Report boundary and scope
This report reviews Vodacom’s strategy and business
model, risks and opportunities, and operational and
governance performance, for the financial year
1 April 2017 to 31 March 2018. The report covers the
activities of the Vodacom Group and all our operating
subsidiaries. Financial and non-financial data from
our subsidiaries are fully consolidated. In assessing
the risks, opportunities and outcomes that materially
impact value creation we have looked beyond the
financial reporting boundary to provide for the
material interests of relevant stakeholders, and to
address the significant risks, opportunities and
impacts associated with our activities over the short
term (less than 12 months), medium term (one to
three years) and long term (beyond three years).
Reporting frameworks
Our reporting process has been guided by the
principles and requirements contained in the
International Financial Reporting Standards (IFRS), the
IIRC’s International Framework, the King Code on
Corporate Governance 2016 (King IV), the JSE Listings
Requirements, the South African Companies Act,
No 71 of 2008, and the GRI’s Sustainability Reporting
Standards. We have provided extracts from the
consolidated annual financial statements (AFS) in this
report. The full set of consolidated annual financial
statements (AFS), as well as a suite of additional
reports, are available online or can be requested from
our Company Secretary.
Materiality
This report provides information on all those matters
that we believe could substantively affect value
creation at Vodacom. The process of identifying and
prioritising the material matters for inclusion in this
report involved reviewing: Vodacom’s business model;
our interaction with the six capitals (financial,
manufactured, intellectual, human, social and
relationship, and natural); our operating environment;
and the interests of our key stakeholders as expressed
during our normal business engagements with them.
This report presents the identified material
information through a clearly structured narrative that:
reviews who we are and how we create value;
identifies those issues that have a significant impact
on value; and outlines our strategy and performance
in ensuring long-term value creation. Additional
information not material for this report, but of interest
for other purposes, is provided in our other reports and
on our website.
Integrated thinking
Integrated thinking is intrinsic to how we manage our
business and to our internal strategy development
and reporting practices. Our strategy and five
strategic pillars have been developed to ensure that
we manage the resources and relationships needed
to create value over time. A considered assessment of
the six capitals (as referred to in the IIRC’s <IR>
Framework) informed both our strategy and the
internal materiality process used to determine the
content and structure of this report. A review of our
interaction with the key resources and relationships
impacting value is presented here.
Combined assurance
We use a combined assurance model to provide
us with assurance obtained from management
and from internal and external assurance providers.
PricewaterhouseCoopers Inc. audited our
consolidated annual financial statements 2018 and
provided an unmodified opinion thereon. The extracts
from the AFS in this Integrated report are from
audited information, but are not themselves audited.
PricewaterhouseCoopers Inc. have undertaken a
limited assurance engagement on selected elements
of our Scope 1, 2 and 3 greenhouse gas emissions
that are reported in our Report of the Social and
Ethics Committee. Those indicators that have been
externally assured have been marked with a (^).
Our Audit, Risk and Compliance Committee provides
internal assurance to the Board on an annual basis on
the execution of the combined assurance plan. The
Group’s financial, operating, compliance and risk
management controls are assessed by the Group’s
internal audit function, which is overseen by the
Audit, Risk and Compliance Committee.
Board approval
As outlined at the front of this report, the Board has
applied its collective mind to the preparation and
presentation of the information in this report, which
has been guided by the IIRC’s International <IR>
Framework. The Board believes that this report
addresses all material issues and presents a balanced
and fair account of the Group’s performance for the
reporting period, as well as an accurate reflection of
our core strategic commitments for the short,
medium and long term. The Board approved the
Vodacom AFS and the Vodacom Integrated report
on 1 June 2018.
