Network related intangible assets represent future income from leasing excess tower capacity to new tenants. Customer related intangible assets represent customer contracts and relationships.

* Restated for the correction in accounting in respect of the acquisition of Fiberco Soluções de Infraestrutura S.A. (see note 2.24).

Amortization expense has been included in cost of sales and administrative expenses in the statement of loss and other comprehensive (loss)/income:

Management reviews the business performance based on the geographical location of business. It has identified IHS Nigeria Limited, INT Towers Limited, IHS Towers NG Limited, IHS Cameroon S.A., IHS Côte d’Ivoire S.A., IHS Rwanda Group, IHS Zambia Group, IHS Kuwait Limited, the IHS Latam tower businesses and Fiberco Soluções de Infraestrutura S.A. (“I-Systems”) as the main CGUs/Group of CGUs relevant for the allocation of goodwill. IHS Nigeria Limited, INT Towers Limited and IHS Towers NG Limited CGUs related to the Nigeria operating segment, IHS Cameroon S.A, IHS Côte d’Ivoire S.A, IHS Zambia Group and IHS Rwanda Group CGUs related to the SSA operating segment, IHS Kuwait Limited CGU related to the MENA operating segment, and the IHS Latam tower businesses and I-Systems relate to the Latam operating segment. Goodwill is monitored by management at a CGU/group of CGU level as noted above. The following is a summary of goodwill allocation for each CGU.

* Restated for the correction in accounting in respect of the acquisition of Fiberco Soluções de Infraestrutura S.A. (see note 2.24).

The recoverable amount of each CGU, except for the IHS Latam tower businesses group of CGUs, was determined based on value in use calculations. The recoverable amount of the IHS Latam tower businesses group of CGUs was determined based on fair value less costs of disposal.

These calculations used pre-tax cash flow projections based on the financial budgets approved by management covering a five-year period. Within the five-year period, revenue growth rates are based on past experience and expected future developments in the Group’s CGUs. The weighted average growth rates used are consistent with the forecasts included in industry reports. Cash flows beyond the five-year period were valued using the estimated terminal growth rates stated below. The terminal growth rates did not exceed the long-term average growth rate for the infrastructure business in which each CGU operates.

The key assumptions to which the value-in-use calculations are most sensitive are:


	Discount		Terminal		Tenancy				Gross margins excluding depreciation &
	rate		growth rate		Ratio*				amortization*
2021
IHS Nigeria Limited	16.1	%	2.7	%	3.32	x -	5.18	x	64.2	% -	79.7	%
INT Towers Limited	16.0	%	2.7	%	3.56	x -	4.98	x	67.4	% -	74.9	%
IHS Towers NG Limited	16.5	%	2.7	%	3.63	x -	4.44	x	52.3	% -	63.1	%
IHS Cameroon S.A.	12.1	%	3.2	%	2.37	x -	2.89	x	57.8	% -	64.6	%
IHS Côte d’Ivoire S.A.	9.8	%	3.2	%	3.45	x -	4.46	x	53.8	% -	63.5	%
IHS Zambia Group	24.1	%	2.0	%	2.40	x -	3.30	x	65.2	% -	74.6	%
IHS Rwanda Group	15.5	%	3.2	%	2.04	x -	2.97	x	67.0	% -	73.3	%
IHS Kuwait Limited	6.0	%	2.9	%	1.00	x -	1.46	x	52.4	% -	64.9	%

2020
IHS Nigeria Limited	22.6	%	2.7	%	2.59	x -	4.55	x	67.8	% -	82.1	%
INT Towers Limited	22.5	%	2.7	%	2.87	x -	5.22	x	73.7	% -	79.9	%
IHS Towers NG Limited	23.2	%	2.7	%	2.80	x -	3.02	x	64.4	% -	69.9	%
IHS Cameroon S.A.	13.8	%	3.2	%	2.61	x -	3.16	x	55.9	% -	61.0	%
IHS Côte d’Ivoire S.A.	10.0	%	3.2	%	3.44	x -	4.56	x	57.5	% -	61.6	%
IHS Zambia Group	32.2	%	3.2	%	2.21	x -	2.93	x	68.4	% -	75.8	%
IHS Rwanda Group	17.0	%	3.2	%	2.13	x -	2.60	x	65.9	% -	69.8	%
IHS Kuwait Limited	5.0	%	2.8	%	1.00	x -	1.46	x	45.3	% -	59.2	%

2019
IHS Nigeria Limited	15.8	%	3.2	%	2.35	x -	3.90	x	69.8	% -	77.1	%
INT Towers Limited	16.5	%	3.2	%	2.46	x -	3.90	x	60.8	% -	71.9	%
IHS Towers NG Limited	16.2	%	3.2	%	3.29	x -	3.80	x	60.9	% -	65.4	%
IHS Cameroon S.A.	13.2	%	3.2	%	3.33	x -	4.22	x	53.8	% -	57.9	%
IHS Côte d’Ivoire S.A.	10.3	%	3.2	%	2.39	x -	3.49	x	56.1	% -	59.9	%
IHS Zambia Group	21.8	%	3.2	%	2.05	x -	2.58	x	62.6	% -	73.0	%
IHS Rwanda Group	16.3	%	3.2	%	2.05	x -	2.37	x	68.6	% -	70.0	%

* Tenancy ratios and gross margins (excluding depreciation & amortization) disclosed are for the forecast period 2022 – 2026. The tenancy ratios refer to the average number of tenants and lease amendments per tower that is owned or operated across a tower portfolio at a given point in time.

In 2021, the Group applied various terminal growth rates between 2.0% and 3.2%. The rates applied represent the median rate from three different sources and represent a conservative growth rate across the regions.

Management have considered and assessed reasonably possible changes for key assumptions and concluded that none would give rise to an impairment. The changes that would cause the carrying amount to exceed the recoverable amount resulting in an impairment are set out below:

Sensitivity analysis

IHS

IHS Nigeria

INT Towers

IHS Towers

Cameroon

IHS Côte

IHS Zambia

IHS Rwanda

IHS Kuwait

Limited

NG Limited

S.A.

d’Ivoire S.A.

Group

Limited

% Rise in discount rate

Increase by 36.2 pp

Increase by 83.7 pp

Increase by 11.0 pp

Increase by 4.0 pp

Increase by 6.8 pp

Increase by 10.5 pp

Increase by 7.2 pp

Increase by 4.6 pp

Decrease in tenancy ratio

Decrease by an average of 2.51x over 4 years

Decrease by an average of 3.06x over 4 years

Decrease by an average of 1.44 x over 4 years

Decrease by an average of 0.52 x over 4 years

Decrease by an average of 1.76 x over 4 years

Decrease by an average of 0.65 x over 4 years

Decrease by an average of 0.72 x over 4 years

Decrease by an average of 0.43 x over 4 years

Gross margin (excluding depreciation and amortization)

Decrease by an average of 49.3 pp over 4 years

Decrease by an average of 57.0 pp over 4 years

Decrease by an average 24.0 pp over 4 years

Decrease by an average of 16.7 pp over 4 years

Decrease by an average of 37.2 pp over 4 years

Decrease by an average of 19.2 pp over 4 years

Decrease by an average of 22.7 pp over 4 years

Decrease by an average of 34.1 pp over 4 years

Decrease in terminal growth rate

Decrease to less than 0

(b)Recoverable amount based on fair values less costs of disposal

The recoverable amounts of the IHS Latam tower business group of CGUs and I-Systems were based on fair value less costs of disposal.

Fair value less costs of disposal is determined on the basis of information observed or derived from recent comparable transactions, including in respect of the IHS Latam tower businesses, tower cash flow multiples.

The key assumptions to which the fair value less costs of disposal calculation for the Latam tower businesses is most sensitive are:

●

monthly tower cash flow for the Latam Group CGU determined on the basis of contractual revenues and gross margin percentage for existing towers at December 31, 2021;

●

tower cash flow multiples determined from analysis of information available relating to recent comparable transactions; and

●

estimated costs of disposal based on management’s experience of previously completed business combinations.

The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used.

Valuation technique	Significant unobservable inputs	Sensitivity of the input to fair value (movement in input value which would cause the carrying amount to exceed the recoverable amount resulting in an impairment)
Recent transactions, Tower cash flow market multiples	· Monthly tower cash flow: $2.6 million (2020: $1.6 million) · Multiple: 22.0x (2020: 22.0x) · Costs of disposal: 0.82% of enterprise value (2020: 1.2%)	· Decrease by $327,000 · Decrease by 2.63x · Increase by 11.95% of enterprise value

As can be seen from the analysis above, the valuation derived from the fair value calculation exceeds the carrying amount by a very small margin. Should market participant sentiment alter in future such that the market is viewed as less attractive, it is likely that the comparable transaction multiple would fall and that would result in an impairment.

I-Systems was purchased on November 16, 2021. The post-acquisition performance of the business (including key non-financial metrics such as homes passed and homes connected) is in line with management’s forecasts such that the purchase price paid for the business is considered to remain the best estimate of fair value at December 31, 2021.