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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 <IR> 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 page 8.
Combined assurance
We use a combined assurance model to provide us with assurance
obtained frommanagement 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 <IR> 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:
MP Moyo
Shameel Aziz Joosub
Chairman
Chief Executive Officer
2 June 2017
2 June 2017
Vodacom Group Limited’s Integrated report, prepared
in accordance with the IIRC’s International <IR>
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 consolidated
1
. 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 <IR> 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.
1. Where we only have data for our South African operation (which represents 76.3% of service revenue and 85.8% of EBITDA), we indicate this with (#). We’ve used (*) to
indicate normalised growth adjusted for trading foreign exchange and at a constant currency, using the current financial year as a base (collectively ‘foreign exchange’).
About this report
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