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Authorities. We have reviewed 4 good candidates and recommend that Johan Van Rensberg
from the parent company of our main rival, V-Mobile, be appointed as new Group CEO as soon

as possible.

3rd Priority: Delivering on 4 Key Investor Ratios.

We are left with roughly 75 days to the end of the 2016 financial year and the markets are
looking to know if we will deliver on our financial targets. This board needs to know where we

stand, just in case we need to use this last quarter to turn things around. It is very clear we will
miss our targets in 3 of the 4 Key Investor Ratios mainly due to the Nakolia fine. Limited scope
however exists within the Shared Services Center Project to achieve further savings to help

address this. Even so, our advice to the board is to start preparing now for an Earnings Warning
to the market at the appropriate time.

4th Priority: Shared Services Center (SSC) Project Oversight

Apart from the S$6.6 billion of cost savings we delivered in 2014, our 2016 reviews found a
further S$6.6 billion which the Board asked us to deliver over 4 years to prevent making abrupt
activity or transaction transfers that will unsettle key stakeholders who have hitherto, bitterly

attacked our SSC Project as 'off-shoring' of jobs to Sadimba. This issue is Priority 4 as it is
directly contributes to addressing our 3rd Priority above. Furthermore, it is a relatively more
discretionary internal matter compared to our 3rd Priority which relates to targets we have

promised the markets. It would seem delays in the transfer of activities and transactions from
the regions outside of Sadimba is progressing much slower than anticipated. Whilst the reasons
may be geographic, it could also be an indication of underlying continued resistance in those

markets about the decision to establish an SSC in Sadimba in the first place. An investigation to
establish the facts is urgently needed.

5th Priority: Due Diligence for M/A Deal in Chininsia
The Board has decided to proceed into Chininsia by acquiring CloudNet through a share

exchange and had asked for a Due Diligence as well as a recommendation on a suitable 'terms
of offer'. This issue is prioritised last as the license opportunity in Chininsia only opens in 2018

and we still have enough time to conduct a Due Diligence and acquire CloudNet in 2017 in time
to submit our bid to the Chininsia Authorities. Subject to a satisfactory Due Diligence, we advice
that an offer of 1 of MCOM shares for every 45 of CloudNet shares be made.

Other major issues were considered ethical rather than commercial in nature and as such have
been dealt with separately in section 5 of this report.

Developed by The CharterQuest Institute for 'The CFO Case Study Competition 2016'
www.charterquest.co.za | Email: thecfo@charterquest.co.za