Vodacom annual results for the year ended 31 March 2018 Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be co mmunicated (‘relevant persons’). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the Group. Promotional material used in this presentation that is based on pricing or service offering may no longer be applicable. This presentation contains certain non- GAAP financial information which has not been reviewed or reported on by the Group’s auditors. The Group’s management believes these measures provide valuable additional information in understanding the performance of the Group or the Group’s businesses because they provide measures used by the Group to assess performance. However, this additional information presented is not uniformly defined by all companies, including those in the Group’s industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. Ad ditionally, although these measures are important in the management of the business, they should not be viewed in isolation or as replacements for or alternatives to, but rather as complementary to, the comparable GAAP measures. This presentation also contains forward-looking statements which are subject to risks and uncertainties because they relate to future events. These forward-looking statements include, without limitation, statements in relation to the Group’s projected financial results. Some of the factor s which may cause actual results to differ from these forward-looking statements are discussed on slide 48 of this presentation. Vodafone, the Vodafone logo, M-Pesa, Connected Farmer, Vodafone Supernet, Vodafone Mobile Broadband, Vodafone WebBox, Vodafone Passport, Vodafone live!, Power to You, Vodacom, Vodacom 4 Less and Vodacom Change the World are trademarks of Vodafone Group Plc (or have applications pending). Other product and company names mentioned herein may be the trademarks of their respective owners. Annual results | 31 March 2018 2 1
Operating review Highlights +10.5% +6.3% 26.8% +18.6% Customers Revenue EBIT margin Net profit R86.4 billion 73.8 million R23.1 billion R15.6 billion +13.4% R11.6bn 923 cps 815 cps Capital Data customers HEPS Total dividend expenditure per share 36.9 million 13.4% of revenue Annual results | 31 March 2018 4 2
Group performance | A diversified portfolio Group service revenue Group EBITDA Group customers +13.5%* +4.9% +12.1% +4.7% +8.6% 13.0% +7.4%* 20.7% +8.9%* 38.3% 12.8% 49.5% +10.0%* 12.1% 67.2% 74.2% 12.2% +5.1% South Africa South Africa South Africa International International International Safaricom 1 Safaricom Safaricom 1 1 1. Represents Safaricom’s annualised values in proportion to our stake 1. Represents Safaricom’s annualised values in proportion to our stake 1. Represents Safaricom’s customers in proportion to our stake * Normalised growth which presents performance on a comparable basis. This excludes merger and acquisition activity and adjusting for foreign currency fluctuation on a constant currency basis (using the current period as base). Annual results | 31 March 2018 5 South Africa | Higher contribution from data +8.1% Key indicators FY18 % change Revenue (Rm) 69 967 8.1 Revenue growth Service revenue (Rm) 54 622 4.9 +4.9% Data revenue (Rm) 23 355 12.8 Service revenue growth EBITDA (Rm) 28 088 4.7 EBIT (Rm) 21 124 2.6 +4.5 million Customers (‘000) 41 635 12.1 Customer net adds Active smart devices (‘000) 18 454 9.9 Annual results | 31 March 2018 6 3
International | Focus on data and M-Pesa + 7.4% * Key indicators FY18 % change Normalised* Revenue (Rm) 17 460 0.6 7.9 Service revenue growth Service revenue (Rm) 16 828 0.3 7.4 +2.5 million Data revenue (Rm) 2 429 12.0 18.7 Customer net adds M-Pesa revenue (Rm) 2 327 19.6 30.4 + 30.4% * EBITDA (Rm) 4 930 8.5 EBIT (Rm) 2 096 27.2 26.5 M-Pesa revenue growth M-Pesa customers 1 (‘000) 11 757 18.0 1. 30-day active customers * Normalised growth which presents performance on a comparable basis. This excludes merger and acquisition activity and adjusting for foreign currency fluctuation on a constant currency basis (using the current period as base). Annual results | 31 March 2018 7 Safaricom | Continued strong performance, double digit growth +10.0% Key indicators FY18 % change Revenue (KES’bn) 234 9.8 Service revenue growth Service revenue (KES’bn) 225 10.0 +1.4 million Data revenue ( KES’bn ) 36 24.0 Customer net adds M-Pesa revenue ( KES’bn ) 63 14.2 +14.2% EBITDA ( KES’bn ) 113 8.9 EBIT (KES’bn) 79 12.6 M-Pesa revenue growth M-Pesa customers 1 (‘000) 20 547 8.0 1. 30-day active customers Annual results | 31 March 2018 8 4
Growth drivers South Africa data | Device, pricing and network supporting demand Data progression Data vs voice revenue as a % of service revenue Million +12.1% FY17 FY18 +12.8% 40.6% 39.7% 44.6% 42.8% +4.1% +9.9% +44.8% 5.1 (4.6%) 37.1 41.6 19.5 20.3 16.8 18.5 7.3 Customers Data customers Active smart devices 4G customers Voice Data Voice Data FY17 FY18 Smartphone usage per category Data bundles sold Data bundle customers Million Thousand MB +54.7% +30.0% +21.4% +23.5% 300 243 495 766 10 299 12 504 1 670 2 171 FY17 FY18 FY17 FY18 Entry Iconic FY17 FY18 Annual results | 31 March 2018 10 5
International | Data gaining momentum Data customers Data contribution Thousand +18.7%* +8.6% R2.4bn +27.5% 14.4% +43.8% of International service revenue 29.7 32.2 13.0 16.6 5.6 8.1 Customers Data customers Active smartphone users FY17 FY18 Expanding data coverage Number of sites 609 • R2.7bn capital investment 348 • Data traffic up +65.2% 4 804 5 258 FY17 FY18 3G 4G * Normalised growth which presents performance on a comparable basis. This excludes merger and acquisition activity and adjusting for foreign currency fluctuation on a constant currency basis (using the current period as base). Annual results | 31 March 2018 11 M-Pesa | Adoption improving International M-Pesa customers 1 +30.4%* Thousand/% R2.3bn +18.0% 13.8% of International 36.5% 33.6% service revenue 25.2% 6 832 9 963 11 757 Africa’s biggest mobile FY16 FY17 FY18 money platform M-Pesa customers % of customers Safaricom • 32 million customers across Africa M-Pesa customers 1 +14.2%* Thousand/% • R25 billion transacted monthly in KES62.9bn International +8.0% (R7.9bn) 28.0% R85 billion transacted monthly in • 69.5% of Safaricom 67.6% Safaricom service revenue 19 022 20 547 FY17 FY18 M-Pesa customers % of customers 1. 30-day active customers * Normalised growth which presents performance on a comparable basis. This excludes merger and acquisition activity and adjusting for foreign currency fluctuation on a constant currency basis (using the current period as base). Annual results | 31 March 2018 12 6
Enterprise | Improving service revenue contribution SA Enterprise service SA Enterprise revenue SA fixed-line revenue per category revenue contribution R million R million +10.8% R14.0bn 25.7% 484 of service revenue +17.2% 290 12 673 14 043 FY17 FY18 538 of which SA fixed-line and BMS revenue +7.5% 674 R million • Customers +6.9% +48.5% +30.0% • Enterprise churn 5.6% 712 • Government contract FY18 migration progressing Connectivity IPVPN 1 817 2 698 Transit & carrier Cloud and hosting BMS and other FY17 FY18 Annual results | 31 March 2018 13 Strategy | Towards Vision 2020 – Digital first Our Purpose To connect everybody to live a better today and build a better tomorrow Our Strategies Vision 2020 Segmented Digital Our Brand and Best Customer Best Organisation Propositions Experience Technology Reputation and Culture Responding to customer’s Seamless Leading technology Innovation Agility Brand with a purpose Needs Frictionless Intelligent systems New skills Industry leader Wants Personalised Transform society Behaviours Digital Annual results | 31 March 2018 14 7
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