Vodacom Interim results

1 Vodacom Interim results for the six months ended 30 September 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. Promotional material used in this presentation that is based on pricing or service offering may no longer be applicable.

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

3 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 49 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. Interim results | 30 September 2017 2. Operating review Group salient features + + + Customers Revenue EBIT margin Net profit million billion billion billion + + 390 cents Data customers Capital HEPS Interim dividend expenditure per share million of revenue 445 cents per share Interim results | 30 September 2017 4.

4 South Africa | Strong customer net adds underpins growth + Key indicators 1H18 % change Revenue (Rm) 33 881 Revenue growth Service revenue (Rm) 26 670 EBITDA (Rm) 13 370 + Service revenue growth EBIT (Rm) 9 882 ( ). + Customers ( 000) 40 000 Data customers ( 000) 19 905 Customer net adds Active smart devices ( 000) 17 297 Interim results | 30 September 2017 5. International | Improving trends Key indicators 1H18 % change Normalised + *. Revenue (Rm) 8 574 ( ) Service revenue growth Service revenue (Rm) 8 308 ( ) EBITDA (Rm) 2 405 + Customer net adds EBIT (Rm) 988 + *. Customers ( 000) 31 092 Data customers ( 000) 14 755 M-Pesa revenue growth M-Pesa customers ( 000) 13 986 Interim results | 30 September 2017 6. Safaricom | Continued strong performance, double digit growth + Key indicators 1H18 % change Revenue (KES'bn) 114 Service revenue growth Service revenue (KES'bn) 110 EBITDA (KES'bn) 54 + Customer net adds EBIT (KES'bn) 38 + Customers ( 000) 29 490 Data customers ( 000) 16 946 M-Pesa revenue growth M-Pesa customers ( 000) 19 307 Interim results | 30 September 2017 7.

5 Safaricom | Co-operation priorities M-Pesa Enterprise Big data Kenya Penetration: Customer take-up Tanzania Moz Lesotho DRC. Market maturity: Functionality and products of Service revenue 32 countries Vodafone big data incubator USD6 billion transacted monthly IoT leader billion bundles sold Broad base of financial services VGE hub to leverage 719 million Just 4 You' bundles Interim results | 30 September 2017 8. Growth drivers South Africa data | Device, pricing and network supporting demand Data revenue Data progression as a % of service revenue Million + + + + + 1H17 1H18 Customers Data customers Active smart devices 4G customers 1H17 1H18. Voice Data Data bundles sold Promotions Million Average usage per smart device + + to 776MB. Data traffic up + customers are purchasing bundles 223 272 347. 1H17 2H17 1H18. Bundles sold % of data customers purchasing bundles Interim results | 30 September 2017 10. International | Data progressing Data contribution Data customers Thousand/%.

6 + Expanding data coverage Number of sites of International service revenue 463. 11 965 14 755 348. 1H17 1H18. Data customers Contribution to total customers Smartphone penetration %. 4 691 5 013. 1H16 1H17. capital investment 3G 4G. Data traffic up + of customers are using data Tanzania DRC Moz Lesotho Interim results | 30 September 2017 11. International | M-Pesa flying International M-Pesa customers1. Thousand + Africa's biggest payment platform of International service revenue R24 billion transacted monthly in 8 508 10 755 International 1H17 1H18. 1. 30 day customers R82 billion transacted monthly in Safaricom Safaricom M-Pesa customers1. Thousand Merchant payments expanding + of Safaricom service revenue 17 626 19 307. 1H17 1H18. 1. 30 day customers Interim results | 30 September 2017 12. Enterprise | Growing service revenue contribution SA Enterprise service SA Enterprise revenue of which SA fixed-line and BMS revenue revenue contribution R million R million + + of service revenue 6 141 6 758 871 973.

7 1H17 1H18 1H17 1H18. VBA service revenue impacted by currency devaluation R million UK. Malaysia Tunisia France Algeria Egypt Libya + *. Singapore Mauritania Mali Niger Senegal Sudan Enterprise churn Burkina Chad Djibouti Guinea Faso Benin S. Ghana Nigeria Leone Cote Ethiopia D'Ivoire CAR. Liberia Togo Kenya Gabon Rwanda Congo (DRC) Burundi Tanzania Seychelles Government contract Malawi Angola Zambia migration progressing Zimbabwe 684 576. Namibia Botswana Mauritius MPLS Network Swaziland Lesotho 1H17 1H18 South Africa Reachable through VSAT & Partners Interim results | 30 September 2017 13. New services | IoT scaling up to drive vertical integration Afrigis XLink Mezzanine Geo-location services Pay-point services Platform solutions NB IoT. R399m IoT revenue IoT connections 1st commercial transaction up + up + 1 100 base stations Metro areas Interim results | 30 September 2017 14. New services | Capturing new revenue shares Fintech Insurance Advances Payment services million policies purchases R342m airtime sales through airtime advance through Vodacom Improved margins up +47% Express Recharge up +53%.

8 Fibre Over 39 000 homes and businesses passed Wholesale partnership agreements additional access to over 175 000 end points Interim results | 30 September 2017 15. Strategy | Towards Vision 2020 Digital first Our Purpose To connect everybody to live a better today and build a better tomorrow Our Strategies Vision 2020. Segmented Best Customer Best Digital Our Brand and Propositions Experience Technology Organisation Reputation and Culture Responding to customer's Seamless Leading technology Innovation Agility Brand with a purpose Needs Frictionless Intelligent systems New skills Industry leader Wants Personalised Transform society Behaviours Digital Interim results | 30 September 2017 16. Segmentation | Based on customer needs The new Youth Emerging market High value The old Over 2 million subscribers Free health info Loyalty programmes Music talent show Free online learning 24/7 premium customer One size fits all care agents Exclusive access to events Facebook Flex Data sharing sims Exclusive rewards Free access to job sites Free access to selected job sites Free funeral cover Targeted digital content Interim results | 30 September 2017 17.

9 Segmentation | Sophistication through bundles Personalisation Machine learning Generic offers and Segment of one promotions Big Data Size Validity URL based small to large to cater for all short and long applied to your when you need it application million billion customers using bundles bundles sold reduction in reduction in price per mb price per minute Interim results | 30 September 2017 18. Big data | The tip of the Iceberg Credibility from Just for You Next steps Diversify the use cases Touch more of the business with big data Call centre optimisation through voice recognition Web scraping of deals to improve Machine learning Accelerate deeper learning competitiveness size - validity - URL Best data scientists Combining customer information for deeper analytics Bigger platform Just 4 You bundles of bundles sold customers engaged in Just 4 You Interim results | 30 September 2017 19. Digital sales | From physical to digital The enhanced USSD Online MyVodacom app The old Bricks and mortar Sales through 23 million + million customers using USSD digital online sales Vodacom app users Social media Interim results | 30 September 2017 20.

10 Best technology | South Africa maintaining our lead Population coverage +9ppts ahead Urban Coverage %. of nearest competitor network NPS. 2017 MyBroadband Awards Winner Best Mobile Network'. 2G 3G 4G. Benchmark data performance (4G). mbps Rural Coverage %. Downlink speed Uplink speed 12. 13. 6. 8. 30 26 14 10. Vodacom Operator A Operator B Operator C. 2G 3G 4G. Source: Drive tests (September 2017). Interim results | 30 September 2017 21. Best Technology | Information Technology - Leading IT systems Just 4 You New billing system New M-Pesa platform Deployed in all markets Improved single view of the customer Standardised platform across all markets Standardisation of platforms Contract customer migration completed New functionality Investing in best and latest technologies Better stability Interim results | 30 September 2017 22. Best Technology | International fending off the competition Data speeds mbps Tanzania DRC Moz Lesotho Vodacom Network NPS to nearest competitor Next best competitor Tanzania 2nd 1st in all operations Source: Ookla Portal - All Technologies (September 2017).