Full Iar Lores

Integrated
report
for the year ended
31 March 2019
The future is exciting.

Ready?
Who we are
Vodacom is a leading African communications company providing a wide range
of services, including data, mobile and fixed voice, messaging, financial services,
Enterprise IT and converged services to 110 million1 customers.
From our roots in South Africa, we have grown our mobile network business to include operations in Tanzania,
the DRC, Mozambique, Lesotho and Kenya. Our mobile networks cover a total population of over 291 million1
people. Through Vodacom Business Africa (VBA), we offer business-managed services to enterprises in
50 countries. Vodacom is majority owned by Vodafone (60.5% holding), one of the world’s
largest communications companies by revenue.
Our purpose Our vision Our way Our strategy
Why we exist Where we How we What we

We connect for a are going need to do it need to do
better future To be a leading digital Speed, simplicity and trust
company that empowers a
connected society
Best customer experience Our brand and reputation

We provide a seamless, We are a purpose-led organisation,
frictionless, personalised connecting for a better future
digital experience to our by enabling a digital society,
customers. inclusive for all, with the least
environmental impact.
PG 28
PG 44
01 07
Segmented propositions Digital organisation
We develop a deep insight and culture
of our customers’ needs, Our strategy We build an organisation
wants and behaviours, and 02 06 of the future where digital
provide propositions to is first for all employees,
lead in chosen segments. underpinned by innovation,
PG 31 agility and new skills.
03 05 PG 42
04
Financial services Best technology
We scale our financial services We aim to be the leading
offerings to empower the lives telco in all markets through
of our customers through the best network and IT
financial inclusion. excellence, with digital at
the core.
PG 34
PG 38
Digital content platforms
We grow into new verticals of digital services to
better serve our customers and create value.
PG 36
1. Including Safaricom at 100%.

How to get the most out of our Integrated report:
This icon tells you This icon tells you where This icon tells you where you can
where you can find you can find more find more information on our
related information information at parent Vodafone Group Plc’s
in our report. www.vodacom.com website at www.vodafone.com
Contents
Vodacom’s 2019 integrated reporting suite
Our 2019 integrated reporting process comprises the following reports:
01 About this report
02 The value we impacted Integrated report 2019
04 25 years of empowering a Consolidated annual financial statements 2019
connected society Sustainability report 2019
Operational reports
Our business These are all available at www.vodacom.com
06 Where we operate
07 What we offer
08 Chairman’s statement Other sources of information available online
10 CEO’s statement 16700_1_1-31_VC SR2019_Proof 3_30 May
12 Our business model

14 How we sustain value Sustainability
Report
2019
Consolidated
annual financial
statements
Consolidated
for the year ended 31 March 2019 for the year ended
16 Our operating environment

31 March 2019
Sustainability annual financial

18 Our key relationships We connect for a better future.
report
The future is exciting.
Ready?
statements
20 Responding to stakeholder
‘hot issues’
22 Our principal risks
Delivering societal value through our core purpose
Vodacom’s core purpose is ‘connecting for a better future’. The
Our strategy United Nations Sustainable Development Goals (UN SDGs) provide
26 Delivering on our strategy the best articulation of what that ‘better future’ looks like, setting
a clear long-term agenda to end poverty, protect the planet
48 Q&A with the Head of Strategy
and ensure prosperity for all by 2030. Vodacom is committed to
playing its role, as a private sector company, in the attainment of
these goals, supporting governments, communities, businesses
Our performance and individuals to build a better future. Through our core business
50 CFO’s statement of providing increased access to reliable and accessible voice
and data services, we are making an enormous contribution to
52 Tax and our contribution
national and global developmental objectives.
to public finance
53 Condensed consolidated
financial statements
58 Our segment performance
Our governance
64 Who governs us
65 Who leads us
66 Board governance at a glance
68 Remuneration report
Vodacom has identified and prioritised the
following eight Sustainable Development
Administration Goals, where we believe we can have the most
meaningful impact. Our approach to delivering on
80 Share information these goals is reviewed in our suite of integrated
82 Disclaimer reports, with the most detail provided in our
83 Glossary Sustainability report 2019.
84 Corporate information
Your feedback please!

We’d really value your feedback on our Integrated report.
Please use this QR code link which will take you to a
quick-and-easy feedback form on your smartphone.
Presenting our strategy for
long-term value creation
To our investors and other interested stakeholders
This year Vodacom celebrates 25 years of keeping people connected. We’ve come
a long way since launching in South Africa in March 1994, growing the business
to provide a wide range of communication services to 110 million customers,
including Safaricom.
A great deal has changed in the last 25 years – politically and assessment of our strategic framework for long-term value
economically, regionally and globally, in business models and creation. Prepared in accordance with the IIRC’s International
in consumer behaviour, and in stakeholders’ expectations on <IR> Framework, the report strives to provide a concise and
how businesses should create and share value. Some of these frank assessment of our proposed approach to achieve strong
changes have been particularly acute in the ICT sector, where financial growth and to deliver on our core purpose: connecting
the rise of the smartphone and the digitally connected for a better future.
economy is fundamentally changing how we do business.
As a Board, we have applied our collective mind to the
The pace and scale of change in the past 25 years has been preparation and presentation of the information in this report.
rapid and widespread; we anticipate that the next 25 years will We believe that the report addresses all material matters
be even more dynamic. While we cannot predict what the and that it presents a balanced and fair account of the
future holds, we believe that Vodacom is well placed to deliver Group’s performance for the financial year 1 April 2018 to
further long-term growth. 31 March 2019, as well as an accurate reflection of our
strategic commitments for the short, medium and long term.
In this report we share our perspectives on why we believe We have applied our judgement regarding the disclosure of
Vodacom is a good long-term proposition. To appreciate Vodacom’s strategic plans and have ensured that these
Vodacom’s ability to generate long-term value, it is important disclosures do not place Vodacom at a competitive disadvantage.
not only for us to look back at the year’s past performance, but On the recommendation of the Audit, Risk and Compliance
also to look forward, to reflect on how we see the future Committee, the Board approved the Integrated report and the
business context, and to assess how we are positioning the consolidated annual financial statements on 31 May 2019.
company to ensure its success in a rapidly changing societal
context. Recognising that our ability to deliver value depends We encourage you, as one of our interested stakeholders, to share
ultimately on the quality of our relationships, and on the health your views on our report, our performance and our strategic
of the societies and economies in which we operate, it is roadmap for delivering value1. Holding us to account on what we
essential also to understand how we are managing these say and do is a critical enabler for ensuring that Vodacom will
relationships, and what we are doing to deliver societal value. continue to create value for at least the next 25 years.
This Integrated report seeks to answer these questions by
providing the information needed to make an informed
Phillip Moleketi Shameel Joosub Till Streichert Phuti Mahanyele- David Brown Priscillah Sakumzi
Dabengwa Mabelane Macozoma
Sunil Sood Michael Joseph John Otty Thomas Vivek

Reisten Badrinath
1. Please address any comments to [email protected]

About
model (pages 12 – 13); our interaction with the six capitals
(pages 14 – 15); our operating environment (pages 16 – 17); and
the interests of our key stakeholders as expressed during our
normal business engagements with them (pages 18 – 19). This
this report
report presents the identified material information through a
clearly structured narrative that: reviews who we are and how we
create value (pages 02 – 03); identifies those issues that have a
significant impact on value; and outlines our strategy,
performance and governance practices in ensuring long-term
Report boundary and scope value creation (pages 50 – 81). Additional information not
This report reviews Vodacom’s strategy and business model, risks material to this report, but of interest for other purposes, is
and opportunities, and operational and governance performance, provided in our other reports on our website.
for the financial year 1 April 2018 to 31 March 2019. The report
covers the activities of the Vodacom Group and all our Integrated thinking
operating subsidiaries. Financial and non-financial data from Integrated thinking is intrinsic to how we manage our business
our subsidiaries are fully consolidated. In assessing the issues and to our internal strategy development and reporting
that materially impact value creation we have looked beyond practices. Our strategy and six strategic pillars have been
the financial reporting boundary to provide for the material developed to ensure that we manage the resources and
interests of relevant stakeholders, and to address the significant relationships needed to create value over time. A considered
risks, opportunities and impacts associated with our activities assessment of the six capitals (as referred to in the IIRC’s <IR>
over the short-term (less than 12 months), medium-term Framework) informed both our strategy and the internal
(one to three years) and long-term (beyond three years). materiality process used to determine the content and
structure of this report.
Reporting frameworks
Our reporting process has been guided by the principles and
Combined assurance
requirements contained in the International Financial Reporting We use a combined assurance model to provide us with
Standards (IFRS), the IIRC’s International <IR> Framework, the assurance obtained from management and from internal and
external assurance providers. PricewaterhouseCoopers Inc.
King Code on Corporate Governance 2016 (King IV), the JSE
audited our consolidated annual financial statements 2019 and
Listing Requirements, the South African Companies Act, No. 71
provided an unmodified opinion thereon. The extracts from the
of 2008, and the GRI’s Sustainability Reporting Standards. We
AFS in this Integrated report are from audited information but
have provided extracts from the consolidated annual financial
are not themselves audited. PricewaterhouseCoopers Inc. have
statements (AFS) in this report. The full set of AFS, as well as a
undertaken a limited assurance engagement on Scope 1 and 2
suite of additional reports, are available online or can be greenhouse gas emissions for South Africa that are reported in
requested from our Company Secretary. our Sustainability report 2019. Our Audit, Risk and Compliance
Committee provides internal assurance to the Board on an
Materiality annual basis on the execution of the combined assurance plan.
This report provides information on all those matters that we The Group’s financial, operating, compliance and risk
believe could substantively affect value creation at Vodacom. management controls are assessed by the Group’s internal
The process of identifying and prioritising the material matters audit function, which is overseen by the Audit, Risk and
for inclusion in this report involved reviewing: Vodacom’s business Compliance Committee.
Our reporting boundaries

Integrated reporting boundary Integrated report Sustainability report
Implications Outcome of National and Stakeholder

of the operating the internal risk global development interests considered
context assessments priorities include
(page 16) (page 22) (page 20) (page 18)
Government and regulators

Financial reporting boundary AFS Customers
Employees
Vodacom Group Investors & shareholders
Suppliers
Vodacom Vodacom Vodacom Vodacom Subsidiaries Associate – Investments Communities
Tanzania DRC Mozambique Lesotho Safaricom
Partners/ Franchisees
Media
Where we only have data for our South African operation (which represents 75.2% of service revenue and 82.3% of EBIT), we indicate this with (#). We’ve used (*)
to indicate normalised growth which presents performance on a comparable IAS 18 basis. This excludes merger and acquisition activity where applicable and
adjusting for trading foreign exchange and foreign currency fluctuation on a constant currency basis, using the current financial year as a base. Following the
cumulative retrospective adoption of IFRS 15: Revenue from Contracts with Customers on 1 April 2018, the Group’s results for the year ended 31 March 2019 are
on an IFRS 15 basis, whereas the results for the year ended 31 March 2018 are (as previously reported) on an IAS 18 basis. Comparisons between the two bases
of reporting are not meaningful and to ensure appropriate disclosure during the period of transition to IFRS 15, results for the year ended 31 March 2019 in this
report have been disclosed on an IAS 18 basis. Our commentary has been provided solely on an IAS 18 basis. Further disclosure is included in the Changes in
accounting policies and in Note 1: Segment analysis of the consolidated annual financial statements for the year ended 31 March 2019.
01
The value we impacted
Connecting people and enabling businesses are the main outcomes of the mobile and fixed
network services we offer. Communication improves quality of life, enables efficiency, connects
supply and demand, and supports the sharing of information and data between individuals and
businesses.
The mobile ecosystem continues to grow its contribution to economic growth and address social challenges through wider mobile reach
and better networks.
Financial results
+4.3% +6.0% –6.6% –2.5% +11.8%

Revenue Data revenue HEPS Total DPS Capital
expenditure
R90.1 R27.3 862cps 795cps
billion billion (+2.6% excl. BEE costs and R13.0
Safaricom acquisition) billion
For our customers
Extended our network

Extended our network population coverage
We reduced the in population
South Africacoverage in South Africa Extended deep rural
coverage to 240 sites
effective price (2018: 101) to some
per MB communities
23.3% 3G 4G that never had

coverage before.
240
In South Africa sites
DRC –29.2% 99.5% 90.4%

Lesotho –28.9% In our International operations we added:
Tanzania –13.8% 4G sites 3G sites 2G sites
Safaricom –42.0%
984 371 292
Obtained 4G licences and

Provided Net promoter score (NPS)
declined in Mozambique
4G spectrum in all our
entertainment
International operations
through video, We disconnected internet and SMS
services in the DRC as instructed by
music and gaming the authorities during their elections
platforms
Network outages due to the cyclones
in Mozambique
Network interruptions due to load
shedding in South Africa
R8.1 billion
airtime advanced to customers
5G in Lesotho, a first for Africa
02
In our societies
We enabled financial
inclusion to
36.1 million R20.1 8.5 Level 1
BEE contributor status in South Africa
M-Pesa customers billion million

(2018: 32.3 million (2018: R20.8 billion) customers R34.4 billion
customers) with cash contribution to (2018: 7.7 million) (2018: R30.8 billion)
11 billion public finances on our Siyakha platform weighted spend on
transactions worth promoting digital inclusion BEE-status suppliers
R2 trillion across our
M-Pesa network,
including Safaricom R153 million
(2018: R111 million)
spent on Corporate social investment (CSI)
For our employees
We paid Invested
R6.11 R544 Encouraging diversity in South Africa:
billion million 76.0%

(2018: R5.6 billion) (2018: R287 million)
of our employees are black
to our 7 746 (2018: 7 554) on skills development
employees 43.4%
of our employees are women
8%
64.0%
decline in Employee net
our of Executive Committee members
promoter score (eNPS)
are black
59.0%
of our senior managers are black
One fatality in our supplier network
1. Excludes staff expenses of R1 billion (2018: R821 million) capitalised against property, plant and equipment. Includes dividends of R52 million
(2018: R44 million) relating to forfeitable share plan offset against the forfeitable share plan reserve.
For providers of financial capital
R14.6 R3.0 R16.4 R3.3

billion
(2018: R14.0 billion)
billion
(2018: R2.8 billion)
billion
broad-based black
billion
special dividend
Total shareholder
return down
paid in dividends to paid in interest to economic empowerment to BEE
equity shareholders debt funders (BEE) deal making us the
most empowered telco
shareholders 22.4%
in South Africa
Vodacom Group Limited

Integrated report for the year ended 31 March 2019 03
We’re the first in the world to
Vodacom is launch a prepaid service.
awarded a licence
We switch on our network in Lesotho.
to operate a GSM
A record-breaking
cellular network rollout of the network
in South Africa. follows with at least Vodacom is granted a
two base stations GSM licence in
built every day.
Lesotho, our first The South African market
We officially switch outside South Africa. reaches the one-million
on our network. customer mark, 606 000
of whom are Vodacom
customers.
1993 1994 1995 1996 1997
25 years of 2008
empowering Vodacom Business is launched.
a connected Vodacom Tanzania

introduces M-Pesa.
society
We launch
Vodacom South Africa
announces its R7.5 billion the Vodacom
Foundation Mobile
BEE transaction, one of the largest Education
Broad-Based BEE transactions in programme.
Connected 9
the local industry. teacher centres
Vodafone increases its with technology
65%
shareholding to 65%. and connectivity.
2009 2010 2012 2013 2014
2011 We implement an
Vodacom
all-encompassing pricing
lists on the transformation, migrating
JSE. our customers on to
integrated and bundled
Vodacom’s
plans that provide greater
value for money.
We cover 99.8%
of the population
rebranding. in South Africa.
Youth academy rolled out
in nine teacher centres. Stock visibility solution
The year Vodacom is the rolled out to clinics.
voice behind Bafana Bafana. Launch Vodacom
e-School in partnership
First to launch LTE in SA. with the Department
of Education.
We launch MyVodacom app,
giving customers a range of
self-service capabilities.
04
We receive ISO 14001 We become the largest
certification for our mobile network We’re the first to cover 95% of the
environmental operator in Tanzania population in South Africa.
management system, within a year.
a first for mobile Vodacom Mozambique
operators. launches after a record
three-month network roll-out.
We launch commercial
operations in Tanzania.
Launch of prepaid
access to the Our network covers
Vodacom launches
internet, a world first. 92% of South Africans. in the DRC.
1998 1999 2000 2001 2002 2003
2007 2006 2005 2004
Vodacom Tanzania We launch the first We celebrate our first

launches 3G/HSDPA 3G HSDPA network in decade with well over
services, making Tanzania South Africa. 10 million customers
the second country in in South Africa.
Africa, after South Africa, to Vodafone increases its
get access to this high- shareholding to 50%. We build as many 3G Vodacom launches 3G
speed data technology. base stations in the in South Africa.
previous year as we’d
50% done in the first three
years of operation.
2015 2016 2017 2018 2019
First to launch LTE in

Lesotho. Launch 4G in Tanzania. Complete the largest
BEE transaction in
5G
Vodacom DRC rebranded
We complete our RAN from Blue to Red.
telecommunications sector.
renewal project. Launch 5G in Lesotho.
Launch Schools of
Our cumulative investment in Excellence. Launch 4G in the DRC and
our networks amounts to about Mozambique.
R70 billion since 1994.
Acquire 34.94%
shareholding in Safaricom.
List Vodacom Tanzania on the
Dar es Salaam Stock
Exchange.
Launch M-Pawa, the first
Launch the Female
savings and loans product
Farmers Training Programme
based on a mobile platform.
in Limpopo.

Where South Africa
we
Ownership 100%
Population1 (estimate) 58.1 million
GDP growth1 estimate 1.3%
operate
Customers 43.2 million
ARPU2 (local currency per month) R95
Licence expiry period 2029
Coverage4 99.9%
NPS 1st
Points of presence – formal5 9 135
Points of presence – informal5 61 877
Number of employees 5 197
Vodacom Business International7
Algeria Madagascar Tanzania
Angola Malawi Ownership 61.61%
Benin Malaysia
Botswana Mali Customers 14.1 million
Burkina Faso Mauritania ARPU2 (local currency per month) TZS6 027
Burundi Mauritius Licence expiry period 2031
Cameroon Morocco Coverage4 88.3%
NPS 1st
Cabo Verde Mozambique Points of presence – formal5 121 393
Central African Namibia Points of presence – informal5 18 174
Republic (CAR) Niger Number of employees 548
Chad Nigeria
Côte d’Ivoire Republic of Congo
Democratic Rwanda
DRC
Ownership 51%
Republic of Senegal
Congo (DRC) Sierra Leone GDP growth1 estimate 4.5%
Djibouti Singapore Customers 12.2 million
Egypt South Africa ARPU2 (local currency per month) US$3.0
Equatorial Guinea South Sudan Licence expiry period3 2021/2038
Coverage4 49.7%
Ethiopia Swaziland NPS 1st
France Tanzania Points of presence – formal5 24 770
Gabon Togo Points of presence – informal5 345 429
Gambia Tunisia Number of employees 573
Ghana Uganda
Kenya United Kingdom Mozambique
Lesotho Zambia
Ownership 85%
Liberia Zimbabwe Population1 (estimate) 31.4 million
Libya GDP growth1 estimate 3.7%
ARPU2 (local currency per month) MZN246
Coverage4 55.8%
NPS 2nd
Number of employees 551
Lesotho
Ownership 80%
ARPU2 (local currency per month) LSL66
Coverage4 98.5%
NPS 1st
Notes:
Number of employees 220
1. Bureau for Economic Research (BER) and the Economist Intelligence Unit (EIU).
gross domestic product (GDP) relates to real GDP growth.
2. Total average revenue per user (ARPU) is calculated by dividing the average monthly
service revenue by the average monthly active customers during the period. Safaricom
3. 2021 (VSAT licence), 2026 (wimax licence), 2028 (2G licence), 2032 (3G licence) Ownership 34.94%
and 2038 (4G licence).
4. 2G population coverage.
5. Formal points of presence include Vodacom owned and franchised shops, service GDP growth1 estimate 5.2%
providers and private outlets, retailers that purchase directly from Vodacom, M-Pesa Customers 31.8 million
agents and ATMs. Informal points of presence include super dealers, territory and ARPU2 (local currency per month) KES658
data dealers, street vendors/freelancers, informal resellers and virtual top ups. Licence expiry period6 2022/2026
6. 2022 (3G licence), 2024 (2G licence) and 2026 (4G licence). Coverage4 96.0%
7. The Group has entered into agreements to dispose of certain subsidiaries within the
Vodacom Business Africa group. The disposals are subject to regulatory approvals.
06
Our business
What
We have over 110 million1 active individual customers using our wide range of products and
services. Our core consumer products and services include voice, data, messaging and
financial services across mobile and fixed networks. We are continuing to transform and
we offer expand into new verticals including financial services, self-service care and entertainment
offerings. We also provide various communication solutions to our enterprise customers in
the public sector, and amongst large, medium and small enterprises; these include
connectivity and unified communication services, cloud and hosting, managed mobility,
data security and the Internet of Things (IoT).
Our products and services (outputs)
Consumer Enterprise Consumer

products services
Voice Unified communications Financial and digital
Mobile Voice services
Fixed Messaging M-Pesa
Video M-Pawa
Data
Insurance
Mobile broadband Cloud and hosting
mHealth
Mobile internet Connectivity mAgriculture
Fixed Airtime Advance
Wireless
Fibre Savings
Fixed
Messaging Mobile Self-service care
SMS and MMS Fibre
MyVodacom app
Managed mobility Vodacom online
Internet of Things (IoT) Unstructured Supplementary
Service Data (USSD) self-help
Security
Entertainment
Managed services
Music streaming
Mezzanine
Video entertainment
XLink
Gaming
Stortech
Sports
6 7
5
4 Group service revenue
■ 2019 ■ 2018
3 1 Mobile voice 43% 44%
1 2 Group customer service revenue
2 Mobile data 37% 37%
■ 2019 ■ 2018
3 Fixed service revenue 6% 5%
1 1 Mobile prepaid revenue 61% 59%
2 4 Mobile interconnect 4% 4% 2 Mobile contract revenue 39% 41%
5 Mobile messaging 3% 4%
6 M-Pesa 4% 3%
7 Other service revenue 3% 3%
Our promise to customers

Network Great network. Great experience.
Quality Available anytime, anywhere, first time right.
Value Always have the best experience, value for money.
Customers (million) Revenue (million)

2019 43.2 2019 71 325
South Africa South Africa (R)
2018 41.6 2018 69 967
2019 14.1 2019 1 023 763
Tanzania Tanzania (TZS)
2018 12.9 2018 977 994
2019 12.2 2019 473
DRC 2018
DRC (US$) 2018 428
11.8
2019 6.8 2019 21 111
Mozambique Mozambique (MZN)
2018 6.1 2018 17 635
2019 1.5 2019 1 308
Lesotho 2018 1.4
Lesotho (LSL) 2018 1 255
2019 31.9 2019 250 960

Safaricom2 Safaricom2 (KES) 2018
2018 29.6 156 146
1. Including our associate holding of 34.94% in Safaricom.
2. The Group’s effective interest of 34.94% in Safaricom Plc is accounted for as an investment in associate. Results represent 100% of Safaricom and are for
illustrative purposes only. Prior year results represent eight months of performance from the date of acquisition.

Chairman’s
statement
Phillip Jabulani Moleketi
Since launching as a mobile network provider in South Africa
As a leading African mobile 25 years ago, Vodacom has demonstrated its ability to adapt
network operator, Vodacom rapidly and effectively to the changing operating context. In doing
so, it has delivered significant positive social impact – through its
is operating in a very dynamic activities in expanding voice and digital connectivity, its services in
sector and region at a inclusive finance, education, health and agriculture, and its evident
commitment to promoting black economic empowerment in
particularly interesting time. South Africa. I believe that the Company’s past successes provide
We are seeing rapid changes a valuable indication of its potential to deliver value into the next
25 years.
in technologies, consumer
behaviour and markets, Our International operations
It has been pleasing to see the exceptional performance this year
and growing expectations throughout our International operations, which achieved strong
for businesses to deliver customer and revenue growth off the back of a generally more
stable operating environment. This performance has been
a social purpose. underpinned by the continued success of the M-Pesa financial
services offering and particularly strong growth in data revenue.
The ongoing expansion of the successful M-Pesa ecosystem to
include new services and a strengthened merchant and
distribution network, coupled with the significant upside potential
to monetise data, present exciting opportunities for further
growth. This potential is supported by Vodacom’s existing and
expanding network, its differentiated product offerings and strong
brand, and a growing portfolio in the Enterprise space. This year,
the Company continued to make substantial investment in
expanding network coverage and improving network performance,
including specifically in rural areas across its markets. It was the
first operator to launch 4G in Mozambique and the DRC, and the
first to introduce 5G in Africa and one of the first globally, following
its pioneering launch in Lesotho.
Offsetting this generally strong performance was the concerning
development at the end of the financial year, when several
executives of Vodacom Tanzania were arrested and detained
following a customer’s alleged illegal use of network facilities.
After pleading guilty to the offences of occasioning pecuniary loss
to a specified authority and permitting the use of network services
in contravention of the Electronic and Postal Communications
Act, Vodacom secured the release of the employees, paying
TZS5.2 billion (US$2.3 million) to the regulator as compensation
for the financial losses incurred, including a fine. In line with
Vodacom’s legal and corporate governance principles, and to
safeguard Vodacom Tanzania from potential future risks, we have
retained a global law firm to assist with a comprehensive internal
investigation into the underlying facts. Vodacom Tanzania’s Board
and executive team acted swiftly and appropriately in responding
to this development, and they are continuing to cooperate closely
with the authorities on this matter.
Another challenge we faced this year in our International markets
was the devastating impact of Cyclone Idai in Mozambique in
08
Our business
March 2019. I was heartened by the nature and pace of Vodacom’s Governance and strategy
response, with the Company restoring communication services Following the resignation in December 2018 of Thoko Martha
as quickly as possible and free-rating calls during the height of Mokgosi-Mwantembe as an independent non-executive director,
the crisis, both of which assisted with aid relief efforts. Together we have been joined on the Board by Phuti Mahanyele-
with Vodacom and Vodafone’s donation of US$1 million to aid in Dabengwa. Phuti served previously on the Board from May 2009
restoring roofs on schools to ensure education is least disturbed, to September 2011 and was re-appointed in January 2019.
this reflects Vodacom’s commitment to addressing societal We were also pleased to welcome new non-executive directors
challenges through its core business activities and corporate representing Vodafone, with Sunil Sood joining the Board
social investments. in July 2018 and Thomas Reisten joining in January 2019.
South Africa The Vodacom Group Board is well supported in our oversight
function by each of the Boards in our different International
In South Africa, our largest market, macroeconomic uncertainty
markets. These Boards each bring the depth in expertise and
and a sluggish economy have dented business, investor and
diversity in experience needed to ensure good governance and
consumer confidence. While we have seen some encouraging
developments at a political and policy level, with Government’s to provide effective oversight of the Group’s performance and
stated commitment to tackle corruption and stimulate investment, strategic direction.
the country still faces some deep challenges. The recent electricity A recent external assessment of the Board found that we have
load-shedding – which had a negative impact on the national a well-functioning board with a good balance of skills and
economy and posed particular challenges for our network – was a experience, as well as an appropriate balance between independent
sobering reminder of some of the hurdles that lie ahead. I am non-executive directors and Vodafone representatives.
hopeful, however, that the recent national elections will provide
sufficient mandate to drive the necessary changes to restore Outlook
business and investor confidence. This year, the Board once again undertook a comprehensive
Given the significant economic pressure on consumers, and the review of Vodacom’s strategy, during a dedicated two-day
understandable regulatory drive to protect consumer interests, discussion in which we engaged directly with the Vodacom
Vodacom has undertaken various initiatives this year to bring executives, as well with individual employees involved in
down data prices as part of its pricing transformation strategy. developing and executing specific elements of the strategy.
Vodacom is firmly committed to accelerating socioeconomic This engagement, supported by detailed preparatory work,
development in the country by broadening access to affordable enabled us to deepen our understanding of the strategy and to
voice and data services. For this potential to be realised, however, engage critically with the executive team. In our discussions,
it is critical that we have a regulatory and policy framework that the Board once again emphasised the importance of striking the
encourages long-term investment in network infrastructure, and right balance between investing money and effort in potentially
that provides the access to spectrum needed to increase radical new opportunities and at the same time retaining market
connectivity and bring down prices. leadership in its current core activities.
A pleasing development this year was Vodacom’s R16.4 billion BEE Vodacom’s ambition is to transform the business from a
transaction, the largest-ever such deal in the telecommunications conventional telco into a digital company that plays a leading
sector, and evidence of Vodacom’s strong commitment to driving role in the fourth industrial revolution. I am confident that
transformation in South Africa. The deal generated significant Vodacom will deliver on this ambition by protecting and growing
value for YeboYethu shareholders through a special dividend its existing activities, while diversifying into exciting new business
payment, as well as providing holders with the opportunity to opportunities in the digital arena. Vodacom has made valuable
remain invested in the full Vodacom Group, allowing exposure to strides this year in developing and acquiring the necessary digital
the benefits of the Group’s International operations and stake in skills – including in areas such as Big Data analytics and Artificial
Safaricom. The transaction contributed to Vodacom South Africa Intelligence – and it continues to invest significantly in the
successfully achieving a Level 1 BEE status, up from Level 3 last networks, technologies and organisational culture needed to
year, and reflects Vodacom’s long-standing recognised leadership deepen its people-centred customer focus and to deliver the
in promoting employment equity, supplier and skills development, required innovation. Its strategic ambitions are informed by its
retail transformation, and social investment. drive to be a purpose-led company, ‘connecting for a better
This year, Vodacom was subject to some negative press and future’ by playing a meaningful role in promoting socioeconomic
social media attention, as well as a public protest outside its transformation in all its markets. It will do so by delivering on its
head office, relating to the long-standing litigation process with commitments to promoting digital inclusion, providing innovative
a former employee, Mr Nkosana Makate, and the ‘Please Call Me’ digital services, and reducing its environmental impact.
messaging service. The Board has been actively engaged in
monitoring developments on this issue. We believe Vodacom Thanks
has complied fully with both the letter and the spirit of the Lastly, I wish to express my appreciation to all of Vodacom’s
Constitutional Court order, and that it demonstrated good faith employees, the executive team and the Board for their collective
throughout the recent negotiations. Vodacom has agreed to pay contribution to the Group’s continuing strong performance.
the amount set as reasonable compensation by the CEO, in I would like also to thank our business partners, shareholders and
accordance with the order. Vodacom has subsequently been other stakeholders for their ongoing engagement and support.
informed by Mr Makate’s attorneys that he intends to have the I believe that the Group has the right people, strategy and culture
CEO’s determination judicially reviewed. to deliver on its ambitions of becoming a leading digital company
that plays a meaningful developmental role in the markets in
Safaricom which it operates.
Our investment in Safaricom is delivering on the desired result of
diversifying our portfolio. We are leveraging the strengths of
each operation and accelerating on growth opportunities, such
as, Safaricom’s leading M-Pesa position and expanding Phillip Jabulani Moleketi
Vodacom’s abilities in Big Data and Artificial Intelligence across Chairman
all of our operations. 31 May 2019

CEO’s
statement
Shameel Aziz Joosub
This has been a pleasing year for A particular highlight this year was the successful conclusion
of our BEE ownership deal, the country’s largest-ever BEE
the Group, in which we achieved a transaction in the telecommunications sector, valued at
good set of financial results and R16.4 billion. The mutually beneficial deal resulted in
Vodacom having an effective black ownership of 29.6% and
solid growth rates despite a tough securing a Level 1 BEE status, an achievement that I am
year of increased competition and particularly proud of, and a key consideration for spectrum
allocation, government contracts and corporate business.
challenging economic conditions.
On 1 March 2019, the regulator’s End User and Subscriber
Our financial results reflect Service Charter (EUSSC) became effective in South Africa,
strong execution of our digital introducing new measures relating to out-of-bundle
notification and pricing. We went a step further in
strategy and effective delivery of implementing these regulations by reducing out-of-bundle
our core purpose, connecting rates by an added 50%. These regulations, together with the
out-of-bundle cut, have the effect of giving R2.0 billion back
people for a better future. to customers over the next year.
The financial impacts of delivering on our promise of further
reducing the cost to communicate in South Africa, combined
with the costs associated with concluding our new BEE deal,
mask an otherwise solid operational performance for
the Group, where revenue grew by 4.3%, led by strong
performance in our International portfolio, offset by
a slowdown in South Africa.
South Africa
South Africa delivered a satisfactory performance in the
context of low economic growth placing pressure on
consumer spend, ongoing and deliberate transformation in
data pricing and strengthened competition in both consumer
and prepaid segments. Despite these factors, and our
concerted effort to assist cash-strapped consumers through
lower prices, service revenue in South Africa rose by 2.1%.
Growth in the second half of the year was negatively impacted
by the transition between national roaming partners and the
change in call termination rates.
Data revenue grew 3.9% to R24.3 billion, contributing 43.5%
to service revenue. The growth was impacted by our
deliberate pricing transformation programme, in addition to
implementing the Independent Communications Authority of
South Africa (ICASA) regulations, we cut out-of-bundle rates
by a further 50%, effectively reducing the effective rates by
37.3% in the March month comparison. We have migrated
75% of our consumer customers to smart integrated plus
plans offering more than double the value, mostly in data.
On the mobile broadband offerings, we have reduced tariffs
on the big data offerings by 40% to compete effectively in
the market, which delivered a requisite 40% elasticity to offset
these cuts. Data bundle purchases have increased 13.1% to
866 million, as more affordable data bundles with shorter
10
Our business
validity periods are available for customers. Overall, data usage Outlook
drivers were encouraging: data traffic was up 35.6%; active smart Looking ahead, we will continue to drive our ambitions
devices on the network were up 7.6% to 19.9 million, of which aggressively in our digital transformation journey by branching out
10 million are 4G devices; and average usage on these smart into new verticals, through partnerships, acquisitions or building
devices has improved 23.2% to 966MB. our own capabilities. Our strategy positions Vodacom to be a
Our platform strategy, designed to stimulate reasons to consume significant contributor to the fourth Industrial Revolution, as we
data, is gaining momentum. Take up of the Video Play service transition from a traditional telco to a fully-fledged digital services
is encouraging, with 869 000 active users on the platform. Our company. We are already leading in the implementation of Big
recently launched music platform, My Muze, is also showing Data, Artificial Intelligence and Robotic Process Automation,
encouraging initial take up, while our gaming platform, Play Inc., which is enabling us to optimise revenue, operate more efficiently
was commercially launched in May 2019. and maximise our investment returns, laying a strong foundation
for significant further growth.
Our Enterprise business has delivered good growth, with service
revenue up 4.8% to R14.7 billion. Our fixed-line service revenue We are placing a particular focus on developing and expanding our
increased 24.7%, underpinned by solid growth in connectivity, financial services proposition in South Africa, as well as our M-Pesa
cloud and hosting and IPVPN revenues. mobile money and related offerings in our International operations
and Safaricom, entrenching our leadership in mobile money and
Our strategic focus on financial services delivered standout making a substantive contribution to economic development and
performance, growing revenue by 67.1% to R1.6 billion, with a upliftment across the region. We will also be driving uptake of our
profit before tax of R1 billion. The Airtime Advance service digital services platform, including Vodacom live, video, music
revealed a remarkable R8.1 billion value of advances this financial and gaming.
year. Having recently launched a new payment gateway that is in
the process of being commercialised, we are confident that this As we grow our Enterprise business, we will be forming strategic
will contribute to sustaining further growth from our Financial partnerships to deliver integrated solutions, strengthening our
services businesses. offerings in IoT and Enterprise services, expanding our customer value
propositions, and driving data growth and new revenue streams. To
Our capital expenditure of R9.6 billion was utilised to drive our accelerate the IoT opportunity we are in the process of acquiring
strategy of being the leading digital telco. We spent R2 billion IoT.nxt, a large systems and edge computing integrator. We have also
on IT during the year, as part of our focus on becoming smarter entered into a strategic collaboration agreement with Amazon Web
and more agile in delivering products to our customers. Services (AWS). AWS will be our primary cloud provider while we
We delivered substantial cost savings through the introduction build an AWS centre of excellence, which will ultimately help us
of digital technologies for smart planning, smart deployment to sell Cloud-based technology, as we move to providing
and smart operations. solutions-based services.
International In South Africa, we will continue to transform data pricing for the
It was an outstanding year for our International portfolio, where benefit of our customers, which will create short-term pressure on
stable economic and political environments in all these markets data revenue growth. The underlying demand, however, remains
supported a return to double-digit growth of 15.6% in service strong and we anticipate a recovery in growth to start
revenue, with strong margin expansion of 3.1ppts. We also saw good materialising in the second half of the new financial year.
customer growth, adding 2.2 million customers in the year, up 6.8%. On the regulatory front, I am encouraged by the Minister’s recent
Data revenue grew strongly at 25.8%, supported by the rollout of withdrawal of the Electronic Communications Act Amendment Bill
4G services which are now available in all our operations. We have and look forward to continued engagement on the licensing of
started rolling out content services in all our operations and high-demand spectrum.
continue to provide personalised pricing through our ‘Just 4 You’ A key focus in the year ahead will be to strengthen our
platform. commitment to be purpose-led. We will continue focusing on our
M-Pesa continues to deliver on its promise of providing financial purpose of connecting for a better future by delivering in our
inclusion and making a significant contribution to economic three key focus areas: inclusion for all, digital society and planet.
development. M-Pesa revenue grew by 32.2%, contributing 15.8% We will be maintaining a strong drive on promoting digital
to service revenue. We have further expanded the ecosystems to inclusion, through our work in further expanding rural coverage
include more services such as micro loans and merchant payment and the availability of affordable smart devices, our initiatives to
systems, as well as securing additional interconnection with banks democratise education and empower women and youth, and our
and other operators. innovative digital offerings on health, agriculture, government and
financial inclusion. Accompanied by our investment in climate-
This year we were awarded a 4G licence in the DRC, while in smart networks and solutions, waste reduction and water-wise
Mozambique we unified and renewed our licences for 20 years practices, collectively these initiatives will make a valuable
and acquired additional spectrum. In Tanzania we acquired contribution to national and global development objectives,
additional 4G spectrum, which will assist us in delivering on our including the UN Sustainable Development Goals.
strategic data ambitions.
In closing, I would like to thank the Board and Exco members
Safaricom for their support over the past financial year, and Vodacom’s
Safaricom delivered strong growth with net profit increasing 14.7% employees across the Group for their contribution to our strong
for the year, supported by strong growth in data and M-Pesa performance. I look forward to another successful year, working
revenues, and a 7.7% increase in customers to 31.9 million. together to deliver on our core purpose: connecting for a
Vodacom’s portion of the profit contribution was R2.8 billion for better future.
the year. Safaricom proposed both a normal dividend of
KES50.08 billion and a special dividend of KES24.84 billion,
Vodacom’s share of which will be R2.3 billion and R1.1 billion net
of withholding tax.
Shameel Aziz Joosub
Chief Executive Officer
31 May 2019

Our business model
What we do
We secure access to spectrum, invest in mobile and fixed networks and information
technology (IT), develop and distribute products and services tailored to our market
segments, and run a strong customer care and brand programme.
These activities enable us to ensure revenue growth and high levels of cash generation, which is used to reinvest in the resources
and relationships we rely on to do business, and to deliver on our core purpose: connecting for a better future.
Our value chain activities

Spectrum, network and IT infrastructure Customer service
Most of our communication services depend on accessing spectrum, Providing the best customer experience is a strategic
which we strive to secure at a competitive price though proactive priority and an important source of market differentiation.
engagement with government and regulators. As part of our 2020 We are constantly deepening our understanding of
vision, we are building on our substantial investment in network customers and their needs to provide targeted
infrastructure by expanding into fixed broadband assets (cable and product and service offerings. Our ambition is
fibre), and investing in IT services, Big Data and analytics, to provide exceptional customer service
digital services, financial services, customer relationship through a seamless, personalised, one-channel,
capability, billing, and online resources. We leverage our digital customer experience.
IT infrastructure to become agile and smarter in
deploying products and services, and to ensure
customer care.
Sales and distribution
We use various sales and distribution channels including
wholesale distributors, retailers, franchise stores, direct
Procurement activities sales partners, street vendors, informal resellers and
To manage our significant supplier landscape, we leverage off the online channels. Our aftersales value chain of Vodacom
global purchasing power and responsible procurement practices of repair centres and regional repair hubs has
the Vodafone Procurement Company, enabling the purchase of positioned us as market leaders in the
responsibly manufactured network equipment, handsets and other aftersales community. Through container
services on favourable terms. We balance the shops and informal traders, we provide
benefits of global purchasing with our important opportunities for small-scale
commitment to promoting economic entrepreneurial businesses.
opportunities in our host countries and driving
BEE in South Africa.
Managing our brand and reputation
Product and service development We build a brand with purpose, developing and
maintaining a reputation as a company that is ‘connecting
We are constantly developing new products, services and pricing for a better future’, and that shows leadership in
models, informed by our segmented customer approach that caters promoting broad-based societal transformation. We
for each customer’s needs, wants and behaviours in both the communicate our service offerings and maintain our
Consumer and Enterprise markets. We place a strong emphasis on brand presence through our marketing and brand
protecting customer privacy, and mitigating the risk of data theft or strategy. External Reputation surveys show that the
loss. We are implementing the ‘agile’ methodology across Vodacom brand is consistently one of the most
various departments to ensure we respond faster in a recognised and trusted
constantly changing environment. We harness the power brands across our
Connecting for a better
of Big Data to deliver personalised offers to our customers. footprint. future
Our investment case We have a leading network and strong brand presence in each of our markets.
Each market has a young, growing population offering significant opportunity for further
Despite the current strong drive to reduce digital adoption, in both the Consumer and Enterprise segments.
the price of voice and data services, we We have a demonstrated reputation for strong management execution and capital
continue to see significant opportunity for allocation, delivering best-in-class return on capital employed (ROCE).
sustained revenue growth – by protecting We have a strong balance sheet and good cash flow generation to support further
and growing our traditional service of voice, investment.
data and messaging across our core The global shift to digital is presenting significant market opportunities for telcos.
markets, and by driving new digitally-based We are globally recognised for our leadership in providing mobile financial services and
verticals including financial services, innovative digital services in an emerging market context.
entertainment and fibre, building on our We have a demonstrated capacity to embrace Big Data and machine learning to drive
existing well-established differentiators. revenue growth.
12
Our business
Key revenue differentiators

Consistent investment in infrastructure Group service revenue composition
resulting in being rated first in network
quality in three of our five countries of 2
operation.
Industry-leading customer value
management systems, people and
+5.0%
processes. increase
A diverse and widespread distribution in service
network across all our operations. revenue
Effective use of Big Data for personalised
offers to customers to better suit their
needs and behaviours. 1
Competitive and compelling product
offerings targeted by segment.
Ability to offer vertically integrated ■ 2019 ■ 2018
solutions. 1 Consumer service
M-Pesa, Africa’s largest mobile payment revenue 77% 77%
2 Enterprise service
platform. revenue 23% 23%
Leveraging off global enterprise
relationships for pan-African service
delivery.
Best-in-class customer service support
systems.
Ability to leverage off our relationship with
Vodafone, driving global best practice in
How we performance.
create value Our revenue

Most of our revenue comes from selling mobile data, voice, financial services and
Our profit formula messaging services to individual consumers, with the balance coming from the sale of
We generate profit by these mobile services, coupled with connectivity and network provision services to our
Enterprise customers. The decline in mobile voice revenue has been more than offset by
efficiently utilising mobile significant growth in data revenue, fuelled by the increased uptake of smart devices,
and fixed line assets to provide improved network coverage, more affordable data bundles and enhanced digital content.
our Consumer and Enterprise
Our Vision 2020 strategy aims to diversify these revenue streams even further in key
customers with voice, data, verticals such as financial services, IoT, digital services and Enterprise.
messaging and related services.
Our competitive differentiation
lies in the quality of our network
premised on strong investment, Our costs
our strong distribution channels We have a strong track record of optimising expenses and converting revenue into cash
in each market, the nature of flow. We have achieved significant results in limiting cost growth through our ‘Fit for
our products and services, the growth’ programme, driving efficiencies in staff expenses, publicity spend and other
operating expenses through a strong culture of cost containment across the business.
extent of our regional We are embracing new technologies and in many ways are pioneering the use of Robotic
footprint, the quality Process Automation (RPA), Big Data, and Artificial Intelligence (AI) to optimise costs.
of the relationships we have Our resulting strong cash flow helps us to maintain a high level of capital reinvestment
to maintain a leading position in network coverage, call quality and data speed in our
with key stakeholders, markets. In addition to investing in the future of the business, cash generated from our
our proven ability to activities allows us to maintain our shareholder returns, with our dividend policy of at
manage our cost base least 90% of adjusted headline earnings.
and the strength of
our brand. Group total expenses composition
Key cost differentiators
Leveraging global best practice on cost
optimisation through our ‘Fit for growth’
programme where we benefit from and +5.2%
share best practice with Vodafone. increase
Leading in use of RPA, Big Data and AI in total
expenses
to optimise costs.
Benefiting from the purchasing power of
Vodafone Procurement Company.
Consistent investment in network,
delivering continuous improvement in
operating costs through more efficient 2019 2018
technologies and network innovation. ■ Direct expenses 62% 63%
Robust governance processes for ■ Other opex 24% 23%
approving investments and reviewing ■ Staff expenses 11% 10%
product, cost and investment decisions. ■ Publicity expenses 3% 4%

Our business model continued
How we sustain value

Investing in the resources and relationships impacting value
PG 42
People, culture and governance (Human and intellectual capital)
Key inputs Activities to sustain value Outcomes (2019)

7 746 (2018: 7 554) employees. Competitive remuneration and Maintained employee motivation, skills and
personal development diversity through:
Experienced and diverse executive
opportunities.
team and strong Board. R6.1 billion (2018: R5.6 billion) invested
R544 million (2018: R287 million)
in wages and benefits1.
An agile, performance-based, invested in employee training and
76% black and 43.4% female
purpose-led company culture. leadership development, including
representation in the South African
upskilling employees for digital
Robust governance systems. workforce.
transformation.
Service providers delivering on Implemented agile business Evidence of staff satisfaction:
agreed terms. processes across business units. Top Employer in all markets and leader
Strong focus on diversity. in the ICT/Telecoms sector.
Maintained drive on building our 8% voluntary staff turnover (2018: 9%).
reputation as a quality employer. 78% staff Engagement index.
Impacts on safety:
One contractor fatality (2018: 3).
Trade-offs: Investing in attracting, retaining and developing the best talent is one of the most
significant costs to our business, impacting short-term financial capital, but generating
Underperformed on eNPS.
longer-term returns in all capital stocks. Our commitment to driving a digital company, and Lost-time injury frequency rate 0.07.
effectively harnessing the role of AI and Big Data, may result in pressure on some existing
traditional job functions, with new opportunities in new roles.
PG 18
Quality relationships with key stakeholders (Social and relationship capital)

77.8 million (2018: 74.0 million) Continued investment in ensuring Strong customer relations:
customers. network and IT quality, strong Leader in customer net promoter score
positive customer experience, and (NPS) in four out of five markets.
onstructive engagement with
C
segmented products and services. Increase in customers across markets.
regulators.
Engaged actively with regulators, Some customer issues remain (page 18).
Investor confidence. pursuing full compliance and driving
a societal contribution. Generally positive government relations,
Positive supplier relationship. aided for example by:
Regular investor communication.
Trusted brand and reputation. Delivering societal value through R20.1 billion total cash contribution to
connectivity and digital services in public finances.
areas such as inclusive financial R16.4 billion BEE deal.
services, education, health and R8.1 billion airtime advanced to
agriculture. customers.
Strong governance processes. Enabled financial inclusion through
New BEE deal. 13.5 million M-Pesa customers.
Partnering with governments Disappointing third quarter.
through our foundation to help with
societal issues, especially education.
Trade-offs: Maintaining quality relationships across all stakeholders may require trade-offs in certain relationships as we balance sometimes competing
stakeholder interests. Investing in social capital often requires short- and medium-term financial capital inputs, but generally generates positive return across
most capitals over the longer-term.
1. Excludes staff expenses of R1 billion (2018: R821 million) capitalised against property, plant and equipment. Includes dividends of R52 million (2018: R44 million) relating to
forfeitable share plan offset against the forfeitable share plan reserve.
14
Our business
PG 38
Network and IT infrastructure (Manufactured capital)

21 432 (2018: 20 139) base Maintaining our network and IT Positive results in most areas
stations (+6.4%). leadership through targeted investment. 1 272 new 2G sites.
Enabling 2G, 3G and 4G on the same 1 505 new 3G sites.
South Africa 94.0% (2018: 91.9%),
network equipment through radio 3 489 new 4G sites.
International 91.5% (2018: 87.5%)
access network modernisation 81 239# (2018: 54 247#) fibre end
self-provided fibre and microwave
programmes. points passed.
connections.
Further developing systems and process Smarter deployment through use of
R13.0 billion (R11.6 billion) to enable Big Data analytics. Big Data.
invested in strengthening network. Acquired spectrum in Mozambique
and Tanzania.
#1 in SA – Gartner IT4C benchmark.
Trade-offs: Investing in building and maintaining our infrastructure requires significant financial capital, Rated first for network quality
and appropriate levels of human and intellectual capital, as well as certain natural capital inputs and
in three of five markets in
outcomes. An extensive network is a key basis for bridging the digital divide and sharing the
substantial social benefits of digital connectivity. As a purpose-led organisation we have committed to network NPS.
reducing the environmental impacts associated with our network infrastructure and services. No spectrum allocation in South Africa.
PG 50
Financial capital

R205 billion (2018: R263 billion) Diversifying revenue growth areas. Revenue up 4.3% to R90.1 billion.
market capitalisation ( 22.1%). Employing smart capex deployments. EBITDA up 2.4% to R33.7 billion.
Driving ‘Fit for growth’ cost programme. Cash generated from operations:
0.7 times (2018: 0.6 times) net
Maintaining strong corporate governance R34.6 billion (2018: R32.3 billion).
debt to EBITDA ratio to execute
structures and finance team. R3.0 billion (2018: R2.8 billion) paid
growth.
Realising benefits of purchasing power to debt funders in interest.
R14.9 billion (2018: R14.2 billion) on network equipment, devices and Total dividend declared R14.6 billion
free cash flow ( 4.7%). operating expenditure through the (2018: R14.0 billion) up 4%.
Vodafone Procurement Company. Total dividend per share declared:
630 million (2018: R703 million)
R
Leading in application of Big Data and AI 795 cents (2018: 815 cents).
interest earned ( 10.4%)
to increase revenue and optimise costs. Headline earnings per share:
862 cents (2018: 923 cents).
Trade-offs: There is an important trade-off between the short-term interests of certain investors and other interest groups that seek to maximise short-term
gains in financial capital, with our longer-term growth objectives that require investment of financial capital. Finding the right balance in these trade-offs
between the short term and long term – and in different associated stakeholder interests – is a key focus in our strategic decision-making.
Sustainability
report
Natural resources (Natural capital)

Radio spectrum (700, 800, 900, Strong focus on energy efficiency of our 353 tonnes (2018: 349 tonnes) of
1 800, 2 100, 2 300, 2 600 MHz network. e-waste recycled.
bands). Identify opportunities to use IoT to 955 (2018: 871) solar-operated
promote resource efficiency through sites.
25 GWh (2018: 501 GWh)
5
smart metering. 640 926 tonnes
electricity ( 4.8%).
Recycling handsets and network (2018: 628 457 tonnes) of
164 410 kl (2018: 201 516 kl) equipment. CO2 emissions (Scope 1,2,3)
of water# ( 19.2%). Increasing solar-operated sites. 2.0% increase.
4 134 555 litres (2018: 3 910 892)
of fuel# ( 5.7%).
Trade-offs: Using and impacting natural resources – which also sometimes negatively affect human and social capital – is a key trade-off for generating value
across the other capitals. As part of being a purpose-led company we are committed to minimising the environmental impacts of our operations and
activities, and to realising the significant potential for digital products and services to deliver positive environmental outcomes.
# South Africa only. Vodacom Group Limited
Our operating environment
Responding to a dynamic operating context
As an ICT company with operations and activities across emerging markets in Africa, we face a
particularly dynamic operating context that presents some challenging risks as well as valuable
opportunities. We have identified four broad trends over the year that have a material impact on
our business model. Our Vision 2020 strategy has been developed to ensure that we are best
positioned to seize the opportunities and mitigate the risks associated with each of these trends.
Challenging macroeconomic context Digital innovation disrupting business

placing pressure on consumers models
South Africa The transition to the ‘Fourth Industrial Revolution’
– characterised by recent rapid developments in
Lacklustre GDP growth and continuing rand/dollar volatility,
AI, Big Data analytics and blockchain technology,
with an uncertain investment outlook.
as well as the growth in the Internet of Things,
Load-shedding compounds concerns on the anticipated cost
connected homes and autonomous vehicles – is
of bailing out state-owned enterprises.
challenging many traditional business models,
Subdued business confidence, with uncertainty on elections
presenting significant risks and exciting
and key government policy issues.
opportunities, in particular for ICT companies.
Consumer spending constrained by low wage growth,
unemployment, fuel price increases and high debt. Digital connectivity and social media is changing
consumer behaviour, and informing and enabling
International operations more activist, digitally savvy consumers.
Generally subdued economic growth with most markets This is being accompanied by the increasing
experiencing currency depreciation and inflation. uptake of smart devices, improved networks
Mobile network operators (MNOs) continue to face increasing (including 5G) and new digital content and
tax and regulatory pressure. services.
Political volatility remains a concern across much of the region.
Driving digital inclusion through enhanced rural coverage, We are redefining the business as a leading digital
Our strategic response
low-cost smartphones and affordable platforms (such company by:

as Siyakha). Developing innovative digital services and enhanced
Providing segmented products and services, with appropriate customer platforms to increase engagement.
pricing strategies. Rethinking our future networks and technology.
Developing inclusive digital services such as M-Pesa mobile Fostering an agile digitally-driven company culture
money. that attracts the best talent.
Maintaining a strong drive on cost efficiency and ‘smart capex’. Exploring opportunities to drive positive societal
Targeted offers to give more value to customers, especially in change in financial services, enterprise, education,
low-income areas. healthcare and agriculture.
Risk Risk
Unstable economic and market conditions. Market disruption.
Adverse regulatory and political pressures. Strategy execution in fibre and convergence.
Strategy Strategy
Global market Global market

% of connections*% of connections* Internet of Things
43%
9.1 25.2
4G 59%
billion billion
2018 Total connections 2025
2018 2025
5G
1.4 billion 2025
15% of
connections*
*Excluding cellular IoT
Source: GSMA Intelligence, The mobile economy 2018 Source: GSMA Intelligence, The mobile economy 2018
16
Our business
Best customer Segmented Financial Digital content Best Digital organisation Our brand and
experience propositions services platforms technology and culture reputation
An increasingly dynamic competitive Regulatory challenges

landscape We continue to face regulatory challenges across our markets, with important
Competing MNOs in our markets are increasingly implications for revenue growth, product pricing and cost efficiency. Key regulatory
seeking differentiation through significant issues by market include:
investment in networks, sometimes aggressive South Africa: The timing and nature of the licensing of spectrum; and the
price plays, the provision of targeted customer outcome and impact of ICASA’s Priority Market Review into mobile broadband
propositions, and/or new digital offerings. services and the Competition Commission’s inquiry into the data service market.
There is heightened competition in our largest We anticipate continued pressure to further lower data prices.
market, South Africa, with MTN closing the network Tanzania: Implications of the drive for biometric-based SIM registration

gap, Telkom gaining momentum in mobile through integrated with the National Identification Agency system; draft regulations
aggressive data propositions, and Rain entering the on cost-based pricing on tariffs and promotions; ensuring compliance with
consumer market; we anticipate consolidation in the quality of service regulations; and the outcome of the review of mobile
over-traded fibre sector, and new global Cloud termination rates.
entrants in the Enterprise space. DRC: Uncertainty on the timing and final nature of the Communications Bill
Over-the-top (OTT) services (such as WhatsApp) introducing changes to licence regimes; 2G licence dispute; implications of
are prevalent in all our markets; while they have national security and customer SIM registration regulations; potential new taxes.
the effect of driving up data revenue, they also Mozambique: The introduction by the Central Bank of mobile money
negatively impact messaging and voice revenue. interoperability; and the implications of national security and biometric
As we move to become a digital company, we face customer SIM registration regulations.
increased competition, for customers and talent, Lesotho: Ensuring compliance with quality of service regulations; anticipated
from various non-traditional sources relating to the introduction of customer SIM registration regulations; and proposed
provision of technology, networks and infrastructure, promulgation of cyber security regulations.
as well as the development and distribution of new
digital products and services. Further details are provided in our Regulatory report at www.vodacom.com.
Harnessing digital to drive clear competitive Striving to maintain proactive relations with government, informed by a
Our strategic response
differentiation in product offerings. shared understanding of the need for inclusive economic development.
Proactively delivering the best customer Developing segmented proposition with appropriate pricing.
experience. Democratising data access and providing inclusive digital services.
Instilling an agile culture across the organisation. Creating forums to further enhance governments’ and regulators’
Identifying innovative opportunities for understanding of the mobile communications and financial services
collaboration rather than competition. businesses and how they contribute to government and society.
Embracing OTT players for mutual benefit. Participation in government engagement processes when invited.
Partnering to ensure relevance and competitive
advantage.
Risk Risk
Market disruption. Unstable economic and market conditions.
Strategy execution in fibre and convergence. South Africa priority markets review, decisions on spectrum assignment.
Strategy Spectrum.
Vendor strategy.
Adverse regulatory and political pressures.
Non-compliance with laws and regulation.
Global market Strategy
Mobile internet users
2018 2025 Global market
3.6
billion
5.0
billion
Smartphone % of connections
2018 2025
Penetration
60
percent
79
percent
47% rate 61%
(% of population)
Source: GSMA Intelligence, The mobile economy 2018 Source: GSMA Intelligence, The mobile economy 2018
Our key relationships
As a Group we do not operate in isolation: our ability to deliver value depends on the contribution
and activities of a range of different stakeholders.
In the tables below we briefly outline those stakeholder groups
who have a substantive impact on our ability to create value,
outlining their contribution to value creation, our means of
Our assessment of the current quality of our relationship
engaging with them, and the stakeholders’ primary interests
* No existing relationship, or one that is fractured and has deep challenges.
relating to our business activities. We have also provided our own ** An established relationship, but further work needed to improve the quality.
internal assessment of the quality of our current approach to *** Good quality relationship, with room for further improvement.
engaging with the different stakeholder groups. **** Very strong relationship, based on mutual trust and shared benefit.
Customers
Purchase our products and services, providing the basis for revenue growth.
How we engage Material stakeholder interests

Retail outlets, online and call centres. Better value offerings.
MyVodacom app, messaging and USSD channels. Faster data networks and wider coverage.
Net promoter score feedback interviews and focus groups. Making it simple and quick to deal with us.
Social media interaction. Converged solutions for business customers.
Vodacom website. Managing the challenge of data-usage transparency.
Exco visits to stores. Privacy of information.
Prompt feedback/resolution on service-related issues.
Our response: Best customer experience (page 28), Segmented propositions (page 31), Financial services (page 34),
Digital content platforms (page 36)
Government and regulators

Provide access to spectrum and operating licences; impose regulatory measures with cost implications.

Participation in company and industry meetings with Ensuring that spectrum is managed as a strategic resource.
government and regulators. Protecting consumer interests on service quality, costs
Participation in public forums. and privacy.
Engagement on draft regulations/bills. Establishing licence certainty in our operating
Industry consultative bodies. environments.
Partnering on various social programmes. Opportunities for job creation and socioeconomic
Hosting workshops to improve sector understanding. development.
Participation in parliamentary processes. Regulatory compliance (eg. mobile termination rates, price,
security, safety, health and environmental performance).
Contribution to the tax base.
Our response: Our brand and reputation (page 44)
Employees
Their skills, experience and productivity drive the development and execution of our strategy.

Internal website. Opportunities for personal and career development.
Newsletters and electronic communication. Communication and knowledge sharing across the Group.
Employee hotline. Enhancing leadership coaching capacity.
Leadership roadshows. Competitive remuneration.
Fireside chats with the CEO. Deepening digital skills.
Townhalls.
Our response: Digital organisation and culture (page 42), Sustainability report
18
Our business
Investors and shareholders

Provide the financial capital for long-term growth.

Personal meetings, roadshows, conferences. Strategy to ensure sustained financial growth.
Investor days. Responsible allocation of capital.
Annual and interim reports. Sound corporate governance practices.
Stock Exchange News Service (SENS) announcements. Transparent executive remuneration.
Monthly and quarterly reviews with Vodafone. Stable dividend policy.
Investor relations page on our website.
Our response: Share information (page 80), Consolidated annual financial statements, Sustainability report
Suppliers
Impact our ability to cost-effectively provide products and services.

Supplier forums. Timely payment and fair terms.
Ongoing site visits. BEE compliance and SMME/BEE supplier development.
Tenders and requests for audits. Improving health and safety standards.
Supplier audits and assessments. Partnering on environmental solutions.
Supplier/product innovation.
Our response: Our brand and reputation (page 44), Sustainability report
Communities
Strengthening the socioeconomic context in which we operate; inform our reputation.

Community interaction on projects relating to education, Access to mobile voice and data services.
health, agriculture and inclusive finance. Delivery of global and national development goals.
Public participation on new base stations. Free-to-use social media, education and job sites.
Open days at universities. Responsible investment in infrastructure.
Vodacom Foundation/community partnerships. Transparency on performance.
Our response: Our brand and reputation (page 44), Sustainability report
Business partners/franchisees
A key interface with our customers, custodians of our brand and reputation.

Annual business partner conference. Fair treatment.
Bi-annual franchise road shows. Top management involvement with customers.
Quarterly franchisee council committee meetings. Making it simpler and quicker to deal with us.
One-on-one business meetings.
Training sessions on products and services.
Store, franchise and retail visits.
Our response: Best customer experience (page 28)
Media
Inform company reputation and consumer awareness of products and services.

Face-to-face and telephonic engagement. Being informed of key activities and offerings.
Interviews with CEO and key executives. Transparency on performance.
Media releases and product-related publicity.
Roundtables.
Product launches.
Our response: Integrated report, Consolidated annual financial statements, Sustainability report

Responding
to stakeholder
‘hot issues’
Being sufficiently responsive to relevant stakeholders’
interests is essential to maintaining positive stakeholder
relationships. In many instances, those issues which our
stakeholders feel most passionate about cut across different
stakeholder groups, sometimes with very different perspectives.
While there are always many different stakeholder interests that
we have to deal with, we have prioritised this financial year’s
four most visible ‘hot issues’ which we believe have a material
bearing on our ability to create value.
Cost of data
– regulatory and political priority
Consumer privacy
The issue – protecting personal information
In South Africa, consumers, policy makers and the media have
been voicing concerns relating to the cost of ICT services in The issue
general and digital data in particular. In South Africa, the Individual consumers are becoming increasingly connected
Competition Commission and ICASA have both launched through smartphones and other personal devices, spending
processes on the cost and nature of data services, and more time on social media platforms and more frequently
regulations have recently been introduced to manage data engaging in e-commerce transactions and digital financial
usage notification and control out-of-bundle billing. services. As the ability to track and analyse ‘connected
consumers’ becomes more sophisticated, so the need to
Our response
manage and protect personal information becomes more
In the context of our commitment to drive digital inclusion, critical. Trust in big tech companies has recently been falling,
and given the tough consumer environment, we recognise the with consumers and regulators increasingly concerned about
imperative to further lower data prices in some of our markets, the security of personal data and how it is being used.
while ensuring that this does not compromise our ability to
make the investments in network and IT infrastructure needed Our response
to broaden service delivery and maintain high quality
offerings. Our initiatives to reduce data costs and encourage Respecting our customers’ right to privacy, and protecting
customers to optimise data usage include: devices, networks, data and apps, is a top priority for us and
integral to our Code of Conduct.
Introducing new in-bundle and out-of-bundle smart
notifications, and further reducing out-of-bundle rates, in As part of the Vodafone Group, we benefit from its
line with the recent amendment to the End-User and approach to ensuring compliance with the EU’s General
Subscriber Service Charter Regulations, providing Data Protection Regulation (GDPR), the global ‘gold
customers with options to transfer and roll over data, and standard’ on data protection and privacy.
further reducing out-of-bundle rates by 50%. In South Africa, we have systems in place to ensure
Providing customers with bundles for varying periods of compliance with the recently approved regulations of the
validity at affordable pricing, down to 12 cents per MB for a Protection of Personal Information Act (POPI) once these
one-hour, 1Gb package at R12. come into effect.
Making data more affordable through various propositions All legally-entitled requests from security and enforcement
that lower the data entry barrier, such as Facebook Flex and agencies for customer information are managed in
Vodacom Siyakha. accordance with Vodafone policies and procedures, and with
Running consumer campaigns to increase awareness on applicable local laws and regulations; we contribute
optimising data usage. annually to Vodafone’s industry-leading law enforcement
Renewed calls for the Government in South Africa to release
disclosure report, which provides a detailed insight regarding
much needed spectrum at a reasonable price to reduce
demands from law enforcement agencies in 28 countries.
the cost to carry data.
Introducing personalised bundles that target lower-income
towns and groups. Stakeholders
• Customers
• Government
Stakeholders • Regulators
• Customers • Media
• Government • Investors
• Regulators
• Media
• Investors
20
Our business
Network quality The issue
and coverage Maintaining network quality and performance is both a significant

source of competitive differentiation, as well as a legislated
expectation in terms of ‘Quality of Service’ regulations. Unplanned
disruptions in network performance, and any resulting shortfalls in
network quality and availability, negatively impact consumer
sentiment which can be rapidly shared on social media. In
South Africa we have faced network-related challenges in some areas
following extended load-shedding by the national energy utility,
which placed pressure on batteries and diesel generators.
Our response
To cater for the growth in data usage across our markets, we have
invested R13 billion to widen our 3G and 4G data coverage, improve
voice quality and increase data speeds.
Given the potential for further extended load-shedding we have
invested in additional batteries and generators across our
‘Please Call Me’ protests South African network.
In South Africa, our 3G coverage has increased to 99.5% of the
The issue population and 4G coverage to 90.4%, with high-speed
transmission extended to 94.0% of our sites.
In our South African market, Vodacom has been subject to Our International mobile operations now have 7 580 2G sites,
substantial press and social media attention, as well as a 5 629 3G sites, 1 593 4G sites and 1 5G site, with high-speed
public protest outside our head office, relating to a long- transmission extended to 91.5% of sites. This year we introduced
standing litigation process with a former Vodacom employee, 5G in Lesotho.
Mr Nkosana Makate. The matter was eventually heard on We continue to engage actively with regulatory authorities on
appeal by the Constitutional Court. The Court ruled that there accessing spectrum. This remains a critical factor in further
was an agreement between Vodacom and Mr Makate, but improving network quality and coverage and reducing data costs.
noted that the price to be paid for Mr Makate’s idea still had to
be negotiated. The Court instructed Vodacom and Mr Makate
Stakeholders
to enter into negotiations, in good faith, to agree the
• Media
‘reasonable compensation’ payable to Mr Makate. Mr Makate • Customers
rejected the CEO’s determination and in February 2019 • Regulators
indicated his intention to take the matter under judicial review. • Investors
We are awaiting communication from Mr Makate on this matter.
Our response
Vodacom has complied fully with the Order of the Bulls and bears:
Constitutional Court. our investors’ perceptions
Following the failure of the negotiating teams to reach
agreement on the quantum of compensation, the The Bulls – Seeing the upside
Vodacom Group CEO, in his role as a deadlock-breaking Strong management team with good track record of
mechanism, was required to determine the amount of execution.
reasonable compensation to be paid. CEO Shameel Joosub Strong balance sheet capacity and cash flow generation,
recused himself from all internal meetings on this matter, to support both dividend and future mergers and
in order to remain independent and impartial. acquisitions.
We believe we have followed the Order of the A diversifying portfolio with faster growth potential in
Constitutional Court to the letter and that we have International operations, positive earnings contribution
demonstrated good faith throughout the negotiations.
from Safaricom.
Vodacom is ready and willing to pay the amount set by the
Group CEO as reasonable compensation, in accordance Excitement about new growth opportunities in digital
with the Constitutional Court Order. services, including Financial services, Enterprise and
In our negotiations with Mr Makate, we have acknowledged IoT innovations.
that Vodacom could and should have handled this matter Benefits of Telkom roaming deal, filling the gap from the
better from the beginning; in those instances where we loss of Cell C.
did not get things right, we have tendered our apologies. Recent positive regulatory and policy developments in
We have taken some important lessons from this matter. South Africa, with anticipated progress on spectrum
allocation.
Stakeholders
• Customers
• Government
The Bears – Identifying areas of concern
• Regulators Continuing macroeconomic pressure negatively impacting
• Suppliers consumer spend.
• Investors Perceived regulatory and competitive issues placing
further pressure on data pricing.
EBITDA margin softness in South Africa from Vodacom
roaming on the Rain mobile network.

Our principal risks
Figure 1: Residual impact vs likelihood
3
Market
review
4 1
Vendor 6
Regulatory Cyber
strategy threat
9
Impact
Strategic
projects
5 2
Spectrum Economy
Vodacom has a mature risk
management framework that is
aligned with the ISO 31000
10 7 International Risk Management
Compliance
Technology
failure Standard and the requirements
of South Africa’s King IV
Governance Code.
Likelihood
Low Medium High We identify the key risks through our Principal Risks
Framework, which provides the Executive Committee
and Board with a robust assessment of the principal
Figure 2: Risk and speed of impact risks facing the Group. An embedded enterprise risk
management process supports the identification of
these principal risks. The risk appetite for each
principal risk is reviewed and approved by the Board
3 2 1 to enable informed risk-based decision-making.
High
Market Cyber
Economy
review threat The Group’s risk heat map (Figure 1) sets out the top
10 principal risks as identified through the risk
Key focus area management process. The heat map depicts
residual risk after taking into account mitigating risk
factors. This is supported by the risk and speed of
impact report (Figure 2), reflecting the rate at which
Risk rating
4 the Group will experience adverse impacts if the risk

Medium
6 5
Regulatory Vendor materialised.
Spectrum
strategy
Key focus area
9
Strategic 8
projects Disruption
7 Internal
Low
Technology
failure
10 External
Compliance
Slow (>12 months) Rapid (between 6 and 12 months) Very rapid (<6 months)
Speed of impact
22
Our business
Our strategies
Best customer Segmented Financial Digital content Best Digital organisation Our brand and
experience propositions services platforms technology and culture reputation
PG 28 PG 31 PG 34 PG 36 PG 38 PG 42 PG 44
Principal risk Context Mitigating actions Strategy
1
Cyber threat An external cyber attack, insider World-class security vendors commissioned to enhance
(All markets) threat or supplier breach – sophisticated attacker detection.
malicious or accidental – could Ensure that all projects are undertaken with security in mind.
Speed of impact result in service interruption and/or Cyber incident response, containment and focus monitoring
Very rapid the breach of confidential data, with for the Vodacom Group of companies.
Rating: 1 resulting negative impacts on Continuous security improvement programmes undertaken
customers, revenues and reputation, to manage the security risk.
(2018: 8) and potential costs associated with Assurance programmes are in place that incorporate both the
fraud and/or extortion. internal and external review of where our data is held.
Layers of security controls applied to protect our infrastructure
that stores and transmits confidential information.
Vodafone Security Risk, Control and Assurance Framework
applied.
2
Unstable economic The mobile communications Comprehensive stakeholder relations strategy in all our operations.
and market industry is often subject to Internal specialised tax management capability, with external
conditions unpredictable and higher direct and expert tax advice as needed.
(All markets) indirect taxes in our countries of Adjust our products and services to continue to serve
operation. Other volatile customer needs.
Speed of impact macroeconomic conditions – such
Group Treasury Policies applied in all our markets.
Rapid as fluctuating foreign exchange and
inflation rates – can weaken Include contingencies in our business plans to provide for the
Rating: 2 negative operational impacts that could arise from lower
Consumer and Enterprise spend,
(2018: 9) reducing revenue and impacting economic growth, and changes in interest, inflation and
negatively on operating costs and exchange rates.
capital expenditure. Implement a global cost-savings programme to combat the
effects of inflationary pressure on costs.
Use of foreign exchange instruments to mitigate foreign
currency fluctuations.
Careful treasury management of loans to ensure the best rates
and right balance between fixed and variable rates.
3
Priority market A priority market review on both Vodacom engages with the relevant bodies, through discussions
review Wholesale and Retail can result in and submissions, to ensure fair results.
(South Africa) an increase in regulatory We ensure that we comply with the relevant regulations.
requirements. Vodacom submits quality submissions, balanced with academic
Speed of impact
studies, best practices research, international independence
Slow Stringent regulatory requirements
review and studies and economic impact reports.
set by the regulator or legislation
Rating: 3 could have an impact on Vodacom’s
New profitability, growth and services.

Our risks continued
4
Vendor strategy A dual vendor strategy is crucial for Risk profiling to consider multi-vendor strategy in critical
(All markets) the sustainability of our operations. categories to reduce dependencies on single vendors.
Geopolitical influences furthermore We continue to invest in the upliftment of future BEE suppliers.
Speed of impact could impact on our IT and We closely monitor the political situations around our key
Rapid Technology vendor strategy. Lack of suppliers.
Rating: 4 supply by key suppliers may We are also working with governments, experts and suppliers to
negatively impact on operational ensure that we can shape outcomes wherever possible.
New activities and delivery of quality of
service.
5
Spectrum/Licence Failure to secure additional Engage government and regulatory bodies, highlighting
renewal spectrum due to policy changes efficient allocation and resulting societal benefits of spectrum.
relating to the issuing of spectrum Actively participate in licence renewal processes and spectrum
Speed of impact licenses, non-renewal of existing allocation processes.
Slow licences, and/or increased Continuously evaluate and implement re-farming and
Rating: 5 competition for access to spectrum, optimisation strategies.
would significantly impact our
(2018: 2) Proactive spectrum strategy, including potential acquisitions and
ability to increase capacity and
strategic partnerships under applicable regulations.
deliver future network capabilities.
6
Adverse regulatory Stringent regulatory requirements Engage with governments, regulatory and public bodies.
pressures set by the regulator or legislation Specialist legal, regulatory and government relations teams at
(All markets) could have an impact on Vodacom’s Group and in all operations, with external advisors and legal
profitability, growth and services. counsel as needed.
Speed of impact This exposes Vodacom to significant Engage stakeholders, and utilise targeted intelligence reports, to
Slow financial and reputational damage. understand material legislative changes.
Rating: 6 Engage proactively with government and other key stakeholders
(2018: 5) to communicate key messages and proposals on how policy/
regulatory decisions positively and negatively impact the sector.
Participate in broader government objectives and public interest
through national industry associations, the GSMA and other
influential organisations.
Regulatory Compliance Policy and a related combined
assurance programme in place to ensure that all risks are
documented.
7
Technology failure Our customer value proposition is Invest in maintaining and upgrading our network on an ongoing
(All markets) based on the reliable availability of basis, with comprehensive business continuity and disaster
our high-quality network. A major recovery plans in place.
Speed of impact failure in critical network or Investments to ensure adequate redundancy capabilities where
Very rapid information technology assets – for feasible.
Rating: 7 example, through natural disasters, Comprehensive insurance policies in place.
insufficient preventative
(2018: 7) Self-provided transmission links on critical routes in our
maintenance, or malicious attack
networks to reduce reliance on external parties.
– would have a profound impact on
our customers, revenues and Minimise any single point of failure.
reputation.
24
Our business
Our strategies
Best customer Segmented Financial Digital content Best Digital Our brand and
experience propositions services platforms technology organisation reputation
and culture
PG 28 PG 31 PG 34 PG 36 PG 38 PG 42 PG 44
8
Market disruption We are experiencing intensified Monetise the network and personal data assets by using Big
(All markets) competition from a variety of new Data and real-time analytics to provide personalised services to
and existing technology providers, customers.
Speed of impact new market entrants and Implement pricing strategies to manage the decline of
Slow competitors. traditional voice revenue through migrating voice to data.
Rating: 8 Established a team that analyses and provides insight into
customer behaviour to better position our offerings and further
(2018: 4)
segment our customers with relevant offers and services.
Ensure superior customer service strategy in place.
Partner with OTTs for mutual benefit.
9
Execution of Missed growth opportunity due to Our strategy includes a dedicated pillar that focuses on future
strategic projects for lack of execution of our strategic growth areas that include fibre, digital services, converged
future growth projects. Vodacom’s ability to services and financial services.
(All markets) remain competitive in the new and Dedicated divisions to deliver on the strategy of fibre, digital
changing market may be negatively services, converged services and financial services.
Speed of impact affected if the current projects to Review alternative options to assist in the growth of our fibre
Slow roll out fibre, digital services, offerings and digital services either through build, buy or
financial services and converge partnering.
Rating: 9
products is not done successfully
(2018: 6) Review and monitor our current revenue streams so that we are
and in a timely manner. Constant
able to proactively implement controls to manage potential
threats from regional start-ups and
substitution.
smaller fixed ISPs offering no-frills
access to the internet. Monitoring by the Board for corrective steps and actions.
10
Non-compliance We operate in a complex and heavily All new products and services are reviewed for compliance with all
with laws and regulated environment. A breach of applicable laws and regulations before being approved for launch.
regulations regulatory requirements could All distribution channel agreements are updated to continuously
(All markets) expose Vodacom to significant comply with legislative requirements.
financial and reputational damage. Subject matter experts in our legal and regulatory teams at
Speed of impact a local and global level advise on strategy and manage policy
Slow and risk issues.
Policy of zero-tolerance towards bribery by any employee or third
Rating: 10
party operating on our behalf.
(2018: 10) Robust, proportionate, risk-based controls to prevent, detect and
report money-laundering and terrorist financing.
Combined Assurance Programme on regulatory compliance,
governed by the Group Audit, Risk and Compliance Committee.

Delivering on our strategy
Vision 2020: Our strategy
We have been implementing the five pillars of our Vision 2020 strategy since 1 April 2017. This year we added two new pillars,
separating our Digital content platform and Financial Services commitments as we see these areas requiring particular focus in
delivering on our goal of being a leading digital company.
Our vision is to be a leading digital company that empowers a connected society

We will disrupt through technology while delivering world-class digital solutions. We will
remove barriers to access as we evolve to the gigabit society, while transforming education,
healthcare, financial services and agriculture.
Empowering the digital lives of our customers

Connecting everybody to live a better today and build a better tomorrow
How we measure Performance at Performance at

Strategy success Goal to 31 March 2020 31 March 2018 31 March 2019
Net promoter score #1 in all markets

(NPS)
#1 in all markets #1 in all markets
except Mozambique ■
Best customer
experience #1 in all markets,
Digital NPS #1 in all markets not yet measured not yet measured in ■
International
Group service
Segmented
propositions
revenue growth Mid-single digit 3.4% 5.0% ■
rate (%)
Group customers
Financial >52 million 45.8 million
services
using financial
customers
not yet measured
customers ■
services1
Group service revenue
contribution (%) from
Digital content
platforms
digital services (IoT, 5% 3.2% 2.8% ■
Infotainment and
advertising)
#1 in all markets
Best except
technology
Network NPS #1 in all markets #1 in all markets
#2 in Tanzania ■
#2 in Mozambique
Employee
Digital Engagement index (%) 80% 78% 78% ■
organisation
Employee Digital
and culture
index (%) 80% 77% 75% ■
Our brand and
Brand leadership #1 in South Africa #1 in South Africa #1 in South Africa ■
reputation Reputation survey #1 in all markets #1 in all markets #1 in all markets ■
1. Including Safaricom.
■ Achieved target ■ Partially achieved
26
Our strategy
Expanded network coverage across all our markets, all of which are now live with 4G; we
introduced 5G in Lesotho, the first in Africa.
Enhanced our IT platform architecture and Big Data capabilities, reducing customer call
Delivering on volumes by 25%, ahead of our 20% target.
our strategy: Increased the performance of our online web and MyVodacom app platforms, contributing
2019 at a glance to a 300% increase in app usage and a 14% increase in the number of customers
completing their online purchase journeys.
Secured positive developments in our segmented propositions, each of which is
increasingly informed by Big Data analytics.
Another solid performance from our Enterprise segment, with mobile market share
remaining strong; continued growth in the fixed-line business; and further delivery in IoT.
Gained traction in driving uptake of IoT in areas such as smart buildings, smart utilities,
logistics, fleet and citizen engagement, as well as successfully deploying solutions in
education, healthcare and agriculture through our subsidiary Mezzanine.
Achieved strong early growth in scaling financial services in our South African market,
focusing on insurance, payments and lending.
Maintained our leading performance in M-Pesa, extending the offering beyond person-to-
person money transfers to include Enterprise, financial services and mobile commerce.
M-Pesa has grown to have the largest reach of any financial services provider in Africa.
Good progress in most of our chosen verticals in consumer digital services – video, music,
sports and gaming – all supported by our advertising platform.
Realised more than R3 billion in operational cost savings through our Technology
Efficiency programme.
Pleasing progress in embedding Agile methodologies across our South African operation,
and in accessing and developing digital talent, including specifically in Big Data and AI.
Continued to roll out numerous initiatives that are making a meaningful contributing to
the eight global UN Sustainable Development Goals (UN SDGs) that we have prioritised –
on education, health, gender equality, job creation, industry innovation, sustainable cities,
climate action and partnerships.
Data security remains a critical customer focal point, given the increasing number of
cyber attacks and data breaches, and the recent regulatory provisions.
Although we retained our position as the reputational leader in the telecommunications
sector across all markets, we faced renewed customer pressure, particularly in
South Africa, on issues such as data pricing.
Digital services represented 2.8% of service revenue, a 0.4ppts decrease, following a 41%
decline in subscription-based content services revenue, as a result of our stringent policies
to minimise content fraud.
Further expansion of our 4G footprint, and possible roll-out of 5G and faster reduction in
cost to carry data, continue to be limited by spectrum constraints.
Negatively affected by the recent national load shedding in South Africa, with the more
extensive load shedding impacting the ability of some of our back-up batteries to recharge.
Financial impact from the new data regulation on revenue growth. However, it is to the
benefit of the customer.

Best customer
experience
We provide a seamless, frictionless,
personalised digital experience
to our customers.
We are digitising the customer experience to

substantially enhance the quality of service we 2 Always
provide, with the aim of leading in NPS in each excellent value
of our markets. We have driven the uptake of our award-winning MyVodacom
app allowing customers to view balances, buy bundles and
manage accounts, free of charge, and we have further
improved our in-bundle and out-of-bundle smart notifications
Optimising the customer experience for customers across our markets.
Our approach to optimising the customer experience is guided by Vodacom Tanzania is the first telecommunications company
our digi-CARE initiative, an ambitious programme across the to introduce cashless functionality through the M-Pesa
Vodafone group that focuses on four key areas: Mastercard virtual card.
In DRC we have optimised our Airtime Advance product and
improved the pay bill service by allowing postpaid customers
1 Connectivity to pay their bill via M-Pesa.
that is smart and secure In South Africa we extended our Airtime Advance product to
We have expanded our network coverage in 2G, 3G and 4G 9.7 million customers.
across all our markets, and introduced 5G in Lesotho, the first
in Africa; all our operating markets are now live with 4G.
We continue to lead on network net promoter score (nNPS) 3 Real-time
for network quality and network coverage in three out of five relevant rewards
of our markets, and remain competitive on nNPS in Tanzania We have run various promotions and campaigns across our
and Mozambique. markets to reward long-time loyal customers, incentivise new
We invested R13.0 billion in infrastructure this year, improving customers, and encourage the uptake of the MyVodacom app.
the overall customer experience across our markets with In Tanzania our “10 years of M-Pesa in Tanzania” nationwide
network modernisation and capacity upgrade initiatives. promotion was launched as a way of thanking our valued
Vodacom’s chatbot, ‘TOBi’, has been rapidly scaled up since its M-Pesa customers, agents and merchants; the promotion
launch in South Africa in July 2018, with more than 1.6 million created 100 millionaires and gave away 10 brand new cars in
chats offloaded from our call centres, delivering a significant 10 weeks.
improvement in our ability to resolve customer queries In the DRC and Lesotho, we have seen significant uptake in
without a live agent. our ‘Just 4 You’ offering, with machine learning informing
We were the first in Mozambique to gain a unified licence, highly personalised offers based on customers’ behaviour.
allowing us to operate with all the technologies with no In all of our markets we ran promotional campaigns aligned
limitation and leading us to launch 4G before any other with the 2018 FIFA World Cup.
operator in our market.
28
Our strategy
As part of our efforts to reduce our environmental impact and

4 Easy improve customer experience in our stores, in 2019 Vodacom
personal and instant access became South Africa’s first telecommunications company to
We have invested in enhancing our IT platform architecture ban the issuing of plastic bags to customers in stores. We
and Big Data capabilities to improve our customer service replaced plastic bags with recyclable brown paper bags, which
offerings and deliver the best digital experience; these are comparatively less harmful to the environment.
capabilities have assisted in reducing customer call volumes
by 25%, well ahead of our 20% target. International
We increased the performance of our online web and
We launched the MyVodacom app in all our markets.
MyVodacom app platforms, contributing to a 300% increase in
app usage and a 14% increase in the number of customers We rolled out new store formats across our markets,
completing their online purchase journeys. supported by further investment in improving our customer
call centres.
 We have run awareness campaigns across our markets to
increase penetration of our digital tools, improve customer We continue to deepen the use of digital as a means of
experience and deliver enhanced efficiencies. enhancing the customer experience, primarily through our
‘Just 4 You’ offering.
 We have seen good uptake of our retail app, enabling much
more efficient in-store upgrades. In Tanzania and Mozambique, our new Knowledge Base Portal
has empowered frontline staff to more readily access
We have delivered improvements in first call resolution rates
information on our products and services, increasing efficiency
across our markets by empowering frontline staff, embedding
in customer handling and improving the customer experience.
a digital culture and delivering digital capabilities.
Our Social Media Command Centre allows us to leverage
Delivering leadership on net promoter score
social listening to be able to address customer incidents as
To measure the quality of the customer experience, we use
well as social sentiment. This data is used by our customer
the NPS based on one question: “How likely would you be to
experience design teams to improve customer journeys
recommend Vodacom to a friend, family member or colleague?”
and fixes.
Vodacom ended the year leading in NPS in four out of five of
We launched the Customer Obsession Programme in
markets.
April 2018, requiring all Vodacom executives to spend a day
each month in one of our call centres or Vodacom Shops, In South Africa, at year end, we ranked number one in both
shadowing the agents. On each visit, the executive commits to Consumer and Enterprise NPS, with a nine and one-point gap
an action to improve customers’ experiences in that channel. respectively against our nearest competitor. The decline in
Over 300 commitments have been made so far, relating to Enterprise is mainly as a result of the improvement in the
people, processes, systems and technology. competitor’s network and strong competition on pricing.
With headline NPS of 58, Vodacom Tanzania retained its
Driving a positive customer experience in our leadership position throughout the year, despite heavy
retail operations competitive pressure in the form of price cuts by competitors.
In Mozambique our NPS position declined as a result of
South Africa competitive pricing pressures.
We have refreshed the look-and-feel of our branded stores, In DRC, we achieved an eight-point gap over our nearest
rolled out the Qnomy in-store queue management and competitor, with our network and mobile money services
appointment booking system, and empowered our frontline identified as key differentiators.
staff through our Retail Hero Training Programme. We lead in Lesotho with headline NPS 8 points ahead, leading in
We rolled out the Vodacom Retail app, enabling customers to most functional and emotional attributes.
do paperless upgrades instantaneously with a sales
consultant, significantly reducing the transaction time, and Despite maintaining our very positive rating on customer NPS,
improving the overall customer experience; we now process we have continued to face some customer pressure in certain
on average 64% of upgrades using the app. markets on key issues such as data pricing, ‘disappearing data’
These various initiatives contributed to a positive Retail and network quality (page 20). Customer expectations of ease,
touchpoint NPS (tNPS), ending the year at 61ppts. simplicity and convenience have risen on the back of global
best-in-class service provision from other sectors.
We have been showcasing our digitally transformed retail
channel experience with the reopening of our flagship Our NPS performance rating
Vodacom World in December 2018 after an eight-month
revamp. With 6 000m2 of retail floor space, Vodacom World Country 2019 2018 2017
has become the testing hub for all new Vodacom products South Africa 1st 1st 1st
and services, offering customers a unique experience that Tanzania 1st 1st 3rd
showcases the full potential in IoT and technology.
DRC 1st 1st 1st
We maintained our strong focus on our differentiated
after-sales model, driving our repair avoidance strategy and Mozambique 2nd 1st 2nd
first-line repair resolution through TechZone. Lesotho 1st 1st 1st

Best customer experience continued
Vision Digitising and optimising the customer experience

2020
We have five strategic priorities aimed at delivering the IT-based customer engagement and management
most engaging customer experience by blending the tools to provide a complete 360 view of the
best of technology and human interaction in a personal, customer, optimise the customer experience and
instant and easy manner: achieve greater efficiencies. We will be entrenching
Eradicate: We are removing unnecessary contact ‘TOBi’ (our chatbot platform) as a ‘digital concierge’
reasons and looking to significantly reduce call integrated into all of our customer service channels.
volumes by moving from traditional contact centres  Steer: We are deploying smart routing capabilities
into ‘experience hubs’, creating self-managed teams and leveraging Big Data to steer customers to the
with one point of contact that more effectively right channel and experience.
integrate customer care with other parts of the  Predict: We will be deepening our use of AI and
business. machine learning to proactively predict and manage
Digitise: We are dramatically simplifying our service
 customers’ service needs.
processes with the aim of providing customers with We are prioritising our human experts to deliver a great
a seamless, fully integrated one-channel digital-first customer experience built on three pillars.
experience, ensuring consistent, personalised and
efficient customer engagement, both online and Activate our experts to proactively drive digital

in-store, with digital the dominant support channel customer adoption powered as far as possible by
and the MyVodacom app the channel of choice. Our the MyVodacom app.
goal is to lead our competitors each year by at least Empower our experts with the tools, skills and

10 points in NPS. capabilities to deliver a great digital-first experience.
Automate: We are investing in richer and more
 Transform our frontline staff to be the experts of

intelligent interfaces, Big Data analytics, and tomorrow.
Partnering with Harambee to tackle youth unemployment
The Harambee Youth Employment Accelerator is a global award-winning social enterprise that is
tackling South Africa’s significant youth unemployment challenge by connecting employers with
entry-level talent, focusing on high-potential youth who lack the finances and networks needed to find
jobs because they come from poor households. Since inception, Harambee has assisted in placing youth
in more than 100 000 jobs and work experiences from a growing network of over 500 000 work-seekers.
Vodacom has partnered with Harambee to leverage our capabilities to support digital skills development in South Africa
through our collective mobile platforms. Through our partnership, we employed Harambee youth in a contact
centre that was rated the third best in South Africa, and that outperformed our other contact centres on most
key performance indicators.
30
Our strategy
Segmented
propositions
We develop a deep insight into
our customers’ needs, wants and
behaviours, and provide propositions
to lead in chosen segments.
We are using digital tools to deepen our parents and guardians across South Africa. The platform
understanding of customers’ needs and behaviours, democratises access to healthcare, providing pregnant
and to develop personalised propositions across women and new parents with health information by registered
consumer segments. medical professionals on health issues pertaining to
pregnancy and young children up to the age of five. We
continue the journey with Vodacom e-School, providing free
access to the full Curriculum Assessment Policy Statements
Developing targeted segments using Big Data (CAPS) curriculum, and Vodacom e-library. In a bid to
analytics commercialise the platform, we launched Mum and Baby
We have made further valuable progress this year in providing Premium in 2018 and have seen good uptake of the service,
segmented propositions in the following areas, each of which is with users having a 10% higher ARPU and three more active
increasingly informed by Big Data analytics: days on the network than non-users.
Youth (Vodacom NXT LVL): Our NXT LVL proposition is
High Value (Vodacom RED): Our Vodacom RED proposition

focused on advancing South Africa’s youth through is aimed at delivering the best-in-class service experience and
connectivity, by offering affordable devices with targeted seamless international roaming with compelling lifestyle
value bundles to access the power of the internet, providing rewards in travel, sports and entertainment. The platform
access to opportunities such as Future Jobs Finder and yielded positive results this year, growing our customer base
e-School, as well as lifestyle benefits such as reduced by 5%, and market share by 2%.
subscriptions on music and video services. This proposition
has delivered impressive results, with revenue increasing 25% Monetising mobile data
supported by adding over 500 000 customers on the platform, We have continued to show strong performance in each of the
while maintaining a strong average revenue per user (ARPU) four focus areas of our accelerated data growth strategy:
despite a 52% drop in the effective price per MB in this
segment. Data usage has nearly doubled over the year. The Commercial network rollout:
youth segment also shows good smartphone penetration, We expanded our network coverage in 2G, 3G and 4G across
improving by 5% in the year, while 4G penetration improved all our markets, and introduced 5G in Lesotho, the first in
by over 6%. Africa; all our operating markets are now live with 4G
Emerging Segment (Siyakha): Our Siyakha proposition is
(see page 40).
focused on South Africans who do not have easy access to In South Africa, we extended 4G to over 90% of the
health information, education, jobs and social connectivity. population, and added 139 rural sites, connecting rural
The platform facilitates digital inclusion through targeted communities that had never previously had coverage.
offers and content, focusing on four main pillars: social Unfortunately the further expansion of our 4G footprint has
connectivity, health, education and jobs, with zero data been limited by spectrum constraints. We remain
charges. Since its launch in 2017, free access to the Vodacom optimistic that the regulator will soon make high-demand
Mum and Baby portal has impacted the lives of 1.4 million spectrum available.

Segmented propositions continued
Device penetration: Service revenue in South Africa grew 4.8%, despite declining
This year, there were 19.9 million smart devices on our voice trends. This growth was underpinned by mobile service
network, up 7.6%, while the number of 4G devices increased revenue +4.2% and fixed-line service revenue +24.7%, partially
35.7% to 10.0 million in South Africa. offset by a decline in national roaming revenues, due to the
transition between national roaming partners.
In International, smartphone users increased 20.5% to
9.8 million, representing only 28% of our customer base. Our SA mobile customer base increased to 1.6 million, up
23.1% year-on-year.
Bundle engagement: Fixed-line service revenue growth in SA was underpinned by
Our use of Big Data analytics to deliver personalised bundle strong revenue growth in leased lines and managed WAN
offers based on customer behaviour continues to differentiate +23.3%, IPVPN +15.9%, cloud and hosting revenue +11.5%,
us from our competitors, with our ‘Just 4 You’ platform and connectivity revenue uplift of 12.6% (comprising
accelerating the uptake of bundle offers across most of our broadband connect wireless, satellite and LTE).
markets. In South Africa, we sold 2.4 billion data bundles this Vodacom Business was successfully established as the leader
year, up 2.2%. in the Software Defined WAN (SDWAN) domain, with a major
This year, the average monthly data used by customers on win at a leading South African retailer.
smart devices increased 23.2% to 966MB, boosted by Implementation of ICASA’s End-User and Subscriber Service
customer migration to 3G and 4G devices, and by targeted Charter Regulations resulted in a significant decline in
data offerings. out-of-bundle revenue in the final quarter; coupled with an
out-of-bundle rate drop implemented as part of our pricing
Upselling digital services to existing users: transformation, this contributed to a 5.5% year-on-year ARPU
This year, digital services represented 2.8% of service revenue, decline. We are implementing various campaigns to
a 0.4ppts decrease on the prior year, following a 41% decline mitigate the risks, including focused customer value
in subscription-based content services revenue as a result of management and ‘next best activity’ that seek to drive
our stringent policies to minimise content fraud. additional bundles sales to increase ‘in-bundle’ revenue.
Given our belief that there is substantial further growth We are facing strengthened competition, including from new
OTT entrants, in digital networking services. While Vodacom
potential in digital services, this year we approved two new
remains the leader in this arena, we are retaining a sharpened
strategic objectives focused on expanding our digital service
focus with extended capillarity intent and activity.
offerings in new and existing areas, specifically by: scaling our
financial service offerings in insurance, payments and lending, Our cross-continent IoT plays are starting to pay dividends:
and building on our strong success with M-Pesa (page 34); and we recently signed a landmark agreement with a leading
growing our digital music, video and gaming services, and vehicle manufacturer and vehicle tracking company to launch
driving new opportunities in Consumer and Enterprise IoT the first connected vehicle in Africa, in a five-year partnership
(page 36). that will give Vodacom access to 24% of the total new vehicle
sales in South Africa alone. Customers across all vehicle
ranges will have access to built-in telematics, wi-fi
Driving enterprise growth
and content services.
E nterprise delivered another solid performance, with mobile
Revenue from our cloud, hosting and security business
market share remaining strong, continued growth in the fixed-line
grew 11.5% underpinned by winning a key contract on virtual
business, and further delivery in IoT.
data centre hosting with a leading international telecoms
During the year we refined our strategy and operating model, manufacturing company. We have launched various initiatives
shifting our go-to-market model from a segment-led to an to extend our advantage in Microsoft Azure and Amazon
industry-led approach that has seen our sales teams and Web Services, and will be looking to entrench our strategic
operations reoriented to industry-specific groups: Agriculture, partnerships with these players as we look to consolidate
Health, Education, Smart Cities, Mining and Manufacturing, a leadership position in the hyper-scale and multi-cloud
Logistics and Fleet, and Retail. Our existing segments – market.
comprising large enterprises, small and medium enterprises, Data security remains a critical customer focal point,
public enterprises and Vodafone global enterprises – have particularly given the increasing number of cyber attacks and
been aligned within these industry groupings. By refining the recent regulatory provisions relating to the extended
our client portfolio and reassigning account management adoption of the EU General Data Protection Regulation (GDPR)
responsibilities to teams based on their industry knowledge, and the Protection of Personal Information (PoPI) Act in
we have developed a more granular understanding of our South Africa. Vodacom’s Security Information and Event
clients’ business challenges, positioning us to co-create Management (SIEM) offering has become increasingly
solutions with clients aligned with their strategic intent. relevant as it predictively identifies potential security
We have continued to implement our digitalisation roadmap, challenges.
aimed at digitising and improving service to our clients. We have continued to deliver value to the South African
We continued the evolution of our IoT strategy and delivered Government, already achieving 51% savings in national
credible wins, further extending our leadership in this space to departments, exceeding our contractual obligations of 40%.
industry-specific solutions such as connected cars, fleets, We have added more than 66 000 lines and increased the
smart buildings and connected agriculture. number of value-added services, facilitating the digitalisation
32
Our strategy
of Government. We have extended partnerships with various

Government departments and state-owned enterprises, and
established various provincial technology nodes. A recent
example of the value delivered is our partnership with the
Eastern Cape Department of Education, where we are driving
connectivity access and delivering eLearning to rural schools.
As part of our focus on digitising Government, we have been
driving our Enterprise Mobility products, including our ‘smart
government’ and ‘citizen engagement’ applications, and our
device management capability.
We worked with the Department of Education to connect
80 000 teachers with laptops and data contracts during
the year.
Vision
2020
To deliver on our Vision 2020, we will be using Big Data analytics to provide
compelling customised propositions, and driving Enterprise growth through
digital and solution sales, and IoT.
Developing targeted segments using Big Data analytics

Our strategic commitments
Deepen our understanding of customers’ needs through Big Data analytics.
Lead in providing compelling customer propositions to meet these needs.
Monetise mobile data through targeted consumer digital offerings and
financial services.
Drive Enterprise growth through digital and solution sales

Defend and extend mobile through digital enterprise and proactive pricing
transformation.
Generate scale in fixed-line by partnering to accelerate capillarity and drive
fibre penetration.
Develop and provide a compelling platform for SMEs.

Financial services
We scale our financial services offerings
to empower the lives of our customers
through financial inclusion.
In South Africa, we are scaling our financial services

Launched in December 2018 through the MyVodacom app,
offerings in three main areas: short and long term
our VodaPay digital wallet has already gained 20 000 customers
insurance; payments; and lending. In our
purely through self-discovery, contributing R4.5 million/month
International markets, we will be building on our
revenue for airtime and data.
strong success with M-Pesa by expanding into new
financial services offerings. Total value of airtime and data advanced through our Airtime
Advance product has increased significantly from R3.3 billion
to R8.1 billion, representing 148% growth for the year. There
are 9.7 million unique active customers who take on average
3.5 million advances per day.
Scaling financial services in South Africa This year, we expanded the Airtime Advance project to include
In South Africa approximately 10 million customers are engaged channels such as tailored bundles through ‘Just 4 You’,
through one of our financial services products, representing Facebook upsell and real-time notifications when the
a quarter of our base. We aim to grow this by expanding customer has a low airtime balance.
our service offerings in the year ahead.
Our Financial Services business continues to accelerate, Growing financial services in our International
contributing R1.6 billion of revenue, growing at 67.1% and markets
delivering R1.0 billion profit before tax. In our International markets including Safaricom, 36.1 million
Our existing segmented insurance portfolio, covering life, customers are engaged on M-Pesa.
funeral and various short-term insurance offerings, has grown
Since launching in 2007, M-Pesa has grown to have the
steadily over the past year, generating revenue of
largest reach of any financial services provider in Africa, with
approximately R700 million from 1.3 million policies. Our
36.1 million customers, up 11.9% year-on-year. This year,
unique operating model is enabling the Vodacom Insurance
M-Pesa processed over 11 billion transactions, making it
Business to be one of the most profitable companies of the Africa’s biggest payments platform. M-Pesa has won the trust
sector with an EBITDA margin of 24.3%. of our customers as well as more than 348 000 M-Pesa agents
We currently have over 285 000 customers utilising the who enable customers to register an account and move their
VodaPay and Express Recharge platforms for direct recharges, funds into the M-Pesa ecosystem.
which has seen direct voucher sales increasing to R752 million. M-Pesa revenue from Vodacom International markets grew
This was achieved through various acquisition activities for 32.2% to R3.1 billion, representing 13.7% of total service
both USSD and MyVodacom app customers, resulting in revenue. In Safaricom, M-Pesa revenue now represents 31.2%
40 000 new customers and an additional R2 million per or service revenue and is growing at 19.2%. This performance
month in revenue. There are challenges with customers using was underpinned by exceptional revenue growth in
electronic methods to pay, but we are seeing a growing Mozambique (83.1%), strong growth in the DRC (39.2%) and
improvement over time and this will remain a key focus for Lesotho (34.8%) and a solid performance in Tanzania (14.5%),
acceleration, both as convenience for the customer and to despite intensifying competitive pressure and a more
obtain savings through direct purchases. challenging regulatory environment.
34
Our strategy
This growth is increasingly driven by extending M-Pesa beyond Vodacom DRC launched a foreign exchange product enabling
person-to-person money transfers to include enterprise, fully registered M-Pesa customers to seamlessly exchange the
financial services and mobile commerce. Currently, more than dual local currencies, Congolese francs and US dollar.
25 000 enterprise organisations use M-Pesa to collect and In Tanzania, we launched Africa’s first Virtual Mastercard,
disburse payments; over 36 million customers use M-Pesa to enabling M-Pesa customers to purchase from a huge range
access formal saving and loan products with partner banks; of international merchants and content providers.
and more than 130 000 retail and online merchants now In Mozambique, we partnered with BCI Bank to enable
accept M-Pesa, transacting over R2 trillion a year, including our customers to pay at any one of 16 000 domestic
Safaricom. points of sale.
This year, Safaricom launched M-Pesa Fuliza, a world-first
mobile money overdraft service. We also partnered with
Alipay to enable payments through M-Pesa on online
commerce platforms.
Vision Driving growth in financial services

2020
Scaling financial services in South Africa Driving further uptake of financial services in our
Our Financial Services strategy has three key focus areas: International markets
I nsurance: With insurance remaining underpenetrated, We see substantial further opportunities for M-Pesa
we believe that there remains substantial further upside revenue growth in our International markets, building on
in growing and digitising our insurance offerings, our leading market presence and platforms, and harnessing
building on the advantages we enjoy as a Telco. We have the opportunities associated with emerging disruptive
a sizeable existing customer base, and a wealth of technologies such as machine learning, Artificial
customers’ insights that can be leveraged to develop Intelligence and blockchain settlement solutions. We will
highly personalised product offerings; we have a strong be looking to consolidate our market leadership in
existing direct billing relationship with customers, and consumer and enterprise markets, accelerate the
multiple channels available for engaging with them; and monetisation of services, expand our ecosystems, ensure a
insurance is a sector particularly open to digital stable and favourable compliance landscape, and drive
disruption, presenting exciting opportunities in terms of growth into higher value-add financial services.
product innovation, underwriting, pricing and customer We are in the process of acquiring the M-Pesa brand and
journey digitisation. Enabled by our growing Big Data platform-related assets through a joint agreement (JV) with
capabilities, we are exploring opportunities to develop Safaricom. We expect this to accelerate M-Pesa’s growth
new and existing segmented propositions for both our within our existing markets and across the continent. This
existing and new customer base across our markets. JV will acquire the M-Pesa brand and platform
Payments: There are valuable opportunities within the management rights from Vodafone Group, and will be
mobile payments sector, providing convenient and investing in the next generation M-Pesa platform, an open,
diverse payment options for new and existing intelligent digital platform designed for smartphones. The
customers. We are focusing our activities in several JV will also invest in best-in-class anti-money laundering
areas: increasing available payment options through and cyber security capabilities to defend M-Pesa from
different digital channels; developing Vodacom these growing threats. The transaction close is subject to a
Financial Services payment products across the number of conditions being met, including signing of final
consumer and enterprise spectrum; and offering agreements and Reserve Bank approval.
specific enterprise payment solutions that enable
diverse customer payment methods.
Lending: We will be providing innovative digital lending
products that complement our core business, and
leveraging our existing and developing competencies
with Big Data analytics. A key focus area will be on the
use of our Big Data capability to create SME lending
propositions in a segment that is significantly
underpenetrated and offers significant upside.

Digital content
platforms
We grow into new verticals of digital
services to better serve our customers
and create value.
We are monetising data by growing our digital music,

Fibre
video and gaming services platforms, placing a
strengthened focus on increasing our offerings We maintained a significant focus on growing the fibre
across all households, driving new opportunities in business by delivering a better customer experience, scaling
Consumer and Enterprise IoT, and strengthening our our sales channels to make it easier for customers to obtain
cloud and security offerings whilst driving our fibre fibre, partnering with additional wholesale providers to
strategy. increase the market opportunity, and growing our own fibre
rollout to increase coverage. This has enabled us to deliver
54% growth in the number of houses passed on our own
infrastructure, while increasing total households connected
by 138% for the year.
Driving consumer digital services, IoT and fibre
Content IoT
We made good progress this year in most of our chosen Our IoT business has been driving the development and
verticals in consumer digital services – video (Video Play), uptake of innovative IoT solutions across our markets. We are
music (My Muze), sports (Vodacom soccer) and gaming gaining traction in areas such as smart buildings, smart
(PlayInc.), all supported by our advertising platform. We utilities, logistics and fleet as well as citizen engagement.
secured a 1.6% growth in content-related revenue, despite a Through our subsidiary Mezzanine, we successfully developed
41% decline in WASP revenue as a result of Vodacom’s and deployed solutions in education, healthcare and
stringent policies to minimise content billing fraud, a key agriculture.
concern for customers. During the year Video Play performed IoT connections increased 24.1% to 4.7 million.
particularly well, with over 869 000 active monthly users. We We continue to innovate and transform businesses. Vodacom
also launched our music offering called My Muze and are busy was presented with the Frost & Sullivan 2018 Africa
testing our new and exciting gaming platform. Our focus now Technology Innovation Award for our narrowband IoT (NB-IoT)
is on building scale, particularly in digital advertising, video technology deployment that has been specifically developed
and the provision of an ecosystem of third party propositions. to enable IoT connectivity for a range of devices over large
areas, including devices that are underground.
On Consumer IoT, we continue to develop product and service
offerings in areas such as home automation and security, pet
trackers, personal accessories and wearables.
36
Our strategy
Vision Driving growth in digital services

2020
Consumer digital content, IoT and household
We will be driving revenue growth in digital consumer content through three main
focus areas: building relevant content platforms to provide the best digital
experience in video (Video Play), music (My Muze), sports (Vodacom soccer) and
gaming, supported by our advertising platform; establishing partnerships with local
and global service developers and brands to deliver a compelling ecosystem of
third-party propositions; and driving innovation through our two recently
established v-Accelerator labs.
We continue to develop product and service offerings in areas such as home
automation and security, pet trackers, personal accessories and wearables. We are
keeping a strong focus on ‘owning the household’ by providing the best network in
mobile and fibre, ensuring the most compelling household and family propositions,
and delivering the best customer experience.
Enterprise
Cloud and security: We will further expand our cloud business, with an

emphasis on the application level rather than infrastructure products. We
continue to attract large global brands through co-location, and we have a
strong pipeline of new opportunities. We will expand our professional capability
to assist our customers in migrating their existing workloads as well as building
new capabilities on the new platforms. We will also enhance our security
capability to a richer solution set. On Big Data, we will launch our own retail
analytics capability, providing new insights from Artificial Intelligence and
machine learning. We expect to leverage our position with our Trading Bridge
Platform that provides switching capability to many retail customers.
Market leadership in IoT: Our goal is to become the IoT solutions partner of

choice, building on Vodafone’s recognised leadership in this area and its
extensive resources in Africa. We will be extending our IoT connectivity
leadership in all vertical markets, providing end-to-end services across the full
IoT value chain through partnerships and our own capability build: connecting
things; collecting the data; analysing the data; and taking action on this data.
We continue to support enterprises in the digitalisation of their businesses and
processes to ensure customers get the maximum benefit from IoT, identify
opportunities in hardware (such as IoT sensors and gateways), connectivity
management (such as smart meters, stock management, agri-sensing, mobile
POS devices, and cold chain management). In addition to providing hardware
(IoT sensors and gateways) and connectivity management, we are developing
and providing services in areas such as Big Data analytics, application
enablement, and cloud and hosting.

Best technology
We aim to be the leading telco through
best network and IT excellence, with
digital at the core.
We are investing in the latest network technologies,

Our network is 5G ready; we are awaiting 5G spectrum from
Big Data analytics and scalable smart-IT systems, to
the regulator to launch 5G services.
enable our customers to remain confidently
connected with a personalised, digital experience. 5G first in Lesotho
4G
launched in the DRC and Mozambique
We enhanced network performance and
capabilities, and improved the customer experience
We invested R13 billion in infrastructure across the Group, We are modernising our network to enhance customer
reinvesting more than 14% of revenue back into our network
experience and improve efficiencies such as the deployment
and IT. Major investment programmes included expanding our
of Dynamic Spectrum Sharing (DSS), which has allowed us
network coverage in 2G, 3G and 4G across all our markets, and
to efficiently utilise our spectrum assets. Spectrum is shared
introducing 5G in Lesotho, the first in Africa. We are proud that
dynamically between 2G, 3G and 4G without having to go
all our operating markets are now live with 4G.
through the complicated spectrum re-farming process.
We focused this year on improving the overall mobile network
performance and customer experience across our markets We enabled more than 87% of our 3G sites with dual carrier
with network modernisation and capacity upgrade initiatives. technology to improve data speeds, and we selectively
We continue to lead on network net promoter score (nNPS) for re-farmed our 900MHz spectrum on key sites to improve deep
network quality and network coverage in most of our markets. indoor coverage and extend rural coverage.
We delivered substantial cost savings through our Technology We enabled Enhanced Voice Services (EVS) on our network
Efficiency Programme, including efficiencies through the use to improve overall voice quality, and coverage has also
of digital technologies for smart planning, smart deployment improved in comparison to existing voice codecs.
and smart operations. We leveraged our national roaming agreement with Rain to
provide an improved data experience for our 4G customers,
South Africa and now have access to roam on more than 3 000 sites.
The network performance gap between us and our nearest
We further extended voice and high-speed competitor has reduced during the past 18 months. We are
data coverage delivering on initiatives such as Carrier Aggregation,
deployment of new 2G, 3G, 4G radio hardware, and advanced
2G remains at 99.9% of population and 3G extended to 99.5%
antenna technologies such as 4X4 MIMO and 256-QAM in
of population.
selected 4G coverage areas.
We extended 4G to more than 90% of the population.
We increased the percentage of base stations with self-
We added 139 rural sites, connecting rural communities that
provided fibre and high-capacity microwave transmission
had never previously had coverage.
to 94%, to cater for the growth in data traffic.
Further expansion of our 4G+ footprint has been limited by
We modernised our core network through the use of cloud
spectrum constraints. We remain optimistic that the regulator
technologies for improved flexibility, capacity, performance,
will soon make high-demand spectrum available.
reliability and 5G enablement.
38
Our strategy
We significantly grew our fibre to the home and business Using robotic process automation, 86 processes have been
footprint (FTTx), with over 81 200 end-points passed. We are automated across the business during the year, saving more
using various digital capabilities to improve the customer than 150 000 person-hours.
experience and become more efficient, including a
self-service app for customers, and leveraging ‘smart capex’
capabilities to improve our overall FTTx planning.
Addressing cyber security risks to maintain
customer security
We delivered operational efficiencies through our Globally and locally we have observed an increase in
‘Fit for growth’ programme cyber attacks and data breaches, with evidence of more
sophisticated attacks emanating from state-funded hackers
Over the past five years we have realised more than R3 billion
significantly raising the risk and potential impact. In response
in operational cost savings through our Technology Efficiency
to this challenge, we have established a dedicated security
programme, energy efficiencies, site lease or rental programme and have prioritised the effective execution of
re-negotiations, network infrastructure sharing and our comprehensive cyber security strategy.
procurement benefits.
To improve awareness on cyber security within Vodafone and
We have developed smart capex methodologies to improve Vodacom, a Cyber Code has been established, stipulating a
returns on investment, and our machine learning network set of ‘absolute rules’ outlining how we expect all employees
planning and commercial network optimisation process has to behave.
contributed towards cost savings.
Further to the above and aligned to the strategy, Vodacom has
As part of our Digital Technology programme, we are driving developed an ISO/IEC 27002 based Capability Maturity Model
the digital transformation of network operations by of 48 key Cyber Security Controls, which are continually being
automating many aspects of the daily operational tasks matured, maintained and measured against.
through the use of AI and RPA capabilities. These include
automating trouble ticketing of network incidents and the We continued to grow our Enterprise technology
automatic assignment of those tasks to the field teams across
the regions.
and services
We increased our network capillarity, with more Enterprise
We have been affected by the recent national load shedding
customers securely connected on-net through both fixed and
in South Africa, with the more extensive load shedding
mobile technologies such as fibre, microwave and mobile
impacting the ability of some of our back-up batteries to
3G/4G.
recharge. We are investing in alternative power systems,
including ‘intelligent Li-Ion batteries’ to curb battery theft. We maintained our OneNet Business suite, enabling
our customers to experience the benefits of a fully unified
We have delivered valuable improvements in optimising
communications service with converged mobile and
energy costs by consolidating some of the core network sites
fixed telephony.
and increasing the use of emerging technologies such as IoT
to manage electricity usage. We launched our first SDN-WAN offering in October 2018,
enabling our first Enterprise Customer with network
We continued to deepen our digital IT capabilities connectivity and control.
We have invested in enhancing our IT platform architecture, We enhanced our cloud services with the expansion of
cloud infrastructure and Big Data capabilities to improve our Infrastructure-as-a-Service (IaaS) and a SAP-certified Platform-
Consumer and Enterprise service offerings. as-a-Service (PaaS) offering.
As part of our drive to secure the best digital talent, we We also expanded our Narrowband Internet of Things (NB-IoT)
insourced 59 new software engineers to enhance our IT footprint and increased the capabilities of our IoT platform
capabilities. to support new propositions.
Through our focus on delivering the best digital customer
experience, Vodacom has been rated first in the independent Maintaining technology resilience
Gartner survey, IT for Customer (IT4C) benchmark. We have a comprehensive Operational Resilience Programme
We have improved our online performance through the in place – supported by significant investment and overseen
optimisation of our IT systems and the utilisation of our DxL by the Network Resilience Governance Board.
platform to improve overall customer experience (lower The Governance board is mandated to manage specific
latency) and stability. projects, policy requirements and good practice to improve
We have seen significant improvement in the time-to-market service resilience, thus safeguarding our network and services
of products and services through the establishment of Agile against potential interruptions caused by natural disasters,
teams across the business. technology failure or human error.
We have increased the stability and performance of our online Independent periodic audits are undertaken to assess our
web and MyVodacom app platforms, contributing to a 300% network resilience, reviewing the operational readiness and
increase in app usage and a 14% increase in the number of status of fire detection and prevention systems, evaluating the
customers completing their online purchase journeys. standards of power installations, and auditing building
Vodacom’s chatbot, ‘TOBi’, showed strong growth with more management systems across our facilities.
than 1.6 million chats offloaded from our call centres since
July 2018.
Best technology continued
International operations
Expanded our network coverage and improved

network performance
This year, we were the first operator to launch 4G in Mozambique
and the DRC, and 5G in Africa (Lesotho). We now have 7 580 2G
sites, 5 629 3G sites and 1 593 4G sites.
We have acquired additional lower frequency spectrum in
Mozambique, Tanzania and the DRC, which will be used to
deliver cost-effective 4G rollout.
We enhanced our rural communication sites in the DRC with
hybrid power solutions and upgrades.
The results of which have been a great improvement
in site availability.
New satellite bandwidth and technology providing
transmission for the Rural Communication Solution
(RCS) have improved the bandwidth and stability available
to these deep rural sites.
Despite a significant increase in traffic we achieved significant
improvements in data download speeds in all our
International operations as reflected in the improved
download speed measurements from Ookla.
We have commenced radio network modernisation projects
in our markets to ensure that Vodacom has the latest
Single Radio Access Networks available, which will also
ensure 5G readiness.
We continued with network virtualisation on our core
networks to improve scalability, capacity and availability.
Overall Network and IT resilience remains a key focus across
our markets, which is also managed via our ‘Operations
resilience programme’.
To meet the growing data demand across our markets, we
completed significant upgrades in our submarine cable
capacity, including a threefold increase in WACS capacity and
a fourfold increase in SAT-3/WASC/SAFE capacity.
We strengthened our International IT capability

across the markets
We introduced the Digital Experience Layer (DxL) platform and
functionality across our markets to support web and app
stability, and provide a key enabler for future digital products
and services.
We launched the MyVodacom app in Mozambique,
completing its successful rollout in all our markets.
All our markets now have the IT capability to support our
personalised pricing offer ‘Just 4 You’ and have made progress
in evolving contextual marketing capabilities using machine
learning.
The Vodacom M-Pesa Hub is now available across all
International markets, making it quicker and easier for
13.5 million M-Pesa customers to conduct mobile money
transactions on smartphones.
Our International Markets will be embracing the Digital
Acceleration journey this year, with Agile squads going live
in Lesotho and Tanzania.
40
Our strategy
Network NPS across our markets

Vodacom continues to show leadership with respect to network
NPS across all markets except Tanzania and Mozambique, where
customer perception continues to be influenced by aggressive
pricing offers by competitors. We have plans in place to ensure
that we close the gap between us and our competitors.
Overall network NPS
Country 2019 2018
South Africa #1 #1
Tanzania #2 #2
DRC #1 #1
Mozambique #2 #1
Lesotho #1 #1
Vision Modernising our network and investing in IT

2020
To deliver on our Vision 2020 of being a leading Deepening our Digital IT capabilities:
digital telco, we will be further modernising our
network to support the latest technologies, using
data analytics and AI to improve our planning and Continue with scaled Agile development
operations capabilities, and deepening our digital methodologies and automated testing to
IT capabilities. improve time-to-market and the overall quality of
our products and services.
Modernising our network and improving Insource critical digital skills and knowledge to
our planning, delivery and operations ensure sustainability and maturity in terms of
digital resources and capabilities.
capabilities:
Drive cloud migration and application adoption to
Our strategic commitments achieve on-demand resource optimisation,
Modernise our RAN across all of our markets, scalability and flexibility.
slowing down on legacy technologies such as 2G Strengthen our ability to harness Big Data
and 3G, growing 4G and launching 5G. analytics and machine learning to drive predictive
Invest in our network to support higher speeds, analytics and automation capabilities to enhance
lower latency and a larger number of the customer experience and improve
simultaneous connections for IoT. operational efficiencies.
Evolve our core networks, by deploying Continue to identify and realise opportunities for
technologies such as software defined networks using robotics and cognitive automation to
(SDN) and network function virtualisation (NFV) improve customer experience and optimise
to ensure that we drive on-demand scalability operations.
and flexibility of network resources. Optimise high-volume customer journeys for the
Expand our Narrowband IoT footprint and develop best possible digital experience.
new IoT applications and solutions. Improve our cyber security measures and
Continue to enable smarter planning, delivery controls, ensuring that our customers stay
and operational capabilities, using data analytics confidently and securely connected.
and AI to inform network planning, deployment
and operations.

Digital organisation
and culture
We build an organisation of the future
when digital is first for all employees,
underpinned by innovation, agility and
new skills.
shift to self-learning in 2018 has been outstanding, with 87%

We are driving a digital transformation within our
of all courses completed online, up from 60%. More than
own organisation, built on a culture that fosters
5 000 employees have received online training on Agile
organisational agility, innovation and collaborative working techniques.
working, that attracts and develops the right skills,
This year we invested R27.0 million in various leadership
talent and diversity, and that uses Big Data and development courses for middle management and senior
analytics to inform decision-making. executives, delivered in partnership with leading universities
such as INSEAD, Harvard and the Gordon Institute of
Business Science. One of our senior executive programmes,
‘Leading in a Digital Economy’, includes an experience in a
Creating an agile, future-focused organisation, number of companies in Silicon Valley.
and enhancing digital skills Further details on our internal skills development initiatives, and our external
learner and internship programmes, are provided in our Sustainability
We have maintained a strong emphasis this year on report 2019 at www.vodacom.com.
embedding Agile methodologies, including structures,
principles and tools across our South African operation, Encouraging workforce diversity
with 400 employees in five Agile Tribes engaged in various
collaborative, cross-functional ‘digital accelerator’ teams that We are committed to creating an inclusive work environment that
have been scaled across the organisation. Our Agile teams respects, values, celebrates and makes the most of the individual
have helped to improve the quality of engagement across differences our people bring to Vodacom. Our ambitious approach
business units, increased the level of Exco member inputs, focuses on promoting gender equality and developing a pipeline
and encouraged greater alignment and accountability on of diverse talent. In promoting inclusivity, Vodacom is committed
mutually agreed outcomes and performance indicators. to support LGBT+ people at work. We have established a
Vodacom was recognised across the Vodafone Group as a best successful LGBTI+ community of networks in South Africa.
practice reference on managing the change journey In our South African operation, black representation in the
associated with driving an Agile culture. workforce is 76%, with 59% at senior management level and
In our drive to access the best talent, this year we recruited 67% at Executive committee level.
66 graduates in South Africa and 46 across our International This year, of our total of R544 million invested in skills
operations; 48% of the South African recruits are female, and development for our South African workforce, R370 million
68% are black Africans. We also recruited 59 new software was invested in black employees, with R153 million
engineers, with specific experience in areas such as Big Data specifically for black female employees. We invested more
and AI, a competence that we had never employed. We than R10 million in the development of black youth living
continue to engage with leading universities, contributing to with disabilities.
the development of ICT and digital-related course content, The representation of women remains a challenge for our
and working actively to identifying emerging young talent. business and the broader telecoms sector. In South Africa,
This year, through our ‘#code like a girl’ programme we have women account for 43.4% of our workforce, with 35.6% at
successfully trained 755 girls across the Vodacom Group. senior management level. Vodacom Tanzania is at the
To develop skills internally, we invested R544 million in forefront with 41.2% women at senior management level.
employee training and development. This included a strong We maintained our emphasis on gender equality in the
focus on empowering employees with digital skills, with selection of graduates from universities in South Africa who
various training courses offered to all employees through the are placed in permanent roles. This year, of the 66 high-calibre
Vodafone University, our global online ‘e-learning’ portal. The and diverse graduates selected, 48% were female compared
42
Our strategy
to 61% in 2017. Of the total number of graduates hired in

technology, 21% are female.
We are striving to set a leading example in the industry by
implementing equal remuneration practices for men and
women at senior levels. This year the ratio of average basic
salary of men to women is 1.3 to 1.
Vision Driving a digital culture
In September 2018, Vodacom’s gender empowerment drive
was recognised amongst the best at the sixth Annual Gender
2020
Mainstreaming Awards, where Vodacom received numerous
To deliver on our Vision 2020 of being a leading digital
awards including being overall winner for ‘Investing in young
telco, we are digitising the organisation, driving the
women’ and ‘Diversity and transformation’.
adoption of Agile methods, and seeking to attract and
Engaging with employees retain the best digital talent, using the latest in
In this year’s People Survey – our independently conducted technological developments and fostering a culture of
annual employee engagement process – we achieved an innovation and high performance to deliver excellent
overall workforce survey participation rate of 79%. Although customer service with ‘simplicity’ and ‘speed’.
the response rate is on par with the high-performing peer
group that we benchmark ourselves against, we recognise Creating an Agile organisation
that there is room for further improvement. Various areas were Our strategic commitments
identified in the survey as requiring greater focus, including
boosting the employee net promotor score, driving further Introduce Agile structures that enable clear end-to-
improvement around speed and simplicity, and supporting end accountability between teams and tribes.
employee progression and recognition. Accelerate digital skills and a learning culture within
We obtained a score of 75% on the Digital index, a measure of the organisation.
the digital experience we offer our employees and customers; Simplify and automate internal processes.
this is on par with the Vodafone Group. We will be driving the Launch ‘Digital accelerators’.
digital culture agenda through various initiatives that form Further streamline our existing governance processes.
part of a comprehensive transformation plan. Establish a distinctive employee experience, and
It’s pleasing to report that in all our operating markets, promote workforce diversity.
Vodacom was recognised as a Top Employer; the Vodacom Group Embed our new purpose-led brand.
was certified as a continental employer earning us the Top
Employer Africa accolade. This year’s certification saw us Leveraging data for improved decision-making
improve our ranking to number six, up from number nine; as Our strategic commitments
well as rising up as industry leader in the ICT/Telecoms sector.
Replicate the success of our ‘Just 4 You’ offering and
Our safety performance smart notifications, taking this to scale by investing in
We regret to report the loss of life of one Vodacom contractor the people and platforms needed to accelerate our
this year, in an accident in Mozambique. In December 2018, Big Data analytics.
a contractor deployed to install an aerial fibre line was Broaden the use of Big Data across the business to
electrocuted. In an effort to ensure that an incident of this optimise deal creation and customer care, support
nature is not repeated, we are reviewing the risk assessment acceleration units, improve network management,
and safety procedures for work in proximity of electrical and drive omni-channel personalisation.
installations and we are also conducting electrical awareness Further develop our capacity to provide machine
and safety training. We continue to strive for zero injuries and learning as a service.
fatalities in all our operations.
Our lost time injury frequency rate was 0.07, a regression as
compared to prior years (0.03 in 2018 and 0.05 in 2017).
Vehicle incidents accounted for 46% of all safety incidents this
year, followed by electrical fires (12%) and criminal activity
(12%). South Africa accounted for 84% of all safety incidents,
Further details on our safety and health performance are provided in our
with all our other markets making up the balance of 16%. The Sustainability report 2019 at www.vodacom.com.
incident rate in our other markets has significantly dropped.
Our workforce Performance indicators
Number of Engagement Employee Female Black Total training

full-time index – People turnover† representation representation spend
R544
permanent survey in senior in senior
employees management† management#
7 746 78% 8% 32% 59% million

(2018: R287 million)
(2018: 7 554) (2018: 78%) (2018: 9%) (2018: 35%) (2018: 56%)
# South Africa only. † Vodacom Group (South Africa, Tanzania, the DRC, Mozambique and Lesotho).

Our brand and
reputation
We are a purpose-led organisation,
connecting for a better future by
enabling a digital society, inclusive
for all, with the least environmental
impact.
We strive to build trust with all our stakeholders and

DRC: We improved our Reputation index across all stakeholder
to remain the customer brand of choice, with a brand
groups with a significant increase in both trust and overall
that reflects our core purpose, and with a deserved
positive impression ratings. The findings highlight the need to
reputation from promoting socioeconomic
improve internal engagement with employees.
transformation and sustainability.
Mozambique: We have maintained top-of-mind reputational
leadership despite a slight decline in both trust and overall
impression. The findings highlighted the need to focus on the
general public, media and regulator stakeholder groups.
Maintaining a strong reputation Lesotho: We improved our Reputation index driven by

We track Vodacom’s brand awareness and reputation, and levels of increased trust in our brand. This positive outlook was evident
stakeholder trust, through various means. In addition to in the ratings from the general public and employee
monitoring customer net promoter score (NPS) (see page 29), we stakeholder groups. More needs to be done to enhance the
commission an independent research company to conduct an quality of engagement with the regulators and policymakers.
annual Reputation survey across all our markets to measure how
stakeholders perceive our performance against our competitors Our Reputation index performance
and peer companies.
Reputation index 2019 2018 2017
The latest 2019 results indicate that Vodacom has retained its
number one position across all markets as the reputational South Africa 7.8 8.0 7.9
leader in the telecommunications sector, with stakeholders Tanzania 8.4 8.0 8.4
rating us higher than our industry competitors. DRC 7.8 7.3 7.5
South Africa: We are the most top of mind best reputation Mozambique 7.5 8.2 8.3
brand, with improved sentiment amongst our key stakeholder Lesotho 7.7 7.3 8.1
groups. The findings highlighted the need to continue
strengthen relations with our key business accounts, NGOs,
and media stakeholder groups.
Tanzania: We improved our Reputation index, driven mainly
by improved overall positive impression and trust in the
company. We need to sustain our positive relations with key
stakeholders groups including regulators, general public and
media. More needs to be done to improve relations with key
business accounts and NGOs.
44
Our strategy
Accelerating socioeconomic transformation through digital solutions

As part of our commitment to accelerating socioeconomic transformation, we have identified and prioritised eight SDGs, where we believe
we can have the most meaningful impact. Following is an overview of recent initiatives we have undertaken that are contributing to
national developmental objectives and the global UN Sustainable Development Goals (UN SDGs):
Quality education Gender equality
Vodacom e-Learning enables learners to access curriculum- Our Mum and Baby service, launched in South Africa in 2017,
aligned content and educators’ learning materials on an offers 1.4 million registered and active users across
interactive platform, through smartphones, tablets or South Africa a free-of-charge mobile health intervention
PC browsers. with maternal, neonatal and child health information.
Our school management application, used in more than Vodacom’s Siyakha Employee Extender provides affordable
11 800 schools in Nigeria and South Africa, enables electronic connectivity to domestic workers in South Africa, 95% of
incident reporting and communication on key statistics whom are women. The package includes a smartphone,
– such as textbook availability, school need assessments, insurance and funeral cover, and access to Vodacom’s Video
school feeding, enrolment and attendance – contributing to Play and Mum and Baby platforms.
improved resource availability and better governance. In partnership with the South African government, we have
Our flagship mobile education programme mEducation, established a 24-hour call centre providing counselling to
developed in partnership with the South African government, victims of gender-based violence; we have also supplied
provides ICT equipment and free Internet access to 3 000 schools laptops to ‘safe door shelters’ to empower gender-based
and 92 teacher centres; we have trained over 100 000 teachers violence survivors with ICT skills.
on using ICT in the classroom.
Our Instant School initiative is a free education platform
providing digitised educational material for primary and Good jobs and economic growth
secondary schools learners’ across Tanzania; we also support
educational initiatives in the DRC, Mozambique and Lesotho.
The Vodacom Youth Academy has positively impacted
1 333 young unemployed people by providing training in
Good health and wellbeing ICT-related courses, and transitioning selected learners into an
entrepreneurship programme.
Our ‘Code like a Girl’ one-week training programme provided
To address inefficiencies in the medicine supply chain and coding and life skills training to teenage girls from
minimise stock-outs of vital supplies, we have partnered in impoverished communities in South Africa, Mozambique,
developing the Stock Visibility Solution (SVS), enabling health Tanzania, the DRC and Lesotho.
clinic dispensaries to monitor stock levels, send treatment We have intensified our efforts to support small, medium, and
plans to patients, and manage patients’ medical records micro-enterprises and the broad-based transformation of our
through a custom-built mobile application. Since its launch in supply base, with encouraging results. PG 47
2014, more than 19 million stock level reports have been
submitted through SVS.
We have partnered on the AitaHealth application, a planning Industry innovation and infrastructure
tool that allows Community Health Workers to collect
health-related information and link it into health system
We currently have 4.7 million active connections providing loT
referral and management structures. The application has
solutions in the transportation, industrial, energy, residential,
assessed more than 1 million individuals for health risks and
property and health care sectors, covering end-to-end services
been used by more than 2 000 community health workers.
across the full IoT value chain.
Vodacom's Mum and Baby platform, launched as part of our
In keeping with our commitment to increase rural coverage,
Siyakha platform, has helped more than 1.4 million
this year we added 139 deep rural sites, connecting rural
subscribers access vital maternal healthcare information,
communities that had never previously had coverage.
through free access to videos and SMS’s covering a range of
health topics. Through our ground breaking M-Pesa product in Kenya,
Tanzania, the DRC, Mozambique and Lesotho, we provide
Our mVaccination initiative is a health record solution that has
affordable access to mobile financial services to more than
increased the coverage and clinical management of
36 million customers, many of them women in remote
immunisation programmes in Nigeria, Mozambique and
rural areas.
Tanzania, with more than 95 000 patient records created and
315 000 immunisations administered.

Our brand and reputation continued
Sustainable cities and communities Climate action
In South Africa, our digital platform Thetha Nathi (‘speak to We have 3 500 radio sites that are either free-cooled or built as
us’) facilitates conversations between citizens and outdoor cabinet sites, and 955 solar-operated sites across the
municipalities, enabling citizens to report service delivery Group, delivering valuable energy efficiency savings and
issues, request municipal services and track progress, while reduced greenhouse gas emissions.
also notifying the respective local government which receives We have driven various energy efficiency and renewable
and responds to the data analytics. energy initiatives in many of our offices.
Through our cloud-based web and mobile software Connected Our machine-to-machine LiveTrack solution tracks vehicles in
Farmer platform, developed in partnership with GIZ, we are real-time, reducing carbon emissions by enhancing
providing an IoT-based solution, linking thousands of responsible driving and increasing fuel efficiency.
smallholder farmers to the agriculture value chain, improving
agriculture productivity, addressing food security, creating jobs
and increasing incomes in the agriculture sector. Partnerships
Vodacom’s Smart Utilities Management Service has installed
42 972 electricity and water smart meters in municipalities in
five provinces, enhancing revenue collection, improving All of our activities in the above areas involve partnerships of
customer satisfaction and improving energy and water usage some sort – with business peers, government agencies,
across these regions. technology providers, civil society organisations, academia
and/or community representatives – aimed at identifying and
implementing innovative ways of using mobile and data to
make a significant social contribution.
Vision Connecting for a better future

2020
To deliver on our core purpose – connecting for a better Digital society:
future – and to maintain the strength of Vodacom’s purpose- Digital innovation and IoT solutions that drive positive
driven brand we have identified three broad focus areas social change by enabling health and wellbeing,
where we are seeking to drive transformational change, and promoting agriculture, digitising municipalities, and
contribute meaningfully to the SDGs: enabling enterprise development.
Inclusion for all: Enhancing access to financial services, especially
through our M-Pesa and M-Pawa offerings that provide
Bridging the digital divide through our investment in
affordable access to financial services, opening up
extending networks to rural areas, facilitating access to
valuable economic opportunities, including particularly
affordable smartphones, and providing low-cost
for rural women.
platforms such as Siyakha.
Democratising education by helping to digitise the Planet – our initiatives include:
education sector, providing free access to online Climate-smart networks and solutions, reducing the
learning materials, improving connectivity in schools, greenhouse gas emissions of our network and
and supplying digital school management solutions. infrastructure, and providing solutions that allow
Empowering the youth through our digital skills training customers to be more energy efficient.
initiatives, our youth academy and entrepreneurship Water-wise products and practices, driving improved
programmes, and our segmented youth platform water stewardship across our value chain.
(NXT LVL).
Reducing e-waste in partnership with key suppliers and
Reducing the digital gender gap through segmented customers.
offerings such as Vodacom Mum and Baby and Siyakha
Employee Extender, as well as our CSI initiatives that
promote female health and combat gender-based
violence.
46
Our strategy
Vodacom Group 25 years of Transformation

Our unwavering commitment to BBBEE resulted in Vodacom South Africa achieving a Level 1 BBBEE status. We were also the only
telecommunications company to receive the ‘25 years of Democracy Transformation Champion Award’ from Top Media, on 11 April 2019.
Vodacom South Africa exceeded its target and achieved a Level 1 BBBEE status, the highest contributor status on the scorecard, achieved at a
direct cost to company of R2.95 billion. Our subsidiary Nexio (Pty) Limited (previously Stortech) retained its Level 1 status, with XLink
improving from Level 3 to a Level 2. This resulted in the Group having a significant improvement from Level 4 to Level 2.
BBBEE results for Vodacom Group Ownership: On 14 September 2018, Vodacom Group Limited concluded a
R16.4 billion broad-based Black Economic Empowerment (BBBEE)
We achieved significant improvement this year in scores across all the ownership transaction. This deal was the largest BBBEE deal in the ICT
elements other than procurement, resulting in an overall increase in Sector and resulted in the black ownership percentage increasing from
19.36% to 29.60%.
score of 9.66 points.
Management control: The Group exceeded the previous year’s score of
Achieved Achieved 15.72, scoring 17.39 from a possible 23. This was as a result of improving the
gender profile of our executive committee and driving transformational
Target points points changes in the occupational levels under employment equity.
Scoring element points 2019 2018
Skills development: Our consolidated training spend increased from
Ownership 25 21.33 16.20 R248.0 million to R283.4 million, with R12.7 million invested in the
development of black youth living with disabilities. This was R4.4 million
Management control 23 17.39 15.72 more than the prior year and represented 6% of our payroll. In addition,
120 of our 161 learners secured full time employment; this resulted in an
Board representation 8 5.83 5.83 impressive total score of 19.60 out of 20 points, together with 3.72 out of
5 bonus points for the number of black youth absorbed into employment.
Top management representation 5 5.00 4.33
Enterprise and supplier development: This element has three sub-sets:
Employment equity 10 6.56 5.56 procurement, supplier development (@ 2% net profit after tax (NPAT) spend
target), and enterprise development (@ 3% NPAT spend target). Under
Skills development 20 23.32 19.55 procurement, Vodacom’s commitment is demonstrated in the shift of
spend to BBBEE-status suppliers and black-owned suppliers.
Enterprise and supplier development 50 43.65 44.79
Supplier development realised R164.2 million spend, targeted on
developing SMMEs within Vodacom’s supplier base; this included investing
Procurement 25 19.54 20.55 R17.7 million towards the transformation of our retail franchisee base,
Supplier development 10 7.11 7.54 which resulted in an additional 27 Vodacom shops changing ownership to
Enterprise development 15 17.00 16.70 black owners during the year. Under enterprise development, more than
R351.4 million was invested in developing black-owned ICT SMMEs outside
of Vodacom’s business. The collective score for this element was 43.65 out
Socioeconomic development 12 12.00 11.77 of 50.
Total 130 117.69 108.03 S

ocioeconomic development: The Group obtained full points with an
investment of R184.4 million.
Our Sustainability report 2019

(incorporating the report of the Social and Ethics Committee)
Vodacom’s separate Sustainability report 2019 provides a more detailed review
of the activities that we are taking to accelerate socioeconomic transformation
in the markets in which we operate. The report reviews the progress we have
made in ‘empowering a connected society’, reflecting on our performance in
implementing eight of the UN Sustainable Development Goals, and assesses
our activities in ‘being a leading digital company’ by ensuring our operations
are responsible, ethical and accountable.
The Sustainability report is available on
our website: www.vodacom.com
16700_1_1-31_VC SR2019_Proof 3_30 May
Sustainability report 2019

Sustainability
Report
2019
for the year ended 31 March 2019
We connect for a better future.

Q with
A the Head of&
Strategy Yolanda Cuba
whereas our product or service planning is much shorter. We

create value for our stakeholders by using our world-class network
to provide diversified and innovative solutions and services to our
customers at scale. Therefore, as we look to the future, we will
continue to focus on optimising our network investment while
we build innovative home products and services that create
customer stickiness and reward customers. With our Vision 2020
soon coming to an end, we will be commencing another
three-five-year strategy cycle, building on the foundations
we created with Vision 2020.
Q Looking ahead to the next three to five years, what are

the key challenges and opportunities that have informed
Vodacom's strategy?
A As we continue our evolution towards being a digital tech

company, there are some very exciting opportunities for Vodacom
to consider. In addition to growing our current digital services
offerings through platforms – in areas such as video, music and
gaming – we see significant opportunities in financial services.
Building on the material success we have enjoyed with M-Pesa,
You are newly back in a role which insurance and lending, we are looking to further disrupt in these
you occupied previously. Let’s get areas, including driving growth in our new payments platform. Our
insurance business in South Africa has grown significantly in the
a glimpse of what you think of last two years, and we are looking to expand this further off the
Vodacom’s opportunities beyond 2020. back of the unique set of capabilities we have developed. We also
see an opportunity in the lending space, addressing areas of our
Q A key objective of this Integrated report is to explain

Vodacom’s strategic framework for long-term value creation.
economy where consumers and business have traditionally been
under-served, and we will be expanding our focus in the Enterprise
space, including particularly for SMEs, the economic engine in all
Given that Vodacom operates in a rapidly changing sector, our markets. Through our enhanced IoT offerings and multi-cloud
what does the ‘medium term’ and ‘long term’ mean in strategy, including our partnership with Amazon Web Services
practice for Vodacom? and our impending ownership of IoT.nxt, we will be looking to
A
be the enterprise-digitalisation partner of choice.
To deliver on these ambitions there are of course certain
Given recent advances in technology, the ‘clock speed’ in
challenges that we will need to address, some of which are
the telco sector has shown a propensity to speed up quite
beyond our control. We are hopeful, for example, that the
dramatically, not just in terms of network technology, but also at
well-documented spectrum challenge in South Africa will be
the IT layer, especially as IT has become increasingly important in
remedied over the coming months. Some of the challenges within
underpinning the services we offer to customers. In this context of
our control include the pace of driving digital transformation
rapid change, we generally see the short term as being less than
within Vodacom and embracing new ways of working. We have
12 months, the medium term in the region of one to three years,
embarked on an ambitious journey of internal transformation to
and the long term as anything beyond three years. Our traditional
ensure that we are sufficiently prepared for the Fourth Industrial
network planning is typically between three and five years,
Revolution.
48
Our strategy
Vodacom’s International markets provide significant growth areas, Through these and other business-led initiatives, Vodacom is not
with latent demand for smartphone growth on our recently only making a valuable contribution to the UN Sustainable
established 4G networks prevalent in all of our markets. We will Development Goals, but is also delivering important business
build on the strength and success of the M-Pesa platform and benefits, a win-win combination that underpins our purpose-led
network of agents, as we evolve beyond person-to-person money commitment.
transfers to include enterprise, financial services and mobile
commerce.
Following our ground-breaking launch of 5G in Lesotho this year, we
are continuing preparations for broader uptake of 5G. There are some
Q You’ve made a compelling case for your recent
strategic focus on growing financial and digital services. Are
very exciting opportunities and use-cases associated with bringing you exploring other opportunities to reposition the business?
fibre-like speeds and low-latency to mobile broadband, that can be
used to spur innovation in Africa over the coming decade.
A As with any organisation facing the potential for business-
Q
model disruption associated with digitalisation, Vodacom has no
choice but to critically assess the direction it is taking, and to
M-Pesa is an excellent example of delivering question whether our current business model is fit-for-purpose. As
significant societal value and financial value. Do you see we have grown, the typical pressures of product commoditisation
other business opportunities that assist in delivering the UN have required us to look to alternative revenue sources to sustain
Sustainable Development Goals? our growth. This has been a fascinating journey in which we have
A
explored a suite of digital services, including, for example, financial
services, lifestyle offerings in video, gaming and television, and the
As a purpose-led organisation, Vodacom has prioritised the innovations in agriculture, health and education I mentioned earlier.
need to ‘connect for a better future’. We believe that everything
we do should have a positive impact on society. M-Pesa of course Given the size of our customer base, we have a particular
is a widely known product that has empowered many people opportunity to explore the possibility of the network effects of
across Africa, including in particular rural women, by allowing platforms, whether it be e-commerce, marketplaces, IoT platforms,
them to transact and transfer money. In addition to M-Pesa we platforms for SMEs and so on. This also allows for new avenues for
have been exploring and testing new products and services across advertising revenues, which when coupled with class-leading
a range of areas that will deliver significant societal benefits across Artificial Intelligence technology supported by our Big Data
our markets. These include: analytics platform, creates a powerful opportunity for customer-
specific advertising. Our stated intent to become a digital tech
In agriculture, our Connected Farmer solution, which services
company sets the tone towards having an increased focus on
well over a million small-scale farmers, connecting them with platforms; we believe that this will bring significant benefits to the
the agriculture value chain, improving productivity, addressing Group, in terms of being able to play over-the-top and not be
food security, creating jobs and increasing incomes in limited to countries where we have a physical network.
the sector;
In health, our Stock Visibility Solution that enables healthcare

Delivering on these ambitions requires a renewed focus on
professionals in rural areas to utilise secure mobile devices to ensuring that we are set up for success, including by securing and
send treatment plans to patients, manage patients’ medical retaining the best talent and skills in the sector across a multitude
records and monitor the availability of dispensary stocks in of domains.
real time; Vodacom finds itself in an exciting and positive position: at the
In education, the significant investments we have made
centre of the need for countries across Africa to make a success of
supporting teacher centres and learning facilities, providing the Fourth Industrial Revolution. Not only is connectivity central
free connectivity for university students, developing online to this, but the associated opportunities will create significant
education platforms, and using digital platforms to improve relevance for Vodacom and the countries we operate in. To realise
resource availability, effective management and overall these opportunities, Vodacom will continue to drive its core
governance at schools; and business, and ensure that connectivity becomes increasingly
On the environment, we continue to explore opportunities to
accessible and affordable, at a quality that is unrivalled and
use IoT and other digital solutions to drive improved supported by innovative products and services that positively
environmental performance in our network and across our impact lives across Africa.
value chain.

CFO’s
statement
Till Streichert
Growth in South Africa slowed, impacted by low GDP growth,
The Group performed well this constrained consumer spending and deliberate pricing
year, supported mainly by transformation to lower the cost to communicate. Group
revenue increased 3.2%* to R90.1 billion and operating profit
strong growth in the increased by 7.4% to R24.5 billion, excluding the BEE costs.
International operations. Safaricom contributed R2.8 billion to profit, after deducting the
amortisation of fair valued assets.
This year, we completed the largest-ever BEE ownership deal in
the telecommunications sector, which resulted in the issue of
114.5 million new shares at Group level, with a number of
financial implications. We also adopted IFRS 15 – Revenue from
Contracts with Customers, which impacted our reported
numbers, previously based on IAS 18. The most significant
impact was on total revenue and service revenue, both of which
were R3.4 billion and R4.3 billion lower for the current year than
under IAS 18; this is as a result of connection incentive
commissions being recognised in service revenue and not
expenses. Although we have adopted this accounting standard
in line with the rest of the industry, the dynamics of the
underlying business remain the same. However, some of our
performance ratios that use revenue as a denominator are
naturally affected.
South Africa delivering under economic

uncertainty and regulatory effects
In South Africa, low economic growth, high unemployment and
higher fuel and electricity prices contributed to low consumer
confidence and reduced spending. Despite the challenging
economic environment, service revenue increased 2.1% against
a backdrop of deliberate pricing transformation, most notably in
data. Our personalised offerings helped us to attract 1.5 million
new customers, with 43.2 million customers now on our network.
Vodacom Business delivered good growth, with service revenue
up 4.8% to R14.7 billion. Our fixed-line service revenue increased
24.7%, underpinned by solid growth in connectivity, cloud and
hosting and IPVPN revenues.
We are excited about the opportunities from our Financial
services business, which has already contributed R1.6 billion of
revenue, growing at 67.1%. Airtime Advance is now used by just
under 10 million customers.
In March, we implemented the End-User and Subscriber Service
Charter Regulations and went a step further by reducing
out-of-bundle rates by as much as 50%, further reducing
out-of-bundle revenues, which negatively impacted data revenue
growth for the year. Going forward, I expect this to rebound as the
underlying drivers of growth are healthy: data usage was up 35.6%
in the year, and with less than half of our customers currently
using data there remains significant further upside potential.
50
Our performance
We have invested in enhancing our digital capabilities, utilising as part of the BEE deal. Headline earnings per share (HEPS)
Big Data, Artificial Intelligence and Robotic Process Automation decreased 6.6%. The main impacts of the BEE deal were from
(RPA) to increase efficiency. We are finding smarter ways to work the inclusion of the non-cash non-recurring day one IFRS 2
and invest, for example by using ‘smart capex’ technologies to charge of R1.4 billion, as well as transaction and finance costs of
improve decision-making RPA to automate mundane processes, R295 million. Excluding these costs HEPS increased 4.2%,
and our chatbot ‘Tobi’ to currently process around 10 000 calls boosted by Safaricom.
daily with no waiting time for our customers.
We have further strengthened our balance sheet by minimising
the impact of foreign currency volatility by reducing our
International increasing momentum exposure to foreign currency debt, with 92% of our debt now
The International operations achieved double-digit growth, denominated in South African rand. The BEE transaction
accelerating delivery on the strategic focus areas of data increased the net debt to EBITDA slightly to 0.7 times, with
monetisation and M-Pesa. The DRC benefited from a stable enough room to leverage, should we require.
macroeconomic environment and peaceful elections. Tanzania
continued to execute on their strategy, delivering strong growth We remain a major contributor to value creation in our countries
despite intense competition. Mozambique performed of operation. This year we contributed R20.1 billion as a cash
exceptionally well during the year, particularly given the context contribution to public finances.
of two cyclones that hit the country within six weeks of each
other towards the end of the financial year. We mobilised efforts Looking ahead
to restore communication services as quickly as possible, In a fast changing telecommunications landscape, where the
enabling customers to get in contact with affected family boundaries between mobile and the wider digital ecosystem
members and assisting with aid relief efforts. Lesotho was continue to shift, our Vision 2020 strategy has positioned us
impacted by the macroeconomic effects from South Africa, as well, as we seek to diversify our business and keep ahead of the
well as the VAT increase, but still managed to perform very well, changes.
and was the first country in Africa to have an operational 5G service. Our balance sheet remains strong, providing us with sufficient
We now have 4G in all our operations. We will be building on capacity to leverage and realise potential merger and acquisition
this benefit to drive data monetisation across our markets by opportunities to increase shareholder value. We are well placed
further expanding our networks, increasing access to affordable to realise the benefits of Big Data and Artificial Intelligence,
smart devices, and providing more reasons to consume data which are key to driving future growth and digital transformation.
through our content offerings and personalised pricing through Through RPA, we will continue to look at ways to increase
‘Just for You’. revenue, reduce costs, improve capital efficiency and improve
customer experience.
The strong momentum in M-Pesa resulted in M-Pesa revenue
growing 32.2% to R3.1 billion; it now contributes 15.8% to We have adopted IFRS 16 from 1 April 2019, which will enhance
International service revenue. We concentrated our efforts on transparency on the Company’s financial position and enhance
growing the existing base and expanding the ecosystem beyond comparability between companies that lease assets and
person-to-person money transfers to include innovative new companies that buy assets. As the adoption of IFRS 16 is yet to
products and services in enterprise, financial services and mobile be concluded, we are providing a range in respect of the
commerce. standard’s impact in our financial statements.
Cost optimisation through our ‘Fit for growth’ cost containment We have updated our medium-term targets, and now expect a
programme has enabled the International operations to maintain mid-high single-digit growth rate in operating profit on average
healthy margins, with significant savings achieved from reduced for the next three years. As this target is based on operating
commission by selling airtime through M-Pesa, coupled with the profit instead of EBIT, we also capture our share of the growing
benefits from network cost savings obtained through site sharing. associate profits generated by Safaricom. We maintain Group
service revenue growth at mid single-digit and increase Group
Safaricom capital intensity slightly from 13% to 14.5% of Group revenue to
account for the change in revenue reporting under IFRS 15.
Safaricom reported solid growth despite macroeconomic
pressures. Service revenue increased 7.0% and EBIT grew 13.1%, Safaricom has proposed an ordinary dividend of KES50.8 billion
underpinned by strong growth of 7.7% to 31.9 million customers. as well as a special dividend of KES24.84 billion for approval at
M-Pesa revenue grew 19.2% and now contributes 31.2% to service the AGM in August. Vodacom’s share amounts to R2.3 billion and
revenue, up from 28.0% a year ago. Although data revenue growth R1.1 billion respectively, net of withholding tax. The Board
was slightly softer at 6.4%, the opportunity exists for future growth intends to distribute the special dividend, net of withholding tax,
by increasing penetration and usage of mobile data. to shareholders at the interim results announcements later in
the year.
Delivering shareholder returns in uncertain times In closing, I would like to thank the Board for their continued
Emerging markets have been under pressure as a result of the guidance throughout the year and look forward to transforming
US and China trade war and Brexit uncertainty. Coupled with the our company to deliver our purpose to connect for a better future.
economic pressure and regulatory uncertainty in South Africa,
this has negatively impacted investor sentiment, resulting in
sell-offs in emerging market assets, with total shareholder return
for the Group dropping 22.4% for the year.
We increased the dividend available for distribution by 4.0%, Till Streichert
which is pleasing. The dividend of 795 cents per share, however, Chief Financial Officer
is down year-on-year by 2.5% due to issuing 114.5 million shares 31 May 2019

Tax and our contribution
to public finances
Our commitment to acting with integrity and transparency operators pay on top of the general tax contributions. It is proven
remains core to our approach to tax. that these additional taxes represent a limitation to many operators
in expanding the benefits of connectivity and financial inclusion
As a publicly listed company we have obligations to a very wide
to society as a whole. The Group has seen the increase in these
range of stakeholders which ranges (directly and indirectly) from
pension and long-term investment funds to individual sector-specific taxes on the African continent and thus we continue
shareholders, all seeking to maximise investment returns. An to engage with many stakeholders from NGOs, industry bodies,
increase in taxes paid is often interpreted as a reduction in the professional finance and accounting communities, policymakers
profit available to invest in the future growth of the company or in and tax authorities to support the operation of fair, effective and
returns to shareholders. The interest of the pensioner, saver, predictable tax regimes that balance the interests of all parties.
shareholder and investor could therefore be seen to be in conflict We disclose our tax contributions to the governments in the
with the interest of the public finance system. countries in which we operate, as we believe that it is an important
In our view it is however possible to achieve an effective balance way to demonstrate that it is possible to achieve this effective
between a company’s responsibility to society as a whole through balance.
the payment of taxes (and other government revenue raising As a major investor, taxpayer, employer and purchaser of
mechanisms), and its obligations to its shareholders.
local goods and services we contributed R20.1 billion
It is important to note that many countries impose telecom-specific (2018: R20.8 billion) to the public finances of governments
taxes on mobile services and devices which consumers and in the jurisdictions in which we operate.
Cash contribution to public finances
R9.4 billion
direct tax contribution
+ R9.2 billion
indirect tax contribution
+ R1.5 billion
direct non-tax contribution
= R20.1 billion
The Group’s external revenue1 (as per IFRS 15) generated was
R86.5 billion (2018: R86.7 billion) on which a profit before tax
(excluding dividends) of R22.1 billion2 (2018: R22.1 billion) was
made. We paid R0.28 (2018: R0.28) in corporate tax alone for every
R1 we generated in profit in our countries of operation in 2019.
Total tax contributions made to governments across our
countries of operation
Country Rm
South Africa 13 157
Tanzania 2 338
DRC 2 402
Mozambique 1 166
Lesotho 331
Kenya 281
Mauritius 137
Nigeria 101
United Kingdom 44
Zambia 32
Ghana 33
Cameroon 11
Ivory Coast 9
Angola 3
For more information and the details per country of operation

read our Public finances report 2019 on www.vodacom.com.
(Available in Q3 FY2020)
1. External revenue is the sum of revenues generated from transactions with
independent parties (all transactions between the Vodacom and Vodafone Group
entities were excluded).
2. Profit before tax represents the total profit before tax in each country, excluding
dividend income less expenses.
52
Our performance
Condensed consolidated income statement

for the year ended 31 March
2019 2019 2018 Revenue increased 4.3% (3.2%*), as a result of strong

Rm IFRS 15 IAS 18 IAS 18 growth in International, especially in data and M-Pesa
revenues, offsetting a slowdown in South Africa.
Revenue 86 627 90 066 86 370
Direct expenses (31 427) (34 931) (33 669) Group total expenses increased 5.2% to R56.3 billion,
Staff expenses (6 026) (5 986) (5 509) which includes a net trading foreign exchange loss of
Publicity expenses (1 920) (1 920) (1 913) R66 million (2018: profit of R56 million). These costs
Other operating expenses (13 462) (13 462) (12 441) also include R124 million in BEE-related transaction
Share-based payment charges (1 404) (1 404) (130) costs. Growth was outside of our targeted objective of
Depreciation and amortisation (10 642) (10 642) (9 959) keeping cost growth below revenue growth, mainly as
Impairment losses (30) (30) (4) a result of subdued revenue growth in South Africa.
Net profit from associate and
joint venture 2 774 2 824 1 507 Once-off IFRS 2 BEE charge.
Operating profit 24 490 24 515 24 252 The Group’s interest in Safaricom is accounted for as
Profit on sale of associate – 734 an investment in associate. This includes the
Finance income 630 630 703 amortisation of fair valued assets on acquisition of
Finance costs (3 008) (3 008) (2 811) R624 million.
Net loss on remeasurement
and disposal of financial Net finance costs increased 12.8%, mainly due to
instruments (23) (23) (785) the finance costs for the BEE deal and increase in
net interest paid on bank accounts. The average cost
Profit before tax 22 089 22 114 22 093 of debt was slightly down to 8.2% from 8.3%
Taxation (6 557) (6 672) (6 531)
Net profit 15 532 15 442 15 562 FEC mark-to-market revaluation gains and gains on the
remeasurement of foreign cash balances slightly offset
Attributable to: by the remeasurement of a derivative relating to the
Equity shareholders 14 822 14 727 15 344 agreement to acquire shares in Vodacom Tanzania.
Non-controlling interests 710 715 218
The tax expense of R6.7 billion was 2.2% higher than
15 532 15 442 15 562
the prior year (2018: R6.5 billion) mainly due to the
increase in taxable income and an increase in
withholding tax suffered on dividend income received.
2019 2019 2018
Cents IFRS 15 IAS 18 IAS 18 Increased mainly from the contribution from
Safaricom and strong performance in the
Basic earnings per share 872 867 947 International operations.
Diluted earnings per share 856 851 919
The reported figures for the year ended 31 March 2019 have been impacted by the adoption of IFRS 15 on 1 April 2018.
The difference between IFRS 15 and IAS 18 is noticeable in the contract segment where goods and services, which are bundled and
delivered under a single contract, are identified as separate performance obligations. Revenue is recognised at the point in time the Group
delivers the goods or renders the service to the customer.
One of the key changes is the recognition of equipment revenue when control of the device has either transferred to the customer or the
intermediary. Previously, equipment revenue on transfer of such a device to a customer was limited to the cash received on inception of
the contract. Device revenue contract assets are recognised at inception, which will be recovered over the term of the contract. During the
year, R634 million (of which R563 million relates to South Africa) was reclassified from service revenue to equipment revenue, with total
revenue remaining largely unchanged with regards to this element.
In addition, qualifying incremental costs of obtaining and fulfilling a contract, previously expensed on payment, is now capitalised as
deferred customer acquisition cost and amortised over the lifetime of the contract (typically 24 months). Amortisation charges of
R3.5 billion (relating to South Africa) were netted against service revenue during the current period, as they are considered to be customer
discounts under IFRS 15.
Note:
The condensed consolidated financial statements were extracted from the full audited consolidated annual financial statements (AFS). The 2019 IAS 18 column in the condensed
consolidated income statement has not been extracted from the AFS and is for information purposes only as the commentary in this report is based on IAS 18. The condensed
consolidated financial statements have not been reviewed or audited by the Group external auditors. The AFS are available on www.vodacom.com.

Condensed consolidated statement of
comprehensive income
2019 2018
Rm IFRS 15 IAS 18
Net profit 15 532 15 562
Other comprehensive income
Foreign currency translation differences, net of tax1 11 879 (5 867)
Mark-to-market of financial assets held at fair value through Other Comprehensive Income, net of tax 10 –
Total comprehensive income 27 421 9 695
Attributable to:
Equity shareholders 25 709 9 943
Non-controlling interests 1 712 (248)
27 421 9 695
1. Other comprehensive income can subsequently be recognised in profit or loss on the disposal of foreign operations.
54
Our performance

financial position
as at 31 March
2019 2018
Rm IFRS 15 IAS 18 Increase from net additions R10.3 billion and
foreign exchange gain R1.9 billion, partly offset
Assets
by depreciation of R8.3 billion.
Non-current assets 113 897 96 543
Property, plant and equipment 43 989 40 529 Includes R3.8 billion net additions mainly due
Intangible assets 10 845 9 073 to software purchases as well as spectrum
Financial assets 632 430 acquisitions in Mozambique, the DRC and
Investment in associate 54 292 44 076 Tanzania, a foreign exchange gain of
Investment in joint venture 7 6 R273 million and amortisation of R2.3 billion.
Trade and other receivables 2 137 724
Finance receivables 1 699 1 320 Increase due to share in Safaricom’s profit of
Tax receivable 183 106 R2.8 billion, foreign exchange translation gain
Deferred tax 113 279 of R9.8 billion, offset by a decrease of
R2.5 billion dividends received.
Current assets 39 746 34 822
Financial assets 6 391 4 532 Increase due to adoption of IFRS 15 and the
Inventory 1 413 1 243 recognition of contract assets and deferred
Trade and other receivables 17 649 14 819 customer acquisition costs.
Non-current assets held for sale 619 14
Finance receivables 2 251 1 463 Utilisation of assessed tax losses in Vodacom
Tax receivable 357 213 Payment Services.
Bank and cash balances 11 066 12 538
Increase in deposits from M-Pesa customers
Total assets 153 643 131 365 and increase in investments in Tanzanian
Equity and liabilities treasury bills.
Fully paid share capital 57 073 42 618
Certain Vodacom Business Africa subsidiaries
Treasury shares (16 387) (1 792)
held for sale.
Retained earnings 32 670 28 731
Other reserves 4 636 (5 089) Issuance of ordinary shares in relation
Equity attributable to owners of the parent 77 992 64 468 to the new BEE transaction.
Non-controlling interests 8 396 6 184
Movement as a result of foreign currency
Total equity 86 388 70 652 translation.
Non-current liabilities 29 084 28 130
Issuance of R4.7 billion preference shares by
Borrowings 23 641 24 071
YeboYethu to fund the new BEE transaction and
Trade and other payables 820 978
repayment of a R2.6 billion loan to Vodafone.
Provisions 329 388
Deferred tax 4 294 2 693
Increase due to deferred tax raised on the
Current liabilities 38 171 32 583 contract assets and deferred customer
acquisition costs recognised as part of IFRS 15.
Borrowings 10 603 8 220
Trade and other payables 26 607 23 958 Mainly due to increase in deposits from M-Pesa
Liabilities directly associated with customers.
non-current assets held for sale 286 –
Provisions 218 161 Certain Vodacom Business Africa subsidiaries
Tax payable 340 221 held for sale.
Dividends payable 117 23
Total equity and liabilities 153 643 131 365

1. The reported figures for the year ended 31 March 2019 have been significantly impacted by the
adoption of IFRS 15 on 1 April 2018.

changes in equity
Equity
attributable Non-
to owners of controlling
Rm the parent interests Total equity
31 March 2017 – Audited 24 063 (1 067) 22 996
Total comprehensive income 9 943 (248) 9 695
Dividends (13 009) (393) (13 402)
Shares issued on acquisition of subsidiary and associate net of share issue cost 42 618 – 42 618
Repurchase, vesting and sale of shares (269) – (269)
Share-based payments 138 – 138
Changes in subsidiary holdings 984 1 788 2 772
Acquisition of subsidiary and associate – 6 104 6 104
31 March 2018 – Audited 64 468 6 184 70 652
Adoption of IFRS 15 and IFRS 9 3 187 (57) 3 130
1 April 2018 67 655 6 127 73 782
Total comprehensive income 25 709 1 712 27 421
Dividends (13 982) (473) (14 455)
Repurchase, vesting and sale of shares (352) – (352)
Share-based payments 1 862 – 1 862
Broad-based black economic empowerment transaction 1 669 – 1 669
Share-based payments – other 193 – 193
Changes in subsidiary holdings (2 900) 80 (2 820)
Shareholder's loan converted to equity – 950 950
31 March 2019 – Reviewed 77 992 8 396 86 388
56
Our performance
Condensed consolidated statement of cash flows

2019 2018
Rm IFRS 15 IAS 18
Cash generated from operations 34 575 32 299
Tax paid (6 535) (6 194)
Net cash flows from operating activities 28 040 26 105
Cash flows from investing activities
Additions to property, plant and equipment
and intangible assets (13 653) (10 825) Increased capital expenditure and payments for
Proceeds from disposal of property, plant and spectrum acquisitions.
equipment and intangible assets 467 187
Acquisition of subsidiary and associate (net
of cash and cash equivalents acquired) – (410)
Proceeds from disposal of associate – 797
Dividends received from associate 2 466 1 988 Share of Safaricom dividend.
Finance income received 943 859
Other investing activities1 (1 411) (1 122)
Net cash flows utilised in investing activities (11 188) (8 526)
Cash flows from financing activities R4.7 billion preference shares issued to third
Borrowings incurred 5 080 1 124 parties to fund the BEE transaction.
Borrowings repaid (3 026) (107)
Finance costs paid (3 179) (3 182) Mainly R2.6 billion Vodafone Luxembourg loan
Dividends paid – equity shareholders (13 978) (13 010) repaid.
Dividends paid – non-controlling interests (473) (393)
Repurchase and sale of shares (352) (269)
Mainly due to the new BEE transaction and the
Changes in subsidiary holdings (3 449) 2 770
payment of the R3.3 billion special dividend.
Net cash flows utilised in financing activities (19 377) (13 067)
Net (decrease)/increase in cash and cash
equivalents (2 525) 4 512
Cash and cash equivalents at the beginning
of the period 12 538 8 873
Effect of foreign exchange rate changes 1 053 (847)
Cash and cash equivalents at the end
of the period 11 066 12 538
1. Consists mainly of the movement in restricted cash deposits of R1 142 million
(31 March 2018: R821 million) as a result of M-Pesa related activities.

Our segment performance
South Africa
Data pricing transformation continues, to the benefit of our customers, with a number of changes
that increase affordability and improve spend control. This has helped our more than 43 million
customers get connected more affordably and in the way that is most suitable to their needs.
Year ended 31 March Overall data usage drivers were encouraging. Data traffic was up
35.6%. Active smart devices on the network were up 7.6% to
South Africa 2019 2018 % change
19.9 million, of which 10 million are 4G devices. Average usage on
Service revenue (Rm) 55 749 54 622 2.1 these smart devices has improved 23.2% to 966MB.
Revenue (Rm) 71 325 69 967 1.9
EBITDA (Rm) 27 717 28 088 (1.3) Our platform strategy, designed to stimulate reasons to consume
EBIT (Rm) 20 244 21 124 (4.2) data, is gaining momentum. Take-up of the video play service is
Data revenue (Rm) 24 276 23 355 3.9 encouraging, with 869 000 active users on the platform. Our
Capital expenditure (Rm) 9 577 8 884 7.8 music platform, My Muze, is steadily gaining customers, and our
Customers1 (thousand) 43 166 41 635 3.7 gaming platform PlayInc. has now been launched.
Prepaid customers
(thousand) 37 331 36 275 2.9 Our Financial Services business continues to accelerate,
Contract customers contributing R1.6 billion of revenue, growing at 67.1% and
(thousand) 5 835 5 360 8.9 delivering R1.0 billion profit before tax. Our insurance business
Data customers2 continues to grow, adding more services such as life and funeral
(thousand) 19 952 20 347 (1.9) cover during the year. Total policies increased 38.1% to 1.3 million.
Total ARPU5 (rand per Airtime Advance is now used by just under 10 million customers.
month) 95 101 (5.9)
Enterprise has delivered good growth, with service revenue up
Prepaid ARPU (rand per
month) 54 58 (6.9) 4.8% to R14.7 billion. Our fixed-line service revenue increased
Contract ARPU (rand per 24.7%, underpinned by solid growth in connectivity, cloud and
month) 373 390 (4.4) hosting and IPVPN revenues. IoT connections continue to gain
NPS (position relative to momentum with a 24.4% growth in customers to 4.5 million.
competitors) 1st 1st We continue to drive our ‘Own the home’ strategy, resulting in
Service revenue grew at 2.1%, despite the implementation of good traction on fibre to the home/business, almost doubling the
deliberate pricing transformation and a low economic growth connections in the year.
environment. Growth in the second half of the year was negatively EBITDA declined 1.3% to R27.7 billion, while the EBITDA margin of
impacted by the transition between national roaming partners and 38.9% contracted by 1.2ppts partially as a result of the roaming
the change in call termination rates. agreement with Rain. This affected margins by 0.7ppts, as we
Customer revenue increased 1.3% to R47.4 billion supported continue to scale up on the roaming agreement, and move cost of
by a growth in our customer base of 3.7% to 43.2 million with capacity from depreciation to direct expenses. Technology
positive net additions of 1.5 million. expenses increased 7.5% due to 8.1% more sites being deployed,
and annual price escalations in lease, rental and energy expenses.
Contract customer revenue increased 0.6% with contract This was slightly offset by our ‘Fit for growth’ initiatives delivering
customers increasing 8.9% to 5.8 million. We are pleased with the
savings in excess of R1.4 billion. Our digital transformation is
acceleration of net customer additions during the fourth quarter
starting to yield results. The implementation of process
in both the Consumer and Enterprise segments. We worked with
automation has resulted in the automation of 86 processes. The
the Department of Education to connect 80 000 teachers during
introduction of chatbots and improving call resolutions at root
the year. These are mainly data contracts, contributing to a lower
cause has reduced call volumes by 25%, in line with our targets.
contract ARPU. We reduced out-of-bundle spend from customers
following the implementation of the Regulator’s End-User and Our capital expenditure of R9.6 billion was utilised to drive our
Subscriber Service Charter (EUSSC). strategy of being the leading digital telco. For the year we focused
Prepaid customer revenue increased 2.0%. Prepaid customer net on improving the overall mobile network performance and
additions were 1.1 million with ARPU declining by 6.9%, ARPU customer experience with network modernisation and capacity
declines are as a direct result of new additions being attracted at upgrade initiatives. We delivered substantial cost savings through
a lower spend. Our efforts to reduce the one-off use of SIM in the the introduction of Digital Technologies for smart planning, smart
market are showing signs of success. deployment and smart operations. Our continued investment in
infrastructure resulted in over 90% coverage on 4G and 99.5%
Data revenue grew 3.9% to R24.3 billion, contributing 43.5% to coverage on 3G.
service revenue. The effective price per MB has reduced 23.3%
following the implementation of the EUSSC regulations in We spent R2.0 billion on IT during the year. Our focus is to become
March, as well as a further out-of-bundle rate reduction of 50%. smarter and more agile in delivering products to our customers.
The implementation of the EUSSC allows consumers to manage We continued to deepen our Digital IT capabilities through our IT
their spend and utilise their data, virtually worry free. Data bundle acceleration programme. We continue to invest in cloud
purchases have increased 13.1% to 866 million as more infrastructure and migrating applications, IT services and network
affordable data bundles with shorter validity periods are available functions into cloud platforms to enhance flexibility and improve
to customers. scalability, availability and performance of services.
58
Our performance
International
Driving our strategy of financial services inclusion and connecting customers has supported
a return to double-digit service revenue growth of 15.6% (10.3%*). Macro and political
environments have improved, although they remain challenging in various aspects. DRC had
a peaceful election during the second half of the year.
Year ended 31 March % change We were awarded a 4G licence in the DRC. In Mozambique we
unified and renewed our licences for 20 years and acquired
International 2019 2018 Reported Normalised* 2x10MHz of 800MHz. In Tanzania we acquired an additional
Service revenue 2x10MHz of 700MHz 4G spectrum which will enable us to
(Rm) 19 452 16 828 15.6 10.3 progress further in delivering on our strategic data ambitions. The
Revenue (Rm) 19 982 17 460 14.4 9.1 total costs of these spectrum acquisitions were US$65.0 million
EBITDA (Rm) 6 251 4 930 26.8 21.0 across our operations.
EBIT (Rm) 3 430 2 096 63.6 56.1 We invested R3.4 billion in rolling out 4G services, improving
Data revenue capacity and widening our network reach and quality. We added
(Rm) 3 056 2 429 25.8 19.6 984 4G sites and 371 3G sites and lead in network NPS in most of
M-Pesa revenue our operations.
(Rm) 3 077 2 327 32.2 26.5
Capital We are in the process of concluding the acquisition of the M-Pesa
expenditure brand and platform related assets from Vodafone through a joint
(Rm) 3 376 2 707 24.7 agreement with Safaricom1. We expect this will further accelerate
Customers1 our mobile money growth plans in Africa.
(thousand) 34 620 32 414 6.8 1. The transaction close is subject to a number of conditions being met, including
Data customers2 signature of final agreements and the South African Reserve Bank approval.
(thousand) 17 664 16 573 6.6
M-Pesa Safaricom
customers3
(thousand) 13 500 11 757 14.8 Safaricom continues to report solid growth and margin expansion,
with service revenue increasing 7.0% and EBIT increasing 13.1%.
In March and April 2019, Mozambique was affected by two cyclones.
We mobilised efforts to restore communication services as soon Year ended 31 March
as possible, to enable customers to get in contact with affected %
family members and to aid relief efforts. To assist during this crisis, 2019 2018 change
we free-rated calling from 21 March 2019 to 1 April 2019 and we
have also donated US$1 million to aid in humanitarian efforts. Revenue (KESbn) 250.96 234.22 7.1
We continue to see good customer growth, adding 2.2 million EBIT (KESbn) 89.61 79.27 13.1
customers in the year, up 6.8% to 34.6 million customers. Customers1 (thousand) 31 845 29 570 7.7
Data customers2 (thousand) 18 831 17 669 6.6
Data revenue grew strongly at 25.8% (19.6%*), supported by the M-Pesa customers3
roll-out of 4G services, now available in all our operations. We added
(thousand) 22 642 20 547 10.2
1.1 million data customers during this period, as we continue to
drive availability of affordable data devices across all operations. ARPU5 (KES per month) 658 639 3.1
We have started rolling out content services in all operations and
continue to provide personalised pricing through our ‘Just 4 You’ Underpinning the results was a strong recovery in growth of
platform. Data now contributes 15.7% of service revenue. Safaricom’s customer base, with total customers growing 7.7% for
the year to 31.9 million customers. Strong growth in M-Pesa
M-Pesa continues to deliver on its promise for financial inclusion revenue continues as 30-day active M-Pesa customers increased
empowering customers to transact easily and thereby 10.2% to 22.6 million. M-Pesa revenue grew 19.2% and now
contributing to the economy. M-Pesa revenue grew by 32.2% contributes 31.2% to service revenue, up from 28.0%. Data
(26.5%*) to R3.1 billion, contributing 15.8% to service revenue. revenue grew at 6.4%, a slight easing of growth during the second
We continue to expand the ecosystems to more services such as half of the year, as consumer offerings were repositioned at half
micro loans, merchant payment systems and further year to provide more value in an increasingly competitive
interconnection with banks and other operators. We launched a environment. However, opportunity exists for future growth by
number of initiatives during the year to drive the uptake of the increasing both penetration and usage of mobile data. Investment
M-Pesa in all operations. We added 1.7 million customers during in capital expenditure of KES37.3 billion in the period resulted in
the period, up 14.8% to 13.5 million. We now process 3G sites increasing 17.3%, 4G sites increasing 69.4%, and the
US$2.8 billion in transactions a month across our operations. number of homes passed with fibre more than doubling to 300 000.
EBITDA grew 26.8% (21.0%*), while margins expanded by 3.1ppts.
This was as a result of strong revenue growth and continued focus
on cost containment through our ‘Fit for growth’ programme.
Savings on commissions from airtime purchases through M-Pesa,
continued savings in network operating expenses through site
sharing, contract negotiations and savings from lower These results are available on www.safaricom.co.ke/
interconnect costs are key drivers for margin growth. investor-relation/financials/reports/financial-results

Our segment performance: International continued
Tanzania Mozambique
Year ended 31 March Year ended 31 March
% %
2019 2018 change 2019 2018 change
Revenue (TZSm) 1 023 763 977 994 4.7 Revenue (MZNm) 21 111 17 635 19.7
EBIT (TZSm) 120 186 96 895 24.0 EBIT (MZNm) 5 709 4 158 37.3
Customers1 (thousand) 14 133 12 899 9.6 Customers1 (thousand) 6 843 6 108 12.0
Data customers2 (thousand) 7 892 7 345 7.4 Data customers2 (thousand) 4 289 3 730 15.0
M-Pesa customers3 M-Pesa customers3
(thousand) 6 989 6 369 9.7 (thousand) 3 860 3 109 24.2
MOU per month4 172 163 5.5 MOU per month4 136 143 (4.9)
Total ARPU5 Total ARPU5
(rand per month) 36 35 2.9 (rand per month) 56 51 9.8
Total ARPU5 (TZS per month) 6 027 6 086 (1.0) Total ARPU5 (MZN per month) 246 241 2.1
Number of employees 548 537 2.0 Number of employees 551 530 4.0
NPS (position relative NPS (position relative
to competitors) 1st 1st to competitors) 2nd 1st
Customer market share #1 #1 Customer market share #1 #1
Vodacom Tanzania PLC continues to strengthen its leadership The country experienced devastating cyclones in March and
position as the country’s fastest data networka, resulting in an April 2019, leading to the destruction of critical infrastructure and
increase in market shareb, both in terms of total customers community livelihoods. Vodacom Mozambique is in the process of
(32.4%) and in the mobile money market (38.6%). recovering the network and repairing the damage, which is
We continue to be the preferred network across various customer expected to take approximately six months.
segments as evidenced by the lead we maintain in net promoter Vodacom Mozambique delivered strong growth with revenue
scores, with a significant gap over our nearest competitor based increasing 19.7% and EBIT increasing 37.3%, as we continued to
on service, value and network performance. Delivering on our deliver on our ‘Fit for growth’ cost-saving initiatives mainly through
strategy of exceptional commercial execution and consistent
contract renegotiations and savings from increased airtime sales
investment in our network has yielded good results, with revenue
through M-Pesa.
and EBIT growing at 4.7% and 24.0% respectively. Our customer
base grew 9.6%, reaching 14.1 million, of which 7.0 million use The customer base grew by 12.0% to 6.8 million, assisted by our
M-Pesa and 7.9 million access data services. many promotions during the year, including our ‘Mega Promo’ and
We delivered strong revenue growth in our key strategic growth weekly ‘WFT’ (WhatsApp, Facebook, Twitter) bundles that were very
pillars, M-Pesa and data. M-Pesa revenue increased 14.5% and data successful in attracting new customers.
revenue was up 17.9%, while proactive measures to stabilise voice Data revenue increased 19.6%, with data customers growing by
revenue decline are proving successful. Voice revenues were only 15.0% and data traffic up by 35.6%. At year end, 62.7% of
marginally lower by 1.1%, despite continued pricing pressure, which customers are using data.
was accelerated by the reduction in mobile termination rates.
M-Pesa revenue increased 83.1%, contributing 11.4% to service
Our ‘Lipa kwa M-Pesa’ merchant solution, which provides
revenue, up from 7.5% in the previous year. We partnered with BCI
customers with the ability to make seamless point-of-sale
Bank, the country’s largest retail bank, making it easier for our
payments, has grown substantially. The platform now has over
customers to use M-Pesa to pay at more than 14 000 points of
11 000 active merchants that effected TZS1.1 trillion in
transactions during the year, an increase of 186.0%. sale. By adding interoperability with Millennium BIM during the
year, M-Pesa now has full interoperability with the three largest
During the year, we invested TZS171.4 billion (16.7% of revenue) commercial banks in the country.
in our network, focused on increasing 4G coverage in major cities,
upgrading capacity and modernising the network to enable a Our NPS declined this year mainly as a result of competitive
superior data customer experience. pressures on pricing. We have initiatives in place to close the gap
and strengthen our position.
Our continued emphasis on cost optimisation through our ‘Fit for
Growth’ programme has supported a remarkable 20.3% growth in In the year ahead, we will focus on increasing customer value
EBIT, with a margin of 11.2%, expanding 1.4ppts. management activities through deeper segmented offerings,
improving loyalty rewards and driving reasons to consume through
Looking ahead, we remain steadfast in delivering on our strategy our content platforms. We recently rolled out the MyVodacom app,
by targeting an enhanced data user experience across the country, which has numerous self-help benefits; we will continue
expanding our mobile money ecosystem through new promoting adoption of the app to improve the customer
partnerships and services, and investing further in our high-value
experience. Our acquisition of 4G spectrum will help us improve
and youth segments. We will also endeavour to continue providing
our network coverage and quality and deliver on data quality
a superior 4G data user experience to more regions, allowing for
further improvement in monetising data traffic countrywide. for customers.
a. Ookla speed test report as at 31 March 2019.

b. Tanzania Communication Regulatory Authority’s quarterly communications
statistics as at 31 December 2018.
60
Our performance
DRC Lesotho
Year ended 31 March Year ended 31 March
% %
2019 2018 change 2019 2018 change
Revenue (US$’000) 473 262 428 169 10.5 Revenue (LSLm) 1 308 1 255 4.2
EBIT6 (US$’000) 63 497 12 578 >200 EBIT (LSLm) 491 475 3.4
Customers1 (thousand) 12 180 11 821 3.0 Customers1 (thousand) 1 464 1 587 (7.8)
Data customers2 (thousand) 4 749 4 825 (1.6) Data customers2 (thousand) 734 673 9.1
M-Pesa customers3 M-Pesa customers3
(thousand) 2 116 1 891 11.9 (thousand) 535 388 37.9
MOU per month4 36 39 (7.7) MOU per month4 74 79 (6.3)
Total ARPU5 Total ARPU5
(rand per month) 41 38 7.9 (rand per month) 66 65 1.5
Total ARPU5 (US$ per month) 3.0 2.9 3.4 Number of employees 220 209 5.3
Number of employees 573 578 (0.9) NPS (position relative
NPS (position relative to competitors) 1st 1st
to competitors) 1st 1st Customer market share #1 #1
Customer market share #1 #1
This year, following spectrum allocation by the regulator,
Vodacom DRC delivered excellent results, benefiting from the Vodacom Lesotho became the first company to commercially
stable political and macroeconomic conditions in the country. launch 5G on the African continent, and one of the first globally to
Revenue increased 10.5%, driven by strong growth in voice, data achieve this significant milestone.
and M-Pesa revenues. Our strong focus on customer value We continued to deliver on our strategy despite the
management activities, improving allocations within our bundles macroeconomic challenges in the country and the effects of the
and rewarding loyalty, helped to improve our NPS lead by 8ppts. recent VAT increase.
Voice revenue increased 8.5% as we further segmented our base Revenue increased 4.2%, driven by strong growth in data and
and increased promotional activity in strategic regions across the M-Pesa revenue. Data revenue grew 18.4%, supported by a 49.6%
country. increase in data usage per customer. The number of smartphone
Data revenue grew 22.3%, benefiting from our enhanced ‘Just for users increased 17.6%, as we facilitated access to better low-cost
You’ personalised offers that contributed to 79.7% growth in data smart devices, growing smartphone penetration to 57.2% of our
traffic . Data customers were down 1.6%, primarily as a result of customer base. ARPU declines are in line with our pricing
the internet ban pending the election result in January. transformation, as we continue to reduce out-of-bundle rates and
introduce smart notifications.
M-Pesa revenue increased 39.2% and now represents 7.1% of
service revenue, up from 5.7% a year ago. M-Pesa customers M-Pesa revenue grew 34.8%, supported by a 37.9% increase in
increased 11.9% as we restructured our distribution channel to M-Pesa customers. We increased usage of our ecosystem products
improve efficiency and expanded the ecosystem with the launch such as pay bill transactions and airtime purchases, and expanded
of Financial services, including an M-Pesa ATM. Our customers can transactions with merchants. We also successfully introduced
now link their M-Pesa account to a bank account and perform M-Pesa point of sale facilities in large retail outlets.
transfers. EBIT increased by 3.4% supported by strong revenue growth,
Following the awarding of a 4G licence and acquisition of slightly offset by an increase in the cost of international
spectrum, this year we rolled out 199 4G sites. termination rates and higher network costs.
In the year ahead, we will focus on increasing our coverage, In the year ahead, we will be driving data monetisation by
providing customers with more reasons to consume data with our increasing in-bundle usage and smartphone penetration, and
video, music and gaming propositions, expand our M-Pesa providing reasons to consume with the launch of video and music
services, and obtain further savings through our ‘Fit for growth’ propositions. We will continue to focus on expanding the M-Pesa
programme. ecosystem and optimise M-Pesa distribution, with the launch of
some exciting new products planned.
Notes:
The financial information is on a comparable IAS 18 basis for the year ended 31 March 2019.
1. Customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a monthly fee that entitles
them to use the service even if they do not actually use the service and those customers who are active while roaming.
2. Data customers are based on the number of unique users generating billable data traffic during the month. Also included are users on integrated tariff plans, or who have
access to corporate APNs, and users who have been allocated a revenue generating data bundle during the month. A user is defined as being active if they are paying a
contractual monthly fee for this service or have used the service during the reported month.
3. M-Pesa customers are 30-day active and are based on the number of unique customers who have generated revenue related to M-Pesa during the last month.
4. Minutes of use (MOU) per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly number of customers during the period.
5. Total ARPU is calculated by dividing the average monthly service revenue by the average monthly number of customers during the period. Prepaid and contract ARPU only
include service revenue generated from Vodacom mobile customers.
6. EBIT benefited from a US$21.2 million net insurance claim received.

Five-year historic review (IAS 18)
Year ended 31 March
Compound
2019 2018 2017 2016 2015 growth %
Summarised income statement (Rm)
Revenue 90 066 86 370 81 278 80 077 74 500 4.9
Operating profit 24 515 24 252 21 750 21 059 19 235 6.3
Net finance charges (2 401) (2 893) (2 522) (2 215) (1 384) 14.8
Profit before tax 22 114 22 093 19 228 18 844 17 851 5.5
Taxation (6 672) (6 531) (6 102) (5 934) (5 341) 5.7
Net profit 15 442 15 562 13 126 12 910 12 510 5.4
Non-controlling interest (715) (218) 292 7 162 n/a
EBITDA 33 689 32 898 31 238 30 345 26 905 5.8
EBIT 23 388 23 109 22 126 21 696 19 516 4.6
Summarised statement of financial position
(Rm)
Non-current assets 112 610 96 543 52 127 51 085 45 954 25.1
Current assets 36 273 34 822 29 011 27 618 25 353 9.4
Equity and reserves 82 996 70 652 22 996 23 024 21 643 39.9
Non-current liabilities 27 757 28 130 31 423 29 909 23 050 4.8
Current liabilities 38 130 32 583 26 719 25 770 26 614 9.4
Net debt 23 354 19 892 22 484 21 287 16 760 8.6
Capital expenditure 12 957 11 594 11 292 12 875 13 305 (0.7)
Summarised statement of cash flows (Rm)
Cash generated from operations 34 575 32 299 31 791 29 800 26 198 7.2
Tax paid (6 535) (6 194) (6 051) (5 456) (4 979) 7.0
Net cash flows from operating activities 28 040 26 105 25 740 24 344 21 219 7.2
Net cash flows utilised in investing activities (11 188) (8 526) (12 195) (13 680) (13 131) (3.9)
Net cash flows utilised in financing activities (19 377) (13 067) (11 909) (11 644) (5 043) 40.0
Net decrease in cash and cash equivalents (2 525) 4 512 1 636 (980) 3 045 n/a
Cash and cash equivalents at end of the year 11 066 12 538 8 873 7 751 8 870 5.7
Performance per ordinary share (cents)
Basic earnings per share 867 947 915 881 864 0.1
Headline earnings per share 862 923 923 883 860 0.1
Diluted headline earnings per share 847 895 894 860 840 0.2
Net asset value per share 4 520 4 104 1 545 1 547 1 470 32.4
Dividends per share1 795 815 830 795 775 0.6
Profitability and returns (%)
EBITDA margin 37.4 38.1 38.4 37.9 36.1
EBIT margin 26.0 26.8 27.2 27.1 26.2
Operating profit margin 27.2 28.1 26.8 26.3 25.8
Effective tax rate 30.2 29.6 31.7 31.5 29.9
Net profit margin 17.1 18.0 16.1 16.1 16.8
Return on equity2 21.2 34.7 55.7 55.9 56.2
Return on capital employed3 25.8 30.5 45.4 48.2 50.1
Liquidity and debt leverage (times)
Interest cover4 8.1 8.6 7.7 9.6 11.1
Net debt to EBITDA 0.7 0.6 0.7 0.7 0.6
Current ratio5 1.0 1.1 1.1 1.1 1.0
Quick ratio6 0.9 1.0 1.0 1.0 0.9
Notes:
1. Total dividend declared for the financial year.
2. Return on equity is calculated by dividing net profit attributable to equity shareholders by shareholders’ equity.
3. Return on capital employed (before tax) is calculated by dividing adjusted statutory operating profit by the average of total assets less current liabilities.
4. Interest cover ratio is calculated by dividing earnings before interest and tax for the year by finance costs for the year.
5. The current ratio is calculated by dividing current assets by current liabilities.
6. The quick ratio is calculated by dividing current assets, excluding inventory, by current liabilities.
62
Our performance
Five-year historic review per segment

Year ended 31 March
Compound
2019 2018 2017 2016 2015 growth %
South Africa
Revenue (Rm) 71 325 69 967 64 729 62 279 59 203 4.8
EBITDA (Rm) 27 717 28 088 26 815 25 016 22 837 5.0
EBIT (Rm) 20 244 21 124 20 593 19 430 17 779 3.3
Capital expenditure (Rm) 9 577 8 884 8 471 8 747 8 646 2.6
EBITDA margin (%) 38.9 40.1 41.4 40.2 38.6
EBIT margin (%) 28.4 30.2 31.8 31.2 30.0
Capex intensity (%) 13.4 12.7 13.1 14.0 14.6
Customers1 (thousand) 43 166 41 635 37 131 34 178 32 115 7.7
Number of employees 5 197 5 007 5 038 5 009 5 228 (0.1)
Total ARPU (rand per month)2 95 101 111 112 113 (4.2)
International
Revenue (Rm) 19 982 17 460 17 350 18 356 15 747 6.1
EBITDA (Rm) 6 251 4 930 4 545 5 385 4 104 11.1
EBIT (Rm) 3 430 2 096 1 648 2 296 1 756 18.2
Capital expenditure (Rm) 3 376 2 707 2 833 4 090 4 654 (7.7)
EBITDA margin (%) 31.3 28.2 26.2 29.3 26.1
EBIT margin (%) 17.2 12.0 9.5 12.5 11.2
Capex intensity (%) 16.9 15.5 16.3 22.3 29.6
Customers1 (thousand) 34 620 32 194 29 655 27 127 29 533 4.1
Number of employees 2 357 2 360 2 351 2 338 2 372 (0.2)
Total ARPU (rand per month)2
Tanzania 36 35 38 39 42 (3.8)
DRC 41 38 49 42 32 6.4
Mozambique 56 51 45 54 52 1.9
Lesotho 66 65 61 62 53 5.6
Total ARPU (local currency per month)2
Tanzania (TZS) 6 027 6 086 6 003 5 972 6 530 (2.0)
DRC (US$) 3.0 2.9 3.5 3.0 2.9 0.9
Mozambique (MZN) 246 241 216 169 149 13.4
Notes:
1. Customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a monthly fee that entitles
them to use the service even if they do not actually use the service and those customers who are active while roaming.
2. Total ARPU is calculated by dividing the average monthly service revenue by the average monthly number of active customers during the period.

Who governs us
We have a unitary Board with 12 directors, the majority of whom are non-executive directors.
Our Chairman is an independent non-executive director.
Board structure
Executive Independent non-executive directors
directors
3 4 5 6 7
1
N S A R A A S N R
S
Non-executive directors
2
8 9 10 11 12
N R S
1. Mohamed Shameel Aziz 4. David Hugh Brown (56) 8. Michael Joseph (73) 11. Sunil Sood2 (58)
Joosub (48) Appointed in January 2012 Appointed in May 2009 Appointed in July 2018
Appointed CEO in September 2012 • Corporate and strategic • Understands innovation. • Extensive telecoms knowledge.
• Commercial strategist. leadership experience. • Strategy and business leadership • Executive leadership background.
• Strategy business leadership. • Financial expertise. experience. • Strategic leadership experience.
• Strong ICT experience. • Corporate governance expertise. • Emerging markets expertise. • Emerging markets expertise.
• International operational
experience. 5. Priscillah Bafelelang 9. John William Lorimer 12. Thomas Reisten3 (46)
• Sound financial expertise. Mabelane (46) Otty (55) Appointed in January 2019
Appointed in December 2014 Appointed in September 2012 • Sound financial governance
2. Till Streichert (45)
• Strategic leadership expertise. • Sound financial governance background.
Appointed CFO in August 2015 • Financial expertise. background. • Extensive telecoms knowledge.
• Diverse international financial • Business leader. • Extensive telecoms knowledge. • Emerging market insight.
experience. • Emerging market insight.
• Executive leadership background. 6. Sakumzi Justice Macozoma 1. Phuti Mahanyele-Dabengwa was
• International ICT sector insights. (61) 10. Vivek Badrinath (49) appointed to the Board in
Appointed in July 2017 Appointed in December 2016 January 2019 replacing Thoko
3. P
hillip Jabulani Moleketi (61) Martha Mokgosi-Mwantembe.
• Business leadership. • Extensive telecommunications
Appointed as Chairman of the Board • Financial expertise. and technology knowledge. 2. Sunil Sood was appointed to
in July 2017 • Corporate leadership experience. • Expertise in Information Systems. the Board in July 2018 replacing
• Understands public sector relations. • Emerging market expertise. Marten Pieters.
• Corporate and strategic leadership 7. Phuti Mahanyele- • Business leadership. 3. Thomas Reisten was appointed
experience. Dabengwa1 (48) to the Board in January 2019
• Strong financial acumen. Appointed in January 2019 replacing Ronald Adrianos
• Government relations experience. Wilhelmus Schellekens.
• Business leadership.
• Financial expertise.
• Corporate leadership experience.
A Audit, Risk and Compliance Committee (ARCC) R Remuneration Committee N Nomination Committee S Social and Ethics Committee
6
1
5
58% 42% Male
3
83% 4
1
White
Black
Female
17% 2
3
2
Age group: Category of director Diversity (nationality)
1 Executive directors 16.66% 1 South African 50.00%
45-50 51-55 56-60 >60 2 French 8.33%
2 Independent
6 1 2 3 non-executive 3 German 16.66%
(including the Chairman) 41.67% 4 American 8.33%
3 Non-executive 41.67% 5 British 8.33%
6 Indian 8.33%
64
Our governance
Who leads us
Executive Committee
CEO CFO Technology Consumer Human Commercial
Business Unit Resources Operations
1 2 3 4 5 6
Legal and Strategy and Corporate Financial International Vodacom

Regulatory New Business Affairs Services Business Business
7 8 9 10 11 12
1. Mohamed Shameel Aziz 4. Jorge Mendes1 (45) 7. Nkateko Nyoka (56) 10. Mariam Cassim2 (37)
Joosub (48) Chief Officer: Consumer Chief Officer: Legal and Chief Officer: Vodacom
Chief Executive Officer Business Unit Regulatory Financial Services
Joined Vodacom in March 1994. Joined Vodacom in Joined Vodacom in Joined Vodacom in
May 2000. October 2007. November 2016.
2. Till Streichert (45)
Chief Financial Officer 5. Matimba Mbungela (47) 8. Yolanda Cuba3 (41) 11. Diego Gutierrez (42)
Chief Human Chief Officer: Strategy Chief Operating Officer:
Joined Vodacom in Resources Officer and New Business International Business
February 2014/Vodafone
in January 2008. Joined Vodacom in Joined Vodacom in Joined Vodacom in
January 2003. November 2014. August 2017.
3. Andries Delport (54)
Chief Technology Officer 6. Errol van Graan (45) 9. Takalani Netshitenzhe 12. William Mzimba (50)
Chief Officer: Commercial (50) Chief Officer: Vodacom
Joined Vodacom in Operations Chief Officer: Corporate Affairs Business
June 1996.
Joined Vodacom in Joined Vodacom in Joined Vodacom in
February 2018. September 2016. May 2018.
1. Jorge Mendes was appointed Chief Officer: Consumer Business Unit on 1 February 2019 following the integration of CBU Core and
Sales and Distribution into one Consumer Business Unit.
2. Mariam Cassim was appointed Chief Officer: Vodacom Financial services on 1 February 2019.
3. Yolanda Cuba was appointed Chief Officer: Strategy and New Business on 1 April 2019.
Further detailed biographies of the

Board and the Executive Committee
are available at www.vodacom.com
33% 67% Male

75%
White
Black
Female
25%
1
Age group: 1 South African 83%

2 International 17%
35-40 41-45 46-50 >50
1 5 4 2

Board governance at a glance
Vodacom is committed to the highest standards of business integrity, ethics and professionalism.
The King IV Report on Corporate Governance advocates an This year, we have chosen to provide a very summarised
outcomes based approach, and defines corporate governance governance report, reviewing the main focus areas that impact
as the exercise of ethical and effective leadership toward the on value creation and briefly outlining our strategic response.
achievement of the following governance outcomes. More detailed information on our governance policies and
activities is provided in the following reports, all available online
Ethical culture, good performance, effective control at www.vodacom.com.
and legitimacy.
Full corporate governance report
The application of King IV is on an apply and explain basis and King IV codes
practices underpinning the principles espoused in King IV are Audit, Risk and Compliance Committee report in the
entrenched in many of the Group’s Internal controls, policies and consolidated annual financial statements
procedures governing corporate conduct. The Board is satisfied Remuneration report
that in the main, Vodacom has applied the principles set Sustainability report
out in King IV.
The Board comprises of the following committees:
Nomination Committee
Remuneration Committee
Social and Ethics Committee
Audit, Risk and Compliance Committee
Executive Committee
Board composition
Vodacom has a unitary board of 12 directors with skills and experience attributed as follows:
Skills
Marketing/
Telecommunications 50% commercial 25%
Banking/financial
Leadership 83% services 33%
Financial 75% Technology/IT 33%
Board and committee attendance
BOARD NOMCO REMCO ARCC S&E NOMCO Nomination Committee

REMCO Remuneration Committee
Total number of meetings 8 4 4 8 4
7 4 4 Audit, Risk and Compliance
PJ Moleketi (Chairman) ARCC
Committee
MS Aziz Joosub 8 4
S&E Social and Ethics Committee
V Badrinath 8 4 4 0 a
DH Brown 8 4 8
M Joseph 7 a. V Badrinath was appointed to the S&E on
BP Mabelane 8 8 1 January 2019.
b. SJ Macozoma was appointed to the NOMCO
SJ Macozoma 8 1b 8 4
on 1 January 2019.
P Mahanyele-Dabengwa 2c 2 c
c. P Mahanyele-Dabengwa was appointed to
JWL Otty 8 the Board and as REMCO Chairman on
1 January 2019.
T Reisten 2d d. T Reisten was appointed to the Board on
S Sood 6e 1 January 2019.
e. S Sood was appointed to the Board on
T Streichert 8 18 July 2018.
66
Our governance
The Board takes overall responsibility for Vodacom’s success. Its role is to exercise leadership and sound judgement in directing Vodacom to achieve
sustainable growth and act in the best interests of shareholders. The Board’s key focus areas during the year included:
Strategic objectives
Best customer Segmented Financial Digital content Best Digital Our brand and
experience propositions services platforms technology organisation reputation
and culture
Focus areas Risk (see page 22) Strategy
Regulatory matters in SA (ECA Bill, Spectrum)

Engaged with the regulator and other stakeholders. • Priority markets review.
Participated in forums with the ministry and industry.
• Adverse regulatory and political pressure.
Made numerous submissions and proposals.
• Unstable economic and market conditions.
• Non-compliance with laws and regulations.
BEE deal
Completed the largest BEE transaction in the ICT sector.
Ensured a balanced good deal for investors, with maximum benefit for
Vodacom Group.
End-User and Subscriber Service Charter Regulations
Engaged with the regulator, resulting in revisions to the charter.
• Adverse regulatory and political pressures.
Ensured compliance with the charter.
Adapted all billing and customer facing systems for the changes.

Approved proactive changes to drive higher customer take up of bundle offers.

Succession – Board/CEO/CFO/Exco
Approved Board and Exco changes.

Cyber threats
Undertook full threat assessment.
• Cyber security threats.
Removed all vulnerabilities.
• Technology failure.
Ensured continual monitoring and implementation of controls.

USA/China trade relations
Revised the vendor strategy – dual vendors, at least, to limit the impact on business.
• Adverse regulatory and political pressure.
Undertook consistent monitoring of the situation in conjunction with Vodafone.

‘Please Call Me’
Recused the CEO from all discussions since April 2016.
Ensured that the Board was kept up to date on the progress.

DRC – challenging economic and political conditions
Engaged with regulator and other stakeholders.

Regulatory matters in International (Taxes, Traffic monitoring)
Engaged with regulator and other stakeholders.
Participated in forums with the ministry and industry.

Financial services and Digital content platforms strategy
Approved the addition of the sixth pillar of the strategy.
• Market disruption.
Approved the creation of positions on Exco to elevate importance of the area.

Tracked performance of business units against the strategy.

Water savings (shortages in Cape Town)
Approved water saving measures internally and alleviated water shortages
in schools.
International markets
Deep dive into certain markets in the International portfolio. • Adverse regulatory and political pressures.
Monitored the improvement plan for Vodacom Tanzania. • Unstable economic and market conditions.

Remuneration report
Letter from the

Letter from the new Chairman of
outgoing Chairman
of the Remuneration the Remuneration
Committee (RemCo): Committee
Dear shareholders Dear shareholders
It has been a great pleasure and privilege to be This report sets out Vodacom’s remuneration philosophy and policy
part of the RemCo of Vodacom for the past for non-executive directors and executive directors. It also provides
10 years. I joined the Vodacom Group a description of how the policy has been implemented, and discloses
Remuneration Committee shortly after its payments made to non-executive and executive directors during
listing in 2009 and it has been an exciting the year.
journey.
Championing the King IV Code on Corporate Governance and in line
As members of the RemCo, our focus is to with our commitment to fair and responsible remuneration we
assist and advise the Board on matters relating continuously review our remuneration policies and practices to
to the remuneration of our executive directors ensure that they remain fit for purpose and aligned to Vodacom’s
and senior leadership team (SLT). We ensure strategy. Our total reward offerings are designed to encompass all of
that the remuneration philosophy and policy the life cycle elements that employees experience throughout their
supports the Group’s strategic targets to enable work career.
the recruitment, motivation and retention of
We have carefully reviewed the Remuneration policy of the Group
senior executives, with the aim of maximising
and ensured that the implementation of all remuneration practices
shareholder value and complying with
were aligned to the policy objectives, as well as reviewing
legislation and the requirements of King IV.
remuneration developments in both local and global best practice.
During the past year there were a number of
We are also very committed to maintaining a strong relationship
changes in the SLT team and the committee
with our shareholders, which is built on trust and a clear
reviewed and approved all changes which were
understanding of our remuneration policy and the practices
made relating to members of the SLT. The
that have been implemented.
committee also reviewed the short-term
incentives (STI) scheme parameters and Ultimately we will continue to drive and embed our purpose-led
weightings and approved changes to the Vodacom.
weightings of metrics within the STI scheme
for the coming year. Focus areas for FY2020
I would like to thank my fellow RemCo Employee experience remains critical for us and we will continue
members for their continued support and I wish to enhance our reward communication and understanding for our
them well for the future. employees and focus on fair pay principles across the Group.
Thoko Martha Mokgosi-Mwantembe Digital capability building remains a focus area and our reward
Outgoing: Chairman of the Remuneration strategy is aimed at assisting us in acquiring and developing talent
Committee for a digital organisation. We will also continue to accelerate our
leadership development in a digital world.
Phuti Mahanyele-Dabengwa
New: Chairman of the Remuneration Committee
68
Our governance
In accordance with the requirements of King IV, this report is

divided into the following three sections:
Background Our remuneration Implementation

statement philosophy, policy and remuneration
regarding and framework disclosure of the
committee CEO, CFO and
considerations non-executive
and decisions directors (NED)
Remuneration report
This is a summarised version of the full remuneration report which is available online at www.vodacom.com.
Section
1
Approved the new CEO share ownership scheme;
Approved short-term incentives for executives, senior
management and employees;
Evaluated the LTIP vesting conditions for the 2015 scheme,
and approved final vesting ratios; and
Background statement Set performance conditions for short- and long-term
incentives.
regarding committee
considerations and decisions Voting at the July 2019 annual general meeting
(AGM)
As required by the Companies Act and King IV, the following
resolutions will be tabled for shareholder voting at the AGM
Achievement of policy objectives in July 2019, details of which can be found in the AGM notice
which is available online at www.vodacom.com.
The committee believes that the Vodacom remuneration
philosophy and policy remains fit for purpose and achieves the Binding vote on non-executive directors’ fees;
high-level objectives of attraction, retention and performance Advisory vote on the remuneration policy; and
motivation of our staff. As a result no changes were made to the Advisory vote on the implementation report.
remuneration mix for executive directors, either at target or at Results of shareholder voting at the most recent AGMs are
maximum award levels. indicated below.
Business performance and the impact on our 2018 2017

short-term and long-term incentives Approval of the remuneration
Management had a tough set of targets to achieve relating to policy 98.83% 94.20%
short-term incentive objectives, given the backdrop of subdued
Implementation of the
consumer spending and regulatory changes implemented
remuneration policy 98.93% 94.20%
during the year.
Non-executive directors’ fees 99.58% 99.76%
Strong performance in our International operations partly offset
some of the pressure in South Africa. More detail on the actual
achievement against these targets is provided later in the report. Areas of focus for the next year
The targets and the extent to which they are achieved have a The RemCo is constantly assessing the executive remuneration
direct impact on the short- and long-term incentives payable market and governance frameworks. The committee anticipates
to executives. the following key focus areas for the next year:
Monitor changes in executive remuneration, especially those
The key decisions made by RemCo during this of our direct competitors.
year were: Review of peer group applicable to LTIP and NED fees.
Approved the implementation of a new BEE scheme for Focus on fair and responsible pay.
employees;
Approved increases and adjustments for executives, senior Independent external advisors
management and employees; The RemCo contracted the services of Vasdex Associates
Reviewed the metrics of the variable short-term incentive (Pty) Limited for independent external advice. The committee
(STIP) and the variable long-term incentive (LTIP) schemes, and is satisfied with their independence and objectivity.
made changes where appropriate;
Remuneration report for the year ended 31 March 2019 69
Remuneration report continued
Section Pay mix
2
RemCo reviews the total pay mix of executive directors every year
and decides on the proportion of total remuneration paid as part
of the GP, or as STIP or LTIP. Each element is linked to creating
shareholder value and the strategic progress made in the year.
The ratio of guaranteed versus variable pay differs for each
Our remuneration philosophy, level in the organisation, with the weighting on variable
policy and framework performance-based pay higher at executive and senior levels
compared to lower-level staff.
The RemCo also reviews targets and the on-target values for each
Our Remuneration philosophy element every year to ensure that it remains relevant, competitive,
Our aim is to attract, retain and motivate executives of the highest drives the right behaviours and enhances overall shareholder
calibre, while at the same time aligning their remuneration with value.
shareholders’ interests, sustainability and best practice. Our
approach to reward is holistic and balanced across the following Benchmarking
elements: To ensure we apply the right pay mix and remunerate our
executives competitively, we use industry- and country-specific
Guaranteed package (GP); benchmarks. Fair and competitive reward is vital to being an
Variable short-term incentive plan (STIP); employer of choice. RemCo sets the remuneration and the
Variable long-term incentive plan (LTIP); guaranteed packages of executives by looking at peer group data
Various benefit plans; from the JSE telecommunications sector and other listed
Various recognition programmes; companies of similar market capitalisation and revenue.
Individual learning and development opportunities;
Stimulating work environment; and In addition Vodacom subscribes to remuneration surveys
Well-designed and integrated employee wellness programme. (PWC, Remchannel and the Mercer top executive survey).
The remuneration information is consolidated to ensure that
Vodacom adheres to a ‘total cost to company’ philosophy, which
we have a comprehensive view of remuneration across different
we refer to as the GP. All employees in South Africa, including
industries and an understanding of how to reward our executives
executive directors, receive a GP based on their role in the
appropriately and competitively.
Company and linked to their individual performance.
Contributions to medical aid, retirement funding and insured Benchmarking for executive directors within Vodacom is done
benefits are included in the GP. for all elements of targeted remuneration, namely guaranteed
The above elements are underpinned and reinforced by our package, target short-term incentive and target long-term
performance development (PD) and talent management processes. incentive. For executive directors, Vodacom targets the 66th
Our policy is to reward our executives for their contributions to our percentile of the market for GP and 75th percentile of the market
strategic, financial and operating performance. for GP plus STIP.
Annually, we conduct remuneration benchmarking and award The CEO is benchmarked against an executive remuneration
increases in the GP according to the market, individual survey provided by Mercer, as well as industry-specific
performance and potential. Individual performance and potential comparators and information from peer group disclosure.
assessment is determined through our talent management and The CFO is a secondee from Vodafone and is thus benchmarked
performance development processes. The outcome of these
in terms of the Vodafone executive remuneration policy.
processes also influences the awarding of short- and long-term
incentives in the future. LTIP TSR peer group
Our short-term incentive, in the form of an annual cash bonus, is Vodacom utilises the Indi25 index as the most representative list
linked to achieving financial, strategic and operational objectives of companies, which can be compared to from perspectives of
and the employee performance against their objectives set by line industry competitors, labour market and company size.
management. The pool available for short-term incentives is
determined by the financial performance of the Group against The RemCo approved an increase in the weighting of direct
previously set and agreed targets. telecommunications sector competitors with effect from
the June 2017 allocation. As a result, the assessment of total
Our long-term incentive, in the form of an annual share allocation, shareholder return (TSR) is performed with two additional
encourages ownership and loyalty, and supports our objective to instances of MTN and Telkom respectively. In combination this
retain valued employees. It is designed to align executive equates to 25% of the TSR peer group.
performance to shareholders’ interests, as a portion of the award is
subject to Group performance conditions. The scheme is a full Telkom is not currently present in the Indi25, but since it is a direct
ownership scheme. As a result, participants receive dividends from competitor for Vodacom, the RemCo took the decision to include
the award date although the value of the shares can only be Telkom in the LTIP TSR peer group, irrespective of whether it is in
realised after a three-year vesting period, to the extent that the the Indi25 or not.
vesting conditions have been met.
70
Our governance
Non-executive director remuneration The STIP for the CEO is capped at 200% of target. This is the
NED fees are benchmarked annually against fees published by a maximum business multiplier as no performance multiplier is
applicable.
peer group of companies in their respective most recent AGM
notices. The peer group of companies for NED benchmarking Business performance multiplier
is different from the TSR peer group, since the skills required of The business performance multiplier ranges from 0% – 200%. The
NEDs come from a pool of more appropriately sized companies, metrics comprise three financial measures, which focus on the
including financial services companies. Banks have, however, core operations of our business and one strategic measure, being
specifically been excluded, since their NED fees are noticeably customer appreciation.
higher than other industries.
2019 2018
Executive contracts and policies Metric Weighting Weighting
Executives have permanent contracts of employment. The notice Service revenue 20% 20%
EBIT 20% 20%
periods applicable to members of executive management are:
Operating free cash flow 20% 20%
Role Notice Period Customer appreciation 40% 40%
CEO 12 months
For executives, business performance is split between the relevant
CFO 6 months operating company and the Group. The Group business multiplier is
used for the CEO and CFO, and for other senior leadership team
Payments for termination of office members the business multiplier is based on a weighted average of
The RemCo has the discretion to approve termination benefits to the multipliers for the relevant operating company and the Group.
executive directors when required. The maximum termination
benefit potentially payable will be limited to six months. These Personal multiplier
benefits will not apply in the event of a normal voluntary The personal multiplier ranges from 0% – 150%. The personal
resignation or retirement. performance multipliers are based on the performance of
executives relative to their objectives.
Remuneration framework The CEO does not have a personal performance multiplier and as
Guaranteed package such, his STI is based on business performance only.
Within the context of our GP, Vodacom offers a selection of Although the CEO does not have a personal multiplier, his individual
benefits that are both best practice and compliant with legislative performance is assessed against specific individual goals which are
practices. In terms of our total cost to company philosophy, any linked to the Company’s overall strategic objectives.
change in the price of a benefit or contribution level will not have
a cost impact on the employer, but will affect the net The formula for determining the CEO’s cash bonus is:
remuneration of the employee.
Target Business
Short-term incentives GTCE incentive performance
All employees, including executive directors, excluding employees 100% 0% – 200%
on a commission, quarterly or bi-annual bonus structure,
participate in the annual STIP plan. STIP payments are
The formula for determining the CFO’s cash bonus is:
discretionary and depend on the financial performance of the
company and individual performance. Payments are made in cash
in June each year. Target Business Performance
GTCE incentive performance multiplier
Where annual targets are achieved in full, 100% of the on-target
60% 0% – 200% 0% – 150%
STIP will be paid. In instances where target goals are exceeded, the
STIP is capped at a percentage of the guaranteed package. Where Long-term incentives
the STIP targets are not achieved in full, a reduced STIP is paid.
Selected employees, including all executives, are invited to
Where performance is below threshold, no STIP is payable.
participate in our long-term incentive plans. These incentive plans
Financial and personal multipliers are applied as separate multiples aim to retain key skills and motivate executives over the long term,
of the on-target percentages to determine the final award. which is essential to sustainable performance. The awards are made
using a combination of Vodacom and Vodafone awards. These
On-target and maximum STIP awards may be made in retention shares (only time-based vesting),
The on-target and maximum STIP percentages are set out in the performance shares (performance vesting conditions in addition to
table below: time-based vesting) or a combination of these award types.
On-target Maximum The Vodacom awards are forfeitable shares (FSP) where the
Role % of GP % of GP maximum number of shares are in issue at the time of award.
Dividends are received on the maximum potential vested shares
CEO 100% 200% from the time of award. Vesting conditions will determine how
CFO 60% 180% many of the original awards are to be forfeited upon final vesting.
The Vodafone awards are in the form of conditional shares (CSP),
The maximum percentage of GP is based on a combination of the where shares are only settled at the time of vesting and dividends
business performance multiplier and the personal multiplier. only accrue from that point onwards.

Vodacom performance FSP shares The targets for operating free cash flow is determined according
Vodacom performance FSP shares vest in a range of 0% – 100% of to the achievement of the three-year budget plan. TSR
the number of shares awarded, where 50% is the target vesting level. achievement is calculated based on the position within the
selected TSR peer group.
Vodacom retention FSP shares
Vodacom operates in highly competitive markets where The vesting of Vodacom performance FSP shares is based on the
competitors are local and international, as well as spanning following scale:
industries other than telecommunications. An element of the LTIP
Operating free TSR relative to
award, for employees other than the CEO, are retention awards and
Scheme cash flow (OFCF) peer group
therefore only have time-based performance vesting conditions.
Below 50th percentile
Vodafone retention and performance CSP awards
Min 0% <-15% of OFCF of the index
Details regarding performance conditions and vesting periods
for the Vodafone awards can be found in the 2019 Vodafone Three year plan At 50th percentile
Remuneration report. Threshold 20% -15% of the index
Further details are provided in the 2019 Vodafone Remuneration report
at www.vodafone.com.
Average of 50th and 75th
Target 50% Three-year plan percentile of the index
On-target and maximum LTIP
Three-year plan 75th percentile
The on-target and maximum LTIP percentages are set out in the
Maximum 100% +15% of the index
table below:
On-target Maximum Shareholder guidelines
Role % of GP % of GP
CEO minimum shareholding requirement
CEO 190% 405% In order to ensure the Vodacom CEO maintains a high level of
CFO 70% 233% shareholder alignment, a minimum shareholding requirement is
For executives other than the CEO the maximum includes the introduced as follows:
effect of a maximum personal multiplier of 2.0 times at allocation in Vodacom shares; and
200% of GP
and the business achievement at a potential maximum of 2.0 times
at vesting. The individual multiplier is based on the talent rating of 100% of GP in Vodafone shares.
the executive following the internal talent review process.
The total share ownership guideline for the Vodacom CEO is thus
As with the STIP, the CEO does not have an individual multiplier. 300% of GP.
Split of awards Should the Vodacom CEO not meet the minimum shareholding
On-target awards are split between Vodacom FSP (forfeitable requirements at the time of the LTIP awards, then the award levels
shares) and Vodafone CSP (conditional shares) awards, as well as of the Vodacom and Vodafone awards will be reduced below the
between retention and performance awards as follows: target award levels indicated.
Scheme CEO CFO
Other executives’ minimum shareholding requirement
Vodacom FSP retention – – The Board wishes to encourage individual shareholding in the
Vodacom FSP performance 73.7% – Company by executives, as a tangible demonstration of their
Vodafone CSP retention – 33.0% commitment to the Company and to align with shareholders’
Vodafone CSP performance 26.3% 67.0% interests. As a result, we implemented a shareholding guideline
The CEO does not receive Vodacom FSP retention awards nor policy for our executives, which require them to build up minimum
Vodafone CSP retention awards. levels of personal shareholding in the Group. Executives, excluding
the CEO, are required to hold 1.0 times of GP as a minimum
The CFO is seconded from Vodafone and thus receives only personal shareholding.
Vodafone CSP awards. Although the CFO receives no Vodacom
FSP awards, half of the vesting of the Vodafone CSP performance As an incentive to exceed the minimum requirements, additional
awards is linked to the Vodacom performance conditions. awards of FSP performance shares will be made to executives who
exceed the minimum requirements over a three-year vesting cycle
Performance conditions for LTIP (six years). The participants will be granted a performance share for
Weighting Weighting Weighting every three additional shares held. This award will be capped so
Award 2019 Award 2018 Award 2017 that holdings of no more than double the minimum requirements
Metric Vesting 2022 Vesting 2021 Vesting 2020 will be recognised.
Operating free
cash flow 70% 70% 70%
TSR relative to
peer group 30% 30% 30%
72
Our governance
Section
2019 STIP Performance
3 The graphic below shows the extent to which the Group targets
were met for the year ended 31 March 2019.
Threshold Target Maximum
Metric Weight 0% 100% 200% Result
Implementation and Service
remuneration disclosure of the revenue
20% 61.7%
CEO, CFO and non-executive EBIT 20% 59.8%

directors Operating
free cash 20% 94.2%
flow
The implementation report details the outcomes of implementing Customer
40% 105.0%
the approved policy in the current financial year, as detailed in appreciation
section 2 of this report.
Overall result 100% 85.1%
2019 GP
The annual salary review process undertaken by the committee The overall achievement of target is 85.1%. The comparable
analysed market benchmarking and risks associated with Group STI achievement for 2018 was 116.9%.
retention of key management personnel. In light of this analysis, Based on a combination of Group and individual performance (as
the committee approved the following increases for the CEO detailed in the remuneration policy) the resultant STIP awards for
and CFO: the CEO and CFO:
Executive % Executive %
directors 2019 2018 Increase Currency directors 2019 2018 increase Currency
MS Aziz Joosub 11 500 000 10 600 000 8.5 ZAR MS Aziz Joosub 9 786 500 12 391 400 (21.0) ZAR
T Streichert 377 683 359 531 5.0 GBP T Streichert 168 804 221 818 (23.9) GBP
The GP figures above include retirement fund contributions,
medical aid and company car. 2019 LTIP performance
Vodacom benchmarks its CEO remuneration using the following Achievement of the 2019 LTIP represents the final vesting
approaches: percentage for awards made in June 2016 where the three-year
Comparison using an appropriate premium and/or discount to performance period concluded on 31 March 2019. These shares
the individual incumbents of direct competitors; will vest in June 2019 and will be disclosed in the table of single
Comparison using a portfolio of similarly sized companies, total figure of remuneration at the year-end share price of
where sizing is based on a combination of market cap, number R111.43 for Vodacom shares.
of employees, total assets and turnover; and Threshold Target Maximum
Comparison using a grade-based approach, to a local Executive Metric Weight 20% 50% 100% Result
Remuneration Survey.
Operating
70% 62.9%
Given the analysis of all three of these benchmarking approaches, free cash flow
and in analysing both guaranteed and total remuneration (total
TSR 30% 0%
including STIP and LTIP), the RemCo approved an 8.5% increase
for Shameel as being appropriate for both the GP and total Overall result 100% 44.1%
remuneration.
The overall achievement was 44.1%. The comparable Group LTIP
All employees received a GP increase of 5.0% on average in
achievement for 2018 was 76.6%.
South Africa and market-related increases in our International
operations. Based on a combination of policy and talent rating (as detailed in
the remuneration policy) LTIP awards were made to the CEO and
CFO in June 2018. The details of these are included in the tables
of outstanding share awards.

Shameel Joosub (CEO)

Pay mix for the CEO
■ GTCE ■ GSTIP ■ LTIP
Min 100%
On target 100% 100% 190%
Max 100% 200% 405%
The maximum STIP for Shameel is 2.0 times the target. This is the maximum business
performance multiplier as no personal GTCE ■ GSTIP ■ LTIP
■
multiplier is applicable.
Similarly
Min to the STIP, Shameel does not have an individual performance multiplier on
100%
LTIP, hence
On target
the maximum represents the potential maximum of shares that could vest,
100% 60% 70%
whereas on target represents the number of shares which are anticipated to vest.
Max
Dividends100% 180% in cash on
are received 233%
all outstanding unvested LTIP awards at each
dividend declaration date. Since the dividend varies from period to period, it has not
been included in the pay mix depiction indicated above.
Tables of single total figure of remuneration

The following tables have been prepared in accordance with the provisions of King IV and practice notes and thus include an LTIP amount.
The LTIP is valued at the year-end share price of R111.43 for Vodacom shares and GBP1.398 for Vodafone shares.
Shameel Joosub
2019 2018 % increase Currency
GP 11 275 000 10 450 000 7.9 ZAR
Other1 4 800 4 800 – ZAR
STI2 9 786 500 12 391 400 (21.0) ZAR
LTI3 12 203 533 22 655 850 (46.1) ZAR
FSP 5 312 052 11 506 253 (53.8) ZAR
FSP Match 4 281 427 6 694 364 (36.0) ZAR
Vodafone Match 2 610 054 4 455 233 (41.4) ZAR
Dividends4 4 992 164 4 770 445 4.6 ZAR
Total (Pre tax) 38 261 997 50 272 495 (23.9) ZAR
Total (Post tax)5 21 044 099 27 649 872 (23.9) ZAR
1. This includes the Vodacom mobile phone benefit.
2. These amounts relate to the bonus payable in June 2019, which is derived from performance for the year ended 31 March 2019.
3. LTIP awards made in June 2016 will vest in June 2019.
4. Dividends are the total of cash receipts during the financial year based on previous unvested FSP LTIP awards and cash settled in lieu of dividends on Vodafone matching
shares. This does not include dividends receipted on awards where the performance measurement period has been concluded such as the conditional benefit shares,
co-investment contributions by the employee or matching awards, which have been settled previously.
5. Post tax values are indicative using a 45% rate of taxation rate being applicable to the gross amount.
74
Our governance
Tables of outstanding share awards (value of shares)

In the tables presented below, the value at award represents the face value of shares at the time of award. The value at year end, after
adjusting for share price movements and the targeted vesting level, thus represents the current estimate of value likely to accrue to
participants.
The column indicated by ‘Settled in the year’ represents the cash value of all awards that were settled per the disclosure requirements of
King IV. Similarly, the column indicated by ‘Forfeited in the year’ represents the cash value forfeited by participants in the year.
Estimated
Estimated effect of Forfeited Settled
Financial year Date Value at effect of performance in the in the Value at
awarded awarded award date share price1 targets2 year3 year3 year end4 Currency
Conditional benefit – restricted shares

2014 May 2013 23 669 391 (423 979) – – – 23 245 412 ZAR
Vodacom FSP – with company performance vesting conditions
2016 Jun 2015 13 140 009 (15 701) – (3 071 088) (10 053 220) – ZAR
2017 Jun 2016 17 999 921 (5 954 450) (6 022 736) – – 6 022 735 ZAR
2018 Jun 2017 18 000 294 (5 899 999) (6 050 148) – – 6 050 147 ZAR
2019 Jun 2018 29 680 063 (7 979 962) (10 850 051) – – 10 850 050 ZAR
Vodacom matching award
2016 Aug 2015 7 963 471 (322 010) – (1 788 102) (5 853 359) – ZAR
2016 Nov 2015 2 000 058 (340 814) – (388 263) (1 270 981) – ZAR
2018 Jun 2017 14 442 206 (4 733 756) (4 854 225) – – 4 854 225 ZAR
2018 Jun 2017 12 500 135 (4 097 199) (4 201 468) – – 4 201 468 ZAR
Vodafone matching award
Vodafone made a matching award of performance shares to the equivalent value. The Vodafone matching award will vest based on
actual targets achieved.
2016 Jun 2015 197 203 (73 616) – – (206 204)5 – GBP
2017 Jun 2016 216 350 (76 834) – – – 139 516 GBP
2018 Aug 2017 283 622 (106 612) – – – 177 010 GBP
Vodafone conditional shares
2019 Jun 2018 293 288 (70 671) – – – 222 617 GBP
YeboYethu units
2009 Sep 2008 – – – – (1 051 399) – ZAR
2016 Sep 2015 – – – – (350 745) – ZAR
Siyanda units
2019 Mar 2019 700 690 – – – – 700 690 ZAR
Notes:
1. The estimated effect of share price is based on the share price movement between the date of award and the closing price on 31 March 2019.
2. The estimated effect of performance targets is based on the targeted 50% vesting being applied.
3. Shares settled and forfeited in the year were at a price of R133.74 for FSPs and R133.84 (August 2018) and R124.00 (November 2018) for matching awards.
4. Value at year end is based on the closing share price on 31 March 2019 of R111.43 for Vodacom shares and GBP1.398 for Vodafone shares.
5. The target range is 0% – 250%.

Min 100%
Till Streichert (CFO) On target
Max
100%
100%
100%
200%
190%
405%
Pay mix for the CFO

Min 100%
On target 100% 60% 70%
Max 100% 180% 233%
Till’s maximum STIP is 3.0 times the target since he may receive a maximum personal
multiplier of 1.5 times in addition to the maximum business performance multiplier of
2.0 times.
Till participates in the Vodafone share scheme and qualifies for dividend equivalent shares
at the end of the vesting period, and only on the portion of the shares which vested
(performance and retention).
Tables of single total figure of remuneration

The following tables have been prepared in accordance with the provisions of King IV and practice notes and thus include an LTIP amount.
The LTIP is valued at the year-end share price of R111.43 for Vodacom shares and GBP1.398 for Vodafone shares.
Till Streichert
2019 2018 % increase Currency
GP 373 033 353 320 5.6 GBP
Other1 2 065 501 2 093 752 (1.3) ZAR
Other1 82 570 77 968 5.9 GBP
STI2 168 804 221 818 (23.9) GBP
LTI3 173 492 116 589 48.8 GBP
Vodafone shares 173 492 116 589 48.8 GBP
Dividend equivalent shares 20 855 20 541 1.5 GBP
Total (Pre tax) 818 754 790 236 3.6 GBP
Total (Pre tax) 2 065 501 2 093 752 (1.3) ZAR
1. This includes the Vodacom mobile phone benefit. For assignees this amount includes the gross value of assignment allowances, accommodation and educational benefits
for children paid.
2. These amounts relate to the bonus payable in June 2019, which is derived from performance for the year ended 31 March 2019.
3. LTIP awards made in June 2016 will vest in June 2019.
4. The CFO is taxed under a different regime, hence no post tax value is indicated for the CFO.
76
Our governance
Tables of outstanding share awards (value of shares)

T Streichert
Estimated
Estimated effect of Forfeited Settled
Financial Date Value at effect of performance in the in the Value at
year awarded awarded award date share price1 targets2 year3 year3 year end4 Currency
Vodafone shares – no Company performance vesting conditions

2016 Jun 2015 – – – – (31 727) – GBP
2017 Jun 2016 93 218 (33 105) – – – 60 113 GBP
2018 Jun 2017 89 254 (33 475) – – – 55 779 GBP
2019 Jun 2018 96 251 (23 193) – – – 73 058 GBP
Vodafone shares – with Company performance vesting conditions
2016 Jun 2015 – – – – (77 341) – GBP
2017 Jun 2016 372 861 (132 417) (120 222) – – 120 222 GBP
2018 Jun 2017 355 877 (132 776) (111 551) – – 111 550 GBP
2019 Jun 2018 384 995 92 768 – – – 292 227 GBP
Vodafone shares – matching award
2017 Nov 2016 44 046 (14 060) (14 993) – – 14 993 GBP
Notes:
1. The estimated effect of share price is based on the share price movement between the date of award and the closing price on 31 March 2019.
2. The estimated effect of performance targets is based on the targeted 50% vesting being applied.
3. No shares were forfeited during the year. Shares settled in the year were at a price of GBP1.824.
4. Value at year end is based on the closing Vodafone share price on 31 March 2019 of GBP1.398.

Termination of office payments

King IV recommends that the implementation report contain details of payments made as a result of any termination of employment for
executive management. For the 2019 period, there were no payments made.
Shareholding
Details of the beneficial interests of directors in Vodacom’s ordinary shares (excluding interests in the long-term incentive plans) are set
out in the Directors’ report in the consolidated annual financial statements available online on www.vodacom.com.
Funding of share plans and dilution details of the shares used for the FSP are set out in the consolidated annual financial statements and
the Directors’ report, which is available on www.vodacom.com.
All awards granted under the FSP are settled through the shares purchased in the market and not by newly issued shares.
Compliance with policy
The disclosure presented in this report is based on awards to qualifying employees where all remuneration decisions have been made in
total compliance with the remuneration policy as approved previously by shareholders. There have been no known deviations from policy
in the current financial year.
Non-executive directors
Non-executive director (NED) fees are benchmarked against a peer group of similar sized companies as detailed in the full remuneration
report available on www.vodacom.com. Vodacom believes that NED duties and fiduciary responsibilities extend well beyond simple
attendance at meeting. For this reason fees are set as single retainer amounts irrespective of meeting attendance. Non-executive directors
do not receive any short-term cash, nor do they receive any long-term share awards.
Non-executive director payments

In accordance with our memorandum of incorporation, shareholders must approve these fees at the AGM. The current fee level was
approved on 1 July 2018 at the AGM, and was implemented on 1 August 2018.
Based on Board and committee membership during the course of the year, the following payments were made to non-executive directors
for the current financial year ended 31 March 2019.
Payments to non-executive directors

2019 Fees
Social Social
and and
Nomination Ethics Ethics Other
Director ARCC ARCC RemCo RemCo Committee Committee Committee Committees
fee Chairman member Chairman member member Chairman member member Total
Name (R) (R) (R) (R) (R) (R) (R) (R) (R) (R)
PJ Moleketi1,2 2 695 333 – – – – – – – – 2 695 333
DH Brown1,2 466 501 333 808 – – 145 133 – – – 216 163 1 161 605
V Badrinath3,4 466 501 – – – 145 133 124 400 – 31 650 113 300 880 984
M Joseph4 466 501 – – – – – – – 144 950 611 451
BP Mabelane2 466 501 – 190 747 – – – – – – 657 248
SJ Macozoma1,2,3 594 784 – 190 747 – – 31 650 217 701 – – 1 034 882
JWL Otty4 466 501 – – – – – – – 144 950 611 451
M Pieters3,4,5 134 274 – – – – – – – – 134 274
S Sood3,4,6 332 227 – – – – – – – – 332 227
TM Mokgosi-
Mwantembe1,2,3,7 347 813 – – 189 365 – 92 750 – – – 629 928
P Mahanyele-
Dabengwa1,2,3,8 118 688 – – 64 619 – – – – – 183 307
RAW
Schellekens3,4,9 347 813 – – – 108 208 92 750 – 92 750 – 641 521
T Reisten3,4,10 118 688 – – – – – – – – 118 688
F Bianco3,4,11 – – – – 36 925 31 650 – – – 68 575
7 022 125 333 808 381 494 253 984 435 399 373 200 217 701 124 400 619 363 9 761 474
Notes:
1. Fees excluding VAT paid.
2. Independent non-executive directors received an amount of R2 500 or R4 000 in September 2018, for incidental expenses while travelling to Board meetings held in Germany.
3. Fees for a portion of the year.
4. Fees paid to Vodafone and not the individual director.
5. M Pieters resigned on 18 July 2018.
6. S Sood appointed on 18 July 2018.
7. TM Mokgosi-Mwantembe resigned on 31 December 2018.
8. P Mahanyele-Dabengwa appointed on 1 January 2019.
9. RAW Schellekens resigned on 31 December 2018.
10. T Reisten appointed on 1 January 2019.
11. F Bianco appointed as an alternate director to M Joseph on 1 January 2019.
78
Our governance
Payments to non-executive directors

2018 Fees
Social Social
and and
Nomination Ethics Ethics Other
Director ARCC ARCC RemCo RemCo Committee Committee Committee committees
fee Chairman member Chairman member member Chairman member member Total
Name (R) (R) (R) (R) (R) (R) (R) (R) (R) (R)
PJ Moleketi1, 2, 3, 5 1 930 081 – 52 218 – – – 62 661 – 25 000 2 069 960
DH Brown1, 2 430 000 321 333 – – 138 333 – – – 50 000 939 666
V Badrinath4 430 000 – – – 138 333 120 000 – – 25 000 713 333
M Joseph4 430 000 – – – – – – – 25 000 455 000
BP Mabelane2 430 000 – 181 000 – – – – – 25 000 636 000
SJ Macozoma1, 2, 3, 6 380 296 – 128 782 – – – 105 000 – – 614 078
TM Mokgosi-
Mwantembe1, 2 430 000 – – 243 333 – 120 000 – – 25 000 818 333
MP Moyo3, 7 686 290 – – – – – – – – 686 290
JWL Otty4 430 000 – – – – – – – 25 000 455 000
M Pieters4 430 000 – – – – – – – – 430 000
RAW Schellekens4 430 000 – – – 138 333 120 000 – 120 000 – 808 333
6 436 667 321 333 362 000 243 333 414 999 360 000 167 661 120 000 200 000 8 625 993
Notes:
1. Fees excluding VAT paid from 1 June 2018.
2. Independent non-executive directors received an amount of R2 000 or R3 400 in September 2017, for incidental expenses while travelling to Board meetings held in Portugal.
3. Fees for a portion of the year.
4. Fees paid to Vodafone and not the individual director.
5. PJ Moleketi appointed as Chairman on 19 July 2017.
6. SJ Macozoma appointed on 19 July 2017.
7. MP Moyo retired on 18 July 2017.

Share information
Total shareholding
March 2019
# of shares % holding
Vodafone Group PLC1 1 110 629 881 60.5
Government Employees Pension Fund 245 076 128 13.3
YeboYethu Investment Company (Pty) Limited 114 451 180 6.2
Wheatfield Investments 276 (Pty) Limited 15 421 231 0.9
Institutional investors 271 205 172 14.8
Retail positions 24 222 199 1.3
Other2 54 859 170 3.0
Total 1 835 864 961 100
1. Directly held by Vodafone Investments SA (Pty) Ltd and Vodafone International Holdings B.V.
2. Other refers to the balance of remaining holdings, including shares below the analysis threshold which may include additional institutional/retail shareholdings.
7 Dividend per share (cents per share)

6 Institutional shareholding1 as at 31 March
■ 2019 ■ 2018 ■ Final dividend
5 1 1 PIC 32% 46% ■ Interim dividend
2 YeboYethu 16% – 400
3 South Africa 2019
4 395
(excl. PIC and YeboYethu) 18% 18% 425
4 United States 16% 20% 2018
390
5 United Kingdom 5% 7% 435
6 Rest of Europe 4% 3% 2017
395
3 2 7 Rest of World 8% 7%
1. Excluding Vodafone Group PLC.
Source: JP Morgan Cazenove
Share price and volume performance ■ Volume (millions) – Share price (ZAR)
Share volume Share price
(millions) (R)
8.0 190
7.2 180
6.4 170
ECA public US – China
5.6 hearings trade war and 160
BEE transaction
announced Sanctions on Turkey
4.8 150
Moody’s negative
assessment of
4.0 SA economy MTN Nigeria 140
Antici-
contagion pation
SA recession of
3.2 130
SONA Moody’s
1
Eskom2 assess-
2.4 ment 120
1.6 110
0.8 100
0 90
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
18 18 18 18 18 18 18 18 18 19 19 19
Notes:
1. State of the Nation Address.
2. Eskom loadshedding.
80
Administration
Ticker symbol VOD

ADR code VDMCY
Stock exchange JSE Limited
Shares in issue 1 835 864 961
Free float 20%
Transfer agent Computershare
Vodacom share price closed at Total TSR since
R111.43
beginning of trade
on 31 March 2019 with a high of

R160.29 and a low of R109.40.
235.8%
Total dividend declared as at 31 March Total shareholder return
(R million) ■ 2019 ■ 2018 ■ 2017 for the year ended 31 March 2019 (%) ■ US$ ■ ZAR
(36.2%)
2019 14 596 +4.0% Vodacom (22.4%)
(35.5%)
2018 14 030 MTN (21.5%)
(13.7%)
2017 12 350 JSE All Share 5.0%
21.1%
Telkom 47.4%
Source: FactSet
Top ten institutional investors as at 31 March (millions of shares)

■ 2019 ■ 2018
235.1
PIC (ZA) 231.7
Lazard Asset 29.4
Management LLC (US) 28.0
24.5
BlackRock Advisors LLC (US) 20.8
22.4
2019 Investor relations calendar
The Vanguard Group Inc. (US) 20.7
GIC Asset Management 12.2
Pte Limited (SG) 11.9 Tuesday 23 July 2019
8.8
Abax Investments (ZA) 9.3 Vodacom Group AGM
State Street Global 9.8
Advisors (US) 8.2 Thursday 25 July 2019
Old Mutual Investment 8.8 Q1 results
Group SA (ZA) 11.1
Sanlam Investment 8.1 Monday 11 November 2019
Management (Pty) Limited (ZA) 8.5
Schroder Investment 8.1 Interim results
Management Ltd (UK) 5.4
Source: JP Morgan Cazenove

Disclaimer
Non-IFRS information future performance generally; expectations regarding the
This report contains certain non-IFRS financial measures which operating environment and market conditions and trends;
have not been reviewed or reported on by the Group’s auditors. intentions and expectations regarding the development, launch
The Group’s management believes these measures provide and expansion of products, services and technologies; growth in
valuable additional information in understanding the performance customers and usage; expectations regarding spectrum licence
of the Group or the Group’s businesses because they provide acquisitions; expectations regarding adjusted EBITDA, capital
measures used by the Group to assess performance. However, additions, free cash flow, and foreign exchange rate movements;
this additional information presented is not uniformly defined and expectations regarding the integration or performance of
by all companies, including those in the Group’s industry. current and future investments, associates, joint ventures,
Accordingly, it may not be comparable with similarly titled non-controlled interests and newly acquired businesses.
measures and disclosures by other companies. Additionally,
although these measures are important in the management Forward-looking statements are sometimes, but not always,
of the business, they should not be viewed in isolation or as identified by their use of a date in the future or such words as “will”,
replacements for or alternatives to, but rather as complementary “anticipates”, “aims”, “could”, “may”, “should”, “expects”, “believes”,
to the comparable IFRS measures. “intends”, “plans” or “targets” (including in their negative form). By
their nature, forward-looking statements are inherently predictive,
Normalised growth speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that may or may not occur in
All amounts in this report marked with an ‘*’ represent normalised
the future. There are a number of factors that could cause actual
growth which presents performance on a comparable IAS 18 basis.
results and developments to differ materially from those expressed
This excludes merger and acquisition activity where applicable
or implied by these forward-looking statements. These factors
and adjusting for trading foreign exchange and foreign currency
include, but are not limited to, the following: changes in economic
fluctuation on a constant currency basis (using current year as
or political conditions in markets served by operations of the Group;
base). We believe that normalised growth, which is not intended to
greater than anticipated competitive activity; higher than expected
be a substitute for or superior to reported growth, provides useful
costs or capital expenditures; slower than expected customer
and necessary information to investors and other interested
growth and reduced customer retention; changes in the spending
parties for the following reasons:
patterns of new and existing customers; the Group’s ability to
It provides additional information on underlying growth of the
expand its spectrum position or renew or obtain necessary licences;
business without the effect of certain factors unrelated to the the Group’s ability to achieve cost savings; the Group’s ability to
operating performance of the business; execute its strategy in fibre deployment, network expansion,
It is used for internal performance analysis; and
new product and service roll-outs, mobile data, enterprise and
It facilitates comparability of underlying growth with other
broadband; changes in foreign exchange rates, as well as changes
companies, although the term normalised is not a defined in interest rates; the Group’s ability to realise benefits from entering
term under IFRS and may not, therefore, be comparable with into partnerships or joint ventures and entering into service
similarly titled measures reported by other companies. franchising and brand licensing; unfavourable consequences to the
Group of making and integrating acquisitions or disposals; changes
Trademarks to the regulatory framework in which the Group operates; the
Vodafone, the Vodafone logo, M-Pesa, Connected Farmer, impact of legal or other proceedings; loss of suppliers or disruption
Vodafone Supernet, Vodafone Mobile Broadband, Vodafone of supply chains; developments in the Group’s financial condition,
WebBox, Vodafone Passport, Vodafone live!, Power to You, earnings and distributable funds and other factors that the Board
Vodacom, Vodacom 4 Less and Vodacom Change the World are takes into account when determining levels of dividends; the
trademarks of Vodafone Group PLC (or have applications pending). Group’s ability to satisfy working capital and other requirements;
Other product and Company names mentioned herein may be changes in statutory tax rates or profit mix; and/or changes in tax
the trademarks of their respective owners. legislation or final resolution of open tax issues.
All subsequent written or oral forward-looking statements
Forward-looking statements attributable to the Company, to any member of the Group or to any
This Integrated report, which sets out the annual results for persons acting on their behalf are expressly qualified in their
Vodacom Group Limited for the year ended 31 March 2019, entirety by the factors referred to above. No assurances can be
contains ‘forward-looking statements’ which have not been given that the forward-looking statements in this document will be
reviewed or reported on by the Group’s auditors, with respect to realised. Subject to compliance with applicable laws and regulations,
the Group’s financial condition, results of operations and Vodacom does not intend to update these forward-looking
businesses and certain of the Group’s plans and objectives. In statements and does not undertake any obligation to do so.
particular, such forward-looking statements include, but are not
limited to, statements with respect to: expectations regarding the
Group’s financial condition or results of operations, including the
confirmation of the Group’s targets, expectations for the Group’s
82
Administration
Glossary
All amounts in this Integrated report marked with an ‘*’ represent normalised growth which presents performance on a
* comparable IAS 18 basis. This excludes merger and acquisition activity where applicable and adjusting for trading
foreign exchange and foreign currency fluctuation on a constant currency basis (using the current year as base).
# Information pertaining to South Africa only.
2G 2G networks are operated using global system for mobile (GSM) technology which offer services such as voice, text
messaging and basic data. In addition, the entire Group’s controlled networks support general packet radio services
(GPRS), often referred to as 2.5G. GPRS allows mobile devices to access internet protocol (IP) based data services such
as the internet and email.
3G A cellular technology based on wideband code division multiple access (CDMA) delivering voice and data services.
4G 4G technology offers even faster data transfer speeds than 3G/HSPA.
5G Fifth-generation wireless is the latest iteration of cellular technology, engineered to greatly increase the speed and
responsiveness of wireless networks.
BEE FTTx
Black Economic Empowerment is a programme launched The number of fixed-line connections in South Africa which
by the South African Government to redress inequalities by giving includes Fibre to the Home (FTTh) and Fibre to the Business
previously disadvantaged groups opportunities previously not (FTTb).
available to them. It includes measures such as employment
equity, skills development, ownership, management, International
socioeconomic development and preferential procurement. International comprises the segment information relating to the
non-South African-based cellular networks in Tanzania, the
Churn Democratic Republic of Congo, Mozambique and Lesotho, as well
Churn is calculated by dividing the annualised number of as the operations of Vodacom International Limited and Vodacom
disconnections during the period by the average monthly Business Africa.
customers during the period.
n/a
Consumer Not applicable.
A customer in their individual capacity accessing mobile
and/or fixed products and services. n/m
Not measured.
EBIT
Earnings before interest and taxation, impairment losses, profit/ RAN
loss on disposal of investments, property, plant and equipment, Radio access network is part of a mobile telecommunications
and intangible assets, profit/loss from associate and joint venture, system which conceptually sits between the mobile phone and
restructuring cost and BEE income/charge. the base station.
EBITDA Smart devices

Earnings before interest, taxation, depreciation and amortisation, Smart devices include smartphones, tablets and modems.
impairment losses, profit/loss on disposal of investments,
property, plant and equipment and intangible assets, profit/loss South Africa
from associate and joint venture, restructuring costs and Vodacom South Africa is commonly referred to as South Africa in
BEE income/charge. the Integrated report. It relates to Vodacom (Pty) Limited, a private
limited liability company duly incorporated in accordance with the
Enterprise laws of South Africa and its subsidiaries, joint ventures and SPVs.
A customer that is a business or company accessing mobile and/
or fixed products and services. TSR
Total shareholder returns consist of the aggregate share price
appreciation and dividend yield.

Corporate information
Vodacom Group Limited Commercial bankers
(Incorporated in the Republic of South Africa) First National Bank (a division of FirstRand
(Registration number 1993/005461/06) Bank Limited)
(ISIN: ZAE000132577 Share code: VOD)
(Registration number 1929/001225/06)
(ISIN: US92858D2009 ADR code: VDMCY)
Corporate and Investment Banking
(Vodacom)
4 First Place, Corner of Pritchard and Simmonds Streets
Johannesburg 2001, South Africa
Secretary and registered office (PO Box 7791, Johannesburg 2000, South Africa)
of Vodacom Group Limited
Sandi Linford The Standard Bank of South Africa Limited
Vodacom Corporate Park (Registration number 1962/000738/06)
082 Vodacom Boulevard Corporate and Investment Banking
Midrand 1685, South Africa 30 Baker Street
(Private Bag X9904, Sandton 2146, South Africa) Rosebank
Telephone: +27 11 653 5000 Johannesburg 2001
Email: [email protected]
Citibank, N.A.
Sponsor (Registration number 1995/007396/10 Registered Bank)
(Incorporated under the National Banking Act
UBS South Africa (Proprietary) Limited of the United States of America)
(Registration number 1995/011140/07) 145 West Street
64 Wierda Road East Sandown
Wierda Valley, Johannesburg 2196, South Africa Sandton 2196
(PO Box 652863, Benmore 2010, South Africa) (PO Box 1800, Saxonwold 2132, South Africa)
Auditors Transfer secretaries

PricewaterhouseCoopers Inc. Computershare Investor Services
4 Lisbon Lane (Proprietary) Limited
Waterfall City (Registration number 2004/003647/07)
Jukskei View 2090, South Africa Rosebank Towers
(Private Bag X36, Sunninghill 2157, South Africa) 15 Biermann Avenue
Rosebank 2196
ADR depository bank South Africa
Deutsche Bank Trust Company Americas (PO Box 61051, Marshalltown 2107, South Africa)
c/o Ast and Trust Co
Group investor relations
Peck Slip Station
Telephone: +27 11 653 5000
(PO Box 2050, New York NY, 10272 – 2050)
Website: www.vodacom.com
Group media relations

Telephone: +27 11 653 5000
Website: www.vodacom.com
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Integrated

The future is exciting.

Our purpose Our vision Our way Our strategy

Why we exist Where we How we What we

Best customer experience Our brand and reputation

1. Including Safaricom at 100%.

Our business These are all available at www.vodacom.com

12 Our business model

16 Our operating environment

Sustainability annual financial

Your feedback please!

Sunil Sood Michael Joseph John Otty Thomas Vivek

1. Please address any comments to [email protected]

Our reporting boundaries

Implications Outcome of National and Stakeholder

Government and regulators

+4.3% +6.0% –6.6% –2.5% +11.8%

For our customers

Extended our network

23.3% 3G 4G that never had

DRC –29.2% 99.5% 90.4%

Obtained 4G licences and

M-Pesa customers billion million

For our employees

R6.11 R544 Encouraging diversity in South Africa:

billion million 76.0%

For providers of financial capital

R14.6 R3.0 R16.4 R3.3

Vodacom Group Limited

1993 1994 1995 1996 1997

empowering Vodacom Business is launched.

a connected Vodacom Tanzania

2009 2010 2012 2013 2014

1998 1999 2000 2001 2002 2003

2007 2006 2005 2004

Vodacom Tanzania We launch the first We celebrate our first

2015 2016 2017 2018 2019

First to launch LTE in

Vodacom Group Limited

Our products and services (outputs)

Consumer Enterprise Consumer

Our promise to customers

Quality Available anytime, anywhere, first time right.

Value Always have the best experience, value for money.

Customers (million) Revenue (million)

2019 31.9 2019 250 960

Vodacom Group Limited

Vodacom Group Limited

Shameel Aziz Joosub

Vodacom Group Limited

Our value chain activities

Key revenue differentiators

create value Our revenue

Vodacom Group Limited

How we sustain value

People, culture and governance (Human and intellectual capital)

Key inputs Activities to sustain value Outcomes (2019)

Quality relationships with key stakeholders (Social and relationship capital)

Key inputs Activities to sustain value Outcomes (2019)

Network and IT infrastructure (Manufactured capital)

1. Please address any comments to [email protected]

As part of our efforts to reduce our environmental impact and