Vodacom Group Limited · JSE:VOD
Vodacom — Investor Presentation (March 2022)
24 slides from Vodacom's investor presentation, March 2022
Slide 1: Vodacom Group Investment case
Vodacom Group Investment case Further together 1
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: Our investment case
Our investment case We are a market leader with attractive ROCE Scope to accelerate medium-term growth • Access to 130m customers, with • Data and smartphone penetration upside Vodafone Egypt transaction adding a further 43.0m 1 2 • Expanding addressable market in Fintech • InfraCo ongoing optimizat
Slide 4: Our markets: market leading position to >500 million people
Investment Our markets | Market leading position to >500 million people case attributes: 1 2 South Africa Tanzania Egypt Legend: Ownership 100% Ownership 75% Vodacom led markets Population1 60.8 million Population1 63.3 million Safaricom led markets Ethiopia M&A announced, not completed Customers (9
Slide 5: Our Purpose: Further together
Our Purpose | Further together Investment case attributes: 1 2 3 4 Purpose We connect for a better future Digital society Inclusion for all Planet • Affordable internet for all • Diversity (incl women) • Energy mix, water, waste • Digital solutions that transform lives • Education ecosystem (incl yo
Slide 6: Our Strategy: Leading African TechCo with clear System of Advantage
Our Strategy | Leading African TechCo with clear System of Advantage caseInvestment attributes: 1 2 3 4 Africa’s leading communications company 1 Footprint strengthened 2 Secure leadership in mobile and fixed • Launch and scale Ethiopia • Lead in mobile data – 4G, 5G. Accelerate smartphone penetrati
Slide 7: Strategy in action: accelerating our System of Advantage
Strategy in action | We are accelerating our System of Advantage caseInvestment attributes: 1 2 3 Strategic objective: Acceleration: Strategic outcomes: Footprint strengthened • Geographic & product diversification (Egypt, Ethiopia), SA Fibre Secure leadership M&A • Larger addressable market in fixe
Slide 8: Strategy in action: M&A enhancing our growth and returns profile
1 2 Strategy in action | M&A enhancing our growth and returns profile 3 4 caseInvestment attributes: Market leading position across all our markets Acquiring an a controlling stake in Vodafone Egypt R102.7bn R39.9bn Market leader, with attractive asset Vodacom Group revenue portfolio (e.g. towers, s
Slide 9: Product lens: diversifying into new revenue streams beyond mobile
Product lens | We are diversifying into new revenue streams beyond mobile 1 2 3 Investment case attributes: South Africa International Safaricom Product life cycle New services Financial services 14.4% 27.6% 42.4% Digital services R8.4bn R6.1bn R16.0bn Innovate IoT Fixed Integrate into SoA Core mobi
Slide 10: Financial services: our business model is high-growth and scalable
Financial services | Our business model is high-growth & scalable caseInvestment attributes: 2 4 Consumer proposition Lifestyle super-app Merchant proposition powered by Trusted platform & brand, Large footprint, low set up personalised offers, access to costs, personal targeting, affordable financi
Slide 11: Financial services: continuing to scale our fintech platform
Financial services | Continuing to scale our fintech platform Investment case attributes: 2 4 100% basis (including Safaricom) Proportionate basis (excl. minorities, incl associates)1 Strong 61 million underlying growth $324.6bn R11.2bn / $0.8bn R4.4bn / $0.3bn financial services customers in financ
Slide 12: ESG: Our ESG approach
ESG | Our ESG approach Investment case attributes: 4 1 Deliver on our three purpose pillars 2 Uphold our Digital society Inclusion for all Planet Social contract • Connecting people • Access to the benefits of • Reducing our Trust, fairness and and things a digital society for all environmental impa
Slide 13: Priorities: enhancing shareholder value as we shift from telco to techco
Priorities | Enhancing shareholder value as we shift from telco to techco Investment case attributes: 1 2 3 Execute on our Disciplined Accelerate Enhance System of Advantage capital structure & allocation and diversify returns societal value Inclusion for all Leadership in Utilise debt capacity Earn
Slide 14: Our share information
Our share information Total shareholding Share trading information As at 31 March 2022 JSE Ticker symbol VOD # of shares % holding ADR code VDMCY Vodafone Group PLC1 1 110 629 881 60.50 Stock exchange JSE Limited Government Employees Pension Fund 257 863 457 14.05 YeboYethu Investment Company (Pty)
Slide 15: Our journey: 28 years of connecting for a better future
Our journey 1. Vodacom Group has a proportionate stake of 34.94% in Safaricom. Customers are inclusive of 100% of Safaricom’s customer Vodacom is a leading and purpose-led African connectivity and financial services company. The Group, including Safaricom1, serves 129.9 million customers spanning ac
Slide 16: Our management team
Ourmanagement Our managementteam team Investment case attributes: 3 Vodacom Group Chief Executive Officer Shameel Joosub Group functions Operating companies Group Finance Group Technology Vodacom South Africa Raisibe Morathi Dejan Kastelic Sitho Mdlalose Group Financial and Group Human Resources Saf
Slide 17: Vodacom in numbers
Vodacom in numbers Further together 17
Slide 18: Country data
Country data South Africa Tanzania DRC Mozambique Lesotho Safaricom PopulationŦ (million) 60.8 63.3 95.2 33.1 2.2 56.2 GDP per capitaŦ (USD) 105 393η 1 237 542 511 1 316 1 912 GDP growth estimateŦ 2019 (%) 1.9 5.2 5.5 5.0 1.7 4.4 Ownership (%) 100 75 51 85 80 34.94¢ 2028/2032/ 2022/2024/ Licence exp
Slide 19: Annual results: key highlights and key numbers
Annual results | for the year ended 30 September Key highlights Key numbers Reported Normalised R million FY22 FY21 % change % change • Group revenue of R102.7 billion was up 4.5%, as strong Group normalised growth of 5.8%* was partially offset by rand appreciation Revenue 102 736 98 302 4.5 5.8 Ser
Slide 20: Five-year track record
Five-year track record | for years ending 31 March 21/20 5-year 2022 2021 20201 20192 2018 % change CAGR % Service revenue (R million) 79 936 77 574 73 354 69 867 70 632 3.0 3.1 Revenue (R million) 102 736 98 302 90 746 86 627 86 370 4.5 4.4 EBITDA (R million) 39 888 39 299 37 610 33 714 32 898 1.5
Slide 21: Dividend policy: payment history
Dividend policy | Payment history Ex-dividend date Payment date Dividend declared (cents per share) Dividend declared (Rm) Vodacom Group’s current Interim dividend number 1 30 November 2009 7 December 2009 110 1 637 dividend policy is to pay at least 90% Final dividend number 2 28 June 2010 5 July 2
Slide 22: More information and upcoming dates
More information Visit our website for more information http://www.vodacom.com upcoming dates Vodacom Group AGM 18 July 2022 1Q23 results 21 July 2022 Contact us VodacomIR@vodacom.co.za 1H23 results 14 November 2022 Follow us on social media @Vodacom Facebook.com/vodacom Further together 22
Slide 23: Definitions
Definitions Customers Data customers M-Pesa customers ARPU Data customers are based on the number of Customers are based on the total unique users generating billable data traffic number of mobile customers using during the month. Also included are users on any service during the last three integrat
Slide 24: Forward-looking statement
Forward-looking statement This presentation which sets out the interim results for Vodacom Group Limited for These factors include, but are not limited to, the following: changes in economic the year ended 31 March 2022 contains 'forward-looking statements‘, which have or political conditions in mar