Good day, I am having issues with finding an appropriate solution to the following problem. The requirement is posed below and the issue will be attached as a seperate file. Could you kindly assist me?

Younowhavetogointodetail,analysethe strategicchoice,financialandnon?financialimpact,longtermandshorttermimpact, impactonthebusinessetc.Putthedifferentoptionsyouhavetoresolveeachissueina tableandevaluatethoseoptions.Basedonyouranalysis,stateyourfinal recommendationsforthis issue.

Problem/issue: Shared Services Center (SSC) in Sadimba MCOM has seen its rate of increase in revenue begin to wane. As the global mobile market fast approaches maturity, the first signs of maturity in its home market has began to show with a decline in revenue and operating performance in 2014. Experts believed this will be corrected in 2015 but the numbers do not seem to confirm that. MCOM had anticipated this trend and responded in 2012 by setting a bold new direction toward expanding its digital revenue options as well as looking inwards to reforming its operating model including monetising its passive investments. It started rationalising key aspects of its supply chain activities in 2012 using a Shared Services Model located in Sadibma, delivering savings of almost S$6,600m in 2014, to the delight of shareholders. MCOM has approached some of its investors to discuss the possibility of buying more equity to help settle the Nakolia fine. The investors have been keen to understand in the light of a stagnating mobile market, how the reforming of the MCOM operating model was proceeding as they believe in the near term it may be the main source of earnings growth. Although they are pleased to see the S$6600m savings, they are doubtful and have asked to be provided with a breakdown of this sum by the next Annual General Meeting (AGM). The MCOM board has however now implemented a full SSC at its head quarters in Sadimba to expand on these savings to delight its shareholders even more but also as part of its strategy to reform its operating model. A timetable has been set to move key operational support activities such as Information Technology, Finance & Human Resources from its businesses across Africa to be performed at the newly formed SSC as well as the treasury activities. The process has begun but a number of popular news channels in its key markets have began reporting that MCOM is abandoning its Corporate Social Responsibility towards these African countries, describing it as an 'off-shoring' programme designed to only benefit its home country, Sadimba and its shareholders. One news channel reported a key policy maker in one of the French-speaking countries MCOM operates in as saying: 'We thought it will be only big business from the West and the Chinese who will come in the name of 'jobcreating' foreign investors but end up bringing their own citizens to dominate us or ship jobs overseas, so we decided it is time to award mobile operator licenses to our own African company. It is clear from this SSC decision, big business is big business and their self interest and corporate greed will always prevail. The French are even better because you find they make far less revenue from our countries than from theirs. In the case of MCOM, they make more revenue from Nakolia for instance than even their home country but they choose to have their SSC there so they can cut jobs here and create jobs and boost investment that side and pay with money they make from here.' Citizen Rights Organisations have started calling for the public to boycott MCOM products and services in their home countries in a bid to press MCOM to reverse the decision. Data collected in the last quarter does not show any evidence that the calls for boycott has had any impact on MCOM revenues and operations. In a separate development, an employee survey across the group has revealed a marked discontent from employees of its African operations mostly the low level transaction processing operatives who fear their jobs will be shipped to Sadimba. Local partners, some co-shareholders as well as Senior Managers of some of MCOM Africa businesses have started voicing concerns that the autonomy they once enjoyed handling their own supply chain activities was taken away from them and now the SSC seeks to take away finance, IT, Human Resources, etc. The board requires a broader assessment of the SSC decision. The following costing data has been presented by The CharterQuest Institute for use in quantifying the savings achieved thus far that will also help respond to the shareholders at the next AGM: MCOM MCOM MCOM Sadimba Nakolia (All Others) Annual number of transactions (millions) 1.6 1.9 1.8 Average no. of minutes spent per transaction per Operative 45 60 90 20% 30% 60% 90 120 180 % of transactions escalated to Managers = % of Management time to operatives Average no. of Manager minutes per escalated transaction. Overhead costs absorbed per operative hour (S$) TOTAL 1,800 Standard Operative costs per hour (S$) 240 Standard Manager costs per hour (S$) 480 Additional no. of fulltime non-operative staff no longer required Average salary of fulltime non-operatives staff no longer required Average cost recovery per transaction by SSC for processing on behalf MCOM businesses (S$) (75% is new personnel cost) 400 200 600 200,000 1450 Page|0 The Case Study For this maiden edition of the Competition, we chose Mobile Communications (MCOM) Plc, a multinational mobile telecommunications giant domiciled in Sadimba, Africa and listed on the Sadimban Stock Exchange with the S$ as its functional currency and the US$ as its presentation currency. Sadimba is an English-speaking country and one of the most economically advanced in Africa. It is the base from which majority of global multinationals seeking to enter into and expand in the rest of Africa prefer to locate their regional head quarters. MCOM's financial year is January to December. MCOM represents a real-African business in terms of its mastery of the strategic and operational challenges of doing business in africa (and the Middle East). MCOM competes vigorously in a number of markets with different rivals but prefers to benchmark itself against V-Mobile as provided in Appendix 3. 5.1 The Global Environment of MCOM The mobile industry continues to scale rapidly with half of the world's population now owning a mobile subscriptionup from just 1 in 5 ten years ago. An additional one billion subscribers are predicted by 2020, taking the global penetration rate to approximately 60%. Developed markets such as Europe and North America are growing more slowly as penetration rates approach levels close to saturation. Meanwhile Sub-Saharan Africa is still the world's most under-penetrated regions with subscriber growth at +/-12% and penetration rate below 45% and predicted to reach 56% by FY2020. Technology shifts and smartphones: There is an accelerating technology shift to mobile broadband networks (i.e. 3G and 4G technologies) predicted to reach 70-80% of global connections by 2020 -the level at which growth tends to slow. This migration is being driven by greater availability and affordability of smartphones and more extensive network coverage with most of the growth expected from developing markets. Smartphone average selling prices (ASPs) in 2008 where US$200 and in some developing markets it has reached the 'sweet spot' of the US$25-50 range. Shifts to mobile data: The growing number of smartphones and other advanced devices (e.g. tablets) are increasing the use of data-intensive applications, such as video streaming, on mobile networks. Cisco estimates that smartphones generate 37 times more data traffic than feature phones, while 4G smartphones generate almost 3 times as much data traffic as 3G smartphones with volumes forecast to grow at a Compound Annual Growth Rate (CAGR) of 57% out to 2019, an almost tenfold increase. On demand video on mobile devices is the key driver of mobile data growth, with a 66% annual increase through to 2019 compared with 57% for data as a whole. In 2014 YouTube reported that mobile devices now generate 50% of its global traffic, up from 41% in 2013. Major operators are monetising this strong growth helping to stablise revenues at a time when traditional services are under pressure and operators have significant investment commitments as they roll out high speed networks. The CFO Business Case Study Competition 2016 Pack www.charterquest.co.za | Email: thecfo@charterquest.co.za Page|1 Competition & regulation: In most countries or markets, Governments have set up a Telecommunications Regulatory Authorities to oversee the orderly conduct of the industry through the regulation of telecommunications services and equipment; Spectrum Management as well as Advisory and Planning services. Regulatory measures have included the introduction of mobile virtual network operators (MVNOs) and mobile number portability. IP-based services such as WhatsApp have continued to grow at the expense of short message services (sms) negatively impacting on revenue growth. Key operators that fiercely compete with each other for the Sub Saharan market include MTN, Bharti-Airtel, Globacom, Bartini, Etisalat, M-Tel, Orascom Telecom, Cell C and Vodafone Group. Cloud computing and managed IT solutions: According to Infocomm Development Authority of Singapore (IDA), the global market for cloud computing is expected to reach US$241 billion by FY2020. Dependency on hard-to-deploy physical servers results in slow response to variable needs, which drives organisations and government agencies worldwide to use Cloud computing. Cloud computing provides easy and cost effective solutions to organisations to address their need for data storage. Additionally, it offers reliable and easy storage to the telecom and related companies for developing mobile apps. At the same time, it is expected to reduce IT companies' spending on data analytics/big data. Therefore, a positive outlook for cloud computing may increase the demand for the operators' offerings. Capital investment: After reducing spending during the height of the financial crisis in 2009/10, capital investment began to rise again at the start of the current decade, reflecting the need to increase capacity and deploy mobile broadband networks. Globally, operators have invested heavily in their networks in the past three years. In 2014, the figure was US$216 billion, an annual increase of more than 9%. Going forward, the rate of growth is likely to moderate as 4G networks near completion in some regions and the cost of equipment tends to decline as technologies become more mature. Investment levels globally are forecast to grow at a CAGR of 2.5% through 2020. Developing new revenue streams from more sustainable business models will be key for operators to be able to fund such significant investments. Job creation, economic growth and public finance impact: Increasingly prevalent and higher speed mobile networks contribute to many aspects of economic, political and social life. Mobile is the predominant infrastructure in emerging markets and is available to a larger proportion of the population than many other basic services, such as electricity, sanitation and financial. In 2014, the mobile industry contributed US$3 trillion to the world economy in value added terms, equivalent to around 3.8% of global GDP. As mobile operators and the ecosystem purchase inputs and services from their providers in the supply chain, a multiplier effect on the rest of the economy is created, generating sales and value added in other sectors and industries and estimated at US$220 billion in 2014. Page|2 Furthermore an estimated 2.2% of global GDP can be attributed to the increased productivity created by the widespread use of mobile technology as it has transformed the way in which economic activity is carried out in virtually all global economic sectors, allowing more efficient ways for workers and businesses to communicate. In 2014, mobile and the broader ecosystem directly employed 12.8 million people globally and approximately 11.8 million jobs were indirectly supported, bringing the total impact of the mobile industry to just under 25 million jobs. The industry also makes a very significant contribution to public funding, including value added, corporation and income tax as well as social security. By 2020, mobile technology is predicted to increase the sector's global GDP contribution to 4.2%. Digital inclusion: Mobile is bringing internet access to millions yet huge numbers remain unconnected. Experts estimate that global internet users grew from 1.6 billion in 2008 to 2.9 billion by FY2014, accounting for approximately 40% of world population with the current global gap largely to be addressed by mobile networks, which already provide access to billions. At the end of 2014, 1.8 of the 2.4 billion individuals using mobile devices to access the internet were in developing markets largely in rural areas, with low incomes and literacy rates that create barriers to mobile internet adoption. By 2020, developing markets' mobile internet penetration will have reached 45%, although in both Africa and Middle East, this will remain below 40%. McKinsey reports that if internet access achieves an impact on the same scale as mobile telephony has in Africa, it could account for as much as 10% of total GDP by 2025, up from only 1% today, massively transforming sectors such as retail, agriculture, education and healthcare. Mobile Money, Internet of Things (IOTs), e-Commerce and m-Commerce! In the past 5 years, mobile money services have spread across the developing world and estimates are that this will grow by over 70% by 2020. It is expected that account-to-account interoperability will increase transaction revenues easing money transfer domestically and across networks. These include international remittances, merchant payments and bulk payments e.g. salaries and government to people transfers. There are tangible consumer benefits of new connected services, with a strong focus on both wearable devices and the 'Smart Home'. Connected devices and sensors could deliver a smarter, more efficient home, with smartphones and tablets interacting with various connected objects and devices, from lighting to basic home security systems and kitchen appliances to networked devices like PCs and smartphones. Samsung recently announced that by 2020, all of its products, from smartphones to refrigerators, would be internet connected. Mass-market smartphones, fast connections and feature-rich applications are extending the convenience and interactivity of online commerce into the physical bricks and mortar world. Customers are able to look up product and service information, download and store vouchers, search for merchants, explore transport options, run price comparisons, buy tickets, purchase products and order services, all while on the move. Meanwhile retailers, transporters and other service providers are increasingly using mobile technology to improve customer experience. Digital commerce continues to grow globally with experts predicting 5 year CAGR will be 16% by FY2020. Page|3 Interaction, social media and data privacy: Consumer appetite for mobile data and richer services is growing rapidly, and as a result new IP-based communications services such as Skype, WhatsApp and Facebook Messenger are becoming increasingly popular. These services will continue to gain traction with the growth of Long-Term Evolution (LTE) networks and devices, meaning operators will need to consider which type of partnership or over-the-top integration models will allow them to drive revenue and sustain their business models. The widespread take-up and use of mobile enabled digital services depends on a robust and effective framework for the protection of personal data and privacy. As more people access the mobile internet, and as online commerce, social media, gaming and other activities gain popularity; consumers are increasingly voicing privacy concerns and demanding better protection: Industry consolidation in search for economies of scale and scope: Facing both rapid growth in data traffic and increasing competition from online service providers, mobile operators need sufficient scale to invest in network infrastructure and the development of new services. In overly fragmented markets, individual operators have limited economies of scale and scope, impacting their ability to develop sustainable business cases for additional investment. Many emerging markets, in particular, are highly fragmented. A recent study by Frontier Economics for the GSMA highlighted the fact that in some countries there are five or more players with a market share of at least 5%. In markets with sub-scale operators, policymakers should review the antitrust framework and take steps to reduce constraints on market-driven restructuring. In some cases, policymakers may need to streamline the merger review process and impose less onerous remedies on those mergers that gain approval. Clearly, the only way to achieve the necessary scale and scope is via industry consolidation. Rationalisation of cost bases appears to be the new trend in an industry that appears to be approaching maturity. Page|4 5.2. MCOM Group strategy & operations MCOM's mission is to deliver a better quality of life to its customers by leading in the digital space. It is at the forefront of global technological advancements in voice and digital transformation that is increasingly reshaping the business models of major companies, transforming industries and the way people interact and pursue their economic livelihood especially in the emerging markets. Its portfolio of product offering comprise of: 1. Business Solutions: This offers a wide range of enterprise solutions and cloud computing services for business requirements covering Machine2Machine, enterprise applications, calling and messaging solutions, Internet and email solutions, bulk communication solutions, network solutions, data center services, security solutions, business applications and business connectivity solutions. 2. Voice and Data Services: This includes 2G and 3G networks in both prepaid and postpaid services. The voice offerings include international roaming, teleconferencing and other community payphone models including interconnection services to other telecoms' networks. Data Services include GPRS, Internet browsing, e-mail, video streaming and location-based services. 3. Messaging: These include short messaging service (SMS) and (MMS). The SMS services include content delivery, bulk SMS and person-to-person messaging services. Its MMS services include multimedia content such as images, videos and sound clips' transfer through messages. 4. Value Added Services: These include Mobile Money Banking, BlackBerry (BIS), Airtime transfer, International roaming and EVD services. MCOM was founded in 1994 and has reported profits from inception. It is audited by joint auditors, PedoubeluiC Inc, a major global audit firm as well as Sinsago Auditors, a firm of Chartered Accountants of considerable reputation in the Sadimba market. MCOM has about 250 million mobile subscribers with operations in a vast number of African countries as well as the Middle East. It is one of the top three players in its domestic market and on the African continent with strategic suppliers, partners and investors globally. The MCOM Group seeks to maximise shareholder value as its overarching objective but it takes its commitment to all its stakeholders very seriously, subscribing to universally accepted principles of good ethics, corporate governance as well as business sustainability and integrated reporting. Its strategic priorities include: 1. Innovate and deliver sustainable growth and stakeholder value 2. Build and maintain a strong brand and grow market share 3. Deliver superior customer service 4. Continuously adapt the operating model to remain lean, agile and competitive 5. Minimise earnings volatility 6. Improve regulatory standing, and Page|5 7. Maintain a good external credit rating. The group has since its inception maintained a relatively high appetite for risk going by its preference for operations in emerging markets with some of its key markets exposed to major civil strife and high political risk and uncertainty. A sound risk management and governance framework is however in place to Page|6 ensure key risks are managed within the boards risk appetite. Given the strategic developments in its key markets with most degenerating mainly after entry, the group has shifted its risk appetite: In 2005, the board defined its risk appetite as follows: Risk appetite Risk tolerance MCOM has a higher risk appetite related to strategic We expect a return of 25%+ on shareholder equity and objectives and is willing to accept higher losses in the are willing to take more than a 45% chance that an pursuit of higher returns. investment leads to a loss of more than 50% of our existing equity capital. In 2015 it was revised to this: Risk appetite Risk tolerance MCOM will pursue a low risk appetite related to risky We will not accept more than a 30% chance that a line of ventures and, therefore, is willing to invest in new business will reduce our operating earnings by more than business but with a low appetite for potential losses. 20% over the next ten years. MCOM has grown rapidly over the last decade through a string of acquisitions and strategic alliances and agreements aimed at increasing its presence and expanding its portfolio of products. In some markets it has entered by directly bidding for licenses from its home country in Sadimba and in others it managed to do so via the acquisition of local players to facilitate its bid for licenses. Yet in others it has entered by negotiating a series of Joint Ventures (JVs). It maintains key supplier accounts with handset manufacturers such as SonnyEricsson, Apple, Samsung & Blackberry and well as a host of global app developers and vendors. MCOM has 4 key operating segments used to make operating decisions, allocate resources and assess performance as follows: 2015 Revenue 2014 2015 EBITDA 2013 contribution % Contribution % Sadimba 22 25 16 18 Nakolia 36 34 48 46 ArabCom 8 7 9 7 MCOM (All Others) [representing its 34 41 27 29 operations in about 19 other countries) Total 100% 100% 100% 100% MCOM 5 YEAR ABRIDGED FINANCIALS & FINANCIAL RATIOS TO 2014 : APPENDIX 1 Page|7 (all figures in S$ million) 1. INCOME STATEMENT CAGR % 9 Other income 2013 2012 2011 2010 146,930 137,270 121,867 109,834 104,500 7,928 Revenue 2014 1,327 894 1458 - (78,167) (70,124) (61,717) (61,220) Operating expenses 7 (81,667) EBITDA 14 73,191 60,430 52,637 49,575 43,280 Depreciation and amortisation 11 (21, (19,278) (15,952) (14,032) (14,119) - - (31) (31) 513) Impairment of goodwill +100 (2,033) Operating profit 14 49,645 41,152 36,685 35,512 29,129 Net finance costs (1) (3,668) (1,234) (3,790) (1,512) (3,873) 878 - - - - Net monetary gain Share of results of associates and join ventures after tax 19 4208 3,431 3,008 2,821 2,098 Profit before tax 17 51,063 43,349 35,903 36,821 27,354 Income tax expense 6 (13,702) (12,487) (11,835) (13,034) (10,527) Profit after tax 22 37,702 30,862 24,068 23,787 16,827 2. STATEMENT OF FINANCIAL POSITION CAGR % 2014 2013 2012 2011 2010 Property, plant and equipment 11 87,546 92,903 73,905 64,914 57,345 Goodwill and intangible assets 6 36,618 37,751 32,594 32,672 28,518 Investment and loans 40 37,945 20,385 12,409 11,440 9,964 Deferred taxes (2) 1,109 2,044 1,291 1,029 1,225 Bank balances, deposits and cash 10 48,736 45,673 34,565 43,458 32,933 Other current assets 24 41,731 30,900 21,310 20,560 17,569 Total assets 15 253,685 229,656 176,074 174,073 147,554 Equity attributable to equity holders of the company 16 128,517 116,479 89,006 88,897 71,855 Non-controlling interests 22 4,925 5,333 3,881 3,802 2,219 Total equity 16 133,442 121,812 92,887 92,699 74,074 Interest-bearing liabilities 12 53,279 46,025 32,084 33,208 34,454 Non interest-bearing liabilities 15 55,952 48,349 42,392 40,200 32,043 Deferred tax liabilities 12 11,012 13,470 8,711 7,966 6,983 Total liabilities 13 120,243 107,844 83,187 81,374 73,480 Total equity and liabilities 15 253,685 229,656 176,074 174,073 147,554 Page|8 3. STATEMENT OF CASH FLOWS CAGR % 2014 2013 2012 2011 2010 Net cash inflows from operating activities (1) 27,132 27,025 20,062 23,279 28,722 Net cash used in investing activities 17 (25,991) (19,835) (24,212) (17,492) (13,982) Net cash from/(used in) financing activities 64 2,639 6,264 (5,280) (8,867) 368 (29) 3,780 13,454 (9,430) (3,080) 15,108 18 39,577 22,539 33,074 32,626 20,763 (285) 3,584 (1,105) 3,528 (3,245) 7 43,072 39,577 22,539 33,074 32,626 Dividends paid to equity holders of the company 9 34 64,628 (20,527) 59,708 (16,187) 51,105 (14,919) 46,626 (11,722) 45,962 (6,313) Acquisition of property, plant and equipment 8 (19,562) (24,568) (20,741) (13191) 14,366) Net increase/(decrease) in and cash equivalents cash Cash and cash equivalents at start of the year Exchange (losses)/gains and monetary loss on cash and cash equivalents Cash and cash equivalents at end of the year Statement of cash flows -extracts Cash generated from operations 4. 5 YEAR RATIO COMPARATIVES TO 20 14 CAGR % 2014 2013 2012 2011 2010 Performance per ordinary share Headline earnings per share in cents 19 1 526 1 411 1 089 1 069 761 Dividends per share in cents 26 1 245 1 035 824,0 749,0 500,0 Net Book value per share in cents 16 69,5 62,2 47,3 47,2 38,1 Return on (average) assets in % 20,5 20,3 21,0 22,1 19,6 Return on (average) shareholder funds in % 23,0 25,2 22,5 24,6 19,8 EBITDA margin in % 49,8 44,0 43,2 45,1 41,4 Effective tax rate in % 26,2 28,8 33,0 35,4 38,5 Gearing in % (Interest bearing liabilities/total equity) 40 38 35 36 47 Interest cover (times) (operating profit/finance costs) 4,8 3,3 4,3 5,7 4,8 Dividend cover (times) (headline earnings/total dividends) 1,2 1,4 1,3 1,4 1,5 Returns and profitability ratios Solvency and liquidity ratios Share and exchange rate statistics Authorised share capital (million) 2 500 2 500 2 500 No. of ordinary shares in issue at year end (millions) 1 848 1 873 1 883 1885 1885 Weighted average no. of shares held during the year (millions) 1 841 1 833 1 838 1 854 1 842 222 217 178 144 135 335,174 271,440 Closing share price (S$ per share) Market capitalisation 410,256 406,441 2 500 2 500 254,475 US$ to S$ exchange rates (average) 10 10,86 9,65 8,16 7,17 7,34 US$ to S$ exchange rates (closing) 15 11,55 10,52 8,47 8,07 6,61 5 YEAR KEY NON FINANCIAL RATIOS TO 2014 : APPENDIX 2 Page|9 NON-FINANCIAL PERFORMANCE INFORMATION CAGR % Non. of countries where MCOM owns GSM licenses 2014 2013 2012 2011 2010 21 21 21 21 21 Subscriber numbers (millions) 12 223 207 189 164 142 Group entities (excluding joint ventures) 13 176,8 163,9 146,4 127,5 109,7 Joint ventures 10 46,5 43,9 42,9 37,0 31,9 15 15 15 15 15 (4) 22,204 25,424 26,716 24,252 26,055 8 1 531 527 1 520 895 1,040, 723 950 564 1 127 254 154 135 131 120 105 34 35 38 34 36 10 28 26 25 22 19 (12) 92 108 122 134 154 32 35 35 35 34 No of countries where MCOM has largest market share Total number of employees Carbon dioxide and equivalent (C02e) emissions from energy use per square foot OPERATIONAL INFORMATION Sadimba Mobile penetration (%) Market share Subscribers (millions) ARPU (S$) i.e. Average Revenue Per User EBIDTDA Margin Capex/revenue (%) 15 14 16 11 11 11,55 10,52 8,47 8,07 6,61 Mobile penetration (%) 73 69 62 54 49 Market share 49 49 48 50 52 11 60 57 47 42 39 (14) 6 7 9 10 11 EBIDTDA Margin 59 61 58 62 63 Capex/revenue (%) 16 30 36 18 14 15,93 15,23 18,47, 20,10 23,00 120 114 113 103 92 46 47 47 45 44 10 44 41 41 35 30 (16) 4 4 7 8 8 EBIDTDA Margin 43 43 44 43 41 Capex/revenue (%) 27 19 9 11 18 2 342 2 356 2 905 1 378 1 566 Mobile penetration (%) 76 70 61 52 Market share 42 35 46 40 Subscribers (millions) 91 83 76 65 4 5 6 7 US$ to S$ exchange rates (closing) 15 Nakolia Subscribers (millions) ARPU (US$) i.e. Average Revenue Per User Nakolian currency (N$) to US$ closing exchange rates (9) JV-Cellular Mobile penetration (%) Market share Subscribers (millions) ARPU (US$) i.e. Average Revenue Per User Araby currency (A$) to US$ closing exchange rates 11 MCOM (All Others) ARPU (US$) i.e. Average Revenue Per User OTHER USEFUL DATA : APPENDIX 3 P a g e | 10 3.1 MCOM BENCHMARK COMPETITOR V-MOBILE 5 YEAR RATIOS TO 2014 CAGR % 2014 2013 2012 2011 2010 Performance per ordinary share Headline earnings per share in cents 882 845 902 885 691 Dividends per share in cents 6 696 726 845 707 - Net Book value per share in cents 102 119 139 135 146 19,19 22,77 25,03 22,65 19,84 56,17 60,39 66,06 59,48 56,16 24,9 26,9 27,0 24,8 27,0 Returns and profitability ratios Return on (average) assets in % Return on (average) shareholder funds in % 0 EBITDA margin in % Solvency and liquidity ratios Gearing in % (Net (cash)/debt as a % of total equity Interest cover (times) (operating profit/finance costs) Dividend cover (times) (headline earnings/total dividends) 3.2 (0.02) 90 42 38 49 47 11,28 19,63 20,89 22,30 15,63 1,27 1,16 1,07 1,25 - MCOM VS V-MOBILE MOST RECENT SHARE PRICE PERFORMANCE V-MOBILE Approximate market cap in October 2015 just before Nakolia fine = S$350,000m MCOM Source: Adapted from google finance