Wrap Text
Condensed interim financial statements for the six months ended 30 September 2016
YeboYethu (RF) Limited
(Incorporated in the Republic of South Africa)
Registration number: 2008/014734/06
Share code: YYLBEE
ISIN: ZAE000218483
Condensed interim financial statements for the six months ended 30 September 2016
21 November 2016
Overview - understanding the performance of your investment
YeboYethu (RF) Limited ('YeboYethu') was established as part of Vodacom (Pty) Limited's (Vodacom SA) Broad-based Black Economic Empowerment ('BBBEE') transaction
in October 2008 for the sole purpose of acquiring a 3.44% interest in Vodacom SA. Since inception more than 100 000 Black investors have held a stake in Vodacom SA
through YeboYethu. The financial success of YeboYethu is therefore fundamentally linked to the performance of Vodacom SA.
Vodacom SA is a leading mobile communications company providing a wide range of communication services, including voice, messaging, data and converged services
to over 35 million customers in South Africa.
This announcement reviews the material issues facing Vodacom SA and its performance for the six months ended 30 September 2016. It also explains the performance
of YeboYethu and provides important information relating to the affairs of YeboYethu. Shareholders are advised to visit the YeboYethu website for important additional
information.
Internet address: www.yeboyethu.co.za
Email us at: support@yeboyethushares.co.za
Call centre: 010 285 0090 (standard call rates apply) or 082 241 0001 (Toll-free from your Vodacom cellphone)
Vodacom SA
Service revenue grew 5.6% to R25 463 million aided by strong customer net additions and increased data demand. Revenue grew 3.8% to R31 446 million, impacted by
a 5.2% decrease in equipment revenue as a result of lower sales volumes as consumer spending remained under pressure and the pricing of devices was impacted by the
weaker performance of the rand against foreign currency.
Active customers grew strongly, reaching 35.7 million, with 1.5 million net customer additions in the first half of the year. Vodacom SA's strategy of delivering the best
network and offering value for money continues to both attract and retain customers. Active prepaid customers increased 1.4 million to 30.6 million, as Vodacom SA
attracted value-seeking customers looking to optimise spend. The take up of personalised 'Just 4 You' offers has led to an improvement in Vodacom SA's value
perception with customers. Prepaid voice bundle purchases increased 26.8% to 447 million bundles reducing the pace of voice revenue declines for the past four quarters.
These personalised offers provide affordability for customers and resulted in a 15.4% reduction in the prepaid effective price per minute, as Vodacom SA continues to
make the cost of communication more affordable.
Customers continue to choose Vodacom SA for its superior network and the differentiated customer experience that it delivers through its customer CARE programme.
Vodacom SA added 131 000 contract customers, reduced contract customer churn to 5.1% and increased contract average revenue per user ('ARPU') by 5.4% to R408.
Data revenue grew 19.5% to R9 876 million and comprises 38.8% of service revenue up from 34.3% a year ago. This has been supported by active data customers
increasing 4.1% to 18.2 million and increased data traffic which grew 38.4%. This growth was a result of increased bundles sold, greater data coverage and customers
migrating to 3G and 4G devices. Vodacom SA's 'Just 4 You' offers on data propelled growth in data bundle sales by 47.1% to over 223 million bundles in the period.
Vodacom SA's focus on improving the value offered to customers resulted in a 13.0% reduction in the price per megabyte, and a 61% decline over the last four years.
9.3 million of its data customers are now purchasing data bundles. Active 4G customers on the network increased 88.9% to 3.6 million with the average monthly data
usage on smart devices increasing 14.4% to 629MB. This has resulted in an overall ARPU uplift of 23.7% as customers migrate from 3G to 4G and 17.9% as customers
migrate from 2G to 3G.
Enterprise continues to deliver strong revenue growth, up 8.9%1 and now contributes 24.1% (2016: 22.7%) of service revenue. Growth was supported by new customer
wins in mobile, with mobile customer revenue growing 9.2% to R3 846 million. Vodacom SA has secured South Africa's national and provincial government
department's mobile voice and data communications contract for a period of four years. This award will enable Vodacom SA to partner with government to support
greater innovation. Internet of things (IoT), connections increased 27.7% to 2.6 million. Vodacom SA continues with its strategic partnerships with IBM, SAP HANA and
Microsoft 365 to build on fixed-line, cloud and managed services businesses.
EBITDA growth was strong at 6.1% to R13 013 million supported by good revenue growth and a continued focus on cost efficiencies. The changes Vodacom SA made
through its 'fit for growth' cost savings programme over the past two years has enabled it to achieve 0.9ppts EBITDA margin expansion to 41.4%. Vodacom SA benefitted
from channel efficiencies, commission savings, improved stock management and received a one-off boost from bad debt recoveries. Other cost initiatives included
self-providing more of its mobile backhaul transmission and renegotiation of key contracts with suppliers. These cost saving initiatives have assisted in offsetting higher
network operating costs due to its accelerated capex programme and a trading forex loss of R77 million (2016: R71 million gain).
Capital expenditure of R4 056 million allowed Vodacom SA to substantially widen 3G and 4G data coverage, improve voice quality and increase data speeds. 3G coverage
increased to 99.2% of the population and 4G coverage to 68.7%, up from 46.8% a year ago. Vodacom SA extended high-speed transmission to 89.8% of its sites. Good
progress on fibre deployment by entering into strategic wholesale agreements to sell services through other network providers was made and development of Vodacom
SA's new customer management and billing systems to future proof its operations was completed with 70% of its contract customers migrated to this new platform.
Vodacom SA's customer CARE programme has enabled it to increase its lead to 16 points over the nearest competitor as measured through the Net Promoter Score.
Vodacom SA has substantiated its best network promise with its dropped call compensation guarantee, giving customers free minutes for calls dropped on its network.
Vodacom SA has further enhanced its MyVodacom App, enabling customers to purchase personalised 'Just 4 You' bundles in the app and have made its 24/7 call centre
support available free of charge while roaming.
YeboYethu - numbers explained
The condensed interim financial statements have been prepared in accordance with the framework concepts, the recognition and measurement criteria of IFRS and in
accordance with and containing the information required by IAS 34 as issued by the IASB, the Financial Reporting Guides as issued by the SAICA Accounting Practices
Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings Requirements and the requirements of the Companies
Act of 2008, as amended. The results have been presented together with the results for the six months ended 30 September 2015 and year ended 31 March 2016.
1. Growth excluding the impact from the acquisition of Autopage in the prior year and X-Link.
An explanation of the significant items contained in the YeboYethu condensed statement of comprehensive income for the period is provided below:
- YeboYethu recorded dividends received of R11.9 million in the current period, R10.9 million in the
prior period and R18.7 million for the financial year ended 31 March 2016.
- During the six months ended 30 September 2016, YeboYethu incurred expenses of R2.5 million, an
increase of 103.4% from R1.3 million in the prior period. The expenses incurred are mainly
attributable to the printing and postage of the annual report the cost of hosting the special general
meeting and transfer secretary costs. The costs of the JSE listing were borne by Vodacom SA.
- YeboYethu recorded a gain of R10.6 million in the current period on the valuation of the financial
asset compared to the gain of R57.7 million in the prior period ended 30 September 2015. The
financial asset is the YeboYethu call option that allows Vodacom SA to purchase a number of
Vodacom SA 'A' ordinary shares from YeboYethu at the end of the facilitation period (October 2018).
This is required so that YeboYethu can settle any outstanding balance on the "notional loan"
provided to YeboYethu at this time. It is important to consider that Vodacom SA's BBBEE transaction
is a long-term investment, which, through the substantial financing provided by Vodacom SA, has
lowered the exposure for individual investors. Shareholders will appreciate that certainty cannot be
claimed in a volatile environment.
YeboYethu hosted its eight annual general meeting ('AGM') on 14 October 2016, where shareholders approved the annual financial statements for the year ended 31
March 2016, voted on the election of directors, appointed PricewaterhouseCoopers Inc. as auditors and appointed the members of the audit committee. Prior to the
AGM, shareholders were provided with a presentation on how to register and trade their shares on the Johannesburg Stock Exchange. The results of the AGM are
available on www.yeboyethu.co.za
Dividends
Dividends are declared and paid annually as per the dividend policy. The final dividend of R16.0 million for the 2016 financial year was declared on 5 May 2016 and paid
on 31 May 2016.
YeboYethu Share trading
Shareholders are advised that no registration or verification will take place via Vodacom or the Post Office. Our dedicated call centre, Velocity and Link walk-in centre and
Yebo Yethu website are the only channels through which shareholders and potential investors can register, verify and access detailed information.
Shareholders may contact Velocity through its call centre: 010 285 0090 (standard call rates apply) or 082 241 0001 (Toll-free from your Vodacom cellphone), by email:
(support@yeboyethushares.co.za) or at the walk-in centre. Velocity Trade Financial Services (Proprietary) Limited, 200 on Main, 1st floor, Main Road, Claremont, Cape
Town 7708. Link Market Services South Africa (Proprietary) Limited, 13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein 2001.
Condensed statement of comprehensive income
Six months ended Year ended
30 September 31 March
2016 2015 2016
R000 Notes Reviewed Reviewed Audited
Income 11 932 10 950 18 700
Expenditure (2 548) (1 253) (3 463)
Operating profit 9 384 9 697 15 237
Finance income 437 463 981
Finance cost (*) (*) (*)
Gains on remeasurement of financial instrument 3 10 596 57 710 194 495
Profit before tax 20 417 67 870 210 713
Taxation (4 747) (10 891) (71 141)
Net profit 15 670 56 979 139 572
Total comprehensive income 15 670 56 979 139 572
(*) Less than R500.
Cents Cents Cents
Basic earnings per share 2 108,9 395,8 969,6
Diluted earnings per share 2 79,7 297,1 713,3
Condensed statement of financial position
As at As at
30 September 31 March
2016 2015 2016
R000 Notes Reviewed Reviewed Audited
Non-current assets 1 292 616 1 145 235 1 282 020
Financial assets 3 1 292 616 1 145 235 1 282 020
Current assets 18 632 19 638 22 717
Accounts receivable 14 296 3 839 17 714
Tax receivable - 3 -
Restricted cash 9 276 2 711 1 227
Cash and cash equivalents 9 4 060 13 085 3 776
Total assets 1 311 248 1 164 873 1 304 737
Equity and liabilities
Share capital * * *
Ordinary share premium 359 883 359 883 359 883
Retained earnings 734 155 650 905 733 498
Total equity 1 094 038 1 010 788 1 093 381
Non-current liability 208 927 146 448 206 553
Deferred tax 208 927 146 448 206 553
Current liabilities 8 283 7 637 4 803
Accounts payable 4 2 572 2 957 1 690
Tax payable 2 233 - 3
Bank overdraft 19 - -
Dividends payable 9 3 459 4 680 3 110
Total equity and liabilities 1 311 248 1 164 873 1 304 737
(*) Less than R500.
Condensed statement of changes in equity
Share
capital
and
ordinary
share Retained Total
R000 premium earnings equity
Balance at 1 April 2016 359 883 733 498 1 093 381
Net profit - 15 670 15 670
Net dividends - (15 013) (15 013)
Balance at 30 September 2016-Reviewed 359 883 734 155 1 094 038
Balance at 1 April 2015 359 883 607 746 967 629
Net profit - 56 979 56 979
Net dividends - (13 820) (13 820)
Balance at 30 September 2015-Reviewed 359 883 650 905 1 010 788
Balance at 1 April 2015 359 883 607 746 967 629
Net profit - 139 572 139 572
Net dividends - (13 820) (13 820)
Balance at 31 March 2016-Audited 359 883 733 498 1 093 381
Condensed statement of cash flows
Six months ended Year ended
30 September 31 March
2016 2015 2016
R000 Reviewed Reviewed Audited
Cash flow from operating activities
Cash generated from operations 9 313 9 785 15 513
Tax paid (143) (133) (271)
Dividends paid (14 664) (11 664) (13 235)
Net cash flows (utilised in)/generated from operating activities (5 494) (2 012) 2 007
Cash flows from investing activities
Finance income received 437 463 981
Net cash flows generated from investing activities 437 463 981
Cash flows from financing activities
Finance cost paid (*) (*) (*)
Intergroup overnight deposit movement 5 322 11 487 (2 359)
Net cash flows generated from/(utilised in) financing activities 5 322 11 487 (2 359)
Net movement in cash and cash equivalents 265 9 938 629
Cash and cash equivalents at the beginning of the period/year 3 776 3 147 3 147
Cash and cash equivalents at the end of the period/year 4 041 13 085 3 776
(*) Less than R500.
Notes to the condensed interim financial statements
1. Basis of preparation
The condensed interim financial statements have been prepared in accordance with the framework concepts,
the recognition and measurement criteria of IFRS and in accordance with and containing the information
required by IAS 34 as issued by the IASB, the Financial Reporting Guides as issued by the SAICA Accounting
Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the
JSE Listings Requirements and the requirements of the Companies Act of 2008, as amended. They have
been prepared on the historical cost basis, except for certain financial instruments which are measured at fair
value or at amortised cost, and are presented in South African rand, which is the company's functional and
presentation currency.
The significant accounting policies, judgements, estimates of amounts and methods of computation are
consistent in all material respects with those applied in the annual financial statements for the year ended
31 March 2016. The significant accounting policies are available for inspection at the company's registered
office.
The company adopted the new, revised or amended accounting pronouncements as issued by the IASB,
which were effective and applicable to the company from 1 April 2016, none of which had any material
impact on the company's financial results for the year.
Full details on changes in accounting policies will be disclosed in the company's annual financial statements
for the year ending 31 March 2017.
Six months ended Year ended
30 September 31 March
2016 2015 2016
Cents Reviewed Reviewed Audited
2. Earnings and dividends per share
Basic earnings per share 108,9 395,8 969,6
Diluted earnings per share 79,7 297,1 713,3
Headline earnings per share 108,9 395,8 969,6
Diluted headline earnings per share 79,7 297,1 713,3
Dividends per share - - 111,0
Earnings per share calculations are based on earnings and the weighted average number of ordinary shares
outstanding as set out below:
Six months ended Year ended
30 September 31 March
2016 2015 2016
R000 Reviewed Reviewed Audited
2.1 Earnings reconciliation
Earnings, attributable to equity shareholders, for basic and diluted
earnings per share 15 670 56 979 139 572
Headline earnings for headline and diluted headline earnings per
share 15 670 56 979 139 572
This disclosure is a requirement of the JSE Limited and is not a recognised measure under IFRS. It has been
calculated in accordance with Circular 2/2015 as issued by SAICA.
Six months ended Year ended
30 September 31 March
2016 2015 2016
2.2 Reconciliation of weighted average number of ordinary shares
outstanding
For basic and headline earnings per share 14 395 300 14 395 300 14 395 300
'N' ordinary shares convertible into ordinary shares 5 260 403 4 782 399 5 172 801
For diluted earnings and diluted headline earnings per share 19 655 703 19 177 699 19 568 101
On the YeboYethu Employee Participation Trust's conversion date, 30 September 2018, each 'N' share shall
automatically convert into one ordinary share with a simultaneous repurchase of a variable number of shares
at par value. The variable number of shares will be calculated based on a specified formula which takes into
account the outstanding balance of the notional loan and the underlying value of the shares held in
Vodacom SA. The formula ensures that the YeboYethu Employee Participation Trust will, after Vodacom SA's
repurchase of a portion of the Vodacom SA shares held by the company and the consequent repurchase by
the company of a portion of the company's shares held by the YeboYethu Employee Participation Trust, hold
that percentage shareholding in the company as is equal to the YeboYethu Employee Participation Trust 'A'
shares held by the company, as a percentage of all Vodacom SA shares held by it.
3. Financial assets
The company acquired a 3.44% investment in Vodacom SA during the 2009 financial year by obtaining
ordinary shares and 'A' ordinary shares for the benefit of its shareholders as part of the BBBEE transaction as
follows:
As at As at
30 September 31 March
2016 2015 2016
R000 Reviewed Reviewed Audited
Financial asset at fair value through profit or loss
Vodacom South Africa option asset
7 200 000 ordinary shares at R25,00 each 180 000 180 000 180 000
82 800 000 'A' ordinary shares at R2,1739 each 180 000 180 000 180 000
75 000 000 'A' ordinary shares at R0,00001 each 1 1 1
360 001 360 001 360 001
Accumulated fair value adjustment 932 615 785 234 922 019
1 292 616 1 145 235 1 282 020
Reconciliation
Opening balance 1 282 020 1 087 525 1 087 525
Fair value adjustment 10 596 57 710 194 495
Closing balance 1 292 616 1 145 235 1 282 020
A Monte Carlo methodology was adopted to value the option asset. The Monte Carlo simulation allows for
the option model to consider the dependencies which exist among the company value, the dividends paid,
the notional funding value and the remitted value. The information on the valuation is available for inspection
at the company's registered office.
Within the Monte Carlo method, the following input parameters were used to simulate the Vodacom SA
option asset value: the equity value of the underlying share at the valuation date, the expected dividend yield
of the underlying share over the life of the option, the expected volatility of the underlying share over the life
of the option, and the risk-free interest rate over the life of the model. In addition to these, the strike price is
based on the simulated closing balance of the notional funding at maturity date.
The fair value of R1 292 million (30 September 2015: R1 148 million, 31 March 2016: R1 282 million) was
calculated using the following assumptions as at 30 September 2016:
- The risk-free interest rates were determined from the South African interest rate swap zero curve, which is
based on inputs from money-market and interest rate swap rates on the valuation date;
- The dividend yield was based on Vodacom SA's forecasted earnings and dividend policy based on a range
from 31 March 2017 of 3.22% to 30 September 2018 of 5.64% (30 September 2015: 31 March 2016 of
3.12% to 30 September 2018 of 5.45%, 31 March 2016: 30 May 2016 of 1.29% to 30 September 2018
of 5.71%);
- Maturity date - 30 September 2018;
- Volatility was calculated by applying the equally weighted methodology to the historical share price data of
Vodacom Group Limited. The Vodacom Group Limited volatility was applied as a proxy for Vodacom SA,
calculated at a two years equally weighted volatility of 20.65% as at 30 September 2016, three years
equally weighted volatility of 23.63% as at 30 September 2015 and two and a half years equally weighted
volatility of 22.69% as at 31 March 2016, respectively.
- Strike price - the notional funding as at valuation date provided by Vodacom SA amounted to R4 848
million (30 September 2015: R5 157 million, 31 March 2016: R5 082 million). Interest accrues at a notional
rate of 8.0% NACD (30 September 2015: 8% NACD, 31 March 2016: 8.0% NACD). The simulated notional
funding balances at maturity represents the strike price; and
- The equity value of Vodacom SA was estimated at R120 013 million by applying the results of the five year
Long Range Plan (LRP) forecast as the inputs into the Adjusted Present Value methodology. The terminal
year free cash flow value is based on the final year of the LRP, capitalised into perpetuity. The cash flow
projections are based on the five year LRP approved by the board.
- Key cash flow assumptions included market share, revenue per user, EBITDA margin and revenue growth.
- Key equity value assumptions include the perpetual growth rate of 2.68% (30 September 2015: 3.59%, 31
March 2016: 2.93%), the pre-tax cost of debt of 9.39% (30 September 2015: 7.66%, 31 March 2016: 8.73%)
and cost of equity of 13.25% (30 September 2015: 12.37%, 31 March 2016: 13.59%). The discount rate
used in the valuation model includes a risk free rate of 8.85% (30 September 2015: 7.97%, 31 March 2016:
9.19%), market risk premium of 5.50% (30 September 2015: 5.50%, 31 March 2016: 5.50%), lack of control
discount of 10.00% (30 September 2015: 10.00%, 31 March 2016: 10.00%) and marketability discount of
5.00% (30 September 2015: 5.00%, 31 March 2016: 5.00%), respectively.
Our calculations indicate that the acceptable range of equity values for Vodacom SA, would be a range of up
to 10.0% higher or lower than the equity value used in the determination of the option value. The following
table shows the sensitivity of the fair value of the option asset to this reasonable alternative range of
assumptions as at 30 September 2016, 30 September 2015 and 31 March 2016, respectively:
Favourable Unfavourable
change change
30 September 2016
Total change from base (Rm) 376 (350.5)
Total change from base (%) 29,1% (27.1%)
30 September 2015
Total change from base (Rm) 307,2 (322.5)
Total change from base (%) 26,8% (28.2%)
31 March 2016
Total change from base (Rm) 363,2 (337.9)
Total change from base (%) 28,3% (26.4%)
It is therefore important that shareholders and other users of these financial statements understand the
sensitivity of the option value actually recorded to changes in any or all of the assumptions used in
determining the option value.
Notional funding
The notional funding does not give rise to a legal obligation but only facilitates the share repurchase
mechanism. Initially, the notional funding carried an interest rate of 9.8% compounded daily. The interest rate
was however reduced to 8.0% compounded daily from 1 April 2015 onwards. The company received a
notional dividend on these shares calculated on the basis of the actual dividend paid to ordinary
shareholders. The holders of ordinary shares are entitled to dividends but the holders of 'A' ordinary shares
will only be entitled to dividends once the notional funding has been settled.
The closing balance as at 30 September 2016 of the notional funding after the interest and dividends for the
employee scheme and black public and business partners is as follows:
As at As at
30 September 31 March
2016 2015 2016
R000 Reviewed Reviewed Audited
Reconciliation of notional funding
Opening balance 3 005 118 3 139 587 3 139 587
Notional interest accrued 121 472 126 892 251 313
3 126 590 3 266 479 3 390 900
Less: notional dividend received (246 142) (225 908) (385 782)
Closing balance 2 880 448 3 040 571 3 005 118
4. Accounts payable
Supplier accounts payable 2 296 246 463
Exchange/over-the-counter trading account 276 2 711 1 227
2 572 2 957 1 690
The average credit period is 30 days (six months period ended 30 September 2015: 30 days, year ended 31
March 2016: 30 days). No interest is charged on trade payables.
5. Related parties
All transactions with related parties have been made on terms equivalent to those that prevail in arm's length
transactions. The company does not pay remuneration to directors (Refer Note 8).
As at As at
30 September 31 March
2016 2015 2016
R000 Reviewed Reviewed Audited
5.1 Balances with related parties
Accounts receivable
Vodacom Group Limited 12 343 3 819 17 665
5.2 Transactions with related parties
Vodacom Group Limited
Finance income received 289 310 981
Vodacom Proprietary Limited
Dividends received 11 932 10 950 18 700
The Innovator Trust (entity within the Vodacom Group structure)
Dividends paid (1 183) (606) (606)
6. Carrying amounts of financial instruments
Carrying amounts of financial instruments analysed by category are as follows:
As at As at
30 September 31 March
2016 2015 2016
R000 Reviewed Reviewed Audited
Assets
Financial assets at fair value through profit or loss 1 292 616 1 145 235 1 282 020
Available-for-sale financial asset * * *
Loans and receivables 18 337 16 905 21 441
1 310 953 1 162 140 1 303 461
Liabilities
Financial liabilities measured at amortised cost 5 774 4 926 3 573
(*) Less than R500.
7. Fair value hierarchy
An analysis of the financial instrument, Vodacom SA option asset, measured at fair value and disclosed as
level three based on the degree to which the fair value is observable, is as follows:
As at As at
30 September 31 March
2016 2015 2016
R000 Reviewed Reviewed Audited
Level three
Financial assets at fair value through profit or loss, classified as
held for trading
Vodacom SA option asset (Refer Note 3) 1 292 616 1 145 235 1 282 020
Level three uses data inputs for the valuation of the asset that are
not based on observable market data.
Reconciliation of fair value
Measurement in level three
Opening balance 1 282 020 1 087 525 1 087 525
Recognised in net gains on remeasurement and disposal of
financial instruments 10 596 57 710 194 495
Closing balance 1 292 616 1 145 235 1 282 020
8. Services in-kind
The board cannot reliably determine a fair value for services received in-kind that consist primarily of
participation by board members in the business of the company, and as a result does not recognise the value
of these services received in income.
9. Prior period reclassification
In March 2016, the following reclassifications were made pertaining to the prior period:
- The unclaimed dividends payable to shareholders previously disclosed on a net basis in cash and cash
equivalents were reclassified to disclose the gross cash and related dividends payable on the statement of
financial position;
- The restricted cash which belongs to shareholders or potential shareholders trading on the over-the-
counter trading facility was removed from the cash and cash equivalents balance and presented separately
on the statement of financial position with a resultant impact on the statement of cash flows.
Before After
reclassification reclassification Reclassification
As at 30 September 2015
Statement of financial position
Cash and cash equivalents 11 116 13 085 (1 969)
Restricted cash - 2 711 (2 711)
Dividends payable - 4 680 (4 680)
Statement of cash flows
Cash generated from operations 9 974 9 785 189
Dividends paid (13 820) (11 664) (2 156)
Cash and cash equivalents at the beginning of the
period 3 145 3 147 (2)
Cash and cash equivalents at the end of the period 11 116 13 085 (1 969)
10. Events after the reporting period
The directors are not aware of any matter or circumstance arising since the end of the reporting period, not
otherwise dealt with in the condensed interim financial statements, which significantly affected the financial
position of the company as at 30 September 2016 and the results of its operations and cash flows for the six
months ended 30 September 2016.
Midrand
18 November 2016
Non-IFRS information
These condensed consolidated interim financial statements have been reviewed by PricewaterhouseCoopers Inc.,
who expressed an unmodified review conclusion. A copy of the auditor's review report is available for inspection at
the Company's registered office, together with the financial statements identified in the auditor's report. The auditor's
report does not necessarily cover all of the information contained in this announcement. Shareholders are therefore
advised that in order to obtain a full understanding of the nature of the auditor's work they should obtain a copy of
that report together with the accompanying financial information from the registered office of the company.
Forward-looking statements
This announcement which sets out the interim results for YeboYethu (RF) Limited for the six months ended
30 September 2016 may contain 'forward-looking statements', with respect to the Vodacom SA results referenced in the
announcement which have not been reviewed or reported on by the company's auditors. 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'. 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 will occur in the future, involve known and unknown risks, uncertainties
and other facts or factors which may cause the actual results, performance or achievements of the company, or its
industry to be materially different from any results, performance or achievement expressed or implied by such
forward-looking statements. Forward-looking statements are not guarantees of future performance and are based on
assumptions regarding the company's and Vodacom SA's present and future business strategies and the environments in
which they operate now and in the future.
REGISTERED OFFICE:
Vodacom Corporate Park
082 Vodacom Boulevard, Midrand 1685
TRANSFER SECRETARIES:
Note: Link Market Services was appointed as transfer secretaries of YeboYethu with effect from 18 July 2016.
Physical Address:
Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein 2001
Postal Address:
PO Box 4844, Johannesburg, 2000
DIRECTORS:
Zarina Bassa (Chairman)
Adele Hall
Vuyani Jarana
Seth Radebe
Christopher Tlhabeli (TC) Ralebitso
SECRETARY:
Avinash Dhanasir
JSE SPONSOR:
UBS
www.yeboyethu.co.za
Date: 21/11/2016 04:26:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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