South African operations

Analyst presentation 2009 SiSocio-economiiic overview

Country snapshot Population

Millions ♦ ’s largest economy with well developed legal, financial, communications and natural resources industries ♦ Siggppnificant public expenditure ppgrogrammes , gggrowing middle class and robust banking system expected to support economy

♦ Government budget forecasts for GDP growth reduced to Sout 1.2%, the lowest since 1998 h ♦ Large official population boosted by significant oper African unregistered base of immigrant workers ♦ Elections scheduled for 2009 a GDP per capita Inflation tions

US$ %

42%4.2% CAGR

Source: EIU, StatsSA

Analyst presentation 2009 TlTelecoms mark ktet overvi ew

Mobile SIM penetration Fixed-line and broadband snapshot

At 31 December

♦ Fixed-line penetration (Dec -07): 84%8.4%

♦ PC penetration (Dec-07): 13.4% Sout

♦ Broadband penetration (Dec-08E): 2.8% h African oper African a tions

Estimated 70% people penetration

Analyst presentation 2009 Strong fi nanci al perf ormance

Revenue EBITDA

R million R million Sout h African oper African a tions

17. 3% 15.7% CAGR and 11.9% CAGR and 12.2% growth in H1 2009 growth in H1 2009

Analyst presentation 2009 CtidContinued growth thi in cust omers

Prepaid customers Contract customers

Thousands Thousands Sout h

8.3% 12.7% oper African year on year year on year growth to growth to December 2008 December 2008 a tions

Prepaid ARPU Contract ARPU

R R

Analyst presentation 2009 Strong growth i n d at a revenue d ri ven b y b roadb and

Broadband connectivity packages SA data revenue as a % of revenue

Thousands % of SA revenue Sout 12.3 h 10.9 oper African

8.4 a tions

6.1

FY 2006 FY 2007 FY 2008 H1 2009

Analyst presentation 2009 LLdieading mark kthet shares i n voi ce and dbdbd broadband

Vodacom SA is the market leader in terms of mobile and broadband customers

Market share of mobile customers Market share of broadband customers

As at 30 September 2008 At 30 September 2008 1 1 Sout h African oper African

2 a 2 tions 5 3 4 3 4 % % 1. VdVodacom 39 1. 53 2. Telkom 36 2. MTN 34 3. MTN 15 3. Cell C 11 4. iBurst 6 4. Virgin Mobile 1 5. Other 4

Source: Company information, Vodacom estimates Source: My Broadband, November 2008, Vodacom estimates

Analyst presentation 2009 Bu ilding a b usi ness t o l ead

Vodacom SA is the market leader in terms of customers and revenue market share

Customer care Network Sout h African oper African

Products and services Supply

chain a customer management tions

Brand Distribution

Analyst presentation 2009 AhiA high qualit y net work with ithi improvi ng b roadb and coverage

The investment in network infrastructure and state-of-the-art technologies has enabled Vodacom to develop a leading market position in mobile voice and data

GSM/GPRS EDGE 3G Sout h African oper African

GPRS EDGE UMTS a tions

♦ Covers 98% of the SA population ♦ Covers 26% of the SA population ♦ Covers 27% of the SA population ♦ Data throughput of up 68 kb/s ♦ Data throughput of up to 236 kb/s ♦ Data throughput of up to 3.6 Mb/s

In addition to improving coverage, investments are being made to improve efficiency and quality ♦ Radio access network ♦ Softswitches ♦ Self-built transmission (microwave and fibre)

Analyst presentation 2009 AdiffA differenti at or i n suppl y ch ai n management

Vodacom has a state-of-the-art warehouse in Midrand that handles on overage more than 160,000 units per day, 98% of which are delivered within 48 hours to major centres

SA handset sales

Units (millions)

5.2 Sout 4.7 h African oper African

3.9 a tions

2.5 2.1

25.4% CAGR

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Analyst presentation 2009 EfftiEffective di ditibtistribution net work khl helps wi n sh are of wall lltet

Vodacom’s strategy is based on optimising the path to market across as broad a spectrum as possible, with more than 25,000 points of sale in

Channels

♦ Three service providers, with VSPC as the flagship service provider

♦ Distribution channels include Sout

– national chains/retail outlets h African oper African – informal channel comprising of street vendors – company and independently owned cellular dealer and franchise outlets a

– Vodacom Business, an extensive direct sales tions division within Vodacom – Vodacom’s call centre-based online and off- the-page selling division – Vodaworld, a unique one -stop mobile telecommunications mall – Community services operators

Analyst presentation 2009 BBdrand, mar ktidketing and sponsorshi p

A leading South African brand

♦ As voted for by Markinor—Sunday Times Top Brand survey – Number one telecommunications brand – Fourth overall favourite brand along-side Coca-Cola, SABMiller and Nike Sout h

– Fifth coolest brand in South Africa oper African ♦ Vodacom voted favourite advertiser – iconic “Meerkat” and entertaining “Lucky and George” commercials a ♦ Vodacom continues its evolution into a truly customer- tions centric brand

Sports teams Tournaments

♦ Springboks ♦ Vodacom Super 14 ♦ Bafana Bafana ♦ Vodacom Cup ♦ Vodacom Blue ♦ Vodacom Tri Nations ♦ Vodacom ♦ Vodacom Challenge ♦ Other prominent rugby and ♦ Vodacom July soccer teams

Analyst presentation 2009 BdBrand support tdbited by investment ti in empl oyees and communit y

Vodacom is considered one of the most favourable employers in South Africa due to its track record of human resources and community service initiatives

For our employees

♦ Equal opportunities ♦ International and domestic development opportunities - R70 million development expenditure Sout ♦ A wide range of job specific training programmes h ♦ Competitive compensation and other benefits oper African ♦ Budgeted well-being spend of R10 million in this financial year a For our communities tions

♦ The Vodacom Foundation gives effect to the Vodacom Group’s commitment of sharing the successes of the company with the communities in which it operates. ♦ Focus areas: - Education - Health - Security ♦ Total spend of R500 million since our inception, year to date spend of R70 million

Analyst presentation 2009 DliDeliver ing aff ffdblordable sol ltiutions

Vodacom continues to grow its customer base and prepaid ARPUs by delivering new affordable products Sout h African oper African a tions

Analyst presentation 2009 DliiDeveloping innovati tidttldithktve products to lead in the market

Continuing our legacy of first to market with products and services sustains our market leading position Sout h African oper African a tions

Analyst presentation 2009 DliDeliveri ng hi hihgh speed ddt data sol ltiutions

Vodacom is the largest provider of mobile broadband services in South Africa and is consistently bringing new products to market to entrench its leadership position Sout h African oper African a tions

Analyst presentation 2009 DliDeliveri ng new converged consumer sol ltiutions

New converged services provide an additional customer retention tool and can support ARPU growth

Online services

Media & Entertainment

Advertising Sout h

Financial oper African a tions

Analyst presentation 2009 TtdiTargeted campaign management

Vodacom’s campaign management system enables it to cost effectively target customers for the promotion of its innovative products and services

Customer lifecycle Stra ight Cautious Confident management Talkers Carers Communicators Sout h African oper African Cross selling and up selling a Status Steady Mobile tions Revenue generation Seekers Eddies Maniacs

Churn prevention

Analyst presentation 2009 CtCustomer care an dttid retention

Loyalty programmes and customer care are essential for effective churn management

Contract Prepaid

mes ♦ Onyx ♦ Talking points mm – 3,000 users – 3.4 million redemptions to date – redemption rate increased to 49.6% ♦ Platinum Sout

– 11,000 users ♦ Yebo millionaires h lty progra lty African oper African ♦ Credit card – 10.1 million unique users to date

Loya – 33,000 – 180 million SMSs received from launch – 1 million winners to date a tions Call centres Walk-in centres Vodacare

re ♦ Redesigggn of the existing ♦ Seven company owned, ♦ Vodacare specialises in aa customer care IVRs Vodacom customer care and cellular repairs data care centres ♦ Re-engineering agent skills ♦ 39 branches and franchises to a specialised single ♦ 10% year on year increase in in all major centres stomer c

uu skilled environment foot traffic in one-stop shops

C ♦ 100,000 repairs per month ♦ Answer 70% of calls in 20 sec ♦ Vodaworld has over one million visits per year

Analyst presentation 2009 Key c ha llenges and pri oriti es

Key challenges

♦ Economic climate and reducing consumer spending

♦ Increasinggp competition from new ECN licensees

♦ Changes in regulatory environment Sout h African oper African

Priorities a tions ♦ Focus on affordable solutions and adding value ♦ Further enhance network coverage and quality

♦ Democratise access to data communications

♦ Maximise synergy benefits between mobile operation, Gateway, and Vodacom Business

♦ FFttlocus on cost control

♦ Customer traction in Vodacom Business

Analyst presentation 2009 Q&A South African operations

Analyst presentation 2009