Vodacom Integrated Report 2016

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Contributing to public finances
As a responsible multinational company, we understand that it
is in our interest – and the interest of our stakeholders – to
ensure that the public services and infrastructure we rely on are
fit for purpose and remain properly funded, including through a
transparent, fair and effective system of taxation. Our operating
businesses are subject to more than 30 different types of taxes
and fees every year, of which a significant number relate
specifically to the telecommunications industry. In 2016, we
contributed R14 710 million in cash to the public finances in
our countries of operation, up from R13 575 million in 2015.
This increase is primarily due to an increase in taxable income
resulting in higher corporate taxes, as well as an increase in
licence fees and telecommunications related taxes. The
Group’s total tax charge was R5 934 million. The difference
between the total tax contribution and the tax charge primarily
relates to telecoms specific taxes and other indirect taxes such
as value-added tax and employment taxes. Our separately
available Public finances report 2016 provides a
comprehensive country-by-country review of Vodacom’s
contribution to public finances in our countries of operation.
For our public finances report go to
vodacom
Strategy: Reputation continued
BEE scorecard
Element Weighting 2016 2015 Variance
Ownership 20 19.79 12.23 +7.56
Management/control 10 11.00 11.00 Par
Employment Equity 10 6.96 6.67 +0.29
Skills development 17 14.07 12.30 +1.77
Preferential procurement 20 23.43 22.53 +0.90
Enterprise development 11 11.00 11.00 Par
Socioeconomic development 12 12.00 12.00 Par
Total 100 98.25 87.73 +10.52
Vodacommost empowered JSE listed
company in the ICT sector in South Africa
This year, based on our score, Vodacom is the most empowered
JSE listed company in the ICT sector in South Africa. For the third
year running we retained our Level 2 BEE contributor status,
achieving a score of 98.25. This reflects our commitment to
implementing meaningful and sustainable transformation for our
employees, the people of South Africa and the economy as a whole.
We achieved good scores across each of the main rated elements:
À À Our black equity holding increased from 9.22% to 18.62%,
resulting in an increase of seven points.
À À On learning and development, we spent R114 million exceeding
the recognition of spend by R6.5 million, resulting in an increase
in the stretch score of 14 points by 0.7 of a point.
À À We exceeded the stretch target relating to preferential
procurement by 1.43 points (R26.2 billion weighted spend) by
significantly increasing our expenditure on BEE-status suppliers,
exceeding the target by R10 billion. We spent R5 billion on
suppliers that are more than 30% black women-owned
(significantly above the target of R1.8 billion and representing a
R3.5 billion increase from the previous year’s results), and we
spent R7.2 billion on suppliers with more than 51% black
ownership (an increase of R3.2 billion from the previous year,
and above the target of R2.8 billion).
À À Our enterprise development element realised an increase of
R270 million over target.
À À On socioeconomic development, we exceeded spend by
R48 million.
Vodacom Group Limited Integrated report for the year ended 31 March 2016
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