Slide 1: Annual results presentation 31 March 2012
Annual results presentation 31 March 2012
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: Highlights
Highlights 2 Annual results: Vodacom Group Limited 31 March 2012
Slide 4: Strong financial performance
Strong financial performance Group service revenue Group data revenue Group EBITDA 7.8% 27.1% 10.5% R58 245 million R8 179 million R22 763 million Group operating FCF HEPS Dividend per share 14.1% 8.1% 54.3% R16 934 million 709 cents per share 710 cents per share 3 Annual results: Vodacom Group Limi
Slide 5: Targeted activity underpins commercial success
Targeted activity underpins commercial success Group customers1 Thousand 29.9% Strong penetration of 47 835 * 30 968 36 819 ULCHs FY 2010 FY 2011 FY 2012 Reaching new under serviced areas Attractive and compelling growth in enterprise 30.0% converged services promotions 1. Refer to slide 36 for the
Slide 6: Investment sustains network leadership advantage
Investment sustains network leadership advantage Group capex R million/% 37.3% Over 1 000 new 3G 8 662 sites to a total of 5 735 6 636 6 311 24.5 Leading network downlink speed 16.1 Mbps 14.7 12.9 11.3 Vodacom 3.6 10.3 12.3 Competitor 1 2.9 9.1 9.6 Competitor 2 2.4 FY 2010 FY 2011 FY 2012 Competitor
Slide 7: Demand for data services remains high in South Africa
Demand for data services remains high in South Africa SA smartphones Thousand/% 55.4% 35.4% 4 788 5 071 yoy increase in active data customers 4 133 3 669 19.4 18.0 16.8 15.6 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Smartphone usage up Smartphones Smartphones as a % of active handsets from 38MB to 92MB 18.2%
Slide 8: International growth momentum continues
International growth momentum continues International customers1 Thousand/% 35.5% 13 939 18 894 Smarter 11 316 price offerings FY 2010 FY 2011 FY 2012 Tanzania active M-Pesa customers active data Thousand 2.9m customers 3 108 371 1 290 A third of Tanzania’s customers FY 2010 FY 2011 FY 2012 1. Refer
Slide 9: Strategic review
Strategic review 8 Annual results: Vodacom Group Limited 31 March 2012
Slide 10: Our strategy
Our strategy 9 Annual results: Vodacom Group Limited 31 March 2012
Slide 11: #1: Doing more to improve the customer experience
#1: Doing more to improve the customer experience Improved network South Africa net promoter score Rolling three month average at 31 March 2012 quality and coverage FY 2012 65 Vodacom FY 2011 59 Competitor 1 FY 2012 57 Improved FY 2011 54 service in all customer touchpoints FY 2012 46 Competitor 2 F
Slide 12: #2: More for our people
#2: More for our people Best Culture telco to work for in SA* change programme rollout continues Engagement Index Helpline empowers employees to help customers FY 2012 73 Entrenching new FY 2011 73 health and safety rules Source: Vodacom People Survey (Hays) * Corporate Research Foundation Institute
Slide 13: #3: The power of the internet into more people's hands
#3: The power of the internet into more people’s hands apps downloaded 1m in six months of launch Affordable handsets and tablets internet setup Free at home Group data customers Thousand 48.6% 15 107 13 826 12 356 10 947 Q1 2012 Q2 2012 Q3 2012 Q4 2012 12 Annual results: Vodacom Group Limited 31 Ma
Slide 14: #4: Operating more efficiently
#4: Operating more efficiently Improved opex1 to service revenue % Reduced 24.1 terminal logistic unit costs 23.7 22.8 22.0 More Group South Africa efficient network technologies FY 2011 FY 2012 Speed and simplicity score* down 12.0% “Green” site solutions innovation centre 1. Operating expenses exc
Slide 15: #5: Doing more with our stakeholders
#5: Doing more with our stakeholders 2nd Change the World programme launched Launched mobile education initiatives M-Pesa women empowerment initiative 14 Annual results: Vodacom Group Limited 31 March 2012
Slide 16: Financial review
Financial review 15 Annual results: Vodacom Group Limited 31 March 2012
Slide 17: Group income statement
Group income statement R million FY 2012 FY 2011 % change Service revenue 58 245 54 052 7.8 Revenue 66 929 61 197 9.4 EBITDA 22 763 20 594 10.5 Operating profit before impairment losses 16 816 15 204 10.6 Impairment losses (199) (1 508) (86.8) Operating profit after impairment losses 16 617 13 696 2
Slide 18: Strong growth in mobile voice and data usage
Strong growth in mobile voice and data usage Group service revenue growth by category R million 7.8% 513 58 245 1 740 57 732 230 1 944 330 54 382 (564) 54 052 FY 2011 Translation foreign FY 2011 Mobile Mobile voice 2 Mobile Mobile data 2 Other service FY 2012 service revenue exchange service revenue
Slide 19: Service revenue growth trends
Service revenue growth trends SA service revenue International service revenue R million/% R million/% 48 427 10 143 46 392 44 324 8 071 7 957 8.2 7.9 6.8 25.9 27.5 7.6 11.9 22.4 4.7 4.4 6.6 (1.4) FY 2010 FY 2011 FY 2012 FY 2010 FY 2011 FY 2012 Service revenue YoY growth excl. MTR impact Service rev
Slide 20: Group operating expenses well contained
Group operating expenses well contained Group operating expenses1 by category Group operating expenses1 by segment R million FY 2012 % change R million FY 2012 % change Direct expenses 30 265 9.7 South Africa 35 737 5.9 Staff expenses 4 318 7.3 International 8 970 22.1 Publicity expenses 1 804 (13.5
Slide 21: Group EBITDA increased 10.5%
Group EBITDA increased 10.5% Group EBITDA R million (53) 10.5% 607 22 763 22 763 2 180 22 209 (27) (146) 20 594 20 567 (392) 20 029 FY 2011 Trading and FY 2011 Trading foreign South Africa South Africa International Corporate and FY 2012 EBITDA translation foreign EBITDA1 exchange MTR impact EBITDA
Slide 22: Positive EBITDA margin trends
Positive EBITDA margin trends SA EBITDA International EBITDA R million/% R million/% 8.1% 73.9% 21 254 1 461 19 653 18 578 1 176 37.6 840 23.6 36.8 36.8 37.3 16.0 36.8 18.1 36.4 14.0 14.0 10.2 FY 2010 FY 2011 FY 2012 FY 2010 FY 2011 FY 2012 EBITDA EBITDA EBITDA margin EBITDA margin EBITDA margin exc
Slide 23: Group finance charges reduced
Group finance charges reduced Group net finance charges Group net debt R million FY 2012 FY 2011 R million FY 2012 FY 2011 Net finance costs (639) (755) Bank and cash balances 3 781 870 Remeasurement of loans (51) 28 Bank overdrafts (409) (331) Net loss on translation of foreign- Borrowings and deri
Slide 24: Taxation impacted by higher dividend
Taxation impacted by higher dividend Group tax reconciliation • Secondary tax on companies (‘STC’) charge based on 10% dividends declared in May and R million FY 2012 Rate (%) November 2011. Normal tax 4 461 28.0 • DRC currency translations and tax base revaluation Non-deductible interest 91 0.6 rel
Slide 25: Headline earnings per share increased 8.1%
Headline earnings per share increased 8.1% FY 2011 headline earnings per share FY 2012 headline earnings per share Cents per share Cents per share HEPS 656 8.1% HEPS 709 Impairment losses Impairment losses and other (95) and other (15) EPS 561 23.7% EPS 694 24 Annual results: Vodacom Group Limited 3
Slide 26: Group statement of financial position
Group statement of financial position R million FY 2012 FY 2011 Movement Assets Property, plant and equipment 24 367 21 577 2 790 Intangible assets 5 123 5 215 (92) Other non-current assets 1 188 1 190 (2) Current assets 17 552 13 453 4 099 Total assets 48 230 41 435 6 795 Equity and liabilities Tot
Slide 27: Movement in Group PPE and intangible assets
Movement in Group PPE and intangible assets Property, plant and equipment Intangible assets R million R million 7 230 (4 777) 915 (1 105) 562 (225) 24 367 72 5 215 (250) 276 5 123 21 577 FY 2011 Net Depreciation Foreign Other FY 2012 FY 2011 Net Amortisation Foreign Impairment Other FY 2012 net book
Slide 28: Strong growth in free cash flow
Strong growth in free cash flow Group free cash flow generation R million 14.6% 10.5% 1 739 24 502 (7 568) 22 763 14.1% (771) 16 934 (5 192) 24.3% 10 971 FY 2012 Working Cash Net cash additions Operating Net finance Tax paid FY 2012 EBITDA capital generated from to PPE and free cash costs paid free
Slide 29: Enhancing shareholder returns
Enhancing shareholder returns Dividend per share Total shareholder returns Cents per share % return for the year ended 31 March 2012 710 450 51.0 460 45.0 FY 2012 285 280 28.8 175 260 17.9 4.3 15.4 5.4 180 110 FY 2010 FY 2011 FY 2012 Interim dividend Final dividend (35.1) FY 2012 Vodacom MTN Top 40*
Slide 30: Wrap-up
Wrap-up 29 Annual results: Vodacom Group Limited 31 March 2012
Slide 31: Group medium-term targets reconfirmed
Group medium-term targets reconfirmed EBITDA Market position Maintain market position in all geographies EBITDA Improve EBITDA margin through operational efficiencies Capital expenditure Service revenue Low single digit growth in service revenue Capital expenditure Capital expenditure between 11% an
Slide 32: Our strategies delivering consistent results
Our strategies delivering consistent results Targeted activity Investment sustains Strong financial underpins commercial network leadership performance success advantage Demand for data International growth Enhancing shareholder services remains high momentum continues returns in South Africa 31 Ann
Slide 33: Thank you
Thank you 32 Annual results: Vodacom Group Limited 31 March 2012
Slide 34: Country data
Country data South Africa Tanzania DRC Mozambique Lesotho Population (million) 51 48 72 25 2 GDP per capita* (USD) 8 200 629 291 627 1 080 GDP growth estimate* 2012 (%) 2.3 6.9 6.3 8.0 5.2 Estimated mobile penetration (%) 132 49 21 32 57 Ownership (%) 93.75 65 51 85 80 License expiry period 2029 203
Slide 35: Impact of foreign exchange
Impact of foreign exchange Revenue Operating expenses % % FY 2012 Reported Normalised FY 2012 Reported Normalised South Africa 6.7 6.7 South Africa 5.9 5.3 International 27.2 22.1 International 22.1 16.8 Group 9.4 8.8 Group 8.8 7.5 EBITDA Average exchange rates % FY 2012 Reported Normalised FY 2012
Slide 36: Impact of mobile termination rates in South Africa
Impact of mobile termination rates in South Africa Interconnect • MTR rates changed from 1 March 2012 – Peak dropped from R0.73 to R0.56 R million FY 2012 FY 2011 % change • MTR impact for the year Interconnect revenue 6 062 6 755 (10.3) – R1 142 million in revenue % service revenue 12.5 14.6 – R392
Slide 37: Definitions
Definitions Active data customers Number of unique customers who have generated revenue related to any data activities in relation to mobile data revenue (this excludes SMS and MMS messaging users) in the reported month. A user is defined as being active if they are paying for a contractual monthly
Slide 38: Forward-looking statements
Forward-looking statements This presentation which sets out the annual results for Vodacom Group Limited for the year ended 31 March 2012 contains 'forward-looking statements‘, which have not been reviewed or reported on by the Group’s auditors, with respect to the Group’s financial condition, resul
Slide 39: www.vodacom.com investorrelations@vodacom.co.za
www.vodacom.com investorrelations@vodacom.co.za +27 11 653 5055 facebook.com/vodacom @vodacom Annual results for the year ended 31 March 2012 38 Annual results: Vodacom Group Limited 31 March 2012