Vodacom Group Limited IR presentation

1 Vodacom Group Limited Investment case February 2017 Vodacom Group Limited IR presentation | 17 February 2017 Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated ( relevant persons ). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the Group .

2 Promotional material used in this presentation that is based on pricing or service offering may no longer be applicable. This presentation contains certain non-GAAP financial information which has not been reviewed or reported on by the Group s auditors. The Group s management believes these measures provide valuable additional information in understanding the performance of the Group or the Group s businesses because they provide measures used by the Group to assess performance. However, this additional information presented is not uniformly defined by all companies, including those in the Group s industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. Additionally, although these measures are important in the management of the business, they should not be viewed in isolation or as replacements for or alternatives to, but rather as complementary to, the comparable GAAP measures.

3 This presentation also contains forward-looking statements which are subject to risks and uncertainties because they relate to future events. These forward-looking statements include, without limitation, statements in relation to the Group s projected financial results. Some of the factors which may cause actual results to differ from these forward-looking statements are discussed on slide 23 of this presentation . Vodafone, the Vodafone logo, Vodafone Mobile Broadband, Vodafone WebBox, Vodafone WebBook, Vodafone Smart tab, Vodafone 858 Smartphone, Vodafone Passport, Vodafone live!, Power to You, Vodacom , Vodacom M-Pesa, Vodacom Millionaires, Vodacom 4 Less and Vodacom Change the World are trademarks of Vodafone Group Plc (or have applications pending). Other product and company names mentioned herein may be trademarks of their respective owners.

4 2 Vodacom Group Limited IR presentation | 17 February 2017 Vodacom DRC Licenced 2002 Population 71 million Vodacom Tanzania Licenced 1999 Population 55 million Vodacom Mozambique Licenced 2003 Population 29 million Vodacom Lesotho Licenced 1995 Population 2 million Vodacom south africa Licenced 1993 Population 55 million All information in presentation is as at 31 March 2016, unless otherwise stated. #Market capitalisation value as at 17 February 2017. 1. As at 31 December 2016 A leading African mobile communication company providing a wide range of communication services including mobile voice, messaging, data and converged services to over 65 million1 customers. Vodacom is majority owned by Vodafone Plc (65%) and we are listed on the JSE Limited . Market capitalisation of billion#. Group revenue of billion.

5 Head office in Midrand, south africa History consistent track record of innovation 2012 2011 2009 2008 2004 1996 First to launch prepaid services in the world on IN platforms Vodacom launches a 3G HSDPA network in south africa Vodacom Business launches Vodacom listed on the JSE (18 May) Vodacom rebrands from Green and Blue to Vodafone RED LTE-Advanced launched First to launch 4G in south africa 2016 3 Vodacom Group Limited IR presentation | 17 February 2017 Share information As at 5 February 2017 JSE Ticker symbol VOD ADR code VDMCY Stock exchange JSE Limited Shares in issue 1 487 954 000 Freefloat 35% 52 week low and high R139 R172 Market capitalisation billion Transfer agent ComputerShare Indices FTSE/JSE Top 40 Index JSE Socially Responsible Index Nedbank BGreen Exchange Traded Fund 66% 20% 8% 2% 4% south AfricaUnited StatesUnited KingdomRest of EuropeRest of worldInstitutional shareholding1 4 PIC = 51% 1.

6 As at 27 January 2017 Vodacom Group Limited IR presentation | 17 February 2017 5 Five reasons to own Vodacom shares 2 3 Focus areas of growth potential Market leadership 1 Scale benefits driving efficiencies Experienced, diverse management team 5 Track record of delivering shareholder returns 4 5 Vodacom Group Limited IR presentation | 17 February 2017 #1 mobile operator in all markets All information is as at 31 March 2016 #1 | Market leadership million customers in 5 countries in Sub-Saharan africa R14 billion enterprise revenue from 30 countries in africa R13 billion Investment per annum to maintain our leading network quality > 18 000 base stations, >80% 3G 1st to launch 4G in south africa , Lesotho and Tanzania 6 Vodacom Group Limited IR presentation | 17 February 2017 Enterprise (21% of Group service revenue) Enterprise contributes 21% to Group service revenue SA fixed and managed services revenue +27% oPan African MPLS network oFibre to the business/home 7 #2 | Focus areas of growth potential Data (32% of Group service revenue) Group : 29 million active data customers; 57% of total base SA: 14 million active smart devices.

7 37% of active customers SA: 572MB per smart device growing 23% International (27% of Group service revenue) 27% of Group service revenue Data revenue growth +32% Active customers 27 million oActive customers now 44% of Group active customers FY14: +37% FY15: +13% FY16: +19% FY14: +24% FY15: +10% FY16: +17% New services (SA) ( of Group service revenue) Insurance revenue +19% oExpanding portfolio: life, funeral, device, cover Capture Internet of Things opportunity Fibre to home +25 000 homes and businesses passed 7 . FY14: +33% FY15: +25% FY16: +29% Vodacom Group Limited IR presentation | 17 February 2017 8 Focussed savings programmes Fit 4 Growth Reduced transmission rentals through self-provisioning Cost optimisation through sharing, outsourcing and supply chain management Improved return on investment in customer acquisition spend Reduced support costs offsetting inflationary pressures Benefits from being part of the Vodafone Group Global technology and product roadmap Better pricing through Vodafone Procurement Company Benefits from best practice sharing and benchmarking Talent and skills sharing #3 | Scale benefits driving efficiencies 8 Vodacom Group Limited IR presentation | 17 February 2017 4 Executive Committee (12 members) Male 83% Female 17% CEO.

8 Shameel Aziz Joosub (45) 20 years industry experience Previously CEO of Vodafone Spain IT Person of the year 2015 CFO: Till Streichert (41) 15 years industry experience Previously CFO of Vodafone Romania European and emerging market experience #4 | Experienced, diverse management team Black 58% White 42% south African 75% Intern-ational 25% 9 Vodacom Group Limited IR presentation | 17 February 2017 375 395 395 400 400 FY15FY16FY17 Interim dividend Final dividendDividend per share Cents per share 775 795 #5 | Consistently delivering shareholder returns Relative share price performance1 Total shareholder return2 1. As at 15 February 2017. 2. ZAR year to date for the 12 months ending 15 February 2017 Vodacom Group Limited IR presentation | 17 February 2017 11 Service revenue growth Low to mid single-digit Mid to high single-digit EBITDA growth 12% to 14% Capex intensity Targets | Group medium-term targets 11 Vodacom Group Limited IR presentation | 17 February 2017 Vodacom Group Limited IR presentation | 17 February 2017 Continuing to deliver returns 12 Best network ---------------------Best value --------------------- Best service Diversify revenue to deliver growth Deliver cost and process efficiency Best talent ---------------------Best practice Transform society and build stakeholder trust Vodacom Group Limited IR presentation | 17 February 2017 Network customer satisfaction #1 in all markets but one 4G coverage in SA at 58% International sites

9 +17% SA dropped call rate @ 1st in SA with commercial mobile LTE-A Personalised pricing and offers Driving pricing transformation Reducing communication costs Stimulating bundle adoption Connectivity Always in control Rewarding loyalty Easy access Best network Best value Best service 13 Customer | Best network, Best value, Best service 23 18 17 10 Vodacom SA Operator A Operator B Operator CSource: MyBroadband (March 2016) (Mbps) Average download speeds in SA Million Total prepaid bundle sales in SA 314 387 383 369 86 189 1H152H151H162H16 Total prepaid bundle salesJust 4 YouFY15FY16 VodacomCompetitor ACompetitor B% SA Consumer NPS1 points differentiation +15 ppts +6 ppts 1. Net Promoter Score Vodacom Group Limited IR presentation | 17 February 2017 14 Growth | Diversifying revenue to deliver growth 14 Data contribution International contribution Enterprise contribution Growth +17% EBITDA contribution (FY14: ) M-Pesa revenue +19% Enterprise service revenue +20% fixed-line & BMS revenue Growth + Average usage per smart device - 572MB 2G to 3G.

10 3G to 4G ARPU uplift +20% FY16 FY14 Contribution to Group service revenue FY16 FY14 Contribution to Group service revenue FY16 FY14 Contribution to Group service revenue New services contribution (SA) FY16 FY14 Contribution to SA service revenue Device insurance policies +25% IoT connections +28% Wholesale partnership agreements for fibre GDSP platform delivery Vodacom Group Limited IR presentation | 17 February 2017 Direct expenses1 15 Operations | Fit for growth SA Channel efficiencies Sophisticated IBRO management Credit management of SR4 (FY15: ) Staff expenses2 Hire in key growth areas Attract and retain talent of SR4 (FY15: ) Publicity expenses Consolidated agency spend Improved production cost efficiency Increased digital/social platform spend Increased share of voice of SR4 (FY15: ) Other operating expenses3 Reduced network cost per site Improved digitisation and App penetration Leverage scale through sharing and outsourcing of SR4 (FY15: ) 15 Actively managing costs Sharing and outsourcing to realise scale Incentives volume vs revenue Digitisation self care and empowering customers Cost consciousness at an individual level Number of sites +9% Inflation +6% Wage inflation +6% Energy inflation +13% Innovate equipment expenses.