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Vodacom Group Limited
Integrated report for the year ended 31 March 2016
12
How we sustain value
Investing in the resources and relationships that
impact value
• 7 538 employees in
30 countries.
• Trusted employee relations.
• Sound compliance and
governance systems.
• Technical and managerial
skills.
• 61.3 million active
customers.
• Informed engagement with
regulators.
• Investor confidence.
• Positive supplier relationship.
• Trusted brand.
• 18 149 base station sites.
• South Africa 88.5%,
International 89.4% self-
provided fibre and microwave
connections.
• R39.7 billion value of property,
plant and equipment.
• 446 GWh electricity
#
.
• 181 442 kl water
#
.
• 4.6 million litres fuel
#
.
Key inputs
Key resources
People, culture and governance
(Human and intellectual capital)
The technical and managerial skills, productivity and wellbeing of our
people – coupled with a company culture and governance systems that
foster innovation and compliance – are critical to our long-term success.
Investing in our people is one of the most significant costs to our business.
Trusted relationships with key stakeholders
(Social and relationship capital)
A positive reputation and trusted relationship with customers, regulators,
investors, suppliers and communities is the foundation of our ability to
generate revenue. Maintaining trusted relationships across all stakeholders
may require trade-offs as we seek to address sometimes competing
stakeholder interests.
Network and IT infrastructure
(Manufactured capital)
Our network infrastructure, data centres, distribution infrastructure, IT and
billing and software applications are an important source of competitive
differentiation. Investing in building and maintaining this infrastructure
requires significant financial capital, and appropriate levels of human and
intellectual capital.
Financial capital
Financial capital – which includes shareholders’ equity, debt and
reinvested capital – is a critical input in executing our business activities
and in generating, accessing and deploying other forms of capital.
Balancing the short-term interests of investors with longer-term growth
objectives, and with some of the interests of other stakeholder groups,
remains an important objective.
Natural resources
(Natural capital)
We require natural capital such as land and energy to deploy and operate
our manufactured capital but such requirements are low in impact.
Accessing these inputs diminishes financial and natural capital, the impact
of which is lowered through energy efficiency initiatives and site sharing.
• R239 billion market
capitalisation at 31 March 2016.
• 0.7 times net debt to EBITDA
ratio to execute growth.
• R9.8 billion free cash flow.
• R716 million interest earned.
# South Africa only.