Vodacom Integrated Report 2017

Vodacom Group Limited

Integrated report for the year ended 31 March 2017

Disclaimer

Non-IFRS information

This report contains certain non-IFRS financial measures which

has not been reviewed or reported on by the Group’s auditors. The

Group’s management believes these measures provide valuable

additional information in understanding the performance of the

Group or the Group’s businesses because they provide measures

used by the Group to assess performance. However, this additional

information presented is not uniformly defined by all companies,

including those in the Group’s industry. Accordingly, it may not be

comparable with similarly titled measures and disclosures by

other companies. Additionally, although these measures are

important in the management of the business, they should not be

viewed in isolation or as replacements for or alternatives to, but

rather as complementary to, the comparable IFRS measures.

Normalised growth

All amounts in this report marked with an ‘*’ represent normalised

growth adjusted for trading foreign exchange gains/losses and at

a constant currency (using current year as base) (collectively

‘foreign exchange’). We believe that normalised growth, which is

not intended to be a substitute for or superior to reported growth,

provides useful and necessary information to investors and other

interested parties for the following reasons:

It provides additional information on underlying growth of the

business without the effect of certain factors unrelated to the

operating performance of the business;

It is used for internal performance analysis; and

It facilitates comparability of underlying growth with other

companies, although the term normalised is not a defined term

under IFRS and may not, therefore, be comparable with similarly

titled measures reported by other companies.

Trademarks

Vodafone, the Vodafone logo, Vodafone Mobile Broadband,

Vodafone WebBox, Vodafone Passport, Vodafone live!,

Power to You, Vodacom, Vodacom M-Pesa, Vodacom Millionaires,

Vodacom 4 Less and Vodacom Change the World are trademarks

of Vodafone Group Plc (or have applications pending).

Other product and company names mentioned herein may

be the trademarks of their respective owners.

Forward-looking statements

This Integrated report which sets out the annual results for

Vodacom Group Limited for the year ended 31 March 2017 contains

‘forward-looking statements’, which have not been reviewed or

reported on by the Group’s auditors, with respect to the Group’s

financial condition, results of operations and businesses and certain

of the Group’s plans and objectives. In particular, such forward-

looking statements include, but are not limited to, statements with

respect to: expectations regarding the Group’s financial condition or

results of operations including the confirmation of the Group’s

targets, expectations for the Group’s future performance generally;

expectations regarding the operating environment and market

conditions and trends; intentions and expectations regarding the

development, launch and expansion of products, services and

technologies; growth in customers and usage; expectations

regarding spectrum licence acquisitions; expectations regarding

adjusted EBITDA, capital additions, free cash flow, and foreign

exchange rate movements; and expectations regarding the

integration or performance of current and future investments,

associates, joint ventures, non-controlled interests and newly

acquired businesses.

Forward-looking statements are sometimes, but not always,

identified by their use of a date in the future or such words as “will”,

“anticipates”, “aims”, “could”, “may”, “should”, “expects”, “believes”,

“intends”, “plans” or “targets” (including in their negative form). By

their nature, forward-looking statements are inherently predictive,

speculative and involve risk and uncertainty because they relate to

events and depend on circumstances that may or may not occur in

the future. There are a number of factors that could cause actual

results and developments to differ materially from those expressed

or implied by these forward-looking statements. These factors

include, but are not limited to, the following: changes in economic

or political conditions in markets served by operations of the Group;

greater than anticipated competitive activity; higher than expected

costs or capital expenditures; slower than expected customer

growth and reduced customer retention; changes in the spending

patterns of new and existing customers; the Group’s ability to

expand its spectrum position or renew or obtain necessary licences;

the Group’s ability to achieve cost savings; the Group’s ability to

execute its strategy in fibre deployment, network expansion,

new product and service roll outs, mobile data, enterprise and

broadband; changes in foreign exchange rates, as well as changes

in interest rates; the Group’s ability to realise benefits from entering

into partnerships or joint ventures and entering into service

franchising and brand licensing; unfavourable consequences to the

Group of making and integrating acquisitions or disposals; changes

to the regulatory framework in which the Group operates; the

impact of legal or other proceedings; loss of suppliers or disruption

of supply chains; developments in the Group’s financial condition,

earnings and distributable funds and other factors that the Board

takes into account when determining levels of dividends; the

Group’s ability to satisfy working capital and other requirements;

changes in statutory tax rates or profit mix; and/or changes in tax

legislation or final resolution of open tax issues.

All subsequent written or oral forward-looking statements

attributable to the Company, to any member of the Group or to any

persons acting on their behalf are expressly qualified in their

entirety by the factors referred to above. No assurances can be

given that the forward-looking statements in this document will be

realised. Subject to compliance with applicable law and regulations,

Vodacom does not intend to update these forward-looking

statements and does not undertake any obligation to do so.