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  • Vodafone Group Plc Results

    21 July 2017

    For the quarter ended 30 June 2017

  • By reading these slides you agree to be bound by the following conditions.

    Information in the following presentation relating to the price at which

    relevant investments have been bought or sold in the past or the yield on

    such investments cannot be relied upon as a guide to the future

    performance of such investments. This presentation does not constitute

    an offering of securities or otherwise constitute an invitation or

    inducement to any person to underwrite, subscribe for or otherwise

    acquire or dispose of securities in any company within the Vodafone

    Group.

    No person is under any obligation to update, complete, revise or keep

    current the information contained in this presentation.

    The presentation contains forward-looking statements, including within

    the meaning of the US Private Securities Litigation Reform Act of 1995,

    which are subject to risks and uncertainties because they relate to future

    events. These forward-looking statements include, without limitation,

    statements in relation to the Vodafone Groups financial outlook and

    future performance. Some of the factors which may cause actual results

    to differ from these forward-looking statements are discussed on the final

    slide of the presentation.

    Disclaimer

    2

    The presentation also contains non-GAAP financial information which the

    Vodafone Groups management believes is valuable in understanding the

    performance of the Vodafone Group or the Vodafone Groups businesses.

    However, non-GAAP information is not uniformly defined by all companies

    and therefore it may not be comparable with similarly titled measures

    disclosed by other companies, including those in the Vodafone Groups

    industry. Although these measures are important in the assessment and

    management of the business, they should not be viewed in isolation or as

    replacements for, but rather as complementary to, the comparable GAAP

    measures

    Vodafone, the Vodafone Speech Mark, the Vodafone Portrait, Vodacom,

    RED, Vodafone One Net, Vodafone One and M-Pesa are trademarks of the

    Vodafone Group. The Vodafone Rhombus is a registered design of the

    Vodafone Group. Other product and company names mentioned herein

    may be the trademarks of their respective owners.

  • Q1 17/18 highlights

    3

    Maintaining

    growth

    momentum

    2.2%Group service revenue growth to

    markets as consumer NPS co/leader

    Strong data

    growth

    Fastest growing

    fixed broadband

    provider

    63%growth inmobile data traffic

    300kfixed broadbandnet adds

    Leveraging scale

    and reach in

    Enterprise

    1.5%Enterprise revenue growth

    Clear NPS

    leadership

    Leading

    network

    92%4G coverage1

    19/21

    All growth rates in this document are organic unless otherwise stated, and are shown on a year on year basis, with Vodafone India and Vodafone Netherlands excluded from organic growth calculations

    1. Europe

    60%NGN coverage1

    10.3bn

  • Trading update

    Group Chief Financial officerNick Read

  • 0.5

    1.2

    0.8

    0.7 (0.7)

    (0.3)

    2.2

    Europe consumer

    mobile

    AMAP consumer

    mobile

    Consumer

    fixed line

    Enterprise EU regulation Carrier, wholesale

    and other

    Q1 17/18

    All three growth engines contributing

    51. Excludes the impact of EU regulation. This is defined as out-of-bundle roaming declines and mobile termination rate changes

    2. Other includes mobile and fixed wholesale, common functions and eliminations

    Mobile Data Convergence Enterprise

    Q1 17 /18 organic service revenue growth contribution YoY (pp)

  • Good commercial performance

    6

    Group service revenue growth YoY (%)

    1.72.0 2.1

    1.5

    2.2

    0.3

    1.00.7

    0.10.8

    1.3

    1.91.5

    1.3

    1.8

    8.4 8.17.4

    6.8

    7.9

    Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    Q1 17/18 drivers:

    Easier service revenue comparison vs. Q4 and underlying momentum improving

    Sustained customer growth in large markets, slower growth in Ghana, Hungary, Turkey

    Peak roaming impact in Q2, tougher comparison in Italy

    Customer net adds2 (000s)

    789735

    801

    576 566

    331 307

    417 415

    300

    Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    Mobile contract

    Fixed broadband

    Group

    Europe

    Europe ex. regulation1

    AMAP

    1. Excludes the impact of EU regulation. This is defined as out-of-bundle roaming declines and mobile termination rate changes

    2. Excludes Vodafone Netherlands and VodafoneZiggo in all periods

  • Mobilecontract

    BroadbandMobile

    totalBroadband

    Mobilecontract

    Broadband

    Key markets: Europe

    7

    Customer net additions(000s)

    Service revenue growth (%)

    8

    84

    Q1 16/17 Q1 17/18

    Germany Italy SpainUK

    108100

    Q1 16/17 Q1 17/18

    Mobilecontract

    Broadband

    (318)

    (187)

    Q1 16/17 Q1 17/18

    46

    58

    Q1 16/17 Q1 17/18

    5355

    Q1 16/17 Q1 17/18

    1

    15

    Q1 16/17 Q1 17/18

    26

    331

    Q1 16/17 Q1 17/18

    28 29

    Q1 16/17 Q1 17/18

    2.2

    3.0 2.83.2

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    (2.1)

    (3.2)

    (4.8)

    (2.7)

    (2.2)

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    0.0 0.8 1.31.6

    3.5

    4.13.8

    3.0

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    Reported Ex. Handset Financing

    3.1

    1.8

    1.20.6

    3.7

    2.5 2.62.0

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    Reported Ex. regulation2 Reported Ex. Handset Financing

    1. Excludes the phasing out of the Talkmobile brand. Reported mobile contract net adds in Q1 17/18 -2k

    2. Excludes the impact of EU regulation. This is defined as out-of-bundle roaming declines and mobile termination rate changes

    Reported

  • Key markets: AMAP

    8

    Customer net additions(000s)

    Service revenue growth (%)

    South AfricaVodacom International

    Turkey Egypt

    5.6 5.6 5.6 5.6

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    15.7 15.0 13.9 13.9

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    15.1

    19.6

    22.824.6

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    2.6 1.90.5

    7.9

    Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    Mobilecontract

    Mobileprepaid

    Mobilecontract

    BroadbandMobile

    contractMobileprepaid

    51

    2

    Q1 16/17 Q1 17/18

    891

    2,486

    Q1 16/17 Q1 17/18

    Mobilecontract

    Mobileprepaid

    345286

    Q1 16/17 Q1 17/18

    61

    31

    Q1 16/17 Q1 17/18

    19

    97

    Q1 16/17 Q1 17/18

    519

    790

    Q1 16/17 Q1 17/18

    1113

    Q1 16/17 Q1 17/18

    (416)

    268

    Q1 16/17 Q1 17/18

  • 114 112105

    98 98

    Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    184.6 185.2 189.0 193.4 196.3

    69.7 69.6 65.0 66.9 69.2

    Q1 16/17 Q2 16/17 Q3 16/17 Q4 16/17 Q1 17/18

    India: signs of stabilisation

    Users and ARPU growth

    Prepaid customers (m)

    Continued significant decline in voice and data unitary

    pricing, down 32% and 67% respectively

    Retaining high-end users with larger data bundles; gaining

    low-end share

    Smaller players losing RMS1 in Q4 (-3.4pp YoY to 26.2%)

    Investment focus on leadership circles; gaining RMS in Q4

    (+1.1pp YoY)

    Capital additions mix in FY 16/17

    82

    18

    Leadership circles 20% capital intensity in FY 16/17,

    high teens outlook for FY 17/18

    YoY growth %

    Service revenue (INR bn)

    (%)

    6.4 5.4 (1.9) (11.5) (13.9)

    (1.9) (4.8) (9.3) (10.7) +0.3

    Data users (m)

    Prepaid ARPU growth (% QoQ)

    1. Revenue market share

    Other circles

    9

  • Strategic progress

    Group Chief ExecutiveVittorio Colao

  • Monetising our leading customer experience

    11

    (2)

    2 4 4

    11

    14

    1715

    FY 14/15 FY 15/16 FY 16/17 Q1 17/18

    Gap to next best

    Gap to third

    Consumer NPS (points)1

    1. Gap to next best based on 21 markets, gap to third based on 20 markets

    2. Consumer prepaid

    3. Adjusted for out-of-bundle roaming declines, mobile termination rate changes and handset financing where applicable

    Best/co-best data network in

    14/21 markets

    Further opportunities from leveraging

    data analytics capability

    Reported ARPU is suppressed by MTR

    cuts, SIM-only/handset financing and

    roaming regulation

    +2

    Extra 1 - 5GB

    Data rollover

    Mobile +2

    Convergent +3

    Extra 6 - 10GB

    +1 - 5

    Extra 1-3GB

    Flexible upgrades

    Personalised offers

    Market leading NPS Mobile ARPU stabilising More-for-more actions

    Germany

    Consumer contract ARPU(% change Q1 17/18 local currency)

    UKItaly2 Spain

    (0.9)

    0.7

    8.7 8.7

    (1.7)

    1.1

    (1.1)

    1.1

    Reported Underlying

    Typical changes, April 2017

  • Growth engines: mobile data

    12

    1. Includes 4G customers from India, JVs and associates

    2. Average monthly iPhone and Android smartphone data usage including India and Netherlands

    3. EU 4 markets: Video, social and music applications

    4. EU 8 markets

    4G customers (m)1