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  • Vodacom Group Limited IR presentation | 5 September 2016

    Vodacom Group

    Limited

    September 2016

  • Vodacom Group Limited IR presentation | 5 September 2016

    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 following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield

    on such investments cannot be relied upon as a guide to the future performance of such investments. This presentation does not constitute

    an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire

    securities in any company within the Group.

    Promotional material used in this presentation that is based on pricing or service offering may no longer be applicable.

    This presentation contains certain non-GAAP financial information which has not been reviewed or reported on by the Groups auditors. The

    Groups management believes these measures provide valuable additional information in understanding the performance of the Group or

    the Groups businesses because they provide measures used by the Group to assess performance. However, this additional information

    presented is not uniformly defined by all companies, including those in the Groups industry. Accordingly, it may not be comparable with

    similarly titled measures and disclosures by other companies. Additionally, although these measures are important in the management of

    the business, they should not be viewed in isolation or as replacements for or alternatives to, but rather as complementary to, the

    comparable GAAP measures.

    This presentation also contains forward-looking statements which are subject to risks and uncertainties because they relate to future events.

    These forward-looking statements include, without limitation, statements in relation to the Groups projected financial results. Some of the

    factors which may cause actual results to differ from these forward-looking statements are discussed on slide 23 of this presentation.

    Vodafone, the Vodafone logo, Vodafone Mobile Broadband, Vodafone WebBox, Vodafone WebBook, Vodafone Smart tab, Vodafone 858

    Smartphone, Vodafone Passport, Vodafone live!, Power to You, Vodacom, Vodacom M-Pesa, Vodacom Millionaires, Vodacom 4 Less and

    Vodacom Change the World are trademarks of Vodafone Group Plc (or have applications pending). Other product and company names

    mentioned herein may be trademarks of their respective owners.

    2

  • Vodacom Group Limited IR presentation | 5 September 2016

    Vodacom DRC

    Licenced 2002 Population 71 million Vodacom Tanzania

    Licenced 1999 Population 55 million

    Vodacom Mozambique

    Licenced 2003 Population 29 million

    Vodacom Lesotho Licenced 1995 Population 2 million

    Vodacom South Africa Licenced 1993 Population 55 million

    All information in presentation is as at 31 March 2016, unless otherwise stated. #Market capitalisation value as at 5 September 2016.

    A leading African mobile communication company providing

    a wide range of communication services including mobile

    voice, messaging, data and converged services to over

    61 million customers.

    Vodacom is majority owned by Vodafone Plc (65%) and we

    are listed on the JSE Limited.

    Market capitalisation of R231.3 billion#.

    Group revenue of R80.1 billion.

    Head office in Midrand, South Africa

    History consistent track record of innovation

    2012 2011 2009 2008 2004 1996

    First to launch

    prepaid services

    in the world on IN

    platforms

    Vodacom

    launches a 3G

    HSDPA network

    in South Africa

    Vodacom

    Business

    launches

    Vodacom listed

    on the JSE

    (18 May)

    Vodacom

    rebrands from

    Green and Blue

    to Vodafone

    RED

    LTE-Advanced

    launched First to launch

    4G in

    South Africa

    2016

    3

  • Vodacom Group Limited IR presentation | 5 September 2016

    Share information

    As at 5 September 2016

    JSE Ticker symbol VOD

    ADR code VDMCY

    Stock exchange JSE Limited

    Shares in issue 1 487 954 000

    Freefloat 35%

    52 week low and high R132 R172

    Market capitalisation R231.3 billion

    Debt rating Long term scaling zaAAA (S&P)

    Transfer agent ComputerShare

    Indices

    FTSE/JSE Top 40 Index

    JSE Socially Responsible Index

    Nedbank BGreen Exchange Traded Fund

    66%

    19%

    7% 4% 4%

    South Africa

    United States

    United Kingdom

    Rest of Europe

    Rest of world

    Institutional shareholding

    4

    PIC = 49.9%

  • Vodacom Group Limited IR presentation | 5 September 2016 5

    Five reasons to own Vodacom shares

    2

    3

    Focus areas of growth potential

    Market leadership

    1

    Scale benefits driving efficiencies

    Experienced, diverse management team

    5 Track record of delivering shareholder returns

    4

    5

  • Vodacom Group Limited IR presentation | 5 September 2016

    #1 mobile operator in all markets

    All information is as at 31 March 2016

    #1 | Market leadership

    61.3 million customers in

    5 countries in Sub-Saharan Africa

    R14 billion enterprise revenue from

    30 countries in Africa

    R13 billion investment per annum to maintain our leading network quality

    > 18 000 base stations, > 80% 3G 1st to launch 4G in South Africa, Lesotho and Tanzania

    6

  • Vodacom Group Limited IR presentation | 5 September 2016

    Enterprise (21% of Group service revenue)

    Enterprise contributes 21% to Group service revenue

    SA fixed and managed services revenue +27%

    o Pan African MPLS network

    o Fibre to the business/home

    7

    #2 | Focus areas of growth potential

    Data (32% of Group service revenue)

    Group: 29 million active data customers; 57% of total base

    SA: 14 million active smart devices; 37% of active

    customers

    SA: 572MB per smart device growing 23%

    International (27% of Group service revenue)

    27% of Group service revenue

    Data revenue growth +32%

    Active customers 27 million

    o Active customers now 44% of Group active customers

    FY14: +37%

    FY15: +13%

    FY16: +19%

    FY14: +24%

    FY15: +10%

    FY16: +17%

    New services (SA) (4.2% of Group service revenue)

    Insurance revenue +19%

    o Expanding portfolio: life, funeral, device, cover

    Capture Internet of Things opportunity

    Fibre to home +25 000 homes and businesses passed

    7

    .

    FY14: +33%

    FY15: +25%

    FY16: +29%

  • Vodacom Group Limited IR presentation | 5 September 2016 8

    Focussed savings programmes Fit 4 Growth

    Reduced transmission rentals through self-provisioning

    Cost optimisation through sharing, outsourcing and supply

    chain management

    Improved return on investment in customer acquisition

    spend

    Reduced support costs offsetting inflationary pressures

    Benefits from being part of the Vodafone Group

    Global technology and product roadmap

    Better pricing through Vodafone Procurement Company

    Benefits from best practice sharing and benchmarking

    Talent and skills sharing

    #3 | Scale benefits driving efficiencies

    8

  • Vodacom Group Limited IR presentation | 5 September 2016

    4

    Executive Committee (12 members)

    Male

    83%

    Female

    17%

    CEO: Shameel Aziz Joosub (45)

    20 years industry experience

    Previously CEO of Vodafone Spain

    IT Person of the year 2015

    CFO: Till Streichert (41)

    15 years industry experience

    Previously CFO of Vodafone Romania

    European and emerging market experience

    #4 | Experienced, diverse management team

    Black

    58%

    White

    42% South African

    75%

    Intern-ational

    25%

    9

  • Vodacom Group Limited IR presentation | 5 September 2016

    395 375 395

    430 400 400

    FY14 FY15 FY16

    Interim dividend Final dividend

    Dividend per share Cents per share

    825 775

    795

    #5 | Consistently delivering shareholder returns

    Relative share price performance1

    TSR ZAR YTD (for 12 months ending 5 September 2016)

    -31.5%

    -18.1%

    -7.1%

    3.8%

    13.0%

    -35.0% -25.0% -15.0% -5.0% 5.0% 15.0%

    MTN

    Millicom

    Bharti

    Telkom

    Vodacom

    10

    1. As at 5 September 2016.

  • Vodacom Group Limited IR presentation | 5 September 2016 11

    Service revenue growth

    Low to mid single-digit

    Mid to high single-digit

    EBITDA growth

    12% to 14%

    Capex intensity

    Targets | Group three-year targets

    Vodacom Group Limited IR presentation | 5 September 2016 11

  • Vodacom Group Limited IR presentation | 5 September 2016

    Continuing to deliver returns

    12

    Best network

    ---------------------

    Best value

    ---------------------

    Best service

    Diversify

    revenue to

    deliver gr

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