report on the results for the ... - airtel africa || home

The financial statements included in this quarterly report fairly presents in all material respects the financial position,results of operations and cash flow of the Group as of, and for the periods presented in this report.

Oct 23, 2020

| Mobile Services I Mobile Money |

Report on the results for the second quarter and half year ended September 30, 2020

Airtel Africa plc

Airtel Africa

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Supplemental Disclosures

Basis of preparation: - The results for the six months ended 30

September 2020 are unaudited and in the opinion of management, include all adjustments necessary for the fair presentation of the results of the same period. The financial information has been prepared based on International Accounting Standard 34 (IAS 34) and apply the same accounting policies, presentation and methods of calculation as those followed in the preparation of the Group’s annual consolidated financial statements for the year ended 31 March 2020 except to the extent required/ prescribed by IAS 34. This report should be read in conjunction with audited consolidated financial statements and related notes for the year ended 31 March 2020. The comparative information has been drawn based on Airtel Africa plc’s Audited Consolidated Financial Statements for the year ended 31 March 2020 prepared under International Financial Reporting Standard (IFRS).

Use of certain Alternative performance measures (APM):- This result

announcement contains certain information on the Group’s results of

operations and cash flows that have been derived from amounts

calculated in accordance with International Financial Reporting Standard

(IFRS), but are not in themselves IFRS measures. They should not be

viewed in isolation as alternatives to the equivalent IFRS measures and

should be read in conjunction with the equivalent IFRS measures.

Further, disclosures are also provided under “7.2 Use of Alternative performance measures (APM) Financial Information” on page 34

Safe Harbor: The IAS 34 financials considered for the purpose of this

report is unaudited.

Convenience translation: - We publish our financial statements in

United States Dollars. All references herein to “US dollars”, “USD”, “$”

and “US$” are to United States dollars. Translation of income statement

items have been made from local currencies of Africa operating units to

USD (unless otherwise indicated) using the respective monthly average

rates. Translation of statement of financial position items has been made

using the closing rate. All amounts translated as described above are

provided solely for the convenience of the reader, and no representation

is made that the local currencies or USD amounts referred to herein could

have been or could be converted into USD or local currencies

respectively, as the case may be, at any particular rate, the above rates

or at all. Any discrepancies in any table between totals and sums of the

amounts listed are due to rounding off.

Others: In this report, the terms “we”, “us”, “our”, “ Airtel - Africa”, or

“Africa”, unless otherwise specified or the context otherwise implies, refer

to the Airtel Africa plc and its subsidiaries and its associate, Bharti Airtel

International (Netherlands) B.V., Africa Towers N.V., Airtel (Seychelles)

Limited, Airtel Congo S.A, Airtel Gabon S.A., Airtel Madagascar S.A.,

Airtel Malawi plc, Airtel Mobile Commerce B.V., Airtel Mobile Commerce

Holdings B.V., Airtel Mobile Commerce Kenya Limited, Airtel Mobile

Commerce Limited (Malawi), Airtel Mobile Commerce Madagascar S.A.,

Airtel Mobile Commerce Rwanda Limited, Airtel Mobile Commerce

(Seychelles) Limited, Airtel Mobile Commerce Tanzania Limited, Airtel

Mobile Commerce Tchad SARL, Airtel Mobile Commerce Uganda

Limited, Airtel Mobile Commerce Zambia Limited , Airtel Money RDC

S.A., Airtel Money Niger S.A., Airtel Money S.A. (Gabon), Airtel Networks

Kenya Limited, Airtel Networks Limited, Airtel Networks Zambia plc, Airtel

Rwanda Limited, Airtel Tanzania plc (formerly known as Airtel Tanzania

Limited), Airtel Tchad S.A., Airtel Uganda Limited, Bharti Airtel Africa

B.V., Bharti Airtel Chad Holdings B.V. , Bharti Airtel Congo Holdings B.V.,

Bharti Airtel Developers Forum Limited, Bharti Airtel Gabon Holdings

B.V. , Bharti Airtel Kenya B.V., Bharti Airtel Kenya Holdings B.V., Bharti

Airtel Madagascar Holdings B.V. , Bharti Airtel Malawi Holdings B.V. ,

Bharti Airtel Mali Holdings B.V., Bharti Airtel Niger Holdings B.V. , Bharti

Airtel Nigeria B.V. , Bharti Airtel Nigeria Holdings II B.V. , Bharti Airtel

RDC Holdings B.V. , Bharti Airtel Services B.V. , Bharti Airtel Tanzania

B.V., Bharti Airtel Uganda Holdings B.V., Bharti Airtel Zambia Holdings

B.V., Celtel (Mauritius) Holdings Limited, Airtel Congo RDC S.A., Celtel

Niger S.A., Channel Sea Management Company (Mauritius) Limited,

Congo RDC Towers S.A., Gabon Towers S.A. (under dissolution), Indian

Ocean Telecom Limited, Madagascar Towers S.A., Malawi Towers

Limited, Mobile Commerce Congo S.A., Montana International,

Partnership Investments S.A.R.L, Société Malgache de Telephonie

Cellulaire SA, Tanzania Towers Limited, Bharti Airtel Rwanda Holdings

Limited , Airtel Money Transfer Ltd, Airtel Money Tanzania Limited , Airtel

Mobile Commerce Nigeria Limited (incorporate w.e.f. August 31, 2017),

Airtel Mobile Commerce Nigeria B.V.(incorporated w.e.f. 5th December,

2018), Airtel Mobile Commerce (Seychelles) B.V. (incorporated w.e.f.

29th January, 2019), Airtel Mobile Commerce Congo B.V. (incorporated

w.e.f. 29th January, 2019), Airtel Mobile Commerce Kenya B.V.

(incorporated w.e.f. 29th January, 2019), Airtel Mobile Commerce

Madagascar B.V. (incorporated w.e.f. 29th January, 2019), Airtel Mobile

Commerce Malawi B.V. (incorporated w.e.f. 29th January, 2019), Airtel

Mobile Commerce Rwanda B.V. (incorporated w.e.f. 29th January,

2019), Airtel Mobile Commerce Tchad B.V. (incorporated w.e.f. 29th

January, 2019), Airtel Mobile Commerce Uganda B.V. (incorporated

w.e.f. 29th January, 2019), Airtel Mobile Commerce Zambia B.V.

(incorporated w.e.f. 29th January, 2019), Airtel International LLP

(incorporated w.e.f. 27th March, 2019, Tigo Rwanda Limited (merged

with Airtel Rwanda Ltd w.e.f. July 3, 2018), Airtel Money Trust,

Seychelles Cable Systems Company Limited (Associate), Airtel Mobile

Commerce Gabon B.V., Airtel Mobile Commerce Niger B.V., Airtel

Mobile Commerce DRC B.V. and Airtel Money Kenya Limited.

Disclaimer: By reading this presentation you agree to be bound by the

following conditions.

The information contained in this presentation in relation to Airtel Africa

plc ("Airtel Africa") and its subsidiaries has been prepared solely for use

at this presentation. The presentation is not directed to, or intended for

distribution to or use by, any person or entity that is a citizen or resident

or located in any jurisdiction where such distribution, publication,

availability or use would be contrary to law or regulation or which would

require any registration or licensing within such jurisdiction.

References in this presentation to "Airtel Africa", "Group", "we", "us" and

"our" when denoting opinion refer to Airtel Africa plc and its subsidiaries.

Forward-looking statement

This document contains certain forward-looking statements including

"forward-looking" statements made within the meaning of Section 21E of

the United States Securities Exchange Act of 1934, regarding our

intentions, beliefs or current expectations concerning, amongst other

things, our results of operations, financial condition, liquidity, prospects,

growth, strategies and the economic and business circumstances

occurring from time to time in the countries and markets in which the

Group operates.

These statements are often, but not always, made through the use of

words or phrases such as "believe," "anticipate," "could," "may," "would,"

"should," "intend," "plan," "potential," "predict," "will," "expect," "estimate,"

"project," "positioned," "strategy," "outlook", "target" and similar

expressions.

It is believed that the expectations reflected in this document are

reasonable, but they may be affected by a wide range of variables that

could cause actual results to differ materially from those currently

anticipated.

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All such forward-looking statements involve estimates and assumptions

that are subject to risks, uncertainties and other factors that could cause

actual future financial condition, performance and results to differ

materially from the plans, goals, expectations and results expressed in

the forward-looking statements and other financial and/or statistical data

within this communication.

Among the key factors that could cause actual results to differ materially

from those projected in the forward-looking statements are uncertainties

related to the following: the impact of competition from illicit trade; the

impact of adverse domestic or international legislation and regulation;

changes in domestic or international tax laws and rates; adverse litigation

and dispute outcomes and the effect of such outcomes on Airtel Africa’s

financial condition; changes or differences in domestic or international

economic or political conditions; the ability to obtain price increases and

the impact of price increases on consumer affordability thresholds;

adverse decisions by domestic or international regulatory bodies; the

impact of market size reduction and consumer down-trading;

translational and transactional foreign exchange rate exposure; the

impact of serious injury, illness or death in the workplace; the ability to

maintain credit ratings; the ability to develop, produce or market new

alternative products and to do so profitably; the ability to effectively

implement strategic initiatives and actions taken to increase sales

growth; the ability to enhance cash generation and pay dividends and

changes in the market position, businesses, financial condition, results

of operations or prospects of Airtel Africa.

Past performance is no guide to future performance and persons needing

advice should consult an independent financial adviser. The forward-

looking statements contained in this document reflect the knowledge and

information available to Airtel Africa at the date of preparation of this

document and Airtel Africa undertakes no obligation to update or revise

these forward-looking statements, whether as a result of new

information, future events or otherwise. Readers are cautioned not to

place undue reliance on such forward-looking statements.

No statement in this communication is intended to be, nor should be

construed as, a profit forecast or a profit estimate and no statement in

this communication should be interpreted to mean that earnings per

share of Airtel Africa plc for the current or any future financial periods

would necessarily match, exceed or be lower than the historical

published earnings per share of Airtel Africa plc.

Financial data included in this document are presented in US$ rounded

to the nearest million. Therefore, discrepancies in the tables between

totals and the sums of the amounts listed may occur due to such

rounding. The percentages included in the tables throughout the

document are based on numbers calculated to the nearest $1,000 and

therefore minor rounding differences may results in the tables.

No profit or earnings per share forecasts

No statement in this communication is intended to be, nor should be

construed as, a profit forecast or a profit estimate and no statement in

this communication should be interpreted to mean that earnings per

share of Airtel Africa for the current or any future financial periods would

necessarily match, exceed or be lower than the historical published

earnings per share of Airtel Africa.

Audience

The material in this presentation is provided for the purpose of giving

information about Airtel Africa and its subsidiaries to investors only and

is not intended for general consumers. Airtel Africa, its directors,

employees, agents or advisers do not accept or assume responsibility to

any other person to whom this material is shown or into whose hands it

may come and any such responsibility or liability is expressly disclaimed.

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TABLE OF CONTENTS

Section 1 Performance at a glance 4

Section 2 Financial Highlights

2.1 Consolidated - Summary of Consolidated Financial Statements 5

2.2 Consolidated - Summary of Statement of Financial Position 6

Section 3 Segment Wise – Summary of Financial Statements

3.1 Summarized Statement of Operations 7

3.2 Segment Wise Contribution 10

Section 4 Product wise – Summary of Financial Statements

4.1 Mobile Services – Summarized Statement of Operations 11

4.2 Mobile Services – Segment Wise Contribution 15

4.3 Mobile Money – Summarized Statement of Operations 16

4.4 Product Wise Contribution 17

Section 5 Operating Highlights 18

Section 6 Management Discussion and Analysis

6.1 Reporting Methodology 22

6.2 Key Company Developments 22

6.3 Results of Operations 25

Section 7 Detailed Financial and Related Information 30

Section 8 Net Debt and Cost Schedules 37

Section 9 Trends and Ratio Analysis 39

Section 10 Key Accounting Policies 52

Section 11 Glossary 57

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SECTION 1

PERFORMANCE AT A GLANCE

Financial Year Ended Quarter Ended

2020 2019 2018 Sep-20 Jun-20 Mar-20 Dec-19 Sep-19

Operating Highlights

Total Customer Base 000’s 110,604 98,851 89,262 116,371 111,461 110,604 107,140 103,881

Total Minutes on Netw ork Mn Min 250,080 207,334 159,549 80,375 71,891 68,870 65,086 60,795

Data MBs Mn MBs 710,510 392,631 237,563 293,919 279,541 219,015 189,798 162,394

Mobile Money Transaction Value US$ Mn 30,224 23,582 18,888 11,637 9,038 8,031 8,001 7,442

Netw ork Tow ers Nos 22,909 21,059 19,731 24,246 23,471 22,909 22,253 21,936

Total Employees Nos 3,363 3,075 3,273 3,453 3,432 3,363 3,286 3,184

No. of countries of operation Nos 14 14 14 14 14 14 14 14

Consolidated Financials (US$ Mn)

Ongoing Operations

(Reported Currency)

Revenue US$ Mn 3,422 3,077 2,910 965 851 899 883 844

EBITDA US$ Mn 1,515 1,332 1,139 437 375 397 399 372

EBIT US$ Mn 905 796 600 269 210 244 245 219

Cash profit from operations before

Derivative and Exchange FluctuationsUS$ Mn 1,210 1,001 786 357 295 325 326 293

Profit before tax (before exceptional items) US$ Mn 533 441 158 177 111 97 167 153

Net Income (after NCI) US$ Mn 370 412 (138) 70 42 65 90 90

Capex US$ Mn 642 630 411 149 66 246 150 147

Operating Free Cash Flow (EBITDA - Capex) US$ Mn 873 702 728 287 309 151 249 225

Net Debt US$ Mn 3,247 4,005 7,755 3,459 3,425 3,247 3,233 3,191

Shareholder's Equity US$ Mn 3,388 2,626 (1,085) 3,407 3,304 3,388 3,529 3,556

Non-controlling interests ('NCI') US$ Mn (107) (196) (232) (89) (93) (107) (168) (171)

Total Equity US$ Mn 3,281 2,429 (1,317) 3,318 3,211 3,281 3,361 3,385

Total Capital Employed US$ Mn 6,528 6,435 6,438 6,777 6,636 6,528 6,595 6,576

Key Ratios

EBITDA Margin % 44.3% 43.3% 39.1% 45.3% 44.1% 44.1% 45.2% 44.1%

EBIT Margin % 26.5% 25.9% 20.6% 27.8% 24.7% 27.2% 27.7% 25.9%

Net Profit Margin % 10.8% 13.4% (4.7%) 7.3% 4.9% 7.2% 10.1% 10.6%

Net Debt to EBITDA (LTM) Times 2.1 3.0 6.8 2.2 2.2 2.1 2.2 2.3

Net Debt to EBITDA (Annualised) Times 2.1 3.0 6.8 2.0 2.3 2.0 2.0 2.1

Interest Coverage ratio Times 5.1 3.9 3.5 5.8 5.1 5.5 5.4 4.8

Return on Equity (Pre-Tax) % 18.3% 15.3% 0.0% 17.0% 16.9% 18.3% 18.5% 16.0%

Return on Equity (Post-Tax) % 10.9% 15.7% 0.0% 7.8% 8.7% 10.9% 11.0% 11.8%

Return on Capital employed % 14.0% 12.4% 9.2% 14.6% 13.9% 13.7% 13.2% 12.6%

IFRSParticulars Unit IFRS

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SECTION 2

FINANCIAL HIGHLIGHTS

The financial information contained in this report is drawn from Airtel Africa plc’s interim unaudited condensed consolidated financial

statements prepared under IAS 34 for the six months ended 30 September 2020 and from Airtel Africa plc’s Audited Consolidated Financial

Statements for the year ended 31 March 2020 prepared under International Financial Reporting Standard (IFRS) for the comparative periods

presented.

2.1 Summary of Consolidated Financial Statements

2.1.1 Consolidated Summarized Statement of Operations – (in Reported Currency)

Amount in US$ Mn, except ratios

Quarter Ended Half Year Ended

Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 965 844 14% 1,815 1,640 11%

EBITDA 437 372 17% 812 719 13%

EBITDA / Revenue 45.3% 44.1% 1.2 pp 44.7% 43.9% 0.8 pp

EBIT 269 219 23% 479 416 15%

Finance cost (net) 92 66 39% 191 148 29%

Share of results of Associate (0) (0) (129%) (1) (0) (40%)

Profit before tax (before exceptional items) 177 153 16% 288 270 7%

Income tax expense 85 68 26% 146 116 26%

Profit after tax (before exceptional items) 92 85 8% 142 154 (8%)

Non Controlling Interest (before exceptional items) 17 6 166% 29 13 130%

Net Income (before exceptional items) 75 79 (5%) 113 141 (20%)

Exceptional Items (net of tax) 4 (11) 136% (3) (74) 96%

Profit after tax (after exceptional items) 88 96 (9%) 145 228 (37%)

Non Controlling Interest 18 6 207% 33 13 162%

Net Income (after NCI) 70 90 (21%) 112 215 (48%)

Capex 149 147 2% 216 246 (12%)

Operating Free Cash Flow (EBITDA - Capex) 287 225 28% 596 473 26%

Total Capital Employed 6,777 6,576 3% 6,777 6,576 3%

Particulars

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2.1.2 Consolidated Summarized Statement of Operations – (in Constant Currency)



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 963 805 20% 1,818 1,562 16%

EBITDA 436 353 24% 813 681 19%


EBIT 269 205 31% 480 390 23%

Capex 149 147 2% 216 246 (12%)

Operating Free Cash Flow (EBITDA - Capex) 287 206 39% 597 435 37%

Particulars

Closing currency rates as on March 31, 2020 considered for Constant currency. Reported currency rates considered for Capex.

2.2 Consolidated - Summary of Statement of Financial Position (in Reported Currency)

Amount in US$ Mn

As at As at

Sep 30, 2020 Mar 31, 2020

Assets

Non-current assets 7,782 7,654

Current assets 1,830 1,671

Total assets 9,612 9,325

Liabilities

Current liabilities 3,243 2,488

Non-current liabilities 3,051 3,556

Total liabilities 6,294 6,044

Net current liability (1,413) (817)

Net Assets 3,318 3,281

Equity

Equity attributable to ow ners of the company 3,407 3,388

Non-controlling interests ('NCI') (89) (107)

Total equity 3,318 3,281

Total Equity and liabilities 9,612 9,325

Particulars

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SECTION 3

SEGMENT WISE – SUMMARY OF FINANCIAL STATEMENTS Segmental reporting includes all businesses of that geography.

3.1 Summarized Statement of Operations

3.1.1 Nigeria In Reported Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 377 327 15% 718 640 12%

EBITDA 204 174 18% 386 341 13%


EBIT 141 129 10% 271 252 8%

Capex 67 62 8% 97 115 (15%)

Operating Free Cash Flow

(EBITDA - Capex)137 112 23% 289 226 28%

Particulars

In Constant Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 379 307 23% 721 600 20%

EBITDA 205 163 26% 388 319 22%


EBIT 142 121 17% 272 236 16%

Capex 67 62 8% 97 115 (15%)


(EBITDA - Capex)138 101 37% 290 204 43%

Particulars


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3.1.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)

In Reported Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 355 301 18% 659 578 14%

EBITDA 163 123 33% 292 233 25%


EBIT 110 65 70% 184 116 59%

Capex 62 30 106% 81 60 36%


(EBITDA - Capex)101 93 10% 211 173 22%

Particulars




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 358 284 26% 664 545 22%

EBITDA 164 114 44% 293 217 35%


EBIT 110 59 87% 185 106 74%

Capex 62 30 106% 81 60 36%


(EBITDA - Capex)102 84 21% 212 157 35%

Particulars


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3.1.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 236 217 9% 445 426 5%

EBITDA 73 76 (4%) 146 140 4%

EBITDA / Revenue 30.8% 34.9% -4.1 pp 32.8% 32.9% 0.0 pp

EBIT 23 29 (20%) 47 47 1%

Capex 20 54 (63%) 36 69 (48%)


(EBITDA - Capex)53 22 145% 110 71 55%

Particulars




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 230 216 6% 441 422 4%

EBITDA 71 76 (6%) 145 139 4%

EBITDA / Revenue 30.9% 35.0% -4.0 pp 32.9% 33.0% -0.1 pp

EBIT 23 29 (21%) 47 47 (0%)

Capex 20 54 (63%) 36 69 (48%)


(EBITDA - Capex)51 21 142% 109 71 54%

Particulars


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3.2 Segment Wise Contribution (in Constant Currency)

Quarter Ended:


Quarter Ended Sep-20

Revenue % of Total EBITDA % of Total Capex % of Total

Nigeria 379 39% 205 47% 67 45%

East Africa 358 37% 164 38% 62 41%

Francophone Africa 230 24% 71 16% 20 13%

Total before Elimnation/Others 966 100% 440 101% 149 99%

Eliminations / Others (3) (0%) (4) (1%) 1 1%

Total 963 100% 436 100% 149 100%

Region


Half Year Ended:


Half Year Ended Sep-20


Nigeria 721 40% 388 48% 97 45%

East Africa 664 37% 293 36% 81 38%


Total before Elimnation/Others 1,826 100% 826 102% 215 100%


Total 1,818 100% 813 100% 216 100%

Region


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SECTION 4

PRODUCT WISE – SUMMARY OF FINANCIAL STATEMENTS

4.1 Mobile Services- Summarized Statement of Operations

4.1.1 Consolidated Summarized Statement of Operations In Reported Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 891 790 13% 1,689 1,540 10%

EBITDA 392 335 17% 737 644 14%


EBIT 228 186 23% 420 347 21%

Capex 147 145 1% 211 241 (12%)


(EBITDA - Capex)245 189 29% 526 403 31%

Particulars




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 889 754 18% 1,692 1,468 15%

EBITDA 392 317 24% 738 608 21%


EBIT 229 174 31% 421 324 30%

Capex 147 145 1% 211 241 (12%)


(EBITDA - Capex)245 172 43% 528 368 43%

Particulars


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4.1.2 Nigeria In Reported Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 377 326 16% 718 637 13%

EBITDA 204 172 19% 386 337 14%


EBIT 142 127 11% 271 248 9%

Capex 67 62 8% 97 115 (15%)


(EBITDA - Capex)137 110 25% 289 222 30%

Particulars




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 378 306 24% 721 597 21%

EBITDA 205 162 27% 388 316 23%


EBIT 142 120 19% 273 233 17%

Capex 67 62 8% 97 115 (15%)


(EBITDA - Capex)138 99 39% 291 201 44%

Particulars


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4.1.3 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda) In Reported Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 298 263 13% 562 507 11%

EBITDA 128 99 30% 231 190 22%


EBIT 76 42 81% 125 75 67%

Capex 60 29 112% 78 58 35%


(EBITDA - Capex)68 70 (3%) 153 132 16%

Particulars




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 301 248 21% 566 478 18%

EBITDA 129 92 40% 232 177 31%


EBIT 76 38 100% 125 68 85%

Capex 60 29 112% 78 58 35%


(EBITDA - Capex)69 63 8% 154 119 29%

Particulars


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4.1.4 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles) In Reported Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 218 203 8% 414 398 4%

EBITDA 60 64 (6%) 121 116 4%


EBIT 10 16 (36%) 23 23 (2%)

Capex 20 54 (64%) 35 68 (48%)


(EBITDA - Capex)40 9 335% 86 49 77%

Particulars




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 213 202 6% 410 395 4%

EBITDA 59 63 (7%) 120 116 4%


EBIT 10 16 (37%) 23 24 (3%)

Capex 20 54 (64%) 35 68 (48%)


(EBITDA - Capex)39 9 333% 85 48 77%

Particulars


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4.2 Mobile Services - Segment Wise Contribution (in Constant Currency) Quarter Ended:




Nigeria 378 43% 205 52% 67 46%

East Africa 301 34% 129 33% 60 41%




Total 889 100% 392 100% 147 100%

Region


Half Year Ended:




Nigeria 721 43% 388 53% 97 46%

East Africa 566 33% 232 31% 78 37%




Total 1,692 100% 738 100% 211 100%

Region


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4.3 Mobile Money - Summarized Statement of Operations

4.3.1 Consolidated Summarized Statement of Operations In Reported Currency



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 100 78 28% 181 146 24%

EBITDA 49 38 29% 88 70 25%


EBIT 47 37 28% 83 67 23%

Capex 2 2 13% 4 3 15%


(EBITDA - Capex)47 36 30% 84 67 26%

Particulars




Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Revenue 100 74 34% 181 139 30%

EBITDA 48 36 35% 88 67 31%


EBIT 46 35 33% 83 64 29%

Capex 2 2 13% 4 3 15%


(EBITDA - Capex)47 34 36% 84 64 32%

Particulars


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4.4 Product Wise Contribution (in Constant Currency)

Quarter Ended:




Mobile Services 889 92% 392 90% 147 98%

Mobile Money 100 10% 48 11% 2 1%



Total 963 100% 436 100% 149 100%

Products


Half Year Ended:




Mobile Services 1,692 93% 738 91% 211 98%

Mobile Money 181 10% 88 11% 4 2%



Total 1,818 100% 813 100% 216 100%

Products


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SECTION 5

OPERATING HIGHLIGHTS

The financial figures used for computing ARPU & Revenue per Site are based on Constant Currency. 5.1 Operational Performance (Quarter Ended)

5.1.1 Consolidated Operational Performance

Parameters Unit Sep-20 Jun-20Q-on-Q

ChangeSep-19

Y-on-Y

Change

Customer Base 000's 116,371 111,461 4.4% 103,881 12.0%

Net Additions 000's 4,910 857 473.1% 4,211 16.6%

Monthly Churn % 5.3% 5.7% -0.4 pp 4.5% 0.8 pp

Average Revenue Per User (ARPU) US$ 2.8 2.6 8.8% 2.6 6.8%

Voice

Voice Revenue US$ Mn 517 456 13.4% 464 11.5%

Minutes on the netw ork Mn 80,375 71,891 11.8% 60,795 32.2%

Voice Average Revenue Per User (ARPU) US$ 1.5 1.4 9.6% 1.5 (0.4%)

Voice Usage per customer min 235 218 8.1% 199 18.1%

Data

Data Revenue US$ Mn 283 267 6.0% 215 31.3%

Data Customer Base 000's 39,596 36,972 7.1% 31,910 24.1%

As % of Customer Base % 34.0% 33.2% 0.9 pp 30.7% 3.3 pp

Total MBs on the netw ork Mn MBs 293,919 279,541 5.1% 162,394 81.0%

Data Average Revenue Per User (ARPU) US$ 2.5 2.5 (0.4%) 2.3 6.9%

Data Usage per customer MBs 2,576 2,607 (1.2%) 1,748 47.3%

M obile M oney

Transaction Value US$ Mn 11,637 9,038 28.7% 7,442 56.4%

Transaction Value per Sub US$ 199 164 21.4% 166 20.3%

Mobile Money Revenue US$ Mn 100 81 22.3% 74 33.9%

Active Customers 000's 20,120 18,529 8.6% 15,521 29.6%

Mobile Money ARPU US$ 1.7 1.5 15.4% 1.7 3.0%

Network and Coverage

Netw ork tow ers Nos 24,246 23,471 775 21,936 2,310

Owned Towers Nos 4,561 4,569 (8) 4,461 100

Leased Towers Nos 19,685 18,902 783 17,475 2,210

Of w hich Mobile Broadband tow ers Nos 22,250 21,171 1,079 18,274 3,976

Total Mobile Broadband Base stations Nos 63,705 51,963 11,742 40,187 23,518

Data Capacity TB/day 10,253 8,371 22.5% 6,146 66.8%

Revenue Per Site Per Month US$ 13,408 12,257 9.4% 12,361 8.5%

Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for Constant currency.

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5.2 Nigeria Operational Performance


ChangeSep-19

Y-on-Y

Change

Customer Base 000's 44,054 42,513 3.6% 39,512 11.5%

Net Additions 000's 1,541 757 103.7% 2,044 (24.6%)

Monthly Churn % 6.1% 5.7% 0.4 pp 4.7% 1.4 pp


Voice



Voice Average Revenue Per User (ARPU) US$ 1.7 1.6 5.9% 1.6 2.9%


Data





Data Average Revenue Per User (ARPU) US$ 2.5 2.4 4.0% 2.2 14.4%



Netw ork tow ers Nos 10,347 9,802 545 8,878 1,469

Owned Towers Nos 199 204 (5) 261 (62)

Leased Towers Nos 10,148 9,598 550 8,617 1,531

Of which Mobile Broadband towers Nos 10,002 9,326 676 7,695 2,307





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5.3 East Africa Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)


ChangeSep-19

Y-on-Y

Change

Customer Base 000's 51,265 48,757 5.1% 45,007 13.9%

Net Additions 000's 2,508 123 1,940.1% 1,955 28.2%

Monthly Churn % 4.5% 5.7% -1.2 pp 3.8% 0.7 pp


Voice



Voice Average Revenue Per User (ARPU) US$ 1.1 1.0 15.0% 1.1 3.0%


Data





Data Average Revenue Per User (ARPU) US$ 2.0 2.1 (4.2%) 2.0 3.0%



Netw ork tow ers Nos 9,193 9,039 154 8,678 515

Owned Towers Nos 2,544 2,535 9 2,421 123

Leased Towers Nos 6,649 6,504 145 6,257 392

Of which Mobile Broadband towers Nos 8,039 7,880 159 7,386 653

Total Mobile Broadband Base stations Nos 22,567 22,071 496 19,564 3,003




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5.4 Francophone Africa Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)


ChangeSep-19

Y-on-Y

Change

Customer Base 000's 21,052 20,190 4.3% 19,362 8.7%

Net Additions 000's 862 (23) 3,908.1% 212 307.1%

Monthly Churn % 5.5% 5.9% -0.4 pp 5.8% -0.3 pp

Average Revenue Per User (ARPU) US$ 3.7 3.5 6.5% 3.7 (0.4%)

Voice

Voice Revenue US$ Mn 131 117 11.7% 132 (0.9%)


Voice Average Revenue Per User (ARPU) US$ 2.1 1.9 9.0% 2.3 (7.2%)


Data



As % of Customer Base % 26.9% 27.7% -0.8 pp 22.2% 4.7 pp


Data Average Revenue Per User (ARPU) US$ 3.5 3.6 (3.0%) 3.7 (4.1%)

Data Usage per customer MBs 1,889 1,882 0.4% 1,202 57.2%


Netw ork tow ers Nos 4,706 4,630 76 4,380 326

Owned Towers Nos 1,818 1,830 (12) 1,779 39

Leased Towers Nos 2,888 2,800 88 2,601 287

Of which Mobile Broadband towers Nos 4,209 3,965 244 3,193 1,016

Total Mobile Broadband Base stations Nos 11,047 10,634 413 7,414 3,633

Data Capacity TB/day 1,582 1,527 3.6% 999 58.4%

Revenue Per Site Per Month US$ 16,363 15,222 7.5% 16,575 (1.3%)


.

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SECTION 6

MANAGEMENT DISCUSSION AND ANALYSIS

6.1 Reporting Methodology

The results for the six months ended 30 September 2020 are

unaudited and in the opinion of management, include all

adjustments necessary for the fair presentation of the results

of the same period. The financial information has been

prepared based on International Accounting Standard 34

(IAS 34) and apply the same accounting policies,

presentation and methods of calculation as those followed in

the preparation of the Group’s annual consolidated financial

statements for the year ended 31 March 2020 except to the

extent required/ prescribed by IAS 34. This report should be

read in conjunction with audited consolidated financial

statements and related notes for the year ended 31 March

2020. The comparative information has been drawn based

on Airtel Africa plc’s Audited Consolidated Financial

Statements for the year ended 31 March 2020 prepared

under International Financial Reporting Standard (IFRS).

The information, apart from the extract of the Financial

Statements in Section 7, is on underlying basis and

exceptional items are shown separately. This enables an

organic comparison of results with past periods.

6.2 Key company developments

COVID-19

At the beginning of the pandemic, most governments in the

countries where we operate acted swiftly to implement and enforce

restrictions on the movement of people at the very early stage of

the contagion. These swift actions coupled with a continent which

benefits from low population density, less frequent travel, and

experience in dealing with contagious diseases has resulted in

lower infection rates in sub-Saharan Africa. In subsequent months

some of these restrictions were eased with local economies

improving, although consumers still feel cautious about social and

working habits.

During these times, the telecoms industry has emerged as a key

and essential service for these economies, allowing customers to

work remotely, reduce their travels, keep them connected and

allow access to affordable entertainment.

At Airtel Africa we worked to ensure the safety of our employees,

customers and partners and we have continued to work closely

with governments, regulators, and suppliers to ensure our network

remained fully operational and customers could access our

services, and continued to support the economies of these

countries and the communities we serve.

A strong focus on execution and a strong risk management

approach, coupled with the resilience of the telecom sector,

contributed to delivering revenue growth of 13% in constant

currency for the 3 months ended on 30 June 2020, which was the

peak of the pandemic in our footprint. Afterwards, social distancing

rules were eased, during the 3 months ended 30 September 2020,

and performance also improved as the business was largely

unaffected by COVID-19 and delivered revenue growth of 19.6%

in constant currency.

In other parts of the world, a so called second wave has already

started, with many governments reintroducing stricter social

distancing rules, which were relaxed during the summer months.

As Africa lagged the spread of the first wave, it may also lag the

spread of a second wave. Despite the resilience demonstrated by

the business during the course of the first wave, we are constantly

monitoring how the situation is evolving to identify key risks and

put in place adequate mitigation plans to minimise any potential

disruptions from the re-introduction of stricter social distancing

rules.

GOVERNANCE: We have a dedicated executive COVID-19

committee mandated to regularly identify risks, agree on action

plans and monitor their execution. As an outcome of the

committee’s role, the CEO and CFO have updated the Board on

the risks and actions identified whenever relevant. This ensures a

direct channel between local management and executive and non-

executive directors to ensure actions are agreed and executed

quickly.

SAFETY: Our priority is the health and wellbeing of our

employees, outsourced partners and customers, and we are

making every effort to ensure that our OPCOs have taken all

necessary steps to ensure their safety. All offices have an agreed

policy in place for remote working, working in shifts and social

distancing practices, depending on the critical needs of individual

functions. All employees continue to be on full pay and continue to

receive full medical insurance cover which includes any diagnostic

testing and associated physician visits related to COVID 19. We

have also granted immediate paid medical leave for any

employees diagnosed with COVID-19.

The outsourced staff in our call centres continue to work from

home or in a shift rotation where necessary but following strict

social distancing practices. They have all been given the option

and equipment to either work from home or, if necessary, from the

office following strict social distancing practices and regulatory

guidelines. Safety protective equipment and hand sanitisers have

also been made available within our shops to keep both our staff

and customers safe.

The safety of our customers is paramount to us. We have

executed various social educational digital campaigns explaining

best practices during the COVID-19 outbreak, and the importance

of being safe. We have also made a number of sites across our

businesses accessible free of charge to give students continuous

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access to quality education. Our staff across all our OPCOs have

also generously contributed and sacrificed from their salaries a

total of $362k which we have matched like for like as a company

and donated to the respective governments to support the

communities where we operate.

NETWORK and CAPEX: our network remains the main source for

many customers for social interactions, work and entertainment.

The key business continuity plans we implemented at the start of

the pandemic ensured that both active and passive maintenance

services could be safely carried out even when the movement of

people was restricted. During the last 6 months, despite an

increase in data traffic of more than 40%, our network did not

experience any significant disruption.

Our strategy of diversifying sourcing across four major providers

of network equipment is also protecting us from a company or

country-specific supply chain risk.

DISTRIBUTION: our priority was to ensure customers access to

our services. When lockdown restrictions were implemented, we

increased stock levels of SIM cards and recharge vouchers to

ensure availability in our shops and ensure customers could buy

recharges whenever convenient. We also encouraged customers

to use digital methods of recharge, including through USSD, bank

portals or our app. In April 2020 we launched the new MyAirtel

selfcare app in all 14 countries. Using the app, a customer can

check Airtime or Bundles and purchase them using Airtel Money

or any credit or debit cards. It also has Airtel Money features such

as Send Money to Airtel and other operators, Pay Bills, Pay

Merchants, Scan and pay using Airtel’s or Mastercard’s QR codes

and virtual cards Airtel Money and E-Recharge to minimise the

impact of any possible disruption to our distribution network. As

lockdown restrictions were eased we expanded our distribution, in

line with our strategy, and we continued to carry a higher amount

of stock to mitigate the risks possible future restrictions on the

movement of people could have on our stock levels and the ability

of customers to access our recharge vouchers.

MOBILE MONEY: during the initial phase of the pandemic mobile

revenue growth slowed down to 26.3% as the business was

impacted by social distancing measures and non-essential service

closures, reducing the ability of customers to deposit and withdraw

cash. Additionally, several governments asked mobile money

operators to waive fees on certain transactions, including person-

to-person and merchant payments. Afterwards, in the 3 months

ended 30 September 2020, as lockdown restrictions were eased

and most fees on transaction reinstated, revenue growth for the

period was 33.9%, up 7.6% from the prior quarter. We also

continue to engage with governments and regulators to allow

certain mobile money outlets to be classified as essential services

so that customers can fully access mobile money services despite

restrictions on the movement of people. Mobile money represents

10% of the Group’s revenue.

LIQUIDITY: we continue to benefit from a strong financial position.

Free cash flow increased 52% in the last 6 months and EBITDA

margin continued to improve by 0.8pp to 44.7%. Our net debt to

EBITDA ratio decreased to 2.2x, compared to the same period in

the prior year (from 2.3x), and cash balances in conjunction with

nearly $700 Mn of committed undrawn facilities ensure we can

meet our financial obligations. We have $2.4 bn in long-term bonds

with the first repayment of €750 Mn due in May 2021. The next

major bond repayment of $505 Mn is due in March 2023. In the

last financial year, we extended the maturity of $254 Mn of loans

due in December 2020 and January 2021 by an average of 18

months to two years, further improving our liquidity position in this

financial year. Additionally, we agreed longer payment terms up to

around 12 months with strategic vendors in certain markets in

order to continue invest in modernising the network while

increasing liquidity.

We have identified several ways to retain cash, reduce costs and

mitigate risks from COVID-19. We have continued to invest in

revenue driven expenditures while reducing discretionary spend.

Additionally, we benefited from lower travel and facility expenses

during the period as a result of travel bans and work from home

practices.

We continued to invest in our network and our commitment to

spend our planned $650 Mn to $700 Mn has not changed. Capex

in the 6 months ended 30 September was $216 Mn, a reduction of

12.4% compared to the comparable period in the prior year,

however this was largely due the impact of import logistics during

the pandemic period. In a worst-case scenario, we would be able

to reduce our capex budget significantly without compromising

network quality by prioritising expenditure.

FOREIGN EXCHANGE: The global economic slowdown

combined with lower oil and commodity prices has resulted in

currencies devaluing across our markets, including the Nigerian

naira, Kenyan shilling, Ugandan shilling and Zambian kwacha. By

far our largest exposure is in Nigeria, which represents 40% of our

revenue and 48% of EBITDA. On a 12-month basis, we estimate

that a 1% Nigerian naira devaluation will have a negative $14 Mn

impact on revenue, $8 Mn on EBITDA and $7 Mn on finance costs.

Other significant updates

Dividend

The Board approved a new progressive dividend policy as a result

of the continued strong business performance, significant

opportunities to invest in future growth and the aim to continue to

reduce leverage.

The newly adopted dividend policy aims to grow the dividend

annually by a mid to high single digit percentage from a base of $4

cents per share for FY 2021, until reported leverage (calculated as

net debt to EBITDA) falls below 2.0x.

At the point when reported leverage (calculated as net debt to

EBITDA) is below 2.0x, the Board will reassess the dividend policy

in light of the growth outlook for the Group.

Additional spectrum

In June 2020, Airtel Malawi plc was allocated a spectrum of 10

MHz in the 2600 band.

Abandonment of merger of Airtel Networks Kenya Limited

with Telkom Kenya Limited

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In August 2020, Airtel Africa plc announced that its subsidiary

Airtel Networks Kenya Limited ("Airtel Kenya") and Telkom Kenya

Limited ("Telkom") have decided to no longer pursue completion

of the M&A transaction. The transaction was announced in

February 2019 and was subject to the satisfaction of various

conditions precedent, including regulatory approvals. Despite

Airtel Africa plc and Telkom’s respective endeavours to reach a

successful closure, the transaction has gone through a very

lengthy process which has led the parties to reconsider their

stance.

Partnership with UNICEF

In May 2020, Airtel Africa announced a partnership with UNICEF

aimed at providing children with access to remote learning and

enabling access to cash assistance for their families via mobile

cash transfers. Under this partnership, UNICEF and Airtel Africa

will use mobile technology to benefit an estimated 133 Mn school

age children currently affected by school closures in 13 countries

across sub-Saharan Africa during the COVID-19 pandemic.

Mobile money

(a) Partnership with remittance leading institutions

Airtel Africa entered into several strategic partnerships with

MoneyGram, Mukuru and WorldRemit. Through these

partnerships, more than 20 Mn Airtel Money customers in 12

countries can transfer and receive funds across the globe directly

from and into their mobile money wallets on their phone. Mobile

money service alliances with these leading international money

transfer or remittance service providers will extensively enhance

the customer access to the digital world.

(b) Partnership with Standard Charted Bank

In August 2020, Airtel Africa announced a strategic partnership

with Standard Chartered Bank, a leading international banking

group, to drive financial inclusion across key markets in Africa by

providing customers with increased access to mobile financial

services. Standard Chartered and Airtel Africa work together to co-

create new, innovative products aimed at enhancing the

accessibility of financial services and ultimately, better serve

people across Africa. In line with this, Airtel Money's customers will

be able to make real-time online deposits and withdrawals from

Standard Chartered bank accounts, receive international money

transfers directly to their wallets, and access savings products

amongst other services.

(c) Partnership with Mastercard, Samsung and Asante

In September 2020, Airtel Africa announced an expansion of its

partnership with Mastercard by launching a Pay-on-Demand

payments platform and drive the digital economy across Africa.

This Pay-on-Demand platform enables safe, secure, and

convenient consumer financing via Samsung devices with an

embedded Knox security platform, through Airtel Africa’s network.

The partnership facilitates usage-based payments and builds

creditworthiness.

These partnerships align with the Group’s strategy of expanding

the range and depth of Airtel Money offerings to drive customer

growth and penetration.

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6.3 Results of Operations

The financial results presented in this section are compiled based on the consolidated financial statements prepared in accordance with International Financial

Reporting Standards (IFRS) and the underlying information.

Key Highlights – For half year ended September 30, 2020

Customer base grew by 12.0% to 116.4 Mn

Revenue on reported basis increased by 10.7% to $1,815 Mn, with Q2 revenue growth of 14.3%

Revenue growth in constant currency was 16.4% in H1, and 19.6% in Q2. Growth was recorded across all regions: Nigeria up 20.2%, East Africa up 21.9% and Francophone Africa up 4.4%, and services, with voice revenue up by 7.0%, data by 33.4% and mobile money by 30.4%

EBITDA increased 12.8% to $812 Mn while constant currency EBITDA growth was 19.3%

Reported EBITDA margin was 44.7%, up by 0.8pp (1.1pp in constant currency)

Operating profit increased by 19.5% to $472 Mn, an increase of 28.3% in constant currency

Free cash flow was $319 Mn compared to $210 Mn in the same period last year

Basic EPS was $3.0¢, down 52.9% largely as a result of exceptional items and a one-off derivative gain incurred in the prior year. Excluding these one-off benefits basic EPS would be up 19%. EPS before exceptional items was $3.0¢

The board declared an interim dividend of $1.5¢ per share in line with the new progressive dividend policy to focus on growth opportunities and faster deleveraging. The new policy aims to grow the dividend annually by a mid to high-single digit percentage from a base of $4 cents per share for FY 2021, until reported leverage falls below 2.0x

Key Highlights – For the Quarter ended September 30, 2020

Reported revenue increased by 14.3% to $ 965 Mn, with constant currency growth of 19.6%.

Revenue growth of 19.6% in constant currency was driven by growth across all regions: Nigeria up 23.1%, East Africa up 26.0% and

Francophone Africa up 6.4%.

Growth was broad based across all services with revenue in Voice, Data and Mobile Money up by 11.5%, 31.3% and 33.9% respectively

Reported EBITDA was $ 437 Mn, up 17.5%, while constant currency EBITDA growth was 23.8%

EBITDA margin in reported currency was 45.3%, an increase of 1.2pp, while increase of 1.5pp in constant currency terms

Results for the half year ended on September 30, 2020

6.4.1 Airtel Africa Consolidated

These results, which include the impact of the COVID-19 impact,

demonstrate that Airtel Africa is a highly resilient business with an

effective strategy, delivering strong growth in both customer base

and revenue and expansion of EBITDA margin. This performance

continues to be underpinned by a strong focus on the execution of

our strategy which is capturing growth opportunities in a fast-

growing region that is vastly underpenetrated in terms of mobile

and banking services. As a result, we were able to deliver double-

digit revenue growth of 15.3% in mobile services (9.7% on a

reported basis) and 30.4% growth in mobile money (24.3% on a

reported basis).

Basic EPS was at $3.0 cents, down by 52.9%, as a result of higher

other finance costs due to a $46 Mn derivative gain in the prior

period, an increase in tax charges due to higher operating profit

and withholding tax on dividends and the recognition in the prior

year of one-off gain of $72 Mn related to the expired indemnity to

certain pre-IPO investors which was accounted for as an

exceptional item. Excluding exceptional items and the one-off $46

Mn derivative gain basic eps would be up 19%.

In the 6 months, ended 30 September 2020, revenue on a reported

basis increased by 10.7%, with constant currency growth of 16.4%

partially offset by currency devaluation, mainly in Nigeria (6.5%),

Zambia (51%) and Kenya (4.5%). As restrictions on movement of

people eased in Q2’21, reported revenue growth accelerated to

14.3% and 19.6% in constant currency. Constant currency growth

of 16.4% was largely driven by the customer base growth of

12.0%, to 116.4 Mn and ARPU growth of 4.3% in constant

currency. Revenue growth was recorded across all the regions:

Nigeria up 20.2%, East Africa up 21.9% and Francophone Africa

up 4.4%. Revenue growth was broad based across all segments:

voice up 7.0%, data up 33.4% and mobile money up 30.4% in

constant currency terms.

Reported operating profit for the half year was $472 Mn, up by

19.5%, as a result of strong revenue growth and lower operating

expenditures in proportion to revenue. Operating profit in constant

currency grew by 28.3%.

Net finance costs increased by $43 Mn, driven by higher other

finance costs which more than offset the reduced interest costs of

$8.7 Mn as a result of lower debt. Increase in other finance costs

was primarily driven by $46 Mn of derivative gains which occurred

in the comparable period in the prior year.

Total tax charges for the period amounted to $136 Mn as

compared to $88 Mn in the comparable period last year. This was

due to higher operating profit and withholding tax on OPCO

dividends. The H1’20 also benefited from higher deferred tax credit

recognition of $27 Mn as compared to $9.6 Mn in H1’21.

Profit after tax was $145 Mn, down by 36.6%, largely as a result of

the recognition in the prior year of one-off gain of $72 Mn related

to the expired indemnity to certain pre-IPO investors, as well as

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higher finance costs and tax in the current period. Excluding

benefit of exceptional items and one-off derivative gain of $46 Mn

in prior period, profit after tax has increased by 31.8%.

Basic EPS was at $3.0 cents, down by 52.9%, as a result of higher

other finance costs due to a $46 Mn derivative gain in the prior

period, increase in tax charges due to higher operating profit and

withholding tax on dividend, higher non-controlling interest, and

the recognition in the prior year of one-off gain of $72 Mn related

to the expired indemnity to certain pre-IPO investors which was

accounted for as an exceptional item. Excluding exceptional items

and the one-off $46 Mn derivative gain basic eps would be up 19%.

Alternative performance measures

EBITDA amounted to $812 Mn, up by 12.8% in reported currency

and 19.3% in constant currency. The EBITDA growth was driven

by revenue growth of 16.4% and efficiency in operating expenses.

Reported EBITDA margin was 44.7%, an improvement of 0.8pp,

and 1.1pp in constant currency.

Foreign exchange had an adverse impact of $80 Mn on revenue

and $39 Mn on EBITDA, largely driven by the devaluation of the

Nigerian naira and Zambian kwacha.

The effective tax rate was 47% broadly in line with the same period

in the prior year. The effective tax rate at 47% is higher than the

weighted average statutory tax rate of approximately 33%, largely

due to the profit mix between various OPCOs and higher

withholding tax on OPCO dividends. The adjusted effective tax

rate was 44% compared to 37%, largely as a result of recognition

of higher deferred tax credit of $27 Mn in the prior period as against

to $9.6 Mn during the half year ended 30 September 2020.

An exceptional item gain of $3 Mn in September 2020 consisted

of deferred tax credit in Tanzania amounting to $9.6 Mn which was

partially offset by one-off costs of $6.7 Mn in Francophone Africa.

Exceptional items for the half year ended 30 September 2019

mainly consisted of $72 Mn gain related to the expired indemnity

to certain pre-IPO investors.

Free cash flow was $319 Mn, up by 52% largely due to the higher

EBITDA, $5 Mn of reduced interest payments as a result of lower

debt and $31 Mn of lower capex partially offset by an increase of

$49 Mn in cash tax as a result of higher operating profit.

EPS before exceptional items was $3 cents, down by 27.2%, as a

result of higher other finance costs due to the recognition of a $46

Mn derivative gain in the prior period, higher non-controlling

interest, and increase in tax charges due to the higher operating

profit and withholding tax on the dividend. Excluding the one-time

derivative gain of $ 46 Mn, restated eps grew 19%.

6.4.2 Net Debt

Net debt to EBITDA decreased to 2.2x, as the increase in EBITDA

largely offset a slight increase in net debt.

6.4.3 Segment Wise – Africa

6.4.3.1 Nigeria

Constant currency revenue grew by 20.2% while in reported

currency revenue grew by 12.1% as a result of the Nigerian naira

devaluation by 6.5% (YoY). Revenue growth in Q2’21 was 23.1%

as a result of the easing of restrictions on movement of people

which was implemented in the first quarter due the COVID-19

pandemic.

Voice revenue increased 11.4% to $413 Mn, this was driven by

customer base increase of 11.5% which was partially offset by a

0.8% drop in voice ARPU. The customer base growth was driven

by the expansion of our distribution network and the expansion of

network infrastructure. Voice usage per customer increased by

13.5%. On the other hand, the ARPU decline of 0.8% was a result

of a change in the customer mix due to the COVID-19 pandemic

in first quarter.

Data revenue growth of 38.1% in constant currency was supported

by 22.8% growth in data customers and 17.4% growth in data

ARPU. Data customer penetration was up by 4pp from the

previous period and reached 43.1% as of September 2020. The

data customer base growth of 22.8% was a result of the expansion

of 4G network, with 76% of total sites now on 4G. The total data

usage on our network grew by 89.5%, almost double the previous

period. 4G data usage almost tripled and now contributes to 60%

of the total data usage. Data usage per customer was up by 61%

and the data revenue accounted for 35.7% of total revenue, up by

4.6pp from 31.1% in previous period.

EBITDA grew by 13.4% in reported currency, with constant

currency growth of 21.5%. EBITDA margin improved by 0.6pp in

constant currency as a result of opex efficiencies. In Q2’21,

EBITDA grew by 25.7%, with margin improvement of 1.1pp, mainly

as a result of the bad debt collection of Q1’21 from enterprise

customers.

Capital expenditure amounted to $97 Mn as against $115 Mn in

previous period. Capex expenditure was lower during the period

because of lockdown measures in April and May 2020.

Operating free cash flow was $289 Mn, up by 42.6%, largely as a

result of double-digit EBITDA growth and slightly lower capital

expenditure in first half of the year.

6.4.3.2 East Africa

In East Africa, performance continued to be strong with 14.1%

revenue growth in reported currency and 21.9% in constant

currency. Revenue growth in Q2’21 accelerated to 17.7% and

constant currency growth of 26% was supported by growth in all

key business segments. Growth was broad-based across all

services and all markets, as 5 out of 6 OPCOs delivered more than

20% revenue growth. Constant currency revenue growth was

partially offset by the currency devaluation mainly in Zambia and

Kenya.

Voice revenue was $312 Mn, with double-digit growth of 12.8% in

constant currency as a result of a 13.9% customer base growth

and 20.1% growth of voice usage per customer, which was

marginally offset by a 0.4% voice ARPU drop. Total minutes on

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the network were up by 36% led by an increase in voice usage per

customer.

Data revenue amounted to $174 Mn, up by 29.6% supported by

data customer base growth of 22.9% and data ARPU increase of

5.1%. Growth was recorded across all OPCOs, driven by the

expansion of network infrastructure, with 68.6% of the sites now

on our 4G network as compared to 60% during the previous

period. Our mobile network in Zambia, Malawi and Uganda now

consists of 100% of 4G sites. The total data usage on our network

grew by 83.8% and 4G data usage almost tripled and now

contributes 44.6% to the total data usage. Data usage per

customer reached 2.6GB, up by 49.1% from 1.7GB per customer

in previous period.

During the period “Pay as you Go tariffs” in certain markets were

updated and this resulted in a revenue reallocation of bundle

products of voice and data in such tariffs. On a like for like basis

voice and data revenue growth was 8.7% and 38% respectively.

Mobile money revenue grew by 42.9% in constant currency,

largely driven by growth in Zambia, Tanzania, Uganda and Malawi.

Revenue growth of 50.1% in Q2’21 was largely driven by the

removal of certain restrictions on movement as a result of the

COVID-19 pandemic and the reinstatement of P2P fees in the

majority of markets which were temporarily waived in the first

quarter. The revenue growth of 42.9% was driven by a 29.5%

increase in our customer base and a 23.9% growth in the

transaction value per customer, supported by the expansion of our

distribution network.

EBITDA margin was 44.3%, an improvement of 4.0pp in reported

currency and 4.3pp in constant currency, as a result of accelerated

growth in revenue and efficiency improvement in operating

expenses.

Capital expenditure during the period was $81 Mn as against $60

Mn in the previous period. Capex expenditure was higher during

the period as a result of planned network expansion.

Operating free cash flow was at $211 Mn, up by 34.9% as a result

of improvement in EBITDA.

6.4.3.3 Francophone Africa

Performance in Francophone Africa continued to improve, as

reported revenue was up 4.6% and constant currency growth was

4.4%. In Q2’21, reported currency growth of 8.6% benefitted from

a 6.6% appreciation of the Central African and West Africa franc

and 6.4% constant currency growth. Revenue growth of data,

mobile money and other revenue was partially offset by a decline

in voice revenue. Performance across the region was mixed, with

growth in Democratic Republic of the Congo (DRC), Gabon and

Chad partially offset by revenue decline in other countries in the

region.

Voice revenue decreased by 5.3%, largely due to a drop in

interconnect charges in Gabon and Chad, and overall market

weakness in some countries in the region caused by

macroeconomic conditions. Total minutes on network grew by

14.7% while voice usage per customer was up by 7.8%.

Data revenue increased by 29.2% in constant currency, supported

by strong customer growth of 31.9% and data ARPU growth of

1.4%. Additionally, smartphone penetration increased by 4.7pp

and reached 29.4%. Total data usage more than doubled and data

usage per customer was up 73.5%. Our expansion of 4G network

and “More for More” bundle offerings resulted in a data customer

base increase. The 4G data usage more than doubled and now

contributes to 50.6% of total data usage on network.

Mobile money revenue was $49 Mn, with constant currency growth

of 12.5% largely driven by a 31.9% increase in customer base

supported by the expansion of our distribution network through

more agents, kiosks and Airtel Money branches.

EBITDA margin of 32.8%, was broadly flat. In Q2’21, the decline

in EBITDA margin was largely due to a $6 Mn settlement of indirect

tax related to prior years.

Capital expenditure during the period was $36 Mn, lower due to

increased network modernisation in the previous period.

Operating free cash flow was at $110 Mn, up 54.5% as a result of

an improvement in EBITDA and lower capital expenditure.

6.4.4 Product wise Africa

6.4.4.1 Mobile services:

Revenue increased by 9.7% on a reported basis and 15.3%

growth in constant currency, with both voice and data revenue

contributing to mobile services revenue growth.

Voice revenue in constant currency growth was 7%, driven by

customer base growth of 12%, as a result of the expansion of the

distribution network and network infrastructure, partially offset by

a 4.1% drop in voice ARPU. Total minutes on the network were up

31.1% as a result of the increase in voice usage per customer by

17.5%. ARPU declined by 4.1% in constant currency terms, largely

driven by a drop in interconnect charges across key markets in

East Africa and Francophone Africa.

Data revenue increased 33.4% in constant currency, as a result of

growth in our data customer base by 24.1%, an increase in data

ARPU and the accelerated 4G network rollout. Data customer

base was 34.0% of our total customer base, from 30.7% compared

to the previous period. Total data usage was up 90.1% driven by

both a customer base increase of 24.1% and a 56.9% growth in

data usage per customer. Total data usage per customer per

month was 2.5GB, largely resulting from our 4G network

expansion and popular data bundles offerings. Growing

penetration on our 3G and 4G network resulted in data ARPU

growth of 10.1%. 4G data usage almost tripled and now

contributes 52.8% to the total data usage on the network.

Data revenue now contributes 30.2% to the total revenue, up from

26.4% in the previous period.

6.4.4.2 Mobile Money

Reported mobile money revenue was $181 Mn, up 24.3%, with a

constant currency growth of 30.4%. Revenue growth of 33.9% in

Q2’21 benefitted from the easing of lockdown restrictions which

impacted the first quarter. Additionally, P2P fees, which were

temporarily waived in the first quarter to support economies and

communities, were mostly reinstated during Q2’21 in majority of

markets.

The revenue growth of 30.4% was driven by a customer base

growth of 29.6% and a 45.7% growth in transaction value. Our

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distribution network continued to expand through the addition of

exclusive kiosks, Airtel Money branches and the mobile money

agent network.

EBITDA amounted to $88 Mn, up by 25.5% in reported currency

and 30.9% in constant currency. EBITDA margin was 48.6%, an

increase of 0.5pp in reported currency and 0.2pp in constant

currency. Total transaction value increased by 45.7% in constant

currency, as a result of our customer base growth of 29.6% and a

14.5% growth in transaction value per customer per month. The

Q2’21 annualised transaction value reached $47 bn and mobile

money revenue accounted for 10.3% of total revenue.

The mobile money customer base grew to 20.1 Mn, up 29.6% over

the previous period, with Airtel Money customers representing

17.3% of our total customers. Mobile money ARPU was up 2.4%,

driven by the increase in transaction values and a higher

contribution from merchant payments, cash out and recharge of

mobile services through Airtel Money.

Results for the Quarter ended September 30, 2020

6.5.1 Airtel Africa Consolidate

As on 30 Sep 2020, the group had an aggregate customer base of

116 Mn as compared to 104 Mn in the corresponding quarter last

year, an increase of 12.0%. Total minutes on network during the

quarter registered a growth of 32.2% to 80.4 bn as compared to

60.8 bn in the corresponding quarter last year.

Data customers increased by 7.7 Mn to 39.6 Mn as compared to

31.9 Mn in the corresponding quarter last year. Increase in data

subscribers was mainly led by increase in smartphone penetration,

up 2.7pp to 33.2%, and expansion of 4G network (70% of the total

sites are now on 4G). Total MBs on the network grew by 81.0% to

293.9 bn MBs as compared to 162.4 bn MBs in the corresponding

quarter last year. Data usage per customer during the quarter was

at 2,576 MBs as compared to 1,748 MBs in the corresponding

quarter last year, an increase of 47.3%.

Mobile Money revenue in constant currency grew by 33.9% driven

by customer growth of 29.6% and transaction value growth of

56.4%. The Group continued to expand the distribution network

through kiosks, mini shops and dedicated Airtel Money branches.

It also introduced additional mobile money services, including

merchant and commercial payments, benefits transfers, loans and

savings, building international money transfer services through

partnerships. Mobile money business now serves over 20 Mn

mobile money customers, representing 17.3% of our total

customers and almost 27.8% excluding Nigeria.

Reported revenue grew by 14.3%, whereas constant currency

revenue grew by 19.6%, which was partially offset by currency

devaluation. Constant currency revenue growth was largely driven

by 12.0% increase in the customer base, to 116.4 Mn, and a

increase in ARPU by 6.8% to $ 2.8. Revenue growth was recorded

across all the regions: Nigeria up 23.1%, East Africa up 26.0% and

Francophone Africa up 6.4% and services with voice revenue up

11.5%, data revenue up 31.3% and mobile money revenue up

33.9% in constant currency terms.

For the quarter, EBITDA in reported currency was $ 437 Mn, up

17.5% and 23.8% in constant currency terms. EBITDA growth

largely driven by revenue growth of 19.6% in constant currency

and efficiencies in operating expense. EBITDA margin was at

45.3%, an improvement of 1.5pp in constant currency.

On reported basis, Profit after Tax before exceptional item was

$ 92 Mn, an increase of 8% compared to the prior year.

Capital expenditure during the quarter was $ 149 Mn.

Operating free cash flow during the quarter was at $ 287 Mn.

6.5.2 Segment Wise – Africa

6.5.2.1 Nigeria

Reported revenue in Nigeria grew by 15.2% whereas constant

currency growth was 23.1%, which was partially offset by currency

devaluation. The revenue growth was largely driven by voice

revenue growth of 15.8% and sustained growth in data with

revenue up 36.7% in constant currency.

Voice revenue growth of 15.8% was supported by 11.5% growth

in customer base which was driven by expansion of our distribution

network as well as network infrastructure.

Data revenue growth of 36.7% in constant currency was supported

by 22.8% growth in data customers and 14.4% growth in data

ARPU. Data customer penetration was up by 4pp from the

previous period and reached 43.1% as of September 2020. The

data customer base growth of 22.8% was a result of the expansion

of 4G network, with 76% of total sites now on 4G. The total data

usage on our network grew by 83.8%. 4G data usage now

contributes to 60% of the total data usage. Data usage per

customer was up by 53.8%.

EBITDA margin in constant currency at 54.2%, increased by 1.1pp

as a result of revenue growth and efficiencies in operating

expenses.

During the period, capital expenditure was $ 67 Mn.

Operating Free Cash Flow was $ 138 Mn, up 37%, largely as a

result of double-digit EBITDA growth.

6.5.2.2 East Africa

Reported revenue in East Africa grew by 17.7%, whereas constant

currency growth was 26.0%, which was partially offset by currency

devaluation. Revenue growth of 26.0% in constant currency was

driven by growth across all services with voice revenue up by

17.2%, data revenue up by 28.7% and mobile money revenue up

by 50.1%.

Voice revenue was up by 17.2%, largely driven by customer

growth of 13.9% and voice usage per customer up by 17.9%.

Data revenue increased 28.7%, driven by the increase in data

customer base, up 22.9% and increase in data usage per

customer, up 38.2%. Growth was recorded across all OPCOs,

driven by the expansion of network infrastructure, with 68.6% of

the sites now on our 4G network as compared to 60% during the

previous period. Our mobile network in Zambia, Malawi and

Uganda now consists of 100% of 4G sites.

Mobile Money revenue increased by 50.1% supported by increase

in customer base by 29.5% and transaction value per customer up

by 26.9%. Revenue growth of 50.1% in Q2’21 was largely driven

by the removal of certain restrictions on movement as a result of

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the COVID-19 pandemic and the reinstatement of P2P charges in

majority of markets which were temporarily waived off during the

first quarter. We continued to expand our Mobile Money

distribution network (Agents, Kiosks and Airtel Money Branches).

EBITDA margin in constant currency at 45.8%, improved by 5.6pp

as a result of revenue growth and cost efficiencies.

Capital expenditure during the period was $ 62 Mn.

Operating free cash flow was at $ 102 Mn, up by 21.4% as a result

of improvement in EBITDA.

6.5.2.3 Francophone Africa

Reported revenue grew by 8.6%, whereas constant currency

growth was 6.4%. Revenue growth was largely driven by data,

mobile money and other revenue partially offset by a decline in

voice revenue.

Voice revenue decreased by 0.9% largely due to a reduction in

interconnect charges in few markets as well as decrease in

international and roaming revenue. Total minutes on network grew

by 19.9% while voice usage per customer was up by 12.2%.

Data revenue grew by 23.6% in constant currency, supported by

data customer base growth of 31.9%. Additionally, smartphone

penetration increased by 4.7 pp to reach 29.4%. Total data usage

more than doubled and data usage per customer was up 57.2%.

Mobile money revenue grew by 8.9% largely driven by 31.9%

growth in mobile money customer base supported by the

expansion of our distribution network through increase in agents,

kiosks and Airtel Money branches.

EBITDA margin in constant currency at 30.9%, decreased by

4.0pp. The decline in EBITDA margin was largely due to a $6m

settlement of indirect tax related to prior years.

Capital expenditure during the period was $20 Mn,

6.5.3 Product wise Africa

6.5.3.1 Mobile services

Reported mobile services revenue was up by 12.8%, with 17.9%

growth in constant currency, with both voice and data revenue

contributing to mobile services revenue growth.

Voice revenue in constant currency grew by 11.5%, driven by

customer base growth of 12%, as a result of the expansion of the

distribution network and network infrastructure, partially offset by

0.4% drop in voice ARPU in constant currency. Total minutes on

the grew by 32.2% as a result of the increase in voice usage per

customer by 18.1%.

Data revenue grew by 31.3% in constant currency, supported by

data customer base growth of 24.1%, increase in data ARPU and

the accelerated 4G network rollout. Data customer base was

34.0% of our total customer base, from 30.7% compared to the

previous period. Total data usage was up by 81.0% driven by both

customer base increase of 24.1% and 47.3% growth in data usage

per customer.

6.5.3.2 Mobile Money

Reported mobile money revenue was $100 Mn, up 27.9%, with a

constant currency growth of 33.9%.

The revenue growth of 33.9% was driven by a customer base

growth of 29.6% and a 56.4% growth in transaction value. Our

distribution network continued to expand through the addition of

exclusive kiosks, Airtel Money branches and the mobile money

agent network.

The mobile money customer base grew to 20.1 Mn, up 29.6% over

the previous period, with Airtel Money customers representing

17.3% of our total customers. Mobile money ARPU was up 3.0%,

driven by the increase in transaction values and a higher

contribution from merchant payments, cash out and recharge of

mobile services through Airtel Money.

EBITDA amounted to $49 Mn, an increase of 29.3% in reported

currency and 34.6% in constant currency. EBITDA margin was at

48.6%, an increase of 0.2 pp in constant currency.

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SECTION 7

DETAILED FINANCIAL AND RELATED INFORMATION

7.1 Summarized extracts from interim unaudited condensed consolidated financial statements prepared under IAS 34

for the second quarter and half year ended 30 September 2020 and audited consolidated financial statements for

the year ended 31 March 2020 prepared in accordance with IFRS.

7.1.1 Consolidated Statement of Comprehensive Income



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Income

Revenue 965 844 14.3% 1,815 1,640 11%

Other income 5 7 (24%) 8 11 (21%)

970 851 14% 1,823 1,651 10%

Expenses

Netw ork operating expenses 174 156 11% 330 297 11%

Access Charges 93 94 (2%) 177 184 (4%)

License fee / spectrum usage charges 47 48 (1%) 95 94 2%

Employee benefits expense 77 61 26% 142 111 28%

Sales and marketing expenses 47 46 2% 86 83 4%

Impairment loss/(reversal) on f inancial assets (2) (3) 21% 3 2 90%

Other expenses 105 76 38% 190 166 15%

Depreciation and amortisation 167 162 3% 328 319 3%

708 641 10% 1,351 1,256 8%

Operating profit 262 210 25% 472 395 20%

Finance costs 94 90 5% 196 197 (1%)

Finance income (2) (32) 94% (4) (49) 91%

Non-operating income - 2 (100%) - (70) 100%

Share of profit of associate (0) (0) (129%) (1) (0) (40%)

Profit before tax 170 150 13% 281 316 (11%)

Tax expense 82 54 53% 136 88 56%

Profit for the period 88 96 (9%) 145 228 (37%)

Profit before tax (as presented above) 170 150 13% 281 316 (11%)

Add: Exceptional items (net) 7 3 92% 7 (46) 114%

Underlying profit before tax 177 153 15% 288 270 7%

Profit after tax (as presented above) 88 96 (9%) 145 228 (37%)

Add: Exceptional items (net) 4 (11) 136% (3) (74) 96%

Underlying profit after tax 92 85 7% 142 154 (8%)

Particulars

Exceptional items are included within their respective heads

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7.1.2 Consolidated Statement of Comprehensive Income



Sep-20 Sep-19Y-on-Y

ChangeSep-20 Sep-19

Y-on-Y

Change

Other comprehensive income ('OCI')

Items to be reclassified subsequently to profit or loss:

Net gain/(loss) due to foreign currency translation differences 39 7 428% 29 (24) 221%

Net( loss)/gain on net investments hedge (8) 7 (209%) (11) 7 (257%)

Net loss on cash flow hedge - (1) 100% - (3) 100%

31 13 145% 18 (20) 190%

Items not to be reclassified subsequently to profit or loss:

Re-measurement loss on defined benefit plans (1) (0) (39%) (1) (1) 28%

Tax credit on above 0 - 0 0 (90%)

(1) (0) (39%) (1) (1) 28%

Other comprehensive income/(loss) for the period 30 13 141% 17 (21) 183%

Total comprehensive income for the period 118 109 9% 162 207 (22%)

Profit for the period attributable to: 88 96 (9%) 145 228 (37%)

Ow ners of the Company 70 90 (21%) 112 215 (48%)

Non-controlling interests 18 6 207% 33 13 162%

Other comprehensive income/(loss) for the period attributable to: 30 13 143% 17 (21) 181%

Ow ners of the Company 32 13 154% 19 (21) 191%

Non-controlling interests (2) (0) (352%) (2) (0) (286%)

Total comprehensive income for the period attributable to: 118 109 8% 162 207 (22%)

Ow ners of the Company 102 103 (1%) 131 194 (33%)

Non-controlling interests 16 6 152% 31 13 151%

Earnings per share

Basic 1.9c 2.4c 3.0c 6.3c

Diluted 1.9c 2.4c 3.0c 6.3c

Particulars

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7.1.3 Consolidated Summarized Financial Position

Amount in US$ Mn

As at As at

Sep 30, 2020 Mar 31, 2020

Assets

Non-current assets

Property, plant and equipment 1,941 1,832

Capital w ork-in-progress 183 259

Right of use assets 730 639

Goodw ill 3,960 3,943

Other intangible assets 482 456

Intangible assets under development 31 30

Investment in associate 3 3

Financial Assets

- Investments 0 0

- Derivative instruments 0 0

- Security deposits 8 7

- Others 0 1

Income tax assets (net) 28 39

Deferred tax assets (net) 314 333

Other non-current assets 102 112

7,782 7,654

Current assets

Inventories 6 3

Financial Assets


- Trade receivables 138 132

- Cash and cash equivalents 1,072 1,010

- Other Bank balance 7 6

- Balance held under mobile money trust 376 295

- Others 62 66

Other current assets 163 149

1,830 1,671

Total Assets 9,612 9,325

Current liabilities

Financial Liabilities

- Borrow ings 359 235

- Current maturities of long-term borrow ings 1,103 429

- Lease liabilities 222 199


- Trade payables 431 416

- Mobile money w allet balance 372 292

- Others 298 461

Provisions 72 70

Deferred revenue 134 124

Current tax liabilities (net) 110 144

Other current liabilities 138 115

3,243 2,488

Net current liability (1,413) (817)

Non-current liabilities

Financial Liabilities

- Borrow ings 1,859 2,446

- Lease liabilities 1,008 970


- Others 63 15

Provisions 25 23

Deferred tax liabilities (net) 66 69

Other non-current liabilities 26 29

3,051 3,556

Total liabilities 6,294 6,044

Net Assets 3,318 3,281

Equity

Share capital 3,420 3,420

Retained earnings 2,803 2,805

Other reserve (2,816) (2,837)

Equity attributable to owners of the company 3,407 3,388

Non-controlling interests ('NCI') (89) (107)

Total equity 3,318 3,281

Particulars

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7.1.4 Consolidated Summarized Statement of Cash Flows

Half Year Ended

Sep-20 Sep-19

Cash flows from operating activities

Profit before tax 281 316

Adjustments for -

Depreciation and amortisation 328 319

Finance income (4) (49)

Finance cost 196 197

Share of profit of associate (1) (0)

Non-operating adjustments - (70)

Other adjustments 5 (7)

Operating cash flow before changes in working capital 805 707

Changes in working capital

Increase in trade receivables (0) (12)

(Increase)/decrease in inventories (3) 0

Decrease in trade payables (7) (20)

Increase in mobile money w allet balance 80 27

(Increase)/decrease in provisions (0) 1

Increase in deferred revenue 9 8

Decrease in income received in advance (1) (8)

Decrease in other f inancial and non f inancial liabilities (0) (9)

Increase in other f inancial and non f inancial assets (21) (2)

Net cash generated from operations before tax 862 692

Income taxes paid (118) (69)

Net cash generated from operating activities (a) 744 623

Cash flows from investing activities

Purchase of property, plant and equipment and capital w ork-in-progress (359) (349)

Purchase of intangible assets (8) (35)

Interest received 10 14

Net cash used in investing activities (b) (357) (370)

Cash flows from financing activities

Proceeds from issue of shares to Airtel Africa plc shareholders - 680

Proceeds from sale of shares to non-controlling interests - 3

Acquisition of non-controlling interests (0) -

Purchase of ow n shares by ESOP trust (0) -

Payment of share issue expenses - (16)

Proceeds from borrow ings 253 144

Repayment of borrow ings (121) (319)

Repayment of lease liabilities (109) (89)

Dividend paid to non-controlling interests (6) -

Dividend paid to Company's shareholders (113) -

Interest and other f inance charges paid (167) (176)

Share stabilisation proceeds - 7

Proceeds from cancellation of derivatives - 122

Net cash (used) in/generated from financing activities (c) (263) 356

Increase in cash and cash equivalents during the period (a+b+c) 124 609

Currency translation differences relating to cash and cash equivalents (3) 3

Cash and cash equivalents as at beginning of the period 1,087 870

Cash and cash equivalents as at end of the period (1) 1,208 1,482

Particulars

(1) Includes balance held under mobile money trust of USD 376 Mn (September 2019: USD 265 Mn) on behalf of mobile money customers which are not available for use by the group.

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7.2 Use of Alternative performance measures (APM) Financial Information In presenting and discussing the Group’s reported financial position, operating results and cash flows, certain information is derived from

amounts calculated in accordance with IFRS, but this information is not in itself an expressly permitted GAAP measure. Such Alternative

performance measures (APM) should not be viewed in isolation as alternatives to the equivalent GAAP measures, if any.

A summary of Alternative performance measures (APM) included in this report, together with details where additional information and

reconciliation to the nearest equivalent GAAP measure can be found, is shown below.

Alternative performance measures (APM) Equivalent GAAP measure for IFRSLocation in this results announcement

of reconciliation and further information

Earnings before Interest, Taxation, Depreciation and

Amortization (EBITDA)

Operating profit Page 34

Underlying Operating Expenses Expenses

Finance Cost (net) Finance Cost and Finance Income Page 35

Profit / (loss) before tax (before exceptional item) Profit / (Loss) Before Tax Page 35

Profit / (loss) after tax (before exceptional item) Profit / (loss) after tax Page 35

Cash Profit from Operations before Derivative &

Exchange (Gain)/Loss

Profit from operating activities Page 36

Effective tax rate and adjusted Effective tax rate Reported Tax Rate Page 36

Capital Expenditure (Capex) Refer glossary NA

Operating free cash flow Refer glossary NA

Capital Employed Refer glossary NA

7.2.1 Reconciliation between GAAP and Alternative performance measures (APM)

7.2.1.1: EBITDA and Margin

Sep-20 Sep-19

Operating profit US$ Mn 472 395

Add:

Depreciation and amortization US$ Mn 328 319

Charity and donation US$ Mn 5 3

Exceptional items US$ Mn 7 2

EBITDA US$ Mn 812 719

Revenue US$ Mn 1,815 1,640

EBITDAMargin (%) US$ Mn 44.7% 43.9%

Particulars UoMHalf year ended

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7.2.1.2: Underlying Operating Expenditure

Sep-20 Sep-19

Expenses US$ Mn 1,351 1,256

Less:

Access charges US$ Mn (177) (184)

Depreciation and amortization US$ Mn (328) (319)

Charity and donation US$ Mn (5) (3)

Exceptional items US$ Mn (7) (2)

Underlying Operating Expenditure US$ Mn 834 748


7.2.1.3: Finance Cost (net)

Half Year Ended

Sep-20 Sep-19

Finance cost US$ Mn 196 197

Finance income US$ Mn (4) (49)


Finance cost (net) US$ Mn 191 148

Particulars UOM

7.2.1.4: Profit / (Loss) Before Tax

Sep-20 Sep-19

Profit / (loss) for the year Before Tax US$ Mn 281 316

Exceptional items US$ Mn 7 (46)

Profit / (loss) before tax (before exceptional item) US$ Mn 288 270


7.2.1.5: Profit / (Loss) After Tax

Sep-20 Sep-19

Profit / (loss) after tax US$ Mn 145 228

Exceptional items US$ Mn (3) (74)

Profit / (loss) after tax (before exceptional item) US$ Mn 142 154


7.2.1.6: Operating Free Cash Flow

Sep-20 Sep-19

Net Cash Generated from Operating Activities US$ Mn 744 623

Add: Income tax paid US$ Mn 118 69

Cash Generation from Operation before tax US$ Mn 862 692

Less: Changes in working capital US$ Mn 56 (15)

Operating cash flow before changes in working capital US$ Mn 805 707

Other adjustments US$ Mn (5) 7

Charity and donation US$ Mn 5 3


EBITDA US$ Mn 812 719

Less: Capital Expenditure US$ Mn (216) (246)

Operating Free Cash Flow US$ Mn 596 473


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7.2.1.7: Cash Profit from Operations before Derivative and Exchange Fluctuation

Half Year Ended

Sep-20 Sep-19

Operating profit US$ Mn 472 395

Finance cost (net) US$ Mn (191) (148)

Depreciation and Amortisation US$ Mn 328 319

Derivatives and exchange (gain)/loss US$ Mn 35 (9)


Cash Profit from Operations before Derivative and

Exchange FluctuationUS$ Mn 651 559

Particulars UOM

7.2.1.8: Effective tax rate and adjusted Effective tax rate

Profit before

taxation

Income tax

expenseTax Rate %

Profit before

taxation

Income tax

expenseTax Rate %

Reported Effective tax rate US$ Mn 281 136 48.5% 316 88 27.7%

Adjusted for :

Exceptional Items (provided below ) US$ Mn 7 10 (46) 28

Foreign exchange rate movements for non-DTA

operating companies & holding companiesUS$ Mn 36 (28)

One-off tax adjustment US$ Mn 6 1

Effective tax rate US$ Mn 324 152 46.9% 242 117 48.2%

Deferred tax trigerred during the year US$ Mn (10) (27)

Adjusted effective tax rate US$ Mn 324 142 43.9% 242 90 37.0%

Exceptional items

1. Deferred tax asset recognition US$ Mn (10) (27)

2. Netw ork modernisation US$ Mn 19 (1)

3. Employee restructuring US$ Mn 7

4. Reversal of indemnities US$ Mn (72)

5. Share issue and IPO related expenses US$ Mn 6

6. Finance Cost US$ Mn 1

Total US$ Mn 7 (10) (46) (28)

Particulars UoM

Half year ended

Sep-20 Sep-19

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SECTION 8

NET DEBT AND COST SCHEDULES

8.1 Consolidated Schedule of Net Debt

Amount in US$ Mn

As at As at

Sep 30, 2020 Mar 31, 2020

Long term borrow ing, net of current portion 1,839 2,424

Short-term borrow ings and current portion of long-term borrow ing 1,462 664

Less:

Cash and Cash Equivalents 1,072 1,010

Net Debt excluding Lease Obligations 2,229 2,078

Lease Obligations 1,230 1,169

Net Debt including Lease Obligations 3,459 3,247

Particulars

8.2 Consolidated Schedule of Net Finance Cost (in Reported Currency)

Amount in US$ Mn


Sep-20 Sep-19 Sep-20 Sep-19

Interest on borrow ings and Finance charges 48 55 94 108

Interest on Lease Obligation 33 32 67 64

Investment (income)/ loss (2) (9) (5) (15)

Finance cost excluding Derivatives and Forex 79 78 156 157

Add : Derivatives and exchange (gain)/ loss 14 (12) 35 (9)

Finance cost (net of Derivatives and Forex) 92 66 191 148

Particulars

8.3 Consolidated Schedule of Operating Expenses (in Constant Currency)

Amount in US$ Mn



Access charges 93 90 178 175

Cost of goods sold 48 32 85 61

License fee / spectrum charges (revenue share) 47 46 95 91

Netw ork operations costs 174 145 332 274

Employee benefits expense 72 64 138 115

Selling, general and adminstration expense 99 82 190 178

Operating Expenses 533 460 1,019 895

Particulars

Closing currency rates as on March 31, 2020 considered for Constant currency.

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8.4 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Constant Currency)

Amount in US$ Mn



Depreciation 137 126 276 248

Amortization 29 20 52 40

Depreciation and Amortization 166 146 328 288

Particulars

Closing currency rates as on March 31, 2020 considered for Constant currency.

8.5 Consolidated Schedule of Operating Expenses (in Reported Currency)

Amount in US$ Mn



Access charges 93 94 177 184

Cost of goods sold 48 34 85 65

License fee / spectrum charges (revenue share) 47 48 95 94

Netw ork operations costs 174 152 331 287

Employee benefits expense 72 65 138 119

Selling, general and adminstration expense 99 86 190 185

Operating Expenses 534 480 1,017 934

Particulars

8.6 Consolidated Schedule of Depreciation and Amortization before exceptional item (in Reported Currency)

Amount in US$ Mn



Depreciation 138 131 276 259

Amortization 29 21 52 42

Depreciation and Amortization 167 152 328 300

Particulars

8.7 Consolidated Schedule of Income Tax before exceptional item (in Reported Currency)

Amount in US$ Mn



Current tax expense 55 39 102 71

Deferred tax expense / (income) 30 28 44 44

Income tax expense 85 68 146 116

Particulars

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SECTION 9

TRENDS AND RATIO ANALYSIS

9.1 Based on Statement of Operations

9.1.1 Consolidated Statement of Operations: (in Reported Currency)


Quarter Ended

Sep-20 Jun-20 Mar-20 Dec-19 Sep-19

Revenue 965 851 899 883 844

Access charges 93 84 94 98 94

Cost of goods sold 48 37 39 38 34

Net revenues 824 729 766 747 715

Operating Expenses (Excl Access Charges, cost of

goods sold and License Fee)345 310 321 308 302

Licence Fee 47 48 51 44 48

EBITDA 437 375 397 399 372

Cash Profit from operations before Derivative and

Exchange Fluctuations357 295 325 326 293

EBIT 269 210 244 245 219

Share of results of associate (0) (0) (0) 0 (0)

Profit before Tax 177 111 97 167 153

Profit after Tax (before exceptional items) 92 50 70 73 85

Non Controlling Interest (before exceptional items) 17 12 12 10 6

Net Income (before exceptional items) 75 38 57 62 79

Exceptional items (net) 4 (7) (7) (30) (11)

Profit after Tax (after exceptional items) 88 57 77 103 96

Non Controlling Interest 18 15 12 13 6

Net Income 70 42 65 90 90

Capex 149 66 246 150 147

Operating Free Cash Flow (EBITDA - Capex) 287 309 151 249 225

Total Capital Employed 6,777 6,636 6,528 6,595 6,576


As a % of Revenue

Access charges 9.6% 9.9% 10.5% 11.1% 11.2%

Cost of goods sold 5.0% 4.4% 4.3% 4.3% 4.1%

Net revenues 85.4% 85.7% 85.2% 84.6% 84.7%

Operating Expenses (excluding access charges,

cost of goods sold and license fee)35.7% 36.5% 35.7% 34.9% 35.8%

Licence Fee 4.9% 5.6% 5.7% 5.0% 5.7%

EBITDA 45.3% 44.1% 44.1% 45.2% 44.1%

Cash Profit from operations before Derivative and

Exchange Flucations37.0% 34.6% 36.1% 36.9% 34.7%

EBIT 27.8% 24.7% 27.2% 27.7% 25.9%

Share of results of associate (0.0%) (0.0%) (0.0%) 0.0% (0.0%)

Profit before Tax 18.3% 13.1% 10.8% 18.9% 18.1%

Profit after Tax (before exceptional items) 9.5% 5.9% 7.8% 8.2% 10.0%

Non Controlling Interest (before exceptional items) 1.7% 1.4% 1.4% 1.2% 0.7%

Net Income (before exceptional items) 7.7% 4.5% 6.4% 7.0% 9.3%

Exceptional items (net) 0.4% (0.8%) (0.8%) (3.4%) (1.3%)

Profit after Tax (after exceptional items) 9.1% 6.7% 8.6% 11.6% 11.3%

Non Controlling Interest 1.8% 1.8% 1.4% 1.5% 0.7%

Net Income 7.3% 4.9% 7.2% 10.1% 10.6%

Particulars

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9.1.2 Consolidated Statement of Operations: (in Constant Currency)


Quarter Ended


Revenue 963 856 870 845 805

Access charges 93 85 91 93 90

Cost of goods sold 48 37 37 36 32

Net revenues 822 733 742 716 683

Operating Expenses (Excl Access Charges, cost of

goods sold and License Fee)343 312 313 297 290

Licence Fee 47 48 50 43 46

EBITDA 436 377 382 380 353

EBIT 269 211 233 231 205

Capex 149 66 246 150 147



As a % of Revenue

Access charges 9.7% 9.9% 10.4% 11.1% 11.2%

Cost of goods sold 5.0% 4.4% 4.3% 4.3% 4.0%

Net revenues 85.4% 85.7% 85.3% 84.7% 84.8%

Operating Expenses (excluding access charges,

cost of goods sold and license fee)35.7% 36.5% 36.0% 35.2% 36.1%

Licence Fee 4.9% 5.6% 5.8% 5.1% 5.8%

EBITDA 45.3% 44.0% 43.9% 44.9% 43.8%

EBIT 27.9% 24.7% 26.8% 27.3% 25.5%

Particulars


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9.2 Based on Segment Wise Statement of Operations

9.2.1 Nigeria



Quarter Ended


Revenue 377 341 377 355 327

EBITDA 204 182 209 194 174

EBITDA / Revenue 54.2% 53.3% 55.5% 54.7% 53.1%

EBIT 141 130 163 146 129

Capex 67 30 145 64 62


Particulars



Quarter Ended


Revenue 379 343 359 334 307

EBITDA 205 183 199 183 163

EBITDA / Revenue 54.2% 53.3% 55.5% 54.7% 53.1%

EBIT 142 130 154 138 121

Capex 67 30 145 64 62


Particulars


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9.2.2 East Africa (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)



Quarter Ended


Revenue 355 305 310 313 301

EBITDA 163 129 125 127 123

EBITDA / Revenue 46.0% 42.4% 40.3% 40.5% 40.7%

EBIT 110 74 70 70 65

Capex 62 19 61 61 30


Particulars



Quarter Ended


Revenue 358 306 299 297 284

EBITDA 164 130 120 120 114

EBITDA / Revenue 45.8% 42.3% 40.2% 40.2% 40.2%

EBIT 110 74 67 65 59

Capex 62 19 61 61 30


Particulars


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9.2.3 Francophone Africa (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)



Quarter Ended


Revenue 236 209 215 218 217

EBITDA 73 74 70 82 76

EBITDA / Revenue 30.8% 35.1% 32.7% 37.5% 34.9%

EBIT 23 25 24 32 29

Capex 20 16 40 24 54


Particulars



Quarter Ended


Revenue 230 211 215 217 216

EBITDA 71 74 70 81 76

EBITDA / Revenue 30.9% 35.0% 32.7% 37.5% 35.0%

EBIT 23 24 24 32 29

Capex 20 16 40 24 54


Particulars


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9.3 Based on Product Wise Statement of Operations

9.3.1 Mobile Services - Summarized Statement of Operations

9.3.1.1 Consolidated Mobile:



Quarter Ended


Revenue 891 799 844 826 790

EBITDA 392 345 366 363 335

EBITDA / Revenue 44.0% 43.2% 43.3% 43.9% 42.4%

EBIT 228 192 220 210 186

Capex 147 64 240 145 145


Particulars



Quarter Ended


Revenue 889 803 816 791 754

EBITDA 392 347 351 345 317

EBITDA / Revenue 44.1% 43.1% 43.0% 43.6% 42.0%

EBIT 229 192 209 198 174

Capex 147 64 240 145 145


Particulars


9.3.1.2 Nigeria Mobile Services



Quarter Ended


Revenue 377 341 377 354 326

EBITDA 204 182 209 194 172

EBITDA / Revenue 54.2% 53.3% 55.5% 54.7% 52.9%

EBIT 142 130 163 146 127

Capex 67 30 145 64 62


Particulars

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Quarter Ended


Revenue 378 343 359 333 306

EBITDA 205 183 199 182 162

EBITDA / Revenue 54.2% 53.3% 55.5% 54.7% 52.9%

EBIT 142 130 154 137 120

Capex 67 30 145 64 62


Particulars


9.3.1.3 East Africa Mobile Services (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)



Quarter Ended


Revenue 298 264 268 272 263

EBITDA 128 103 100 101 99

EBITDA / Revenue 43.1% 38.9% 37.2% 37.1% 37.6%

EBIT 76 50 46 45 42

Capex 60 18 56 57 29


Particulars



Quarter Ended


Revenue 301 266 259 258 248

EBITDA 129 103 96 95 92

EBITDA / Revenue 42.9% 38.8% 37.0% 36.8% 37.1%

EBIT 76 50 44 42 38

Capex 60 18 56 57 29


Particulars


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9.3.1.4 Francophone Africa Mobile Services (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)



Quarter Ended


Revenue 218 196 200 202 203

EBITDA 60 62 58 68 64

EBITDA / Revenue 27.5% 31.4% 28.7% 33.7% 31.4%

EBIT 10 13 11 18 16

Capex 20 16 39 24 54


Particulars



Quarter Ended


Revenue 213 197 200 201 202

EBITDA 59 62 58 68 63

EBITDA / Revenue 27.6% 31.3% 28.7% 33.7% 31.4%

EBIT 10 13 11 18 16

Capex 20 16 39 24 54


Particulars


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9.3.2 Mobile Money - Summarized Statement of Operations

9.3.2.1 Mobile Money:



Quarter Ended


Revenue 100 81 83 82 78

EBITDA 49 39 39 40 38

EBITDA / Revenue 48.7% 48.5% 47.3% 49.0% 48.2%

EBIT 47 37 36 39 37

Capex 2 2 5 4 2


Particulars



Quarter Ended


Revenue 100 81 81 79 74

EBITDA 48 39 38 39 36

EBITDA / Revenue 48.6% 48.5% 47.5% 49.2% 48.4%

EBIT 46 37 36 37 35

Capex 2 2 5 4 2


Particulars


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9.4 Operational Performance Trends (Quarter Ended)

9.4.1 Consolidated - Operational Performance

Parameters Unit Sep-20 Jun-20 Mar-20 Dec-19 Sep-19

Customer Base 000's 116,371 111,461 110,604 107,140 103,881

Net Additions 000's 4,910 857 3,464 3,258 4,211

Monthly Churn % 5.3% 5.7% 5.3% 5.2% 4.5%

Average Revenue Per User (ARPU) US$ 2.8 2.6 2.7 2.7 2.6

Voice

Voice Revenue US$ Mn 517 456 494 484 464

Minutes on the netw ork Mn 80,375 71,891 68,870 65,086 60,795

Voice Average Revenue Per User (ARPU) US$ 1.5 1.4 1.5 1.5 1.5

Voice Usage per customer min 235 218 211 206 199

Data

Data Revenue US$ Mn 283 267 245 232 215

Data Customer Base 000's 39,596 36,972 35,443 32,887 31,910

As % of Customer Base % 34.0% 33.2% 32.0% 30.7% 30.7%

Total MBs on the netw ork Mn MBs 293,919 279,541 219,015 189,798 162,394

Data Average Revenue Per User (ARPU) US$ 2.5 2.5 2.4 2.4 2.3

Data Usage per customer MBs 2,576 2,607 2,145 1,967 1,748

M obile M oney

Transaction Value US$ Mn 11,637 9,038 8,031 8,001 7,442

Transaction Value per Subs US$ 199 164 155 166 166

Mobile Money Revenue US$ Mn 100 81 81 79 74

Active Customers 000's 20,120 18,529 18,294 16,634 15,521

Mobile Money ARPU US$ 1.7 1.5 1.6 1.6 1.7


Netw ork tow ers Nos 24,246 23,471 22,909 22,253 21,936

Owned towers Nos 4,561 4,569 4,548 4,454 4,461

Leased towers Nos 19,685 18,902 18,361 17,799 17,475



Data Capacity TB/day 10,253 8,371 7,572 6,780 6,146

Revenue Per site Per Month US$ 13,408 12,257 12,809 12,718 12,361

Revenue & KPIs in Constant Currency rates. Closing currency rates as on March 31, 2020 considered for constant currency.

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9.4.2 Nigeria - Operational Performance


Customer Base 000's 44,054 42,513 41,757 39,855 39,512

Net Additions 000's 1,541 757 1,902 343 2,044

Monthly Churn % 6.1% 5.7% 5.8% 6.8% 4.7%


Voice





Data









Owned towers Nos 199 204 200 177 261







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9.4.3 East Africa - Operational Performance (Uganda, Zambia, Tanzania, Kenya, Malawi and Rwanda)


Customer Base 000's 51,265 48,757 48,634 47,366 45,007

Net Additions 000's 2,508 123 1,268 2,359 1,955

Monthly Churn % 4.5% 5.7% 4.7% 3.8% 3.8%


Voice





Data









Owned towers Nos 2,544 2,535 2,499 2,475 2,421







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9.4.4 Francophone Africa- Operational Performance (DRC, Gabon, Congo B, Madagascar, Niger, Chad and Seychelles)


Customer Base 000's 21,052 20,190 20,213 19,919 19,362

Net Additions 000's 862 (23) 294 557 212

Monthly Churn % 5.5% 5.9% 6.0% 5.4% 5.8%


Voice





Data









Owned towers Nos 1,818 1,830 1,849 1,802 1,779




Data Capacity TB/day 1,582 1,527 1,445 1,285 999



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SECTION 10

KEY ACCOUNTING POLICIES (AS PER IFRS)

Property, plant and equipment and capital work-in-progress

An item is recognised as an asset, if and only if, it is probable that the future economic benefits associated with the item will flow to the Group and its cost can be measured reliably. PPE is initially recognised at cost. The initial cost of PPE comprises its purchase price (including non-refundable duties and taxes but excluding any trade discounts and rebates), and any directly attributable cost of bringing the asset to its working condition and location for its intended use. Further, it includes assets installed on the premises of customers as the associated risks, rewards and control remain with the Group. Subsequent to initial recognition, PPE is stated at cost less accumulated depreciation and any impairment losses. When significant parts of PPE are required to be replaced at regular intervals, the Group recognises such parts as separate component of assets. When an item of PPE is replaced, then its carrying amount is de-recognised from the consolidated statement of financial position and cost of the new item of PPE is recognised. The expenditures that are incurred after an item of PPE has been ready to use, such as repairs and maintenance, are normally charged to the consolidated statement of comprehensive income in the period in which such costs are incurred. However, in situations where the said expenditure can be measured reliably, and is probable that future economic benefits associated with it will flow to the Group, it is included in the asset’s carrying value or as a separate asset, as appropriate. Depreciation on PPE is computed using the straight-line method over the estimated useful lives. Freehold land is not depreciated as it has an unlimited useful life. The Group has established the estimated range of useful lives for different categories of PPE as follows: Asset Categories Years

Leasehold improvementPeriod of lease or 10-20 years,

as applicable, w hichever is less

Buildings 20

Plant and equipment

- Netw ork equipment (including passive

infrastructure)3 - 25

Computer equipment 3-5

Furniture & fixture and office equipment 1-5

Vehicles 3-5 The useful lives, residual values and depreciation method of PPE are reviewed, and adjusted appropriately, at-least as at each reporting date so as to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from these assets. The effect of any change in the estimated useful lives, residual values and / or depreciation method are accounted prospectively, and accordingly, the depreciation is calculated over the PPE’s remaining revised useful life. The cost and the accumulated depreciation for PPE sold, scrapped, retired or otherwise disposed of are de-recognised from the consolidated statement of financial position and the resulting gains / (losses) are included in the consolidated statement of comprehensive income within other expenses / other income. PPE in the course of construction is carried at cost, less any accumulated impairment and presented separately as capital work-in-progress (CWIP) including capital advances in the consolidated statement of financial position until capitalised. Such

cost comprises of purchase price (including non-refundable duties and taxes but excluding any trade discounts and rebates), and any directly attributable cost.

Goodwill Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable net assets acquired. Goodwill is not amortised; however, it is tested for impairment and carried at cost less any accumulated impairment losses. The gains/ (losses) on the disposal of a cash-generating unit (‘CGU’) include the carrying amount of goodwill relating to the CGU sold (in case goodwill has been allocated to Group of CGUs; it is determined on the basis of the relative fair value of the operations sold). Goodwill is tested for impairment, at least annually or earlier, in case circumstances indicate that their carrying value may exceed the recoverable amount (higher of fair value less costs of sell and the value -in- use). For the purpose of impairment testing, the goodwill is allocated to a cash-generating-unit (‘CGU’) or group of CGUs (‘CGUs’) which are expected to benefit from the acquisition-related synergies and represent the lowest level within the entity at which the goodwill is monitored for internal management purposes, but not higher than an operating segment. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. Impairment occurs when the carrying value of a CGU/CGUs including the goodwill, exceeds the estimated recoverable amount of the CGU/CGUs. The recoverable amount of a CGU/CGUs is the higher of its fair value less costs to sell and its value in use. Value-in-use is the present value of future cash flows expected to be derived from the CGU/CGUs. The total impairment loss of a CGU/CGUs is allocated first to reduce the carrying value of goodwill allocated to that CGU/CGUs and then to the other assets of that CGU/CGUs - on pro-rata basis of the carrying value of each asset.

Other Intangible assets Identifiable intangible assets are recognised when the Group controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Group and the cost of the asset can be measured reliably. The intangible assets that are acquired in a business combination are recognised at fair value as on acquisition date. Other intangible assets are recognised at cost. These assets having a definite useful life are carried at cost less accumulated amortisation and any impairment losses. Amortisation is computed using the straight-line method over the expected useful life of intangible assets. The Group has established the estimated useful lives of different categories of intangible assets as follows: a. Licenses (including spectrum) Acquired licenses and spectrum are amortised commencing from the date when the related network is available for intended use in the relevant jurisdiction. The useful lives range from two to twenty-five years.

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In addition, the Group also incurs a fee on licenses/spectrum that is calculated based on the revenue amount of the period. Such revenue-share based fee is recognised as a cost in the consolidated statement of comprehensive income when incurred. b. Software: Software are amortised over the period of the license, generally not exceeding three years. c. Other acquired intangible assets: Other acquired intangible assets include the following: Customer relationships: Over the estimated life of such relationships which ranges from one year to five years. The useful lives and amortisation method are reviewed, and adjusted appropriately, at least at each financial year end so as to ensure that the method and period of amortisation are consistent with the expected pattern of economic benefits from these assets. The effect of any change in the estimated useful lives and / or amortisation method is accounted prospectively, and accordingly, the amortisation is calculated over the remaining revised useful life. Further, the cost of intangible assets under development includes the amount of spectrum allotted to the Group and related costs for which services are yet to be rolled out and are presented separately in the consolidated statement of financial position.

Investment in Associates An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Investment in associate is accounted for using equity method; from the date on which the Group starts exercising significant influence over the associate. At each reporting date, the Group determines whether there is objective evidence that the investment is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of investment and its carrying value.

Leases At inception of a contract, the Group assesses a contract as, or containing, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether the contract involves the use of an identified asset, the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and the Group has the right to direct the use of the asset. a. Group as a lessee The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee in the consolidated statement of financial position. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate. Lease liabilities include the net present value of fixed payments (including in-substance fixed payments), variable lease payments that are based on consumer price index (‘CPI’), the

exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option. Subsequently, the lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments including due to changes in CPI or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or when the lease contract is modified and the lease modification is not accounted for as a separate lease. The corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the related right-of-use asset has been reduced to zero. Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs, and restoration costs. Subsequent to initial recognition, right-of-use assets are stated at cost less accumulated depreciation and any impairment losses and adjusted for certain re-measurements of the lease liability. Depreciation is computed using the straight-line method from the commencement date to the end of the useful life of the underlying asset or the end of the lease term, whichever is shorter. The estimated useful lives of right-of-use assets are determined on the same basis as those of the underlying property and equipment. In the consolidated statement of financial position, the right-of-use assets and lease liabilities are presented separately. When a contract includes lease and non-lease components, the Group allocates the consideration in the contract on the basis of the relative stand-alone prices of each lease component and the aggregate stand-alone price of the non-lease components. Short-term leases The Group has elected not to recognise right-of-use assets and lease liabilities for short term leases that have a lease term of 12 months or less. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. b. Group as a lessor Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under a finance lease are recognised as receivables at an amount equal to the net investment in the leased assets. Finance lease income is allocated to the periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the finance lease. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term. When a contract includes lease and non-lease components, the Group applies IFRS 15 to allocate the consideration under the contract to each component.

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The Group enters into ‘Indefeasible right to use’ (‘IRU’) arrangements wherein the right to use the assets is given over the substantial part of the asset life. However, as the title to the assets and the significant risks associated with the operation and maintenance of these assets remains with the Group, such arrangements are recognised as operating lease. The contracted price is recognised as revenue during the tenure of the agreement. Unearned IRU revenue received in advance is presented as deferred revenue within liabilities in the consolidated statement of financial position.

Derivative financial instruments

Derivative financial instruments, including separated embedded derivatives that are not designated as hedging instruments in a hedging relationship are classified as financial instruments at fair value through profit or loss. Such derivative financial instruments are initially recognised at fair value. They are subsequently measured at their fair value, with changes in fair value being recognised in profit or loss within finance income / finance costs.

Hedging activities

i. Fair value hedge

Some of the Group’s entities use derivative financial instruments (e.g. interest rate / currency swaps) to manage / mitigate their exposure to the risk of change in fair value of the borrowings. The Group designates certain interest swaps to hedge the risk of changes in fair value of recognised borrowings attributable to the hedged interest rate risk. The effective and ineffective portion of changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in profit and loss within finance income / finance costs, together with any changes in the fair value of the hedged liability that is attributable to the hedged risk. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of the hedged item is amortised to profit or loss over the period to remaining maturity of the hedged item.

ii. Cash flow hedge Some of the Group’s entities use derivative financial instruments (e.g. foreign currency forwards, options, swaps) to manage their exposure to foreign exchange and price risk. Further, the Group designates certain derivative financial instruments (or its components) as hedging instruments for hedging the exchange rate fluctuation risk attributable to either a recognised item or a highly probable forecast transaction (‘Cash flow hedge’). The effective portion of changes in the fair value of derivative financial instruments (or its components) that are designated and qualify as cash flow hedges, are recognised in other comprehensive income and held as cash flow hedge reserve (‘CFHR’) – within other components of equity. Any gains / (losses) relating to the ineffective portion, are recognised immediately in profit or loss within finance income / finance costs. The amounts accumulated in equity are re-classified to the profit and loss in the periods when the hedged item affects profit / (loss). When a hedging instrument expires or is sold, or when a cash flow hedge no longer meets the criteria for hedge accounting, any cumulative gains / (losses) existing in equity at that time remains in equity and is recognised (on the basis as discussed in the above paragraph) when the forecast transaction is ultimately recognised in the profit and loss. However, at any point of time, when a forecast transaction is no longer expected to occur, the cumulative gains / (losses) that were reported in equity is immediately

transferred to the profit and loss within finance income / finance costs. iii. Net investment hedge The Group hedges its net investment in certain foreign subsidiaries. Accordingly, any foreign exchange differences on the hedging instrument (e.g. borrowings) relating to the effective portion of the hedge is recognised in other comprehensive income as foreign currency translation reserve (‘FCTR’) – within other components of equity, so as to offset the change in the value of the net investment being hedged. The ineffective portion of the gain or loss on these hedges is immediately recognised in profit or loss. The amounts accumulated in equity are included in the profit and loss when the foreign operation is disposed or partially disposed.

Revenue

Revenue is recognised upon transfer of control of promised products or services to the customer at the consideration which the Group has received or expects to receive in exchange of those products or services, net of any taxes / duties and discounts. When determining the consideration to which the Group is entitled for providing promised products or services via intermediaries, the Group assesses whether the intermediary is a principal or agent in the onward sale to the end customer. To the extent that the intermediary is considered a principal, the consideration to which the Group is entitled is determined to be that received from the intermediary. To the extent that the intermediary is considered an agent, the consideration to which the Group is entitled is determined to be the amount received from the customer; the discount provided to the intermediary is recognised as a cost of sale. The Group has entered into certain multiple-element revenue arrangements which involve the delivery or performance of multiple products, services or rights to use assets. At the inception of the arrangement, all the deliverables therein are evaluated to determine whether they represent distinct performance obligations, and if so, they are accounted for separately. Total consideration related to the multiple element arrangements is allocated to each performance obligation based on their relative standalone selling prices. The stand-alone selling prices are determined based on the prices at which the Group sells equipment and network services separately. Revenue is recognised when, or as, each distinct performance obligation is satisfied. The main categories of revenue and the basis of recognition are as follows: a. Service revenue

Service revenue is derived from the provision of telecommunication services and mobile money services to customers. The majority of the customers of the Group subscribe to the services on a pre-paid basis. Telecommunication service revenues mainly pertain to usage, subscription charges for voice, data, messaging and value added services and customer onboarding charges, which include activation charges. Telecommunication services (comprising voice, data and SMS) are considered to represent a single performance obligation as all are provided over the Group’s network and transmitted as data representing a digital signal on the network. The transmission consumes network bandwidth and therefore, irrespective of the nature of the communication, the customer ultimately receives

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access to the network and the right to consume network bandwidth. Customers pay in advance for services of the Group, these cash amounts are recognised in deferred income on the consolidated statement of financial position and transferred to the consolidated income statement when the service obligation has been performed/when the usage of services becomes remote. The Group recognises revenue from these services over time as they are provided. Revenue is recognised based on actual units of telecommunication services provided during the reporting period as a proportion of the total units of telecommunication services to be provided. Subscription charges are recognised over the subscription pack validity period. Customer onboarding revenue is recognised upon successful onboarding of customer i.e. upfront. Revenues recognised in excess of amounts invoiced are classified as unbilled revenue. If amounts invoiced / collected from a customer are in excess of revenue recognised, a deferred revenue / advance income is recognised. Service revenues also includes revenue from interconnection / roaming charges for usage of the Group’s network by other operators for voice, data, messaging and signaling services. These are recognised upon transfer of control of services being transferred over time. Revenues from long distance operations comprise of voice services and bandwidth services (including installation), which are recognised on provision of services and over the period of respective arrangements. The Group has interconnect agreements with local and foreign operators. This allows customers from either network to originate or terminate calls to each others’ network. Revenue is earned and recognised as per bilateral agreements when other operators’ calls are terminated to the Group’s network i.e. the service is rendered. As part of the mobile money services, the Group earns commission from merchants for facilitating recharges, bill payments and other merchant payments. It also earns commissions on transfer of monies from one customer wallet to another. Such commissions are recognised as revenue on provision of these services by the Group. Costs to obtain or fulfil a contract with a customer The company has estimated that the historic average customer life is longer than 12 months and believes that its churn rate provides the best indicator of anticipated average customer life and has changed its policy on cost deferral recognition in these financial statements. Accordingly, the company has deferred such costs over expected average customer life. b. Equipment sales

Equipment sales mainly pertain to sale of telecommunication equipment and related accessories for which revenue is recognised when the control of equipment is transferred to the customer i.e. transferred at a point in time.

Alternative performance measures (APM)- Exceptional items

Management exercises judgment in determining the adjustments to apply to IFRS measurements in order to derive APMs which provide additional useful information on the underlying trends,

performance and position of the Group. This assessment covers the nature of the item being one-off or non-routine, whether the cause of occurrence was within the Group’s control or not and the scale of impact of that item on reported performance in accordance with the exceptional items policy. To monitor the performance, the Group uses the following APMs:

‘Underlying profit before tax’ representing profit before tax for the period excluding the impact of exceptional items,

‘Underlying profit after tax’ representing profit after tax for the period excluding the impact of exceptional items and tax on exceptional items.

Exceptional items refer to items of income or expense within the consolidated statement of comprehensive income which are of such size, nature or incidence that their exclusion is considered necessary to explain the performance of the Group and improve the comparability between periods. Reversals of previous exceptional items are also considered as exceptional items. When applicable, these items include network modernisation, share issue expenses, restructuring costs, impairments, initial recognition of deferred tax assets, impact of mergers etc.

Foreign currency transactions

a. Functional and presentation currency

The items included in financial statements of each of the Group’s entities are measured using the currency of primary economic environment in which the entity operates (i.e. ‘functional currency’). The financial statements are presented in US Dollar which is the functional and presentation currency of the company. b. Transactions and balances Transactions in foreign currencies are initially recorded in the relevant functional currency at the rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the closing exchange rate prevailing as at the reporting date with the resulting foreign exchange differences, on subsequent re-statement / settlement, recognised in the consolidated statement of comprehensive income within finance costs / finance income. Non-monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the exchange rate prevalent, at the date of initial recognition (in case they are measured at historical cost) or at the date when the fair value is determined (in case they are measured at fair value) – with the resulting foreign exchange difference, on subsequent re-statement / settlement, recognised in the profit and loss, except to the extent that it relates to items recognised in the other comprehensive income or directly in equity. The equity items denominated in foreign currencies are translated at historical exchange rate. c. Foreign operations

The assets and liabilities of foreign operations (including the goodwill and fair value adjustments arising on the acquisition of foreign entities) are translated into US Dollar at the exchange rates prevailing at the reporting date whereas their statements of profit and loss are translated into US Dollar at monthly average exchange rates and the equity is recorded at the historical rate.

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The resulting exchange differences arising on the translation are recognised in other comprehensive income and held in foreign currency translation reserve (‘FCTR’), a component of equity. On disposal of a foreign operation (that is, disposal involving loss of control), the component of other comprehensive income relating to that particular foreign operation is reclassified to profit or loss.

Income-taxes The income tax expense comprises of current and deferred income tax. Income tax is recognised in the profit and loss, except to the extent that it relates to items recognised in the same or a different period, outside profit or loss, in other comprehensive income or directly in equity, in which case the related income tax is also recognised accordingly. a. Current tax Current tax is calculated on the basis of the tax rates, laws and regulations, which have been enacted or substantively enacted as at the reporting date in the respective countries where the Group entities operate and generate taxable income. The payment made in excess / (shortfall) of the respective Group entities’ income tax obligation for the period are recognised in the consolidated statement of financial position under non-current income tax assets / liabilities. Any interest, related to accrued liabilities for potential tax assessments are not included in Income tax charge or (credit), but are rather recognised within finance costs. A provision is recognised for those matters for which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable or based on expected value approach, as applicable. The assessment is based on the judgement of tax professionals within the company supported by previous experience in respect of such activities and in certain cases based on specialist independent tax advice. b. Deferred tax Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values. However, deferred tax is not recognised if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Further, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Moreover, deferred tax

is recognised on temporary differences arising on investments in subsidiaries and associate - unless the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets, recognised and unrecognised, are reviewed at each reporting date and assessed for recoverability based on best estimates of future taxable profits. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Income tax assets and liabilities are off-set against each other and the resultant net amount is presented in the consolidated statement of financial position, if and only when, (a) the Group currently has a legally enforceable right to set-off the current income tax assets and liabilities, and (b) when it relate to income tax levied by the same taxation authority and where there is an intention to settle the current income tax balances on net basis.

Transactions with non-controlling interests A change in the ownership interest of a subsidiary, without a change of control, is accounted for as a transaction with equity holders. Any difference between the amount of the adjustment to non-controlling interests and any consideration exchanged is recognised in ‘transactions with NCI reserve’, within equity.

Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the relevant obligation, using a pre-tax rate that reflects current market assessments of the time value of money (if the impact of discounting is significant) and the risks specific to the obligation. The increase in the provision due to un-winding of discount over passage of time is recognised within finance costs. Contingencies A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognised unless virtually certain and disclosed only where an inflow of economic benefits is probable.

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SECTION 11

GLOSSARY

Technical and Industry Terms

Company Related

Average Customers Average Revenue per user (ARPU)

Average customers are derived by computing the average of the monthly average customers for the relevant period. Average revenue per user per month, which is derived by dividing total revenue during the relevant period by the average number of customers and dividing the result by the number of months in the relevant period.

Basic Earnings Per Share Basic Earnings Per Share is computed by dividing the profit for the period attributable to the owners of the parent by the weighted average number of shares outstanding during the period.

Capital Expenditure (Capex)

It is not a GAAP measure and is defined as investment in capital work in progress (CWIP) gross fixed assets (tangible and intangible excluding spectrum/licence) and excluding provision on capital work in progress (CWIP).

Capital Employed Capital Employed is defined as sum of equity attributable to equity holders of parent, Non-controlling interests ('NCI') and net debt. The definition has been revised to include Non-controlling interests ('NCI') and the related KPIs have been reinstated for all the reported periods.

Cash Profit from Operations before Derivative and Exchange Fluctuation

It is not a GAAP measure and is defined as profit from operating activities before depreciation, amortization and exceptional items adjusted for finance cost (net of finance income) before adjusting for derivative and exchange (gain)/ loss.

Churn

Churn is derived by dividing the total number of customer disconnections during the relevant period by the average number of customers and dividing the result by number of months in the relevant period.

Constant currency Customer Customer Base

The Group has presented certain financial information that is calculated by translating the results for the current financial year and prior financial years at a fixed ‘constant currency’ exchange rate, which is done to measure the Organic performance of the Group. A customer is defined as a unique subscriber with a unique mobile telephone number who used any of Airtel’s services in the last 30 days. Total number of subscribers that used any of our services (voice calls, SMS, data usage or Airtel Money transaction) in the last 30 days.

Data Average Revenue Per User (ARPU) Data Capacity Data Customer Base

Data ARPU is derived by dividing total data revenue during the relevant period by the average number of Data customers and dividing the result by the number of months in the relevant period. Total data capacity per day for the Region. Total subscribers who consumed at least 1MB on the Group’s GPRS, 3G or 4G network in the last 30 days.

Data customer penetration Data Usage per Customer

It is computed by dividing the data customer base by total customer base. It is calculated by dividing the total MBs consumed on the Group’s network during the relevant period by the average data customer base over the same period, and dividing the result by the number of months in the relevant period.

Diluted Earnings per share Earnings per share (EPS)

Diluted EPS is computed by adjusting, the profit for the year attributable to the shareholders and the weighted average number of shares considered for deriving basic EPS, for the effects of all the shares that could have been issued upon conversion of all dilutive potential shares. The dilutive potential shares are adjusted for the proceeds receivable had the shares been actually issued at fair value. Further, the dilutive potential shares are deemed converted as at beginning of the period, unless issued at a later date during the period. EPS is computed by dividing the profit for the period attributable to the owners of the company by the weighted average number of ordinary shares outstanding during the period.

EBITDA It is not a GAAP measure and is defined as operating profit before depreciation, amortisation, CSR cost and

exceptional items.

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EBITDA Margin It is not a GAAP measure and is computed by dividing EBITDA for the relevant period by total revenue for the

relevant period.

EBIT Free Cash Flow

It is not a GAAP measure and is defined as EBITDA adjusted for depreciation and amortization. Free cash flow defined as Operating free cash flow less cash interest, cash tax and change in operating working capital.

Francophone Africa Interest Coverage Ratio

One of the Group’s segments called earlier `Rest of Africa`. EBITDA for the relevant period divided by interest on borrowing for the relevant period.

Lease Obligation

Lease obligation represents the present value of the future lease payment obligation for assets taken on finance lease.

Mobile Broadband Base stations

It includes all the 3G and 4G Base stations deployed across all technologies/spectrum bands.

Mobile Money active customers Mobile Money ARPU Mobile Money transaction value Mobile Money transaction value per customer per month

Total number of subscribers who have done any Mobile Money usage event in last 30 days. Mobile Money ARPU, which is derived by dividing total Mobile Money revenue during the relevant period by the average number of Mobile Money customers and dividing the result by the number of months in the relevant period. It is defined as value of any financial transaction performed on Mobile Money platform. It is computed by dividing the total Mobile Money transaction value on Group’s Mobile Money platform during the relevant period by the average number of Mobile Money customers and dividing the result by number of months in the relevant period.

Mobile service Network Towers/Sites

Mobile service is defined as the core Telecom services including revenue from tower operation services provided by the Group and excludes Airtel Money services. Comprises of base transmission system (BTS) which holds the radio transceivers (TRXs) that define a cell and coordinates the radio links protocols with the mobile device. It includes all the ground based, roof top and in building solutions as at the end of the period.

Net Debt It is not a GAAP measure and is defined as the long-term borrowings, short term borrowings and leased liability less cash and cash equivalents.

Net Debt to EBITDA (LTM)

It is not a GAAP measure and is computed by dividing Net Debt as at the end of the relevant period by EBITDA for preceding last 12 months (from the end of the relevant period). This is also referred to as leverage ratio.

Net Debt to EBITDA (Annualized)

It is not a GAAP measure and is computed by dividing net debt as at the end of the relevant period by EBITDA for the relevant period (annualized).

Net Revenue It is not a GAAP measure and is defined as total revenue adjusted for IUC (Interconnection Usage charges) charges, cost of goods sold and Airtel Money commission.

Net profit margin Operating company

It is computed by dividing Cash Profit from Operations before Derivative and Exchange Fluctuation by total revenue. Operating company is defined as business units providing telecommunication services and mobile money services across the Group’s footprint.

Operating Profit

It is a GAAP measure and is computed as revenue less operating expenditure including depreciation & amortisation and operating exceptional items.

Operating Free Cash flow

It is computed by subtracting Capital Expenditure from EBITDA.

Profit / (Loss) after current tax expense Reported currency

It is not a GAAP measure and is defined as Profit / (Loss) before taxation adjusted for current tax expense. Reported currency is the currency where actual periodic exchange rates are used to translate the local currency financial statements of OPCO into US dollar. Under Reported currency the assets and liabilities are translated

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into US dollar at the exchange rates prevailing at the reporting date whereas the statements of profit and loss are translated into US dollar at monthly average exchange rates.

Return On Capital Employed (ROCE) Return on Equity (ROE)- Pre-Tax

For the full year ended, ROCE is computed by dividing the earnings before interest and tax for the period by

average (of opening and closing) capital employed. Capital employed used for ROCE is defined as sum of Total

Equity and Net Debt. For the quarterly computation, it is computed by dividing the earnings before interest and

tax for the preceding (last) 12 months from the end of the relevant period by average capital employed. Average

capital employed is calculated by considering average of quarterly average for the preceding (last) four quarters

from the end of the relevant period.

For the full year ended, it is computed by dividing profit before tax (including exceptional item) for the period by the closing Total Equity. For the quarterly computations, it is computed by dividing profit before tax (including exceptional items) for the preceding last 12 months from the end of the relevant period by the closing Total Equity for the relevant period.

Return on Equity (ROE)- Post-Tax

For the full year ended, it is computed by dividing net profit for the period by the closing Equity attributable to equity holders of parent. For the quarterly computations, it is computed by dividing net profit for the preceding last 12 months from the end of the relevant period by the closing Equity attributable to equity holders of parent.

Revenue per Site per month

Revenue per Site per month is computed by: dividing the total revenues, excluding sale of goods (if any) during the relevant period by the average sites; and dividing the result by the number of months in the relevant period.

Smartphone Smartphone Penetration

Smartphone is defined as mobile phone with interactive touch screen that allows the user to access internet apart from making calls and sending text messages. It is computed by dividing the smartphone devices by total customer.

Total Employees Total on-roll employees as at the end of respective period.

Total MBs on Network Total MBs consumed (uploaded & downloaded) by customers on the Group’s GPRS, 3G and 4G network during the relevant period.

Voice Minutes on Network

Duration in minutes for which a customer uses the Group’s network. It is typically expressed over a period of one month. It includes incoming, outgoing and in-roaming minutes.

Voice Minutes of Usage per Customer per month

It is computed by dividing the total voice minutes of usage on Group’s network during the relevant period by the average number of customers and dividing the result by number of months in the relevant period.

Abbreviations 2G

Second-Generation Technology

3G

4G

ARPU

bn

EBITDA

EPS

Third - Generation Technology

Fourth - Generation Technology

Average revenue per user

Billion

Earnings Before Interest, Tax, Depreciation and Amortization

Earnings Per Share

GAAP

GB

Group

Generally Accepted Accounting Principles

Gigabyte

The Airtel Africa plc, together with its subsidiary undertakings referred to as the ‘Group’

IAS

IFRS

International Accounting Standards

International Financial Reporting Standards

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KPIs

KYC

Key performance indicators

Know Your Customer

LTM

Last twelve months

MB

MI

Megabyte

Minority Interest (Non-Controlling Interest)

Mn

Million

OpCo Operating company

pp

P2P

PPE

SMS

TB

UoM

Percentage points

Person to Person

Property, Plant and equipment

Short Messaging Service

Terabyte

Unit of measure

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Written correspondence to be sent to:

Airtel Africa Investor Relations

E-mail address: [email protected]

Website: https://airtel.africa/investors Tel: (+44) 20 7493 9315

mailto:[email protected]

https://airtel.africa/investors

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