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Five-year review

31 March   Notes
2010
 2009 2008 2007 2006 Compound
growth %
Summarised income statement
 19  
Revenue Rm 1
58 535
 55 442 48 334 41 266 34 168 14.4
Mobile data revenue Rm
4 498
 3 411 2 162 158 – n/a
Operating profit Rm 2, 5
11 238
 12 005 12 491 10 860 8 866 6.1
Net finance charges Rm 3
(2 272)
 (1 749) (424) (463) (639) 37.3
Profit before tax Rm
8 945
 10 237 12 067 10 396 8 227 2.1
Taxation Rm 4
(4 745)
 (4 045) (4 109) (3 836) (3 084) 11.4
Net profit attributable to non-controlling interests Rm
4
 103 147 218 117 (57.0)
Net profit attributable to equity shareholders Rm
4 196
 6 089 7 811 6 342 5 026 (4.4)
EBITDA Rm 5
19 782
 18 196 16 463 14 227 11 809 13.8
Summarised statement of financial position
 19  
Non-current assets Rm 6
29 131
 35 224 24 468 20 844 16 079 16.0
Current assets Rm
12 560
 12 135 9 707 7 626 8 689 9.6
Total assets Rm
41 691
 47 359 34 175 28 470 24 768 13.9
Total equity Rm
14 636
 15 098 11 806 9 647 8 672 14.0
Non-current liabilities Rm
11 590
 10 430 4 787 3 812 2 237 50.9
Current liabilities Rm
15 465
 21 831 17 582 15 011 13 859 2.8
Net debt Rm 7
12 161
 17 537 8 663 5 653 3 507 36.5
Capital expenditure Rm
6 636
 6 906 5 916 6 748 5 138 6.6
Summarised statement of cash flows
 19  
Cash generated from operations Rm
19 711
 15 905 16 022 13 528 11 252 15.0
Tax paid Rm
(4 764)
 (4 123) (4 721) (3 303) (2 980) 12.4
Net cash flows from operating activities Rm 8, 9, 10
14 947
 11 782 11 301 10 225 8 272 15.9
Net cash flows utilised in investing activities Rm 9
(6 329)
 (12 646) (7 431) (6 542) (4 667) 7.9
Net cash flows (utilised in)/from financing activities Rm 8, 10, 11
(8 548)
 1 171 (3 013) (5 609) (4 002) 20.9
Net increase/(decrease) in cash and cash equivalents Rm
70
 307 857 (1 926) (397) n/a
Cash and cash equivalents at the end of the year Rm
951
 1 084 837 (108) 1 760 (14.3)
Performance per ordinary share
 19  
Basic earnings per share cents 12
282
 409 525 426 338 (4.4)
Headline earnings per share cents
510
 417 528 426 331 11.4
Diluted headline earnings per share cents
509
 417 528 426 331 11.4
Net asset value per share cents
985
 1 015 793 648 583 14.0
Dividends per share cents
110
 350 399 363 302 (22.3)
Profitability and returns
 19  
EBITDA margin % 5
33.8
 32.8 34.1 34.5 34.6
Operating profit margin % 2
19.2
 21.7 25.8 26.3 25.9
Effective tax rate % 4
53.0
 39.5 34.1 36.9 37.5
Net profit margin %
7.2
 11.2 16.5 15.9 15.0
Return on equity % 13
30.2
 47.9 75.0 71.2 62.2
Return on capital employed % 14
43.4
 70.7 85.5 77.6 65.7
Liquidity and debt leverage
  
Interest cover times 15
6.6
 8.0 18.7 29.2 34.0
Net debt to EBITDA times
0.6
 1.0 0.5 0.4 0.3
Current ratio times 16
0.8
 0.6 0.6 0.5 0.6
Quick ratio times 17
0.8
 0.5 0.5 0.5 0.6
Operating information
 19  
South Africa  
Closing customer base thousand
26 262
 27 625 24 821 23 004 19 162 8.2
EBITDA margin %
36.8
 34.0 34.4 34.9 35.4
Capital intensity %
9.1
 9.7 9.9 13.3 13.9
Headcount of employees
5 059
 4 930 4 504 4 388 4 148 5.1
International  
Closing customer base thousand
13 630
 11 989 9 173 7 146 4 358 33.0
EBITDA margin %
15.9
 25.8 28.6 29.7 25.6
Capital intensity %
34.9
 33.9 28.1 37.9 24.8
Headcount of employees
1 634
 1 636 1 540 1 347 1 154 9.1
Gateway 18  
EBITDA margin %
6.9
 12.4 n/a n/a n/a
Capital intensity %
4.2
 1.7 n/a n/a n/a
Headcount of employees    
384
 389 n/a n/a n/a  
Notes:
1. Revenue has been restated to include other operating income. 
2. Operating profit and the operating profit margin in 2010 were impacted by impairment losses of R3 370 million. The prior year was impacted by the BBBEE charge of R1 315 million. 
3. Net finance charges in 2010 were negatively affected by the remeasurement of loans granted of R375 million and a loss of R396 million mainly relating to forward exchange contracts. 
4. The effective tax rate increased to 53.0% in 2010 mainly as a result of non-deductible impairment losses of R3 370 million and unrecognised deferred tax assets. 
5. The Group prospectively aligned its presentation of foreign exchange gains and losses on the revaluation of foreign-denominated trading items with that of its parent by including a gain of R192 million in operating expenses. EBITDA is earnings before interest, taxation, depreciation, amortisation, impairment losses, BBBEE charges, profit/loss on disposal of property, plant and equipment, investment properties, intangible assets and investments. 
6. Property, plant and equipment and intangible assets were negatively impacted by foreign currency adjustments of R1.9 billion and R1.7 billion respectively, due to the rand strengthening against functional reporting currencies of the international markets since 31 March 2009. 
7. From 31 March 2010 dividends and STC payable will no longer form part of net debt. 
8. Dividends paid were previously classified in cash flows from operating activities and are now included in cash flows utilised in financing activities. 
9. Finance income was reclassified to investing activities. 
10. Finance costs were reclassified to financing activities.
11. Net cash flow utilised in financing activities included the repayment of the R3.0 billion short-term facility raised for the Gateway acquisition and new local debt raised to refinance the US$180 million loan in the DRC. 
12. Earnings per share for the year was impacted by the impairment losses, remeasurement of loans and the reversal of the DRC's deferred tax asset. 
13. Return on equity is calculated by dividing net profit (excluding non-controlling interests) by average shareholders' equity. 
14. Return on capital employed is calculated by dividing net profit by the average net assets less average goodwill. 
15. Interest cover ratio is equal to earnings before interest and tax for the year divided by interest expenses for the year. 
16. The current ratio is calculated by dividing current assets by current liabilities. 
17. The quick ratio is calculated by dividing the current assets excluding inventory by current liabilities. 
18. Gateway was consolidated for only three months in 2009.
19. Reclassifications as detailed in Note 23 to the consolidated annual financial statements have been applied retrospectively so as to align with practices of the Group's parent, Vodafone Group Plc. 
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