About this report

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 2017 to 31 March 2018. 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. 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 three years) and long term (beyond three 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 King Code on Corporate Governance 2016 (King IV), the JSE Listings Requirements, the South African Companies Act, No 71 of 2008, and the GRI’s Sustainability Reporting Standards. 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.


This report provides information on all those matters that we believe could substantively affect value creation at Vodacom. The process of identifying and prioritising the material matters for inclusion in this report involved reviewing: 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 during our normal business engagements with them. This report presents the identified material information through a clearly structured narrative that: reviews who we are and how we create value; identifies those issues that have a significant impact on value; and outlines our strategy and performance in ensuring long-term value creation. Additional information not material for this report, but of interest for other purposes, is provided in our other reports and on our website.

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 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 2018 and provided an unmodified opinion thereon. The extracts from the AFS in this Integrated report are from audited information, but are not themselves audited. PricewaterhouseCoopers Inc. have undertaken a limited assurance engagement on selected elements of our Scope 1, 2 and 3 greenhouse gas emissions that are reported in our Report of the Social and Ethics Committee. 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

As outlined at the front of this report, 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 Board approved the Vodacom AFS and the Vodacom Integrated report on 1 June 2018.