Independent assurance report

To the Directors of Vodacom Group Limited

Report on selected key performance indicators

We have carried out a limited assurance engagement in order to state whether anything has come to our attention that causes us to believe that the selected key performance indicators (KPIs) described below, as presented in the 2016 Integrated Report of Vodacom Group Limited (Vodacom) for the year ended 31 March 2016 (the Report), are not prepared, in all material respects, in accordance with the criteria specified by Vodacom for reporting the selected KPIs, as set out below. This engagement was conducted by a multidisciplinary team including environmental and assurance specialists with relevant experience in sustainability reporting.

Subject matter

The subject matter for our limited assurance engagement are the selected KPIs included in the table below, which are marked with a ‘^’ on the relevant pages in the Report. The selected KPIs have been prepared by Vodacom applying its specified criteria for each KPI (Criteria), which information accompanies the performance information set out on the relevant pages of the Report (the accompanying Vodacom Group Limited’s reporting criteria can be accessed via the following link www.vodacom.com).

Category   Selected KPIs   Coverage     Reporting criteria
  1.   Net promoter score   South Africa only     Internal Guidelines (Vodacom Strategies)
  2.   Market share   Group     Internal Guidelines (Vodacom Strategies)
  3.   Brand leadership   Group     Internal Guidelines (Vodacom Strategies)
  4.   Data to service revenue   Group     Internal Guidelines (Vodacom Strategies)
  5.   New service to service revenue   Group     Internal Guidelines (Vodacom Strategies)
  6.   Enterprise to service revenue   Group     Internal Guidelines (Vodacom Strategies)
  7.   International to service revenue   Group     Internal Guidelines (Vodacom Strategies)
  8.   Number of fixed-line connections   South Africa only     Internal Guidelines (Vodacom Strategies)
  9.   Service revenue growth vs Total expense growth   Group     Internal Guidelines (Vodacom Strategies)
  10.   Engagement Score   Group     Internal Guidelines (Vodacom Strategies)
  11.   Reputation Survey – position relative to competitors   Group     Internal Guidelines (Vodacom Strategies)


Directors’ responsibilities

The Directors are responsible for the preparation and presentation of the selected KPIs in the Report in accordance with the above Criteria, and for the selection of methods included in the Criteria. No conclusion is expressed as to whether the selected methods used are appropriate for the purpose of reporting the selected KPIs in the Report. The responsibilities of the Directors include the identification of stakeholders and stakeholder requirements, material issues, commitments with respect to sustainability performance relevant to the preparation and presentation of the selected KPIs in the Report.

The Directors’ responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the selected KPIs in the Report, free from material misstatement whether due to fraud or error.

Inherent limitations

Non-financial performance information is subject to inherent limitations given the characteristics of the subject matter and the methods used for determining, calculating, sampling and estimating such information.

Our independence and quality control

We have complied with the independence and all other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Ernst & Young Inc. applies the International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Our responsibility

Our responsibility is to express a limited assurance conclusion on the selected KPIs based on the procedures we have performed and the evidence we have obtained. We conducted our limited assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board. That Standard requires that we plan and perform our engagement to obtain limited assurance about whether the selected KPIs are free from material misstatement.

A limited assurance engagement undertaken in accordance with ISAE 3000 (Revised) involves assessing the suitability in the circumstances of Vodacom’s use of its reporting criteria as the basis of preparation for the selected KPIs, assessing the risks of material misstatement of the selected KPIs whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the selected KPIs. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both risk assessment procedures, including obtaining an understanding of internal control relevant to the preparation of information used to prepare the selected KPIs solely for the purpose of determining the nature and extent of our procedures, and the procedures performed in response to the assessed risks. The procedures we performed were based on our professional judgement and included inquiries, observation of processes followed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records.

Given the circumstances of the engagement, in performing the procedures listed above we:

  • Interviewed management and senior executives to obtain an understanding of the internal control environment, risk assessment process and their selection and application of sustainability reporting policies relevant to the sustainability reporting process;
  • Inspected documentation to corroborate the statements of management and senior executives in our interviews;
  • Tested the processes and systems to generate, collate, aggregate, monitor and report the selected KPIs;
  • Inspected supporting documentation on a sample basis and performed analytical procedures to evaluate the data generation and reporting processes against the reporting criteria;
  • Evaluated the reasonableness and appropriateness of significant estimates and judgements made by the directors in the preparation of the selected KPIs; and
  • Evaluated whether the selected KPIs presented in the Report is consistent with our overall knowledge and experience of sustainability management and performance at Vodacom Group Limited.

Our procedures did not include testing controls or performing procedures in relation to checking aggregation or calculation of data within IT systems, which would have been performed under a reasonable assurance engagement.

The procedures performed in a limited assurance engagement vary in nature and form, and are less in extent than for a reasonable assurance engagement. As a result the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether Vodacom Group’s selected KPIs have been prepared, in all material respects, in accordance with the Criteria.

Limited assurance conclusion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the selected KPIs identified above in the subject matter paragraph, as presented in the Report are not prepared, in all material respects, in accordance with the Criteria.

Other matters

Our report does not extend to any disclosures or assertions relating to future performance plans and/or strategies disclosed in the Report.

The maintenance and integrity of Vodacom Limited’s website is the responsibility of management of Vodacom. Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes either to the selected KPI information as presented in the Report or to our report for our independent limited assurance engagement that may have occurred since the initial date of presentation on the Vodacom website.

Restriction of liability

Our work has been undertaken to enable us to express a limited assurance conclusion on the selected KPIs to the Directors of Vodacom in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than Vodacom Group Limited, for our work, for this report, or for the conclusion we have reached.

Ernst & Young Inc.
Director – Vinodhan Pillay
Registered Auditor
Chartered Accountant (SA)
102 Rivonia Road
Sandton
2196

3 June 2016