Vodacom Group Limited · JSE:VOD
Vodacom — Investor Presentation (September 2021)
27 slides from Vodacom's investor presentation, September 2021
Slide 1: Vodacom Group Limited Investment case
Vodacom Group Limited Investment case Further together
Slide 2: 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. Information in the f
Slide 3: Our investment case
Our investment case 1 2 We are a market leader with attractive Scope to accelerate medium-term ROCE growth • Access to 129.9m customers, with • Data and smartphone penetration upside Vodafone Egypt transaction adding a 1 2 Fintech • Expanding addressable market in Fintech further 43.0m • Transformat
Slide 4: Our markets | Market leading position to >500 million people
Our markets | Market leading position to >500 million people Investment case attributes: 1 2 South Africa Tanzania Legend: Vodacom led markets Ownership 100% Ownership 75% Safaricom led markets Population1 58.0 million Population1 59.6 million M&A announced, not completed Customers (90-day active) 4
Slide 5: Our Purpose | Further together
Our Purpose | Further together Investment case attributes: 1 243 4 Purpose We connect for a better future Digital society Inclusion for all Planet • Affordable internet for all • Diversity (incl women) • Energy mix, water, waste • Digital solutions that transform lives • Education ecosystem (incl yo
Slide 6: Our Strategy | Leading African TechCo with clear System of Advantage
Our Strategy | Leading African TechCo with clear a System of Advantage 1 243 4 Investment case attributes Africa’s leading communications giant Footprint finalised Secure leadership in Mobile and Fixed Diversify and differentiate with our digital ecosystem Scale Financial Digital Partner World class
Slide 7: Strategy in action | Accelerating our System of Advantage
Strategy in action | Accelerating our System of Advantage Investment case attributes: 1 2 3 Acceleration: >500m Strategic Strategic objective: outcomes: Population supporting scalable Acquisition of market leader partnerships in Egypt, • Accelerating our Secure leadership in Ethiopia green-field rol
Slide 8: M&A in context | Accelerating our System of Advantage
M&A in context | Accelerating our System of Advantage Investment case attributes: 1 2 3 4 Vodafone Egypt South Africa fibre Market leader, with Super-app opportunity Market leading Enhance our home & attractive asset portfolio to unlock financial and open-access FTTx business connectivity (eg towers
Slide 9: Vodafone Egypt transaction rationale
Vodafone Egypt transaction rationale | A single transaction to enhance Vodacom’s growth and returns Investment case attributes: 1 2 3 What we like about Vodafone Egypt Market leader, Strong growth Material fintech Asset owners, with >30% ROCE outlook supported by opportunity, with market leading tow
Slide 10: Vodafone Egypt acquisition | Timetable and key requirements
Vodafone Egypt acquisition | Timetable and key requirements Key Dates 10 Nov 15 Nov 15 Dec 18 Jan Before 31 March Deal announced Interim results announced Publication of circular General meeting Target closing Key milestones and requirements • Egyptian regulatory approvals • SARB approval • Ordinary
Slide 11: Group profile | Clear organic growth drivers
Group profile | Clear organic growth drivers Investment case attributes: 1 2 4 41 FY1H22 operating profit Growth and value drivers R billion • Data penetration • 62% in SA • 60% in IB • Smartphone adoption Mobile • 56% in SA • 32% in IB • InfraCo (15k/8k SA/IB tower sites) 1.7 • IoT, digital and fix
Slide 12: Group profile | M&A diversifying and enhancing growth outlook
Group profile | M&A diversifying and enhancing growth outlook Investment case attributes: 1 2 Before Vodafone Egypt deal After Vodafone Egypt deal Growth and diversification FY21 Service revenue1 • Vodafone Egypt’s market 18.5% position, supported by its leading brand, network and 24.2% 47.1% 11.0%
Slide 13: Financial services | Super-app approach linking consumers and merchants
Financial services | Super-app approach linking consumers and merchants 2 4 1 4 Investment case attributes Consumer proposition Lifestyle super-app Merchant proposition powered by Trusted platform & brand, Large footprint, low set up costs, personalised offers, access to personal targeting, affordab
Slide 14: Our management team
Ourmanagement Our management team team Investment case attribute: 3 Vodacom Group Chief Executive Officer Shameel Joosub Group functions Operating companies Group Finance Group Technology Vodacom South Africa Raisibe Morathi Dejan Kastelic Balesh Sharma Group Financial and Group Human Resources Safa
Slide 15: Capital structure | Accelerating our System of Advantage
Capital structure | Accelerating our System of Advantage Investment case attributes: 1 2 3 Accelerate Utilising Simplify Enhance System of Advantage debt capacity dividend policy shareholder value M&A – VE debt impact Capacity to Disciplined and strong Vodafone Egypt around R23 billion accelerate gr
Slide 16: ESG | Aligned with our purpose
ESG | Aligned with our purpose Investment case attribute: 4 1 4 To connect for a better future Purpose (G) Environment Governance Social Digital society (S) Inclusion for all (S) Planet (E) Reducing the amount Purpose driven outcomes We provide mobile health solutions, support vaccination of GHG emi
Slide 17: Our share information
Our share information Total shareholding Share trading information As at 31 March 2021 # of shares % holding JSE Ticker symbol VOD Vodafone Group PLC1 1 110 629 881 60.50 ADR code VDMCY Government Employees Pension Fund 248 583 223 13.54 Stock exchange JSE Limited YeboYethu Investment Company (Pty)
Slide 18: Our journey
Our journey Vodacom is a leading and purpose-led African connectivity and financial services company. The Group, including Safaricom1, serves 129.9 million customers spanning across the consumer and enterprise segments and offers a wide range of services, including: telecommunication, IT, digital an
Slide 19: Vodacom in numbers
Vodacom in numbers Further together Vodacom Interim Results September 2021
Slide 20: Country data
Country data South Africa Tanzania DRC Mozambique Lesotho Safaricom PopulationŦ (million) 60.0 61.5 92.4 32.2 2.2 55 GDP per capitaŦ (USD) 105 393η 1 237 542 511 1 316 1 912 GDP growth estimateŦ 2019 (%) 5.2 4.3 3.8 2.8 1.9 4.4 Ownership (%) 100 61.61 51 85 80 34.94¢ 2039/2032/ 2022/2024/ Licence ex
Slide 21: Five-year track record
Five-year track record | for years ending 31 March 21/20 5-year 2021 20201 20192 2018 2017 % change CAGR % Service revenue (R million) 77 574 73 354 69 867 70 632 68 286 5.8 3.2 Revenue (R million) 98 302 90 746 86 627 86 370 81 278 8.3 4.9 EBITDA (R million) 39 299 37 610 33 714 32 898 31 238 4.5 5
Slide 22: Interim results | for the six months ended 30 September
Interim results | for the six months ended 30 September Key highlights Key numbers Reported Normalised R million 1H22 1H21 • Group revenue of R49.9 billion was up 4.2%, as strong normalised % change % change growth of 7.9%* was partially offset by rand appreciation. Group • Normalised Group service
Slide 23: Dividend policy | Payment history
Dividend policy | Payment history Vodacom Group’s current dividend policy is to pay at least 90% of adjusted headline earnings, which excludes the contribution of the attributable net profit or loss from Safaricom and any associated intangible amortisation. In addition, Vodacom Group distributes any
Slide 24: Contacts
@alleingalimarnr contacts
Slide 25: Definitions
Definitions Customers Data customers M-Pesa Customers ARPU Data customers are based on the number of Customers are based on the total unique users generating billable data traffic number of mobile customers using during the month. Also included are users on any service during the last three integrat
Slide 26: Forward-looking statement
Forward-looking These factors include, but are not limited to, the following: changes in economic or political conditions in markets served by operations of the Group; greater than anticipated competitive activity; higher than expected costs or capital statement expenditures; slower than expected cu
Slide 27: More information
More information Visit our website for more information http://www.vodacom.com 2022 upcoming dates 3Q22 results 01 February 2022 FY22 results 16 May 2022 Contact us VodacomIR@vodacom.co.za 1Q23 results 21 July 2022 Follow us on social media 1H23 results 14 November 2022 @Vodacom Facebook.com/vodacom
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