Vodacom

About this report

Vodacom Group Limited’s Integrated report, prepared in accordance with the IIRC’s International Framework, aims to provide our stakeholders with a concise, material and frank assessment of how we create value over time.

Report boundary and scope

This report reviews Vodacom’s strategy and business model, risks and opportunities, and operational and governance performance, for the financial year 1 April 2016 to 31 March 2017. The report covers the activities of the Vodacom Group and all our operating subsidiaries. Financial and non-financial data from our subsidiaries are fully consolidated¹. In assessing the risks, opportunities and outcomes that materially impact value creation we have looked beyond the financial reporting boundary to provide for the material interests of relevant stakeholders, and to address the significant risks, opportunities and impacts associated with our activities over the short-term (less than 12 months), medium-term (one to four years) and long-term (beyond four years).

Reporting frameworks

Our reporting process has been guided by the principles and requirements contained in the International Financial Reporting Standards (IFRS), the IIRC’s International Framework, the GRI’s Sustainability Reporting Standards, the King Code on Corporate Governance 2016 (King IV), the JSE Listings Requirements and the South African Companies Act, No 71 of 2008. We have provided extracts from the consolidated annual financial statements (AFS) in this report. The full set of consolidated annual financial statements (AFS), as well as a suite of additional reports, are available online or can be requested from our Company Secretary. Our 2016 Integrated report was awarded overall winner in the Chartered Secretaries Southern Africa Integrated report awards.

Materiality

This report provides information on all those matters that we believe could substantively affect value creation at Vodacom. Written primarily for current and prospective investors, the report is of interest to any stakeholder who wishes to make an informed assessment of Vodacom’s ability to create value over time. To identify and prioritise the material matters for inclusion in this report we undertook a structured process involving senior decisions makers from across the Group. The process involved a considered review of: Vodacom’s business model; our interaction with the six capitals (financial, manufactured, intellectual, human, social and relationship, and natural); our operating environment; and the interests of our key stakeholders as expressed by them during our normal business engagements with them. The outcomes of this process were reviewed and signed off by the Audit, Risk and Compliance Committee. This report presents the identified material information through a clearly structured narrative. Additional information not material for this report, but of interest for other purposes, is provided in our other reports and on our website, click here.

Integrated thinking

Integrated thinking is intrinsic to how we manage our business and to our internal strategy development and reporting practices. Our strategy and five strategic pillars have been developed to ensure that we manage the resources and relationships needed to create value over time. A considered assessment of the six capitals (as referred to in the IIRC’s Framework) informed both our strategy and the internal materiality process used to determine the content and structure of this report. A review of our interaction with the key resources and relationships impacting value is presented on our website click here.

Combined assurance

We use a combined assurance model to provide us with assurance obtained from management and from internal and external assurance providers. PricewaterhouseCoopers Inc. audited our consolidated annual financial statements 2017 and provided an unmodified opinion thereon. The extracts from the AFS in this Integrated report are from audited information, but are not themselves audited. KPMG have undertaken a limited assurance engagement on selected key performance indicators for the year ended 31 March 2017 presented in this report and linked to our five strategic priorities. We also engaged KPMG to undertake a limited assurance engagement, for South Africa, on selected elements of our Scope 1, 2 and 3 greenhouse gas emissions that are reported in our Sustainability report 2017. Those indicators that have been externally assured have been marked with a (^). Our Audit, Risk and Compliance Committee provides internal assurance to the Board on an annual basis on the execution of the combined assurance plan. The Group’s financial, operating, compliance and risk management controls are assessed by the Group’s internal audit function, which is overseen by the Audit, Risk and Compliance Committee.

Board approval

The Board has applied its collective mind to the preparation and presentation of the information in this report, which has been guided by the IIRC’s International Framework. The Board believes that this report addresses all material issues and presents a balanced and fair account of the Group’s performance for the reporting period, as well as an accurate reflection of our core strategic commitments for the short medium and long term. The directors have applied their judgement regarding the disclosure of Vodacom’s strategic plans, and have ensured that these disclosures do not place Vodacom at a competitive disadvantage. On the recommendation of the Audit, Risk and Compliance Committee, the Board approved the Vodacom AFS and the Vodacom Integrated report on 2 June 2017.

Signed on the Board’s behalf: