Overview of the Group

Our mobile network covers a total population of approximately 182 million people in five countries: South Africa, Tanzania, the DRC, Lesotho and Mozambique. Vodacom’s presence in Africa was strengthened by the acquisition of Gateway, a leading provider of communications services to multi-national companies and telecommunications network operators. The Vodacom Group provides a wide range of communications products and services, including voice, messaging, broadband and data connectivity, and converged services. We launched Vodacom Business in 2008 to offer converged business network and related IT services to the enterprise market. Vodacom employs some 7 255 people and is headquartered in Midrand, South Africa.

Vodacom SA is South Africa’s largest mobile communications network operator by number of customers and revenue. Vodacom also has leading market positions in Tanzania, the DRC and Lesotho and is nearing the market share of the state-owned and largest operator in Mozambique.

Vodacom’s footprint in sub-Saharan Africa is strengthened by Gateway’s pan-African network and on-the-ground presence in 14 African countries.

Business segments consist of:

South Africa

Vodacom SA is the largest mobile network operator in South Africa with an estimated 53% market share as at 31 March 2009. Vodacom SA had 27.6 million customers as at 31 March 2009, or 69.7% of the Group’s customer base. Vodacom SA contributed 86.0% to group revenue and 94.7% to group operating profit for the year ended 31 March 2009.

International

Vodacom owns mobile network operations in Tanzania, the DRC, Mozambique and Lesotho, with a combined 12.0 million customers. The international operations cover a total population of approximately 134 million, which have a blended mobile penetration rate of less than 25%. The international operations contributed 30.3% to group customers as at 31 March 2009.

Gateway

Gateway is Africa’s largest provider of satellite and terrestrial network infrastructure and interconnection services for African and international telecommunications companies. Gateway also provides an extensive range of high quality, end-to-end connectivity solutions to multinational corporations operating across Africa. Gateway services customers in 40 countries.

The Vodafone Advantage

Vodafone has a significant global presence, with equity interests in 31 countries and over 40 partner networks worldwide. Vodafone is organised in three geographic regions – Europe, Africa and Central Europe; Asia Pacific and Middle East; and Verizon Wireless in the US.

The benefits of being a subsidiary of Vodafone are central to Vodacom’s value proposition and growth strategy, and include:

• Shared communications expertise and experience;
• Access to world-class research and product innovation;
• Procurement savings through global economies of scale;
• Benchmarking operations against global standards of excellence; and
• Powerful brand association.

Vodacom will be Vodafone’s exclusive investment vehicle in sub-Saharan Africa.

Vodafone’s Competitive Position

Vodafone has three key attributes which strongly differentiate it from its competitors:

• Its scale in technology, which allows network and IT savings through consolidation and centralisation of core activities;
• Its strong presence in the enterprise market, among large corporates as well as small and medium sized businesses; and
• Its brand, recently rated in the top ten leading global brands.