(formely M-Cell Limited) - Business Report 2003 - MTN Group

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Strategic investments IRENE CHARNLEY Commercial Director OVERVIEW Strategic Investments is responsible for cultivating new growth opportunities related to, but outside of the core mobile business as well as managing special strategic projects in the Group. It currently oversees the Group’s investments in Orbicom, MTN Network Solutions and Airborn. ORBICOM Orbicom’s core business is satellite signal distribution. It operates the largest commercial satellite broadcast network on the African continent. The company has experienced a difficult year, with margins coming under pressure in a highly competitive market. Orbicom’s successful penetration of markets in Africa resulted in up to 50% of its revenue being US dollar-based. The recent strengthening of the rand resulted in reduced revenues when translated into rand. Earnings were also affected by the unexpectedly late start-up of the operation in Ghana, coupled with lower than expected monthly revenue and the delayed start-up of another major income-generating project. Some of the challenges presented by the Ghanaian operation were partly addressed by the deployment of a number of the company’s technical experts to assist in stabilising the Ghanaian network and switch. This enabled commercial operation to commence in June 2002. During 2004, the company will focus on completing the digitisation process in its broadcast business. It will also allocate considerable resources to the building of the MTN Nigeria satellite earth station. It has submitted a number of tenders for various broadcast and telecommunications-related projects in Africa. Another major project is the construction of a satellite earth station in Cape Town for the parliamentary uplink for MultiChoice. The company plays an important role in the telecommunications sector as a convergence provider, offering services that include broadcast signal distribution, VSAT, microwave and IP solutions. Its core business, however, is to provide satellite solutions for clients such as MultiChoice and Global Access SA and to utilise its technology to offer business solutions, especially in the rest of Africa. Orbicom has plans in place to maximise margins and has identified several potential new customers. Its state-of-the-art infrastructure, strong skills base and extensive experience in Africa positions it well to provide broadcast signal distribution services, VSAT and IP solutions in new markets. In the short to medium term the company plans to build at least four satellite earth stations for broadcast and/or telecommunications clients. MTN NETWORK SOLUTIONS The MTN Group has a 60% equity stake in MTN Network Solutions, which provides managed internet, VPN and hosting services for the corporate market. It is South Africa’s fourthlargest tier-one Internet Service Provider and its operations generally offer exceptional opportunities for convergence with MTN South Africa’s mobile products and services. The company achieved improved sales in a difficult market during the second half of the year and was able to achieve its targets in terms of annuity revenue and EBITDA. It reached break-even for the financial year and successfully completed the roll-out of its core national network and construction of a new commercial hosting facility based in Rosebank, Johannesburg. AIRBORN Defining and building a sustainable and long-term culture of innovation is a critical component in the provision of relevant and innovative next generation mobile services and PAGE 34 MTN BUSINESS REPORT 2003
products across the Group. Airborn is charged with both the development of new technologies, and the commercial exploitation of existing technologies and intellectual property. This encompasses advanced application development, concept and technology incubation, the exploration of solutions that fall at the convergence point between mobile technologies and the Internet and the development of applications that enhance the core network activities of mobile operators. Airborn not only provides the Group with an environment which allows entrepreneurial activities to develop, but also connects them to the Group’s resources, knowledge and strategic objectives, thereby ensuring that innovation is closely aligned to the Group’s strategies. Airborn aims to provide the platform for strategic growth outside of core activities that both revitalise and challenge the status quo. The objective is to stimulate, recognise and appropriately reward innovation. Airborn is actively addressing this through a variety of intragroup initiatives. Airborn’s solutions have so far been deployed in a number of countries, including South Africa, Nigeria and Italy. MTN BUSINESS REPORT 2003 PAGE 35
Page 1 and 2: MTN Group Limited (formerly M-Cell
Page 3 and 4: FINANCIAL HIGHLIGHTS 2003 ● ●
Page 5 and 6: OUR VISION IS TO BE THE LEADING PRO
Page 7 and 8: MTN Footprint AS AT 31 MARCH 2003 E
Page 9 and 10: EXECUTIVE DIRECTORS 1. P F NHLEKO G
Page 11 and 12: Keeping pace with the technological
Page 13 and 14: MTN group values Values To realise
Page 15 and 16: Flashed, superheated air hotter tha
Page 17 and 18: for between 94,9% and 97,9% of the
Page 19 and 20: LOOKING AHEAD The positive results
Page 21 and 22: operations in local currency was su
Page 23 and 24: a deferred tax asset raised which i
Page 25 and 26: Table 5 Capital expenditure Capital
Page 27 and 28: Table 7 Group facilities Total Util
Page 29 and 30: In the post-paid market, MTN South
Page 31 and 32: gathering and analysing relevant cu
Page 33 and 34: (2002: R450 million). EBITDA was R2
Page 35 and 36: MTN RWANDA MTN Rwanda recorded plea
Page 37: MTN UGANDA MTN Uganda continues to
Page 41 and 42: GROUP BALANCE SHEET AS AT 28 FEBRUA
Page 43 and 44: SHAREHOLDER INFORMATION SPREAD OF O
Page 45 and 46: In a military-like manoeuvre of pre
Page 47 and 48: Details of attendance by directors
Page 49 and 50: DEALINGS IN SECURITIES All director
Page 51 and 52: of internal, financial and operatio
Page 53 and 54: ● No share options have been repr
Page 55 and 56: investment in five countries outsid
Page 57 and 58: Glossary of terms and acronyms Grou
Page 59 and 60: These regular visitors, who shape c
Page 61 and 62: DIRECTORS’ APPROVAL OF THE ANNUAL
Page 63 and 64: DIRECTORS’ REPORT FOR THE YEAR EN
Page 65 and 66: THE MTN GROUP SHARE OPTION AND INCE
Page 67 and 68: EQUITY COMPENSATION BENEFITS FOR EX
Page 69 and 70: DIRECTORS’ SHAREHOLDINGS The inte
Page 71 and 72: DIRECTORS’ EMOLUMENTS AND RELATED
Page 73 and 74: In addition, the Public Investment
Page 75 and 76: The Group’s investment in associa
Page 77 and 78: issue during the period and is base
Page 79 and 80: ● income and expenditure and cash
Page 81 and 82: GROUP BALANCE SHEET AS AT 31 MARCH
Page 83 and 84: GROUP STATEMENT OF CHANGES IN SHARE
Page 85 and 86: 1. BUSINESS AND GEOGRAPHICAL SEGMEN
Page 87 and 88: 2003 2002 Rm Rm 3. OPERATING EXPENS
Page 89 and 90:
2003 2002 Rm Rm 7. EARNINGS PER ORD
Page 91 and 92:
Information systems, furniture Netw
Page 93 and 94:
Other Connection intangible incenti
Page 95 and 96:
16. TRADE AND OTHER RECEIVABLES Bal
Page 97 and 98:
2003 2002 Rm Rm 20. BORROWINGS (con
Page 99 and 100:
2003 2002 Rm Rm 20. BORROWINGS (con
Page 101 and 102:
22. TRADE AND OTHER PAYABLES Trade
Page 103 and 104:
Carrying amount Fair value 2003 200
Page 105 and 106:
2003 2002 Rm Rm 31. CONTINGENT LIAB
Page 107 and 108:
40. CLASSIFICATION OF MTN MAURITIUS
Page 109 and 110:
COMPANY CASH FLOW STATEMENT FOR THE
Page 111 and 112:
7. RECEIVABLES Sundry receivables 7
Page 113 and 114:
INTERESTS IN ASSOCIATED COMPANIES A
Page 115 and 116:
R S DABENGWA (44) BSc (Eng), MBA Ex
Page 117 and 118:
Symbolizing the power of a leader,
Page 119 and 120:
Details of directors offering thems
Page 121 and 122:
4. That the maximum discount at whi
Page 123 and 124:
PROXIES A form of proxy which sets
Page 125 and 126:
This resolution is required to be p
Page 127 and 128:
APPENDIX TO THE NOTICE OF ANNUAL GE
Page 129 and 130:
FORM OF PROXY ONLY FOR USE BY REGIS
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(formely M-Cell Limited) - Business Report 2003 - MTN Group

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