Vodacom Group Limited · JSE:VOD
Vodacom — Merger or Acquisition (May 2017)
14 slides from Vodacom's merger presentation, May 2017
Slide 1: Safaricom acquisition Investor presentation
Safaricom acquisition Investor presentation May 2017
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated (‘relevant persons’). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the f
Slide 3: Transaction summary
Transaction summary • Vodafone currently holds a 40% interest in Safaricom through a wholly-owned subsidiary, Vodafone Kenya Ltd (‘VKL’) Overview • Vodacom has agreed to acquire an 87.5% interest in VKL, representing a 35% interest in Safaricom • 1.62x Vodacom shares per 100 Safaricom shares1, repre
Slide 4: Rationale | Strategic investment in a quality asset
Rationale | Strategic investment in a quality asset • Market leader in the dynamic high growth Kenyan market Premier telecom • State of the art infrastructure and spectrum portfolio operator in East Africa • M-Pesa is the best in class mobile money platform • Upside potential from nascent fiber oppo
Slide 5: Vodacom Group | Presence in Africa
Vodacom Group | Presence in Africa DRC Kenya – Safaricom Ownership 51% Ownership 35% Active customers1 10.4m Active customers1 28.1m Market Position 1st Market Position 1st Lesotho Tanzania Ownership 80% Ownership 82.2% Active customers1 1.5m Active customers1 12.7m Market Position 1st Market Positi
Slide 6: Kenya | Market overview opportunity
Kenya | Market overview opportunity Mobile Telecom Market share1 Kenyan macro environment (2016)3 • Population of 45m 18% • GDP per capita of US$ 1 516 vs US$ 5 261 for 71% 7% South Africa 4% • 6.0% real GDP growth and 6.3% inflation M-Pesa Market Share2 Kenyan telecom market (2016) • 39m mobile cus
Slide 7: Safaricom | The premier East African telecom business
Safaricom | The premier East African telecom business Key Business Highlights FY2017A Service Revenue Split • Pioneer in mobile money 3% 2% – 79%1 of mobile customers using M-Pesa – c.19m active customers1 8% • Well invested network infrastructure and spectrum portfolio 14% – Mobile coverage: 2G: 95
Slide 8: Safaricom | Strong performance indicators
Safaricom | Strong performance indicators Total customers (m) M-Pesa customers1 (m) +8.1% +15.9% 5yr CAGR 5yr CAGR 25.2 28.1 16.6 19.0 21.6 23.3 19.1 19.4 13.9 12.2 9.1 10.5 2012A 2013A 2014A 2015A 2016A 2017A 2012A 2013A 2014A 2015A 2016A 2017A Capex (KES’bn) +6.5% Total ARPU (Kshs) +6.6% 5yr CAGR
Slide 9: Safaricom | Strong financial performance
Safaricom | Strong financial performance Revenue (KES’bn) EBITDA (KES’bn) +14.8% +22.5% 5yr CAGR 5yr CAGR 103.6 195.7 212.9 83.1 144.7 163.4 71.2 124.3 60.9 107.0 49.2 37.5 42.1% 43.6% 44.5% 48.1% 35.0% 39.6% 2012A 2013A 2014A 2015A 2016A 2017A 2012A 2013A 2014A 2015A 2016A 2017A Adjusted EBITDA mar
Slide 10: Diversify exposure | Complements growth strategy
Diversify exposure | Complements growth strategy The proposed transaction is to be equity accounted in the Vodacom Group financial statements. The below charts are an illustrative contribution based on our proportionate shareholding in Safaricom; in practice Safaricom will only be reported in the “p
Slide 11: Transaction structure
Transaction structure Vodafone will transfer part of its stake in Safaricom to Vodacom in exchange for newly issued shares Pre transaction Post transaction 65.0% 69.6% Vodafone Vodafone 100% 12.5% 87.5% VKL VKL 40% 40% 25% 35% 25% 35% Free float Govt. of Kenya Free float Govt. of Kenya Source: Compa
Slide 12: Timetable and key requirements
Timetable and key requirements Key Dates 05 July 15 August 16 August August Release of shareholder GM GM result announced Expected close circular Call for General meeting (GM) Key milestones and requirements • SARB approval • Ordinary resolution approving the transaction as a related party transacti
Slide 13: Contacts
Contacts Visit Our Website for More Information Contact us Investor relations: [email protected] Company Secretary: [email protected] http://www.vodacom.com/about-us/investors/investors-home 13
Slide 14: Thank you
Thank you Annual results | 31 March 2017 14