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  • Vodafone Group Plc Trading update

    4 February 2016

    For the three months ended 31 December 2015

  • 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 Group.

    The presentation contains forward-looking statements 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. 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

    The presentation also contains non-GAAP financial information

    which the Groups management believes is valuable in

    understanding the performance of the Group or the 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 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 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.

    2

  • Commercial review

    Group Chief Executive Vittorio Colao

  • All growth rates shown are organic unless otherwise stated 4

    All growth rates shown are organic unless otherwise stated

    1. Adjusting for inter-quarter timing differences

    Group service revenue +1.4%: sixth consecutive quarter of improvement

    Continued momentum in AMAP +6.5%, further recovery in Europe -0.6%

    Strong commercial progress: Europe mobile contract net adds 0.5m, Group fixed broadband

    customers +0.4m

    Enterprise revenue +2.6%1; continued growth in VGE and M2M

    Project Spring: 92% through mobile build; 4G coverage now 84% in Europe, AMAP build

    targets achieved. Customer experience targets met

    Continued data growth: volume +68%, 34.8m 4G customers (+4.7m)

    Marketing high speed broadband to 69m homes across Europe; 29m on own infrastructure

    Q3 15/16 highlights

  • 5

    5.6ppt

    7.6ppt

    2.0ppt

    (4.2)

    (1.5) (0.4)

    0.1 0.8 1.2

    1.4

    (8.2)

    (5.4)

    (3.5) (2.6)

    (1.5) (1.0) (0.6)

    4.5

    6.7 5.7 5.8 6.1

    6.7 6.5

    Q1 14/15 Q2 14/15 Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16

    Group Europe AMAP

    Delivering growth: 6th quarter of service revenue improvement Service revenue growth %

    Continued customer and data growth in AMAP

    8 out of 13 European markets back to growth

  • 10 16 19 24 28

    42 45

    54 62

    68

    Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16

    Europe 4G Emerging markets 3G

    6

    Delivering growth: engines of growth

    1. Adjusting for inter-quarter timing differences

    Mobile contract base Millions NGN fixed customers Millions

    Europe 4G & Emerging markets 3G customers Millions Enterprise service revenue growth %

    87 88

    90 91

    92

    Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16

    4.7 5.1 5.3

    5.6 6.0

    Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16

    (1.1)

    1.4 2.11

    2.41 2.61

    Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16

    +5m YoY +1.3m YoY

    +3.7ppt YoY +26m YoY

    +18m YoY

  • 7

    Project Spring: delivering leading network positions & data growth

    Italy: P3 test, Nov 2015 Points Spain: P3 test, Oct 2015 Points

    India: sites, Dec 20152 Germany: Connect tests, Nov 2015 UK, London: P3 test, Oct 2015 Points

    Download

    speeds (Mbps)

    319 265 223 268

    509 433

    352 398

    Vodafone Operator 2 Operator 3 Operator 4

    Voice Data

    338 317 316 218

    503 500 480

    393

    Vodafone Operator 2 Operator 3 Operator 4

    Voice Data

    177 175 115 135

    219 258

    184 154

    Vodafone Operator 2 Operator 3 Operator 4

    Voice Data

    219 164 220 199

    317 363 215 304

    Vodafone Operator 2 Operator 3 Operator 4

    Voice Data

    134 151 123 76 50 47

    47 77

    48 12

    15 12

    Vodafone Op 2 Op 3 Op 4 Op 5 Op 6

    2G 3G

    14.5

    6.7 5.6 4.5

    Vodacom Operator 2 Operator 3 Operator 4

    Points 000s

    1. Internal mobile drive trials

    South Africa:

    Atio test, Dec 20151

    Smartphone data usage: Europe >1GB, AMAP 0.7GB3

    3. Monthly average 2. Estimated data for operators 5 and 6

  • 11.8 12.0

    12.3 12.5

    13.0

    Q3

    14/15

    Q4

    14/15

    Q1

    15/16

    Q2

    15/16

    Q3

    15/16

    40 41

    62 66 69

    Q3

    14/15

    Q4

    14/15

    Q1

    15/16

    Q2

    15/16

    Q3

    15/16

    46% household coverage in Europe

    Of which 41% reached with own

    infrastructure

    Project Spring: supporting fixed / convergence growth

    8

    Record fixed broadband net adds

    6.0m NGN customers (+0.4m)

    Europe fixed revenue +3.7%; 26% of

    EU service revenue from fixed

    Vodafone Red One, Nov 2015

    2.8m customers take converged

    services

    9.5m TV customers (PY: 9.1m)

    TV offers in UK and Italy in 2016

    39% 42% 43% 45% 46%

    % NGN customers

    Expanding services Achieving scale Increasing reach

    Fixed/converged: recent launches Fixed broadband customers European homes marketed

    with high speed broadband

    Millions

    Vodafone broadband, Oct 2015

    Vodafone TV, Jan 2016

    Millions

    Vodafone One, Oct 2015

  • Expanding fixed services: enhancing consumer offers

    9

    Vodafone One TV

    Champions League

    and La Liga

    Launched Aug 2015

    1.0m TV users

    12 markets with mobile content offers

    Vodafone TV

    >100 TV & Radio

    channels

    Launched Jan 2016

    1Gbps fibre service to support TV

    7 markets now offer TV

    Instant 7 day catch up and wireless multi-room

    300k football subscribers

  • 10

    Project Spring: supporting Enterprise growth

    Continued growth Enabling Total Communications

    Organic service revenue growth IP-VPN reach: 65 countries and 259 PoPs3 %

    (1.1)

    1.4

    2.11 2.41

    2.61

    Q3 14/15 Q4 14/15 Q1 15/16 Q2 15/16 Q3 15/16

    Key wins Q3 15/16

    VGE

    Q3 revenue +5.8%1

    M2M Cloud & Hosting

    Q3 revenue +27.3%,

    connections 35.5m2 Q3 revenue +22.6%

    1. Adjusting for inter-quarter timing differences

    2. Restated to include all M2M connections activated and under customer ownership (Q2: 32.6m)

    3. Points of Presence

    Fixed

    28% of Enterprise revenue

    Fixed / Converged

    55% of total pipeline

    3.9m Vodafone One Net users in 12 markets

    Security

    Secure Internet now available in 180 countries

    28% of Group

    service revenue

  • Operational review

    Group Chief Financial Officer Nick Read

  • Mobile revenue -1.7% (Q2: -2.8%)

    Fixed revenue +1.7% (Q2: +0.0%)

    Enterprise revenue -3.2% (Q2: -3.9%);

    continued price competition

    Germany: improved commercial execution

    12

    1. December 2015

    2. Excluding migrations

    Leading voice quality in Connect test,

    dropped call rate -26% YoY to 0.46%1

    Channel mix improved YoY

    Consumer contract ARPU -3.9%

    (Q2: -4.8%); back book re-pricing easing

    KDG growth remains strong +7.0%

    (Q2 +7.0%); base +96k

    DSL net adds now positive +9k

    (Q2: -32k)2

    (1.8)

    (3.5)

    (1.2)

    Incl. KDG (1.8)

    Incl. KDG

    (0.4)

    Incl. KDG

    Q3

    14/15

    Q4

    14/15

    Q1

    15/16

    Q2

    15/16

    Q3

    15/16

    235

    137

    104

    245

    196

    Q3

    14/15

    Q4

    14/15

    Q1

    15/16

    Q2

    15/16

    Q3

    15/16

    101 93

    70 66

    105

    Q3

    14/15

    Q4

    14/15

    Q1

    15/16

    Q2

    15/16

    Q3

    15/16

    Fixed broadband net adds Mobile contract net adds Service revenue growth % 000s 000s

  • Mobile revenue +0.1% (Q2: -3.0%)

    Consumer prepaid ARPU +12.7%;

    strong adoption of Vodafone Exclusive

    Fixed revenue -2.5% (Q2: +3.5%);

    increased competitive pressures

    Italy: continued recovery in trends, mobile back to growth

    13

    Market leading voice and data

    network, 4G coverage 94%

    Strong data usage, +56%

    Aggressive promotional acquisition

    market

    Fibre build: 14k cabinets installed,

    3.0m homes passed

    Fibre customer base 211k (+64k QoQ)