Slide 1: Vodacom Group (Proprietary) Limited – Driving the future of communication
EXHIBIT 99.7 Driving the future of communication Vodacom Group (Proprietary) Limited For the year ended March 31, 2005 June 6, 2005 Content Alan Knott-Craig Chief Executive Officer Operational highlights Leon Crouse Chief Financial Officer Financial review
Slide 2: Operational highlights
Operational highlights Alan Knott-Craig Chief Executive Officer Group highlights Total customers Revenue EBITDA 15.5 million R27.3 billion R9.6 billion 38.0% 19.5% 23.6% EBITDA margin Net profit Dividends
Slide 3: Vodacom South Africa tariffs; Consistent delivery on strategy
35.1% R3.9 billion R3.4 billion 1.1%pts 27.2% 61.9% Launch of South Africa’s first 3G network Signing of Vodafone strategic alliance Launch of BlackBerry® Vodacom South Africa tariffs Vodago prepaid on-net Vodago off-peak 4U on-net R2.55/min R1.40/min R3.25/min 10.5% 10.0% 9.7% Data SMS Average outg
Slide 4: Strategic matters; BEE – an economic imperative in South Africa
Vodafone live! Synergy between operations High speed mobile data Productivity up 22.7% to 2,987 New markets customers per employee Brand and distribution Strategy underpinned by: Market leadership Strong brand Strong distribution Strategic matters Deregulation and liberalisation Continued consolidat
Slide 5: South Africa – market share 56%
Enterprise development 25,224 community services phones, in excess of the 22,000 requirement Skills development SETA involvement Yebo bursary scheme Advanced executive development programme Vodacom Foundation ICT Charter engagement South Africa – market share 56% Population 47.4 million, penetration
Slide 6: Strong Vodacom South Africa operational indicators
Strong Vodacom South Africa operational indicators Vodacom South Africa gross connections Gross connections up 23.6% to a new high of 6.2 million Customers up 32.0% to 12.8 million Total traffic increased by 22.1% to 15.0 billion minutes Number of SMSs up 25.2% to 2.4 billion Vodacom South Africa cu
Slide 7: Improved South Africa churn and inactive customers
Improved South Africa churn and inactive customers Vodacom South Africa churn history Contract churn at all-time low of 9.1% Prepaid churn decreased to 30.3% Contract inactive customers at 1.5% Prepaid inactive customers at 9.0% Vodacom South Africa inactive history Lower South Africa prepaid ARPU a
Slide 8: Potential for further growth in South Africa; Tanzania – market share 59%
Potential for further growth in South Africa Vodacom South Africa market share Potential for further growth Continued data focus with Vodafone strategic alliance, 3G and Vodafone Live! South Africa market estimated at 31 million customers Vodacom is strategically placed for continued market leadersh
Slide 9: DRC – market share 47%; Lesotho – market share 80%
Democratic Republic of Congo (DRC) – market share 47% Population 58.3 million, penetration 3.5% % 2004 2005 change Total customers 670,000 1,032,000 54.0% Revenue R933 million R1,075 million 15.2% EBITDA R190 million R252 million 32.6% ARPU R150 R98 34.7% Customers per employee 2,006 1,958 2.4% Cape
Slide 10: Mozambique – market share 33%
Mozambique – market share 33% Population 17.5 million, penetration 4.2% % 2004 2005 change Total customers 58,000 265,000 356.9% Revenue R13 million R103 million 692.3% EBITDA (R71 million) (R111 million) 56.3% ARPU R110 R52 52.7% Customers per employee 1,349 2,431 80.2% Capex additions R478 million
Slide 11: Financial review: Group results
Financial review Leon Crouse Chief Financial Officer Group results % R million 2003 2004 2005 change Revenue 19,410 22,855 27,315 19.5 Operating expenses excluding depreciation, amortisation and impairment (12,707) (15,088) (17,718) 17.4 EBITDA 6,703 7,767 9,597 23.6 Depreciation, amortisation and i
Slide 12: Group revenue analysis
Revenue driven by strong customer growth Assuming 2004 average exchange rates remained constant, revenue would have Other African operations’ contribution 8.3% been higher by R220 million (2004: 6.5%) Note: Vodacom South Africa’s revenue in 2004 and 2003 has been restated as previously noted. Revenu
Slide 13: Group EBITDA analysis
South Africa data revenue up 32.1% Tanzania data revenue down 18.7% due to tariff reductions Group EBITDA analysis By country % R million 2003 2004 2005 change South Africa 6,423 7,536 9,002 19.5 Tanzania 333 278 345 24.1 DRC (49) 97 252 – Mozambique – (71) (111) – Lesotho 26 27 48 77.8 Holding comp
Slide 14: Group operating expenses
South Africa EBITDA Increased 19.5% to R9.0 billion EBITDA margin increased 0.6%pts to 35.9% Improved EBITDA from other African operations Contributed 5.6% (2004: 4.3%) at R534 million Excluding Mozambique, EBITDA increased EBITDA margin 60.4% to R645 million Group operating expenses By expense type
Slide 15: Operating expenses; Mozambique impairment
Operating expenses Acceptable growth in other direct network costs, despite High levels of connections First time full consolidation of DRC, Mozambique and Smart companies Growth in payments to other networks Depreciation, amortisation and impairment R268 million impairment in Mozambique Excluding t
Slide 16: Group profit from operations analysis
Group profit from operations analysis % R million 2003 2004 2005 change South Africa 4,295 5,282 6,625 25.4 Tanzania 178 135 183 35.6 DRC (117) 10 50 – Mozambique – (88) (454) – Lesotho 4 1 25 – Holding companies (33) (105) 56 – Vodacom Group 4,327 5,235 6,485 23.9 Profit from operations margin (%)
Slide 17: Factors affecting trends and margins
Factors affecting trends and margins Equipment sales Gross South Africa customer connections of 6.2 million 18.1% Prepaid customer connections of 5.6 million, 20.1% 16.5% an increase of 20.6% 20.3% Contract customer connections of 0.6 million, an increase of 61.8% Gross other African customer connec
Slide 18: Improved efficiencies; Strong cash generation
Improved efficiencies Customers per employee Consolidated customers per employee Increased 27.4% to 3,101 based on 4,993 Group employees Increased 22.7% to 2,986 (including 191 outsourced customer care employees) Consolidated gross capex as a % of revenue increased to 12.8% Gross capex as a % of rev
Slide 19: Capex additions and net debt maturity profile
R3.9 billion Capex additions and capex composition Capex additions R2,891 million – 2004 Capex additions R3,494 million – 2005 South Africa capex additions increased 67.9% to R2.8 billion Other African capex additions decreased 56.9% to R694 million Net debt maturity profile Total R million 2006 200
Slide 20: Debt composition; Shareholder distributions
Gross debt 4,416 2,833 Less: Bank and cash balances (3,990) (2,370) Net debt 426 463 Debt composition Gross debt composition Gross debt composition including bank overdrafts – 2004 including bank overdrafts – 2005 R2,833 million R4,416 million Positive cash balances R3,990 million (2004: R2,370 mill
Slide 21: Questions?
179.6% 16.6% 3.2% Questions? 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 (P
Slide 22: Disclaimer
warranty as to the accuracy of the information contained in this presentation and will not be held liable for any reliance placed on the information contained in this presentation. The information contained in this presentation is subject to change without notice and may be incomplete or condensed.
Slide 23: Group balance sheets and cash flow statements
% R million 2003 2004 2005 change ASSETS Non-current assets 12,024 12,865 13,904 8.1 Current assets 4,972 7,287 8,662 18.9 Total assets 16,996 20,152 22,566 12.0 EQUITY AND LIABILITIES Capital and reserves 6,910 7,665 7,954 3.8 Non-current liabilities 2,618 2,235 3,138 40.4 Current liabilities 7,468