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Howwe sustain
value
Investing in the resources and
relationships impacting value.
Key resources
Key inputs
People, culture and governance
(Human and intellectual capital)
The technical and managerial skills, productivity and wellbeing of our people – coupled with a
company culture and governance systems that foster innovation and compliance – are critical to
our long-term success.
Investing in our people is one of the most significant costs to our business, impacting short-term
financial capital, but generating longer-term returns in all capital stocks. The anticipated changing
nature of work, and the increasing role of digital and Artificial Intelligence may result in some
pressure on certain traditional job functions.
7 554
employees.
R278 million
invested in
employee and leadership
training.
Strong global brand.
Quality relationships with key stakeholders
(Social and relationship capital)
A positive reputation and quality relationship with customers, regulators, investors, suppliers and
communities is the foundation of our ability to generate revenue.
We believe in maintaining strong relationships with all our stakeholders. We see our role in society
as positively contributing to societal issues like education, health and security. Investing in social
capital often requires short- and medium-term financial capital inputs, but generally generates
positive return across most capitals.
73.8 million
customers.
Informed engagement with
regulators.
Investor confidence.
Positive supplier relationship.
Trusted brand.
Network and IT infrastructure
(Manufactured capital)
Our network infrastructure, data centres, distribution infrastructure and software applications are an
important source of competitive differentiation.
Investing in building and maintaining this infrastructure requires significant financial capital, and
appropriate levels of human and intellectual capital, as well as certain natural capital inputs and
outcomes. Over the long term, the investments in manufactured capital typically generate net
positive outcomes.
20 139
base station sites.
South Africa
91.9%
,
International
87.5%
self-provided fibre and
microwave connections.
R11.6 billion
invested in
strengthening our networks
and IT infrastructure.
Financial capital
(Financial capital)
Which includes shareholders’ equity, debt and re-invested capital – is a critical input in executing
our business activities and in generating, accessing and deploying other forms of capital.
Balancing the short-term interests of investors with longer-term growth objectives, and with some
of the interests of other stakeholder groups, remains a critical objective and often involves
balancing certain trade-offs.
R263 billion
market
capitalisation.
0.6 times
net debt to EBITDA
ratio to execute growth.
R14.2 billion
free cash flow.
R703 million
interest earned.
R42 billion
investment in
Safaricom.
Natural resources
(Natural capital)
We require natural capital such as land and energy to deploy and operate our manufactured capital.
Accessing natural capital inputs diminish financial and natural capital over the shorter term.
Some environmental outcomes impact negatively on human and social capital.
Radio spectrum (700, 800,
900, 1 800, 2 100, 2 300,
2 600 MHz bands).
501 GWh
electricity
#
.
3 910 892 litres
of fuel
#
.
203 516 kl
of water
#
.
# South Africa only.
10
Vodacom Group Limited
Integrated report for the year ended 31 March 2018