South African operations - Vodacom

1 South African operationsAnalyst presentation 2009 SiiiSocio-economic overview Country snapshotPopulation Africa s largest economywith well developed legal, financial, communications and natural resources industries Significant public expenditureprogrammes, growing Country snapshotPopulationMillionsgpppg,ggmiddle classand robust banking systemexpected to support economy Government budget forecasts for GDP growth reduced to , the lowest since 1998 South Large official populationboosted by significant unregistered base of immigrant workers Elections scheduled for 2009h African operaationsGDP per capitaInflation%US$42%42%Source:EIU, presentation 2009 TlktiTelecoms market overview Fixedline penetration (Dec07):84%Mobile SIM penetrationFixed-line and broadband snapshotAt 31 December Fixed-line penetration (Dec-07) PC penetration (Dec-07) Broadband penetration (Dec-08E)

2 African operaEstimated 70%70%ations70%70%people penetrationAnalyst presentation 2009 Stfii lfStrong financial performanceRevenueEBITDAR millionR millionSouthh African opera17 3%17 3% and growth in H1 and growth in H1 2009 Analyst presentation 2009 Cti dthitContinued growth in customersPrepaid customersThousandsContract Southyear on year growth to December 2008year on year growth to December 2008h African operaPrepaid ARPUC ontract ARPURR ationsAnalyst presentation 2009 Stth i d td ib bdbdStrong growth in data revenue driven by broadbandSA data revenue as a % of revenueBroadband connectivity packagesThousands% of SA h African ationsFY 2006FY 2007FY 2008H1 2009 Analyst presentation 2009 Ldikthi idb dbdLeading market shares in voice and broadbandVodacom SA is the market leader in terms of mobile and broadband customersMarket share of broadband customersAt 30 September 2008 Market share of mobile customers1As at 30 September 20081 South2h African opera% 39 2.

3 Telkom363. MTN 154. 1. Vodacom 532. MTN 343. Cell C 4 Mobile 1 Source:My Broadband, November 2008, Vodacom estimatesSource:Company information, Vodacom estimatesAnalyst presentation 2009B ildibit ldBuilding a business to leadVodacom SA is the market leader in terms of customers and revenue market shareCustomercareNetwork careSouthSupply chainProducts andservicescustomerh African operamanagementcustomerationsDistributio n Brand Analyst presentation 2009 Ahi hlittk ithiibdb dA high quality network with improving broadband coverageThe investment in network infrastructure and state-of-the-art technologies has enabled Vodacom to develop a leading market position in mobile voice and dataGSM/GPRSEDGE3 GSouthGPRSEDGEUMTSh African opera Covers 98% of the SA population Data throughput of up 68 kb/s Covers 26% of the SA population Data throughput of up to 236 kb/s Covers 27% of the

4 SA population Data throughput of up to Mb/sationsIn addition to improving coverage, investments are being made to improve efficiency and quality Radio access network Softswitches Self-built transmission (microwave and fibre)Analyst presentation 2009 Adiffti t ilh itA differentiator in supply chain managementVodacom has a state-of-the-art warehouse in Midrand that handles on overage more than 160,000 units per day, 98% of which are delivered within 48 hours to major centresSA handset salesUnits (millions) h African 2004 FY 2005 FY 2006 FY 2007 FY 2008 CAGRA nalyst presentation 2009 Eff ti ditibtitkhli hf lltEffective distribution network helps win share of walletVodacom s strategy is based on optimising the path to market across as broad a spectrum as possible, with more than 25,000 points of sale in South Africa Three service providers, with VSPC as theChannels Three service providers, with VSPC as the flagship service provider Distribution channels include national chains/retail outletsSouth informal channel comprising of street vendors company and independently owned cellular dealer and franchise outlets Vodacom Business an extensive direct salesh African operaVodacom Business.

5 An extensive direct sales division within Vodacom Vodacom s call centre-based online and off-the-page selling division Vodaworld a unique onestop mobileations Vodaworld, a unique one-stop mobile telecommunications mall Community services operatorsAnalyst presentation 2009Bd kti dhiBrand, marketing and sponsorship As voted for by Markinor Sunday Times Top Brand surveyA leading South African brandy Number one telecommunications brand Fourth overall favourite brand along-side Coca-Cola, SABM iller and Nike Fifth coolest brand in South AfricaSouthFifth coolest brand in South Africa Vodacom voted favourite advertiser iconic Meerkat and entertaining Lucky and George commercialsh African opera Vodacom continues its evolution into a truly customer-centric brandSports teamsTournamentsations Springboks Bafana Bafana Vodacom Blue Bulls Vodacom Super 14 Vodacom Cup Vodacom Tri Nations Vodacom Cheetahs Other prominent rugby and soccer teams Vodacom Challenge Vodacom Durban JulyAnalyst presentation 2009 Bdtdbi t tilditBrand supported by investment in employees and communityVodacom is considered one of the most favourable employers in South Africa due to its track record of human resources and community service

6 InitiativesFor our employees Equal opportunities International and domestic development opportunities-R70 million development expenditure A wide range of job specific training programmesSouth Competitive compensation and other benefits Budgeted well-being spend of R10 million in this financial yearh African operaFor our communities The Vodacom Foundation gives effect to the Vodacom Group s commitment of sharing the successes of the company with the communities in which it operatesationscompany with the communities in which it operates. Focus areas: -Education-Health-Security Total spend of R500 million since our inception, year to date spend of R70 millionAnalyst presentation 2009 Dli iff dblltiDelivering affordable solutionsVodacom continues to grow its customer base and prepaid ARPUs by delivering new affordable productsSouthh African operaationsAnalyst presentation 2009 Dliitidttldith ktDeveloping innovative products to lead in the marketContinuing our legacy of first to market with products and services sustains our market leading positionSouthh African operaationsAnalyst presentation 2009 Dli i hihddtltiDelivering high speed data solutionsVodacom is the largest provider of mobile broadband services in South Africa and is consistently bringing new products to market to entrench its leadership positionSouthh African operaationsAnalyst

7 Presentation 2009 Dli idltiDelivering new converged consumer solutionsNew converged services provide an additional customer retention tool and can support ARPU growthOnline servicesMedia & EntertainmentMedia & EntertainmentAdvertisingFinancialSouthFi nancialh African operaationsAnalyst presentation 2009 TtditTargeted campaign managementVodacom s campaign management system enables it to cost effectively target customers for the promotion of its innovative products and services St i htCustomer lifecycleConfidentCommunicatorsCautious CarersStraight TalkersCustomer lifecycle managementSouthCross selling and up sellingh African operaSteadyEddiesStatus SeekersMobile ManiacsRevenue generationationsChurn preventionAnalyst presentation 2009 CtdttiCustomer care and retentionLoyalty programmes and customer care are essential for effective churn management Onyx Talking pointsContractPrepaidmmes 3,000 users Platinum 11,000 users million redemptions to date redemption rate increased to Yebo millionaireslty programSouth Credit card 33,000 million unique users to date 180 million SMSs received from launch 1 million winners to dateLoyah African opera Seven company owned.

8 Vodacare specialises in Redesign of the existing Walk-in centresVodacareCall centresareationsyVodacom customer care and data care centres 10% year on year increase in foot traffic in onestop shopscellular repairs 39 branches and franchises in all major centresggcustomer care IVRs Re-engineering agent skills to a specialised single skilledenvironmentustomer cafoot traffic in one-stop shops Vodaworld has over one million visits per year 100,000 repairs per monthskilledenvironment Answer 70% of calls in 20 secCuAnalyst presentation 2009Kh lldi itiKey challenges and prioritiesKey challenges Economic climate and reducing consumer spending Increasing competition from new ECN licenseesKey challengesgp Changes in regulatory environmentSouthPrioritiesh African opera Focus on affordable solutions and adding value Further enhance network coverage and quality Democratise access to data communicationsations Democratise access to data communications Maximise synergy benefits between mobile operation, Gateway, and Vodacom BusinessFttl Focus on cost control Customer traction in Vodacom BusinessAnalyst presentation 2009Q&ASouth African operationsAnalyst presentation 2009