How we sustain value

Investing in the resources and relationships impacting value.
Key resources

People, culture and governance

(Human and intellectual capital)

The technical and managerial skills, productivity and wellbeing of our people – coupled with a company culture and governance systems that foster innovation and compliance – are critical to our long-term success.

Investing in our people is one of the most significant costs to our business, impacting short-term financial capital, but generating longer-term returns in all capital stocks. The anticipated changing nature of work, and the increasing role of digital and Artificial Intelligence may result in some pressure on certain traditional job functions.

Key inputs
  • 7 554 employees.
  • R278 million invested in employee and leadership training.
  • Strong global brand.
Activities to sustain value
  • Providing competitive remuneration and personal development opportunities.
  • Investing in technical skills and leadership development, employee wellness and safety.
  • Implementation of various health and safety initiatives.
  • Promoting employee diversity to address inequalities and improve customer appreciation.
  • Upskilling employees for digital transformation.
  • Implementing Agile business processes across all business units.
  • Improving our reputation as a quality employer of data scientists.
Outcomes (2018)
  • R5.5 billion1 invested in wages and benefits.
  • 75% black and 48% female representation in senior management in South Africa.
  • 9.0% voluntary staff turnover.
  • 78 Employee Engagement Index.
  • 3 contractor fatalities in the DRC.


Key resources

Quality relationships with key stakeholders

(Social and relationship capital)

A positive reputation and quality relationship with customers, regulators, investors, suppliers and communities is the foundation of our ability to generate revenue.

We believe in maintaining strong relationships with all our stakeholders. We see our role in society as positively contributing to societal issues like education, health and security. Investing in social capital often requires short- and medium-term financial capital inputs, but generally generates positive return across most capitals.

Key inputs
  • 73.8 million customers.
  • Informed engagement with regulators.
  • Investor confidence.
  • Positive supplier relationship.
  • Trusted brand.
Activities to sustain value
  • Differentiating our customer offering through network quality, positive customer experience, and tailored products and services.
  • Engaging actively with regulators, pursuing full compliance and driving a societal contribution.
  • Ensuring transparent investor communication.
  • Delivering social value through enhanced connectivity and services in inclusive finance, education, health and security.
Outcomes (2018)
  • Net promoter score (NPS) leader in all markets.
  • R16.5 billion total cash contribution to public finances.
  • R31.2 billion weighted spend on BEE-status suppliers in South Africa.
  • 11.8 million M-Pesa customers.
  • Lost customers due to customer registration requirements in Tanzania.


Key resources

Network and IT infrastructure

(Manufactured capital)

Our network infrastructure, data centres, distribution infrastructure and software applications are an important source of competitive differentiation.

Investing in building and maintaining this infrastructure requires significant financial capital, and appropriate levels of human and intellectual capital, as well as certain natural capital inputs and outcomes. Over the long term, the investments in manufactured capital typically generate net positive outcomes.

Key inputs
  • 20 139 base station sites.
  • South Africa 91.9%, International 87.5% self-provided fibre and microwave connections.
  • R11.6 billion invested in strengthening our networks and IT infrastructure.
Activities to sustain value
  • Maintaining our network and IT leadership through targeted investment.
  • Enabling 2G, 3G and 4G on same network equipment through radio access network modernisation programmes.
  • Developing systems and process to enable Big Data analytics.
Outcomes (2018)
  • Rated first for network quality in four out of five of our markets in network NPS.
  • 782 new 2G sites.
  • 1 334 new 3G sites.
  • 1 165 new 4G sites.
  • 54 247 fibre end points passed.


Key resources

Financial capital

(Financial capital)

Which includes shareholders’ equity, debt and re-invested capital – is a critical input in executing our business activities and in generating, accessing and deploying other forms of capital.

Balancing the short-term interests of investors with longer-term growth objectives, and with some of the interests of other stakeholder groups, remains a critical objective and often involves balancing certain trade-offs.

Key inputs
  • R263 billion market capitalisation.
  • 0.6 times net debt to EBITDA ratio to execute growth.
  • R14.2 billion free cash flow.
  • R703 million interest earned.
  • R42 billion investment in Safaricom.
Activities to sustain value
  • Optimising capital allocation.
  • Diversifying revenue growth areas.
  • Driving ‘Fit for growth’ cost programme.
  • Maintaining strong corporate governance structures and finance team.
  • Purchasing power on network equipment, devices and operating expenditure through Vodafone Procurement Company.
  • Employing smart capex deployments.
Outcomes (2018)
  • Revenue up 6.3% to R86.4 billion.
  • EBITDA up 5.3% to R32.9 billion.
  • Cash generated from operations: R32.3 billion.
  • Headline earnings per share: 923 cents.
  • Total dividend per share declared: 815 cents.
  • R2.8 billion paid to debt funders in interest.


Key resources

Natural resources

(Natural capital)

We require natural capital such as land and energy to deploy and operate our manufactured capital.

Accessing natural capital inputs diminish financial and natural capital over the shorter term. Some environmental outcomes impact negatively on human and social capital.

Key inputs
  • Radio spectrum (700, 800, 900, 1 800, 2 100, 2 300, 2 600 MHz bands).
  • 501 GWh electricity#.
  • 3 910 892 litres of fuel#.
  • 203 516 kl of water#.
Activities to sustain value
  • Strong focus on energy efficiency of our network.
  • Identify opportunities to use IoT to promote resource efficiency through smart metering.
  • Recycling handsets and network equipment.
Outcomes (2018)
  • 22 million GJ energy saved at our buildings in South Africa.
  • 349 tonnes of e-Waste recycled.
  • 871 solar-operated sites.
  • 628 457 tonnes CO2 emissions (Scope 1, 2, 3), 8% decrease from last year.

# South Africa only

1. Excludes staff expenses of R821 million (2017: R742 million) capitalised against property, plant and equipment. Includes dividends of R44 million (2017: R44 million) relating to the forfeitable share plan which was offset against the forfeitable share plan reserve.