Vodacom Group (OTCPK:VDMC.Y) Earnings Call Presentation

Transaction Overview - Vodacom Group intends to acquire a 15% stake in Safaricom PLC from the Government of Kenya (GOK) and a 5% stake from Vodafone Plc, increasing Vodacom's shareholding to 55%[19] - The price is KES 34 per share for 80 billion shares in Safaricom, totaling ZAR 36 billion, which will be debt-funded[11] - Deloitte has provided an independent fairness opinion on the transaction, which is expected to be completed in the first quarter of calendar year 2026[12] Safaricom Key Metrics - Safaricom has a population footprint of 190 million and 62 million customers[13] - The company boasts over 110 million daily M-Pesa transactions and a revenue CAGR of 10% from FY21-25[13] - Safaricom's EBITDA margin is 49.5%, with 57.3% in Kenya, and it has a net debt to EBITDA ratio of 0.38x[13] - Annualized EBITDA for the six months ended 30 September 2025 is $16 billion[13] Financial Performance & Impact - Safaricom has invested KES 18 billion over five years in education, health, environment, and economic empowerment, impacting over 13 million lives[15] - M-Pesa is the largest revenue component, with service revenue progression showing an 18% CAGR from FY21-25[15] - Vodacom's average cost for the 549% stake is KES 28/share, implying a FY26 EV/EBITDA multiple of 58x[19] Vodacom Group Impact - Vodacom will have 95 million financial services customers, extending its leading fintech position[25] - The combined Vodacom and Safaricom revenue is ZAR 2200 billion, with service revenue at ZAR 1871 billion and financial services revenue at ZAR 405 billion[25] - The illustrative EBITDA split for Vodacom plus Safaricom shows South Africa contributing approximately 45%, Egypt 31%, and International Business (IB) 19%[25]