1. 1 Economic Transformation Portfolio Committee for Small Business Development 31 August 2016

2. Vodacom Group Vodacom Group is one of the Africa’s leading telecommunications companies providing a wide range of services. We are owned by: Vodafone Group - 65% SA Governement - 13.91% Black Owned – 21.09% Listed company on the Johannesburg Stock Exchange In business since 1994 Market Cap: R228.15bn (approx. USD 14,1bn as at 25 Feb 2016)* Revenue: R77.3bn (approx. USD 4.7bn) Customers: 65.1 million (as at 30 September 2015) Vodafone Group One of the world's largest telecommunications companies Listed on the London Stock Exchange Vodafone has 438 million customers from mobile operations in 26 countries, partners with mobile networks in 55 more, and fixed broadband operations in 17 markets Company employs approximately 90,000 people across all its markets * 1 USD = 16.1637 ZAR

3. Our growth history LTE 199319951996 Awarded a licence to operate a GSM cellular network in South Africa Vodacom launched in Lesotho First to launch prepaid services in the world on IN platforms Vodacom opens the world’s 1st cellular shopping mall Vodacom launched in Tanzania Vodacom launched in DRC Vodacom launched in Mozambique Vodacom launches a state of the art 3G HSDPA network in Africa Vodacom Business launched Vodacom listed on the JSE (18 May) Vodacom rebrand from “green and blue” to Red Vodacom was the first operator to launch LTE (or 4G) services in South Africa Vodacom launched the Red Plans and One Net New Data Centre launched 1998 199920022003 2006 2008 20092011201220132014 Acceleration/ launch of Enterprise Mobility 2015

4. Our social model is driving sustainable change… …and contribute to government’s long term social goals Education ICT centres Schools and E-School portal E-Libraries Bursaries Innovator Trust SME development Women focus ICT sector Youth Graduates Internships Learnerships Procurement SMME R1.39bn BEE Skills Development Gender diversity R180m Social Business Model Health Stock visibility solution Integrated school health programme Foundation Connect for Good

5. Annual results | 31 March 2016 Vodacom BEE status – FY15/16 Level 2 contributor Scoring ElementTargetFY15 Score FY16 Score Ownership2012.1219.79 Management/ Control 10 + 1 bonus 11.00 Employment Equity 106.676.96 Skills Development 1712.3014.07 Procurement20 + 6 bonus 22.5323.43 Enterprise Development 1111.00 Socio-Economic Development 1212.00 TOTAL SCORE10087.62 98.25 BBBEE STATUS22 5 weighted spend on BEE-status suppliers to >51% black- owned suppliers to >30% black women-owned suppliers spent on developing 100% black owned SMME ICT businesses spent on skills development of black employees spent on uplifting communities R7.2bn R26bn R5bn R841m R218m R112m 5

6. 6 Providing business skills training specifically to growing ICT SMME’s Enterprise Development Creating products to assist SMME business Expanding opportunities in retail Enterprise and Commercial Business Focus on increasing procurement opportunities for EME/QSE with specific focus on black owned and black female owned suppliers Supply Chain Management Our SMME programmes aim to…….

7. Empowering a nation through co-ops Vodacom partnered with international promotional merchandise company Mace Promotions in 2014 to establish a local source of manufacture and supply of textile merchandising related articles. We have helped to set up and fund three sewing co-operatives in Ekurhuleni, Gauteng, to manufacture Vodacom-branded apparel for Vodacom South Africa. Our co-operative incubator scheme seeks to create between 80 and 90 sustainable jobs for people currently dependent on social grants. In doing so we are promoting social upliftment through employment creation and alleviating dependency on social grants through the provision of monthly incomes. We also assist SMME’s in meeting our minimum criteria e.g. Health & Safety compliance, technical skills development and vetting etc. All the co-operative members live in townships and typically started with basic sewing skills and limited business experience. Through the partnership, the members have been trained and now have business relations with Mace that keep members gainfully employed. SMME Skills Capacity  53 black-owned SMME’s operating in ICT sector currently on business skills capacity programmes  Geographical spread of 5 provinces - Gauteng, KZN, North West, Western Cape and Eastern Cape  Gender profile of SMME’s = 33% female owned and 67% male owned  42% of businesses owned by youth  Specialised training programme for black women owned SMME’s with GIBS

8. C4 - Vodacom Secret 8 Franchisee Ownership Profile

9. C4 - Vodacom Secret 9 DEFINITIONREQUIREMENT PURCHASING OF A NEW STORE 100% Black Ownership (Preferred 31% Female) SELLING OF AN EXISTING STORE 51% Black Ownership EMERGING MARKET STORES100% Black Ownership BEE TRANSFORMATION PROJECT PLAN (In Progress) 100% Black Ownership (Preferred 31% Female) Selection Criteria : Awarding Stores

10. Demonstrating Vodacom’s commitment through SCM…….

11. 11 We exceeded our score targets, achieving a beyond stretch score of 23.43 points as a result of our continued focus on improving the transformation of our suppliers and consequent expenditure on BEE-status suppliers. Total recognised and measured procurement spend of R26.2 billion was R10 billion greater than the target, exceeding the required 70% spend with BEE-status suppliers by 41%. Expenditure with exempt micro enterprises and qualifying small enterprises increased slightly to R2.9 billion (2015: R2.6 billion) as a result of consolidation efforts to ensure cost efficiency. Our spend with suppliers with more than 51% black ownership increased from R4.0 billion to R7.2 billion, exceeding the required target by 233%. Expenditure with suppliers that are more than 30% black women-owned increased from R1.5 billion to R5 billion, exceeding the target of R1.8 billion by 320%. In addition, we were once again awarded three bonus points for 15 calendar-day payment terms to qualifying black-owned small, medium and micro enterprise (SMME) suppliers. These fast payments amounted to R284 million paid within five days or less, representing R110 million more than in the previous year. Preferential Procurement

12. 12 This year, Vodacom was rated as the most empowered company in the ICT sector and the most empowered multi-billion rand company in South Africa. For the third consecutive year we retained our Level 2 Black Economic Empowerment (BEE) contributor status, achieving a score of 98.25 points. This achievement reflects our commitment to implementing meaningful and sustainable transformation for our employees, the people of South Africa and the economy as a whole. Our requirement has minimum level status, however, a key part of our strategy is to ensure that the companies we deal with also have significant black ownership and black woman ownership. Through our initiatives to leverage Vodafone global purchasing power we have ensured that our multinational suppliers have established a South African presence and employed a local workforce. In this process we have ensured that these multinationals invest in BEE strategies that are aligned with Vodacom’s transformation objectives. In the majority cases we have helped to increase the number of black women who have benefited from economic shareholding in these entities. Vodacom has been influencing the ownership restructuring of our key suppliers and increasing our spend with black-owned and black women-owned entities. Vodacom has category-specific sourcing strategies that target specific BEE requirements. The impact of these strategies is evidenced in Vodacom’s excellent scoring in the preferential procurement element of the scorecard. Conclusio n

13. Thank you