Vodacom Group Limited · JSE:VOD
Vodacom — Investor Day (February 2025)
34 slides from Vodacom's investor day presentation, Feb 19, 2025
Slide 1: Vodacom Group Investor day
Vodacom Group Investor day 19 February 2025
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated (‘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 f
Slide 3: Forward-looking statement
Forward-looking statement This presentation contains 'forward-looking statements‘, which have not been reviewed or reported on by the Group’s auditors, with respect to the Group’s financial condition, results of operations and businesses and certain of the Group’s plans and objectives. In particular
Slide 4: Introducing Vision 2030
Vodacom Group Introducing Vision 2030 Shameel Joosub & Raisibe Morathi 19 February 2025 Further together
Slide 5: Four areas to cover
Four areas to cover 1 How we think about value creation 2 Vision 2025: Finishing strong 3 Assessing our risks and opportunities 4 Vision 2030: Evolving the System of Advantage
Slide 6: Our journey | A remarkable 30 years, well positioned for the next 30
Our journey | A remarkable 30 years, well positioned for the next 30 Looking back with pride with a well-balanced growth portfolio we look forward with excitement Enabled digital and financial inclusion Geographic diversification Elevate alignment • Invented the prepaid wallet of Purpose to Customer
Slide 7: How we think about value creation
How we think about value creation Informs Influences Our key ambitions for our shareholders Decision making that supports sustainable Our Operating context Purpose Our double-digit EBITDA growth To connect for a better future (normalised basis* FY25-FY30 CAGR) Shapes Drives Hard currency earnings gr
Slide 8: Why invest in Vodacom | Capturing Africa's growth potential
Why invest in Vodacom | Capturing Africa’s growth potential 1 2 Structural growth opportunities A market leader supporting attractive ROCE • ROCE of 23.1% above WACC • Opportunity for sharing infrastructure and operating Population growth to FY30 Demographics model efficiencies to increase margins &
Slide 9: Our purpose | Connecting for a better future
Our purpose | Connecting for a better future Pillars Empowering Protecting the people planet Themes Closing digital divide Empowering customers Supporting communities Net zero Circularity Biodiversity • Code like a Girl • >5 000 lives saved • 3m beneficiaries of • Net zero GHG emissions • >R1 billio
Slide 10: Four areas to cover
Four areas to cover 1 How we think about value creation 2 Vision 2025: Finishing strong 3 Assessing our risks and opportunities 4 Vision 2030: Evolving the System of Advantage
Slide 11: Our existing strategy | We executed on Vision 2025 through our System of Advantage
Our existing strategy | We executed on Vision 2025 through our System of Advantage Africa’s leading communications company Key performance indicators 1 2 Healthy markets, Secure leadership Strong execution footprint strengthened in mobile and fixed • High single-digit service revenue growth • Market
Slide 12: Our Strategy | We have diversified our growth & returns profile
Our Strategy | We have diversified our growth & returns profile From (FY20) To (FY25)3 Egypt Revenue R151 billion R91 billion A leader Ethiopia (annualised FY9M25) Kenya Operating profit split (%) Across DRC Tanzania our footprint 1 Mozambique 13% 6% 7% Lesotho South 16% Africa 28% 59% Vodacom-led m
Slide 13: Four areas to cover
Four areas to cover 1 How we think about value creation 2 Vision 2025: Finishing strong 3 Addressing our risks and opportunities 4 Vision 2030: Evolving the System of Advantage
Slide 14: Our operating context | Mindful of our risks
Our operating context | Mindful of our risks External risks Our response • Lean and localised costs e.g. in Egypt >90% of opex in Macroeconomic local currency • FX risks with currency liquidity & devaluations • De-risked balance sheet - 88% of financial debt is ZAR • High interest & inflation rates
Slide 15: Our operating context | Absorbed material macro shocks
Our operating context | Absorbed material macro shocks Macro cycle has impacted EPS by 241cps Considerations in FY2H25 Macro shock EPS impact Tailwinds FY23 FY24 1H25 South Africa • FX - Lap 56cps loss associated with Finance costs Egypt devaluation in March 2024 (and remeasurement prime lending rat
Slide 16: Our operating context | Macro outlook to improve
Our operating context | Macro outlook to improve Consumer price inflation Real GDP growth 38.0 2.4 Egypt Egypt 9.2 4.5 37.7 6.8 Ethiopia Ethiopia 12.6 7.2 23.8 6.2 DRC DRC 6.4 5.7 12.1 3.7 Moz Moz 4.4 8.0 9.8 0.9 Lesotho Lesotho 5.0 2.3 9.6 4.5 Kenya Kenya 5.4 5.5 7.8 SA SA 0.8 4.3 1.9 4.9 TZ TZ 5.6
Slide 17: Our operating context | Top of mind CFO themes
Our operating context | Top of mind CFO themes Investor • Balancing investment and returns, through a disciplined capital Key FY2030 deliverable feedback allocation framework • Consistent and sustainable growth in South Africa • Scaling Ethiopia to deliver on business case • Accelerating beyond mobi
Slide 18: Our operating context | Significant opportunities exist
Our operating context | Significant opportunities exist Digital inclusion Financial inclusion • Ubiquitous connectivity, with Africa expected to have • More than half (52%1) of Africa’s population are unbanked 14 Mega Cities by 2050 • Lower middle-income population in Africa • Smartphone penetration
Slide 19: Our operating context | Our growth formula
Our operating context | Our growth formula Group EBITDA ambition Earnings levers Our existing target: Our ambition: Our ambition: High single-digit* Double-digit* Hard currency earnings growth (FY24-FY27) (FY25-FY30) Reconciling to our Group ambition Lean & localised costs Financial services PBT mar
Slide 20: Four areas to cover
Four areas to cover 1 How we think about value creation 2 Vision 2025: Finishing strong 3 Risks and opportunities 4 Vision 2030: Evolving the System of Advantage
Slide 21: Vision 2030 | An ecosystem approach
Vision 2030 | An ecosystem approach Connectivity Beyond connectivity Critical success factors Financial Mobile coverage services Strong partnerships and with shared with mini-apps integration capabilities across the infrastructure and merchant Vodafone Group network Ext se en Connectivity (mobile an
Slide 22: Vision 2030 | The System of Advantage remains, but evolves
Vision 2030 | The System of Advantage remains, but evolves Our strategic imperatives Elevate alignment Drive market Invest in strategic Innovate for growth of Purpose to Customer leadership, healthy enablers for growth beyond connectivity Experience and Brand operations and markets and efficiency 1
Slide 23: Vodacom Group 2030 | Elevate alignment of purpose to customer experience and brand
Vodacom Group 2030 | The evolution of the System of Advantage Elevate alignment of purpose to customer experience and brand Strategic priority Key ambitions: FY25-FY30 1 Embed purpose and social contract into our reputation and Lead with brand #1 Reputation in each market purpose in all Close th
Slide 24: Vodacom Group 2030 | Drive market leadership, healthy operations and markets
Vodacom Group 2030 | The evolution of the System of Advantage Drive market leadership, healthy operations and markets Strategic priority Key ambitions: FY25-FY30 3 Engage with governments to ensure regulatory certainty (incl. price stability and regulation) Build healthy markets and Leverage syn
Slide 25: Strategic priority 3 | Leverage synergies and scale for efficiency
Strategic priority 3 | Leverage synergies and scale for efficiency Reducing the cost to build & operate Case studies Low-cost site deployment in RAN, batteries, aircons, low-cost site design Technology standardisation Mozambique • Rural site build cost down 25% before latest vendor negotiations • 45
Slide 26: Vodacom Group 2030 | Drive market leadership, healthy operations and markets
Vodacom Group 2030 | The evolution of the System of Advantage Drive market leadership, healthy operations and markets Strategic priority Key ambitions: FY25-FY30 3 Engage with governments to ensure regulatory certainty (incl. price stability and regulation) Build healthy markets and Leverage syn
Slide 27: Strategic priority 4 | Attain broadband leadership
Strategic priority 4 | Attain broadband leadership Market sizing Fixed broadband technologies By 2050, Africa will add an additional ~800 million people to global workforce and be home to the largest and youngest population globally… Fibre to the home/business (FTTH/B) Size of the working age popula
Slide 28: Vodacom Group 2030 | Innovate for growth beyond connectivity
Vodacom Group 2030 | The evolution of the System of Advantage Innovate for growth beyond connectivity Strategic priority Key ambitions: FY25-FY30 5 Grow enterprise differentiated offerings for corporates Become the and SMEs integrated Contribution of beyond mobile solution Drive beyond mobile ag
Slide 29: Financial services | Deepening financial inclusion to help economies grow
Financial services | Deepening financial inclusion to help economies grow Powered by our super-apps Drive financial inclusion Deepen financial inclusion Unlocking economic growth Outcomes Basic services Consumer financial services Consumer wealth + Positively influence our operating context and soci
Slide 30: Vodacom Group 2030 | Invest in strategic enablers for growth
Vodacom Group 2030 | The evolution of the System of Advantage Invest in strategic enablers for growth Strategic priority Key ambitions: FY25-FY30 7 Lead in modernised and "high-fiberised" Drive network technology technology Build fit for purpose, modernised IT with scaled leadership in Network,
Slide 31: Our Strategy | What success looks like
Our Strategy | What success looks like From (FY25) To (FY30) Revenue of To Egypt R151 billion >R200 billion A leader Ethiopia Kenya Operating profit split (%) Across DRC Tanzania our footprint1 Mozambique 6% 7% Lesotho Further diversification, with South Africa 28% 59% South Africa =<50% 650 million
Slide 32: Wrap-up | A tear sheet to track our progress
Vodacom is Wrap-up | A tear sheet to track our progress structurally Clear priorities Strategic direction Key ambitions How are we tracking? well positioned for growth • Maintain our social licence to operate • Net zero GHG operations Elevate alignment of purpose to customer • #1 Reputation (Reptrac
Slide 33: Thank you
Thank you
Slide 34: Definitions
Definitions Customers Customers Data customers Data customers M-Pesa customers M-Pesa customers ARPU ARPU Customers are based on the total number of Data customers are based on the number of M-Pesa customers are based on the number Total ARPU is calculated by dividing the sum mobile customers using