Slide 1: Vodacom JSE Investor briefing
Vodacom JSE Investor briefing 9 September 2014
Slide 2: Vodacom Group Limited
Vodacom Group Limited 82 Vodacom is a leading African mobile and communication company providing a wide range of services, including mobile voice, messaging, data and converged services to • Our roots are in South Africa • We have networks in Tanzania, DRC, Mozambique and Lesotho • We offer business
Slide 3: History - Milestones
History - Milestones History – Consistent track record of innovation 1st 1st 1st 1st 1993 1995 1996 1998 1999 2002 2003 2006 2008 2009 2011 2012 2014 Awarded a Vodacom 1st to launch Vodacom Vodacom Vodacom Vodacom Vodacom Vodacom Vodacom Vodacom 1st to launch Launch of licence to launched in prepaid
Slide 4: What we do
What we do • We give people the power to connect with each other – and to learn, work, play, be entertained and broaden their horizons – wherever and however they choose • At the last count, over 59. 6 million customers use our services in 5 countries picked us as their preferred service provider be
Slide 5: Who leads us
Who leads us Finance International Ivan Dittrich (41) Romeo Kumato (42) Chief Financial Officer Chief Operating Officer: s internationsi Joined Vodsco in Augu: Customer operations CEO Legal and regulatory Gary Hagel (47) Shameel Joosub Nkateko Nyoka (51) Chief Officer: (43) Chief O"cer: Chief Execut
Slide 6: How we do business
How we do business • We buy licences that give us rights to spectrum bands and we build networks over which we provide calls, SMS and mobile internet services to customers • Customers pay for the services and we use the cash flow generated to reinvest in the business and provide a good return to our
Slide 7: How we create value
How we create value • Our strategy is all about creating value for all our stakeholders • Products, services and penetration – Innovative products for emerging market economies, M-pesa - a mobile-phone based money transfer and microfinancing service that allows users with a national ID card or passp
Slide 8: Our financial performance
Our financial performance Service revenue R62.0bn Service revenue R62.0bn EBITDA R27.3bn Customers 59.6m Mobile voice 58% South Africa 78% South Africa 84% South Africa 55% Mobile interconnect 9% International 45% International 22% International 16% Mobile messaging 5% Mobile data 21% Other service
Slide 9: Strategic objectives, impact and sustainability journey (so far)
Strategic objectives, impact and sustainability journey (so far)
Slide 10: Strategic pillars
Strategic pillars Customer Customer Growth Growth Operations Operations People People Reputation Clear NPS leadership Diversify revenue to Deliver cost and process Best talent, best practice Transform society and deliver growth efficiency build stakeholder trust Best value Grow data Process efficien
Slide 11: Our impact
Our impact Since the launch of Vodacom in May 1994, our journey has been remarkable, characterized by a strong track record of innovation We believe that we can help build a more sustainable future by delivering products and services that enable positive economic, social and environmental outcomes f
Slide 12: We are more than just a business
We are more than just a business • We are aware of the direct environmental impact of our base stations and are working to find ways to lessen our total carbon footprint • Our Radio Access Network renewal programme will realise electricity savings up to 40% • In South Africa, all off-grid generators
Slide 13: Our Sustainability Journey
Our Sustainability Journey Vodacom Produced our Vodacom Featured on A Best obtained our first Featured on Foundation the JSE SRI Performer on license to Sustainability CDP CDLI established Index the SRI operate Report 2010 1999 2010 2011, 2013 1993 2008 13
Slide 14: ESG Value Driver Framework
ESG Value Driver Framework
Slide 15: Sustainability-advantaged Growth
Sustainability-advantaged Growth New markets & geographies • To diversify revenue base we’re focused on driving the mobile data opportunity and developing new services. • We’re also actively looking for opportunities to expand into new countries. Growing data and smart phone penetration • Vodacom Sm
Slide 16: Value Driver Model - Sustainability-advantaged Growth
Value Driver Model - Sustainability-advantaged Growth Investing in high quality networks with a strong focus on energy efficiency 16
Slide 17: Sustainability-driven Productivity
Sustainability-driven Productivity Operational Efficiency • We are improving our systems and tracking various metrics enabled us to reduce call volumes to our call centres by almost 7.7% in the year. Managing our environmental impact • As we continue to roll out more base stations and data centres t
Slide 18: Sustainability-driven Productivity
Sustainability-driven Productivity Delivering efficiencies • Group wide carbon reduction target • Investing in newer energy efficient technologies • Investments in renewable and alternate energy • Ultra low cost sites in the DRC • Solar sites in Lesotho Century City Solar Array • Community Power 18
Slide 19: Sustainability-driven Human Capital Management
Sustainability-driven Human Capital Management Investing to be the best employer • Women in Technology programme • Innovate Program • People Survey Investing in talent and driving diversity • We have talent programmes • Our Performance Dialogue programme involves monitoring performance against yearl
Slide 20: Sustainability-related Risk Management
Sustainability-related Risk Management Operational, Regulatory and Reputational Risk • There is no opportunity without risk. We have the right structures in place to identify, monitor and manage our risks effectively. • Risk is managed at three distinct levels in the Group – the line manager at oper
Slide 21: Sustainability-related Risk Management
Sustainability-related Risk Management Reputational risk • Our reputation is determined by our interactions with all our stakeholders. Besides meeting the needs of our customers, employees and shareholders, the communities in which we operate look to us to work in such a way that benefits broader so
Slide 22: Sustainability-related Risk Management
Sustainability-related Risk Management Source: KPMG report ‘Expect the Unexpected’ 22
Slide 23: Sustainability-related Risk Management
Sustainability-related Risk Management • Ten ‘megaforces’ will influence the manner in which business is conducted and how companies interact with their stakeholders • The megaforces can be seen to be shaping the future of the business environment globally. • We have identified how these megaforces
Slide 24: Thank you
Thank you