Slide 1: Vodacom Group Annual Financial Results
VODACOM GROUP (PROPRIETARY) LIMITED ANNUAL FINANCIAL RESULTS ear ended March 31
Slide 2: Operational highlights
Operational highlights 4 Alan Knott-Craig a Chief Executive Officer
Slide 3: Group highlights
Ca Group highlights For the year ended March 31, 2007 vs. prior year Total customers (SIM cards) Revenue Profit from operations 30.2 million R41.1 billion R10.9 billion 28.2% BD | 202% Bp | 225% on EBITDA Net profit after tax Dividends R14.2 billion R6.6 billion R5.4 billion 20.5% > 27.6% ron 20.0%
Slide 4: South Africa
South Africa * Total customers * Churn % «Estimated mobile penetration % » Profit from operations
Slide 5: Tanzania
ma Tanzania * Total customers * Churn % Estimated mobile penetration % Amen * Profit from operations 31.6% oe
Slide 6: Democratic Republic of Congo (DRC)
Democratic Republic of Congo (DRC) penetration % WAU + Profit from operations 136.8%
Slide 7: Lesotho
Slide 8: Mozambique
Mozambique + Total customers cy 7 so ol
Slide 9: Pillars for continued growth
Pillars for continued growth SN Vodacom
Slide 10: Loyalty programmes
ar ae Loyalty programmes * Contract: Onyx/Platinum Credit card » Prepaid: Yebo Millionaires Vodacom Talking Points ) Milton, Talking Introducing Loyalty Awards for Vodacom a Prepaid Customers » VodaMail: Free e-mail service to contract customers * Bazza uau!: prepaid tariff rewarding customers for r
Slide 11: Innovative non-voice products and tariffs
a... Innovative non-voice products and tariffs » Over 33 thousand Mobile » Business customer needs: * Offer fast reliable and low ‘TV users ~ offering full service to priced king data ~ Enter broadcasting / nae customers Produ di; kel — ISP services j 899 multimedia market rons Vodafone live! users
Slide 12: Expansion of distribution and support channels
Expansion of distribution and support channels » Vodaworld cellular mall — biggest contract * Dedicated data stores connection i, IT support + Branded store points le eligi id + Vodacare stores ~ Dual service providers falnformal erence, | SAG TTL d Nealde toa » Strong relationships with the distrib
Slide 13: Brand leadership
a om Brand leadership ln ee activating my Blueteeth Bluetooth George, Bluetooth i FINALLY EVERYONE CAN S/\ vodashop “¥EBO!
Slide 14: Black Economic Empowerment (BEE)
Black Economic Empowerment (BEE) » Being aligned with the DTI Codes of Good Practice » Implementation of the ICT Sector Code projected for end of 2007 » Vodacom is developing a BEE transaction which will be completed towards the end of the year, enabling employees and BEE partners to share in the su
Slide 15: Regulation
ee es Regulation » New licence regime/ECA ~ Will bring new players into the market — Facilitates MVNO access to market - Vodacom will be converting its licences into an electronic communications network and an electronic communications service licence — Converting licences to new framework may be le
Slide 16: Acquisitions
a. Acquisitions
Slide 17: Way forward
ms Way forward Managed VPN_ Intemet { Managed voice Products Services solutions sopregation Managed Services Packaged ional Puoyntet Wireless access capacity Vodacom Converged Solutions
Slide 18: Way forward (continued)
Eee Way forward (continued)
Slide 19: Financial review
Financial review ; Leon Crouse j Chief Financial Officer
Slide 20: Group income statement
Group income statement Extracts for the year ended March 31, Wedacom [R million 2005 2006 2007) % change] Revenue 27,315 34,043 41,146 20.9% Operating expenses excluding depreciation, amortisation and impairment (17,725) (22,234) (26,919) (21.1%) EBITDA 9,590 11,809 14,227 20.5% Depreciation and amo
Slide 21: Group operational indicators
Group operational indicators * Gross connections up 31.5% year on year to a record high of 15.6 million * Customers up 28.2% year on year to 30.2 million + Total traffic in South Africa increased by 19.4% year on year to 20.4 billion minutes Closing customers 2005 2008 2007 }#SA M Non-South African
Slide 22: ARPU by country
eee ARPU by country * Declining ARPUs ARPU Pe month * SA decreased 10.1% to R125 199 is » DRC decreased 10.5% to R77 Py » Lesotho decreased 3.8% to R75 : . ver * Tanzania decreased 22.4% to R52 ° “7 + Mozambique decreased 22.2% to 1 FE emt B28 2005 2006 2007 * Vodacom Group consolidated esa DRC Leso
Slide 23: South Africa ARPU
ee South Africa ARPU * Contract ARPU decreased South Africa ARPU per month 9.6% year on year to R517 a » Prepaid ARPU decreased —__ 8.7% year on year to R63 * Total ARPU decreased Rand 10.1% year on year to R125 ° be 125 + Lower incoming revenue per customer e r + Lower average usage 78 69 63 + Cust
Slide 24: Group revenue by country
a Group revenue By country % R million 2005 2006 change South Africa, including holding companies 25,041 31,069 37,007 19.1% Tanzania 959 1,312 1,729 31.8% DRC 1,075 1,334 1,914 43.5% Lesotho 137 170 227 33.5% Mozambique 103 158 269 70.3% 27,315 34,043 41,146 20.9% oN Revenue driven by strong custom
Slide 25: Group revenue composition
a. Group revenue Revenue composition % R million 2005 2006 change Airtime, connection & access 16,191 20,085 23,708 18.0% Data 1,340 2,038 3,342 64.0% Interconnection 5,924 6,697 7,835 17.0% Equipment sales 2,687 3,986 4,699 17.9% International airtime 887 971 1,306 34.5% Other sales and services 28
Slide 26: Group revenue (excluding equipment sales)
a. Group revenue (excluding equipment sales) By revenue type Revenue analysis — 2006 Revenue analysis — 2007 30,057 million (excluding equipment sales) R36,447 million (excluding equipment sales) 3.2% 0.9% 3.6% 0.7% 2m 21.5% 6.8% 66.8% a 65. "Airtime, connection and access ™ Data m Interconnection '
Slide 27: EBITDA and margin analysis
EBITDA and margin analysis EBITDA performance — Increased 20.5% year on year to R14.2 billion — EBITDA margin decreased 0.1% points year on year to 34.6% — EBITDA margin 39.9%, when excluding cellular phone and equipment sales South Africa EBITDA — Increased 17.3% year on year to R13.0 billion — EBI
Slide 28: Group profit from operations
me Group profit from operations By country R million 2005 2006 change South Africa 6,618 8,602 10,293 19.7% Tanzania 183 263 346 31.6% DRC 50 17 277 136.8% Lesotho 25 51 75 47.1% Mozambique (454) (144) (177) (22.9%) Holding companies 56 (23) 46 >200% 6,478 8,866 10,860 22.5% Profit from operations m
Slide 29: Factors affecting trends and margins
a... Factors affecting trends and margins 19.4% year on year * South Africa traffic mix Total South Africa traffic yn — Outgoing traffic increased 20.1% year on 20,383 year to 13.6 billion minutes: saate 17,066 — Outgoing fixed increased by 2.6% to 1.2 billion — Outgoing mobile increased by 22.2% 12
Slide 30: Productivity measures
ee 0 Productivity measures * Consolidated customers per employee Increased 18.2% year on year to 5,093 based on 5,920 employees * Consolidated gross capex additions as a % of revenue increased to 16.4% from 15.1% for the same period in the previous financial year — Investment in new technologies — I
Slide 31: Capex additions and composition
a. Capex additions and composition Including software Capex gross additions ~ 2006 Capex gross additions - 2007 R65,138 million R6,748 million 2.4% 0.8% 3.1% oz 55% 75 14.2%, ae 73.9% ™ South Africa ™ Tanzania mDRC ™ Mozambique @ Lesotho and holding companies a South Africa capex gross additions inc
Slide 32: Cash generation
ee ei Cash generation » EBITDA increased by R2.4 billion Cash generated from operations » Cash generated from operations ba increased by 25.0% to R13.9 billion 10912 500 + Free cash flow increased i 13.8% to R3.7 billion « 2005 2006 2007 Free cash flow aaa 3,655 3211 Ramillion
Slide 33: Debt composition
ae Debt composition Gross debt composition Gross debt composition including bank overdrafts — 2006 including bank overdrafts— 2007 R3,855 million R3,435 million 56.5% 45.6% B.5% 54.4% = ZAR denominated ® Foreign denominated oN Net debt: R2,664 million (2006: R709 million) a Net debt to equity ratio
Slide 34: Group shareholder distributions
Group shareholder distributions s0.0% 32.4% ve year on year nos t R million 2005 2006 2007 @ Interim dividend ™ Final dividend BA the level of future dividend payments is dependent on the extent of investment activities
Slide 35: Questions?
Questions? 2 :
Slide 36: Group balance sheet
a Group balance sheet Extracts at March 31, % R million 2005 2006 change ASSETS Non-current assets 13,889 16,079 20,844 29.6% Current assets 8,706 8,689 7,626 (12.2%) Total assets 22,595 24,768 28,470 14.9% EQUITY AND LIABILITIES Capital and reserves 7,888 8,672 9,647 11.2% Non-current liabilities 3
Slide 37: Group cash flow statement
me. Group cash flow statement Extracts for the year ended March 31, % R million 2005 2006 change Cash generated from operations 10,012 11,090 13,866 25.0% Net cash flows from operating activities 4,150 4,501 4,858 7.9% Net cash flows utilised in investing entities (3,374) (4,791) (6,584) (37.4%) Net
Slide 38: Disclaimer
~ SS Disclaimer * This presentation has been prepared and published by Vodacom Group (Proprietary) Limited. + Vodacom Group (Proprietary) Limited is a private company and as such is not required by the Companies Act 61 of 1973, as amended, to publish its results. + Vodacom Group (Proprietary) Limite