Vodacom Group Limited · JSE:VOD
Vodacom — Vodacom Group Ltd Ord — FY2025 Earnings Presentation
39 slides from Vodacom's earnings presentation, May 19, 2025
Slide 1: Vodacom Group Annual results
Vodacom Group Annual results For the year ended 31 March 2025 Further together
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 | Connecting for a better future
Our purpose | Connecting for a better future Pillars Empowering Protecting the people planet Closing Empowering Supporting Net zero Circularity Biodiversity Themes digital divide customers communities • Code like a Girl • 10 million users • >2.5 million • Net zero GHG • 786 tonnes of • Protecting th
Slide 4: Vision 2025 | We have diversified our geographic profile
Vision 2025 | We have diversified our geographic profile From (FY20) To (FY25) Egypt Revenue Revenue A leader R91 billion R152 billion Ethiopia Across Operating profit split (%) Kenya DRC our footprint1 Tanzania 9% 13% 8% Mozambique Vodacom-led markets Safaricom-led markets 16% 55% Lesotho 28% South
Slide 5: Vision 2025 | We have also diversified our product mix
Vision 2025 | We have also diversified our product mix Group service revenue composition % Prepaid voice – managed decline (-0.1%*) Prepaid data – strong growth (+24.2%*) • Network leadership • 4G and 5G network expansion 18.2% • Bundled services and personalised offers (FY20: 30.6%) • Prepaid hands
Slide 6: Vision 2030 | Poised for accelerated growth and returns
Vision 2030 | Poised for accelerated growth and returns Why? Lead with • Create a differentiated brand and reputation by empowering people, Our key ambitions purpose protecting the planet and maintaining trust for our stakeholders Customer • Earn customer loyalty through delivery of meaningful value
Slide 7: Vision 2030 | Deepening financial inclusion to help economies grow
Vision 2030 | 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 society • Cas
Slide 8: Financial services | Scaling our dual-sided financial services ecosystem
Financial services | Scaling our dual-sided financial services ecosystem FY25 merchant highlights FY25 consumer highlights FY26 growth drivers Advanced financial services Merchants M-Pesa app users M-Pesa 1.2m 6.7m supporting M-Pesa contribution from new services (e.g. merchants, up 24% higher ARPU
Slide 9: Financial services | Africa's leading fintech platform
Financial services | Africa’s leading fintech platform 100% basis (incl. Safaricom) Financial services contribution Financial services Mobile money Financial services customers transaction value revenue Contribution 88 million up 11.1% $1.2 billion a day Driven by user and product adoption to Group
Slide 10: Group results snapshot | Strong growth in beyond mobile and Egypt
Group results snapshot | Strong growth in beyond mobile and Egypt Revenue Service revenue EBITDA Net profit R152.2 billion R120.7 billion R55.5 billion R19.9 billion Reported 1.1% -0.1% -1.1% 3.3% Growth Normalised* 10.9% 11.2% 7.8% 13.6% R20.3 billion Capital expenditure 211m 88m 857cps 620cps R20.
Slide 11: Group composition | Diversified portfolio combining growth and profitability
Group composition | Diversified portfolio combining growth and profitability Group customer mix Revenue Group operating profit Millions R billion R billion Growth Growth 21.7% / 11.2%* 35.81 1.3% / 10.9%* 35.31 44.9 54.6 2.7 3.3 22.9% / 29.4%* 46.0 150.61 152.21 1.1% / 10.9%* 8.8 10.3 16.9% / 65.4%*
Slide 12: Beyond mobile | Diversifying growth drivers in each segment
Beyond mobile | Diversifying growth drivers in each segment South Africa Egypt International Safaricom 17.8% 17.3% 32.4% 48.0% R11.2bn R4.8bn R9.9bn R25.1bn Beyond mobile Financial services Digital services IoT Fixed Beyond mobile services revenue as % of service revenue 82.2% 82.7% 67.6% 52.0% R51.
Slide 13: South Africa highlights | Cost control to mitigate topline pressure
South Africa highlights | Cost control to mitigate topline pressure Key indicator FY25 % change Key drivers Revenue (Rm) 90 738 2.8 Customer service revenue traction • Mobile contract revenue 3.8% Service revenue (Rm) 63 020 2.3 • Mobile prepaid revenue 3.5% • Prepaid data revenue 12.0% Beyond mobil
Slide 14: Egypt highlights | Strong real growth
Egypt highlights | Strong real growth FY25 EGP FY25 Rand Key indicator (EGPm) % change (Rm) % change Key drivers Revenue 82 881 49.7 30 751 (5.4) Service revenue 74 665 45.2 27 710 (8.2) Strong commercial traction • Data usage growth 28.0% Beyond mobile revenue 12 966 60.8 4 807 1.8 • Smartphone dev
Slide 15: International highlights | A challenging year but good prospects
International highlights | A challenging year but good prospects FY25 Rand Normalised* Key indicator (Rm) % change % change Key drivers Revenue 32 276 4.6 9.3 Strong data traction • Data traffic growth 29.6% Service revenue 30 632 2.6 7.1 • Smartphone growth 25.9% Beyond mobile revenue 9 919 4.6 9.8
Slide 16: Safaricom highlights | Kenya strong, Ethiopia momentum
Safaricom highlights | Kenya strong, Ethiopia momentum FY25 KES FY25 Rand Key indicator1 (KESm) % change (Rm) % change Key drivers Revenue 388 689 11.2 54 626 21.7 M-Pesa Service revenue 371 415 10.8 52 189 21.0 • Contribution increased to 43.4% of service revenue from 41.7% in PY Beyond mobile reve
Slide 17: Financial Review
6 Financial Review
Slide 18: Group snapshot | Strong second half, improved ROCE
Group snapshot | Strong second half, improved ROCE Growth Earnings Balance sheet Returns +1.1% -1.1% Revenue R152.2bn EBITDA R55.5bn FCF R18.2bn (10.9% normalised) (7.8% normalised) Net debt / EBITDA 0.9x Service -0.1% EBITDA Remained Dividend +5.1% revenue R120.7bn margin stable in SA per share 620
Slide 19: Group income statement | Reported results impacted by FX
Group income statement | Reported results impacted by FX Reported Normalised* R million FY25 FY24 % change % change Revenue 152 227 150 594 1.1 10.9 Service revenue 120 734 120 897 (0.1) 11.2 EBITDA 55 511 56 116 (1.1) 7.8 Depreciation and amortisation (21 934) (22 786) (3.7) Net profit from associa
Slide 20: Service revenue | Strong exit growth
Service revenue | Strong exit growth Group South Africa R billion / % R billion / % 0.0% -2.3% -1.4% 3.2% Reported growth 1.8% 0.7% 3.2% 3.4% 13.5% 11.6% 10.0% 9.7% 29.0 29.7 30.7 31.4 15.3 15.7 16.2 15.8 1Q25 2Q25 3Q25 4Q25 1Q25 2Q25 3Q25 4Q25 Service revenue Normalised growth* 1Q25 2Q25 3Q25 4Q25
Slide 21: Cash flow | Strong second half as expected
Cash flow | Strong second half as expected Group free cash flow R million Key movements -1.1% 1.4 - Working capital inflow supported cash generation - Operating free cash flow decreased 1.3% owing to lower EBITDA and higher lease liability payments - Strong free cash flow generation supported unchan
Slide 22: Net profit | Back to growth despite FX pressures
Net profit | Back to growth despite FX pressures FY25 net profit bridge Net profit R billion reconciliation, YoY -1.1% R million FY24 net profit 19 262 EBITDA (605) (1.5) D&A 852 (0.3) (0.5) #VALUE! +1.3% (21.9) 4.5 Associates excl. Ethiopia 902 (7.0) Ethiopia underlying 108 (8.9) +3.3% Ethiopia FX/
Slide 23: Business model resilience | Absorbed material macro shocks
Business model resilience | Absorbed material macro shocks Macro cycle has impacted EPS by 241cps Stable leverage supported by strong FCF generation Macro shock EPS impact Times (x) / R billions FY23 FY24 1H25 2H25 1.1 0.9 0.9 0.9 0.9 South Africa Finance costs prime lending rate (and remeasurement
Slide 24: HEPS | Significant improvement in second half
HEPS | Significant improvement in second half Headline earnings per share cents Earnings split by period Earnings bridge 1H 846 857 2H ( 25) 23.5% ( 30) 408 ( 26) 92 504 -19.4% 438 353 846 857 FY24 FY25 FY24 Moz DRC Ethiopia Rest of FY25 performance 1H one-offs FX/IAS 29 operations
Slide 25: Shareholder returns | Globally attractive and sustainable pay-out ratio
Shareholder returns | Globally attractive and sustainable pay-out ratio Total dividend declared Dividend aligned to policy R billion 12.2 12.9 5.9 7.0 Policy At least 75% of Group headline earnings 6.3 5.9 FY24 FY25 Interim dividend Final dividend Final dividend per share 335cps Total dividend per s
Slide 26: Capital structure | Comfortable leverage
Capital structure | Comfortable leverage Maturity profile Debt type Net debt / EBITDA R billion R billion R billion / times 78.1 78.1 73.1 73.1 52.4 64.0 57.5 57.9 59.2 20.2 0.9 0.9 13.9 14.1 15.6 FY24 FY25 FY24 FY25 Non-current Current Financial Leases Currency mix Debt mix % % Incl. leases Excl. l
Slide 27: Outlook | We have a clear ambition to grow beyond mobile services
Outlook | We have a clear ambition to grow beyond mobile services FY24 FY25 Vision 2030 20.0% 21.4% 30.0% Beyond mobile Of which: • Financial services 10.4% • Financial services 11.6% CAGR: 15-20% for • Digital services 2.0% • Digital services 1.9% beyond mobile: • IoT 1.5% • IoT 1.4% • Financial se
Slide 28: Targets | Capital allocation priorities
Targets | Capital allocation priorities Big data-led smart capex planning R Investment into organic growth Supported by stable capital intensity with an Commercial ambition of flat to improving ROCE optimisation Dividend pay-out of at least Network Network 75% of headline earnings R build optimisati
Slide 29: Targets | Medium-term targets
Targets | Medium-term targets Targets Considerations Group service revenue growth Improved inflation and FX outlook, R Double-digit however macro uncertainties remain Egypt is expected to be a key driver R Group EBITDA growth of Group EBITDA growth in FY26 Double-digit Expecting an improved performa
Slide 30: Wrap-up
Wrap-up
Slide 31: Vision 2030 | Targeting improved shareholder returns
Vodacom is Vision 2030 | Targeting improved shareholder returns structurally well positioned Strategic imperative Key ambitions for growth Customer • NPS leadership in all markets experience • 260 million customers Market leadership • Market leader in connectivity, smartphone penetration >75% Innova
Slide 32: Appendix
< . eo e8 Oo a 3° goBee ao a ao i @® < -:
Slide 33: Impact of exchange rates
Impact of exchange rates YoY% growth Revenue Average YTD exchange rates Reported Normalised* FY25 FY24 % changed South Africa 2.8 2.8 USD/ZAR 18.24 18.73 (2.6) Egypt (5.4) 49.7 EUR/ZAR 19.58 20.31 (3.6) International 4.6 9.3 ZAR/TZS 143.94 132.03 9.0 Group 1.1 10.9 ZAR/MZN 3.50 3.41 2.6 ZAR/KES 7.12
Slide 34: Group tax | ETR improves on prior year
Group tax | ETR improves on prior year, despite pressure in first half Group tax charge and effective tax Reconciliation of statutory tax rate to effective tax rate R million / % % FY25 statutory tax rate 27.0% Irrecoverable foreign taxes +3.0pp Non-deductible finance costs +3.2pp 31.5% 30.9% Other
Slide 35: Safaricom | Market guidance for FY2026 EBIT
Safaricom | Market guidance for FY2026 KES billions Kenya Ethiopia* Safaricom and excluding hyperinflationary impact (IAS 29) Group EBIT 170 – 173 (26) – (23) 144 – 150 FY25 actual 158.1 (61.1) 97.1 Capex 54 – 57 18 – 21 72 – 78 FY25 actual 52.1 39.2 91.3 *Ethiopia guidance assumptions • Mobile cust
Slide 36: Country data
Country data South Africa Egypt Tanzania DRC Mozambique Lesotho Safaricom Safaricom Kenya Ethiopia PopulationŦ (million) 61.0 114.4 69.4 105.6 34.9 2.4 56.2 129.7 GDP per capitaŦ (USD) 6 561 2 681 1 150 706 673 980 2 136 1 014 GDP growth estimateŦ (%) 0.6 3.8 5.5 5.7 1.9 0.8 4.5 6.9 Ownership (%) 10
Slide 37: More information
More information Visit our website for more information http://www.vodacom.com Upcoming Dates FY25 Integrated report 13 June 2025 AGM 22 July 2025 1Q26 results 23 July 2025 1H26 results 10 November 2025 Contact us Follow us on @Vodacom VodacomIR@vodacom.co.za social media Facebook.com/vodacom
Slide 38: Definitions
Definitions Customers Data customers M-Pesa customers ARPU Customers are based on the total number Data customers are based on the number of M-Pesa customers are based on the Total ARPU is calculated by dividing the of mobile customers using any service unique users generating billable data traffic
Slide 39: 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 statement anticipated competitive activity; higher than expected costs or capital expenditures; slower than expected cu