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 Group’s 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 Group’s management believes is valuable in understanding the

performance of the Vodafone Group or the Vodafone Group’s 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 Group’s

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

mobile¹

AMAP consumer

mobile

Consumer

fixed line

Enterprise¹ EU regulation Carrier, wholesale

and other²

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 1.3 1.6

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 Underlying³

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

52.859.3

66.6

74.7

83.5

1.01.1

1.21.3

1.6

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

Average data usage (GB)2

Market context

4G /4G+

quality

exceeding

Wi-Fi

Compression

techniques

improving

~75%of mobile usage is still via Wi-Fi4

>50% reduction in traffic load at 480p

Desire for

worry-free

usage…

~60%of data usage is via video/ social apps3

Video demand

surging

68% 66% 63% 62% 63%

Data traffic growth

Group data usage is growing rapidly

+76% incl. Indiaand Netherlands

>60% of customers want worry-free plans

Music

Growth engines: mobile data - Vodafone Pass

13

Current markets

HungaryRomaniaItalySpain

An innovative pricing model, targeting ARPU accretion1

€3

Social&Chat

Free all summerthen €5

Video+ Vodafone TV

€10

Vodafone Pass: Italy

Greece

are easier to understandthan Bytes…

App categories

… ‘worry-free’ stimulates greater usage and customer satisfaction than data bundles…

… encouraginglow-spending users to trade up…

... and retaining spend by higher-end users

1. Allows customers to buy passes that give worry-free access to video, music and social/chat apps, without using up their data allowance

Market research insights

14

Growth engines: fixed/convergence

323 314

430467

384

196 182

243 256

122

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

Total NGN

On-net NGN

Europe NGN broadband net adds3

163Not covered

136Total incl’ ADSL and NGN

98

41

36

NGN wholesale

Own NGN network

Strategic wholesale

partnerships2

% of homes 22 25 60 83 100

(m)

Build progress:

• Open Fiber: 1.5m homes marketable/ 1.7m passed; C&D area wins

• New strategic partnership in Turkey, 2.7m homes marketable

• Exploring fibre build business cases with high IRR thresholds

Driving revenue:

• EU broadband base 16.8m, including 11.3m NGN1

• On-net penetration 27%1; off-net 2.7%

(000s)

1. Includes VodafoneZiggo as of Q4 16/17

2. Includes Telefonica (selected areas in Spain), Open Fiber (Italy) and Siro (Ireland)

3. Excludes Vodafone Netherlands and VodafoneZiggo

European homes marketable Q1 17/181

Excludes strategic

wholesale

15

Growth engines: fixed/convergence

0.4

0.1

0.5

0.5

0.6

2.3

4.4

Other

Europe

UK

Germany

Italy

Vodafone

Ziggo²

Spain

Europe

Fully converged customers and penetration of consumer broadband base

30%

8%

28%

26%

77%

88%

1. Last 12 months (Q216/17 to Q1 17/18). Excludes VodafoneZiggo

2. VodafoneZiggo stated as at 3 April 2017

Europe consumer converged customers (Q1 17/18) (000s) (m)Europe converged consumer net adds (LTM)1

• ~60% of European broadband net adds are converged

over the last 12 months

• On average 2 SIMs per customer

• Significant penetration potential

689Total Europe

220Spain

165Italy

93UK

195Germany

21%

0.6

3.6

1.5

Mobile Fixed Total

Growth engines: Enterprise

16

• Mobile: ARPU -3.7%, customers +3.8%;

IoT revenue +15%

• Fixed: share gains continue; led by IP-VPN

3

8 8

9

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

• Market leading position in IoT;

Internet in the car in 18 markets

(%)Service revenue growth Q1 17/18 Strong platforms (Points)Net Promoter Score

70%

Share of Enterprise revenue

100%30%

• NPS co/ lead in 13/20 markets

• Increasing focus on building a

digital business

75countries

IP-VPN

275 PoPs

IoT

59m SIMs+43%

Cloud &Hosting

28 countries

~2.5% ex. roaming regulation

Summary: a good start to the year

17

Robust commercial performance

Continued momentum in Europe; AMAP accelerated; India signs

of stabilisation

All three growth engines contributing:

Mobile data: Vodafone Pass – unlocking ‘worry-free’ data demand,

targeting ARPU accretion

Convergence: strong broadband growth, increasing convergence

penetration

Enterprise: continued outperformance vs. peers

‘Fit for Growth’ execution progressing in line with plans

Outlook

FY 17/18 guidance reiterated: 4-8% organic EBITDA growth,

FCF c.€5 billion

Appendix

19

Customer experience and commercial KPIs

Q1

16/17

Q2

16/17

Q3

16/17

Q4

16/17

Q1

17/18

4G customers (m) 2 16.5 19.6 23.2 27.7 33.4

Broadband customers (m)2 1.1 1.2 1.3 1.3 1.7

Converged customers (m) 0.1 0.1 0.1 0.1 0.1

Contract churn (%) 16.7 16.4 17.7 18.7 17.7

3G/4G outdoor coverage

(%)85 85 86 86 86

% of data sessions >3Mbps 90 86 85 86 86

% of dropped calls 0.50 0.49 0.51 0.48 0.51

Q1

16/17

Q2

16/17

Q3

16/17

Q4

16/17

Q1

17/18

4G customers (m) 1 36.0 39.3 43.3 47.0 50.1

Broadband customers (m) 1 12.5 12.7 16.2 16.6 16.8

Converged customers (m) 1 3.1 3.2 3.4 4.3 4.4

Contract churn (%) 15.4 15.5 16.7 15.3 15.1

4G % outdoor population

coverage(%) 1 89 90 91 92 92

% of data sessions >3Mbps 91 90 91 92 91

% of dropped calls 0.47 0.48 0.41 0.38 0.39

Europe AMAP

20

All figures exclude India and VodafoneZiggo unless otherwise stated

1. Includes VodafoneZiggo from Q3 16/17, data for Q1 17/18 is stated as of Q4 16/17

2. Includes India JVs, and associates (Kenya, Australia)

12.6

3.510.3

2.57.21.5

13.6

8.3

9.026.0

0.2

Germany Italy² Spain UK Portugal VodafoneZiggo³

European homes marketable with NGN (Q1 17/18)1

21

(millions)

marketable on-net98mmarketable including

wholesale

60% coverage coverage

36m

22%

Wholesale

Open Fiber

21

Owned

1. Excludes 3.6 m wholesale NGN homes marketable in Greece and Ireland

2. Open Fiber has 1.5m homes marketable / 1.7m homes passed

3. VodafoneZiggo as at Q4 16/17

Household coverage

65% 47% 67% 90% 54% 94%

This presentation, along with any oral statements made in connection therewith, contains “forward-

looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 with

respect to the Group’s financial condition, results of operations and businesses and certain of the

Group’s plans and objectives.

In particular, such forward-looking statements include, but are not limited to: statements with respect

to: expectations regarding the Group’s financial condition or results of operations including the

confirmation of the Group’s guidance for the 2018 financial year; expectations for the Group’s future

performance generally; expectations regarding the Group’s operating environment and market

conditions and trends; intentions and expectations regarding the development, launch and expansion

of products, services and technologies; growth in customers and usage; expectations regarding

spectrum licence acquisitions; and expectations regarding, service revenue, adjusted EBITDA, free

cash flow, capital expenditure, and foreign exchange movements.

Forward-looking statements are sometimes, but not always, identified by their use of a date in the

future or such words as “ongoing”, “lead”, “surge”, “exceed”, “stabilise”, “maintain”, “sustain”,

“improve”, “plans”, “targets” “gain”, “grow”, “continue”, “retain” or “accelerate” (including in their

negative form). By their nature, forward-looking statements are inherently predictive, speculative and

involve risk and uncertainty because they relate to events and depend on circumstances that may or

may not occur in the future. There are a number of factors that could cause actual results and

developments to differ materially from those expressed or implied by these forward-looking

statements. These factors include, but are not limited to, the following: changes in general economic

or political conditions in markets served by the Group and changes to the associated legal, regulatory

and tax environments; increased competition; the impact of investment in network capacity and the

deployment of new technologies, products and services; rapid changes to existing products and

services and the inability of new products and services to perform in accordance with expectation; the

ability of the Group to integrate new technologies, products and services with existing networks,

technologies, products and services; the Group’s ability to grow and generate revenue; a lower than

expected impact of new or existing products, services or technologies on the Group’s future revenue,

cost structure and capital expenditure outlays; slower than expected customer growth and reduced

customer retention; changes in the spending patterns of new and existing customers and increased

pricing pressure; the Group’s ability to expand its spectrum position or renew or obtain necessary

Forward-looking statements

22

licences and realise expected synergies and associated benefits; the Group’s ability to secure the

timely delivery of high-quality products from suppliers; loss of suppliers, disruption of supply chains and

greater than anticipated prices of new mobile handsets; changes in the costs to the Group of, or the

rates the Group may charge for, terminations and roaming minutes; the impact of a failure or significant

interruption to the Group’s telecommunications, networks, IT systems or data protection systems;

changes in foreign exchange rates, as well as changes in interest rates; the Group’s ability to realise

benefits from entering into acquisitions, partnerships or joint ventures and entering into service

franchising, brand licensing and platform sharing or other arrangements with third parties; acquisitions

and divestments of Group businesses and asset and the pursuit of new, unexpected strategic

opportunities; the Group’s ability to integrate acquired business or assets; the extent of any future

write-downs or impairment charges on the Group’s assets, or restructuring charges incurred as a result

of an acquisition or disposition; the impact of legal or other proceedings against the Group or other

companies in the mobile telecommunications industry; the Group’s ability to execute its strategy in fibre

deployment, network expansion, new product and service roll-outs, mobile data, Enterprise and

broadband in emerging markets; developments in the Group’s financial condition, earnings and

distributable funds and other factors that the Board takes into account when determining levels of

dividends; the Group’s ability to satisfy working capital and other requirements; and/or changes in

statutory tax rates and profit mix.

Furthermore, a review of the reasons why actual results and developments may differ materially from

the expectations disclosed or implied within forward-looking statements can be found under the

headings “Forward-looking statements” and “Risk management” in the Group’s Annual Report for the

year ended 31 March 2017. The Annual Report can be found on the Group’s website

(vodafone.com/investor). All subsequent written or oral forward-looking statements attributable to the

Company, to any member of the Group or to any persons acting on their behalf are expressly qualified

in their entirety by the factors referred to above. No assurances can be given that the forward-looking

statements in or made in connection with this presentation will be realised. Subject to compliance with

applicable law and regulations, Vodafone does not intend to update these forward-looking statements

and does not undertake any obligation to do so

More information

23

www.vodafone.com/investor

For definitions of terms please see www.vodafone.com/content/index/investors/glossary

ir@vodafone.co.uk

+44 (0) 7919 990 230

Contact us

Half-year results

14 Nov

AGM

28 July

Final dividend payment

4 Aug

Visit our website for more information 2017 upcoming dates