Louise Radcliffe's questions to Vodacom Group Ltd / ADR (VDMCY) leadership • Q4 2023
Question
Louise Radcliffe of Investec asked how Vodacom's network is prepared to handle load-shedding beyond Stage 6 and a total grid failure, how this affects CapEx replacement cycles, and what specific cost-saving initiatives are being targeted to keep expense growth below inflation.
Answer
CFO Raisibe Morathi explained that ongoing investment in battery capacity (4-8 hours) and generators should manage the situation within the existing 13-14.5% CapEx intensity guidance, aided by network sharing. She detailed cost initiatives including renegotiating supplier contracts, digitizing processes with RPA, moving FX-denominated spend to local currency, and continuing the 'fit for growth' program.