Slide 1: A Culture of Mobility
EXHIBIT 99.7 A CULTURE OF MOBILITY Vodacom Group (Proprietary) Limited for the year ended March 31, 2006 June 5, 2006 Content
Slide 2: Operational highlights and financial review
Alan Knott-Craig Chief Executive Officer Operational highlights Leon Crouse Chief Financial Officer Financial review Operational highlights Alan Knott-Craig Chief Executive Officer
Slide 3: Group highlights
Group highlights For the year ended March 31, 2006 vs. prior year Total customers Revenue Profit from operations 23.5 million R34.0 billion R8.9 billion 51.9% 24.6% 36.9% Profit from operations Net profit after tax Dividends margin 26.0% R5.1 billion R4.5 billion 2.3% pts 32.0% 32.4% High gross conn
Slide 4: Tariff reductions and consistent delivery on strategy
Vodacom South Africa tariff reductions (continued) Prepaid packages Vodago & Smartstep Happy hours 41.6% - 51.3% 4U Prepaid Peak On-net 8.0% Peak Off-net 16.9% Happy hours 54.2% Data packages From 03/04 to 04/05 up to ±90% reduction in data tariffs Currently in-bundle data ranging from R0.47 to R1.7
Slide 5: Customer registration (RICA) and Mobile TV
Vodacom South Africa customer registration Proposed requirement Obligation to register new and historic customers will become effective on June 30, 2006 in terms of the Regulation of Interception of Communications and Provision of Communication- related Information Act (“RICA”) Proposed RICA require
Slide 6: South Africa market share 58%
South Africa – market share 58% Population 46.9 million, penetration 70.6% % 2005 2006 change Total customers 12.8 million 19.2 million 49.3% Revenue R25,041 million R31,069 million 24.1% Profit from operations R6,618 million R8,602 million 30.0% ARPU R163 R139 14.7% Customers per employee 3,247 4,6
Slide 7: South Africa market outlook and churn
South Africa market estimated at 43 million by 2011 Vodacom strategically placed for South Africa market share continued market leadership Lowest cost operator Extensive distribution Market share defence Key market and focus Strong recognised brand Established management team Potential for further g
Slide 8: Lower South Africa ARPU; 3G and Vodafone live!
Lower South Africa ARPU Prepaid ARPU decreased South Africa ARPU per month 11.5% year on year to R69 Contract ARPU decreased 8.3% year on year to R572 Total ARPU decreased 14.7% year on year to R139 Lower incoming revenue per customer Lower average usage Customer mix 3G and Vodafone live! Over 32 th
Slide 9: Tanzania and DRC results
Vodafone live! users Over 351 thousand Vodafone live! users Over 12 thousand Mobile TV users Tanzania – market share 58% Population 39.2 million, penetration 9.2% % 2005 2006 change Total customers 1,201,000 2,091,000 74.1% Revenue R959 million R1,312 million 36.8% Profit from operations R183 millio
Slide 10: DRC, Lesotho and Mozambique results
ARPU R98 R86 12.2% Customers per employee 1,958 3,279 67.5% Capex per customer R1,705 R1,273 25.3% Capex as a % of revenue 31.2% 20.5% 10.7% pts Entrenched market position in a competitive market Upcoming elections Challenging political and fiscal environment Lesotho – market share 80% Population 2.
Slide 11: Financial review: Accounting changes
R103 million R 158 million 53.4% Loss from operations (R454 million) (R144 million) 68.3% ARPU R52 R36 30.8% Customers per employee 2,431 2,885 18.7% Capex per customer R2,625 R1,235 53.0% Capex as a % of revenue 109.7% 76.8% 32.9% pts Competitive network coverage and quality Significant growth in c
Slide 12: Group income statements
sheet operations R million Prior year adjustments (before taxation): IAS 17: Leases (retained earnings) 93.5 IAS 38: Intangible assets: cost (at March 31,2005) 2,123.3 : accumulated depreciation (1,419.8) Current year adjustments: (26.1) IAS 16: Property, plant and equipment (163.4) IAS 19: Long-ter
Slide 13: Group revenue by country and composition
By country % R million 2004 2005 2006 change South Africa 21,350 25,041 31,069 24.1% Tanzania 897 959 1,312 36.8% DRC 476 1,075 1,334 24.1% Lesotho 119 137 170 24.1% Mozambique 13 103 158 53.4% 22,855 27,315 34,043 24.6% Revenue driven by strong customer growth Other African operations contributed 8
Slide 14: Group revenue by type
Group revenue By revenue type Revenue analysis – 2005 Revenue analysis – 2006 R27,315 million R34,043 million Airtime contribution down 0.5% points; revenue up 24.1% to R20.1 billion Interconnect contribution down 2.0% points; revenue up 13.0% to R6.7 billion Data contribution up 1.1% points; revenu
Slide 15: Data revenue growth and EBITDA analysis
Data revenue growth 51.4% year on year By country 45.9% 120.0% year on year on year year South Africa data revenue up 51.4%, due to customer growth and new technologies (3G, HSDPA, Vodafone live!, BlackBerry®, Mobile TV) Tanzania data revenue up 45.9% due to customer growth and increased data spend
Slide 16: Group operating expenses
Group operating expenses By expense type Operating expense analysis – 2005 Operating expense analysis – 2006 R20,837 million R 25,177 million Direct network operating cost contribution up by 1.6% points; costs up 24.6% to R13.7 billion Payments to other operators contribution up 0.9% points; costs u
Slide 17: Group profit from operations
Group profit from operations By country % R million 2004 2005 2006 change South Africa 5,272 6,618 8,602 30.0% Tanzania 135 183 263 43.7% DRC 10 50 117 134.0% Lesotho 1 25 51 104.0% Mozambique (88) (454) (144) 68.3% Holding companies (105) 56 (23) n/a 5,225 6,478 8,866 36.9% Profit from operations m
Slide 18: Factors affecting trends and margins
40.1% growthincreased Profit margin in customers to 30% Mozambique (68.3% year on year smaller loss) 84.9% increase in customers Net impairment reversal of R53 million Factors affecting trends and margins 48.3% year on year Low margin equipment sales Equipment sales revenue 58.3% year on year increa
Slide 19: ARPU per month and productivity measures
Highly competitive markets South Africa ARPU per month Customer mix impact on total and contract ARPU South Africa total ARPU per month Total ARPU decreased by 14.7% from R163 to R139 per month year on year South Africa contract ARPU per month Contract ARPU decreased by 8.3% from R624 to R572 per mo
Slide 20: Cash generation and capex additions
Investment in new technologies Increased capacity Gross capex additions as a % of revenue Strong cash generation EBITDA increase of R2.2 billion Cash generated from operations Cash generated from operations increased 10.8% to R11.1 billion Increase in capex spend of R1.5 billion to R4.8 billion Phas
Slide 21: Net debt maturity profile and debt composition
Capex as a % of revenue at 15.1% vs. prior year of 12.8% South Africa capex gross additions increased 57.9% to R4.4 billion Other African capex additions increased 6.3% to R0.7 billion 3G / HSDPA spend of R903 million vs. prior year of R272 million Net debt maturity profile March 31, Total Total R m
Slide 22: Shareholder distributions
Net debt to equity ratio 8.2% (2005: 5.4%) Foreign denominated ring-fenced of R184 million and foreign denominated, not ring-fenced R1,492 million Adjusting for dividends and STC on dividends payable: net debt to equity ratio of 45.9% (2005: 32.0%) Shareholder distributions 32.4% Excluding interest
Slide 23: Questions? Group balance sheets
Questions? Group balance sheets Extracts at March 31, % R million 2004 2005 2006 change ASSETS Non-current assets 12,851 13,889 16,079 15.8% Current assets 7,323 8,706 8,689 (0.2%) Total assets 20,174 22,595 24,768 9.6% EQUITY AND LIABILITIES Capital and reserves 7,604 7,888 8,672 9.9% Non-current l
Slide 24: Group cash flow statements; Disclaimer
Group cash flow statements Extracts for the years ended March 31, % R million 2004 2005 2006 change Cash generated from operations 7,597 10,012 11,090 10.8% Net cash flows from operating activities 4,790 4,150 4,501 8.5% Net cash flows utilised in investing (3,000) (3,374) (4,791) (42.0%) activities