Slide 1: Vodacom Group Interim Results for six months ended September 30, 2006
A CULTURE OF MOBILITY VODACOM GROUP (PROPRIETARY) LIMITED GROUP INTERIM RESULTS for the six months ended September 30, 2006 November 13, 2006
Slide 2: Content
Content Alan Knott-Craig Chief Executive Officer Operational highlights Leon Crouse Chief Financial Officer Financial review
Slide 3: Operational highlights
Operational highlights Alan Knott-Craig Chief Executive Officer wane Rd vodacom
Slide 4: Group highlights
Group highlights For the six months ended September 30, 2006 vs. the same period in the previous financial year aS vodacom t = @r High gross connections: increase of 37.5% year on year to 7.3 million Total customers (SIM cards) Revenue Profit from operations 25.8 million R19.5 billion R5.0 billion 3
Slide 5: Acquisitions
vodacom Acquisitions + Increased interest in equity of Smartphone SP (Pty) Ltd and its subsidiaries from 51% to 70%, on August 30, 2006 » Effective September 13, 2006, Vodacom Service Provider (Pty) Ltd acquired the contract customer base of approximately 160 thousand from Smartcom (Pty) Ltd * An of
Slide 6: South Africa
aN Za dacom vo South Africa Customer market share 59%; revenue market share 54% Population 47.4 million, penetration 72.2% % H1 2006 change * Total customers 15.8 million 28.1% <p » Revenue R14,764 million R17,580 million 19.1% <p * Profit from operations R4,060 million 4,745 million 16.9% a> » ARPU
Slide 7: South Africa market
aX ay vodacom South Africa market estimated at 48 million by 2012 » Vodacom strategically placed for South Africa market share continued market leadership » Lowest cost operator » Extensive distribution * Strong brand ” * Strong focus on South African market iam ™ Vodacom = Total
Slide 8: South Africa operational indicators
aT eid vodacom South Africa operational indicators e Gross connections up South Africa gross connections 27.0% year on year to a record Sanat high of 5.3 million customers * Customers up 28.1% year on j year to 20.2 million * Total traffic increased by 20.9% year on year to 9.7 billion minutes Ht 20
Slide 9: South Africa ARPU
South Africa ARPU * Contract ARPU decreased 10.2% year on year to R528 * Prepaid ARPU decreased 14.1% year on year to R61 * Total ARPU decreased 15.6% year on year to R124 Lower incoming revenue per customer Lower average usage Customer mix 624 872 © 6. 88 —. nc 139 124 Pe ~ —8 78 & = 2005 2006 Ht 2
Slide 10: 3G, HSDPA and Vodafone live!
vodacom 3G, HSDPA and Vodafone live! * Over 52 thousand increase SC LESOPA customer bese in 3G / HSDPA customers to 101 thousand from March 2006 Sep05 Dec-05 Mar06 Jun-06 Sep-06 Vodafone live! users * Over 687 thousand Vodafone live! users 687.0 * Over 23 thousand Mobile TV users 3514 Thousand
Slide 11: Mobile TV
vodacom Mobile TV * Convergence of Broadcasting and Telecoms » Access to content very important * MobileTV technologies 3G MBMS DVB-H - Trial DVB-H, together with Multichoice
Slide 12: Regulatory and legal
aw aN. vodacom Regulatory and legal » Customer registration The final act will be ready during 2007. It is likely to depress growth * Mobile number portability This in itself will exhibit teething difficulties, and may result in a downward pressure on tariffs, albeit temporary » Interconnect rates T
Slide 13: Tanzania
\ ~ vodacom Tanzania Customer market share 55% Population 37.4 million, penetration 12.6% % H1 2006 change * Total customers 1.6 million 61.5% > » Revenue R611 million R775 million 26.8% <> * Profit from operations R115 million eat 16.5% <p » ARPU R73 27.4% BH + Customers per employee 4,330 am 24.2%
Slide 14: Democratic Republic of Congo (DRC)
Customer market share 49% Population 62.7 million, penetration 6.6% Democratic Republic of Congo (DRC) H1 2006 * Total customers » Revenue » Profit from operations » ARPU + Customers per employee » Capex per customer » Capex as a % of revenue @ Penetration increasing 2.7% points % change 1.2 million
Slide 15: Lesotho
Lesotho Customer market share 80% Population 2.0 million, penetration 14.7% %e @r Generating profits and increasing customers at a steady pace H1 2006 change * Total customers 171 thousand 39.2% ap » Revenue R77 million — R105 million 36.4% <p + Profit from operations R26 million {IRG4 milion, 30.8%
Slide 16: Mozambique
Mozambique Customer market share 33% Population 19.7 million, penetration 10.7% vodacom % H1 2006 change + Total customers 336 thousand 106.5% La » Revenue R74 million R108 million 45.9% > * Loss from operations (R25 million) (R138 milion) >200.0% a> » ARPU R41 R27 34.1% Hy + Customers per employee
Slide 17: Way forward
Way forward * Consolidate control and further improve level of customer care and quality of service in existing operations » Aggressively drive our presence in the data market to both increase revenues and to create greater overall customer loyalty » Expand our business into new, but related markets
Slide 18: Financial review
Financial review thy Leon Crouse S74 onsite vodacom
Slide 19: Group income statements
Group income statements Extracts for the six months ended September 30, R million H1 2005 H1 2006 change Revenue 13,231 16,175 19,466 20.3% Operating expenses excluding depreciation, amortisation and impairment (9,042) (10,612) (12,888) (21.4%) EBITDA 4,189 5,563 6,578 18.2% Depreciation and amortis
Slide 20: Group revenue by country
we vodacom Group revenue By country % R million H1 2005 H1 2006 change South Africa 12,057 14,764 19.1% Tanzania 472 611 26.8% DRC 594 649 898 38.4% Lesotho 65 77 105 36.4% Mozambique 43 74 108 45.9% 13,231 16,175 19,466 20.3% @ Revenue driven by strong customer growth @r Other African operations co
Slide 21: Group revenue composition
Group revenue Revenue composition R million H1 2005 Airtime, connection and access 7,823 Data revenue 586 Interconnection 2,940 Equipment sales 1,318 International airtime 436 Other sales and services 128 % H1 2006 change 18.1% 61.6% 16.9% 21.0% 14.4% n/a 13,231 20.3%
Slide 22: Group revenue by revenue type
vodacom Group revenue By revenue type Revenue analysis — H1 2006 Revenue analysis — H1 2007 R16,175 million R19,466 million 3.0% 0.8% 2.9% 0.6% Airtime, connection and access = Data revenue . = Equipment sales '@ International airtime "Other sales and services Qe Airtime contribution down 1.1% point
Slide 23: Group revenue excluding equipment sales
Latte a vodacom Group revenue (excluding equipment sales) By revenue type Revenue analysis — H1 2006 Revenue analysis — H1 2007 R14,265 million (excluding equipment sales) R17,154 million (excluding equipment sales) 34% 0.8% 3.2% 0.7% ® Airtime, connection and access '™ Data revenue ® Interconnectio
Slide 24: Data revenue growth
vodacom Data revenue growth By country year on Riillion H1 2005 H1 2006 1 2007 ™ South Africa ™ Tanzania | Other ge South Africa data revenue up 64.1%, due to availability of handsets and new technologies (3G, HSDPA, Vodafone live!, BlackBerry®, Mobile TV) @r Tanzania data revenue up 30.0% due to cu
Slide 25: EBITDA and margin analysis
EBITDA and margin analysis * EBITDA performance Increased 18.2% year on year to R6.6 billion EBITDA margin decreased 0.6% points year on year to 33.8% EBITDA margin 39.2%, down 0.5% points, when excluding cellular phone and equipment sales South Africa EBITDA Increased 15.2% year on year to R6.0 bil
Slide 26: Group operating expenses
Group operating expenses Up by 21.3% Operating expense analysis —-H1 2006 Operating expense analysis — H1 2007 R11,950 million R14,500 million 7.5% 18.4% ™ Direct network operating costs = Payments to other operators 2 and ‘= Staff = Other @ Direct network operating cost contribution up by 0.6% poin
Slide 27: Group operating expenses
aX 7 vodacom Group operating expenses * Operating expenses increased 21.3% year on year to R14.5 billion » Expenses, excluding depreciation, amortisation and impairment up 21.4% * Depreciation, amortisation and impairment Increased with 20.6% year on year to R1.6 billion (Impairment impact 8.6% poin
Slide 28: Group profit from operations by country
vodacom Group profit from operations By country % R million H12005 #12006 change South Africa 2,754 4,060 4,745 16.9% Tanzania 72 115 134 16.5% DRC t 47 133 183.0% Lesotho 9 26 34 30.8% Mozambique (341) (25) (138) (>200.0%) Holding companies 33 2 57 >200.0% 2,534 4,225 4,965 17.5% Profit from operat
Slide 29: Profit from operations and margin
vodacom Profit from operations and margin » Profit growth of 17.5% year on year to Profit from operations R5.0 billion * South Africa (16.9% year on year growth to biti R4,7 billion) Customer growth of 28.1% Profit margin decreased to 27.0% (H1 2006: 27.5%) Tanzania (16.5% year on year growth to R13
Slide 30: Low margin equipment sales
» Low margin equipment sales 22.2% year on year increase in equipment sale volumes to 2.2 million units South Africa net interconnect increased 5.0% year on year to R1.0 billion Margin dropped by 3.4% pts to 32.1% Gross South Africa customer connections of 5.3 million Prepaid customer connections of
Slide 31: Factors affecting trends and margins (continued)
Factors affecting trends and margins (continued) + South Africa traffic mix South Africa total tramic "yer" Outgoing traffic increased 22.7% year on year to 6.5 billion minutes Incoming traffic increased 17.5% year on year to 3.2 billion minutes Mobile to mobile traffic increased 26.6% to 7.9 billio
Slide 32: South Africa ARPU per month
vodacom South Africa ARPU per month Customer mix impact on total and contract ARPU * Total ARPU decreased by 15.6% year on year from R147 to R124 per month South Africa total ARPU per month ARPU # Impact of customer mix on ARPU tt Average revenue South Africa contract ARPU per month * Contract ARPU
Slide 33: Productivity measures
ar vodacom Productivity measures * Consolidated gross capex as a % of Gross capex additions as a % of revenue revenue increased to 16.1% from 154 hac 15.3% for the same period in the 126 128 previous financial year - Investment in new technologies Increased capacity Mozambique's capex as a % of reve
Slide 34: Cash
vodacom Cash * Cash generated from operations Cash generated from operations increased 10.8% to R5.5 billion tetosd ha year on year bere 2005 2006 Ht 2007 * Free cash flow decreased a a 19.9% to RO.8 billion: See Increase in capex spend of R0.4 billion 3,055 (18.1%) to R2.6 billion Increase in tax p
Slide 35: Capex additions and composition
vodacom Capex additions and composition Including software Capex gross additions — H1 2006 Capex gross additions —H1 2007 R2,475 million R3,142 million 0.5% 1.5% aay 87% 3% asx 10% 86.5% ™ South Africa @ Tanzania moDRC ™ Mozambique ™ Lesotho and holding companies Qh Capex as a % of revenue at 16.1%
Slide 36: Net debt maturity profile
vodacom Net debt maturity profile R million | 7 September 30, 2007 2008 2009 2010 2011 ~>2012 2005 South Africa — finance leases 95 134 168 114 164 98 773 836 Tanzania 163 118 - - - - 281 326 DRC 307 - 1,381 - - - 1,688 1,421 Lesotho - 1 1 1 - - 3 4 Debt excluding bank overdrafts 565 253 1,550 115 1
Slide 37: Debt composition
Debt composition Gross debt composition Gross debt composition including bank overdrafts —- H1 2006 including bank overdrafts — H1 2007 R6,018 million R3,873 million ™ Foreign d i ™ Rand d d gp Net debt to equity ratio excluding dividends and STC on dividends payable: 37.5% (H1 2006: 15.6%) <p Net d
Slide 38: Shareholder distributions
Le ar vodacom Shareholder distributions Excluding interest on shareholders’ loans R million 2004 2005 2006 H1 2007 minterimdividend = Final dividend nN The level of future dividend payments is dependent on the extent of investment activities ——————————_$__—
Slide 39: vodacom
= vodacom
Slide 40: Group balance sheets
vodacom Group balance sheets Extracts as at March % R million H1 2006 2006 change ASSETS Non-current assets 15,184 16,079 18,524 15.2% Current assets 10,173 8,689 8,062 (7.2%) Total assets 25,357 24,768 26,586 7.3% EQUITY AND LIABILITIES Equity 8,736 8,672 9,368 8.0% Non-current liabilities 2,140 2,
Slide 41: Group cash flow statements
Group cash flow statements Extracts for the six months ended September 30, % R million H1 2005 H1 2006 change Cash generated from operations 3,849 4,922 5,454 10.8% Net cash flows from operating activities 966 1,477 647 (56.2%) Net cash flows utilised in investing activitics (1,641) (2,231) (2,646)
Slide 42: Disclaimer
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 (Proprietary) Limited mak
Slide 43: www.vodacom.com
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