Vodacom Group Limited · JSE:VOD
Vodacom — Investor Presentation (March 2009)
32 slides from Vodacom's investor presentation, Mar 5, 2009
Slide 1: Vodacom Group (Pty) Ltd Analyst Presentation
Vodacom Group (Pty) Ltd A l tP Analyst Presentation t ti 5 March 2009
Slide 2: Disclaimer
Disclaimer This presentation has been prepared and issued by Vodacom Group (Proprietary) Limited (“Vodacom” or the “Company”) solely for your information and for use at the presentation to research analysts to be made on or about 5 March 2009 in connection with the proposed listing (the “Listing”) o
Slide 3: Agenda
Agenda Pieter Uys Johan van der Watt Shameel Joosub Willem Swart Peter Gbedemah CEO CFO (Acting) MD: South Africa CO: International MD: Gateway Agenda Wally Beelders Mike van den Bergh ED: Vodacom Business COO: Gateway Group G Financial South S h African Af i International Gateway Lunch overview rev
Slide 4: Group overview and investment case
Group overview and investment case Analyst presentation 2009
Slide 5: Key Vodacom investment highlights
Key Vodacom investment highlights L di market Leading k t positions iti Gro Unique platform for growth oup overview an nd investment ca E t bli h d track Established t k record d ase P Proven managementt team t supported t d by b Vodafone V d f Attracti e balance bet Attractive between een gro growt
Slide 6: Leading market positions
Leading market positions Number one position in four of five countries, with strong challenger status in Mozambique and enhanced pan-African coverage through Gateway Market Shareholding position1 Gro 93.75% oup overview an South Africa #1 65% Tanzania #1 nd investment ca 51% DRC #1 85% Mozambique #2
Slide 7: Platform for growth – attractive existing markets and region
Platform for growth – attractive existing markets and region Vodacom’s mobile footprint covers a population of approximately 180 million with growing, but still low, mobile penetration and limited broadband uptake Mobile penetration Broadband penetration As at 30 September 2008 For the year ended De
Slide 8: Platform for growth – total communications provider
Platform for growth – total communications provider Providing total communications is at the core of Vodacom’s strategy and we have committed significant resources to delivering converged services Recruited ♦ Top talent from leading regional ICT players skills ♦ Leveraging the strength of Vodacom’s
Slide 9: Platform for growth - brand, distribution and customer care
Platform for growth - brand, brand distribution and customer care Vodacom’s leading brand is underpinned by unparalleled distribution and superior customer care ♦ Leading brand across all footprint markets ♦ South Africa’s top telecommunications and Brand 4th best overall brand Gro ♦ “Superbrand oup
Slide 10: Established track record – innovation
Established track record – innovation Launch of Gro Operational launch in Vodacom opens the First to launch oup overview an S th Africa South Af i world’s ld’ fifirstt cellular ll l GPRS and d MMS in i Vodafone Live! shopping mall South Africa And first to launch BlackberryTM 1994 1998 2002 2005 nd
Slide 11: Established track record – profitable growth
Established track record – profitable growth Customers Revenue For the year ended 31 March (Millions) For the year ended 31 March (R billion) 34.0 48.2 30.2 41.1 34.0 Gro 23.5 oup overview an 20.2% CAGR 19.1% CAGR 2006 2007 2008 2006 2007 2008 nd investment ca EBITDA OpFCF1 For the year ended 31 Mar
Slide 12: Proven management team
Proven management team Vodacom has an experienced management team with an established track record in telecommunications Pieter Uys (46) CEO Gro 16 years with Vodacom oup overview an nd investment ca ase Johan van der Watt (42) Shameel Joosub (37) Lungi Ndlovu (50) Bob Collymore (51) Willem Swart (4
Slide 13: Supported by Vodafone
Supported by Vodafone Access to Vodafone’s expertise, product innovation, marketing and centralised procurement supports Vodacom’s in-house strength ♦ World’s leading international mobile communications group with The Vodafone Group c. 289 million proportionate subscribers in 27 countries Gro oup ov
Slide 14: Experienced and well balanced Board
Experienced and well balanced Board Board of directors with effect from the date of the listing Independent non-executive directors Government 1 Executive directors Gro oup overview an Peter Moyo Phuti Tom Thoko Pieter Uys Chairman Malabie Boardman Mokgosi- CEO Mwantembe nd investment ca Non-executi
Slide 15: Attractive balance between growth and returns
Attractive balance between growth and returns Dividends Dividend policy R million ♦ For the financial year ended 31 March 2010, Vodacom anticipates a dividend payout ratio of Gro approximately 40% of headline earnings oup overview an ♦ Dividends to be paid semi-annually with first dividend payable f
Slide 16: Vodacom's strategies for growth
Vodacom’s Vodacom s strategies for growth Vodacom aims to be a total communications provider in sub-Saharan Africa and deliver continued profitable growth Leadership in broadband Gro and oup overview an connectivity services Grow G o core co e Expansion nd investment ca mobile in businesses sub-Saha
Slide 17: Strategies for growth – grow core mobile business
Vodacom’s Vodacom s strategies for growth – grow core mobile business Vodacom aims to be a total communications provider in sub-Saharan Africa and deliver continued profitable growth Gro oup overview an Grow G o core co e nd investment ca mobile businesses ase Analyst presentation 2009 16
Slide 18: How have we become market leaders?
How have we become market leaders? The interaction of our six core competencies is a fundamental feature of our ability to be a leading total communications provider Customer Gro care Network oup overview STRATEGI an nd Products C investment REVIEW ca and services Supply chain management ase Brand D
Slide 19: Growth strategies for existing mobile markets
Growth strategies for existing mobile markets ♦ Enhance retention programmes Retain and grow our ♦ Drive further penetration customer base ♦ Increase market share Gro oup overview an ♦ Launch affordable and innovative products and services Drive usage and ♦ Provide high speed broadband access soluti
Slide 20: Strategies for growth – broadband leadership
Vodacom’s Vodacom s strategies for growth – broadband leadership Vodacom aims to be a total communications provider in sub-Saharan Africa and deliver continued profitable growth Leadership in broadband Gro and oup overview an connectivity services nd investment ca ase Analyst presentation 2009 19
Slide 21: Vodacom's strategy is to lead in broadband
Vodacom’s Vodacom s strategy is to lead in broadband Broadband uptake has historically been impacted by a variety of structural, regulatory and pricing issues which Vodacom is positioned to overcome Factors inhibiting growth Vodacom’s solutions ♦ Use of mobile technologies to deliver services Gro La
Slide 22: Mobile can fill the African fixed line void
Mobile can fill the African fixed line void fixed-line Evolution of mobile technology High speed 2G 2.5G 2.5G LTE GSM 3G GPRS EDGE 3.5G “4G” Gro W-CDMA HSDPA oup overview Flash-OFDM obility GATE Low speed WiMAX an E nd 802.16e 802 16e evels of mo WAY Pedestrian investment ca 802.16d Nomadic Wi-Fi Wi
Slide 23: New international capacity will boost bandwidth
New international capacity will boost bandwidth Prospective African submarine cables Vodacom’s approach ♦ Series of new international submarine Gro oup overview cables expected to come onstream during next 2 to 3 years GATE ♦ Vodacom is investing in Undersea Cable an Systems E ndWAY investment ca ♦
Slide 24: Affordable solutions should drive uptake
Affordable solutions should drive uptake South African broadband pricing evolution Lower cost devices increase addressable market R 60.00 R Gro R 50.00 50 00 72% 52% oup overview 3,599 reduction reduction STRATEGI R 40.00 an nd C investment R 30.00 REVIEW ca 2,099 R 20.00 ase R 10.00 999 999 R 0.00
Slide 25: Strategies for growth – converged ICT solutions
Vodacom’s Vodacom s strategies for growth – converged ICT solutions Vodacom aims to be a total communications provider in sub-Saharan Africa and deliver continued profitable growth Gro oup overview an nd investment ca ase Develop converged ICT solutions Analyst presentation 2009 24
Slide 26: Delivering new converged corporate solutions
Delivering new converged corporate solutions Vodacom Business has developed a suite of converged solutions to ensure growth in the ICT market segments as well as retention of corporate customers in an increasingly competitive market place Access services Gro oup overview an Managed network services
Slide 27: Delivering new converged consumer solutions
Delivering new converged consumer solutions New converged services provide an additional customer retention tool and can support ARPU growth Online services Media & entertainment Gro oup overview an Advertising Financial nd investment ca ase Analyst presentation 2009 26
Slide 28: Strategies for growth – sub-Saharan Africa
Vodacom’s Vodacom s strategies for growth – sub-Saharan sub Saharan Africa Vodacom aims to be a total communications provider in sub-Saharan Africa and deliver continued profitable growth Gro oup overview an Expansion nd investment ca in sub-Saharan Africa ase Analyst presentation 2009 27
Slide 29: Africa remains an exciting telecommunications market
Africa remains an exciting telecommunications market One of the fastest growing markets with unique attractions for further mobile growth and growing upside from data services given the low internet and broadband penetration levels Advanced Developing Nascent ♦ Mobile penetration of >50% ♦ Mobile pe
Slide 30: Gateway provides new market entry points
Gateway provides new market entry points Accelerates A l international i i l expansion Gro oup overview Provides platform for STRATEGI further expansion an nd C investment REVIEW ca Strengthens the total communications strategy ase Potential synergies y g Analyst presentation 2009 29
Slide 31: Key investment highlights
Key investment highlights ♦ Leading MNO in four of five countries of operation Leading market positions ♦ Largest pan-African pan African carrier service provider ♦ South Africa’s largest broadband provider ♦ Further growth from existing mobile operations Gro Unique platform for ♦ Network oup overvi
Slide 32: Q&A
Q&A Group p overview and investment case Analyst presentation 2009