Vodacom Group Limited · JSE:VOD
Vodacom — Vodacom Group Ltd Ord — Q2 2025 Earnings Presentation
37 slides from Vodacom's earnings presentation, Nov 11, 2024
Slide 1: Vodacom Group Interim results
Vodacom Group Interim results For the six months ended 30 September 2024 Further together C2 General
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 purpose refreshed | Connecting for a better future
Our purpose refreshed | Connecting for a better future Pillars Empowering Protecting the People Planet Themes Closing Empowering Supporting Net Zero Circularity Biodiversity digital divide customers communities Pursuing ubiquitous Delivering platforms for Enabling education Targeting net zero Circul
Slide 4: A leading Africa TechCo
A leading Africa TechCo Vision Ecosystem 2030 Egypt orchestrator #1 Ethiopia Kenya Across DRC Tanzania our footprint1 Mozambique Enhancing and evolving the System of Advantage Lesotho South Africa Vodacom-led markets Safaricom-led markets Strategic priorities Key shifts FY25-30 Group metrics (includ
Slide 5: Product diversification | Growth levers across a balanced portfolio
Product diversification | Growth levers across a balanced portfolio Service revenue composition % Prepaid voice – managed decline Prepaid data – strong growth • 4G & 5G network expansion • Network leadership 18.9% 28.2% • Prepaid handset financing & • Bundled services & personalised offers lower cos
Slide 6: 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 • Ca
Slide 7: Financial services | Scaling our dual-sided financial services ecosystem
Financial services | Scaling our dual-sided financial services ecosystem Merchant highlights Consumer highlights FY25 growth driver Merchants 30-day M-Pesa app users New services 1.2m 5.3m supporting 40% of M-Pesa International M-Pesa up 22% higher ARPU revenue is from new services (e.g. merchants,
Slide 8: Financial services | Africa's leading fintech platform
Financial services | Africa’s leading fintech platform 100% basis (including Safaricom) Financial services contribution Financial services Mobile money Financial services customers transaction value revenue 83 million $1.2 billion Driven by user and Contribution up 12.7% a day product adoption to Gr
Slide 9: Results snapshot | Strong growth in beyond mobile and Egypt
Results snapshot | Strong growth in beyond mobile and Egypt Revenue Service revenue EBITDA Capital expenditure R73.5 billion R58.6 billion R26.6 billion R8.8 billion Reported 1.0% -1.2% -2.7% 12.0% intensity Growth Normalised* 10.4% 9.9% 8.5% 206m 83m 353cps 285cps Customers1 Financial services cust
Slide 10: Group composition | Growth profile enhanced by Egypt
Group composition | Growth profile enhanced by Egypt Group customer mix Revenue Group operating profit % R billion R billion Growth Ethiopia devaluation: Growth R1.1 billion negative impact 21.8 26.6 21.9% / 15.1%* 17.01 16.11 -5.2% / 9.8%* 1.5 1.3 -17.2% / 5.6%* 49.2 72.81 73.51 1.0% / 10.4%* 4.2 1
Slide 11: Beyond mobile | Diversifying growth drivers in each segment
Beyond mobile | Diversifying growth drivers in each segment South Africa Egypt International Safaricom 17.7% 16.9% 30.4% 47.4% R5.5bn R2.2bn R4.8bn R12.1bn Beyond mobile Financial services Digital services IoT Fixed Beyond mobile services revenue as % of service revenue 82.3% 83.1% 69.6% 52.6% R25.6
Slide 12: South Africa highlights | Cost control to mitigate topline pressure
South Africa highlights | Cost control to mitigate topline pressure Key milestones Key indicator 1H25 % change Revenue (Rm) 44 309 2.4 Customer service revenue traction • Mobile contract revenue 3.6% Service revenue (Rm) 31 053 1.3 • Mobile prepaid revenue 2.2% • Prepaid data revenue 9.2% Beyond mob
Slide 13: Egypt highlights | Strong real growth
Egypt highlights | Strong real growth Key Key indicator 1H25 1H25 EGP milestones (Rm) (EGPm) % change Revenue 14 290 37 654 52.9 Strong commercial traction • Data usage growth 32.0% Service revenue 12 967 34 159 44.1 • Smartphone devices up 10.8% • Strong traction with Flex bundle Beyond mobile reve
Slide 14: International highlights | Impacted by one-offs
International highlights | Impacted by one-offs Key Reported Normalised* Key indicator 1H25 % change % change milestones Revenue (Rm) 15 384 1.5 6.4 Strong data growth • Data traffic growth 30.5% Service revenue (Rm) 14 917 1.3 6.2 • Smartphone growth 15.0% Beyond mobile revenue 4 769 3.8 9.6 (finan
Slide 15: Safaricom highlights | Kenya excellent, FX impacts Ethiopia
Safaricom highlights | Kenya excellent, FX impacts Ethiopia 1H25 KES 1H25 Rand Key indicator1 (KESm) % change (Rm) % change Key Revenue 189 422 15.1 26 568 21.9 milestones Service revenue 179 924 13.1 25 217 19.6 M-Pesa • Contribution increased to 42.6% of Beyond mobile revenue 77 258 16.6 12 067 34
Slide 16: Financial review
O Financial review
Slide 17: Group snapshot | Currency headwinds mask commercial momentum
Group snapshot | Currency headwinds mask commercial momentum Growth Earnings Balance sheet Returns +1.0% -2.7% Net debt / Revenue R73.5bn EBITDA 1.1x R26.6bn EBITDA (10.4% normalised) (8.5% normalised) Seasonal working OpFCF capital outflow Service -1.2% EBITDA Stabilised Attractive R14 billion reve
Slide 18: Group income statement | Reported results impacted by FX
Group income statement | Reported results impacted by FX 1H25 1H24 Reported Normalised* R million % change % change Revenue 73 538 72 798 1.0 10.4 Service revenue 58 637 59 350 -1.2 9.9 EBITDA 26 562 27 286 -2.7 8.5 Depreciation and amortisation (10 929) (11 174) -2.2 Net profit from associates and
Slide 19: Service revenue | Reported growth impacted by Egypt devaluation
Service revenue | Reported growth impacted by Egypt devaluation Group South Africa R billion / % R billion / % 29.7% 9.0% 0.0% -2.3% 8.8% 10.1% 10.0% 9.7% 1.9% 1.8% 0.7% 0.7% 31.1 30.4 29.0 29.7 15.7 15.3 15.3 15.7 3Q24 4Q24 1Q25 2Q25 3Q24 4Q24 1Q25 2Q25 Service revenue Reported growth Normalised Se
Slide 20: Cash flow | FCF impacted by seasonality
Cash flow | FCF impacted by seasonality Group free cash flow R million Working capital -2.7% - Outflow increased R1.3 billion to R9.0 billion. Negatively impacted by a catch-up and normalisation in the repayment of foreign payables in Egypt, following the currency devaluation in March 2024. The curr
Slide 21: Net profit | Impacted by FX losses and higher interest and tax
Net profit | Impacted by FX losses and higher interest and tax Net profit FY1H25 net profit bridge reconciliation, YoY R billion R million -2.7% FY1H24 9 968 EBITDA (724) D&A 245 (1.1) (10.9) (0.3) -5.2% 1.9 Associates excl. 600 (3.4) Ethiopia Ethiopia FX losses (1 126) (4.9) -21.1% Other 118 Net fi
Slide 22: Group tax | ETR impacted by one-offs, outlook materially better
Group tax | ETR impacted by one-offs, outlook materially better Group tax charge and effective tax Reconciliation of statutory tax rate to effective tax rate R million / % % 1H25 statutory tax rate 27.0% (Timing) Withholding taxes +4.3pp Non-deductible finance costs +3.1pp 38.4% (One-off) DRC prior
Slide 23: HEPS bridge | Positioned for a better second half
HEPS bridge | Positioned for a better second half Factors impacting growth Headline earnings per share (after tax and non-controlling interests) cents Egypt contribution: • Operational pressure (11) - All M&A related debt was refinanced in late in Mozambique FY1H25 to preference shares - Egypt contr
Slide 24: Business model resilience | Absorbed material macro shocks
Business model resilience | Absorbed material macro shocks Macro cycle has impacted EPS by 241cps Yet FCF and leverage remain resilient Macro shock EPS impact 1.1 1.1 0.9 0.9 0.9 FY23 FY24 1H25 South Africa Finance costs (and remeasurement prime lending rate 24cps 91cps 17cps increased from 7.0% in
Slide 25: Capital structure | Comfortable leverage
Capital structure | Comfortable leverage Maturity profile Debt type Net debt / EBITDA R billion R billion R billion / times 73.3 73.9 73.3 73.9 52.4 58.5 1.1 59.4 62.1 58.2 1.0 13.9 11.8 15.1 15.4 1H24 1H25 1H24 1H25 Non-current Current Financial Leases Currency mix Debt mix % % Incl. leases Excl. l
Slide 26: Shareholder returns | One of the JSE's highest pay-out ratios
Shareholder returns | One of the JSE’s highest pay-out ratios Total dividend declared Dividend aligned to policy R billion 12.2 Policy At least 75% 5.9 of Group headline earnings 6.3 5.9 FY24 FY25 Interim dividend Interim dividend Final dividend per share @ 86% payout 285cps Total dividend per share
Slide 27: Outlook | We have a clear ambition to grow beyond mobile services
Outlook | We have a clear ambition to grow beyond mobile services 1H24 1H25 Medium-term (3-5 years) 19.8% 21.1% 25% - 30% Beyond mobile Of which: • Financial services 10.4% • Financial services 11.4% • Digital services 2.0% • Digital services 1.9% CAGR: c.20% for beyond mobile: • IoT 1.5% • IoT 1.4%
Slide 28: Targets | Capital allocation priorities
Targets | Capital allocation priorities Big data-led smart capex planning Investment into organic growth Supported by stable capital intensity with an ambition Commercial of flat to improving ROCE optimisation Dividend pay-out of at least Network Network 75% of headline earnings build optimisation O
Slide 29: Targets | Medium-term targets reiterated
Targets | Medium-term targets reiterated Targets Considerations Group service revenue growth The macro-outlook remains uncertain, High single digit FX volatility and interest rate cycle remain risks Group EBITDA growth Egypt remains a key driver of Group EBITDA in FY25 High single digit Improved Int
Slide 30: Wrap-up
Wrap-up
Slide 31: Wrap-up | Positioned to accelerate growth
Wrap-up | Positioned to accelerate growth Structurally positioned Execute on our Accelerate Enhance for growth System of Advantage and diversify returns societal value Leadership in fixed and mobile Targets Empowering people Market Healthy markets with Accelerate device Medium-term: - Increase femal
Slide 32: Appendix
O Appendix
Slide 33: Impact of exchange rates
Impact of exchange rates YoY% growth Revenue Average YTD exchange rates Reported Normalised* 1H25 1H24 % changed South Africa 2.4 2.4 USD/ZAR 18.27 18.65 (2.0) Egypt (3.9) 52.9 EUR/ZAR 19.87 20.29 (2.1) International 1.5 6.4 ZAR/TZS 145.16 129.93 11.7 Group 1.0 10.4 ZAR/MZN 3.50 3.43 2.0 ZAR/KES 7.1
Slide 34: Country data
Country data South Africa Tanzania DRC Mozambique Lesotho Egypt Safaricom Safaricom Kenya Ethiopia PopulationŦ (million) 61.0 69.4 105.6 34.9 2.4 114.5 56.2 129.7 GDP per capitaŦ (USD) 6 518 1 139 663 651 1 070 2 491 2 155 897 GDP growth estimateŦ (%) 1.0 5.5 5.7 3.7 1.9 2.7 5.1 6.8 Ownership (%) 10
Slide 35: 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
Slide 36: Forward-looking statement
These factors include, but are not limited to, the following: changes in economic Forward-looking or political conditions in markets served by operations of the Group; greater than anticipated competitive activity; higher than expected costs or capital statement expenditures; slower than expected cu
Slide 37: More information
More information Visit our website for more information http://www.vodacom.com Upcoming dates 3Q25 results 3 February 2025 FY25 results 19 May 2025 AGM TBC 1Q26 results 23 July 2025 Contact us Follow us on @Vodacom VodacomIR@vodacom.co.za social media Facebook.com/vodacom
Vodacom Group Ltd Ord — Q2 2025 Earnings Presentation on 6ix