leading connectivity operations while creating shared value and accelerating our portfolio transformation. We are looking at exponential growth in both Ayoba and MoMo users to 36 million and 40 million respectively. By 2025, we should have more than doubled our active data users to 80 million and have 5 million home broadband users from our current 500,000. We anticipate to retain our NPS leadership position and keep our reputation index above 75%. Modupe, what about KPIs? Thanks. I'm sure you will agree that what Karl has outlined is ambitious, but we are confident we will achieve this. Our ambition is to continue MTN Nigeria's commercial momentum with an eye on efficiencies to ensure that data, fintech, and digital drive our revenue growth. Whilst we grow the voice business, its contribution will shrink below 35%. Our shareholders can also look forward to a dividend payout of a minimum of 80% of our distributable income. Karl, for the benefit of investors, can you give the market a view of the environment that you operate in and how it sets you up for success? From a macroeconomic perspective, over the last three years, the industry's contribution to GDP has increased by 3.3 percentage points to 12.5%. GDP is expected to grow further, mainly driven by the non-oil sector, with telecoms identified as one of the key growth drivers. An accommodative monetary policy stance has been introduced in an attempt to bolster economic recovery amongst tight liquidity, while rising oil prices are expected to ease pressure on foreign reserves and the existing foreign exchange liquidity challenges. Let's talk your Q1 performance. Can you provide us with a high-level overview of just exactly how MTN performed? Our leading position in the market and our drive to take advantage of the population's ability to spend money translated into a solid financial performance despite several challenges we faced in operating conditions. The momentum of recent growth has continued into quarter one 2021, and we are confident we will continue to drive that growth forward. We have seen service revenue growth of 17.2% and experienced EBITDA margins of 53.1% in the first quarter of 2021. Data and voice revenue were up 42.6% and 8% respectively. As we position ourselves as Africa's leader in fintech, revenue in that business grew by over 28.5%. Sounds like quite a favorable dividend there, shareholders will certainly be pleased. Karl, as we come back to you, we're speaking to an audience of investors, and I'm keen to find out from you what your final words are to close off as we speak to investors today. Taking advantage of MTN's existing platforms and assets, we are well-positioned to accelerate our long-term growth. We have very strong operational and financial results, solidified over the years. We have consistently delivered double-digit growth revenue in terms of service revenue on a year-on-year basis, with an average of 15% in the last three years. We further consistently declared attractive dividend payments and generated strong cash flow with moderate leverage. Looking forward, MTN is in a strong position to drive continued service revenue growth ahead of inflation. This will be underpinned by a solid connectivity business and the unlock of our fintech opportunities. Our efficiency at all cost approach drives margins and drives cash flow growth. A positive culture change across the operation to enhance productivity and further improve performance is a priority. We continue to focus on deeper, proactive, and inclusive engagements to drive shared value for all stakeholders. A balanced structure and well-seasoned leadership team with deep local and international expertise is what we will leverage on. Karl and Modupe, thank you so much for giving us an overview of MTN Nigeria. We're looking forward to seeing more of how this particular market continues to grow as we move towards Ambition 2025. We've come to that important part of the day, again, continuing with our Q&A session, speaking to both the chief executives of these key operating opcos. That would be Nigeria and South Africa, as Karl and Godfrey do join us. Karl, still coming through from Lagos, good to see you and great to see that we're taking advantage of the technology that MTN develops to connect through these conversations today. Godfrey, great to have you with us here in studio. There's quite a few questions that we will continue taking from you as members of the investor community, please do keep them coming through. A reminder that we will continue to group and align certain questions that have similar themes to them to ensure that we do ask them in a consistent manner and giving you as much feedback from our guests as possible. I guess let's pick up with the first one, starting off here in Johannesburg with the South African narrative, Godfrey, and you did allude to it in your presentation, but there remains an increased focus on spectrum. We do understand that you did address this, but perhaps you could give us some insight as to how MTN is engaging with ICASA, as well as the ongoing conversations on provision of spectrum allocation. Thanks, Kuku. It's a very pertinent question. I think the first thing to call out is that it is not in our interest, it is not in the interest of MTN to delay the auction of the spectrum. We are in a spectrum crunch. We need spectrum more than anybody else. However, we have objected to the view that the way ICASA had designed the auction, there was a risk that we'd actually end up not getting 5G spectrum. There is no way we are going to a 5G era, and then we have to basically buying spectrum from other people. We cannot spend billions of dollars building a world-class infrastructure on 5G and we are using that on rented spectrum. We're basically simply asking for a process that gives us a fair chance to get sufficient spectrum. Having said that, we do not want to go to courts to basically get into this. We have started a process with ICASA, a negotiated settlement. It's really encouraging around the interaction that we're having. We remain optimistic that in 2021, we should be able to get the spectrum auction. In 2021? In 2021. If you look at how we're basically interacting with ICASA, the correspondences around the issues of disagreements, we are converging more than we are diverging. Okay. That provides a great note of confidence, and having heard from both Jens and Frederik, we know how important- Yeah That kind of infrastructure is in order to meet some of the targets you have. It is not over until it's done, but we are optimistic that we're headed towards the right direction. We're taking this thing very seriously, and we're negotiating in good faith with ICASA. We're really hopeful we are going to find each other so we can actually award a spectrum. In a fair way, we can get sufficient spectrum, so we can commit the investments. Speaking of investments, and of course, that does mean increased opportunities for 5G connectivity, which was recently launched by MTN as well. Let's link that, however, to the focus on MTN as a business, which has turned around quite quickly. The question asks here if you can perhaps provide more color and detail to the elements that supported this turnaround, more detail around how this was achieved, and how you'll sustain and accelerate the current growth targets in the business. No. Thanks a lot. It's almost like in two frames. The first era, which you call the BRIGHT era, was about dealing with the fundamentals. Build a solid network, second to none. For 3 years in a row, we have basically been the best network in South Africa, and also in the continent, if I can go further. The second part is be efficient, be hard on costs. We have basically pushed a lot throughout the business, and we've expanded the EBITDA margins from 35% to 37% to 39%, and the ambition we have now is to be between 39% and 41%. The third part is around people. A strong team. People who have done these things and know how to do it. You can see that, especially in the B2B space, led by Wanda Matandela. That has been growing for 8 quarters in a row. You continue to basically grow it in the future. Even through a pandemic? That's quite substantial. Yeah, because what happens in a pandemic, the service that we provide are really very critical. Pandemic, no pandemic, people need data. People need connectivity. People need to communicate. Businesses have to run. That's why we have even been classified as an essential service. Yeah. Maybe looking forward around the transformation phase, we have fixed the fundamentals. Business is growing. Costs are being contained. Margins are expanded. The CapEx is stabilized. Cash is being generated. We need to build new businesses. The platform operator ambition around fintech. Around EBU, especially in the advanced, I'll say B2B services, as well as the digital platform and Network as a Service, NaaS. Yes. Yeah. Those are really the four main platform businesses that we focus on basically moving forward, to unlock new value, to basically build new opportunities. We'll come back to those themes in a moment because there are a few questions that are lined up and really looking to gain more insight into those growth levers that speak to Ambition 2025. However, I do want to come to you, Karl, to address a question that's come from Jonathan Kennedy-Good of J.P. Morgan. Fairly loaded, but again, speaks to some of the challenges that we know have been taking place within the Nigerian market for some time. The question asks if you could please provide an update on how MTN Nigeria is addressing the National Identity Number registration process. Has there been progress on developing an IT interface with the government to verify identity numbers? Is verification of NIN required by government? Perhaps if you can address this, Karl, and add more color following the overview you provided in your presentation. Thanks, Gugu. As I think it's well known by all, the government stopped the sale of SIM cards in December 2020. We resumed on 29th of April. All SIM cards are required to have an associated NIN linked to them. We've secured approximately 50% of our base that have submitted NINs, and 60% of our revenue. Those NINs still need to be verified by the National Identity Management Commission. That is ongoing, on a regular basis. We've resumed the sale of SIMs from the 29th of April, and we're seeing a gradual ramp-up from that perspective. The direction given by the minister remains in place. It hasn't had any material impact in terms of our revenue, and you'll see that from our quarter one results. The capacity in the National Identity Management Commission is gradually being built up to enable the verification and registration of SIM cards, as we ourselves in MTN have procured and rolled out massive capacity both for SIM registration and for NIN registration to support the government. Well, we certainly hope that that does address the concerns that we've heard from our guests. As you say, ongoing conversations, but some clarity being provided there. A follow-up question to you, Karl, that is related to an outline. If you can provide one, an outline on the interrelation between USSD and bank charges. There seems to be some issues across the market in this regard. What resolution is being sought to address this issue? There's two issues here. There's the banking commission issue, for which there was a dispute around the Easter weekend. Again, with that, there was really no impact on our revenue numbers. It was primarily a commercial dispute, and I'm very pleased that we got support from both the financial and the telecoms regulators. We pretty much resolved that. We continue to look for methods to optimize our cost of sales commission, through changes in the commission structure and exploring new and diverse digital channels to recharge. We think that in the past, we continue to optimize, we continue to give a diverse set of channels for customers on a continuously cost-optimized basis for recharge. That's on one hand. There's the cost of the USSD service to access banking services. A memorandum of understanding was agreed in principle between the industry players, that's the bankers, the telcos, and the industry regulators, the Central Bank of Nigeria and the NCC. Sometime late in April or so. The details of that memorandum of understanding have been a subject of intense engagement right up to yesterday. I think we will come to a firm closure on a very imminent basis on that issue. Will start to charge a fee which covers not just the cost of the current access of the USSD channel, but also addresses the historical debt and gives us an opportunity to recover that over an extended period of time. Thank you. Thanks so much for that, Karl. There's another question also related to the regulatory environment, and this time around regarding the PSB license. Perhaps twofold, if you can elaborate for us here. The first question wants us to provide a difference in terms of understanding the benefits and the difference between the PSB license over a super agent license, and a follow-up that we have from Richard Hassan. Richard asks, "The allocation of the PSB license in Nigeria seems to be taking longer than expected. Where are we? In your engagements with the regulators, have you raised some major issues or concerns, or is this purely just a timing issue?" Twofold question there related to PSB licensing. Let me first try and explain that the super agent's license is primarily a service which distributes banking services. With a PSB license, we can open wallets and offer a significantly wider range of services, including savings, cash in, cash out, retail payments, and we can invest the flows into treasury bills under the current regulations. There's quite a difference, but we still believe that even with this super agent license, there's quite a bit of value to be created by MTN, particularly with our wide distribution network. In terms of the PSB license issuance, as you know, 3 players have been issued the license. The biggest telcos, which is ourselves and a competitor, are still yet to get the license. We've been engaging in a very constructive manner, I think as time evolves, it becomes more and more clear that if you don't have the big players in telco, the agenda of accelerating financial inclusion will be under threat. PSB remains a very firm priority, and is the largest opportunity for financial inclusion, alignment with the nation-states and value creation for MTN itself as well. It's taken some time. I think we've gone through significant constructive engagements with the Central Bank of Nigeria. We feel that there's a better understanding of the value that we can add. We can't give a firm commitment on when we'll get the PSB license, but it is a very clear priority of ours, and we think we're headed in the right direction. Thanks so much for that, Karl. If there's much for us to take away, it's certainly the ongoing engagements and conversations that do take place in both opcos, from a regulatory point of view, that are leading to some favorable outcomes. Godfrey, we come back to South Africa now for a question that Jaynesh Bhana of Mazi Asset Management has asked, and it's all about MoMo. He wants you to add more color in terms of how successful MoMo has been in South Africa. If you can give us a sense of the revenue contribution or active subscriber numbers. How has it been performing? Thanks, Gugu. It's a very useful question because we have had difficult paths when it comes to MoMo. We are actually making a remarkable progress on MoMo by historical standards. Why am I saying what I'm saying? In hardly a year, we have registered over 3 million customers. Of which 300,000 of them are 30-day active. We never saw a run rate like this in the past. We're on the right trajectory. Of course, a lot is still to be done. The point around revenue is an important point. The strategy is you start by getting the base. We're trying to get to 5 million customers by 2025. Once they're in the crawl, you add more services, and then you start basically monetizing. The single most important KPI is customer acquisition. That is active. The registration and the 30-day active, the product pipeline. From payment to P2P to purchases- all the innovation based around that, we need to accelerate so we can then unlock more value. If we can build on that, is that, I guess, part of the secret sauce in the strategy that's now resulting in these more positive outcomes given the implementation of MoMo? It's actually a number of things. The first one is the tech. We now have a platform The Ericsson converged wallet in all our 15 markets. We know from a tech perspective how to design this and run this. The second part is the people. We've got Felix Kamenga. Again, he has done this in many countries before, and then now it's almost like what we did in B2B. Actually, in B2B, we're replicating that in basic in fintech. Getting experienced people who have done these things. Felix is pushing that. The third part is the opportunity still exists in South Africa. There are 11 million people that are underbanked or unbanked. We're also seeing a lot of convergence between the developed market and the emerging market if you look at the innovation in the fintech space. I use MoMo. I am properly banked, but there are situations where it's more applicable to basically you. With more innovation, with more customer acquisitions, and then look at all the verticals like your lending, your e-commerce, over and above the traditional MoMo space. we believe that in South Africa, there's a huge opportunity for fintech. We will continue pushing. You mentioned the 5 million target in terms of customers. Are you able to provide numbers, and clarity in terms of its revenue contribution to the group? Yeah. We have the number for the revenue opportunity, we're not at the moment in a position to declare to the whole world. Sent. Yeah. We will await those announcements to come through for the investment community. There's a follow-up question here, Godfrey, this time around focusing on channel optimization and requesting if you can add some color on what sort of mechanisms you've used in channel optimization which drove the margin uplift in South Africa. Can this be sustained, is the question. It can be sustained, and it should be sustained. If you look at the margins expansion in South Africa from 35%-37%-39%, and as I say, we're looking at 39%-41%. Of course, we are strengthening the top line, but we have really implemented what we call basically smart commissions. Talking about devices, we can't be selling devices to the market at a loss. At the minimum, it should basically break even. Also, look at the packages that we basically have in the marketplace around SIM cards. Why do you have to put a wrapping that costs ZAR 10 when you can actually wrap this thing with plastic that costs- ZAR 0.20? Also, why should we pay distributors for customers that they churn in three months' time? It's basically a mixed number of initiatives that we have. To be honest with you, Kuku, there's a lot of these things that we have to do, and we are going to do. To the point, that is this sustainable? We'll basically make sure that it is sustainable because the 39%-41% EBITDA guidance is really very important for us, and we are able to implement smart commissions and still be able to find growth. Also, our partners, our good partners, they're also able to make money. Makes a valid point there. We know that Danielle did provide us with some clarity and some details regarding the positioning of how the necessary capital is available to ensure that we're able to meet our targets. This particular question now speaks about cash flow, and it asks here: South African cash flow has always been a key to the overall group profile. Please provide some context on cash flow at MTN SA. How has this evolved, and how are you going to drive it going forward? Thanks. No, the way we manage the business, first of all, you have to generate growth from the top line. We're given the single-digit guidance of 4%-6%. Make sure the top line is growing. The second part, of course, is cost containment. Be hard on costs. We've spoken about that. The third one, of course, is CapEx investments. We've stabilized the CapEx. As I say, for three years in a row, we have stabilized the CapEx, but our network is still second to none. Of course, also with more spectrum, it makes things even better for us. We believe that grow the top line, contain cost, stabilize the CapEx, generate decent EBITDA, you basically get the cash for the group. Those three, the master equation that we have to basically master every week, every month, every quarter, every year for the next periods until 2025. That's how we plan to run. Takes a lot of discipline to execute that effectively, right? Hard. It's fun. It's fun. Yeah. That's important for your job to be fun as well. I guess keeping with the CapEx theme and perhaps directing this to you, Karl, to give us some insight within the Nigerian market. If you can talk about the availability of US dollars, and its impact specifically on the ability to actually roll out CapEx. Can you share some insight on that for us, Karl? Yes. There are constraints in forex liquidity in Nigeria, through a mix and match of trade lines, looking for solutions for vendors where we can pay them in local currency, and adequate planning in advance. We've been able to keep up our CapEx program well in place. It remains a risk that we're very conscious of. Modupe referred to our mix of local and foreign funding, to ensure that we don't go over certain thresholds in terms of forex exposure. With a very smart and agile work through our treasury and finance functions, we've been able to keep our CapEx roll out in line, and perhaps even slightly ahead of the plan, and deliver the equipment that we've needed. It's a bit of an art, a bit of a science, so far really good. At least some positive steps that are certainly unfolding there, Karl. We come back to South Africa with a question that we have from Ziad Jussab of Nedbank, this one really speaks to the detail that Ralph had provided in terms of the tower arrangements and agreements we have, he did allude very briefly to Cell C in South Africa. This question asks for more insight. The question asks: The Cell C roaming deal appears to be a clear win-win situation beyond high margin growth in the enterprise segment. Could you explain the mechanics of how the new Cell C roaming arrangement will enable MTN SA to have improved spectrum access? Quite loaded there, Godfrey, if you could share some details. Yeah. The Cell C deal, maybe to just simplify it, when it started in 2018, Cell C was roaming on our spectrum in the rural areas because it was just expensive for them to be deploying network everywhere. They saw the benefits of that, they liked it, they said to us, "Why don't you also take over the urban areas?" The question also came and say that, "For us to absorb you in the urban areas, we do not have enough spectrum." We basically said, "Okay, we should be able to roam on your spectrum, and then you roam on our spectrum." Put simply, where there is not enough capacity, especially in the urban areas, we're able to basically then build extra radios, the modern solution, where we can actually run the traffic on the Cell C spectrum. In summary, we have the Y'ello spectrum, and you've got the Orange spectrum. As opposed to building more towers, you're basically going to be utilizing the spectrum basically first. It creates a lot of efficiencies for MTN, it creates a lot of efficiency for Cell C because the benefits, of course, will pass through to Cell C. By the way, we're much more optimistic with all due respect to Cell C. Cell C are now paying us. Of course, they haven't extinguished what they owe us. But for what they are using, they're actually able to pay us. It's getting better. It's not getting worse. Getting better, which is a clear strategy and a better direction to move into. The prospects do still remain to keep that as a sustainable partnership. Thank you so much, gentlemen. We certainly have a lot of invigorating questions that have come through for both these two opcos, which are very important to the MTN Group, and of course, align quite closely and clearly with Ambition 2025. Karl, we thank you for your participation today and for joining us all the way from Lagos to communicate and share with this messaging, and having Godfrey here with us in studio to share some feedback. A big thank you to both the CEOs of MTN Nigeria, Karl Toriola, as well as MTN South Africa, Godfrey Motsa. We've come to the end of the second session for today. We've absorbed a lot of information about the key drivers behind the strategy here, key opcos being Nigeria and South Africa, and of course, the conversations we had earlier about doubling data, FibreCo, and owning the home. We still have opportunities for you to view these presentations that have been shared through the presentation packs, and we want you to continue to engage with us as we also take a look at other emerging markets later on in today's program and get more details and insight into the positioning of Ambition 2025. For the moment, though, we do want you to take a lunch break, stretch your legs, get some refreshments, and we will commence with this programming and Capital Markets Day at 12:45 P.M. 12:45 P.M., that's when we'll commence after this lunch break to pick up on more themes that we need to explore under the MTN Group. Some people, they's got no shame. Some people, don't waste my time. I como money. Yeah. I como chelete. Chelete. I como money. Yeah. 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Ladies and gentlemen, we trust that you enjoyed your lunch break. We will be starting shortly. Pan-African connectivity and tech platform businesses have an opportunity to connect people not only to each other, but to broader digital services and platforms that enhance the way we live. MTN's Ambition 2025 strategy is anchored in building the largest and most valuable platform business in Africa with a clear vision of leading digital solutions for Africa's progress. We are building five scale platform businesses on top of our leading connectivity network. We have built a scale fintech business, and our ambition is to double the size of the platform over the next five years. We also see opportunity for mobile commerce, where our fintech business intersects with our Ayoba business. In recent years, we have focused on connectivity, building and indexing up on our enterprise business. We see opportunity to create a significant scale enterprise business through the use of Internet of Things and other technologies, and improving the economics of businesses across markets by extending our well-invested networks. Finally, we are building Africa's API marketplace, enabling developers and businesses to create, discover, and subscribe. Our platforms are underpinned by one network, one API layer, and one data lake, putting us at the leading edge of change and empowering Africa and its people to fully benefit from a modern, connected life. Welcome back to MTN's Capital Markets Day, where we're taking you, the investor community, and select media through the company's Ambition 2025 strategy. Well, we trust that you enjoyed your lunch break and had some refreshments as we now deep dive into the second half of today's program. Of course, emerging market telcos have an opportunity to connect people, not only to each other, but to broader digital services and platforms that enhance the way of life. MTN's Ambition 2025 strategy is anchored in building the largest and most valuable platform business in Africa. Meanwhile, mobile money has transformed the face of financial services. MTN continues to scale its fintech business, with the goal being to transition to an end-to-end platform focused on creating a digital marketplace that connects consumers to businesses and businesses to businesses. Let's check out how the business is going about in terms of building Africa's largest and most valuable fintech platforms. Africa is rapidly embracing digital solutions to unlock significant economic growth opportunities. Mobile money has transformed the face of financial services. By harnessing technology, traditional financial service is being leapfrogged into the future. This fast-growing industry has accelerated financial inclusion, acting as a potent enabler to socioeconomic development and empowering the most vulnerable in society. MTN is building Africa's leading digital platform, unlocking economic growth through financial and digital solutions for consumers and businesses of all sizes. Historically, our solutions were focused mainly on consumer deposits, withdrawals, P2P, bill payments, and airtime purchases through agents. Today, our fintech ecosystem has expanded to merchants, businesses, developers, banks, insurance, and many other partners, connecting consumers and businesses in multiple ways. As we continue to scale, our goal now is to transition to an end-to-end platform focused on creating a digital marketplace that connects consumers to businesses and businesses to businesses, enabling companies to leverage our platform to accelerate their growth. We see this as a significant opportunity to redefine affordable, inclusive, and comprehensive financial services. To support our vision, we are focusing on five verticals within our fintech platform: wallet, payment and e-commerce, BankTech, InsurTech, and remittance. We believe our fintech platform can act as the backbone to unlock and support the growth of African digital economies. We understand that for our consumers, mobile money is an everyday enabler. For the businesses of Africa, mobile money is the gateway for digitization and acceleration. As more people reap the dividends of being financially included, we are paving the way to enhance lives and boost economic growth to the benefit of all. I think it's safe to say that when we talk about all things fintech, the energy and excitement is palpable. We certainly want to hear more about the growth targets and the ambitions that were highlighted earlier. As we know, 100 million is the target that we're looking for as we implement Ambition 2025 for MoMo subscribers. Someone who will tell us not only about MoMo, but many more of these various levers and unicorns within the fintech space. We are now going to take a look at a presentation from Group Chief Digital and Fintech Officer, Cyrille Nkontchou, who will talk us through the latest and future plans in the fintech and digital services streams. Following Cyrille's presentations, we'll go straight into a Q&A session where we'll unpack and peel back at the many layers of the developments in fintech. Both Cyrille and Group CEO and President, Ralph Mupita, will join us for that session. Thank you, Gugu. Good morning or good afternoon to everyone, depending on from where you are listening to us. I'm going today to present to you our digital and fintech vision, strategy, and how we will be implementing the strategy. The penetration of financial services and e-commerce is marginal across African markets. The opportunity exists for Africa to accelerate digital disruption within financial services, insurance, lending, remittance, payment, and e-commerce. Our vision is to be the leading platform of Africa, unlocking economic growth through financial and digital solution for customers and businesses of all sizes. Meet Kafui, entrepreneur in Ghana. How she goes about her everyday life is the journey we strive to provide to all our customers. She uses mobile money to manage her business and payment and also sells her products online with MoMo Market. Kafui now hardly receives physical cash. She received a business loan with MoMo Advance to invest in buying new products to support her community. She uses aYo to insure her inventory and reduce her business risks. She sends money and often shares wisdom word on a local Ayoba channel to her son studying in Cape Coast somewhere in Ghana. Kafui is also 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 channel on weekends and watches live Sunday functions on Ayoba when she travels to Accra for businesses. I'm excited to say that MTN is building Africa's version of WeChat. This slide shows you the ecosystem in more detail, where we will build on a scale platform and network and offer financial services and e-commerce solutions, not only to consumers, but also to businesses to support Africa's growth. On the left side, we have the services offered to consumers, and on the right side, you will see the services we offer to businesses. These are brought together through integrated platform and supported by integrated partners such as banks, logistics networks, and content providers. Delivering through a bold strategy. We have bold ambitions to accelerate growth in MTN territories through excellent delivery and evolve to a full OTT play. Africa is ripe to accelerate digital disruption with tech, and we are well-placed to take advantage of the ZAR 25 billion revenue opportunity. Ultimately, we expect to be the biggest digital and fintech platform in Africa and delivering six unicorns in one business. The unicorns underpinning this opportunity include mobile wallet, which is already a unicorn and has scaled already with 47 million active monthly customers. E-commerce and payment are predominant because of small informal businesses, and it is really booming. Fueled by COVID-19, we have already more than 500,000 merchants. Current lending mechanisms have limited reach and are not inclusive. We are disbursing more than ZAR 100 million loan to our customers. Insurance adoption is at 2.8%. We have more than 11 million policies to date. Remittance are showing strong growth underpinned by inter-Africa trade. We have processed more than ZAR 1 billion remittance transactions end of last year. Securing several partnership will help us to ensure success and to scale faster also in implementing our strategy. Really part of our strategy is make sure that we find the right partnership to scale the new unicorn, InsurTech, BankTech, remittance, payment, and e-commerce. This partnership will provide important expertise as well as potentially becoming equity investors. Leveraging our assets, building Africa's largest and most valuable fintech platform. Our fintech business is already a scaled business. We currently have more than 48 million monthly active users. We delivered more than ZAR 13 billion revenue in 2020 despite P2P zero rating due to COVID-19. Our fintech platform processed more than $150 billion in 2020. We are processing more than 16,000 transactions every minute, but we still have a lot of things to do to capture the $25 billion fintech opportunity in Africa. Payment remains cash-based, with 95% of transactions still cash, 75% of mobile money customers do not have access to lending. Insurance has only 2.6% penetration across Africa. We believe that we will be able to deliver, by 2025, 100 million fintech users and more than 20% contribution to MTN Group service revenue. We are on track to be the largest fintech player in Africa. We expect to be the number one mobile money wallet by end of this year in term of deployment, scale, number of active users. No other big players have absorbed these services into one super app platform, and MTN ambition is to go beyond traditional telco-led model with the OTT super app, Ayoba. There are several non-telco players in Africa, fintech and super app space. None of them has gained momentum or succeeded in multiple countries while we have. We believe MTN is well-positioned to combine the increased penetration of smartphones with the reach of mobile wallets and our unique asset to become the continent's leading player in the digital economy space. The intention with this slide is to give to you an indication of how big MTN mobile money platform is in term of user penetration and transaction value per country. The left hand of this slide shows the current penetration by region across Africa, across also financial services, credit cards, and insurance. Fintech has scaled its wallet platform and secured licenses in several market. You have seen that now in most of our countries, we have telco-led licenses secured by MTN. Zooming into this market, the right-hand side indicates the number of active mobile wallet users compared to the total population figure by country. You will notice in countries like Ghana, where the value per GDP is at 120%, highlighting the trajectory for growth for other markets when there is scale. We are going to talk about how we're going to unlock the potential on mobile wallets across Africa. Our plan is to continue harvesting within MTN base, open mobile money to non-MTN customers in existing markets, and launch new markets. We have seen progress in South Africa and Nigeria. In South Africa, we've launched mobile money and we are building distribution in Nigeria. We have launched super agent licenses and have applied for PSB. We expect a notable uptick before 2025, as explained by Karl and Godfrey in their respective presentations. We, as MTN, we are well-positioned to seize the payment and e-commerce opportunity across Africa. Looking at e-commerce, in only two years, MTN has managed to become one of the largest merchant acquirers with more than 500,000 active merchants, and we are well-positioned to capitalize on the payment and e-commerce opportunity through our institutional knowledge, distribution network, and regulatory environment, and also on all other assets that MTN has. If you look at it carefully, we have 47 million customers. We have more than 500,000 merchants, and we want to really create a platform which will help to put together the merchants and our customers and to create the biggest e-commerce platform within Africa. On BankTech side, we are prioritizing the development of a value proposition for four segments: for MTN consumers, for our consumers, MTN overall, with really what we call airtime advance, with MoMo consumers, with merchant and agent. Each of these segments will have a unique value proposition, which will help really to unlock the potential of lending in Africa. MTN has really unique assets, combining its data wealth and the scale mobile money wallet. We have facilitated already 100 million loans per month, and we think that we can do much better with what we are putting together. We are building our own product and technical capabilities. We have secured partnership with regional banks and fintechs. We are already live in Uganda with our product, and we have opco-led project running in eight markets. Our objective is really to be live in all our markets by 2023 with the four services I described earlier. InsurTech has a very big opportunity in Africa, which is really underserved today. Currently, we've sold more than 11 million insurance policies since inception. We are live in only three markets, with two additionals coming this year, Nigeria and Ivory Coast. Our objective is to gain 33 million active customers and deliver revenue more than $455 million through a full portfolio of micro, life, retirement, saving, and general insurance. Our plan is to expand in more countries by leveraging our core MTN and fintech platforms and leveraging strategic partnerships such as Sanlam to accelerate aYo. Onboarding Sanlam as a strategic partner will boost our growth. aYo will be leveraging Sanlam footprint, coverage of 33 markets, licenses, expertise to accelerate performance. Sanlam becoming an African champion matches with our fintech ambition. We are already in a very strong position when it comes to international and regional remittance. Already, we are processing more than ZAR 1 billion as a remittance transaction per year. Remittances in Sub-Saharan Africa are growing at 10% per year. Our plan is to multiply our remittance volumes for four times by 2025 through growing our ecosystem partner, launching inbound remittances in Nigeria, driving aggressive pricing and volumes using airtime and data. As Ralph explained earlier, we have a plan to restructure our fintech. This is underpinned by the need to comply with local regulators, our operating model, attract strategic partners, and realize our FinCo valuation. Our target dates include the following: From 2020 to end of 2021, this year, we plan to create our OpCo FinCo and to put substance in the OpCo FinCos. In 2022, we'll consolidate our FinCo operations under one FinCo topco. Once we are completed consolidating our FinCo business under our FinCo topco, our primary focus will be to attract strategic investors to accelerate growth. An IPO will only be envisaged at a later stage. We aim to have 100 million active MoMo users by 2025, contributing more than 20% to MTN Group service revenue. Continue driving strong synergies to move from 40%-70% penetration with our GSM base, grow and expand beyond MTN customers and new markets. There is major potential for an Africa super app, the continent presents its own challenges to faster growth and adoption. MTN's mission with Ayoba is to act as the African digital economy catalyst, made possible through its triple play of free messaging, content distribution service, and e-commerce, opening the platform to third-party services delivered through channels, bots, and app-in-app. We aim to build a super app that meets the needs of African, particularly in those markets where we operate in. We have identified the gap in our markets, particularly in terms of literacy of subscribers, current ownership of 2G-enabled handsets only. We aim to take advantage of the existing opportunity to grow this space. We aim to reach 19 million active users for Ayoba by 2021, end of this year, and 100 million users by end of 2025. Ayoba is only two years old, it already has over five million active users. We aim to reach 19 million by end of this year. We spent the first half of this year fixing the basics. We'll scale further during the second half of this year to achieve this goal. We will launch a very aggressive campaign to increase Ayoba awareness within Africa and the diaspora, leveraging MTN's footprint and network access to attract 19 million monthly active users by end of this year. By end of 2023, we aim for 41 million. The Ayoba platform aims to harness growth in the African digital economy. Today, we have over five million users in 20 markets. We believe the opportunity is $10 billion GMV. Our ambition is to reach 100 million users by end of 2025 and to capture 12% of the GMV of the digital economy to reach $1 billion. There is a significant potential for a super app to capture the African digital opportunity. Our network and distribution assets enable a unique opportunity to become Africa's digital giant. Africa's enablers for the digital economy are coming into place for a strong acceleration in the coming four years. By end of 2025, we expect mobile data penetration to accelerate three times and smartphone penetration to grow to 71%. Digital value chains and digital services are also building up fast. In addition, the digitalization of services and e-commerce is ongoing. Currently, mobile and PC capturing 85% of video consumption. Lastly, localization is still required to succeed in the continent. This is MTN's sweet spot, capturing the large share of the GMV of the digital economy. The big opportunity is to capture a large share of the GMV of the digital economy. The main verticals that we'll cover with our app-in-app play should represent a total market potential of more than ZAR 118 billion. We aim to capture more than 10% of the GMV of the digital sector in our footprint to reach between ZAR 10 billion and ZAR 15 billion GMV by end of 2025. Development phase of Ayoba is organized around stage 3, as you can see. In phase 1, we will build the enablers, in phase 2, we will upgrade the enablers, and in phase 3, we will expand and monetize the opportunity. We will be completing stage 1 end of this year and stage 2 by end of 2023. Our ambition is to reach 100 million active Ayoba users by end of 2025 and capture 12% of $1 billion GMV of the digital sector. Africa's enablers for the digital economy are getting into place for a strong acceleration in the coming four years. As our ambition are very, very high, we've identified risk on how to execute our strategy. Here, I'm going to present to you the main risk we've identified and also what we've found to really make sure that we mitigate them. Let me take you through the mitigations. With our new operating model implemented together with Topco and consolidation, we'll be able to mitigate really the speed of the execution. Ongoing investment in technology and strategic partnership, rapid execution of the six unicorns with integrated product and platform, strategic investment and partnership to support rapid growth, free data and SMS continuity as differentiator, services diversification through app-in-app to reduce dependency on instant messaging. Comprehensive process automation continue, GSMA certification. MTN is the largest group with the largest number of operation which has GSMA certification so far. Combining the increased penetration of smartphones with the reach of mobile wallets, and MTN unique assets offers a unique opportunity for MTN to become the Africa's largest fintech giant. Our vision is supported by two platforms that are complementary and being developed in parallel to essentially create a full integrated ecosystem. Our fintech business to become Africa's super app with five unicorns and Ayoba!, the sixth unicorn, will be the super app of Africa, a single portal for a range of financial, telecom, and content product and services. Ayoba! and fintech platforms are developed currently in parallel and will converge to create a fully integrated ecosystem. Now I'm going to present to you the digital revenue ambition by 2025. We aim to grow and diversify revenue and contribute to more than 20% of MTN Group service revenue between 2023 and 2025. To support execution, we are intensively investing in technology and talents. We will continue developing strategic partnership, enable rapid scale for each vertical, and enable our in startup with the right operating model. As I presented to you our vision, the strategy, how we're going to implement the strategy, I'm going to present to you the people who are behind the execution of this strategy. We have a global team, passionate about Africa and committed to unlock the full potential of the digital economy. You can see that the team has different diverse skills and coming from everywhere, and with one goal and one ambition to build the Africa largest digital platform by end of 2025. Our key takeaways, MTN's key differentiators on messaging is the free data on MTN network. Our aggregator model will offer a large choice to the user. We will help global content players to distribute through Africa and super app to allow us to seize opportunities in the other verticals. The African digital economy has market size with a revenue opportunity of $25 billion, we are building Africa's largest super app and super platform with 100 million users monthly. Our proven in-startup model gives us agility and rapid scale to contribute more than 20% of MTN service revenue. Thank you very much for listening, and enjoy the rest of the day. Well, I think the energy is quite palpable, when it comes to Fintech and what we've learned about Fintech and digital services from Serigne. We're joined by both Serigne and Ralph to expand a lot more on this particular segment of the business, helping us understand more of the growth drivers, where the partnerships are coming from, and of course, a clearer understanding into how this does tie into Ambition 2025 and the targets that have been set out. Gentlemen, great to have you both. Ralph, thank you so much for coming back. Serigne, I must tell you that this is quite an exciting segment, and we've already witnessed some of the questions coming through from members of the investment community. I think firstly, let's perhaps start there in terms of the lives that you're actually changing on the ground. There's an entrepreneur, Kafui, if I'm not mistaken, that you highlighted from Ghana. This really does help us personalize and understand the impact that Fintech technology can have on the ground on the continent. Yes, for sure. Kafui is an example of how people are using our portfolio of product and services and how also we are impacting people's life across where we are operating. In other markets also, the same way we are impacting Kafui's life in Ghana, we are impacting also the life of people in our other markets. Really, our ambition is to really help to increase digital and Fintech and financial inclusion in Africa within what we are doing and to serve really the continent. Mm-hmm. Well, you really are moving into a space that has a lot of opportunity and excitement, but I guess top of mind for many investors, we're also well aware that this is a very competitive environment. I guess a twofold question to the both of you is, we take a look at the number of competitors that are trying to penetrate the continent as you are. How is it that MTN will remain resilient and competitive within this particular space? Serigne, Ralph? Maybe I will start and Ralph will build on it. For us, I think we are really focused on implementing our strategy. We do believe that the market is very big, the opportunity is very big in Africa when it comes to Fintech, and there is a lot to be done. We don't think that also we should be afraid about competition, about what they are doing. We spend a lot of time scanning the market to know what they are doing. It may impact time to time our strategy, but the most important thing is really for us to continue building our strategy of building five unicorns. If you look at it carefully and closely, you will see that the first unicorn, which is the wallet, is the most scaled wallet in Africa, with more than 47 million customers using already on a monthly basis our wallet. The second unicorn, which is payment and e-commerce, we already have more than 500,000 merchants across our footprint, and we are the biggest merchant acquirer in Africa currently. We will build on that to build our e-commerce platform, and we've launched our pilot in Ghana, and we'll be accelerating the implementation across our footprint. Our third unicorn we are building, which is BankTech Lending, we are disbursing currently more than ZAR 100 million to our customers when it comes to lending. It is a very scaled business as well. If you look at InsurTech, we talked about it, what we will be doing, and it is already very big. We have 11 million policies, and if you look at international remittance, within our platform, we processed more than ZAR 1 billion remittance transaction last year. I think we already have a very scaled business, and we will be focusing on continuing executing our strategy. We think that, whatever competition we'll do, we will be doing well as well and achieve our targets. Yeah, maybe to top and tail, on Serigne's responses, Gugu. I think one of the unique features for MTN was just the markets we operate in, and I think Jens touched on it earlier on, is that actually, smartphone penetration in our markets is still very low. Although many people think USSD technology is old technology, it's still very relevant to us today. Linking the USSD technology and the distribution and the merchant ecosystem that Serigne spoke about is a very unique set of capabilities that we have as MTN. Now to your point around the competition, the competition, the space is heating up. Lots of app-based applications on Fintech. Many of our African brothers and sisters don't have smartphones, these app base are really getting to probably the middle to the top end of the market segments, if you think about it from a consumer perspective. We've said, and I think I mentioned it right up front, that we think that there is a window of opportunity that we need to accelerate our own growth to be able to capture it as smartphone penetration comes in, and then people move quite quickly to the app. For now, more than half of our base is still on non-data capable handsets. Yeah. You do need the USSD technology, you do need the distribution capillarity, you do need the merchant ecosystem. The second thing, as Serigne has mentioned, what we're trying to build is an ecosystem effect. Kafui is a great example. She's using so many services. I mean, in another world, people say it's cross-selling. That's probably not a great word to use in today's parlance. Part of our strategy with the unicorns is that we want our consumers and businesses to use more and more of the services that we offer. Hence our point that we want to accelerate, because we know that more and more of our customers soon enough will get data capable devices. We need to have captured that market. We will move from USSD to app-based fintech with the evolution of our customers taking on more data capable handset. We're very aware of the competition, we think we're very well positioned, we'll move the technological developments and the data capable handsets as time progresses on. Yeah. Really provides perspective as to how you're locally relevant still globally competitive in terms of the needs that you were sharing with the subscriber base. Keeping with fintech, though, we know that this is quite an exciting event. You touched on it in the opening conversations with us this morning here, Ralph. I guess the big question that everyone wants to know is if there is potential for a fintech spinoff from the group, what impact that would likely have on the business? Yeah, I like to use the word structural separation from spinoff. Spinoff sounds off like we're hiving this thing away, and it's not part of our business. Fintech and FibreCo, let's stay with Fintech, will remain an integral part of our business. We're talking about it being structurally separated to better run it, to resource it, and actually to find partners that help us scale it, push the efficient frontier further out using our partners' skills and some capital. I don't like to use the word carve out and spinoff. It sounds like it's unimportant. It is very important for us. We're saying that the businesses are very different, and they need to be run separately, but obviously intertwined by leveraging the capabilities. Just to repeat, we focused on the structural separations in the markets. As Serigne mentioned, 12 out of 16 done, tick the box. TopCo has been set up. That we've done. We're creating the accounting separation and all the work where we can have the OpCo shareholding from group into the TopCo, and we hope to get it all done by the end of Quarter one, 2022. Yeah. Some detail was also shared with regard to specific markets like Nigeria, if I'm not mistaken, that does tie into a question that we have from Mazi Asset Management's, Jaynesh Bhana. His question asks, "Is the longer term goal for the Fintech arm to own a banking license or to become a full service bank? Or will banking be done through partnering with local banks? Yeah, that's a great question. It has a couple of layers. We are not trying to be a bank. I think it's a very important part. If you go to a market like Ghana, we work very closely with a host of banks. Fidelity Bank is one that we work with. At the local level, we work with banks, and depending on the license, we have to keep the float balances with banks. We don't sit with it, and we share in the economics of that. At the topco, what we basically want at the topco is just those very specific assets that we believe can be leveraged into the opcos that I spoke about. The IP, we're using the Ericsson converged wallet as the platform across all markets. When Ericsson partner with us, they'll partner with us at the topco, and then we'll take the services right through into the operations, the partnerships, I used the Mastercard example earlier on. Something like Nigeria PSB license is a banking license. There are a variety of licenses, and I think Serigne showed that in the chart that some are bank-led, a few, but some mostly are telco-led. We'll take the appropriate license, but there's a level of risk that we would be willing as MTN to take. After that, we actually start partnering with banks, and a lot of the partnerships with banks are in the opcos. Mm-hmm. Makes a lot more sense in providing clarity as to where we stand there. Serigne, let's come back to where the various unicorns that you touched on. There was the wallets, insurance as well is one of them that I know we'll also focus on in just a moment. There is a question here that actually asks, in terms of the future of the fintech business itself, is the plan then to actually separate some of these unicorns, eventually in the long term? The answer is no for the moment. We are building, as I explained earlier, 5 unicorns in one business. Those businesses complement themselves. If you look at Kafui again, she's using a wallet to transfer money. She got a loan, to increase working capital to really accelerate her business. She's insuring her business with Insurtech, and she can send money abroad with international remittance. We think that today where we are, we need really the businesses to be together and to leverage on synergies between each of them to be able to accelerate our plan. If you remember when we started fintech, it was embedded within the GSM business. When it got real maturity, we started talking about structural separation. It is the same here for the moment. We think that they need to be together, maybe tomorrow when one will need for license purposes or something else to be separated, we'll do so. For the moment, we are building them together. Valid point there. There's another question that we have from Alistair Jones. He's from New Street Research, this question is focused on one of the unicorn elements being Ayoba specifically. 5 million Ayoba users to date. Are there any markets which stand out as major contributors to this 5 million subscriber base? If so, can you explain why some markets have embraced Ayoba better than others? Yes. Today, we can talk about three markets, South Africa, Nigeria and Ghana, where we have more customers. We do believe that, in all our markets, by end of this year, we'll have good penetration when it comes to Ayoba. As what I shared earlier- we have a strategy with three steps. The first one is really building the enablers to really make sure that we solve the basics. We match the top world-class messaging and live platforms. The second one is really to improve them, the third one will be to leverage. We are on our way implementing our strategy. We did lot of progress during the last first, three to four months in this year, we think that by end of June, we'll finalize the first phase. The second phase will be finalized before 2023, we believe that we are on our way building a customer base on Ayoba, to reach more than 19 million by end of this year. Quite substantial in terms of those growth targets. There's a lot of excitement that's come through from our members of the investment community, and I will keep going with many of their questions. Some will also be follow-ups to what themes that we did touch on slightly earlier- in terms of the strategic separation- Yeah using the right words, of fintech. I want us to address a question from Ziad Jussab of Nedbank. This question asks, "Based on the Digicept revenue ambition for the 2025 in the slide that you presented, payments and e-commerce is the largest incremental contributor of growth in absolute terms. Could you outline in a bit more detail the key drivers for the rapid scaling of payments and e-commerce? maybe to come back on that. BankTech lending will be the biggest contributor in term of growth. E-commerce and payment also is very important. How we are building our payment and e-commerce is that, first of all, there is an aspect of leverage. We have more than 47 million customers today actively using our mobile money platform. We'll end the year with 60 million. We have a merchant base of more than 500,000. We'll end the year with 1 million. If you think about it, by end of this year, you'll have here a customer base of 60 million, merchant base of 1 million. If you put together in between them a platform which will enable transactions between that merchant base and the customer base. The customers will be able to shop online using our mobile money infrastructure. The merchant will be able to expose their product and services online. We think that that product we are calling MoMo Market, that we are piloting in Ghana, will be the biggest e-commerce platform, or I like to call it enabler in Africa. You will really leverage also on our wallet. Today, the e-commerce platform in Africa, they have two major problems. The first one is branding. They spend a lot of money communicating for people to know about their brand and to trust them. As you know, MTN is the most trusted brand in Africa- Yeah We don't have a problem, we leverage on MTN branding. The second one is the rate of return is very high. When people, they order, the product comes, and they don't like it anymore, and they say, "I'm returning it," and the cost of just that is very high. Us, we will not have the problem, because we have a wallet, and we build around that so that we secure the money in a account, so that when you buy something, we don't, and the customer, when the customer approves, then we move the money, and we are leveraging. Also the third point is that we'll be leveraging a lot on our distribution network. Delivery is a big issue. Yes. People will be able to go to our distribution agent network to collect and point of collection and everything. We think that MTN, we have big assets to leverage on, also we think that on technology-wise, we'll be announcing something maybe in the next three or six months, and a major partner will be working in also, with to build really and accelerate our e-commerce and payment business. That's quite substantial. Addressing the needs of both businesses as well as consumers from all particular segments, and as you say, having conversations with the right collaborators to enhance this. We're looking forward to the news that will be announced there. We have several questions that do want to build up on themes that were highlighted earlier, Ralph. We did talk about the strategic separation of the fintech assets. This question asks, "Ralph, do you need to list the fintech business separately for it to be value enhancing? Would you not be giving away the value prematurely?" That's the question. No. 100% agree with that statement. We are very careful about this concept of listing. We speak about structural separation, and then, kind of value reveal. That does not need to mean listing. We will be very patient. We want to take things step by step, structural separate, create the topco. Topco's got the right assets, right relationships with the, bring in some strategic partners, and at that particular point, they may bring some capital. As I said, we will maintain a control position, and then we'll apply our minds, is there a listing needed or not? We're not obsessed with this listing idea, but we are around kind of creating the clarity around the operating model and also the value reveal over time. Listing is, as Serigne has mentioned, is not something that is super occupying our minds at the moment. We'll take our time to get there, and we'll ultimately make a decision to or not. I don't think investors must be thinking that we want to do something prematurely. I mean, as you know, one of the big opportunities in a topco structure will probably be Nigeria. If we list prematurely and Karl has not secured a PSB, I think we'll give a lot of shareholder value away. We're not obsessed with the listing part. Fantastic. That does address a question that we had, a follow-up as well. In terms of that opportunity within the fintech space, they asked whether we make acquisitions or consolidate. Are there some other opportunities with other players in the opco markets, and would it be possible for the MTN Fintech to buy any of the already approved PSB licensees in Nigeria? Perhaps in segueing that conversation, to look at Nigeria. New opportunities specific to the Nigerian market where PSB licensees have already been approved. If you were to partner with an existing PSB, you still need to get the Central Bank of Nigeria approval. It looks like a way to kind of accelerate, but it really isn't. The Central Bank of Nigeria, the governor would still need to approve that. As Carl said, we're patient around that. Carl is spending a lot of time trying to put up our position forward. As he said, I think what is becoming patently clear is that, the country is lagging in financial inclusion. To deliver that financial inclusion, right now, the best form of it is kind of the mobile network operators because of the capillarity of the distribution that they have. We'll be patient on the PSB. On the opportunities to acquire assets to accelerate, we'll apply our minds. As I mentioned earlier on, we're going to see a transformation of mobile money that is USSD driven into an app-based. That journey between now and 2025, I think will be very interesting, around the opportunities for partnering. We don't have solid plans exactly about which type of opportunities they'll present, we've done our own scanning. We know in each of the regions what the apps are. We're applying our minds to that doesn't make the investment case for now. Mm-hmm. There's a lot that investors want clarity on, I guess going back to the strategic separation of the Fintech assets. Alistair Jones from New Street Research also asks, "When or if you sell your stake in the Fintech businesses, will you use the proceeds to reinvest in the business, or will it be used to pay down holdco debt? Yeah. I think investors think we wanna pay down all the debt to zero. We know that there's an optimal mix of capital. To be clear, the asset realization program is what we use for deleveraging. Any investments are used to accelerate growth. Whatever proceeds call them X, that come with bringing in partners, they're used to actually drive the growth of the business. We've got to use other people's capital. We've got to be smart. You don't have to always use your own capital to improve returns and to sponsor your own growth. It's purely for accelerating those particular opportunities, particularly on the Fintech side. As we heard, Sulu did give us an overview regarding. Yep deleveraging and the opportunities. Yep that will be capitalized in that particular regard. Yeah. Lots of excitement that's come through, and it seems as though we're going back to the MoMo conversation, and themes that we'd like to explore there. Perhaps you can both build on this response. They'd like to hear if you can discuss the merits and risks of open architecture in the MoMo business. Yes. Thank you very much. We do believe that open architecture is more an opportunity for us, and we have been pioneering on that domain. Two years ago, we've launched our OpenAPI platform. If you go into the internet and you type momobusiness.com, you will see that you'll find a portal where you can discover all our APIs. You can download documentation around it, and you can build your own services. When you are ready, there is a sandbox, you can test them. Then you can download the contract, sign them, and we'll just sign them, and your service can be live in less than one week. That whole process for a new partner used to happen in six months, one-year timeframe. For us, we think that we went into that because it is helping really to accelerate our business. To make it easier to partner with people. Remember, we are moving from a mobile money service provider to an open platform and platform business. To do that, you need to make sure that you enable also your partners to work with you and in a much, much easier way, and it is what we've done with OpenAPI. We have been very successful on that. Last month, that OpenAPI platform, we did have more than 10 million API calls. I think that now we are one of the biggest API platform. We have the biggest API platform in Africa within our mobile money business. We do think that it is an opportunity, and, maybe I will let Ralph also talk about interoperability and what we are doing also in opening our ecosystem. Yeah, thanks, Serigne. I think if you look, across your lens, three, five years out, I think if you look at this Fintech space, interoperability will have to happen. Today, you take MoMo currency, we've got competitors like Airtel, et cetera. If you want to increase the velocity flow of money, we will need to be able to take MoMo units and convert them into Airtel units or Safaricom units. Because what we're also building is remittance corridors. What stops a person sending money from Ghana to Kenya- within that Fintech space? Our view is that interoperability is inevitable. Firstly, because the customers will demand it. I think also to entrench the Fintech space in the way that we see it, is we're going to have to collaborate with our competitors. There's the old adage of compete and collaborate. In some of the work that we've done in the last couple of years, I think it's well understood that we've set up Mowali as the interoperability opportunity. We started working with Orange, we're seeing some good traction there. We're encouraging other MNOs who've got mobile money businesses to come in, we've had some very good discussions pretty much in the last couple of weeks that we're trying to bring them in to create Mowali. Mowali will not be run as a for-profit capability, but to increase the flow velocity in that system. We see it as an opportunity, given our scale. We don't see it as we lose out on that. We're preparing for that kind of open architecture world, which is imminent in the next couple of years. We've touched on a number of the unicorns, which have certainly been well-positioned for growth. MoMo specifically, Ayoba, a moment ago we discussed. Let's talk about insurance and tech insurance, which we know that you've highlighted Sanlam and the strong partnership that has come on board there. Perhaps you can elaborate there, Serigne. I understand that there might be future developments that we can also delve into, Ralph, in just a moment. Sure. I talked about it during my presentation and how we think that Sanlam will help to accelerate our insurance strategy and scale. Maybe I will let Ralph to talk about it. Firstly, we just want to acknowledge MMH, who we've worked with the last four years to create a very decent business in insurance. We've been operating in three markets, just under seven million unique customers. Given their own strategy, and our desire for a different kind of strategy, we've agreed to buy them out fully. We've actually signed the pens on all of that and subject to regulatory approvals. The ink is dry on the paper? Yeah, the ink is dry on the paper. We're just waiting for the regulatory approvals to come through, and I just want to thank Hilly and Dumo and the team there for being constructive through the process. As we started to think about InsurTech, which we basically got the 11 million policies without too much sweat, to be quite honest. We started talking to Sanlam. They have a very good footprint. They're in 33 African countries. We have an overlap in 15 markets. Currently, aYo is three markets. With Sanlam, we'll do at least 15 markets, we're also thinking about doing insurance over the top. In markets where we're not, and some other MNOs are interested in such a structure where we're able to offer that capability in markets where we don't have a footprint. Essentially, we are kind of very well progressed in discussions with Sanlam around them working with us to take over the aYo platform and scale it across markets. Today, we talk about seven million customers. I think you saw it on Serigne's chart. We think we should get to 33 million, providing very micro-insurance products that work for the market. Your traditional insurance products. I think there's also a big opportunity, particularly in South Africa, that we haven't really exploited fully, which is device insurance. It's a big opportunity with one of our competitors. Nothing stops us, with a 10 billion-plus device book to actually leverage that opportunity for further insurance. Some interesting stuff there. Just trying to complete our process with Sanlam, I think you will see InsurTech being quite a scale business going forward. Quite substantial, given the numbers that you did quote. Is this a clear example, then, of how collaborative efforts make it easier as well to manage the regulatory landscape, given the access- Absolutely to markets and of course, the consumer needs that you're trying to address? No, absolutely. I mean, this is a clear example of partnership and capital because we can only get to what one might call an efficient frontier with our own capabilities so far. But with smart partnerships and capital, we can move that efficient frontier because we don't have to worry about all the underwriting, claims processing. Serigne and his team don't really wanna do that. But- They do the fun stuff, Ralph. They do the fun stuff. That's what we really need to be saying. The back office, policy admin, simplifying the system processes, getting the economics to work. I mean, a partner like Sanlam, they do that in their sleep. Okay? Yeah. What we do in our sleep is to get to the customer. I think the combination of partnership and managing risk and capital investment, as I said, I don't wanna always use my own capital. You've got to be smart about capital allocation, and sometimes you use other people's capital to kind of enhance your returns, and I think that's the conversation we've been having with Sanlam. Very, very excited about that initiative. A few things to close out there, but I think we pretty much found each other, and I think there'll be more to discuss in coming weeks. We'll close it up with a financial question, one that does come from Benguela Global Fund Managers. Idumelen posing the question regarding EBITDA margins. He asks, "What sort of EBITDA margins is management targeting in 2025 for the Fintech division? Where are we currently running at?" Perhaps you could give guidelines there. Yeah. I mean, I anticipated that question, but I've said to my team, I really don't like talking about EBITDA margins for Fintech. It's a telco mindset. The more we talk about EBITDA margin for Fintech, I think the more we regress in thinking about it as a telecommunications product. It's not. If you were to say to yourself you've got 45% EBITDA margin, the question you'd ask yourself is, "What is the CapEx intensity of it? Okay. I think what's more important, I think GMV, focusing on that metric going forward is gonna be important. I think you gotta go all the way down to free cash flow, because this is a capital-light business. Okay. Unlike the telco. When you say 45% EBITDA margin, yes, you're gonna ask, "But what's the CapEx intensity, and what is my free cash flow margin?" This is a high free cash flow margin business. If I say to you 45%, you're gonna say, "Well, actually it looks like telco. I'm comparing with the telco product." I think it's the wrong positioning. We will continue to show the performance that Thato forced us to show with our full-year results on Fintech. I think people are gonna take the numbers all the way down, and you'll see that. That's one of the reasons we talk, as you heard from Tsholo, we feel relatively confident about the CapEx envelope. The Fintech business is growing fast, but it's not consuming the same amount of capital. As we said, we're gonna use smart partnership capital as well to accelerate. Take your 45% if you want to, but I'm saying that's the wrong thing to think about with respect. This is a much lower CapEx business, as I said, we're gonna use partnerships going forward. We're looking forward to it, Ralph. I think there's certainly lots of excitement and growth opportunities that we can anticipate from yourself and Serigne in this particular regard. Of course, there are more lives to be changed, where there'll be many more multiples of examples that we can share regarding how businesses, merchants, and of course, new entrepreneurship streams are developed by using the platform. Thank you so much. We unfortunately have to wrap it up there, but we have certainly seen quite a stream of questions come through regarding Fintech, lots of excitement and opportunities in this regard. Thank you so much to you both, Ralph and Serigne. Thank you. for giving us your time today. Much appreciated. Thank you. Thank you. Well, we move on to our next presentation. Where Acting Executive of the Enterprise Business Unit, Tumi Chamayou, will be taking us through an overview of enterprise services. After this presentation, though, Group COO, Jens Schulte-Bockum, will also join Tumi and myself for a Q&A session again. Thank you very much, Gugu, and greetings, everybody. Let's talk Enterprise. As a business enabler of choice in Africa, we realize that continuous investment is paramount to ensure that MTN's Enterprise business solutions are able to meet the communication and ICT demands of business clients. EBU is a ZAR 16.8 billion revenue business, contributing 9.4% to MTN Group's total revenue. The bulk of this, at 75%, is derived from mobility services. From a segment perspective, we've seen equal contributions from the SMEs and domestic large enterprises and multinationals, better known as MNCs. Total EBU revenue is highly concentrated, with 88% of contributions from our top seven markets. Since we last spoke to you in the last Capital Markets Day, we have continued to see good growth from the business, which is largely driven by the enhanced focus on stabilizing and building the EBU business, and the strong performance from Nigeria, which Karl took you through. Our strategy has been paying off. Over the past year, we reported nearly 60% increase in revenue from the MNCs, an excellent performance. We have now established a center of excellence for converged services in South Africa, and the MNCs are now serviced by a central team. Over the next few years, we aim to almost double the revenue contributions of this business to over ZAR 30 billion per annum. We believe this is possible given the changes we have made in the back end, but more importantly, the significant market opportunity. I'll explain how we will deliver on this target in the next few slides. Before I take you through how we will win in this, I thought it helpful to unpack the opportunity for you a little bit more. It is clear that given the enhanced technology use, there are sizable opportunities, particularly in the converged ICT space, where we anticipate closer to 50% growth in cloud and unified communication services. We will chase a sizable portion of this market by positioning our managed services networks, IoT, and our cloud solutions. We will also continue to deliver our mobile and fixed enterprise offerings, and strive to maintain market share in light of a somewhat flattish growth outlook. As a business, we are already positioned to enable us to harness the available opportunity in the converged ICT space. As a start, our advanced network and deep customer knowledge across the continent means we are second to none from both an infrastructure and a market knowledge perspective. Our strengths include our end-to-end operational processes as well as commercial capabilities reflected through an extensive B2B commercial channels. The scale that we have also puts us in good stead, whether from a number of clients' or operations perspectives. We have demonstrated our delivery on a number of different mandates, some of which I will share with you on the slide. What you will see on the left-hand side is an overview of some of our hero stories related to the end-to-end solutions we provide to our SMEs. These leverage off existing capabilities, including MoMo-enabled services, access to banking, and seamless digital payments. We have provided future-proof, tailored connectivity solutions to these SMEs to address issues that were brought on by the pandemic, such as work-from-home connectivity. Further to this, we have provided clients with digital skills program, access to thought leaders, and MTN's internal dedicated support teams. On the right-hand side is a large enterprise example where we drove a leading food and beverage multinational's software-defined wide area networks rollout, better known as SD-WAN, across 12 markets in Africa. This was delivered in collaboration with GlobalConnect team and enabled the client's Africa zone team to lead the charge versus other regions, including Europe, North America, and Asia-Pacific. This is a first-of-its-kind solution globally, one that we plan on replicating as more customers move to cloud-based services. A dedicated center of excellence has been created to adapt to the new model. In order to replicate these types of successes, we have developed a center of excellence which is based in South Africa and services the group. Having the center in a single place enables us to be agile and nimble while retaining the ability to scale and service group customers. It will enable us to evolve with the industry trends as a service solution, improving customer experience through customer analytics, edge computing, and artificial intelligence learnings. The portfolio was formed on adjacencies with minimal investment. The center of excellence will further enable us to both scale and attract top talent, leveraging off MTN's existing strength as an admired brand. It will help us to also accelerate execution through our engagement with our partnership ecosystem. We are building on an extended portfolio, going beyond mobile and fixed services. We have made a concerted effort to dedicate ring-fence OpEx and CapEx financing hosted in the center of excellence to ensure development of the new products and service lines. We have in place a number of interventions to manage our risks. These include leveraging off our center of excellence to be the unit of shared skills, on-the-ground engagements with regulators and the OpCos to manage regulatory challenges, group-wide guidance frameworks to ensure data sovereignty, and business continuity propositions to manage the impact of COVID-19. Our Ambition 2025 is to grow the enterprise business unit's contribution to over ZAR 30 billion in revenue. We will achieve this by leveraging off our existing enterprise channel, cross-selling converged services into connectivity accounts, and establishing a center of excellence for converged services in South Africa to position MTN as the leader in the African ICT space. With that, ladies and gentlemen, that's our Enterprise story. Thank you very much. Well, Dumi has really given us some color and some detail into the growth ambitions as we head to 2025. Of course, also going to help us understand more about the particular strategy and how it will be implemented to reach these targets. Jens also joins us back on the line, through the power of technology. I don't have audio. He'll also add more of details to this particular conversation. Jens joins us on the line. Welcome, and thank you for your time. Dumi, thank you for your time and availing yourself for this interaction and opportunity to really get further detail into Enterprise and the growth that we've witnessed here. I guess let's actually start there by perhaps giving more detail, if you can add more color, on the growth as well as what it is that we've done to accelerate the performance of the Enterprise division. Thank you very much, Gugu. I think it's a very exciting journey that we've been on, especially in the last three years. One thing that maybe I can just start to frame, let's say, the picture in which we're in. From around 2017, 2018, 2019, we've really put strategies in place in order of really solidifying and putting in place a solid platform of which we wanted to grow. Some of the elements that we did was really making sure that we are solidifying our commercial capabilities, looking at our operational efficiencies, and really putting into place certain go-to-market strategies. Maybe let me start with the first one when it comes to our commercial capabilities. One of the things that we've seen is that it is important for us to ensure that we've got great go-to-market value propositions. Looking at them from an SME perspective, also from a large enterprise perspective. When it comes to the small, medium enterprises across the continent, there are roughly around 40 million SMEs across our footprint. Only about 4 million of those are actually our customers. One of the things that we had wanted to do was really ensure that we are having adequate sales coverage, really working with channel optimization, and ensuring that there are strong customer touch points, whether it's from in stores, whether it's telesales, whether it's also from an omnichannel perspective. We've done quite a lot of work with regards to various channel partnership programs that we've rolled out across all of our footprints. We've really also brought in place various capability and technology partners that have helped us also accelerate some of our value propositions. In addition, we've also made sure that we professionalized our sales force through an initiative that we did in the sales academy. That has helped us to really accelerate the MTN sales story, really let the market understand what value we have to bring, and really also bring some confidence to the market that MTN is really there to help them solve their challenges. If I can pivot over also to the large enterprise space, which is a much more professional, let's say, a professional environment in terms of how they consume. We also started off with our sales force, making sure that they also understand what MTN has to bring to the customer's issues, really understand customers' pain points, and also make sure that we are solidifying our own value propositions from an end-to-end perspective. Not just selling products, but also bringing a wider range of the value that we also bring. If I can pivot also to the operational component, the key thing here was really about customer experience. How do we improve customer experience? How do we improve our processes, our systems, and also ensure that the customers have a pain-free engagement, a pain-free experience with MTN? Those are some of the examples. I can go for some time on some of the initiatives that we've done. That just gives you a snapshot of what we've been engaging. That's quite substantial, the investment in people first, both internally to meet the customer need. Correct at the end of the day, hence the growth that we're witnessing here. Perhaps you can add more color as to a market overview in terms of where the potential and the opportunities do lie, and how it is that MTN hopes to take advantage of these opportunities that exist in the market. Maybe just piggybacking off that discussion that we just had now. We've seen some turnarounds in some of our key markets, South Africa and Nigeria. That was discussed a little bit earlier with Godfrey and also with Karl. In 2019 to 2020, we Sorry, 2018 to 2019, we saw growth of about 9.3%. From 2019 to 2020, that growth was accelerated at about 14.3%. We foresee that this growth will continue due to all the foundational elements that we've really put in place. Our ambition is to grow at accelerated growth of about 30%. Sorry, to ZAR 30 billion by 2025. Some people can say that's really aggressive. We really feel that we have done the basics. We've solidified the foundation. Now we want to grow at the stack really make sure that we are helping our customers to really understand some of the other peripheral offerings around machine learning, AI, cloud offerings, in order to help them as enterprises to really help themselves solve their own customers' issues. Makes sense. Tumi, it's quite exciting to see the growth prospects that exist. As you said, you've got what's required within the foundation to ensure that this growth is possible. I'm keen for us to reflect as well, and perhaps this is a question that both yourself and Jens can also build on. The impact of COVID, on the enterprise environment, has that made it slightly challenging, maybe specifically in the last 14 months, as working from home has been quite prevalent in many markets? No, absolutely, Gugu. I think if you can look at COVID was detrimental to almost all of us. It was detrimental to societies, to families, but also specifically to enterprises. As I mentioned, the number of enterprises within our own footprint is about 40 million. 80% of the workforce are employed by the SMEs. When the lockdowns happened, a lot of them were impacted. One of the things that we did, and I'll use an example from Nigeria, is that there was a program that was run called REV. The REV program really tried to help these small and medium enterprises to really deal with a number of issues that are normal outside of COVID, but in COVID, they are accentuated. If you think about access to market, how do they now deal with their own supply chain issues? We used our digital platforms, particularly in some of the things that Serigne spoke about earlier, when it comes to the Ayoba platforms, and really helping them to understand that we've got more to offer than just connectivity. We also try to help them in terms of understanding how do they also engage some of the MoMo Business platforms. Access to payments, access to banking services, and really also, again, as I said, given the wealth and the breadth of what we've got to bring, and also helping them go up the stack of our converged services. Which is really something that we're building in the Center of Excellence that I spoke to you earlier about in the earlier session. That really helps them to understand our offerings around security, cloud, and how do they future-proof themselves. It is important that in times of uncertainty, that enterprises, whether be they small or large, make sure that they are future-proofed and take advantage of the technologies that are in play. Last, definitely not least, is really access to skills, access to learning. How do we, as MTN, really help them? COVID-19 was a rude awakening for all of us, particularly in the enterprise space. That is one of the reasons why we're so well invested in making sure that we help the enterprises weather the storms that may come today and possible storms of the future. That light during uncertain times. Jens, perhaps you can also add on to this particular question. Maybe as a build. I think Tumi is 100% right that COVID-19 has posed some short-term challenges. Also in terms of payment behavior, bad debts, I think we've managed that very carefully and quite successfully. The businesses have navigated through that phase. I'm more optimistic as to the longer term effects, COVID-19 is forcing companies to accelerate their digitization, that's ultimately playing to our strength. It's one of the reasons why we want to get much more forcefully into the ICT side of the business, hence the Center of Excellence that we are building. What gives us the confidence is that we've seen over the last three years that if we show up, if we get the basics right, we can turn the business around. We've already shared some numbers. I think if you look at the South African market, MTN EBU in South Africa, the enterprise business unit, was in negative growth only two years ago. We are now growing double digits, mostly on the back of connectivity. We have the confidence that if we now build the more sophisticated product suites on top of that, we can further that growth and accelerate that, and also bring that to the rest of the continent. That's very important. Speaking about accelerating growth as well as accelerating opportunities that might exist, a question, I guess, that can be directed to the both of you, from Ziad Jussab of Nedbank. He asks, "Given your network leadership in South Africa and other markets, what are your thoughts on in-market acquisitions to accelerate scale, improve market share, and acquire important skills, similar to what multiple global telcos are currently doing?" Perhaps if we could flesh that out, starting with you, Jens, and coming back to you, Tumi, for further perspective. It's a good question. I have to be honest, we don't have any imminent plans, but it's something that we are reviewing. Clearly, as we're pushing into new capability domains, it would be quite prudent to accelerate that with targeted acquisitions, particularly in ICT. They also need to be manageable. We need to be able to digest. We need to make sure that these are a good fit to our existing customer footprint, our sales capabilities. I think we'll be very disciplined at looking at potential candidates. 100%, if you look at areas like security, if you look at IoT, if you look at unified communications, I think we'll need a blend of partnerships and potentially acquisitions to accelerate our own offer portfolio and make sure that we stay at the forefront of developments. The one other element that I wanted to maybe add to that consideration is we're also looking very carefully at potential partnerships with the so-called hyperscalers. If you look at the likes of AWS, Microsoft, Google, Alibaba. These folks are building massive cloud capabilities, and they are also on top of that, they are developing a suite of enterprise relevant services. What they don't have is capillarity of distribution. They don't have the integration capability with the connectivity side that we have. That's also very attractive for us to basically leverage our existing enterprise business system as a partner for the hyperscalers, and that's another direction that we're looking into at this stage. Again, I can't disclose any results of that effort yet, but rest assured that we are working very hard to structure the right relationships in that domain. Conversations are taking place, details to be shared at a later date, makes complete sense in terms of the relationships that need to be established and seeking those areas of great partnership that can be executed. Your thoughts, if you'd like to add on to that feedback, Tumi? I think also maybe in one of the elements in the question was really around skills and how we basically going to be addressing that. We do understand that this is obviously new areas that we're getting into. The skills are quite scarce in this space. As Jens alluded, we are working with and we plan on working with an array of different partners in the system. Obviously, there will be some transference of various skills. We plan on taking everybody along on the journey. We want to start obviously internally with our own sales force that we have. Through our sales academy, there's a strong concerted effort in terms of not just ensuring that we professionalize our sales force, but also bringing on the external sales teams, the various channels, and really increasing that knowledge across the base. It will not just start with internal MTN people, but it'll go into the channels, but also into the broader communities. That's really one of the things that we're seeing as a flagship program going into the future. That's quite important, perhaps takes us back to one of the closing slides that you had in your earlier presentation, where you did allude to some of the challenges that might hamper some of your growth opportunities and ambitions there. Are you able to share some details as to how it is that MTN looks to navigate some of these challenges, despite them being quite prevalent in the market? No, absolutely. I think one of the things we can all agree on is that we are all very hungry for change. We're all very hungry for things to change. Speed is obviously the name of the game. It's not really just about looking at competitor forces, it also has to do with the fact that, this continent is really dire and it's needing a lot of solutions to come through. These will come through the enterprises. It'll come through the entrepreneurs. It'll come through the tech startups. We want to really be part of that journey. Our own internal engagements and how do we fasten that speed, we've got great leadership at play here. When you hear what Ralph spoke about, what Jens is speaking about, there's a strong concerted effort to make us really move fast. The second element that I can talk to you about is that what we've just spoken about is really access to these high talent individuals. Our brand, we've got this great brand strength. Everybody is really looking at MTN as one of the leaders. The hyperscalers that Jens spoke about are all very keen to work with us. We're trying to mitigate that as well in terms of how do we accelerate those conversations. The third component is really to do with our customers. We spoke about COVID and the need for digitization. With these challenges that people can't predict, it is important that they look at their overall business architectures. They look at their overall technical architectures and really think about how do they improve their own customer experience, how do they digitize their own flow of how the supplying chains work. How do they also improve their own customer experience? A lot of organizations are being disrupted. We believe that some of the solutions that we will provide will really help them in bridging some of those challenges that they will get. We see them as challenges, we also see them as opportunities. Yeah. Always opportunities within the market. I would like to build up on some of the themes that have been shared in terms of Ambition 2025, and the key focus specifically regarding shared value, and ESG, which we will discuss after the segment, that play a very pertinent role in how it is that we roll out the strategy. Perhaps if we can start off with you, Jens, to talk about how the influences and the service that you do provide to your customers does have a clear impact on how businesses are able to be economically active, and sustainable in future. Also then translating into economic opportunities for many more citizens right across the continent and on the ground. Perhaps if we can expand on this and how it really does speak to the pillar of shared value within Ambition 2025. Yeah, thanks, Gugu. I love that question. I'm extremely passionate about what we can do on the continent in terms of offering new opportunities for customers, but also for employees. I've been absolutely fascinated by the speed at which MTN can act. Just building on some of the comments that Tumi made just a minute ago on skilling. We now have a number of examples inside the company where we started from very limited resources and expanded it just by injecting a little bit of talent, bringing bright, young African talent in, scaling things up. I'm thinking of the CVM opportunity, customer value management, based on data analytics. We had nothing three, four years ago. Now we have about 200 practitioners sitting across our markets, data scientists working on these type of opportunities, also active, of course, in the enterprise space. We talked about what we're doing on the fiber commercialization in an earlier presentation. Again, we had no external sales three years ago. Now we probably, of the new sales, we probably already have 50% externally, and only the other half then internally. These opportunities abound. We are pushing into new spaces, so there is an internal component where we can create our own ecosystem. Later, my colleague Charles will talk about, of course, the technology roadmap and also Chenosis, the API marketplace where we can stimulate the developer ecosystem. What I've learned, probably I can say that with the authority of an outsider, is that Africa has a fascinating opportunity of young talent that can come in, and at the same time, where we offer now digital services, particularly to SMEs, and the payment services that a minute ago Serigne talked about, we can create entirely new value chains for companies that take them literally out of the physical marketplace into the digital marketplace overnight. That's what I'm passionate about. That's why I think that intersection of the technical capabilities that we have and the go-to-market that we can build in all of our markets with the talent of young, high-energy people we have in our organization, that's just the dynamite mix. I'm deeply convinced that this will be at the core of societal development in Africa for the next few years. With digital inclusion and financial inclusion and enabling business productivity, we are touching on arguably the three most important development drivers of the continent. We're looking forward to these exciting changes that are quite imminent and part of the growth story. Thank you so much to you, Jens, for joining us virtually for this conversation, and yourself, Tumi, as well, adding more color to the detail regarding how Enterprise is certainly going to forge forward and meet the needs of customers through the investment it's made internally with staff and, of course, meeting the needs of their customers. We now shift our focus to IoT or the Internet of Things. It is certainly a significant opportunity to change lives. MTN South Africa's Enterprise business in South Africa has invested in the telemetry and network infrastructure to enable IoT applications for its customers. Let's take a look at this video. After it plays, it will not only give us more perspective and detail into how these changes are taking place on the ground, but when we come back, we'll get ready for our final session of the day. Curo Medical is a digital health company. We have pioneered South Africa's very first technology-enabled hospital-at-home solution. What technology like this means for South Africa is a fundamental transformation of healthcare as we know it. Really what this means is that, one, we improve geographical accessibility to healthcare, but also improves our financial access. How it works is we leverage various wearable biosensors. What they do is they collect patient vital signs and transmit that data to a POPIA-compliant cloud. The data is then visualized by a team of healthcare professionals minute by minute in real time, 24/7. We then combine that with a clinical component, which is visitation by healthcare professionals for the first three days that a patient is in our care, and then we will gradually deescalate care as the patient begins to recover. For our solution and our technology to work optimally and to be safe for patient monitoring, we need connectivity that is reliable, and we need to minimize prolonged disruptions. We provided a made-for-business data solution, basically that facilitates the connectivity from the end user or the users of the Curo Medical solution into their servers, with a seamless connectivity. We chose MTN as a connectivity partner because of its reach, right, also the enthusiasm with which they embrace technology. It was a no-brainer. Ladies and gentlemen, we will now take a short comfort break and return at 20 minutes past 2:00. That's 20 minutes past 2:00 for return. Ladies and gentlemen, we will be starting shortly. Welcome back to the MTN Capital Markets Day, where we're taking a deep dive into MTN's Ambition 2025 strategy. We've been absorbing a lot of information throughout the day, and certainly hope that you've got a better understanding of the different aspects and up close of the business that are quite key in terms of striving this strategy. Well, to kick off the final session for today, MTN's Group Chief Regulatory and Corporate Affairs Officer, Felleng Sekha, and the Group Chief Risk Officer, Ferdi Moolman, will take us through how MTN will navigate the risk and regulatory environment through the Ambition 2025 journey. We're continuously working on improving our governance structures. As part of this, we've refreshed our boards, we've strengthened the board structure by creating sub-committees so that we're able to focus on risk issues in more of a detailed manner. We've also implemented the Three Lines of Defense Risk Management Model, and this model allows us to identify risks easier. It improves communication both to the executive as well as to the board. It also ensures a focus on more of a risk culture approach in the company. To give you an idea of the three lines of defense, the first line of defense is really day-to-day management and operation of the company, identifying risks, putting controls in place. The second line of defense is risk management, and this is where we develop risk processes and where we also perform compliance tests. The third line of defense is internal audit. Of course, it is important to ensure that internal audit is independent, and on this basis, all the various internal audit departments report through to the audit committees, and the audit departments also have a functional reporting straight into group. We work in 21 diverse countries in a highly regulated environment. Because of our size and the industry we are in, the governments very often see us as a source of government revenue. Of course, it is important to pay our taxes and our levies when due. More important is stakeholder management. In terms of stakeholder management, we now have an International Advisory Board, which is a board with non-fiduciary responsibility, and the board basically advises the group board in terms of international issues. We also have a stakeholder management plan. The stakeholder management plan deals with identifying people that we need to relate with and the message that we need to pass across. In terms of corporate social responsibility, this is also important and a focus, and with the ESG getting more focus, I think the move will be more towards pushing ESG. The next risk, I think, that is important is the fact that we are moving towards a platform business. In moving towards this business will change the risk profile that we have, and we anticipate different risks becoming more important. I think also taking recent activity in the market that we've seen in the U.S. with cyberattacks, denial of service attacks, these type of things, I think the next most important risk is probably around cybersecurity. The main challenge is that it's ever-changing, and it needs constant monitoring. It's also important for us to gain access to experts in the field, not only experts that understand the political landscape, but experts that also understand technological development, as well as global logistical challenges that we face today. Specifically on the Middle East, our approach is the same as all our markets. We conduct our business in a responsible and compliant manner. As part of Ambition 2025 and the group's Pan-African focus, we have announced that we will exit the Middle East markets in an orderly manner and phased manner. Of course, this also takes into account our risk framework and considerations. Cybersecurity has always been important even more so as we move into Ambition 2025, and we move into the platform business. The digital landscape is consistently changing and cyber threat is also changing along with it. We have identified this as a major issue to address. We've allocated CapEx to improve and strengthen our security controls, and we're also consulting with experts in the field to ensure that we are able to address the risk appropriately. Nigeria remains a very exciting market, and there's a lot of opportunity in Nigeria. We've taken a number of steps to reposition the company. We've broadened the shareholder base by listing. We've refreshed the board. We've created subcommittees of the board so that we can focus on areas of importance. We've got a very strong, experienced team in place in Nigeria that understands the nuances of the market. We want to work towards a partner to solution-type approach. An example of this is where we open up our network for sharing on a national roaming basis. We promote the active engagement of our opco teams in the development of the regulatory frameworks and structures to ensure the requisite participation and understanding of goals, processes, and procedures. Common KPIs set at group and cascaded to opcos are reviewed over the course of the year. At group level, we also follow up with opco teams as they implement to ensure compliance and the early identification and mitigation of gaps and issues. This enables us to provide necessary support and assistance to opcos in meeting their KPIs and addressing key risks and issues envisaged and as they arise over the course of the year. We also have effective and proactive issue monitoring and management, both at group and opco levels, so we are able to quickly understand should there be a local issue. Here, effectiveness is measured through ongoing assessment and analysis of resolution of the risks and concerns that arise. MTN is the leading operator in most of the markets it operates in. We are committed to complying with regulatory prescriptions and ensuring that our conduct is fair and considerate. We are also committed to the promotion of effective competition and fair market practices. It's important to note that market dominance, per se, is lawful and legitimate in any competitive market. The ultimate objective of regulation is to foster effective competition, not to penalize market leadership. Regulators impose fines for anti-competitive conduct and abuse of dominance. Regulators also declare operators dominant or SMP and apply ex ante interventions. In other words, the interventions are imposed prospectively to regulate future conduct in the market. This is to prevent undesirable market outcomes. In this case, the intervention does not require fault on the part of the operator. This is the approach adopted in markets where MTN has been declared dominant. We have been declared dominant in nine markets, including, amongst others, Nigeria, Eswatini, and recently Ghana. These opcos have continued to operate successfully, fully compliant with SMP remedies such as mandatory national roaming, infrastructure sharing, price floors, et cetera. In all cases where we are declared dominant or SMP, the focus is compliance and research-based engagement to ensure that regulators follow proper process and apply industry best practice. Ongoing engagement with regulators and governments is key before, during, and after SMP interventions. Whilst litigation is an option, it's always the last resort. We are therefore extensively engaged with our policymakers and regulators in our markets, including Ghana, in order to support government efforts in promoting best practice. MTN is also continuously reviewing its approach, adopting self-regulation strategies such as proactive infrastructure sharing and access on fair commercial terms. We believe in the rights of all people to communicate, access and share information freely and responsibly, and to enjoy privacy and security regarding their data and their use of digital communications. We endeavor to protect the rights of all people using our services in their respective jurisdictions in which we operate. Most laws and licenses contain national interest clauses, which require operators to disconnect network operations or suspend services upon request or instruction from government authorities. Such clauses usually come into effect during periods of civil unrest. When obliged to take steps which might impact digital human rights, we apply sound governance whilst complying with the law. Our approach: One, the request must be in writing, it must be made in accordance with the law, and it must be issued by a legally authorized body or individual. Two, upon request of the order to disconnect or cease operations or suspend services, a notice is issued to all stakeholders, accompanied by a statement issued on all media platforms. Three, ongoing engagement with authorities to limit duration of the suspension of services. Four, we maintain a register and publish all service disruption instructions. We work continuously on the issue of digital human rights, and our efforts were recognized in the 2020 RDR Index, that's Ranking Digital Rights, where we made the greatest overall improvement of any company. We have developed a taxonomy of the 10 common regulatory risks that we track monthly, quarterly, and annually. The top three risks are license renewals and regulatory reform, which account for 21%. Consumer protection accounts for 17%, and competition regulation and SMP accounts for 16%. Unpacking this a bit, in terms of license renewals and regulatory reform, we have in place a license renewal playbook, which enables us to prepare for license renewals in advance, and we also conduct license fee benchmarks to guide license fee negotiations. Our research and insights team provides input into legislative, public policy, and regulatory developments as part of our evidence-based stakeholder engagement strategy. We also make inputs through global and local industry bodies. On consumer protection, these include issues such as quality of service, affordability, coverage, et cetera. We work closely with regulatory agencies, consumer advocacy groups, and we integrate all the feedback from them and from our reputation index survey for our remediation plans. In terms of SMP or market dominance, we focus on compliance and self-regulation. Those are certainly very poignant points that were made there by both Sadi and Phumzile for us to really get to understand the risk as well as the regulatory environment, which hopefully provides us with a lot more detail and an understanding as to how MTN Group is really navigating the many landscapes that it operates in. We shift our focus now to environmental, social, and governance, or ESG. It's certainly at the core of MTN's strategy. The company has made good progress in its sustainability efforts to date and have a lot more planned as witnessed in Ambition 2025. A video will give us an overview of MTN's ESG at the core philosophy, followed by Group Executive for Corporate Affairs and Sustainability, Nompilo Morafo, who'll deliver her ESG at the core presentation. MTN has an ambition for 2025 and beyond. An ambition to meet net zero emissions by 2040 with over 1,330 sites powered by renewable energy, allowing you to do more while we use less. Up to 80% less energy consumption per subscriber by 2030, with data costs up to a third cheaper. We won't stop until opportunity is open to everyone, enabling our 278 million subscribers to exercise their rights to freedom of expression and privacy, ensuring we're transparent where we face challenges. We understand our behavior and ethics play a key role in shaping society. It's why our staff have completed over 10,000 ethics e-learning modules. We won't stop until opportunity is open to everyone, and we can't build a business for everyone without everyone. We already sit above the global average, with women representing 33% of our board and leadership. It's only the beginning. We can be more. More diverse, more inclusive, more equitable. We're investing our time in what matters, like being one of the most admired and helpful brands during the pandemic, second only to the World Health Organization, investing ZAR 50 billion on infrastructure, powering over 5 million distribution agents, and putting the benefits of a modern connected life in the hands of everyone, so nothing holds Africa back. The way ZAR 152 billion MoMo transactions don't hold the unbanked back. Let's do more. More for Africa, more for the environment, more for its people. More good, more together. Everywhere you go, MTN. Hi, everyone. I'm going to take a few minutes to highlight why ESG is at the core of MTN's Ambition 2025 strategy. A key enabler of our Ambition 2025 is to continue to ensure that ESG stays at the core of how we deliver on our business strategy. It is with this in mind that our sustainability vision is very clear. It is to create shared value for stakeholders through responsible environmental, social, and governance practices. We deliver on this vision through a four-pillar strategy and framework, which over and above the well-understood E, S, and G, includes creating economic value and ultimately provides broader socioeconomic benefits to society through our business plan. These have also been defined in line with the UN Sustainable Development Goals, ensuring that MTN continuously plays its role in the development across our markets. Our framework is entrenched across MTN's operating companies and is complemented by a set of policies and procedures addressing each and every area. To reinforce our commitment, MTN Group President and CEO has accepted 10% of total STI weight for 2021 linked to ESG performance. We have made remarkable progress in ESG, but we recognize that there is so much that we can still achieve. Under our eco-responsibility pillar, by 2030, we aim to reduce MTN's absolute emissions by 47% and have made a commitment to net zero emissions by 2040. This initiative is part of the GSMA-led industry-wide plan to achieve net zero greenhouse gas emissions. We further strive to deliver a 77.6% reduction in energy consumption per MTN subscriber. We aim to achieve our targets by ensuring that our sites are at least 15% powered by renewable energy by 2030. We have taken great strides to revise our approach to digital human rights and driving greater levels of transparency. We have revised our digital human rights policy and due diligence approach to be a lot more proactive. This is applied across our markets when we receive directives to restrict internet services. We conduct a thorough assessment to establish the legal basis of the request before we can comply. You may have seen a recent example of MTN Uganda internet shutdown, whereby the CEO triggered immediately an assessment and ensured that we notified our customers and stakeholders on time via different channels. We have published our 2020 transparency report, which has been well-received by all stakeholders. We will continuously revise this report to ensure that we factor in the feedback by stakeholders, as it was our first one. We are also encouraged to be recognized as a company with the greatest overall improvement by Ranking Digital Rights in their 2020 index. We have reached a significant milestone of 33% female representation at board level and 29% at senior management level, which are both above global averages. We enable thriving communities by creating jobs, equipping our people and African youth for the future world of work, while always upholding the rights of all our customers. A significant amount of effort has been placed under governance pillar. You would have seen the changes that have been made to our leadership structures, with a focus on risk and governance. Internally, we also will continue to drive a focus on ethics and integrity, ensuring that our teams, suppliers, and our partners annually complete an ethics training. These efforts have not gone unnoticed. The annual reputation index survey noted an improvement in MTN's reputation and trust with stakeholders to 79% compared to 75% in the previous year. MTN has a very well-established and robust stakeholder framework that was established in 2018 in order for us to improve how we communicate and engage with our stakeholders. With a view to further provide social and economic benefits to our society, we have managed to reduce data tariffs with an average of 32.9%, bringing down the cost to communicate across markets. We have spent in excess of ZAR 50 billion on our networks, which provide a backbone for the telecommunications infrastructure in our nation states. Through our operations, we have contributed more than ZAR 30 billion in tax as a leading taxpayer in all our markets. We continue to be a leading taxpayer in all markets. Working alongside our investor relations colleagues, it's important that we continuously engage with our ESG rating agencies in order for us to be able to continuously establish a baseline across priority firms that rate our performance. We analyze, categorize according to the following improvement opportunities: transparency opportunity, management opportunity, correction opportunity, engagement opportunity, which all help us to develop an action plan on how we can improve our ratings. These improvement areas are then incorporated into MTN's overall ESG KPIs. In conclusion, MTN strives for a step change of our ESG performance, and the most important part will always be enhancing disclosure. As mentioned on the previous slides, we are committed to reducing our environmental impact to deliver net zero by 2040. We will continue to support vibrant and successful communities by minimizing our digital human rights impact, by creating space for all people using our services to freely communicate and enjoy the right to privacy and security. Broad-based ownership of our operations beyond local listings will remain important. We will continue to accelerate our approach to diversity and inclusion. We intend to continue to effectively respond to COVID-19 through Y'ello Care program. We pride ourselves on the strong governance and ethical culture, especially internally. We are committed to connecting the unconnected and by continuously innovating our products and services. We will continue to drive digital and financial inclusion to close the digital and financial divide, because we believe everybody deserves the benefits of a modern connected life. Hopefully, this has provided you with a good context of our ESG positioning and how it is at the core of everything that we do. Thank you very much for your attention. Thank you very much, Nompilo, for giving us some of those fascinating insights and key measures that we can look out for. We'll be seeing Nompilo again in about 20 minutes' time for a live Q&A where we have the opportunity to address some of these questions and concerns regarding ESG. First, Group Chief Technology Information Officer, Charles Molapisi, will take us through MTN's technology platform's Second to None strategy. Thank you very much, Gugu, good afternoon to everybody. It is my pleasure to speak about technology platform Second to None, which is a vital enabler of our overall Ambition 2025 strategy. MTN believes that our ability to pivot to Ambition 2025 hinges on superior network performance and the ability to provide technology platforms that are second to none. The investment we make will help us build technology platforms to provide customers with a seamless and distinctive network experience. Therefore, what do we mean when we say technology platforms second to none? We mean that we'll build capabilities to accelerate the following. Retain the number one network NPS position across our markets, improving loyalty and customer lifetime value. Be the leader in terms of network coverage, fiber, and customer experience. Scale our cloud-native infrastructure as we move IT and network workloads to the public clouds. Provide zero-touch service-aware networks. Deliver real-time AI, machine learning, driven insights, and decisions. We'll deliver what we call a CODIS architecture, which is converged, open, data-driven, intelligent, and secure. As mentioned earlier, technology is at a core phase of Ambition 2025. That is why we formulated a program to drive this enablement. We refer to this program as Oxygen. The Oxygen program is a fusion of 28 future-proof internal programs that are fused into one super program to create a predictable architecture that is open and future-proof. This architecture will provide capabilities that will enable channel expansion, IT transformation, enterprise and business capabilities, and network and operations. Through the program, the Oxygen program, we've created the Oxygen Index, which is a weighted average score across all operating companies. With this index, we are able to track the maturity level of every opco across the Group, and therefore, create an aggregate score for the total Group. With this, we are able to decide on the required level of investment. Our ambition, of course, is to deliver 81% Oxygen level index from 2023 and beyond. As Ralph mentioned earlier, Ambition 2025 is anchored on five platforms, MoMo, Ayoba platform, Enterprise, NaaS, and Channel as a Service. These platforms will deliver the following, growing our core subscriber base through a Second to None network and expanding digital acquisition channels. These platforms, of course, will drive the doubling of data with 3G and 4G network expansion through what we refer to as a smart CapEx model. Through these platforms, of course, we'll ensure that we have MoMo users and scale their capability across our markets. We'll drive customer adoption of Ayoba, and we'll grow EBU revenue in the region through innovative solutions and partnerships. As part of the Oxygen program, as you can see on the mapping of the chart that you are looking at now, is that for these platforms, we have clearly mapped the required targeted technical enablement capabilities. All these platforms will benefit from the core technology layer, hence our emphasis on one API layer, one data lake, and one network. We're also clear that as we pivot to platforms and as we build these new capabilities, we will still need to ensure that we support the core business. From a tech perspective, our view is that we will remain focused as we pivot and continue to support the core business of mobile voice and data. Well, since fintech, like Serigne has outlined, is a key and critical growth area for our business, I'll provide more color on the role of technology in delivering the architecture plans. I'll also cover one API layer, one data lake, and one network. On fintech, the slide that you're looking, I know it's a slightly busy slide. What the slide does, it provides an overview of the short-term priorities in terms of evolving our architecture capabilities for fintech. In the last few years, we have made progress in building the wallet and payment infrastructure, as well as our new business, InsurTech. With a number of other elements that are currently in progress, this includes channel over the UX, BankTech, e-commerce, which is already live currently in Ghana, and will continue to roll out across the Group in 2022. We're also giving more attention to AML, particularly information security, as we continue to accelerate the deployment of CVM propositions and loyalty management on the platform. Now, let me touch a little bit on one network. Again, like I said, that we are driven to create the number one network, as well as IT capabilities that serve the customers' and business needs in agile, and also in a way that will improve customer loyalty and lifetime value. Our key achievements are the following. Currently, we are the number one network in terms of Net Promoter Score in 13 markets, particularly the key markets like South Africa, Nigeria, Ghana, and Cameroon. We will see strong improvement in voice and data metrics with a superior customer experience translating into retention of our customer base. You can see on the chart there is noticeably lower drop call rates in the most markets as we speak. We're also supporting the business by broadening our commercial addressable base across the segments of the network, which is 2G, 3G, and 4G. This will further propagate more population penetration as we go into 2021. We will bring in 2021, just in 2021 on the 4G network, additional 55 million of our people will be under the cover of 4G. This will bring the total base of our customers on the 4G to close to 400 million in the markets in which we operate. Let me touch a little bit again on One Network, but with emphasis on 5G. In terms of 5G, the market deployment, like we all know, will be dependent on the release of spectrum by national regulators. I'm also happy to report that we are making progress on our 5G readiness in our key markets, and we can see the green light for access and transport networks. I also want to emphasize that as we upgrade currently, as we upgrade and build capacity on our networks, we take advantage by making the segments of the network, whether it's the radio, the transmission, or the core, to be 5G capable. Let me mention that our roll-out of 5G will be purely targeted and use case led. The four initiatives that will enable 5G rollout in our existing CapEx envelope will be the following. We'll enable 5G-ready base bands units or the competing layer as part of the ongoing radio access network modernization programs. This will also include inserting existing packet core network as we launch 5G. The launch of 5G in non-standalone mode does not require a new core environment. We'll continue using the existing platform that we have on the 4G. We'll also leverage the large fiber infrastructure that was deployed under the 4G network. This also will be targeted at high-value areas and hotspots in the initial phases of the rollout. We are currently providing fixed and mobile 5G services in South Africa, and we're hoping that Nigeria, depending on the regulatory framework, will be able to launch this year. With federal rollouts that we are planning in all our markets or a number of our markets that are planned for 2022 and maybe 2023. Continuing on One Network, let me talk about an issue that's very topical, Open RAN. Though the technology is nascent, we believe in the promise of this new technology. We have four solution providers and top system integrators that have been selected already. We are currently working on lab validation with potential site trials that are planned in the second half of 2021 in the key markets that we want to plan, that we want to deploy, Guinea, Conakry, and Liberia. I want to talk about Project Zero, and I believe that Ralph covered this, but let me give a bit of emphasis from a technology perspective. This is driven by ESG as a core focus in our business. In our efforts to decarbonize, we're driving an enterprise and group-wide program called Project Zero. We're making good progress in this regard. As a Group CTO, for instance, I get a KPI on this, and as part of my performance, and this will be further cascaded to all technology functions across the Group. What do we think we are going to achieve? We have set ourselves the task by 2030. We aim to reach a 47% average reduction in absolute emissions for scope 1, 2, and 3. 78% average reduction in energy consumption per site. 15% of our sites we intend they must be powered by renewable energy. In addition, we are also making sure that our discussion with our tower CORES, as we go into new contracts, we are embedding the targets for Project Zero. I want to talk about One API. What do we mean? On One API layer, my emphasis is this, is that there is no digital transformation, no platform play without APIs. The API-first enterprise will enhance organizational value by doing the following. This platform will enable channel expansion. It is through this platform that we have the ability to onboard or integrate new third-party players on our platforms. Through this platform, we will facilitate growth strategies and new business models as we continue to productize the core assets and capabilities of our business. We will use this platform to accelerate time to market through the reusability of API functionalities. Ambition 2025, in my view, demands that we accelerate what is referred to as tech intensity. What do I mean? Tech intensity means the ability to accelerate the overall tech capabilities within our business. This will enable us to move from what is a telco into a techco. To this end, through my organization, through the Group Tech organization, we are now working on establishing a software development competence center to ensure that we inject software development capabilities within the business. Let us talk about data lake. Analytics and the ability to harness customer data points is critical in supporting our ambition, hence our emphasis on one data lake. Through the data lake, we are transforming to a data organization and currently live in 11 markets, with five additional markets in 2021, and plan to be live in all markets by 2023. Currently, we are processing three loads of records per month across the group, with 30 million transactions per minute in Nigeria, and we have now about 1,300 data feeds going into the data lake. There are over 25 advanced analytics use cases that cover customer experience, customer engagement, AML, and fraud. We also have over 300 employees across the group who are trained on new data management capabilities. Regarding AI and ML, the data lake focus supports our efforts of making MTN AI an automated organization. Our strategy is comprised of the following. First, on operations. We are working on implementing self-optimizing networks in South Africa in 2021. Roll out to other operating companies by 2022. We are also planning to have predictive network operations in key markets by 2022. AI and ML-powered contact centers, as we speak, are being rolled out in four of operating companies. On service-focused AI, we have rolled out chatbots in Nigeria. They will be rolled out in all markets by 2023. We currently have deployed about, in 19 opcos, the customer value management capabilities. On platforms, we plan to roll out cognitive bots in all opcos by 2023, and fintech decisioning and credit scoring is currently live in 15 operating companies. We have a disciplined approach to CapEx, which is very, very critical, with the CapEx intensity reducing to 16% through effective cost initiatives. Over the past three years, CapEx has been around, let's say, ZAR 26 billion to ZAR 30 billion per annum. Through our smart CapEx life, our stable CapEx envelope has delivered over 200% increase in annual data traffic from 2018 to 2021. We have deployed over 41,000 network sites and 80,000 logical sites across our footprint. The digital economy and technological innovation, as with any opportunity for growth, bring about their own risk. The key risks we have identified so far are the following. We have cybersecurity, geopolitical risk associated with vendors, semi-contractor supply chain, and the ongoing effects of COVID-19. I need to give the assurance that we believe we have appropriately prepared to mitigate this risk through deliberate interventions and putting necessary protocols in place. We continue to enhance and execute on group cybersecurity program under our Marshall Plan program. We have onboarded strong international security organizations as part of protective and proactive cyber defense methods. On geopolitical risk, we ensured that we have got proper performance bonds with the vendors when we procure equipment. In terms of supply chain, we secured 12 months of rolling spares, stock, and continue to monitor it. We have successfully managed the data traffic emanating from COVID-19 period. We continue to add capacity on the core and the radio network in order to ensure that we stay ahead of the curve. As I move to close, I want to cover our ambitions for 2025. We want to have the number one network NPS position across 17 operating companies by 2025. We intend to reach a score of 81% on our Oxygen Maturity Index by 2023 and beyond. We plan to have 135,000 kilometers of fiber footprints to enable us to become the number one African fiber player. We plan to have 40% of our sites with high-capacity backhaul connectivity. We'll have real-time AI and ML decisions across markets driven by one data lake. We'll have about 40% of our network and IT applications migrated to the cloud. We have an open platform ecosystem for partners and developers, which will be enabled by one API principle. With this, essentially, we'll provide the leading network coverage across the group by 2025. I hope that this provides you with a good sense of what we mean by technology platform second to none, and really how this enables growth in our connectivity business and platforms. Thank you very much. Well, some significant insights that came through there from Charles on a technology platform second to none. As you've heard it, he's quoted number one several times, and we'll get into that in just a moment as we do have Charles and Nompilo to build up on the ESG conversation. Thank you so much to you both for joining us today. Thank you. Thank you. Well, we're looking forward to the vigorous conversations and questions that many of our investors have actually posed to you. I think, Charles, let's pick up regarding some of the feedback that you've shared. Technology platform second to none. You've highlighted much of the important technology that is required in order to roll out these ambitions. I guess give us a quick refresher and a top-line reminder. as to why this is so key in order to unlock more value for the group. Yeah, thanks for the question. First of all, it's important to say that tech enablement or technology is really the fulcrum of Ambition 2025. Whether you are looking at fintech in terms of the new architecture, supporting the unicorns that Cyril wants to build, or Ayoba integration or API integration, because again, essentially Ayoba is an amalgamation of multiple integration points. You need platforms that are second to none to be able to achieve that. When we deal with enterprise, particularly ICT services, whether it's going to be cloud, IoT, UCC, communications, all of those are platforms. Whether it's Network as a Service or NaaS, or whether it's Chenosis, which is really a huge marketplace or a library of APIs, all those are platforms. It's important that as we pivot, that the layer of tech is robust, and that's why we're saying technology platforms are second to none. Also, it's important that as we pivot, we remember that we still have the core business to look after. Hence the biggest focus, again, that we're still putting on the core connectivity layer. That's why we say one network, one API layer, and one data layer. Eventually what we want to achieve, is what we call a CODIS architecture, which is a converged architecture, which is open, which is intelligent, distributed because of cloud and edge, and of course, which is secure. Mm-hmm. Very important that you mentioned that. That, of course, requires CapEx, which was alluded to earlier in previous conversations. Right that we heard. I'm hoping that you can emphasize here and give us more clarity, if we could unpack CapEx guidance from your perspective, and how you'll be able to maintain current levels of network infrastructure investment requirements. Very, very important question. I think you heard Ralph and Sulu, you heard the CEOs as well, speaking about our consistency in maintaining the CapEx envelope. Very, very critical. I'll headline my answer by saying that from 2018 to 2020, we've now delivered almost 200% increase in data traffic. We did this without breaking the CapEx envelope. Very, very important. I guess, to give a little bit of color in terms of the how are we achieving this thing? We can look at two pillars. What I call the optimization of the input cost in terms of what we need to negotiate from a procurement perspective or the technology interventions. Let's first start with tech. What are we doing from a tech perspective? In one of the discussions, Jens was talking about spectral efficient technologies, which is 4G. It means that we need to refarm and repurpose traditional 2G spectrum and move it to much more efficient technologies like 4G. We're doing that. There's new technologies, whether 4x4 MIMO or 256 QAM. All those help us to be able to deliver better throughput of data and better capacity on the existing street furniture on the network. You can talk about also on the core network, another work that we're doing is, normally the core network used to sit on proprietary platforms. We are now decoupling the software and the hardware, and we're moving to what is referred to as COTS or commercially on the shelf platforms. That helps us to be able to bring the cost down. If you go into the unit cost, which is really driven largely by Dirk Karl, who's our head of procurement, in collaboration with us from a tech perspective. In the last two years, we ran modernization programs in South Africa and across multiple markets. We're able to do that by reducing the cost of TCO. There's 50% reduction. That goes a long way in helping us to be able to compete and to roll out our CapEx and to still keep the CapEx envelope. Again, another unit cost reduction, on transmission. Transmission here could be talking about fiber optics or even microwave. 20%-30% reduction in unit cost levels. We've done that. On the core network as well, a lot of work we did, we bring the cost down, going into a flat fee model, reduction of about 20%-30% reduction in terms of cost. Two pillars, reduction in terms of unit cost, driven largely by Dirk and his team with the support of technology. Technical interventions driven by myself and Dirk as well in the background, helping us to be able to do that. We believe that with all these interventions, and we'll continue to do that. We believe that all of these interventions will really help us to arrest any possible expansion of the CapEx envelope. Sounds like a tight pilot boat that you're running. Right Of course, making sure that you're managing those efficiencies correctly. A question to both of you, and really building up on the theme of ESG that has come through quite prominently in the presentations today and the targets ahead of 2040. I'm keen to understand from the both of you as to what conversations have been taking place with some of your third parties in terms of having them participate on board with the emission reductions. Are they responsive? What feedback are we hearing, and how participative are they in this regard? Yes. Perhaps we'll take that to you, Nompilo, and hear from Charles too. Thank you, Gugu, for that question. Charles will take you through what our Project Zero project looks like. In terms of our partnerships, MTN has partnered with many industry bodies. For instance, GSMA. We are partners now with JAC and GeSI, which are also the industry bodies that overlook into the supply chain model in terms of how can our third parties actually really reduce emissions. It's something that we have seen. All parties are coming on board, and through the industry bodies like JAC and GeSI, we've been able to promote ESG within our supply chain overall. In looking at Scope 1 and Scope 2 currently, from 2014 onwards, we're sitting at about 50% Now it's reduced significantly to about 20% in 2019. This is something that we want to drive through Project Zero, which Charles will elaborate on more. From a partnership perspective, we're really hoping that as we go along this journey of reducing emissions in our infrastructure, going into renewables going forward, that we'll be able to have much broader conversations, especially through our industry bodies that we're participating in. Gugu, just to build on what Nompilo is saying. You heard Ralph talk about ESG at the core. Practically what that means, of course, it means that this is not something that is sitting at the periphery of our business. Sure. This is actually at the crux of it in terms of the business models and the strategy of our business. It's very, very important. Going directly on the question you're asking about third parties, our view is that this will take collaboration and innovation. Again, we see 50% of emissions come from the side of Scope 3. The biggest tower co-providers, if you look at them, most of them are common in terms of the infrastructure they provide to multiple MNOs. You need an industry approach, and we're doing that. There'll be an engagement. We work through the GSMA to engage the tower co-providers as an industry. I'm also optimistic, looking at some of them, what they're doing already. They themselves are taking proactive steps to address that, not necessarily waiting for us at MNO to push them, because they're also worried about the sustainability of their own business. Yes. There are a lot of innovation that we are working on together with them to address that. I believe that through collaboration and innovation, I think we'll be able to get the support that we want. I think we'll be able to actually achieve ambitions. Really sounds like the targets are on track and at least the collaborative efforts there remain in place. Yeah. Let's go back to climate change, perhaps, and focus on that specifically with yourself, Nompilo. If you can provide us with some kind of oversight regarding this issue, and any highlights in terms of progress that has been made in order to address this theme. Yes. As Charles has mentioned, for MTN, we're not doing this for lip service. It's something that we take very seriously from the board up towards executive management. The recent development that has happened that really uplifts in terms of how we report and how we provide oversight into these areas, that we've appointed our chairman of social and ethics committee as an oversight, we call him a climate change board member and a director. That basically means that we're just frequently going to be reporting on the issue of sustainability, which we report on, but climate change is a major part of it. He's been appointed as a climate director for MTN. The oversight really has been given to the social and ethics committee, but the conversation around sustainability, climate change, ESG overall, happens at a board level at MTN, and we report frequently. Every quarter, we have a much broader conversation that talks into the E, S, and the G, whereby we bring all the participants, like for instance, Charles looking more at the Project Zero and how we're going to have reports on our science-based targets to the board, and also have that annualized plan that we say every year, "This is what we're looking at, and this is how we're going to meet our targets." We're feeling comfortable that the conversation has really been elevated to the board level, which has an oversight on everything that we do around this area. Not just climate change, but the sustainability area as a whole. Correct. It's very important that we do have that kind of support. Yeah. I'd like us to zone into the S slightly- Yeah for a moment, of ESG, Nompilo. We have heard themes that come across to actually show the commitment that MTN Group does have- Yeah to the people of the continent, and the kind of change we're trying to drive with entrepreneurship support and the various offerings that your platforms provide. Give us a little bit more detail, specifically as to how MTN continues to focus on social developments on the continent, specifically given the climate that we're in. Thanks, Gugu, for that question. I think MTN, as a company, we recognize that we can't really flourish if the communities that we operate in are not healthy. Meaning that with the pandemic, we saw that there's been a lot of stress that comes from lockdowns, and people are not employed. There's just no jobs. MTN responded swiftly at the onset of COVID with our Y'ello Hope program, which we really prioritized our staff, community stakeholders, and customers overall, and also our business, so that we are able to respond in a manner that's appropriate and actually brings value and makes a difference in people's lives. I'm happy to say that although we don't do these things for PR reasons, we were mentioned in the Brand Africa survey- Yes as a company that was seen as being most helpful during the pandemic, next to the World Health Organization. What does that tell us as an organization? It tells us that our customers and our stakeholders, they're seeing the value and the impact of the programs. Without their feedback, we would not know if we're doing the right things. That was quite encouraging. Recently, we are partnering with the AU and Africa CDC. We have given a donation of about $25 million towards a vaccination program by the AU. That also is a very important part of what MTN does for society, because again, the health of Africa and the health of our communities is very important to us. That's really been the highlights of our S part in terms of the ESG, but we have more. We have 14 foundations across our markets. We spend about ZAR 600 million annually in terms of community development. We focus a lot on youth employment. We focus a lot on development. We focus on women and also young people in order for them to participate meaningfully in the ICT sector, which is something that we're very passionate about. Africa has got a young population, so we're looking at how we can ensure that we don't leave anybody behind. We make sure that people truly benefit from the technology that's been brought by MTN. Let's take a look at the G very briefly, and maybe go back to the full acronym of ESG, and that we have witnessed that there has been a significant shift in changes in terms of how the Group has been managing this with its various stakeholders at a group level. I'm keen to understand, as we tie this into Ambition 2025, as to how ESG continues to play a very critical role in the implementation of the strategy, and how we ensure that the different elements of the Group do actively participate in reaching these targets that have been set. MTN, around 2018, we developed our own stakeholder engagement plan. Basically, the reason why we do that is because our circumstances in the markets that we operate in are quite unique, so it becomes very difficult to just plug and play a RepTrak that's generic, that's been done by other corporates. We developed our own so that we can be able to really prioritize the stakeholders that are material to the organization, looking at how the sentiment of the organization is actually being seen by the stakeholders that we serve in the communities across our markets. Over the past three years, it's been improving significantly. We have made sure that our stakeholder engagement plan is supported by a reputation index. We don't just do the engagement only. We also check annually in terms of the health of our relationship with our stakeholders. We're sitting now at 79%, which we're told by benchmarks like RepTrak, et cetera, that that's a healthy relationship you can have with your stakeholders. There's areas for improvement. For instance, we need to do more in terms of localization, we need to do more in terms of creating jobs. What we've seen is that with all of that, and the focus that the organization has put on ESG as a whole, it elevates the conversation that says we're not only looking at what we do from a community development perspective, but we look at that more important area that's called shared value, in terms of economic value, in terms of uplifting people's lives through the business model of what we do as a company. That's been very encouraging. I think we pride ourselves on ethics and the governance structure as an organization. Annually, we train people, our people, we train our third parties, we train suppliers on ethics. It's something that we're continuously going to be doing. I'm sure you've seen the announcements around the changes around the structure of the organization to focus more on risk and compliance as well. We've done a lot, and there's more that we're still going to do. We've taken great strides in terms of uplifting our disclosure. We publish our transparency report, which is a very important part of our governance. This year as well, the Ranking Digital Rights ranked MTN as the most improved company when it comes to human rights reporting. That's something that we really want to continue doing, because the more we elevate the conversation and we disclose what we're doing, we stay transparent to the customers and the communities that we serve, in terms of them knowing how we actually conduct our business from an ESG perspective. Mm-hmm. Great progress that's being made there nonetheless. Yeah. Charles, I'd like to segue and come back to you for a moment, as we have some investors who are quite keen to get into the 28 future-proof points that you had highlighted and those programs that you referred to within your presentation. The question really does want you to elaborate if this is a target for the group or for each business unit. They ask, 28 is quite a large number. Is this attainable or slightly tricky to manage? Look, the program is called Oxygen. Like I said earlier on, the tech really is a far cry of Ambition 2025. We formulated a transparent and future-proof program, which is very important, I think, in terms of the future of architecture. We've got an amalgamation of 28 programs that we're implementing across the group. Very important to highlight that the programs mature at different stages, depending on the market, the market structure, the profile of business, and the capabilities required. Of course, the biggest push is to get the key markets, the tier 1 markets, to accelerate their index. We're running what we call Oxygen Index, which is a measurement that is OpCo specific, but then aggregates up into the group level. We're able to look per OpCo, where they are in terms of maturity, which platform needs to be actually, where we need to pull one lever to be able to move the Oxygen Index level up. Where do we need to actually focus and concentrate our firepower in terms of investment to be able to uplift the index? It's a broad group program formulated at the center, but executed purely and owned by the markets. We believe that with this program, we'll be able to support the organization in terms of Ambition 2025. doable, practical, and of course, also local and specific to the various Correct markets that need to unpack them. Coming back to net zero 2040, this question asks, is it realistic? How do we actually plan to get there? We take the ambition seriously, like I mentioned on the whole issue of ESG at the core. Looking on environmental in terms of Project Zero, we believe that it's achievable, and we're saying that we have a net zero ambition for 2040, and we say by 2030, we'll be able to reduce, I think, across scope 1, 2, 3, by almost 47% on average. We believe that with the interventions we're making now, with the engagement with our partners, we'll be able to do that. A quick example is what we are doing in terms of site rollout. We've got about 1,300 sites that we run, our rural sites, by the way. All of those sites are powered through renewable energy. We are now moving that into macro sites, into traditional macro sites on our network to be able to bring renewable energy on there. There are also technological interventions we're going to put in terms of energy management. The ability to be able to put the cell sites to sleep depending on the traffic. It definitely is a bold ambition, but we believe that the benefit and the requirement for sustainable Africa is a big requirement for us to achieve Ambition 2025. We're saying that we want to build a platform for Africa's progress. Surely, Africa's progress must be sustainable progress. Yeah. Makes sense. It needs to be sustainable- Yeah It does go back to that theme around climate change. Maybe we can also hear your thoughts on this one, Nompilo, as to what the opportunities really are to capitalize in the market. Charles has run through some of the practicalities, are there more opportunities and risks that we need to mitigate against? Yeah. Just to add on what Charles has just said, if you look at our climate change strategy, I mean, policymakers and politicians speak frequently on this topic that if you look at Africa as a whole, people are very vulnerable to climate change, especially in the continent called Africa. We're taking a very long-term view into climate change. We're going to look at all risks and also opportunities that this brings for us as an organization. Our strategy really twofold, like Charles has mentioned. We're going to focus on driving greater efficiencies in our infrastructure. Secondly, looking at renewable energy sources going forward. We look at risks and opportunities, like I said, we report to the board on both. We look at what we're doing and how we can do it in a longer term. What's important is that if people are interested in seeing our risks and opportunities plan, you can see our CDP report, which is published on our website every year. Those things, we make sure that they are really, really guided by global standards, and we align with TCFD guidelines overall, so that we make sure that we also report on financial related risks that come with climate change. It's something that we publish and we disclose on our website. Like I mentioned earlier, with the investor relations colleagues, we really are focusing on making sure that we elevate the disclosure of the things that we do, because sometimes we have conversations and we realize that people don't have access to the information of what MTN does for climate change- We looked from a digital and only financial inclusion perspective. Disclosure is going to be continuously be one of the most important elements of what we do. Easy to access and also easy to understand- Easy to access, yes I'm assuming for stakeholders. Yeah. Makes sense. We do have a follow-up question. Okay That's been shared by one of our investors, John Kim of UBS. Quite loaded here, Charles, but does refer back to one of the figures that you had showed about the targets as well as rollout and deployment of network infrastructure as well. The question asks, "Where is MTN Group at versus target levels for fiber network deployment? In future, what percentage of capacity or coverage would MTN look to consume internally versus monetize to external operators? John, thanks for the question. I believe what John probably is asking is aligned with the FibreCo strategy in terms of what we want to do around fiber. I'll first start internally. The whole issue of FibreCo, obviously, MTN will be the anchor tenant of the FibreCo business. If you look at our sites today, even on a network site alone, we believe that through fiber we'll be able to, let's say, connect 40% of our total critical sites in terms of our network. MTN demand from a FibreCo perspective for fiber will be there, but there's a massive need for fiber infrastructure even outside, that FibreCo business will be able to sell independent of MTN. Right now, I think if you compare to traditional fiber players in the market, I think we're behind, but I think we're going to scale this out. We are talking about delivering 135,000 kilometers of fiber, becoming Africa's number 1 fiber player. We already started in Zambia, because again, if you look at Zambia, because it's got about 8 border countries, it represents an opportunity for us to set up as a transit hub for multiple, whether it's the banks, for instance, the mines who want connectivity, we're providing all of this. There are many opportunities, if we continue to look at the whole fiber infrastructure that we want to build. Makes a lot more sense and looking forward to seeing how those developments do certainly unfold. That was for John. Yeah I certainly hope that he's quite satisfied with that response. Before we wrap up this particular section, I think there's a lot of excitement around ESG, and we are quite well aware as to how serious it's being taken. Ralph mentioned earlier that he's got a 10% target. We heard some stakeholders asking how it's measured and clearly have understood that in other years to come, fellow executives will come on board. A trick question for you, Nompilo, how are you making sure he meets his target at the end of next year? Ralph does have a 10% target that's linked to ESG. It's something that we all participate in, because his target's really talking to Project Zero. They're talking to how we engage with our stakeholders, because his 5% sits on reputation index that I spoke about. It's a big commitment because it's all the areas that are not within our control. Reputation index, the results of are not ours. It's how our stakeholders look at us. For us to be able to do these things, we need to be bold about them. This is what we're doing to take those targets that are not even within our control, but because we trust the system in terms of the measures and the metrics that we put inside as an organization, that will get us there. He's got another target that says he wants to improve ESG ratings going forward. On the top quartile ESG raters that we use to look at our improvement plan. That also is completely outside of his control. Because we've done so much work internally to make sure that we put these programs and KPIs in place, we're quite confident we should be able to get there. Well, we're confident we'll monitor those numbers, but certainly understand that the necessary support- Yeah has been put in place. Thank you kindly for your time today. Thank you. We really gained a lot of insight and color and detail. Thank you. into the segments you look after. Thanks again. Thank you so much. Thank you. That was Charles and Nompilo. Ladies and gentlemen, returning to deliver his closing remarks here on MTN Capital Markets Day and Ambition 2025, let's welcome back to give us his closing remarks, Group President and CEO, Ralph Mupita. Gugu, thanks very much. We really appreciate the time that you took to chaperone us through a very interesting program today. A program that we hope our audience, largely investors, but broader stakeholders, trust that you enjoyed it. Just a few closing comments from my side. Firstly, to thank you all for joining us on this first virtual Capital Markets Day. We're under COVID conditions, would have loved to see you face-to-face to be able to interact with you during the coffee breaks and at the water cooler. These are COVID times, so we're having to use these great platforms to communicate to you. Thank you for spending the last six hours with us. Hopefully the technology held and you were able to walk through with us through the course of today. I just wanted to finish off with a couple of key comments. Firstly, to thank the teams that have done behind the scenes, the MTN team, our partners, Gugu as well, who've taken us through what is, for us, a very important day to talk to our investors, our shareholders and broader stakeholders. Thanks to everybody. Just a couple of comments from my side, just reflecting on the day. Firstly, I trust that you really got to get a sense that Ambition 2025 has actually got a plan that's very clear in terms of how we're going to execute from where we are today to get to 2025. I think you would appreciate that as the team presented, yes, we are ambitious and we are visionary, but we're also very grounded. Iain spoke about our CHASE framework that will drive the data opportunity. In the language and the numbers that he spoke about, I think you saw that there's a very great deal of granularity there. Similar, in terms of the presentation by Serigne. The revenue mix is very clearly going to shift in Fintech between now and 2025. We're well positioning ourselves within these unicorns to resource and actually walk through that change. Charles, again, as an example, gave you the granularity of the Oxygen program, which is actually providing a lot of guidance to the opcos exactly about how we transition from a technology point of view. There is vision and ambition, but also, we are at ground zero as a management team. The other point that I hope you took away is that as excited as we are about executing Ambition 2025, capital allocation and the framework remains squarely in place. We're going to be very disciplined around capital. Tsolo took you through all of that detail. We really do believe that the ZAR 28 billion-ZAR 30 billion on current exchange rates is the CapEx envelope that we will have in the next coming years, and will be able to deliver, including 5G rollout, within that envelope. We will continue to work on bringing price books down as we develop on our technology roadmap, 3G, 4G, ultimately 5G. Smart CapEx and other methodologies will help us manage that CapEx envelope going forward. The capital allocation discipline remain in place. The risk and regulatory framework, I think you take comfort from having people like Felleng and Ferdi responsible for those pillars. I certainly take a lot of comfort from having them around and guiding the team, in particular around the risk and regulatory framework. These environments we operate in, they have risk, and Ferdi took us through all the kind of risk areas that we're working through. We are putting the guardrails, the lines of defense, that enable us to navigate. As Felleng mentioned, there are very clear regulatory processes in how we manage these, and these also feed into the risk profile, which we manage very actively. The other area that I hope you took away is that I'm certainly privileged to work with these people, that we have a very experienced and diverse management team. We're operating today from a couple of locations under these COVID conditions. I'm very well supported by an experienced executive team that you saw some of them today, but there's more of them, actually, in the group that you didn't see today. Certainly, in the markets, we have very strong CEOs actually executing on our strategy. These are entrepreneurs, but also people on the ground who are building what we call MTN Group today. I hope that you took those points through the course of today, and I hope you also found the disclosure, which is an ongoing project, valuable, including the detail that was provided around ESG. Both Nompilo and Charles took us through a granular level of detail around what it is that we are doing or attempting to do around the ESG. Any modern corporation today takes ESG very centrally, and I think you will see us moving step by step in our own progression as a modern company. I really trust that you took that disclosures, which is an ongoing project, and you'll see us providing more and more disclosure around these areas because they all feed in ultimately to the medium-term guidance framework that we've committed to you as our investors and shareholders. Finally, I just wanted to, again, take this opportunity to say that with Ambition 2025, we believe there's a very solid investment case here for investors. Investors that are interested in the growth opportunity that the digital society and digital economy is underpinned by. We feel that Africa certainly is, for the next 10 years, part of that significant growth opportunity, both for connectivity, which today is 90% of our business, as well as for the platform businesses that we believe will scale over time. We will have a focus on both opportunities. It's not as if we are going to pivot just to platforms. The connectivity allows us to be able to have the platforms that many of you are so excited about. We're excited about both the connectivity and the platforms. I trust that this investment case positioning that we did today is clear. We'll continue to report to you. In closing, I just wanted to leave you with a video that encapsulates why we think MTN is an awesome investment case, an investment case pivoted around growth. With those comments, just thanking you again for spending the six hours with us today, and I trust that it was good. Please give us feedback through Thato and the IR team in terms of anything else that we may have not covered that you'd like us to cover in due course. Thanks very much, and please don't disappear. Listen to the video and the five points around our investment case. MTN is a Pan-African operator which believes that everybody deserves the benefits of a modern connected life. I want to tell you five reasons to be excited about MTN's value proposition underpinned by our strategy, Ambition 2025. Together, these five points drive our investment case of a compelling African growth story, accelerated by the digital shifts we are seeing globally and across our markets. Firstly, we are Africa's leading scale connectivity and infrastructure business. In all our markets, we have number 1 or number 2 subscriber market positions. We have built second to none networks which are very well invested. We see opportunity for growth in enterprise, wholesale, and infrastructure sharing. Secondly, there are exciting demographic opportunities across our markets. The population is fast-growing and youthful. Data, Fintech, and digital adoption is still low, presenting substantial headroom for sustained growth. We see ourselves as a partner in the socioeconomic development of nation states in which we operate in. Thirdly, we will build and scale our five platforms, namely Fintech, Digital, Enterprise, Network as a Service, and our API Marketplace, to capture the accelerating growth present in all our markets. Fourthly, we are well-positioned for the long term. Given the digital acceleration we're experiencing on the continent, we are optimizing our portfolio through our Asset Realization Program to enhance our risk and return profile. We are working to expose value in our infrastructure, assets, and platforms through the execution of Ambition 2025. We're entrenching ourselves as the partner of choice in our host nations and shape-changing our environmental, social, and governance practices. Finally, we have an attractive return profile. Our platforms are accelerating growth, helping to drive an attractive cash flow and return profile. We are also working to ensure the accelerated de-leveraging of our holdco balance sheet. This is all underpinned by a strong risk and regulatory framework, as well as a very disciplined capital allocation framework that guides every investment decision that we make in the company. We welcome all stakeholders to join us as partners in this exciting journey, and together we can create even more value and make a meaningful contribution to the lives of the people and the communities that we serve across our beloved continent, Africa.