Slide 1: 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. contents Information
Slide 2: Strong Group performance
Strong Group performance C t Customers R Revenue D t revenue Data EBITDA O FCF OpFCF 0 7% 0.7% 5 6% 5.6% 31 9% 31.9% 8 7% 8.7% 55 2% 55.2% 40m R58.5bn R4.5bn R19.8bn R13.5bn 22.3% % growth in headline earnings per share to 510 cents Final dividend declared of 175 cents p per share 2 2 Delivery again
Slide 3: South Africa delivered a robust performance
South h Africa International South Africa Conve serv vices erged Financials Outlo ook South Africa delivered a robust performance Customers Revenue Million R million Ç 5.7% 5 7% È 4.9% 27.6 50 431 26.3 47 733 24.8 43 004 FY 2008 FY 2009 FY 2010 FY 2008 FY 2009 FY 2010 EBITDA Operating free cash flow
Slide 4: Maintained solid growth and leadership position
Maintained solid growth and leadership position Revenue market share Service revenue % (calendar year) R million/% YoY growth 11 604 53.9% 11 191 53.2% 10 866 10 505 36.9% 35.5% 8.0 7.6 7.4 9.9% 10.6% 7.1 CY 2008 CY 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Vodacom MTN Cell C 6 Contract service revenue u
Slide 5: Prepaid service revenue up 8.3%
Prepaid service revenue up 8.3% • Prepaid ARPU flat at R70 Prepaid customers Thousand/% YoY growth • Prepaid churn down from 45.2% to 43.7% 24 696 24 045 22 753 21 765 • New lower prepaid tariff plans launched 16.2 11 8 11.8 • RICA impact 0.8 – Prepaid customer base declined (8.1%) 1.9 million – G G
Slide 6: Widest selection of data devices
Widest selection of data devices Basic internet capable Data card PC/Netbook Smartphone handset • 728k active p • Cheapest netbook • 2.0m active • 3.1m active • 34.1% YoY growth at $310 • 44.6% YoY growth • Average usage • New Linkbook with in smartphones 14MB/pm • Cheapest data card at $80 embedded
Slide 7: Managing through difficult trading conditions
South h Africa International International Conve serv vices erged Financials Outlo ook Managing through difficult trading conditions Customers Revenue Normalised Million R million È 8.1% Ç 13.7% 7 099 È 21.6% 13.6 12.0 5 569 5 403 9.2 FY 2008 FY 2009 FY 2010 FY 2008 FY 2009 FY 2010 EBITDA Normalised
Slide 8: Decisive action taken to lower prices and tackle costs
Decisive action taken to lower prices and tackle costs • Tanzania in transition Tanzania revenue TZS million/% EBITDA margin – Reduced tariffs – Customer growth of 28.3% 424 460 È 4.1% – MOU up from 34 in Q1 to 69 in Q4 404 859 407 214 35.3 32.5 30.5 FY 2008 FY 2009 FY 2010 • DRC challenging DRC rev
Slide 9: Increasing contribution to Group from converged services
South h Africa International Converged services Conve serv vices erged Financials Outlo ook Increasing contribution to Group from converged services • Strong sales momentum in South Africa Group other service revenue R million/% of service revenue • Global corporate wins with Vodafone 8.1 • Investin
Slide 10: Group income statement
South h Africa International Financials Conve serv vices erged Financials Outlo ook Group income statement R million FY 2010 FY 2009 % change Revenue 58 535 55 442 5.6 EBITDA 19 782 18 196 8.7 Operating profit before impairment/BBBEE charge 14 608 13 432 8.8 BBBEE charge - (1 315) n/a Impairment los
Slide 11: Group revenue growth of 5.6%
Group revenue growth of 5.6% Group revenue growth Group revenue by category R million R million FY 2010 % %2 Mobile voice 31 338 1.0 1.0 Ç 5.7% È 8.1%1 (201) Ç 5.6% Mobile interconnect 8 742 (3.9) (3.9) (1 530) 2 126 58 535 2 698 Mobile messaging 3 215 6.3 6.3 55 442 Mobile data 4 498 31.9 31.9 Othe
Slide 12: Group operating costs decreased 1.4% excluding Gateway
Group operating costs1 decreased 1.4% excluding Gateway Group operating costs1 by segment Group operating costs1 by category R million FY 2010 % change R million FY 2010 % %2 South Africa 31 850 0.8 Direct costs3 26 774 2.1 (3.4) International 4 680 (11.1) Staff expenses 4 291 16.4 12.0 Corporate/el
Slide 13: Group net profit impacted by impairments and higher effective tax
Group net profit impacted by impairments and higher effective tax Net profit analysis R million R3 189 million recognised in H1 (410) 1 315 (3 258) 1 586 12 005 11 238 (2 272) (4 745) (21) 4 200 FY 2009 EBITDA BBBEE Depreciation Impairment FY 2010 Net finance Taxation Loss from FY 2010 Operating cha
Slide 14: Group taxation
Group taxation • STC on interim dividend paid in November Group taxation 2009 R million FY 2010 Rate (%) • DRC benefited from higher allowances due Normal tax 2 505 28.0 to the devaluation of the Congolese Franc Unproductive U p oduc e interest e es 191 2.1 • The unrecognised tax asset is mainly due
Slide 15: Group balance sheet
Group balance sheet R million FY 2010 FY 2009 Movement Assets Property, plant and equipment 21 383 21 844 (461) Intangible assets 6 673 11 794 (5 121) Other non-current assets 1 075 1 586 (511) Current assets 12 560 12 135 425 T t l assets Total t 41 691 47 359 (5 668) Equity and liabilities Total e
Slide 16: Group free cash flow increased 127.1%
Group free cash flow increased 127.1% Cash flow generation R million Ç 8.7% (71) Ç 23.9% 19 782 19 711 (6 222) Ç 55.2% 13 489 (1 513) (4 764) Ç 127.1% 7 212 EBITDA Working Cash Net additions Operating Net finance Taxation Free capital generated from to PPE and free cash charges cash flow and other o
Slide 17: Final dividend declared of 175 cents per share
Final dividend declared of 175 cents per share • Dividend payable on 5 July 2010 Dividend R million Interim Final Total • Dividend payout of approximately 60% Adjusted1 headline for March 2011 4 039 4 404 8 443 earnings – Flexibility for potential acquisitions Adjusted1 HEPS (cents) 271 297 568 and
Slide 18: Looking forward
Looking forward Economic GDP growth forecast % YoY growth • GDP growth th recovers 6.1 6.0 4.9 5.2 2.8 3.0 3.5 • Positive indicators in South Africa 2.0 1.6 • Strong rand dampens growth (1.8) South Tanzania DRC Mozambique Lesotho Africa CY 2009 CY 2010 Competition Regulatory • Expect price pressure
Slide 19: Company medium term targets
Company medium term targets Market position • Maintain or improve market position in all geographies • Growth despite reduction in interconnect revenue Service revenue (low single digit) EBITDA • Improve EBITDA margin through operational efficiencies Capex Capital expenditure • Manage capital expend
Slide 20: Exchange rates
South h Africa International Appendix Conve serv vices erged Financials Outlo ook Exchange rates % change % change Average year to date FY 2010 FY 2009 FY 2008 09/10 08/09 USD/ZAR 7.83 8.84 7.11 (11.4) 24.3 ZAR/MZN 3.68 2.83 3.57 30.0 (20.7) ZAR/TZS 171.29 142.67 171.95 20.1 (17.0) EUR/ZAR 11.05 12.
Slide 21: Country data
Country data South Africa Tanzania DRC Mozambique Lesotho Population (million) 49 44 66 23 2 GDP per capita (US$) 5 790 495 190 434 960 GDP growth est. 2009 (%) (1.8) 4.9 2.0 5.2 1.6 Estimated mobile penetration (%) 100 34 13 23 41 p Number of operators 3 7 4 2 2 Market position 1 1 1 2 1 Estimated
Slide 22: Forward-looking statements
Forward-looking statements This presentation which sets out the year end results for Vodacom Group Limited for the year ended 31 March 2010 contains 'forward-looking statements' with respect to the Group’s financial condition, results of operations and businesses and certain of the Group Group’ss pl