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VODACOM GROUP LIMITED - Annual results for the year ended 31 March 2018

Release Date: 14/05/2018 07:05
Code(s): VOD     PDF:  
Wrap Text
Annual results for the year ended 31 March 2018

Vodacom Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1993/005461/06
(ISIN: ZAE000132577 Share code: VOD)
(ISIN: US92858D2009 ADR code: VDMCY)
(Vodacom)

Vodacom Group Limited annual results for the year ended 31 March 2018

14 May 2018

Highlights

Group revenue grew strongly at 6.3% to R86.4 billion; normalised growth, excluding currency translation effects, was 7.8%*.
Group service revenue grew 3.4% to R70.6 billion; normalised growth, excluding currency translation effects, was 5.1%*.
We added 7.0 million customers during the year, 4.5 million in South Africa, 2.5 million in our International operations.
Safaricom added 1.4 million customers. In combination, we now reach over 103 million customers across the Group.
South Africa revenue growth accelerated to 8.1% boosted by strong device sales. Service revenue increased 4.9% to R54.6 billion.
International operations continue to improve with normalised service revenue growth of 7.4%* or 0.3% on a reported basis.
Group EBIT improved 4.4% (2.8%*) to R23.1 billion, with good improvement in our International operations.
Significant investment of R11.6 billion used to expand our coverage and improve quality in our networks; R8.9 billion in South Africa alone.
Safaricom contributed R1.5 billion profit for the eight months since acquisition, after deducting the amortisation of fair valued assets and before minority interest.
Net profit increased 18.6%, boosted by the Safaricom acquisition and by the profit from the sale of Helios Towers Tanzania Limited.
Headline earnings per share remained constant at 923 cents per share, impacted by shares issued to acquire the Safaricom stake.
Final dividend per share of 425 cents

                                                                                 Year ended 31 March                Year-on-year % change

Rm                                                                              2018              2017           Reported        Normalised*

Revenue                                                                       86 370            81 278                6.3               7.8
Service revenue                                                               70 632            68 286                3.4               5.1
EBITDA                                                                        32 898            31 238                5.3
EBIT                                                                          23 109            22 126                4.4               2.8
Net profit from associate and joint venture^                                   1 507                 1                  -
Operating profit                                                              24 252            21 750               11.5               3.0
Net profit                                                                    15 562            13 126               18.6
Capital expenditure                                                           11 594            11 292                2.7
Operating free cash flow                                                      21 117            19 555                8.0
Free cash flow                                                                14 195            11 403               24.5
Headline earnings per share (cents)                                              923               923                  -
Total dividend per share (cents)(1)                                              815               830               (1.8)

Notes:
Certain financial information presented in these annual results constitute pro-forma financial information to the extent that it is not extracted from the segment disclosure included
in the audited financial statements for the year ended 31 March 2018. The applicable criteria on the basis of which this pro-forma financial information has been prepared is set out
in the supplementary information on pages 36 - 39.
All growth rates quoted are year-on-year growth rates and refer to the year ended 31 March 2018 compared to the year ended 31 March 2017, unless stated otherwise.
* Amounts marked with an * in this document, represent normalised growth which presents performance on a comparable basis. This excludes merger and acquisition activity and
  adjusting for trading foreign exchange and foreign currency fluctuation on a constant currency basis (using the current year as base).
^ Amounts marked with a ^ in this document relate to the following, on 7 August 2017, the Group acquired an effective interest of 34.94% in Safaricom Limited which is
  accounted for as an investment in associate. Net profit from associate and joint venture includes attributable profits, after deducting amortisation of fair valued assets.
(1.) Declared.

Vodacom Group CEO commented:
SHAMEEL JOOSUB

Our sustained investment in customer and network experience across our operations was a major factor in attracting the additional 4.5 million customers in South Africa 
and 2.5 million internationally. Safaricom added 1.4 million customers to push the combined total to over 103 million customers. Securing an outright Net Promoter Score (NPS) 
lead over competitors in all our operations is another key milestone attained this year.

Despite a tougher economic environment in South Africa, 'Big Data' led innovations contributed to robust demand for personalised bundles and a 4.9% growth in service revenue.
Strong device sales, cost optimisation measures and the effective execution of our pricing transformation programme also played a major role in the sound commercial
performance in our largest market.

This was a solid achievement given the revenue impact from reducing out-of-bundle data prices by as much as 50% in October last year as well as the early phase investments in
new revenue streams, including fibre, content propositions and financial services. Over the past three years, we have reduced effective voice and data prices by 36.3% and 42.5%
respectively, while maintaining revenue growth. Our accelerated rural coverage programme was instrumental in Vodacom becoming the continent's first operator to reach 80%
population coverage on a 4G network.

In our International operations, it was a particularly pleasing year for Mozambique and Lesotho, while our commercial actions in Tanzania and DRC continue to show good
momentum. This portfolio produced a 7.4%* increase in normalised service revenue on the back of rising customer numbers, strong demand for data and the accelerated uptake of
M-Pesa. Despite a turbulent political context, Safaricom delivered net profit growth of 14.1% for the year. This was underpinned by strong growth in data and M-Pesa revenues and a
5.1% increase in customers to 29.6 million. Safaricom contributed R1.5 billion profit for the eight months since acquisition, after deducting the amortisation of fair valued assets
and before minority interest.

Revenue from mobile money has become a significant contributor to the Group. The combined customer base, including Safaricom, grew 11.5% in the past year and now exceeds
32.3 million. During this period, the M-Pesa platform in our International operations, processed transactions worth USD1.9 billion, generating a 19.6% increase in M-Pesa revenue to
R2.3 billion. In addition, Safaricom showed impressive results processing USD6.5 billion worth of transactions for the year and grew M-Pesa revenue by 14.2% to KES63 billion.

Our investment and efforts to drive revenue diversification and digital transformation across the Group are having the desired effect. Changing the way we operate, means we are
well positioned to drive new and exciting growth opportunities as we seek to change people's lives through building a connected society.

Looking ahead, we are encouraged by the renewed economic and political stability in South Africa and larger International operations, including Kenya. Our operations benefit from 
stability in foreign exchange and macro-economic environments and this is expected to bring a greater degree of predictability to the results across our markets.

We are encouraged by these developments and are reaffirming our three year targets(1) of mid-single digit service revenue growth, mid-to-high single digit EBIT growth and capital
intensity of 12% - 14% of Group revenue, to build on this momentum.

(1.) These targets are on average, over the next three years and are on a normalised basis in constant currency, excluding spectrum purchases and any merger and acquisition
     activity. This assumes broadly stable currencies in each of our markets and stable macro and regulatory environments. Excluding effects from IFRS 15 and IFRS 16
     implementation.

Operating review

South Africa

South Africa delivered robust performance, despite ongoing data pricing transformation and a low economic growth environment. Service revenue increased 4.9% to R54.6 billion,
supported by strong customer additions, a higher contribution from data revenue and growth in enterprise services. Revenue grew strongly by 8.1% to R70.0 billion, as a result of
equipment revenue growth of 15.2%, underpinned by smart device sales which constitute 70.0% of total devices sold, in-line with our strategy of driving the uptake of smart
devices.

We continue to see positive outcomes from our segmented acquisition strategy. Our Youth proposition, NXTLVL, has now attracted over 3.3 million new and existing Youth
customers. The expansion of our new Siyakha platform is helping improve the lives of customers, through products such as zero rated career portals, Facebook Flex, free health
information for expectant mothers and prepaid funeral cover. These propositions, supported by personalised value offers through our 'Just 4 You' platform have seen us attracting
4.5 million new customers this year, closing at 41.6 million, up 12.1%. Prepaid customers increased 4.3 million, up 13.4%, supporting the 6.4% prepaid customer revenue growth.
We added 229 000 contract customers. Progress on our pricing transformation strategy has resulted in short-term pressure on contract ARPU, which declined 4.4% to R390. This
was as a result of higher roll over of unused data bundles as we continue to migrate customers to 'more value' contracts, with 43.4% of the base now signed up for these contracts.
ARPU was also impacted by changes in deal structures in the first half of the year, and a reduction of the out-of-bundle data rates in October 2017.

Our industry leading application of Big Data and machine learning, created to deliver personalised bundle offers based on customer behaviour, continues to differentiate us from
our competitors. Through our 'Just 4 You' platform we have accelerated the uptake of bundle offers, driving the sale of 2.3 billion bundles in the year, up 51.3%. Of these, 62.2% of
bundle purchases are made through the platform. Customers using bundles have grown 13.9% to 18.7 million.

Data revenue grew strongly at 12.8% to R23.4 billion, contributing 42.8% of service revenue. This represents strong growth as we transform pricing for customers by reducing
out-of-bundle spend. This was achieved by improving customer data usage notifications, reducing of out-of-bundle rates by as much as 50%, and introducing more value offers on
our contract plans. In the second half, 12% of data revenue was out-of-bundle revenue, down from 22% in the first half last year. Data traffic growth remains robust at 43.7%. This
was enabled through growing our data network coverage and capacity as well as focussing our device strategy on increasing 3G and 4G device uptake. 4G customers on our
network increased 44.8% to 7.3 million, while the average megabyte per smart device increased 18.4% to 784MB. Our bundle strategy continues to resound well with our
customers, who have a choice of buying appropriate bundles based on validity period or size to suit their needs. Data bundle purchases increased 54.7% to 766 million. Improved
in-bundle usage has helped us to reduce the overall effective price per megabyte by 21.6% this year.

Enterprise service revenue grew 10.8% now contributing 25.7% of service revenue. Mobile enterprise customer revenue was flat, as the upgrade cycle on the government tender
awarded to Vodacom in October 2016 progressed well, while new sign ups to compensate for the greater discount were slower than originally anticipated. We expect this trend to
improve in the year ahead. Service revenue growth from fixed services increased 55.6%, driven by the inclusion of wholesale transit revenue (a new low margin business), 
connectivity revenue and cloud and hosting services.

EBITDA grew 4.7% to R28.1 billion and delivered a margin of 40.1%. We have contained inflationary pressures on operating expenses, through cost saving initiatives under our 'Fit
for growth' programme, maintaining total operating expense growth of 2.1%, which is 2.8ppts below service revenue growth. EBITDA margins have however contracted 1.3ppts,
impacted by the roaming agreement with Rain diluting margins by 0.7ppts, as we move cost of capacity to direct expenses from depreciation; the increased contribution from lower
margin handset sales has impacted margin by 0.8ppts. EBIT growth of 2.6% was below EBITDA growth as a result of higher growth in depreciation and amortisation costs, in line with
our capital expenditure guidance to deliver our network leadership position.

Our capital expenditure of R8.9 billion was focused on widening our network coverage, improving network performance to support increased data demand and enhancing overall
customer experience. Significant investment was made in our IT systems with deep machine learning capabilities aimed at providing a seamless and personalised customer
experience, enabling us to deliver on our strategic ambition of being the leading digital telco in South Africa. We have extended our 3G population coverage to 99.4% and 4G
coverage to 80.1%, up from 75.8% a year ago. Vodacom is now the first African operator to extend 4G coverage to more than 80% of its population.

International
Service revenue increased by 0.3%, with strong normalised growth of 7.4%* to R16.8 billion with pleasing growth in our strategic focus areas of data and M-Pesa. Reported numbers
have been impacted by the strengthening of the Rand against each country's currency.

Tanzania continued to execute on its strategy, delivering good revenue and customer growth despite a highly competitive environment. We have continued to invest in enhanced
registration processes and to suspend customers until they update personal registration details, as required by law. Mozambique and Lesotho delivered strong results supported by
good execution in monetising growing demand in data and M-Pesa, while performance in the DRC has improved as the currency and economic environment began stabilising in the
second half of the year. Our focus on improving customer experience by addressing points of detraction has resulted in NPS leadership in all markets, in line with our strategy of
providing the best customer experience.

We added 2.5 million customers for the year, up 8.6% to 32.2 million. This was supported by good customer growth in the DRC, up 13.8%, recovering to levels seen prior to the
disconnections done in 2016 in compliance with customer registration requirements, while Mozambique grew customers by 18.7%.

Data revenue grew strongly by 12.0% (18.7%*). We continue to make excellent progress in meeting the growing demand for data, by expanding our data networks to new areas and
constantly improving the network experience in high demand areas such as major towns and cities. We are actively driving access to more affordable smart devices, especially
Vodacom-branded devices resulting in smartphone adoption rates increasing to 31.9%. Our digital social media partnerships, as well as bundled offers through 'Just 4 You' allowed
us to tailor targeted data propositions to better monetise the data demand, all of which resulted in an increase of 3.6 million data customers, to 16.6 million up 27.5%. Data
monetisation remains a key focus area in all markets as demand grows rapidly.

M-Pesa revenue grew strongly by 19.6% (30.4%*) to R2.3 billion, contributing 13.8% of International service revenue. We added 1.8 million customers1 for the year, reaching 11.8
million. We continuously add new services to the platform expanding consumers' payment options. In Tanzania, we have introduced Lipa-Kwa, our merchant payment solution,
which is showing very strong merchant take up. This platform gives customers the convenience to transact with M-Pesa at more points of sale. The equivalent of over USD160
million was transacted through this system this year. In Mozambique, we have expanded our agent network to more than 20 000 agents, while in DRC and Lesotho we continue to
incentivise customers to increase uptake. On average, USD1.9 billion was processed monthly through the M-Pesa system.

The EBITDA margin improved 2.0ppts, while EBIT increased 27.2% (26.5%*) to R2.1 billion, and EBIT margin expanded by 2.5ppts to 12.0%. We have entrenched a culture of strong
cost containment in all our operations, leveraging from programmes such as 'Fit for growth'. Improved revenue growth, savings on commissions from airtime purchases through
M-Pesa, continued savings in network operating expenses, and improving foreign exchange rates, are key drivers for margin growth.

Capital expenditure of R2.7 billion was focused on improving customer experience on our networks by extending voice and data coverage, improving data network speeds and
investing in Business Intelligence tools to drive growth. We rolled out additional 4G sites in Tanzania and Lesotho and expanded 3G coverage in DRC and Mozambique. As part of our
digital transformation, we continue to invest in enhancing our IT systems to support our personalised pricing offers and to deliver on our segmentation strategy.

(1.) 30-day active M-Pesa customers.

Safaricom
During the year, we concluded our acquisition of a 34.94% indirect stake in Safaricom, the number one mobile operator in Kenya. In the eight months since acquisition, Safaricom
has contributed a profit of R1.5 billion which represents the net amount of earnings from Safaricom of R1.9 billion and an amortisation charge of R383 million in relation to fair
valued assets and before minority interest.

Safaricom finished the year with great momentum, reporting annual service revenue growth of 10.0% to KES225 billion and EBIT growth of 12.6% (18.3% excluding a one-off
adjustment in the prior year relating to KES 3.4 billion excise duty refund) to KES79 billion. Underpinning the results was strong expansion of Safaricom's customer base by 5.1% to
29.6 million customers. Strong growth in both data and M-Pesa revenue continues as data customers increased by 6.2% to 17.7 million customers, and 30-day active M-Pesa
customers increased 8.0% to 20.5 million. M-Pesa revenue grew 14.2% while data revenue grew by 24.0%. M-Pesa revenue contributed 28.0% to service revenue, while data
revenue contributed 16.2% to service revenue. Investment in capital expenditure of KES36.4 billion resulted in 3G sites increasing 18.9% and 4G sites increasing 49.4% year on
year.

These results are available on www.safaricom.co.ke/investor-relation/financials/reports/financial-results.

Regulatory matters

Electronic Communications Amendment Bill (ECA Bill)

The Ministry of Telecommunications and Postal Services (Ministry) published a White Paper, as approved by cabinet, on 2 October 2016. On 17 November 2017, the Department of
Telecommunications and Postal Services (DTPS) gazetted amendments to the Electronic Communications Act as a Bill, the first step to giving effect to the White Paper.
Disappointingly, the amendments did not fully reflect proposals previously submitted by the industry. As part of a public participation process, affected parties submitted
comments on the ECA Bill, to the Ministry on 31 January 2018, and participated in public hearings on 6 and 7 March 2018. Our submissions reiterated our support for a hybrid
model, establishing a competitive wholesale open access network (WOAN) alongside the assignment of spectrum to the current players. On the basis of an independent economic
impact assessment, we also noted the negative impacts the draft legislation could have on investment in the sector, GDP growth and job creation. The Ministry will consider all
submissions before submitting a revised Bill to cabinet for approval to be tabled in Parliament for further consultation and debate.

Amendment to End-user and Subscriber Service Charter Regulations

On 30 April 2018, the Independent Communications Authority of South Africa (ICASA) published final amendments to the End-user and Subscriber Service Charter Regulations,
with the main objective to address consumer concerns with regard to out of bundle charges and expiry rules. The final amendments follow a consultation process between ICASA
and industry stakeholders. The salient points of the new regulations are as follows:

- Bundle depletion notices are to be sent to customers at 50%, 80% and 100% depletion
- Operators are not allowed to default to out-of-bundle charges on depletion of bundles, unless specific opt-in from the customer is obtained
- Operators should allow customers the option to roll over unused data before expiry and also provide customers with an option to transfer data to another customer on the same
  network

The regulation will take effect from 8 June 2018.

ICASA priority market review

In June 2017, ICASA gave notice of its intention to conduct an inquiry to identify priority markets in the Electronic Communications Sector (ECS). The purpose of the enquiry is to
identify relevant wholesale and retail markets or market segments in the ECS that are generally prone to ex ante regulations, and to determine from these markets and market
segments those that the Authority intends to prioritise for market reviews and potential regulation. These studies are in line with similar processes in other markets around the
world. The final phase of the inquiry would be the publication of a findings document, which is expected in the second half of FY2019.

Competition Commission investigation into complaint on the National Treasury government transversal contract for mobile communication services

On 14 March 2016, National Treasury issued a tender for the supply and delivery of mobile communication services to national and provincial government departments for the
period 15 September 2016 to 31 August 2020. Vodacom was selected as the preferred supplier on a non-exclusive basis after the other bidders were eliminated at different phases
of the competitive bidding process. The Competition Commission has initiated an investigation against Vodacom Group for alleged abuse of dominance in terms of section 8 of the
Competition Act. The tender process was initiated and controlled by National Treasury through strict governance procedures, and we are confident that we followed due process in
a fiercely contested and transparent bidding process.

United States Department of Commerce's denial order against ZTE

Following the denial order issued by the US Department of Commerce against ZTE, the Group is in the process of assessing the impact on its networks and implementing the
required contingency plans.

Outlook

Looking ahead, our strategy to become a leading digital company and empower a connected society remains a key focus. We anticipate that our investments in Big Data, digital
services platforms and sophisticated machine learning will increasingly allow us to provide customers with relevant propositions based on customers' needs. Our adoption and
application of this technology puts us at the forefront of global developments and remains a key differentiator to our competitors. In turn, this should continue to drive revenue and
customer growth across all markets.

We are encouraged by the renewed economic and political stability in South Africa and larger International operations, including Kenya. Stability in foreign exchange and
macroeconomic environments benefits our operations and is expected to support more predictable results across our operations. However, unexpected volatility in political
environment, economic growth, currency and regulatory uncertainty continue to pose a risk.

In South Africa, we will continue to manage the process for pricing transformation in data. The priority is to manage out-of-bundle exposure in accordance with ICASA's recently
published End-user and Subscriber Service Charter regulation, effectively improving the cost to communicate for customers. We will manage this change through increased
elasticity, driven by our content platforms, digital social media partnerships and increased penetration of data-capable devices.

Transforming our revenue into new verticals, such as content, fibre, financial services and digital services, will also be a focal point. These services are complimentary to traditional
revenue streams such as voice, messaging and data, but also to further leverage our strong brand, reach and reputation in the countries where we operate.

In our International operations, we continue to focus on data monetisation and growing financial services, through M-Pesa. The opportunity for growth in both these revenues
streams is significant, while we introduce new services across our markets. M-Pesa is becoming a key driver of growth for us, with total M-Pesa customers now at 32.3 million
including Safaricom, which makes us the biggest mobile money operator across the continent. M-Pesa now contributes 13.8% to our service revenue in International, and 28.0% to
service revenue in Safaricom. We still see huge potential in getting all countries to the same level of sophistication as Safaricom and further growing M-Pesa capabilities.
Access to spectrum at reasonable market related pricing remains crucial in making communication services more affordable and delivering new technological advances to
customers in the countries where we operate. We are expecting progress in gaining access in South Africa, Mozambique and Tanzania in the year ahead. We will engage
constructively in these processes with regulators and government to ensure a speedy and fair resolution for the industry at large.

We maintain our targets(1) for Group service revenue growth of mid-single digit growth, Group EBIT growth of mid-to-high single digit and capital intensity of 12% - 14% of Group
revenue over the next three years. For completeness, guidance from Safaricom is EBIT of KES85 - KES89 billion and capital expenditure of KES35 - KES38 billion for the year.

(1.) These targets are on average, over the next three years and are on a normalised basis in constant currency, excluding spectrum purchases and any merger and acquisition
     activity. This assumes broadly stable currencies in each of our markets and stable macro and regulatory environments. Excluding effects from IFRS 15 and IFRS 16 implementation.


Financial review

Summary financial information

                                                                               Year ended 31 March                Year-on-year % change

Rm                                                                            2018              2017           Reported       Normalised*

Revenue                                                                     86 370            81 278                6.3              7.8
Service revenue                                                             70 632            68 286                3.4              5.1
EBITDA                                                                      32 898            31 238                5.3
EBIT                                                                        23 109            22 126                4.4              2.8
Net profit from associate and joint venture?                                 1 507                 1                  -
Operating profit                                                            24 252            21 750               11.5              3.0
Net profit                                                                  15 562            13 126               18.6
Capital expenditure                                                         11 594            11 292                2.7
Operating free cash flow                                                    21 117            19 555                8.0
Free cash flow                                                              14 195            11 403               24.5
Net debt                                                                    19 892            22 484              (11.5)
Basic earnings per share (cents)                                               947               915                3.5
Headline earnings per share (cents)                                            923               923                  -

Contribution margin (%)                                                       61.0              62.5            (1.5ppt)
EBITDA margin (%)                                                             38.1              38.4            (0.3ppt)
EBIT margin (%)                                                               26.8              27.2            (0.4ppt)
Operating profit margin (%)                                                   28.1              26.8             1.3ppt
Effective tax rate (%)                                                        29.6              31.7            (2.1ppt)
Net profit margin (%)                                                         18.0              16.1             1.9ppt
Capital intensity (%)                                                         13.4              13.9            (0.5ppt)
Net debt/EBITDA (times)                                                        0.6               0.7         (0.1 times)

Service revenue

                                                                               Year ended 31 March             % change

Rm                                                                            2018              2017              17/18

South Africa                                                                54 622            52 071                4.9
International                                                               16 828            16 775                0.3
Corporate and eliminations                                                    (818)             (560)             (46.1)

Group service revenue                                                       70 632            68 286                3.4

Safaricom(1)                                                                18 999                 -                  -

Group service revenue increased 3.4% (5.1%*) to R70.6 billion, with strong underlying growth in both South Africa and International operations. Revenue growth accelerated to
6.3% (7.8%*) to R86.4 billion supported by a strong demand for high-end smart devices especially in South Africa.

In South Africa, service revenue increased 4.9% benefitting from growth in data revenue, net customer additions of 4.5 million boosting prepaid customer revenue and strong
enterprise revenue growth.

In our International operations, service revenue increased 0.3% (up 7.4%*). Growth came from strategic growth areas such as data and M-Pesa revenue as well as an increase in
customer net additions.
On an annual basis service revenue grew by 10.0% in Safricom, driven by growth in data and M-Pesa revenue.

(1.) Represents eight months of value effective 1 August 2017, at 100% interest. The Safricom interest is equity accounted in net profit from associate and joint venture in the
     income statement. These values are for information purposes.

Total expenses(1)
                                                                               Year ended 31 March             % change

Rm                                                                            2018              2017              17/18

South Africa                                                                41 912            37 945               10.5
International                                                               12 557            12 853               (2.3)
Corporate and eliminations                                                    (937)             (679)             (38.0)

Group total expenses                                                        53 532            50 119                6.8


Group total expenses increased 6.8% to R53.5 billion, which includes a foreign exchange gain of R56 million (2017: foreign exchange loss of R331 million).

In South Africa, we have maintained operating expenditure growth at 2.1% despite inflationary cost pressure. Direct expenses increased 14.6% as a result of higher equipment costs
(+14.0%), including costs related to our roaming agreement with Rain and increase in wholesale transit expenses (a new lower margin business area), excluding which direct
expenses grew by 5.6%. The remainder of the increase was as a result of commissions relating to the high volume of new prepaid connections during the year.

In our International operations, total expenses decreased by 2.3% (up 5.7%*) with continued focus on cost containment through initiatives such as 'Fit for growth' and moving
airtime purchases to M-Pesa, to reduce distribution cost, has assisted in keeping cost growth below revenue growth.

EBIT

                                                                               Year ended 31 March             % change

Rm                                                                            2018              2017              17/18

South Africa                                                                21 124            20 593                2.6
International                                                                2 096             1 648               27.2
Corporate and eliminations                                                    (111)             (115)               3.5

Group EBIT                                                                  23 109            22 126                4.4

Safaricom(2)                                                                 6 799                 -                  -

(1.) Excluding depreciation, amortisation, impairments and share based payment charges.
(2.) Represents eight months of value effective 1 August 2017, at 100% interest. The Safricom interest is equity accounted in net profit from associate and joint venture in the
     income statement. These values are for information purposes.

Group EBIT increased 4.4% (up 2.8%*) with the Group EBIT margin decreasing by 0.4ppts to 26.8%. South Africa EBIT increased by 2.6% with margins contracting 1.6ppts to 30.2%.
Margins were impacted by higher depreciation and amortisation costs and increased contribution from lower margin equipment sales. In our International operations, EBIT
increased 27.2% (26.5%*) with the EBIT margin expanding by 2.5ppts to 12.0%. Margins were aided by improved revenue growth in these operations following declines in the prior
year and strong management execution in containing costs.

In Safaricom, EBIT increased 12.6% (18.3% excluding one-off adjustments in the prior year relating to a KES3.4billion excise duty refund) for the financial year as a result of the
higher service revenue contribution.

Operating profit

                                                                                   Year ended 31 March             % change

Rm                                                                                2018              2017              17/18

South Africa                                                                    20 860            20 238                3.1
International                                                                    1 997             1 627               22.7
Safricom^?                                                                       1 506                 -                  -
Corporate and eliminations                                                        (111)             (115)               3.5

Group operating profit                                                          24 252            21 750               11.5


Group operating profit increased 11.5% to R24.3 billion. In South Africa, operating profit grew by 3.1% to R20.9 billion mainly due to improved revenue growth and strong cost
containment focus, especially in operating expense management. International operations' operating profit increased 22.7% to R2.0 billion, lower than EBIT growth as a result of
restructuring costs in the DRC and costs relating to the listing of Vodacom Tanzania.

Safaricom contributed R1.5 billion in net profit for the eight months since acquisition. This represents our share of the net profit in the associate of R1.9 billion and the related
amortisation of fair valued assets recognised on acquisition of R383 million and before minority interest.

Net finance charges

                                                                                    Year ended 31 March             % change

Rm                                                                                2018               2017              17/18

Finance income                                                                     703                777               (9.5)
Finance costs                                                                   (2 811)            (2 818)               0.2

Net finance costs                                                               (2 108)            (2 041)              (3.3)
Net loss on remeasurement and disposal of financial instruments                   (785)              (481)             (63.2)

Net finance charges                                                             (2 893)            (2 522)             (14.7)

Net finance costs of R2.1 billion has remained relatively consistent as weighted average gross debt in the year was relatively unchanged and cost of debt was flat at 8.3%. The net
loss on remeasurement and disposal of financial instruments of R785 million increased mainly as a result of mark-to-market remeasurements on open forward exchange contracts
(FECs) in South Africa. This follows increased volumes of FECs in the second half of the year as handset orders increased and higher volatility in the USD/ZAR rates in the last
quarter of this year. This also includes net losses on the remeasurement of foreign cash balances across the Group.

Taxation

The tax expense of R6.5 billion was 7.0% higher than the prior year (2017: R6.1 billion). The Group's effective tax rate decreased from 31.7% in the prior year to 29.6%. This decrease
is primarily due to our share of Safaricom's after tax profits included in profit before tax (-1.9ppts) and the profit on sale of the HTT associate investment in Tanzania (-0.5ppts). In the
prior year, the effective tax rate was impacted by +1.4ppts for the Tanzanian capital allowance adjustment in relation to the disposal of network assets to HTT, which was not
repeated in the current year.

Earnings

                                                                                   Year ended 31 March              % change

Rm                                                                                2018              2017               17/18

Headline earnings                                                               14 946            13 540                10.4
Adjusted for
Net Profit from associate and joint venture                                     (1 506)                -                   -

 Attributable profits from Safaricom                                             1 889                 -                   -
 Amortisation on assets, net of tax                                               (383)                -                   -

With-holding tax                                                                   132                 -
Minority interest and other                                                        191                 -

Adjusted headline earnings (used for dividend calculations)                     13 763            13 540                 1.6

Earnings per share (EPS) (cents)                                                   947               915                 3.5

Headline earnings per share (HEPS) (cents)                                         923               923                   -

Weighted average number of ordinary share outstanding for the
purpose of calculating EPS and HEPS                                              1 620             1 467                10.4


Headline earnings for the year was up 10.4%, boosted by the contribution from our share of Safaricom's earnings. Headline earnings per share was flat year on year. This is mainly
due to the dilution from the issue of 233.5 million shares as consideration for the acquisition of our interest in Safaricom. The dilution effect of 89 cents per share (cps), was fully
compensated for by our share of Safaricom's earnings (+94cps), net of the associated withholding tax and minority interest. The amortisation of other fair valued assets (net at minority interest), 
relating to the Safaricom acquisition, negatively impacted HEPS by 21cps. Excluding the effects from the intangible assets amortisation, HEPS increased 2.3%.


Capital expenditure

                                                                               Year ended 31 March            % change

Rm                                                                            2018              2017             17/18

South Africa                                                                 8 884             8 471               4.9
International                                                                2 707             2 833              (4.4)
Corporate and eliminations                                                       3               (12)            125.0

Group capital expenditure                                                   11 594            11 292               2.7

Group capital intensity(1) (%)                                                13.4              13.9           (0.5ppt)

Safaricom                                                                    2 933                 -


The Group's capital expenditure was R11.6 billion, representing 13.4% of revenue. In South Africa, capital expenditure was directed at accelerating our 3G capacity and extending 4G
coverage to 80.1% of the population. In our International operations, the focus remained on increasing both coverage and capacity thereby adding 261 4G sites, 454 3G sites and
253 2G sites since March 2017. In Safaricom, capital expenditure was focused on increasing 3G and 4G sites by 18.9% and 49.4% respectively.

(1.) Capital expenditure as a percentage of revenue.

Statement of financial position

Property, plant and equipment increased 0.9% to R40.5 billion and intangible assets decreased 1.2% to R9.1 billion compared to 31 March 2017. The combined increase is mainly
as a result of net additions of R11.5 billion, offset by depreciation and amortisation of R10.0 billion and foreign currency translation loss of R1.3 billion.

Net debt decreased by R2.6 billion to R19.9 billion. Total borrowings increased by R916 million to R32.3 billion. Bank and cash balances increased by R3.7 billion mainly due to the
cash proceeds from the initial public offering in Vodacom Tanzania and the sale of HTT in Tanzania.

Net debt

                                                                               Year ended 31 March            Movement

Rm                                                                            2018              2017             17/18

Bank and cash balances                                                      12 538             8 873             3 665
Current borrowings                                                          (8 220)           (3 762)           (4 458)
Non-current borrowings                                                     (24 071)          (27 613)            3 542
Other financial instruments                                                   (139)               18              (157)

Net debt(1)                                                                (19 892)          (22 484)            2 592

Net debt(1)/EBITDA (times)                                                     0.6               0.7

Cash flow

Free cash flow

                                                                               Year ended 31 March            % change

Rm                                                                            2018              2017             17/18

EBITDA                                                                      32 898            31 238               5.3
Working capital                                                               (558)             (629)             11.3
Capital expenditure(2)                                                     (11 594)          (11 292)             (2.7)
Disposal of property, plant and equipment                                      187                73             156.2
Other                                                                          184               165              11.5

Operating free cash flow                                                    21 117            19 555               8.0
Tax paid                                                                    (6 194)           (6 051)             (2.4)
Dividends received from associate                                            1 988                 -                 -
Finance income received                                                        859               689              24.7
Finance costs paid                                                          (3 182)           (2 699)            (17.9)
Net dividends paid                                                            (393)              (91)          (>200.0)

Free cash flow                                                              14 195            11 403              24.5

Operating free cash flow was up 8.0% as trading performance improved during this year, evidenced by EBITDA increasing 5.3%. Our cash conversion remains strong at 64.2% (2017:
62.6%) as we maintain strong working capital management. Free cash flow increased 24.5% or R2.8 billion mainly due to the dividend received from associate by Vodafone Kenya
Limited of R2.0 billion from Safaricom and the minority distribution which is reflected in net dividends paid. The movement in finance costs paid, relates mainly to realised net
losses incurred on close out of forward exchange contracts.

(1.) Debt includes interest bearing debt, non-interest bearing debt and bank overdrafts.
(2.) Capital expenditure comprises the purchase of property, plant and equipment and intangible assets, other than license and spectrum payments. Purchases of customer bases
     are excluded from capital expenditure.


Declaration of final dividend number 18 - payable from income reserves

Notice is hereby given that a gross final dividend number 18 of 425 cents per ordinary share in respect of the financial year ended 31 March 2018 has been declared payable on
Monday 25 June 2018 to shareholders recorded in the register at the close of business on Friday 22 June 2018. The number of ordinary shares in issue at the date of this
declaration is 1 721 413 781. The dividend will be subject to a local dividend withholding tax rate of 20% which will result in a net interim dividend to those shareholders not
exempt from paying dividend withholding tax of 340.00000 cents per ordinary share.

  Last day to trade shares cum dividend                                                    Tuesday 19 June 2018
  Shares commence trading ex-dividend                                                    Wednesday 20 June 2018
  Record date                                                                               Friday 22 June 2018
  Payment date                                                                              Monday 25 June 2018

Share certificates may not be dematerialised or rematerialised between Wednesday 20 June 2018 and Friday 22 June 2018 both days inclusive.

On Monday 25 June 2018, the dividend will be electronically transferred into the bank accounts of all certificated shareholders where this facility is available. Shareholders who
hold dematerialised shares will have their accounts at their CSDP or broker credited on Monday 25 June 2018.

Vodacom Group Limited tax reference number is 9316/041/71/5.

Dividend

The final dividend of 425 cents per share, reflects a dividend in line with policy.

The Board maintains its dividend policy of paying at least 90% of adjusted headline earnings which excludes the contribution of the attributable net profit or loss from Safaricom
and any associated intangible amortisation. In addition, the Group intends to distribute any dividend it receives from Safaricom, up to a maximum amount of the dividend received,
net of withholding tax.

The Group intends to pay as much of its after tax profits as will be available after retaining such sums and repaying such borrowings owing to third parties as shall be necessary to
meet the requirements reflected in the budget and business plan, taking into account monies required for investment opportunities. There is no fixed date on which entitlement to
dividends arises and the date of payment will be determined by the Board or shareholders at the time of declaration, subject to the JSE Listings Requirements.

For and on behalf of the Board

Jabu Moleketi            Shameel Aziz Joosub           Till Streichert
Chairman                 Chief Executive Officer       Chief Financial Officer
Midrand
11 May 2018

(1.) Exchange rate of ZAR/KES8.52 as at 31 March 2018.

Condensed consolidated income statement
for the year ended 31 March

                                                                                                   2018               2017

Rm                                                                               Notes         Reviewed            Audited

Revenue                                                                              3           86 370             81 278
Direct expenses                                                                                 (33 669)           (30 483)
Staff expenses                                                                                   (5 509)            (5 472)
Publicity expenses                                                                               (1 913)            (1 971)
Other operating expenses                                                                        (12 441)           (12 193)
Share-based payment charges                                                                        (130)               (75)
Depreciation and amortisation                                                                    (9 959)            (9 251)
Impairment losses                                                                                    (4)               (84)
Net profit from associate and joint venture                                          8            1 507                  1

Operating profit                                                                                 24 252             21 750
Profit on sale of associate                                                          9              734                  -
Finance income                                                                                      703                777
Finance costs                                                                                    (2 811)            (2 818)
Net loss on remeasurement and disposal of financial instruments                                    (785)              (481)

Profit before tax                                                                                22 093             19 228
Taxation                                                                                         (6 531)            (6 102)

Net profit                                                                                       15 562             13 126

Attributable to:
Equity shareholders                                                                              15 344             13 418
Non-controlling interests                                                                           218               (292)
                                                                                                 15 562             13 126


                                                                                                   2018               2017
Cents                                                                                          Reviewed            Audited

Basic earnings per share                                                             4              947                915
Diluted earnings per share                                                           4              919                886


Condensed consolidated statement of comprehensive income
for the year ended 31 March

                                                                             2018             2017
Rm                                                                       Reviewed          Audited

Net profit                                                                 15 562           13 126
Other comprehensive income(1)
Foreign currency translation differences, net of tax                       (5 867)          (1 633)

Total comprehensive income                                                  9 695           11 493

Attributable to:
Equity shareholders                                                         9 943           11 647
Non-controlling interests                                                    (248)            (154)
                                                                            9 695           11 493

(1.) Other comprehensive income can subsequently be recognised in profit or loss on the disposal of foreign operations.


Condensed consolidated statement of financial position
as at 31 March

                                                                                               2018              2017
Rm                                                                           Notes         Reviewed           Audited

Assets
Non-current assets                                                                           96 543            52 127

Property, plant and equipment                                                                40 529            40 181
Intangible assets                                                                             9 073             9 186
Financial assets                                                                                430               424
Investment in associate                                                          8           44 076                 -
Investment in joint venture                                                                       6                 5
Trade and other receivables                                                                     724               905
Tax receivable                                                                                  106                66
Finance receivables                                                                           1 320             1 161
Deferred tax                                                                                    279               199

Current assets                                                                               34 822            29 011

Financial assets                                                                              4 532             3 489
Inventory                                                                                     1 243             1 268
Trade and other receivables                                                                  14 819            13 489
Non-current assets held for sale                                                 9               14               114
Finance receivables                                                                           1 463             1 556
Tax receivable                                                                                  213               222
Bank and cash balances                                                                       12 538             8 873

Total assets                                                                                131 365            81 138

Equity and liabilities
Fully paid share capital                                                         8           42 618                 *
Treasury shares                                                                              (1 792)           (1 670)
Retained earnings                                                                            28 731            26 396
Other reserves                                                                               (5 089)             (663)

Equity attributable to owners of the parent                                                  64 468            24 063
Non-controlling interests                                                                     6 184            (1 067)

Total equity                                                                                 70 652            22 996
Non-current liabilities                                                                      28 130            31 423

Borrowings                                                                      10           24 071            27 613
Trade and other payables                                                                        978               815
Provisions                                                                                      388               360
Deferred tax                                                                                  2 693             2 635

Current liabilities                                                                          32 583            26 719

Borrowings                                                                      10            8 220             3 762
Trade and other payables                                                                     23 958            22 700
Provisions                                                                                      161               188
Tax payable                                                                                     221                47
Dividends payable                                                                                23                22

Total equity and liabilities                                                                131 365            81 138

* Fully paid share capital of R100.


Condensed consolidated statement of changes in equity
for the year ended 31 March

                                                                                               Equity
                                                                                         attributable              Non-
                                                                                         to owners of       controlling             Total
Rm                                                                              Note       the parent         interests            equity
 
31 March 2016 - Audited                                                                        24 158            (1 134)           23 024
Total comprehensive income                                                                     11 647              (154)           11 493
Dividends                                                                                     (11 657)              (91)          (11 748)
Repurchase, vesting and sale of shares                                                           (134)                -              (134)
Share-based payments                                                                              123                 -               123
Changes in subsidiary holdings                                                                    (74)              312               238

31 March 2017 - Audited                                                                        24 063            (1 067)           22 996
Total comprehensive income                                                                      9 943              (248)            9 695
Dividends                                                                                     (13 009)             (393)          (13 402)
Shares issued on acquisition of subsidiary and associate net of share
issue cost                                                                         8           42 618                 -            42 618
Repurchase, vesting and sale of shares                                                           (269)                -              (269)
Share-based payments                                                                              138                 -               138
Changes in subsidiary holdings                                                                    984             1 788             2 772
Acquisition of subsidiary and associate                                            8                -             6 104             6 104

31 March 2018 - Reviewed                                                                       64 468             6 184            70 652


Condensed consolidated statement of cash flows
for the year ended 31 March

                                                                                                 2018             2017
Rm                                                                             Notes         Reviewed           Audited

Cash generated from operations                                                                 32 299            31 791
Tax paid                                                                                       (6 194)           (6 051)

Net cash flows from operating activities                                                       26 105            25 740

Cash flows from investing activities
Additions to property, plant and equipment and intangible assets                              (10 825)          (11 689)
Proceeds from disposal of property, plant and equipment and
intangible assets                                                                                 187                73
Acquisition of subsidiary and associate (net of cash and cash
equivalents acquired)                                                                            (410)             (285)
Proceeds from disposal of associate                                                9              797                 -
Dividends received from associate                                                  8            1 988                 -
Finance income received                                                                           859               689
Repayment of loans granted                                                                          -               295
Other investing activities(1)                                                                  (1 122)           (1 278)

Net cash flows utilised in investing activities                                                (8 526)          (12 195)

Cash flows from financing activities
Borrowings incurred                                                               10            1 124             4 000
Borrowings repaid                                                                 10             (107)           (1 568)
Finance costs paid                                                                             (3 182)           (2 699)
Dividends paid - equity shareholders                                                          (13 010)          (11 657)
Dividends paid - non-controlling interests                                                       (393)              (91)
Repurchase and sale of shares                                                                    (269)             (134)
Changes in subsidiary holdings                                                  12.9            2 770               240

Net cash flows utilised in financing activities                                               (13 067)          (11 909)

Net increase in cash and cash equivalents                                                       4 512             1 636
Cash and cash equivalents at the beginning of the year                                          8 873             7 751
Effect of foreign exchange rate changes                                                          (847)             (514)

Cash and cash equivalents at the end of the year                                               12 538             8 873

(1.) Consists mainly of the movement in restricted cash deposits of R821 million (2017: R836 million) as a result of M-Pesa related activities.


Notes to the preliminary condensed consolidated financial statements
for the year ended 31 March 2018

1.     Basis of preparation

       The preliminary condensed consolidated financial statements for the year ended 31 March 2018, have been prepared in accordance with the
       framework concepts, the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and in accordance with and containing the information
       required by the International Accounting Standard 34: Interim Financial Reporting (IAS 34) as issued by the International Accounting Standards Board (IASB), the Financial
       Reporting Guides as issued by the South African Institute of Chartered Accountants' (SAICA) Accounting Practices Committee, Financial Pronouncements as issued by the
       Financial Reporting Standards Council, the JSE Limited (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 parent Company's functional and presentation currency.

       The significant accounting policies and methods of computation are consistent in all material respects with those applied in the previous year, except as disclosed in 
       Note 2. The significant accounting policies are available for inspection at the Group's registered office.

       The preparation of these preliminary condensed consolidated financial statements was supervised by the Chief Financial Officer, Dr. phil. T Streichert.
       These preliminary condensed consolidated 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 Group's registered office, together with the financial statements identified in the auditor's report.


2.     Changes in accounting policies

       The Group adopted the new, revised or amended accounting pronouncements as issued by the IASB, which were effective and applicable to the Group from 1 April 2017,
       none of which had any material impact on the Group's financial results for the year.

       Full details on changes in accounting policies will be disclosed in the Group's consolidated annual financial statements for the year ended 31 March 2018, which will be
       available online by 15 June 2018.

                                                                                       2018              2017
       Rm                                                                          Reviewed           Audited

3.     Segment analysis
       External customer segment revenue                                             86 370            81 278

        South Africa                                                                 69 541            64 415
        International                                                                16 829            16 863
        Corporate and eliminations                                                        -                 -

        Safaricom(1)                                                                 19 768                 -

       Inter-segment revenue                                                              -                 -

        South Africa                                                                   (426)             (314)
        International                                                                  (631)             (487)
        Corporate and eliminations                                                    1 057               801

       (1.) On 7 August 2017, the Group acquired an effective interest of 34.94% in Safaricom Limited (Safaricom), which is accounted for as an investment in associate. Due to the
            significance of this investment, and the information available for review by the chief operating decision maker, Safaricom is presented as a separate segment. The above
            results represent 100% of the results of Safaricom from the date of acquisition, including the impact of net fair value adjustments on tangible and intangible assets and
            goodwill (Note 8).

                                                                                         2018              2017
       Rm                                                                            Reviewed           Audited

3.     Segment analysis continued
       EBITDA                                                                          32 898            31 238

        South Africa                                                                   28 088            26 815
        International                                                                   4 930             4 545
        Corporate and eliminations                                                       (120)             (122)
 
        Safaricom(1)                                                                    9 620                 -

       EBIT                                                                            23 109            22 126

        South Africa                                                                   21 124            20 593
        International                                                                   2 096             1 648
        Corporate and eliminations                                                       (111)             (115)

        Safaricom(1)                                                                    6 799                 -

       Reconciliation of segment results
       EBITDA                                                                          32 898            31 238
       Depreciation and amortisation excluding acquired brands and
       customer bases                                                                  (9 798)           (9 054)
       Net profit/(loss) on disposal of property, plant and equipment and
       intangible assets                                                                    9               (58)

       EBIT                                                                            23 109            22 126
       Acquired brand and customer base amortisation                                     (161)             (197)
       Impairment losses                                                                   (4)              (84)
       Share-based payment charges                                                       (130)              (75)
       Net profit from associate and joint venture                                      1 507                 1
       Other                                                                              (69)              (21)

       Operating profit(2)                                                             24 252            21 750

       Total assets                                                                   131 365            81 138

        South Africa                                                                   60 426            51 930
        International                                                                  24 756            23 104
        Corporate and eliminations                                                     46 183             6 104

        Safaricom(3)                                                                   51 000                 -

       Total liabilities                                                              (60 713)          (58 142)

        South Africa                                                                  (51 068)          (43 134)
        International                                                                 (15 169)          (16 413)
        Corporate and eliminations                                                      5 524             1 405

        Safaricom(3)                                                                  (13 179)                -

       (2.) For a reconciliation of operating profit to net profit for the year, refer to the Condensed consolidated income statement above.
       (3.) On 7 August 2017, the Group acquired an effective interest of 34.94% in Safaricom Limited (Safaricom), which is accounted for as an investment in associate. Due to the
            significance of this investment, and the information available for review by the chief operating decision maker, Safaricom is presented as a separate segment. The above
            results represent 100% of the results of Safaricom as at 31 March 2018, including the impact of net fair value adjustments on tangible and intangible assets and
            goodwill (Note 8).


                                                                                       2018              2017
       Cents                                                                       Reviewed           Audited

4.     Per share calculations
4.1    Earnings and dividends per share
       Basic earnings per share                                                         947               915
       Diluted earnings per share                                                       919               886
       Headline earnings per share                                                      923               923
       Diluted headline earnings per share                                              895               894
       Dividends per share(1)                                                           825               795


                                                                                       2018              2017
       Million                                                                     Reviewed           Audited

4.2    Weighted average number of ordinary shares outstanding for the
       purpose of calculating:
       Basic and headline earnings per share                                          1 620             1 467
       Diluted earnings and diluted headline earnings per share                       1 622             1 469

4.3    Ordinary shares for the purpose of calculating:
       Dividends per share
       400 cents per share declared on 13 May 2016                                        -             1 488
       395 cents per share declared on 11 November 2016                                   -             1 488
       435 cents per share declared on 12 May 2017(1)                                 1 488                 -
       390 cents per share declared on 10 November 2017                               1 721                 -

       (1.) The final dividend for the year ended 31 March 2017 was declared and paid prior to the issue of shares for the Safaricom acquisition (Note 8).

       Vodacom Group Limited acquired 2 108 969 shares in the market during the year at an average price of R165.07 per share. Share repurchases did not exceed 1% of
       Vodacom Group Limited's issued share capital.

       Dividend per share calculations are based on a dividend paid of R13 186 million (31 March 2017: R11 829 million) of which R44 million (31 March 2017: R44 million) was
       offset against the forfeitable share plan reserve, R6 million (31 March 2017: R5 million) expensed as staff expenses and R127 million (31 March 2017: R123 million) paid to
       Wheatfields Investments 276 (Pty) Limited, a wholly-owned subsidiary holding treasury shares on behalf of the Group. The Group declared a final dividend in respect of the
       year ending 31 March 2018 after the reporting period (Note 13).

                                                                                       2018              2017
       Rm                                                                          Reviewed           Audited

4.     Per share calculations continued
4.4    Headline earnings reconciliation
       Earnings attributable to equity shareholders for basic earnings
       per share                                                                     15 344            13 418
       Adjusted for:
        Net (profit)/loss on disposal of property, plant and equipment
        and intangible assets(2)                                                        (10)               58
        Impairment losses                                                                 4                84
        Profit on sale of associate                                                    (734)                -
                                                                                     14 604            13 560
       Tax impact of adjustments                                                         86               (15)
       Non-controlling interests' share in adjustments                                  256                (5)

       Headline earnings for headline earnings per share(3)                          14 946            13 540
       Dilutive effect of potential ordinary shares in subsidiary                      (432)             (408)

       Headline earnings for diluted headline earnings per share                     14 514            13 132

       (2.) Includes attributable share of profit on disposal of property plant and intangible assets of associate of R1 million (2017: R Nil).
       (3.) This disclosure is a requirement of the JSE Limited. It has been calculated in accordance with Circular 2/2015 as issued by SAICA.

5.     Related parties

       The amounts disclosed in Notes 5.1 and 5.2 include significant balances and transactions with the Group's associates, joint venture and parent, including entities
       in its group.
                                                                                       2018              2017
       Rm                                                                          Reviewed           Audited

5.1    Balances with related parties
       Borrowings                                                                    27 862            26 856

5.2    Transactions with related parties
       Dividends declared                                                            (8 539)           (7 689)
       Finance costs                                                                 (2 325)           (2 334)

      
5.3    Directors' and key management personnel remuneration

       Compensation paid to the Group's Board and key management personnel will be disclosed in the Group's consolidated annual financial statements for the year ended 
       31 March 2018, which will be available online by 15 June 2018.

       MP Moyo, independent chairman of the Group, retired and stepped down from the Board on 19 July 2017 and was succeeded by PJ Moleketi. SJ Macozoma was appointed
       to the Board on 19 July 2017, succeeding PJ Moleketi as the lead independent director.

                                                                                       2018              2017
       Rm                                                                          Reviewed           Audited

6.     Capital commitments
       Capital expenditure contracted for but not yet incurred(4)                     2 692             2 361

       (4.) The Group entered into facilities leasing, services and roaming agreements with Rain Networks (Pty) Limited (previously Wireless Business Solutions (Pty) Limited) which
            will result in R1 225 million (31 March 2017: R1 740 million) future capital expenditure for the Group. The majority of this expenditure is non-current. Capital
            commitments do not include the aforementioned.
                                                                                       2018              2017
       Rm                                                                          Reviewed           Audited

7.     Capital expenditure incurred
       Capital expenditure additions including software                              11 594            11 292

       
8.     Acquisition of interest in Safaricom Limited (Safaricom) through Vodafone Kenya Limited (Vodafone Kenya)

       On 7 August 2017, the Group acquired 87.5% of Vodafone Kenya from Vodafone International Holdings B.V. (VIHBV). Vodafone Kenya holds a 39.93% stake in Safaricom, the
       Republic of Kenya's leading integrated communications company. The investment in Vodafone Kenya has been treated as an investment in a subsidiary in terms of IAS 27:
       Separate Financial Statements. As Vodafone Kenya is an investment holding company, with its only material asset being the associate investment in Safaricom, the
       transaction does not meet the definition of a business combination under IFRS 3: Business Combinations. The 39.93% equity interest that Vodafone Kenya holds in
       Safaricom has been equity accounted as an investment in an associate.

       The purchase consideration was settled by the issuance of 233 459 781 Vodacom Group Limited shares to the value of R42 618 million (net of directly attributable
       transaction costs of R3 million), measured based on the closing price of Vodacom Group Limited on the effective date, and, for the equity interest in Vodafone Kenya, a cash
       consideration of R51 million.

       VIHBV retained a non-controlling interest (NCI) of 12.5% in Vodafone Kenya, resulting in NCI of R6 104 million being recognised at the acquisition date, measured on a fair
       value basis.

       The fair value of the Group's investment in Safaricom, based on the listed closing share price as at 31 March 2018, was R57 748 million.

                                                                                                            31 March
                                                                                                                2018
       Rm                                                                                                   Reviewed

       Reconciliation of carrying amount:
       Investment at cost (including R408 million directly attributable costs)                                43 029
       Derivative on acquisition                                                                                  52
       Non-controlling interest's share of associate investment at fair value                                  6 096

       Investment at cost (including directly attributable costs, derivative and NCI)                         49 177
       Profit from associate                                                                                   1 506

        Net profit for the period                                                                              1 889
        Depreciation and amortisation on fair value adjustment, net of tax                                      (383)

       Dividends received                                                                                     (1 988)
       Foreign exchange loss                                                                                  (4 619)

       Carrying amount of investment at 31 March 2018                                                         44 076

       Analysis of investment at cost (including directly attributable costs, derivative and NCI)
       Safaricom's net asset value at acquisition                                                             15 707
       Fair value adjustments net of tax                                                                      26 714

       Safaricom's net assets at fair value                                                                   42 421
       Vodafone Kenya's equity interest in Safaricom at 39.93%                                                16 941
       Notional goodwill                                                                                      32 236

       Vodafone Kenya's investment in associate                                                               49 177

       Refer to the segment disclosure in Note 3 for key financial information of Safaricom.

9.     Sale of investment in Helios Towers Tanzania Limited (Helios)

       Vodacom Tanzania Public Company Limited sold its 24.06% investment in Helios to Helios Towers Africa Holding Limited (HTA) during October 2017 for total cash proceeds
       of R797 million. This investment was included in non-current asset held for sale as at 31 March 2017. The sale resulted in a pre-tax profit on sale of R734 million being
       recognised. The remaining balance of loans receivable from Helios to the value of R42 million have also been sold to HTA.

10.    Borrowings

       During the current year, the Group modified two of the existing loan facilities received from Vodafone Investments Luxembourg s.a.r.l. (Vodafone Luxembourg). On 
       3 May 2017, R8 000 million and R4 000 million loan facilities were revised from variable interest rate loans to fixed interest rate loans. The loan facilities bear interest at fixed rates
       of 8.703% and 8.991% and are repayable on 26 November 2019 and 26 July 2021 respectively.

       Additionally, an existing fixed rate facility of R3 000 million was re-financed with a floating rate facility of R3 000 million at a rate of 3 month Jibar +1.50% with a repayment
       date of 24 May 2022.

       The Group also re-financed a R1 530 million facility on 24 November 2017 and increased the facility with an additional R1 000 million draw down. This R2 530 million loan
       bears interest at 3 month JIBAR plus 1.50% and is repayable on 24 November 2024.

11.    Contingent liabilities

11.1   Guarantees

       The Group has various guarantees in issue, relating to external financial obligations of its subsidiaries, which amounted to R116 million (31 March 2017: R119 million).

       Foreign denominated guarantees amounting to R889 million (31 March 2017: R1 005 million) are in issue in support of Vodacom Congo (RDC) SA relating to liabilities
       included in the consolidated statement of financial position.

11.2   Tax matters

       The Group is regularly subject to an evaluation by tax authorities of its direct and indirect tax filings. The consequence of such reviews is that disputes can arise with tax
       authorities over the interpretation or application of certain tax rules to the Group's business. These disputes may not necessarily be resolved in a manner that is favourable
       to the Group. In addition, the resolution of the disputes could result in obligations to the Group. The Group has made sufficient provision for any losses arising from potential
       tax exposures that are more likely to occur than not.

11.3   Legal contingencies

       The Group is currently involved in various legal proceedings and has, in consultation with its legal counsel, assessed the outcome of these proceedings. Following this
       assessment, the Group's management has determined, that adequate provision has been made in respect of these legal proceedings as at 31 March 2018.

11.4   Kenneth Makate (Mr Makate) vs Vodacom (Pty) Limited

       Negotiations in accordance with the Constitutional Court order to determine a reasonable compensation for Mr Makate for a business idea that led to a product known as
       'Please Call Me' have deadlocked and the matter has been referred to the Group's Chief Executive Officer to determine reasonable compensation in accordance with the
       Constitutional Court order.


12.    Other matters

12.1   Competition Commission investigations

12.1.1 Competition complaint on the National Treasury government transversal contract for mobile communications services

       On 14 March 2016, National Treasury issued a tender for the supply and delivery of mobile communication services to national and provincial government departments in
       South Africa. The tender was awarded to the Group, for the period 15 September 2016 to 31 August 2020, after an open and transparent process. The Competition
       Commission has initiated an investigation against the Group under sections 8(c) and 8(d)(i) of the Competition Act, which is ongoing.

12.1.2 Facilities leasing and roaming agreements between Vodacom (Pty) Limited (the Company) and Rain Networks (Pty) Limited (Rain) (previously Wireless Business 
       Solutions (Pty) Limited)

       A number of the Group's competitors lodged complaints with the Independent Communications Authority of South Africa (ICASA) and the Competition Commission relating
       to the facilities leasing and roaming arrangements with Rain. On 25 April 2018, the Competition Commission ruled that these arrangements did not constitute a merger and
       that the transaction was not notifiable as contemplated in section 13A(1) of the Competition Act, Act 89 of 1998. ICASA's investigation, on the other hand, is still ongoing.

12.2   G.H. Investments (GHI) and Vodacom Congo (RDC) SA (Vodacom Congo)

       Vodacom Congo contracted GHI to install ultra-low cost base stations on a revenue share basis. Shortly after rolling out the first sites GHI sought to renegotiate the
       contractual terms, which Vodacom Congo declined. GHI then accused Vodacom Congo of infringing its intellectual property rights and demanded payment of
       compensation in the sum of US$1.16 billion. In July 2016, Vodacom Congo filed a request for arbitration with the International Chamber of Commerce's International Court
       of Arbitration (ICC). GHI failed to pay its share of the arbitration fees to the ICC, resulting in the matter being struck out from the ICC roll.

12.3   Mr Puati vs Vodacom Congo

       A patent infringement claim was filed in July 2016 against Vodacom Congo. The plaintiff was asking the Commercial Court of Kinshasa/Gombe, inter alia, to prohibit
       Vodacom Congo from providing the M-Pesa service and to order Vodacom Congo to pay damages in excess of USD200 million for losses resulting from the alleged patent
       infringement. On 22 November 2017, the Commercial Court issued a judgment in favour of Vodacom Congo, barring the action and claim that the plaintiff had initiated against
       Vodacom Congo.

12.4   Customer registration

       The Group has made considerable strides in complying with customer registration requirements in all its markets in line with applicable laws. In Tanzania, significant
       measures are being taken to achieve full compliance. The Group will maintain full compliance with customer registration requirements in markets where it has already been
       achieved.

12.5   Radio frequency spectrum licences

       On 30 September 2016 the Pretoria High Court granted an application by the Ministry of Telecommunications and Postal Services (the Ministry) interdicting ICASA from
       implementing the spectrum licensing process contemplated in the Invitation to Apply (ITA) for the licensing of spectrum in the 700MHz, 800MHz and 2600MHz bands,
       pending the outcome of a judicial review on the lawfulness of the ICASA ITA.

12.6   Electronic Communications Amendment Bill (ECA bill)

       On 17 November 2017, the Ministry, published an invitation to provide comments on the ECA bill, having its origins in the Integrated information and communication
       technology ICT Policy White Paper of 2 October 2016. Stakeholders made representations to the Ministry at public hearings held on 6 and 7 March 2018. After considering
       comments submitted and presentations at hearings, the Ministry will soon submit the ECA bill for adoption by Cabinet and later table it in Parliament.

12.7   ICASA priority market review

       In June 2017, ICASA published a notice of intention to conduct an inquiry to identify priority markets in terms of section 4B of the ICASA Act. The purpose of the study is to
       identify markets to be prioritised for a potential market review. The final phase of the inquiry would be the publication of a findings document, which is expected in the
       second half of 2019.

12.8   Amendment to End-user and Subscriber Service Charter Regulations

       On 30 April 2018, ICASA published final amendments to the End-user and Subscriber Service Charter Regulations, which will take effect on 8 June 2018, with the main
       objective to address consumer concerns with regard to out-of-bundle charges and expiry rules. The final amendments follows a consultation process between ICASA and
       industry stakeholders. The salient points of the new regulations are as follows:

       - Bundle depletion notices are to be sent to customers at 50%, 80% and 100% depletion;
       - Operators are not allowed to default to out-of-bundle charges on depletion of bundles, unless specific opt-in from the customer is obtained; and
       - Operators should allow customers the option to roll over unused data before expiry and also provide customers with an option to transfer data to another customer on
         the same network.

12.9   Vodacom Tanzania Public Limited Company (Vodacom Tanzania)

       In June 2016, the Parliament of Tanzania passed the Finance Act, 2016 which amends listing requirements under the Electronic and Postal Communication Act, 2010
       (EPOCA), to introduce mandatory listing requirements and require licensed telecommunications operators to list 25% of their authorised share capital through an initial
       public offering (IPO) on the Dar Es Salaam Stock Exchange (DSE).

       On 15 August 2017, Vodacom Tanzania listed on the Main Investment Market Segment (MIMS) of the DSE under the ticker VODA, and became the first telecommunications
       operator to comply with these regulatory changes. The listing was the largest initial public offering (IPO) in the 19-year history of the DSE, and raised net proceeds after
       underwriting costs of R2 770 million (TZS470 billion).

       The Group has entered into an agreement with its local Tanzanian partner, Mirambo Limited (Mirambo), and certain of Mirambo's shareholders, under the terms of which the
       Group will acquire all of Mirambo's 588 million shares in Vodacom Tanzania. This will result in the Group increasing its total interest in Vodacom Tanzania from 61.6% to
       75%. The transaction close is subject to conditions precedent, including requisite regulatory approvals in Tanzania.

12.10 Mobile termination rates (MTR)

       Regulators in Tanzania and Mozambique cut termination rates this year, with industry submissions and a new cost study in Mozambique leading to a positive outcome
       where the regulator revised MTRs upward with retrospective effect, and set a revised glide path to 2020. In Tanzania, the Group has filed an appeal against the regulator's
       new five year glide path with the Fair Competition Commission on the grounds that new MTRs were modelled using data that was not representative of actual costs incurred
       by operators and the glide path sets MTRs below cost. In South Africa, ICASA is in the process of constructing cost models that will inform MTRs to be applied from 
       October 2018.

12.11 Vodacom Congo

       Vodacom Congo is not in compliance with the minimum capital requirements as set out under the Organisation for the Harmonisation of Business Law in Africa (OHADA).
       Vodacom Congo has to increase its share capital to meet the minimum OHADA requirements. The Board and shareholders of Vodacom Congo are in negotiations to address
       the recapitalisation of the company.

12.12 Unwind of Vodacom (Pty) Limited Black Economic Empowerment (BEE) deal

       In 2008, the Group facilitated a BEE ownership transaction (the BEE transaction) through the sale of an effective 6.25% in the issued share capital of Vodacom (Pty) Limited
       (Vodacom SA) to Royal Bafokeng Holdings, Thebe Investment Corporation and YeboYethu (RF) Limited through notional vendor finance (NVF). The NVF maturity date for the
       BEE transaction is 30 September 2018. The Group is currently in the process of negotiating a new BEE transaction.

13.    Events after the reporting period

       The Board is not aware of any matter or circumstance arising since the end of the reporting period, not otherwise dealt with herein, which significantly affects the financial
       position of the Group or the results of its operations or cash flows for the period, other than the following:

13.1   Dividend declared after the reporting date and not recognised as a liability

       A final dividend of R7 316 million (425 cents per ordinary share) for the year ending 31 March 2018, was declared on 11 May 2018, payable on 25 June 2018 to shareholders
       recorded in the register at the close of business on 22 June 2018. The net dividend after taking into account dividend withholding tax for those shareholders not exempt
       from dividend withholding tax is 340.00000 cents per share.

13.2   US Department of Commerce denial order against ZTE

       Following the denial order issued by the US Department of Commerce against ZTE, the Group is in the process of assessing the impact on its networks and implementing
       the required contingency plans.

14.    Fair value hierarchy

       The table below sets out the valuation basis of financial instruments measured at fair value:

                                                                                         2018              2017
       Rm                                                                            Reviewed           Audited

       Level one(1)
       Financial assets and liabilities at fair value through profit or loss,
       classified as held for trading
       Unit trust investments                                                             328               244
       Level two(2)
       Derivative financial assets                                                         67               108
       Derivative financial liabilities                                                  (207)              (89)
                                                                                          188               263

       (1.) Level one classification is used when the valuation is determined using quoted prices in an active market.
       (2.) Level two classification is used when valuation inputs used to determine fair value are observable for the asset/(liability), either directly as prices or indirectly when
            derived from prices.


Supplementary information

Operating results for the year ended 31 March 2018
                                                                                         %                      %                                              %
                                                                        South                    Inter-                  Corporate/
Rm                                                                     Africa        17/18     national     17/18      Eliminations          Group         17/18   Safaricom(2)

Mobile contract revenue                                                23 589         (0.8)       1 081       3.9                (5)        24 665          (0.6)        2 364
Mobile prepaid revenue                                                 23 247          6.4       12 769       3.2                 -         36 016           5.2        14 888

Customer service revenue                                               46 836          2.6       13 850       3.2                (5)        60 681           2.8        17 252

Mobile interconnect                                                     1 790         (4.0)       1 245     (11.5)             (492)         2 543         (14.5)          611
Fixed service revenue                                                   2 282         57.5        1 546     (10.6)             (295)         3 533          19.8           571
Other service revenue                                                   3 714         18.9          187     (16.1)              (26)         3 875          16.8           565

Service revenue                                                        54 622          4.9       16 828       0.3              (818)        70 632           3.4        18 999

Equipment revenue                                                      13 187         15.2          342       6.2               (64)        13 465          15.1           490
Non-service revenue                                                     2 158         78.2          290      14.6              (175)         2 273          75.8           279

Revenue                                                                69 967          8.1       17 460       0.6            (1 057)        86 370           6.3        19 768
Direct expenses                                                       (29 057)       (14.6)      (5 502)      4.3               890        (33 669)        (10.5)       (5 772)
Staff expenses                                                         (3 651)        (3.8)      (1 476)      5.2              (382)        (5 509)         (0.7)       (1 092)
Publicity expenses                                                     (1 345)        (5.2)        (554)     16.7               (14)        (1 913)          2.9          (471)
Other operating expenses                                               (7 859)        (0.8)      (5 025)     (3.0)              443        (12 441)         (2.0)       (2 810)
Share based payment charges                                               (93)       (24.0)         (39)        -                 2           (130)        (73.3)            1
Depreciation and amortisation                                          (7 103)       (11.2)      (2 863)      0.2                 7         (9 959)         (7.7)       (2 832)
Impairment charges                                                          -        100.0           (4)        -                 -             (4)         95.2             -
Net profit from associate and joint venture                                 1            -            -         -             1 506          1 507             -             -

Operating profit                                                       20 860          3.1        1 997      22.8             1 395         24 252          11.5         6 792

EBITDA                                                                 28 088          4.7        4 930       8.5              (120)        32 898           5.3         9 620
EBITDA margin (%)                                                        40.1      (1.3ppt)        28.2    2.0ppt                             38.1       (0.3ppt)         48.7
EBIT                                                                   21 124          2.6        2 096      27.2              (111)        23 109           4.4         6 799
EBIT margin (%)                                                          30.2      (1.6ppt)        12.0    2.5ppt                             26.8       (0.4ppt)         34.4

Included in service revenue:
Mobile voice                                                           22 154         (4.6)       8 675      (2.5)               (6)        30 823          (4.0)            -
Mobile data(1)                                                         23 355         12.8        2 429      12.0                 -         25 784          12.8             -
Mobile messaging                                                        2 194        (12.6)         450       4.9                 1          2 645         (10.0)            -
M-Pesa revenue(1)                                                           -            -        2 327      19.6                 -          2 327          19.6             -

(1.) Mobile data revenue and M-Pesa revenue were previously reported in aggregate. These items are now separately disclosed.
(2.) Represents eight months of value effective 1 August 2017, at 100% interest. The Safaricom interest is equity accounted in net profit from associate and joint venture. These
     values are for information purposes.


Operating results for the year ended 31 March 2017
                                                                                                              Corporate/
Rm                                                                    South Africa      International       Eliminations                Group

Mobile contract revenue                                                     23 779              1 040                 (6)              24 813
Mobile prepaid revenue                                                      21 855             12 376                  -               34 231

Customer service revenue                                                    45 634             13 416                 (6)              59 044

Mobile interconnect                                                          1 864              1 406               (297)               2 973
Fixed service revenue                                                        1 449              1 730               (229)               2 950
Other service revenue                                                        3 124                223                (28)               3 319

Service revenue                                                             52 071             16 775               (560)              68 286

Equipment revenue                                                           11 447                322                (70)              11 699
Non-service revenue                                                          1 211                253               (171)               1 293

Revenue                                                                     64 729             17 350               (801)              81 278
Direct expenses                                                            (25 352)            (5 750)               619              (30 483)
Staff expenses                                                              (3 518)            (1 557)              (397)              (5 472)
Publicity expenses                                                          (1 279)              (665)               (27)              (1 971)
Other operating expenses                                                    (7 796)            (4 881)               484              (12 193)
Share based payment charge                                                     (75)                 -                  -                  (75)
Depreciation and amortisation                                               (6 388)            (2 870)                 7               (9 251)
Impairment losses                                                              (84)                 -                  -                  (84)
Net profit from associate and joint venture                                      1                  -                  -                    1

Operating profit                                                            20 238              1 627               (115)              21 750

EBITDA                                                                      26 815              4 545               (122)              31 238
EBITDA margin (%)                                                             41.4               26.2                                    38.4
EBIT                                                                        20 593              1 648               (115)              22 126
EBIT margin (%)                                                               31.8                9.5                                    27.2

Included in service revenue
Mobile voice                                                                23 229              8 894                 (6)              32 117
Mobile data(1)                                                              20 696              2 168                  -               22 864
Mobile messaging                                                             2 509                429                  -                2 938
M-Pesa revenue(1)                                                                -              1 945                  -                1 945

(1.) Mobile data revenue and M-Pesa revenue were previously reported in aggregate. These items are now separately disclosed.

South Africa key indicators

                                                                               Year ended 31 March           % change

                                                                              2018             2017             17/18

Customers(1) (thousand)                                                     41 635           37 131              12.1
Prepaid                                                                     36 275           32 000              13.4
Contract                                                                     5 360            5 131               4.5

Data customers(2) (thousand)                                                20 347           19 549               4.1

Internet of Things connections(3) (thousand)                                 3 628            2 979              21.8

Traffic(4) (millions of minutes)                                            61 155           58 409               4.7
Outgoing                                                                    51 798           48 900               5.9
Incoming                                                                     9 357            9 509              (1.6)

MOU per month(5)                                                               127              136              (6.6)
Prepaid                                                                        117              128              (8.6)
Contract                                                                       197              190               3.7

Total ARPU(6) (rand per month)                                                 101              111              (9.0)
Prepaid                                                                         58               62              (6.5)
Contract                                                                       390              408              (4.4)

Messaging (million)                                                          6 987            4 337              61.1

Number of employees                                                          5 007            5 038              (0.6)

Notes:
(1.) Customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a monthly fee that entitles
     them to use the service even if they do not actually use the service and those customers who are active whilst roaming.
(2.) Data customers are based on the number of unique users generating billable data traffic during the month. Also included are users on integrated tariff plans, or who have
     access to corporate APNs, and users who have been allocated a revenue generating data bundle during the month. A user is defined as being active if they are paying a
     contractual monthly fee for this service or have used the service during the reported month.
(3.) Internet of Things connections (IoT), is the remote wireless interchange between two or more predefined devices or a central station without direct relationship with an end
     customer, in order to support a specific business process or product.
(4.) Traffic comprises total traffic registered on Vodacom's mobile network, including bundled minutes, promotional minutes and outgoing international roaming calls, but
     excluding national roaming calls, incoming international roaming calls and calls to free services.
(5.) Minutes of use (MOU) per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly customers during the period.
(6.) Total ARPU is calculated by dividing the average monthly service revenue by the average monthly customers during the period. Prepaid and contract ARPU only include service
     revenue generated from Vodacom mobile customers.

International key indicators
                                                                              Year ended 31 March            % change

                                                                              2018             2017             17/18

Customers(1) (thousand)                                                     32 194           29 655               8.6
Tanzania                                                                    12 899           12 653               1.9
DRC                                                                         11 821           10 388              13.8
Mozambique                                                                   6 108            5 146              18.7
Lesotho                                                                      1 366            1 468              (6.9)

Data customers(2) (thousand)                                                16 573           12 997              27.5
Tanzania                                                                     7 345            6 463              13.6
DRC                                                                          4 825            3 705              30.2
Mozambique                                                                   3 730            2 280              63.6
Lesotho                                                                        673              549              22.6

30 day active M-Pesa customers(3) (thousand)                                11 757            9 963              18.0
Tanzania                                                                     6 369            6 198               2.8
DRC                                                                          1 891            1 423              32.9
Mozambique                                                                   3 109            2 029              53.2
Lesotho                                                                        388              313              24.0

MOU per month(4)
Tanzania                                                                       163              157               3.8
DRC                                                                             39               49             (20.4)
Mozambique                                                                     143              121              18.2
Lesotho                                                                         86               82               4.9

Total ARPU(5) (rand per month)
Tanzania                                                                        35               38              (7.9)
DRC                                                                             38               49             (22.4)
Mozambique                                                                      51               45              13.3
Lesotho                                                                         70               61              14.8

Total ARPU(5) (local currency per month)
Tanzania (TZS)                                                               6 086            6 003               1.4
DRC (USD)                                                                      2.9              3.5             (17.1)
Mozambique (MZN)                                                               241              216              11.6

Number of employees                                                          2 360            2 351               0.4

Notes:
(1.) Customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a monthly fee that entitles
     them to use the service even if they do not actually use the service and those customers who are active whilst roaming.
(2.) Data customers are based on the number of unique users generating billable data traffic during the month. Also included are users on integrated tariff plans, or who have
     access to corporate APNs, and users who have been allocated a revenue generating data bundle during the month. A user is defined as being active if they are paying a
     contractual monthly fee for this service or have used the service during the reported month. Three month active.
(3.) M-Pesa customers are based on the number of unique customers who have generated revenue related to M-Pesa during the last month.
(4.) Minutes of use (MOU) per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly customers during the period.
(5.) Total ARPU is calculated by dividing the average monthly service revenue by the average monthly customers during the period.


Safaricom key indicators

                                                                                 Year ended 31 March                     % change

                                                                               2018                  2017                   17/18

Customers(1) (thousand)                                                      29 570                28 134                     5.1
Data customers(2) (thousand)                                                 17 669                16 636                     6.2
M-Pesa customers(3)                                                          20 547                19 022                     8.0
ARPU(4) (local currency per month)                                            685.3                 641.3                     6.9

Notes:
(1.) A customer is defined as a Subscriber Identity Module (SIM), or in territories where SIMs do not exist, a unique mobile telephone number, which has access to the network for
     any purpose (including data only usage) except telemetric applications.
(2.) Data customers are based on the number of unique users generating billable data traffic during the month. Also included are users on integrated tariff plans, or who have
     access to corporate APNs, and users who have been allocated a revenue generating data bundle during the month. A user is defined as being active if they are paying a
     contractual monthly fee for this service or have used the service during the month reported.
(3.) Number of unique customers who have generated revenue related to M-Pesa in the past 30 days.
(4.) ARPU is calculated by dividing the average total service revenue by the average monthly customers during the period.

International financial review per country

                                                                                 Year ended 31 March                    % change

                                                                               2018                  2017                  17/18
Revenue (local currency)
Tanzania (TZSm)                                                             977 994               933 292                    4.8
DRC (USD000)(1)                                                             428 169               407 413                    5.1
Mozambique (MZNm)                                                            17 635                14 641                   20.4
Lesotho (LSLm)                                                                1 255                 1 116                   12.5

EBIT (local currency)
Tanzania (TZSm)                                                              96 895                97 260                   (0.4)
DRC (USD000)                                                                 12 578                12 664                   (0.7)
Mozambique (MZNm)                                                             4 158                 2 568                   61.9
Lesotho (LSLm)                                                                  475                   426                   11.5

Note:
(1.) During the 2nd quarter we reclassified the foreign exchange difference between USD and CDF sales to be netted off on the corresponding revenue line. The adjustment was
     USD11.4 million for Q1 and USD4.4 million for Q2. Q1 has not been restated for this change. This was partially offset by a refund of DRC sales tax (ICA) of USD9.9 million, in Q2.

Historical financial review
Revenue for the quarter ended

                                                                      31 March         31 Dec      30 Sept        30 June        31 March       31 Dec         30 Sept

Rm                                                                        2018           2017         2017           2017            2017         2016            2016

South Africa                                                            17 875         18 211       17 227         16 654          16 141       17 142          16 003
International                                                            4 167          4 719        4 334          4 240           3 985        4 316           4 429
Corporate and eliminations                                                (314)          (283)        (251)          (209)           (221)        (236)           (183)

Group revenue                                                           21 728         22 647       21 310         20 685          19 905       21 222          20 249

Revenue yoy % change for the quarter ended
                                                                                                         Reported                                             Normalised*

                                                                            31 March               31 Dec             30 Sept               30 June             31 March

%                                                                               2018                 2017                2017                  2017                 2018

South Africa                                                                    10.7                  6.2                 7.6                   7.8                 10.7
International                                                                    4.6                  9.3                (2.1)                 (8.2)                12.8
Corporate and eliminations                                                     (42.1)               (19.9)              (37.2)                (29.8)                 n/a

Group revenue                                                                    9.2                  6.7                 5.2                   3.9                 10.8

Service revenue for the quarter ended
                                                                      31 March          31 Dec      30 Sept        30 June        31 March      31 Dec          30 Sept

Rm                                                                        2018            2017         2017           2017            2017        2016             2016

South Africa                                                            13 891          14 061       13 547         13 123          13 198      13 410           13 037
International                                                            3 946           4 574        4 186          4 122           3 844       4 206            4 246
Corporate and eliminations                                                (261)           (233)        (177)          (147)           (167)       (173)            (121)

Group service revenue                                                   17 576          18 402       17 556         17 098          16 875      17 443           17 162

Historical financial review continued
Service revenue yoy % change for the quarter ended
                                                                                                         Reported                                             Normalised*

                                                                            31 March               31 Dec             30 Sept               30 June             31 March

%                                                                               2018                 2017                2017                  2017                 2018

South Africa                                                                     5.3                  4.9                 3.9                   5.6                  5.3
International                                                                    2.7                  8.7                (1.4)                 (8.0)                10.5
Corporate and eliminations                                                     (56.3)               (34.7)              (46.3)                (48.5)                 n/a

Group service revenue                                                            4.2                  5.5                 2.3                   1.7                  5.9

Exchange rates
                                                                                         Average YTD                                                  Closing

                                                                                 31 March                       % change                  31 March                       % change

                                                                             2018              2017                17/18              2018               2017               17/18

USD/ZAR                                                                     12.99             14.05                 (7.5)            11.85              13.40               (11.6)
ZAR/MZN                                                                      4.73              4.86                 (2.7)             5.24               5.03                 4.2
ZAR/TZS                                                                    172.92            156.77                 10.3            190.38             166.65                14.2
EUR/ZAR                                                                     15.19             15.43                 (1.6)            14.57              14.34                 1.6
ZAR/KES                                                                      7.95              7.27                  9.4              8.52               7.69                10.8


                                                                                      Average QTD                                        Closing QTD

                                                                     31 March      31 Dec      30 Sept      30 June    31 March       31 Dec      30 Sept      30 June

Rm                                                                       2018        2017         2017         2017        2018         2016         2016         2017

USD/ZAR                                                                 11.95       13.61        13.20        13.21       11.85        12.39        13.54        13.06
ZAR/MZN                                                                  5.10        4.45         4.63         4.74        5.24         4.76         4.52         4.60
ZAR/TZS                                                                187.90      164.71       169.75       169.33      190.38       179.99       165.77       171.50
EUR/ZAR                                                                 14.69       16.04        15.50        14.52       14.57        14.89        15.98        14.90
ZAR/KES                                                                  8.52        7.60         7.82         7.83        8.52         8.33         7.62         6.88

Historical key indicators
South Africa for the quarter ended
                                                                    31 March       31 Dec     30 Sept      30 June    31 March       31 Dec     30 Sept

                                                                        2018         2017        2017         2017        2017         2016        2016

Customers(1) (thousand)                                               41 635       41 602      40 000       39 381      37 131       36 375      35 685
Prepaid                                                               36 275       36 283      34 762       34 248      32 000       31 188      30 641
Contract                                                               5 360        5 319       5 238        5 133       5 131        5 187       5 044

Data customers(2) (thousand)                                          20 347       20 503      19 905       19 167      19 549       19 261      18 158

Internet of Things connections(3) (thousand)                           3 628        3 495       3 271        3 100       2 979        2 810       2 626

Traffic(4) (millions of minutes)                                      15 385       16 013      15 331       14 426      14 462       15 550      14 458
Outgoing                                                              13 101       13 612      12 976       12 109      12 105       13 158      12 062
Incoming                                                               2 284        2 401       2 355        2 317       2 357        2 392       2 396

MOU per month(5)                                                         124          131         128          125         131          145         136
Prepaid                                                                  113          120         118          115         122          138         127
Contract                                                                 199          202         199          190         190          187         192

Total ARPU(6) (rand per month)                                            99          102         101          103         109          114         112
Prepaid                                                                   57           59          58           58          61           64          63
Contract                                                                 381          393         391          393         401          414         415

Notes:
(1.) Customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a monthly fee that entitles
     them to use the service even if they do not actually use the service and those customers who are active whilst roaming.
(2.) Data customers are based on the number of unique users generating billable data traffic during the month. Also included are users on integrated tariff plans, or who have
     access to corporate APNs, and users who have been allocated a revenue generating data bundle during the month. A user is defined as being active if they are paying a
     contractual monthly fee for this service or have used the service during the reported month.
(3.) Internet of Things connections (IoT), is the remote wireless interchange between two or more predefined devices or a central station without direct relationship with an end
     customer, in order to support a specific business process or product.
(4.) Traffic comprises total traffic registered on Vodacom's mobile network, including bundled minutes, promotional minutes and outgoing international roaming calls, but
     excluding national roaming calls, incoming international roaming calls and calls to free services.
(5.) Minutes of use (MOU) per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly customers during the period.
(6.) Total ARPU is calculated by dividing the average monthly service revenue by the average monthly customers during the period. Prepaid and contract ARPU only include service
     revenue generated from Vodacom mobile customers.

International for the quarter ended
                                                                    31 March       31 Dec     30 Sept      30 June    31 March       31 Dec     30 Sept

                                                                        2018         2017        2017         2017        2017         2016        2016

Customers(1) (thousand)                                               32 194       32 012      31 092       29 936      29 655       28 794      27 918
Tanzania                                                              12 899       12 901      12 857       12 611      12 653       12 419      12 354
DRC                                                                   11 821       11 982      11 453       10 792      10 388        9 702       9 204
Mozambique                                                             6 108        5 712       5 421        5 147       5 146        5 208       4 987
Lesotho                                                                1 366        1 417       1 361        1 386       1 468        1 465       1 373

Data customers(2) (thousand)                                          16 573       16 013      14 755       13 807      12 997       12 620      11 965
Tanzania                                                               7 345        7 317       7 072        6 767       6 463        6 484       6 021
DRC                                                                    4 825        4 470       4 175        3 982       3 705        3 354       3 191
Mozambique                                                             3 730        3 501       2 904        2 470       2 280        2 196       2 236
Lesotho                                                                  673          725         604          588         549          586         517

MOU per month(3)
Tanzania                                                                 161          171         167          153         146          162         162
DRC                                                                       36           36          42           44          44           48          56
Mozambique                                                               144          152         144          130         130          122         123
Lesotho                                                                   83           92          86           81          79           90          81

30-day active M-Pesa customers(4) (thousand)                          11 757       11 117      10 755       10 089       9 963        8 848       8 508
Tanzania                                                               6 369        6 266       6 189        5 934       6 198        5 555       5 541
DRC                                                                    1 891        1 600       1 613        1 494       1 423        1 203       1 082
Mozambique                                                             3 109        2 908       2 625        2 343       2 029        1 804       1 637
Lesotho                                                                  388          343         328          318         313          286         248

Total ARPU(5) (rand per month)
Tanzania                                                                  31           39          37           35          34           40          40
DRC                                                                       34           39          37           42          37           48          56
Mozambique                                                                47           57          53           48          40           41          44
Lesotho                                                                   71           77          69           64          54           66          63

Total ARPU(5) (local currency per month)
Tanzania (TZS)                                                         5 734        6 369       6 295        5 946       5 674        6 279       6 187
DRC (USD)                                                                2.9          2.9         2.8          3.2         2.8          3.4         3.9
Mozambique (MZN)                                                         238          253         244          228         209          223         223

Notes:
(1.) Customers are based on the total number of mobile customers using any service during the last three months. This includes customers paying a monthly fee that entitles
     them to use the service even if they do not actually use the service and those customers who are active whilst roaming.
(2.) Data customers are based on the number of unique users generating billable data traffic during the month. Also included are users on integrated tariff plans, or who have
     access to corporate APNs, and users who have been allocated a revenue generating data bundle during the month. A user is defined as being active if they are paying a
     contractual monthly fee for this service or have used the service during the reported month.
(3.) Minutes of use (MOU) per month is calculated by dividing the average monthly minutes (traffic) during the period by the average monthly customers during the period.
(4.) M-Pesa customers are based on the number of unique customers who have generated revenue related to M-Pesa during the last month.
(5.) Total ARPU is calculated by dividing the average monthly service revenue by the average monthly active customers during the period. Prepaid and contract ARPU only include
     service revenue generated from Vodacom mobile customers.


Pro-forma financial information

The presentation of the pro-forma financial information and related reconciliations as detailed below is the responsibility of the directors of Vodacom Group Limited.
The purpose of presenting normalised growth is to assist the user in understanding the underlying growth trends in these segments, while the presentation of operating free cash
flow and free cash flow is to provide users with relevant information and measures used by the Group to assess performance. It has been prepared for illustrative purposes only and
may not fairly present the financial position, changes in equity, and results of operations or cash flows of Vodacom Group Limited. This pro-forma information has been reviewed
and reported on by the Group auditors, being PricewaterhouseCoopers Inc. Their unqualified reporting accountant's report thereon is available for inspection at the company's
registered address.

Reconciliation of normalised growth for the year ended

                                                                                                Foreign exchange

31 March 2018                                                               Reported(1)      Trading FX(2) Translation FX(3)     Merger and       Normalised*
%                                                                           % change               ppts              ppts       Acquisition         % change

Revenue
Group                                                                            6.3                  -               1.5                 -              7.8
International                                                                    0.6                  -               7.3                 -              7.9

Service revenue
Group                                                                            3.4                  -               1.7                 -              5.1
International                                                                    0.3                  -               7.1                 -              7.4

Data revenue
International                                                                   12.0                  -               6.7                 -             18.7

M-Pesa revenue
International                                                                   19.6                  -              10.8                 -             30.4

Total expenses
International                                                                   (2.3)               0.3               7.7                 -              5.7
South Africa                                                                    10.5                0.9                 -                 -             11.4

EBIT
Group                                                                            4.4               (1.7)              0.1                 -              2.8
International                                                                   27.2               (3.7)              3.0                 -             26.5

Operating profit
Group                                                                           11.5               (1.9)              0.2              (6.8)             3.0

Reconciliation of normalised growth for the year ended
                                                                                                 Foreign exchange

31 March 2018                                                                                   Trading       Translation        Merger and
Rm                                                                          Reported                 FX(2)             FX(3)    Acquisition      Normalised*

Revenue
Group                                                                         86 370                  -                 -                 -          86 370
International                                                                 17 460                  -                 -                 -          17 460

Service revenue
Group                                                                         70 632                  -                 -                 -          70 632
International                                                                 16 828                  -                 -                 -          16 828

Data revenue
International                                                                  2 429                  -                 -                 -           2 429

M-Pesa revenue
International                                                                  2 327                  -                 -                 -           2 327

Total expenses
International                                                                 12 557                (18)                -                 -          12 539
South Africa                                                                  41 912                 71                 -                 -          41 983

EBIT
Group                                                                         23 109                (56)                -                 -          23 053
International                                                                  2 096                 18                 -                 -           2 114

Operating profit
Group                                                                         24 252                (56)                -            (1 506)         22 690


                                                                                               Foreign exchange


31 March 2017                                                                                 Trading       Translation
Rm                                                                         Reported                FX(2)             FX(3)    Normalised*

Revenue
Group                                                                        81 278                 -            (1 166)          80 112
International                                                                17 350                 -            (1 166)          16 184

Service revenue
Group                                                                        68 286                 -            (1 103)          67 183
International                                                                16 775                 -            (1 103)          15 672

Data revenue
International                                                                 2 168                 -              (121)           2 047

M-Pesa revenue
International                                                                 1 945                 -              (160)           1 785

Total expenses
International                                                                12 853               (64)             (922)          11 867
South Africa                                                                 37 945              (250)                -           37 695

EBIT
Group                                                                        22 126               331               (40)          22 417
International                                                                 1 648                64               (40)           1 672

Operating profit
Group                                                                        21 750               331               (46)          22 035


Reconciliation of normalised growth for the quarter ended
31 March 2018                                                                              Translation
%                                                                           Reported(4)             FX(5)      Normalised*

Revenue
Group                                                                            9.2               1.6             10.8
International                                                                    4.6               8.2             12.8

Service revenue
Group                                                                            4.2               1.7              5.9
International                                                                    2.7               7.8             10.5

Reconciliation of normalised growth for the quarter ended
31 March 2018                                                                              Translation
Rm                                                                         Reported                 FX(5)   Normalised*

Revenue
Group                                                                        21 728                  -          21 728
International                                                                 4 167                  -           4 167

Service revenue
Group                                                                        17 576                  -          17 576
International                                                                 3 946                  -           3 946

Reconciliation of normalised growth for the quarter ended
31 March 2017                                                                             Translation
Rm                                                                         Reported                FX(5)    Normalised*

Revenue
Group                                                                        19 905              (291)          19 614
International                                                                 3 985              (291)           3 694

Service revenue
Group                                                                        16 875              (273)          16 602
International                                                                 3 844              (273)           3 571

The reconciliation presents normalised growth adjusted for trading foreign exchange gains/losses and at a constant currency (using current period as base) from on-going
operations.
Notes:
(1.) The reported percentage change relates to the year-on-year percentage growth. The Group's presentation currency is the South African rand. Our International operations
     utilise a number of functional currencies, for example the United States dollar, Tanzanian shilling, Mozambican metical, Nigerian naira and Zambian kwacha. The prevailing
     exchange rates for the current and comparative periods are disclosed above.
(2.) Trading foreign exchange (FX) are foreign exchange gains/losses on foreign denominated monetary assets and liabilities resulting from trading activities of entities within
     the Group.
(3.) Translation foreign exchange (FX) arises from the translation of the results, at average rates, of subsidiaries' functional currencies to Vodacom's presentation currency, being
     rand. The exchange variances are eliminated by applying the average rate for the year ended 31 March 2018 (which is derived by dividing the individual subsidiary's translated
     rand value with the functional currency for the period) to 31 March 2017 numbers, thereby giving a user a view of the performance which excludes exchange variances. The
     prevailing exchange rates for the current and comparative periods are disclosed above.
(4.) The reported percentage change relates to the quarter to date year-on-year percentage growth. The Group's presentation currency is the South African rand. Our International
     operations utilise a number of functional currencies, for example the United States dollar, Tanzanian shilling, Mozambican metical, Nigerian naira and Zambian kwacha. The
     prevailing exchange rates for the current and comparative periods are disclosed above.
(5.) Translation foreign exchange (FX) arises from the translation of the results, at average rates, of subsidiaries' functional currencies to Vodacom's presentation currency, being
     rand. The exchange variances are eliminated by applying the average rate for the quarter ended 31 March 2018 (which is derived by dividing the individual subsidiary's
     translated rand value with the functional currency for the period to the quarter ended 31 March 2018) numbers, thereby giving a user a view of the performance which
     excludes exchange variances. The prevailing exchange rates for the current and comparative periods are disclosed above.


Reconciliation of operating free cash flow and free cash flow
                                                                                 Year ended 31 March

Rm                                                                              2018              2017

Cash generated from operations(1)                                             32 299            31 791
Cash capital expenditure(2)                                                  (10 592)          (11 525)
Movement in amounts due to M-Pesa account holders(3)                            (590)             (711)

Operating free cash flow                                                      21 117            19 555
Tax paid1                                                                     (6 194)           (6 051)
Dividends received from associate(1)                                           1 988                 -
Finance income received1                                                         859               689
Finance costs paid(1)                                                         (3 182)           (2 699)
Net dividends paid(1)                                                           (393)              (91)

Free cash flow                                                                14 195            11 403

The reconciliation presents the reconciliation of cash generated from operators to free cash flow. Free cash flow excludes the movement in amounts due to M-Pesa account
holders, and held on their behalf. Management excludes these balances to present a view of the true commercial cash conversion in the operation.
Notes:
(1.) As per the condensed consolidated statement of cash flows.
(2.) Cash capital expenditure as per the condensed consolidated statement of cash flows, excluding capital expenditure of license and spectrum fee of (R46 million)
     (2017: R91 million).
(3.) Movements included in cash generated from operations relate to money held on behalf of M-Pesa customers.

Corporate information

Additional financial and operational measures
This announcement contains certain financial (i.e. service revenue, enterprise service revenue, EBITDA and EBIT) and operational (i.e. customers, ARPUs and number of employees)
measures which are presented in addition to the financial information disclosed in the preliminary condensed consolidated financial statements and the audited financial
statements for the year ended 31 March 2018 which have been prepared in terms of IFRS. 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 preliminary condensed consolidated financial statements and the audited financial statements for the
year ended 31 March 2018. The financial measures have been extracted from the management accounts upon which the preliminary condensed consolidated financial statements
and the audited financial statements for the year ended 31 March 2018 are based. Refer above for details relating to service revenue, EBIT and headline earnings per share
and the supplementary information on pages above for a reconciliation thereof to the reported results included in this announcement.

Trademarks

Vodafone, the Vodafone logo, M-PESA, Connected Farmer, Vodafone Supernet, Vodafone Mobile Broadband, Vodafone WebBox, Vodafone Passport, Vodafone live!, Power to You,
Vodacom, 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 announcement which sets out the annual results for Vodacom Group Limited for the year ended 31 March 2018 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.

Directors

PJ Moleketi (Chairman), MS Aziz Joosub (CEO),
T Streichert (CFO)(1), V Badrinath(2), DH Brown, M Joseph(3), BP Mabelane, SJ Macozoma, TM Mokgosi-Mwantembe, JWL Otty(4), M Pieters(5), RAW Schellekens(5)
1. German 2. French 3. American 4. British 5. Dutch

Registered office
Vodacom Corporate Park,
082 Vodacom Boulevard,
Midrand 1685
(Private Bag X9904, Sandton 2146)

Transfer secretary
Computershare Investor Services (Proprietary) Limited
(Registration number 2004/003647/07)
Rosebank Towers
15 Biermann Avenue
Rosebank 2196
South Africa
(PO Box 61051, Marshalltown 2107, South Africa)

Sponsor
UBS South Africa (Pty) Limited
ADR depository bank
Deutsche Bank Trust Company Americas

Company secretary
SF Linford

Media relations
Byron Kennedy

Investor relations
Shaun van Biljon

Date: 14/05/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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