Vodafone Group Plc Annual Report 2012 40 Operating results

This section presents our operating performance, providing commentary on how the revenue and the EBITDA performance of the Group and its operating segments within Europe, Africa, Middle East and Asia Pacific, and Non-Controlled Interests and Common Functions have developed in the last three years. 2012 financial year compared to the 2011 financial year Group1 Africa, Non-Controlled Middle East Interests and and Asia Common Europe Pacific Functions2 Eliminations 2012 2011 % change £m £m £m £m £m £m £ Organic Revenue 32,181 13,868 423 (55) 46,417 45,884 1.2 2.2 Service revenue 29,914 12,751 272 (52) 42,885 42,738 0.3 1.5 EBITDA 10,445 4,115 (85) – 14,475 14,670 (1.3) (0.6) Adjusted operating profit 5,260 1,472 4,800 – 11,532 11,818 (2.4) 2.5 Adjustments for: Impairment loss (4,050) (6,150) Other income/(expense)3 3,705 (72) Operating profit 11,187 5,596 Non-operating (expense)/income4 (162) 3,022 Net (financing costs)/investment income (1,476) 880 Profit before taxation 9,549 9,498 Income tax expense (2,546) (1,628) Profit for the financial year 7,003 7,870

Notes: 1 Current year results reflect average foreign exchange rates of £1:€1.16 and £1:US$1.60. 2 Common Functions primarily represent the results of the partner markets and the net result of unallocated central Group costs. 3 Other income/(expense) for the year ended 31 March 2012 includes a £3,419 million gain on disposal of the Group’s 44% interest in SFR and a £296 million gain on disposal of the Group’s 24.4% interest in Polkomtel. The year ended 31 March 2011 included £56 million representing the net loss on disposal of certain Alltel investments by Verizon Wireless. This is included within the line item “Share of results in associates” in the consolidated income statement. 4 Non-operating (expense)/income for the year ended 31 March 2011 included £3,019 million profit arising on the sale of the Group’s 3.2% interest in China Mobile Limited.

Revenue Net (financing costs)/investment income Group revenue was up 1.2% to £46.4 billion, with service revenue 2012 2011 of £42.9 billion, an increase of 1.5%* on an organic basis. Our overall £m £m performance reflects continued strong demand for data services Investment income 456 1,309 and further voice penetration growth in emerging markets, offset by Financing costs (1,932) (429) regulatory changes, ongoing competitive pressures and challenging Net (financing costs)/investment income (1,476) 880 macroeconomic conditions in a number of our mature markets. As a result of the leap year, service revenue growth of 2.3%* in Q4 benefited Analysed as: from the additional day by around 1 percentage point. Net financing costs before income AMAP service revenue was up by 8.0%*, with a strong performance in from investments (1,642) (852) India, Qatar, Ghana and Vodacom and a return to growth in Egypt offset Potential interest credit/(charges) arising on 1 by a decline in Australia. settlement of outstanding tax issues 9 (46) Income from investments 19 83 In Europe, service revenue was down by 1.1%* reflecting challenging Foreign exchange2 138 256 macroeconomic conditions in Southern Europe partially offset by 3 growth in Germany, the UK, the Netherlands and Turkey. Equity put rights and similar arrangements – 95 Interest related to the settlement of tax cases – 872 EBITDA and profit Disposal of SoftBank Mobile Corp. Limited Group EBITDA was down 1.3% to £14.5 billion, as revenue growth was financial instruments – 472 offset by higher customer investment due to increased smartphone (1,476) 880 penetration. Notes: Adjusted operating profit was down 2.4% to £11.5 billion, driven by a 1 Excluding interest credits related to a tax case settlement. 2 Comprises foreign exchange rate differences reflected in the income statement in relation to certain reduction in our share of profits from associates following the disposal intercompany balances and the foreign exchange rate differences on financial instruments received as of our 44% interest in SFR in June 2011. Our share of profits of Verizon consideration on the disposal of Vodafone Japan to SoftBank in April 2006. * 3 The year ended 31 March 2011 included foreign exchange rate movements, accretion expense and fair Wireless grew by 9.3% to £4.9 billion. value charges. Operating profit increased by 100% to £11.2 billion, primarily due to the Net financing costs before income from investments increased from gain on disposal of the Group’s 44% interest in SFR and 24.4% interest in £852 million to £1,642 million, primarily due to the decision to increase Polkomtel, and lower impairment losses compared to the prior year. the fixed rate debt mix, which is expected to result in lower interest in An impairment loss of £4.0 billion was recorded in relation to Italy, Spain, future periods, and the subsequent recognition of mark-to-market Portugal and Greece, primarily driven by lower projected cash flows losses. Income from investments decreased by £64 million as a result of within business plans and an increase in discount rates, resulting from the disposal of the Group’s 3.2% interest in China Mobile Limited and the adverse changes in the economic environment. Group’s interests in SoftBank Mobile Corp. Limited during the 2011 financial year. Business review Performance Governance Financials Additional information – £m 72 0.6 0.6 (1.1) 2011 (0.1) (6.1) (9.6) (0.4) (4.5) (3.7) Million (697) 41 Organic 6,150 7,968 8,776 (1,695) 1,505 % change % (3,022) 52,748 52,408 £m (18) 2012 £m 162 242 369 Million (138) 0.5 (7.1) (8.1) (9.8) (0.6) (3.4) (3.5) (2.5) 4,050 7,550 6,957 (3,705) 50,958 50,644 £m

4 Europe 3 5,726 5,726 5,260

32.5% 33.8% 33.8% 32,181 29,914 32,015 32,015 1 10,445 10,823 10,823 30,097 30,097 – – – – – £m 1 2 1 (217) (259) (264) (222) Vodafone Group Plc Plc Group Vodafone 2012 Report Annual Eliminations 1 £m Other 7,787 7,787 1,012 1,012 7,780 2,479 2,433 2,433 1,066 8,352 8,253 8,253 29.7% 29.5% 29.5% 1 UK £m 402 348 348 Diluted Basic Impairment loss Impairment Non-operating income and expense and income Non-operating Other income and expense and income Other Investment income and financing costs financing and income Investment Taxation for the 2012 financial year includes a £206 million charge in respect of the disposal of the Group’s Group’s the of disposal the of respect in charge million £206 a includes taxyear a of financial respect 2012 in the credit for million £929 Taxation included year financial Mobile 2011 China The in Polkomtel. interest in 3.2% interest Group’s the 24.4% of disposal the years of financial respect in 2011 charge and million £208 2012 a the and in settlement million £6,150 and rise million give £4,050 not of did SFR charges in impairment interest The 44% Limited. our of disposal The consequences. tax any in result not do respectively the of disposal on gain million charge. tax a £3,419 to a includes year Polkomtel. financial in 2012 interest the for 24.4% expense Group’s and the income of Other disposal on gain million £296 a and Alltel SFR certain in of interest disposal 44% on loss Group’s net the representing million £56 the in includes year associates” in financial results of 2011 The “Share item line the within included is This Wireless. Verizon by investments the on arising profit statement. million income £3,019 consolidated includes year financial 2011 the for expense and income Non-operating Limited. Mobile China in interest 3.2% Group’s the of 40. sale page on income” costs)/investment (financing “Net in 3 and 2 notes See 4,931 4,931 5,271 5,271 1,294 5,397 1,233 1,233 4,996 24.0% 23.4% 23.4%

Taxation

Weighted average number of shares outstanding outstanding shares of number average Weighted Notes: 1 2 3 4 Profit attributable to equity shareholders equity to attributable Profit adjustments: Pre-tax Non-controlling interests Non-controlling Adjusted profit attributable to equity equity to attributable profit Adjusted shareholders

Adjusted earnings per share was 14.91 pence, a decline of 11.0% 11.0% of decline share a per pence, Earnings 14.91 was and share SFR in per earnings interest 44% Adjusted our of loss the reflecting investment from income year-on-year, interest of loss the costs, profits, finance through Polkomtel’s charged items share Group’s the mark-to-market and from arising disposals shares in (2011: reduction pence a by offset 13.74 was partially share SFR in per earnings interest 44% Basic our of programme. disposal buyback on profit the reflecting charges pence), impairment 15.20 lower and from Polkomtel in excluded are interest which of 24.4% all and year, financial prior the to compared share. per earnings adjusted

£m £m £m 2011 2011 519 929 604 Spain 915 915 (232) 566 9,498 1,628 1,505 1,193 5,133 5,133 2,844 2,325 4,763 4,735 4,735 1,562 1,562 4,357 24.5% 30.4% 30.4% 25.0% 11,607 11,003

£m Italy – £m £m 2012 2012 2,514 1,735 1,903 1,903 5,722 5,722 5,432 369 369 302 302 382 382 5,658 2,643 2,643 5,329 44.4% (242) (242) 46.2% 46.2% 9,549 9,549 2,546 2,546 9,918 9,918 2,304 2,606 25.3% 25.3% 10,300 £m

7,471 7,471 7,669 1,491 7,900 7,900 2,952 2,952 2,965 1,548 1,548 8,233 37.4% 37.4% Germany 36.0%

1 See “Earnings per share”. per “Earnings See

Profit before tax tax before Profit Adjustments to derive adjusted adjusted derive to Adjustments tax before profit Adjusted income tax expense for for expense tax income Adjusted adjusted calculating of purposes tax rate Year ended 31 March 2012 March 31 ended Year Revenue Europe Adjusted income tax expense expense tax income Adjusted tax associates’ of Share Note: was 1 2012 March 31 ended year the for rate tax rate tax effective effective adjusted The adjusted 20s mid our with line in is This 25.3%. range. of absence guidance the to due declined tax in associates’ of interest 44% share our of Group’s The disposal the following SFR to related the tax 2012 June 2011. March 31 ended year the in 2011 increased the has in expense settlement tax tax a Income of impact favourable the to due largely year. financial Tax on adjustments to derive derive to adjustments on Tax tax before profit adjusted Taxation expense tax Income to related benefit Tax cases tax of settlement Adjusted profit before tax for the the for tax before profit Adjusted adjusted calculating of purpose rate tax effective Add: Share of associates’ tax and and tax associates’ of Share Add: interest non-controlling Adjusted profit before tax tax before profit Adjusted EBITDA margin EBITDA 2011 March 31 ended Year Revenue revenue Service Service revenue Service Adjusted effective tax rate rate tax effective Adjusted Adjusted operating profit operating Adjusted EBITDA EBITDA Adjusted operating profit operating Adjusted EBITDA margin EBITDA Vodafone Group Plc Annual Report 2012 42 Operating results (continued)

Revenue increased by 0.5% including a 0.5 percentage point impact Italy from favourable foreign exchange rate movements. On an organic basis Service revenue declined by 3.4%* as a result of weak economic service revenue declined by 1.1%* primarily due to the impact of MTR conditions, intense competition and the impact of an MTR cut effective cuts, competitive pricing pressures and continued economic weakness, from 1 July 2011. Strong data revenue growth of 16.8%* was driven partially offset by growth in data revenue. Growth in the UK, Germany, by mobile internet which benefited from a higher penetration of the Netherlands and Turkey was offset by declines in most other smartphones and an increase in those sold with a data bundle. From Q3, markets, in particular, Italy, Spain and Greece. all new consumer contract customers are now on an integrated tariff. Enterprise revenue grew by 5.1%* with a strong contribution from EBITDA declined by 3.5% including a 1.1 percentage point favourable Vodafone One Net, a converged fixed and mobile solution, and growth impact from foreign exchange rate movements. On an organic in the customer base. Fixed line growth benefited from strong customer basis EBITDA decreased by 4.5%*, resulting from higher customer additions although slowed in Q4 due to intense competition. investment due to the increased penetration of smartphones, and a reduction in service revenue in most markets, partially offset by direct EBITDA decreased by 6.4%*, and EBITDA margin fell by 1.9* percentage cost efficiencies. points resulting from the decline in service revenue partially offset Organic Other Foreign Reported by operating cost efficiencies such as site sharing agreements and change activity1 exchange change outsourcing of network maintenance to Ericsson. % pps pps % Revenue – Europe (0.1) 0.1 0.5 0.5 Spain Service revenue declined by 9.4%* impacted by intense competition, Service revenue continuing economic weakness and high unemployment during the Germany 1.2 (0.1) 1.6 2.7 year, which have driven customers to reduce or optimise their spend Italy (3.4) – 1.5 (1.9) on tariffs. Data revenue increased by 18.4%* benefiting from the Spain (9.4) (0.1) 1.5 (8.0) penetration of integrated voice, SMS and data tariffs initially launched UK 1.6 (0.3) – 1.3 in October 2010. Improvements were seen in fixed line revenue which increased by 7.3%* resulting from a competitive proposition leading to Other Europe 1.7 (0.2) (1.6) (0.1) good customer additions. Mobile customer net additions were strong Europe (1.1) – 0.5 (0.6) as a result of our more competitive tariffs and a focus on improving the EBITDA retention of higher-value customers. Germany (1.1) – 1.5 0.4 EBITDA declined by 24.9%*, with a 5.5* percentage point fall in EBITDA Italy (6.4) – 1.5 (4.9) margin, primarily due to lower revenue with sustained investment in Spain (24.9) (0.2) 1.5 (23.6) acquisition and retention costs. This was partially offset by operating cost efficiencies. UK 5.0 (0.1) – 4.9 Other Europe 1.7 (0.1) 0.3 1.9 UK * Europe (4.5) (0.1) 1.1 (3.5) Service revenue increased by 1.6% driven by an increase in data and consumer contract revenue supported by the success of integrated Adjusted operating profit offerings. This was partially offset by the impact of an MTR cut effective Germany (5.3) 0.1 1.5 (3.7) from 1 April 2011 and lower consumer confidence leading to reduced * Italy (10.4) – 1.6 (8.8) out-of-bundle usage. Data revenue grew by 14.5% due to higher penetration of smartphones and an increase in those sold with a data Spain (39.2) (0.3) 1.4 (38.1) bundle. UK 15.7 (0.2) – 15.5 * * Other Europe 3.0 (0.6) 2.9 5.3 EBITDA increased by 5.0% and EBITDA margin improved by 0.6 Europe (9.6) (0.2) 1.7 (8.1) percentage points, due to a number of cost saving initiatives, including acquisition and retention efficiencies. Note: 1 “Other activity” includes the impact of M&A activity and the revision to intra-group roaming charges from Other Europe 1 October 2012. Refer to “Organic growth” on page 171 for further detail. Service revenue increased by 1.7%* as growth in Albania, Malta, the Germany Netherlands and Turkey more than offset a decline in the rest of the Service revenue increased by 1.2%* as strong growth in data and region, particularly in Greece, Portugal and Ireland, which continued to be impacted by the challenging macroeconomic environment and enterprise revenue more than offset the impact of an MTR cut effective * from 1 December 2010 and increasing competitive pressures. Data competitive factors. Service revenue in Turkey grew by 25.1% driven by revenue grew by 21.3%* driven by a higher penetration of smartphones, strong growth in consumer contract and data revenue resulting from an expanding contract customer base and the launch of innovative an increase in those sold with a data bundle and the launch of prepaid * integrated tariffs. Enterprise revenue grew by 5.6%* driven by significant propositions. In the Netherlands service revenue increased by 2.1% , customer wins and the success of converged service offerings. A driven by an increase in the customer base, partially offset by MTR cuts, number of innovative products were launched during the second half of price competition and customers optimising tariffs. the 2012 financial year, including OfficeNet, a cloud based solution. EBITDA grew by 1.7%*, with strong growth in Turkey, driven by a The roll out of LTE has continued, following the launch of services combination of service revenue growth and cost efficiencies, partially in the prior financial year. Nearly 2,700 base stations had been offset by declines in the majority of the other markets. upgraded to LTE at 31 March 2012, providing approximately 35% household coverage. EBITDA declined by 1.1%* as the higher revenue was offset by restructuring costs and regulation changes. Business review Performance Governance Financials Additional information 7.8 7.5 7.5 9.5 9.5 9.5 9.5 8.4 8.6 8.6 8.0 Organic 22.4 43 % change % £m 3.7 2.9 4.2 15.7 20.7 20.7 20.0 20.0 20.0 20.0 55.5 55.5 driven by higher higher by driven *

£m Africa, Africa, Pacific 4,115 and Asia Asia and 1,472

1,272 1,272 3,999 3,999 30.1% 30.1% 29.7% 12,751 12,292 12,292 13,868 13,304 13,304 Middle East East Middle

– – – – – – (1) (1) £m , driven by customer net additions additions net customer by driven , *2 driven by an 11.8% increase in the the in increase 11.8% an by driven * driven by service revenue growth in in growth revenue service by driven Eliminations * driven by robust service revenue growth growth revenue service robust by driven * Vodafone Group Plc Plc Group Vodafone 2012 Report Annual £m and driven by the increase in revenue and and revenue in increase the by driven Other 430 430 328 Africa, * 1,170 1,170 3,971 3,971 1,063 3,965 3,628 3,650 3,650 29.5% 29.5% , where strong net customer additions and and additions customer net strong where , 26.8% * Asia Pacific Asia Middle East Middle £m 827 827 growth in data revenue. 3G services were available to to available were services 3G revenue. data in growth 1,930 5,479 5,479 * * 1,084 4,839 4,839 1,844 1,844 5,638 4,908 33.7% 33.7% Vodacom 34.2% percentage points to 26.3%, driven by cost efficiencies and scale scale and efficiencies cost by driven 26.3%, to points percentage * £m “Other activity” includes the impact of M&A activity and the revision to intra-group roaming charges from from charges roaming intra-group to revision the and activity M&A of impact the includes detail. activity” further “Other for 171 page on growth” “Organic to Refer 2012. 1 October Africa. Business Vodacom and Gateway Excludes 15 15 60 India 985 985

economies of scale, partially offset by higher customer acquisition costs costs acquisition customer higher by offset partially increased scale, margin of EBITDA year economies Full costs. interconnection increased and 0.8 customer base, strong growth in incoming and outgoing voice minutes minutes voice outgoing and incoming in growth strong base, customer 51.3% and smartphone penetration and data bundles leading to a 35.4% increase increase 35.4% a to leading bundles data and 2012. March penetration 31 at smartphone million 12.2 to customers data active in strong delivered Africa South outside operations mobile Vodacom’s 31.9% Tanzania. of growth and revenue Mozambique service in structures tariff of to continues simplification service, the and transfer money based phone users. active mobile our million M-Pesa, 3.1 over with Tanzania in well perform 11.3% by increased EBITDA Notes: 1 2 growth in data revenue was partially offset by the impact of MTR cuts cuts MTR of impact the by offset pricing partially was competitive revenue Despite data 2012). growth in March 1 and 2011 March 1 24.3%, by (effective grew Africa South in revenue pressures, data South Africa of 4.4% of Africa South and continued focus on operating cost efficiencies. efficiencies. cost operating on focus continued and benefits. Vodacom 7.1%, by grew revenue Service Vodafone customers in 860 towns and cities across 20 circles at at circles 20 across cities and towns 860 starting in operators customers mobile from Vodafone benefited also 2012 Growth the of 2012. quarter second 31 March the to during increased had termination SMS base for customer the to charge 2012 March 31 year-on-year At a million, year. 35.4 financial totalling customers enabled data data with in million, increase an 150.5 by driven was This Whilst 81.5%. of campaigns. increase marketing successful of minute impact per the rate and effective handsets the competitive, highly offers remains promotional with the market year, the during stable broadly remained increases. price headline offsetting 22.9% by grew EBITDA India 19.5%, by grew revenue Service 1,122 4,215 3,855 3,855 4,265 3,804 3,804 25.6% 25.6% 26.3%

% 1.4 4.7 3.7 (9.1) 2.9 4.2 (0.6) 31.1 13.9 10.8 15.7 change (23.7) 300.0 Reported Reported pps 0.1 1.3 (1.1) (6.6) (8.6) (5.7) (8.8) (6.4) (4.8) (4.3) (4.2) (10.0) Foreign (48.7) exchange 1 – – – – – pps (0.1) (0.1) (0.1) Other (0.2) (0.1) (0.2) (0.3) (40.6) activity % 7.1 7.8 (9.1) 8.0 8.4 (1.8) 41.1 11.3 19.5 22.9 22.4 change Organic Organic (22.4) 389.3 driven by customer and data growth, partially partially growth, data and customer by driven * driven primarily by strong growth in India and Vodacom and and Vodacom and India in growth strong by primarily driven * EBITDA margin EBITDA Adjusted operating profit operating Adjusted Service revenue Service offset by the impact of MTR reductions. Growth was driven by strong strong by driven was Growth reductions. MTR to of impact return a the and by Qatar offset and Ghana Vodacom, and India, Australia in in performances declines revenue service by offset Egypt, in growth from New Zealand. impact adverse point percentage 4.8 a after grew 2.9% EBITDA by basis, grew EBITDA organic an On movements. rate exchange foreign by 7.8% Revenue grew by 4.2% after a 4.2 percentage point adverse impact impact adverse point percentage 4.2 a after service 4.2% by basis grew organic an Revenue On movements. rate exchange foreign from 8.0% by grew revenue EBITDA Year ended 31 March 2011 March 31 ended Year Revenue EBITDA Year ended 31 March 2012 March 31 ended Year Revenue Vodacom Service revenue Service India EBITDA India Vodacom Revenue – Revenue and East Middle Africa, Pacific Asia Africa, Middle East and Asia Pacific Asia and East Middle Africa, improved contributions from Ghana and Qatar, offset in part by declines declines by part in offset Qatar, and Ghana from contributions improved Australia. and Egypt in EBITDA margin EBITDA Adjusted operating profit operating Adjusted Service revenue Service Other Africa, Middle East East Middle Africa, Other Pacific Asia and and East Middle Africa, Pacific Asia Adjusted operating profit operating Adjusted India Africa, Middle East and and East Middle Africa, Pacific Asia Vodacom Other Africa, Middle East East Middle Africa, Other Pacific Asia and Other Africa, Middle East East Middle Africa, Other Pacific Asia and Africa, Middle East and and East Middle Africa, Pacific Asia Vodafone Group Plc Annual Report 2012 44 Operating results (continued)

Other Africa, Middle East and Asia Pacific Non-Controlled Interests Organic service revenue, which now includes Australia, declined by Verizon Wireless1 2 3 1.8%* with both New Zealand and Australia being impacted by MTR cuts effective from 6 May 2011 and 1 January 2012, respectively. In 2012 2011 % change Australia, despite improvements in network and customer operations £m £m £ Organic performance, service revenue declined by 8.8%* driven by the Service revenue 18,039 17,238 4.6 7.3 competitive market and weakness in brand perception following the Revenue 20,187 18,711 7.9 10.6 network and customer service issues experienced from late 2010 to EBITDA 7.689 7,313 5.1 7.9 early 2011 and further accelerated by MTR cuts. On 22 March 2012, Interest (212) (261) (18.8) Vodafone Hutchison Australia appointed Bill Morrow as its new CEO. Tax2 (287) (235) 22.1 In Egypt service revenue was suppressed by the challenging economic * Group’s share of result in and political environment, however, organic growth of 1.4% was Verizon Wireless 4,867 4,569 6.5 9.3 achieved as a result of an increased customer base and strong data usage. In Qatar an increase in the customer base delivered service In the United States Verizon Wireless reported 4.6 million net mobile revenue growth of 27.1%*, despite a competitive pricing environment. customer additions bringing its closing mobile customer base to Service revenue in Ghana grew by 29.2%* through strong gains in 93.0 million, up 5.2%. customer market share. Service revenue growth of 7.3%* continues to be driven by the EBITDA margin declined 2.2* percentage points, driven by the service expanding customer base and robust growth in data ARPU driven revenue decline in Australia and the challenging economic and by increased penetration of smartphones. competitive environment in Egypt, partially offset by growth in Qatar and Ghana. EBITDA margin remained strong despite the competitive challenges and macroeconomic environment. Efficiencies in operating expenses Safaricom, Vodafone’s associate in Kenya, grew service revenue by and customer acquisition costs resulting from lower volumes have been 13.6%*, driven by increases in customer base, voice usage and M-Pesa partly offset by a higher level of customer retention costs reflecting the activity. EBITDA margin improved in the second half of the 2012 financial increased demand for smartphones. year through a tariff increase in October, operating cost efficiencies and 4 a strengthening of the local currency to take the margin for the 2012 Verizon Wireless’ net debt at 31 March 2012 totalled US$6.4 billion 4 financial year to 35.0%. (31 March 2011: net debt US$9.8 billion ), after paying a dividend to its shareholders of US$10 billion on 31 January 2012. Notes: 1 All amounts represent the Group’s share based on its 45% equity interest, unless otherwise stated. 2 The Group’s share of the tax attributable to Verizon Wireless relates only to the corporate entities held by the Verizon Wireless partnership and certain state taxes which are levied on the partnership. The tax attributable to the Group’s share of the partnership’s pre-tax profit is included within the Group tax charge. 3 Organic growth rates include the impact of a non-cash revenue adjustment which was recorded to defer previously recognised data revenue that will be earned and recognised in future periods. Excluding this the equivalent organic growth rates for service revenue, revenue, EBITDA and the Group’s share of result in Verizon Wireless would have been 6.8%*, 10.1%*, 6.7%* and 7.5%* respectively. 4 Net debt excludes pending credit card receipts. Comparatives are presented on a comparable basis. Business review Performance Governance Financials Additional information 3 2.1 1.8 1.8 2.8 (0.7) (0.7) 45 Organic % change % £ primarily due due primarily * 3.1 3.1 2.4 3.2 (0.4)

£m (10) (56) 2010 114 114 (796) 8,674 8,618 9,480 9,480 (2,100) 41,719 11,466 11,466 14,735 14,735 44,472 , with a decline in EBITDA margin margin EBITDA in decline a with , * , driven primarily by growth in India, India, in growth by primarily driven , * £m 2011 (72) (72) 880 880 3,022 3,022 7,870 (6,150) (6,150) 9,498 (1,628) (1,628) 5,596 5,596 Vodafone Group Plc Plc Group Vodafone 2012 Report Annual 11,818 11,818 14,670 14,670 42,738 45,884 – – £m (63) (94) Eliminations 2 percentage points, the two main factors behind the decline being being decline the behind factors main two the points, percentage £m * 412 659 (152) (152) of 1.7 percentage points, primarily driven by a reduction in service service in reduction a by driven primarily points, and percentage acquisition in 1.7 of investment higher and markets most efficiencies. in cost revenue operating by offset partially costs, retention 7.5% by increased EBITDA AMAP In to the expanding customer base, robust data revenue, efficiencies in efficiencies revenue, data robust base, higher by customer offset expanding partially the to costs acquisition lower and for expenses demand operating increased the reflecting costs retention customer in States. United primarily the in China million, in smartphones £5,342 of interest income Group’s net the of other sale the recorded £0.5 billion on Group and gain The case net tax a billion of £2.8 a to settlement the on relation Limited. billion Corp. £1.8 Mobile Limited, SoftBank in Mobile investment of disposal the impairment from higher to due primarily 41.0% by decreased totalling profit losses Operating Impairment year. Spain prior in the to businesses compared our to losses relating Greece recorded million), were (£1,000 Ireland £6,150 million million), (£1,050 from Italy resulting primarily (£2,950 million), million) bond (£350 Portugal government in and million) increases (£800 of result a as rates reflecting plans, discount business increased within flows cash lower with impairment together The rates environments. macroeconomic million. country-level £2,100 weaker was year financial 2010 the in loss 8.7%. by decreased year the for Profit EBITDA decreased by 0.4% to £14,670 million with a 1.1 percentage percentage 1.1 a with profit and million EBITDA £14,670 to 0.4% by margin. EBITDA decreased EBITDA organic and reported the both in decline point 3.7% by decreased EBITDA Europe In higher recurring licence fee costs in India and the change in regional mix mix regional in change the and India in costs fee licence recurring higher India. in the growth in strong the increase an from of result a as 3.1% decline by the grew by offset profit partially operating Wireless Adjusted Verizon the of Wireless, results of Verizon share in Group’s results of share Group’s 8.5% The by EBITDA. Group increased in States, United the in associate Group’s together with improvements in Vodacom, Ghana, New Zealand and and Zealand New Ghana, fell Vodacom, in margin EBITDA improvements The with Egypt. in together decline slight a by offset partially Qatar, 0.6 4,820 4,820 Common Common Functions and Interests

Non-Controlled *

and and * £m Africa, Africa, Pacific Pacific and Asia and 1,272 1,272 3,999 3,999 in the the in 12,292 13,304 * East Middle , driven driven , * with improved improved with * £m Europe 5,726 5,726 in Italy driven by a by driven Italy in 32,015 decline in service service in decline 10,823 10,823 30,097 * * , despite a 52% cut in MTRs MTRs in cut 52% a despite , * , with a 0.8 percentage point point percentage 0.8 a with ,

* . Vodacom continued to to continued Vodacom . * with a decline of 0.3% of decline a with * 5 4 1 respectively. Spain continued to experience economic pressures pressures economic experience to continued Spain respectively. * Impairment losses Impairment (income)/expense Other 2011 results reflect average exchange rates of £1:€1.18 and £1:US$1.56. and £1:€1.18 of costs. rates Group central exchange average in unallocated results reflect of of results result 2009. “Share net June item 9 the 2011 line on and the Australia markets within partner 3G the included Hutchison of is with This results merger the Wireless. the represent Verizon following by primarily Australia investments Functions excludes Alltel but Common certain ownership of of disposal level on loss 2011 net the the at representing Vodacom million includes £56 growth included Organic 2011 March 31 ended Limited. year Mobile the China for in expense interest and 3.2% income Other Group’s the of sale the on statement. arising income profit million consolidated the £3,019 in includes associates” 2011 March 31 ended year the for expense and income Non-operating

Adjusted operating profit operating Adjusted Adjustments for: Adjustments Service revenue Service EBITDA which was effective from 1 April 2010. Challenging economic and and economic Challenging 2010. April 1 from European effective was central which other our in continued MTR by conditions impacted also competitive was growth revenue service where 0.5% by businesses increased revenue enterprise European cuts. perform well, with strong data revenue growth from mobile broadband broadband mobile from growth revenue data cuts MTR strong two with by impacted perform well, was which revenue 16.2% voice by weaker increased offsetting revenue service India In year. the during improvement between the first and second half of the 2011 financial financial 2011 the of half second and first the service between organic improvement improved delivered AMAP and Europe both as year trends. revenue 0.4% by fell revenue service Europe In where performance was impacted by the socio-political unrest during during unrest socio-political the by impacted was performance year. where financial 2011 the of quarter fourth the revenue. Service revenue also declined by 2.1% by declined also revenue Service revenue. Revenue second half of the 2011 financial year. Both the UK and Germany Germany and UK the Both year. financial 2011 4.7% the of of growth half second revenue service year full delivering well performed Group revenue increased by 3.2% to £45,884 million and Group service service Group and million Revenue £45,884 to 3.2% basis by organic increased an On revenue million. Group £42,738 to 2.4% by increased revenue 2.1% by increased revenue service Group Notes: 1 2 3 4 5 Group 2011 financial year compared to the 2010 financial year financial 2010 the to compared year financial 2011 which intensified competition leading to a 6.9% a to leading competition intensified which Operating profit Operating Non-operating income/(expense) Non-operating challenging economic and competitive environment combined with with combined environment competitive and Turkey in economic offers challenging commercial improved Our cuts. MTR of impact the 28.9% of growth revenue service delivered Net investment income/(financing costs) income/(financing investment Net Profit before taxation before Profit expense tax Income year financial the for Profit 0.8% by an increase in the mobile customer base and a more stable pricing pricing stable more a and base the customer Qatar mobile In the in year. increase financial by an 2011 the the of of 45% end with the towards 2011, March environment 31 by 757,000 after years reached two base than less customer services 0.8% Vodafone by using declined actively Egypt in population revenue service basis, organic an On launch. roaming activity and important customer wins. wins. customer important and activity roaming 9.5% by grew revenue service AMAP In Vodafone Group Plc Annual Report 2012 46 Operating results (continued)

Net investment income/(financing costs) The adjusted effective tax rate for the year ended 31 March 2011 was 2011 2010 24.5%. This is in line with the adjusted effective tax rate for the year £m £m ended 31 March 2010 of 24.0%. Tax on adjustments to derive adjusted Investment income 1,309 716 profit before tax includes tax payable on the gain on the disposal of the Financing costs (429) (1,512) Group’s 3.2% interest in China Mobile Limited. Net investment income/(financing costs) 880 (796) Income tax expense includes a credit of £929 million arising as a result of Analysed as: the settlement of a tax case in July 2010. Net financing costs before income Earnings per share from investments (852) (1,024) Adjusted earnings per share increased by 4.0% to 16.75 pence for Potential interest charges arising on settlement the year ended 31 March 2011 due to growth in adjusted earnings of outstanding tax issues1 (46) (23) and a reduction in shares arising from the Group’s share buyback Income from investments 83 145 programme. Basic earnings per share decreased to 15.2 pence primarily due to the £6,150 million of impairment charges partially offset by a gain Foreign exchange2 256 (1) on disposal of the Group’s 3.2% interest in China Mobile Limited and the 3 Equity put rights and similar arrangements 95 (94) settlement of a tax case. 4 Interest related to the settlement of tax cases 872 201 2011 2010 Disposal of SoftBank Mobile Corp. Limited £m £m financial instruments 472 – Profit attributable to equity shareholders 7,968 8,645 880 (796) Pre-tax adjustments: Notes: Impairment loss1 6,150 2,100 1 Excluding interest credits related to a tax case settlement. 2 2 Comprises foreign exchange rate differences reflected in the income statement in relation to certain Other income and expense 72 (114) intercompany balances and the foreign exchange rate differences on financial instruments received as 3 consideration on the disposal of Vodafone Japan to SoftBank in April 2006. Non-operating income and expense (3,022) 10 3 Includes foreign exchange rate movements, accretion expense and fair value charges. Investment income and financing costs4 (1,695) (106) 4 The £872 million in the year ended 31 March 2011 relates to the settlement of a tax case and the £201 million in the year ended 31 March 2010 relates to the settlement of the German tax loss claim. 1,505 1,890 Net financing costs before income from investments decreased from Taxation1 (697) (2,064) £1,024 million to £852 million primarily due to a reduction in net Adjusted profit attributable to equity debt, partially offset by an increase in average interest rates for debt shareholders 8,776 8,471 denominated in US dollars. In addition, £138 million of interest was capitalised compared to £1 million in the prior year. At 31 March 2011 Million Million the provision for potential interest charges arising on settlement of Weighted average number of shares outstanding outstanding tax issues was £398 million (31 March 2010: £1,312 million), Basic 52,408 52,595 with the reduction primarily reflecting the settlement of a tax case. Diluted 52,748 52,849

Taxation Notes: 2011 2010 1 Taxation for the 2011 financial year included £929 million credit in respect of a tax settlement and a £m £m £208 million charge in respect of the disposal of the Group’s interest in China Mobile Limited. The 2010 financial year included £2,103 million arising from the German tax authorities’ decision that €15 billion Income tax expense 1,628 56 of losses booked by a German subsidiary in 2001 were tax deductible. The impairment charges of Tax on adjustments to derive £6,150 million and £2,100 million in the 2011 and 2010 financial years respectively did not result in any tax consequences. adjusted profit before tax (232) (39) 2 The year ended 31 March 2011 includes £56 million representing the net loss on disposal of certain Alltel investments by Verizon Wireless. This is included within the line item ‘Share of results in associates’ in the Tax benefit related to consolidated income statement. settlement of tax cases1 929 2,103 3 The year ended 31 March 2011 includes £3,019 million representing the profit arising on the sale of the Group’s 3.2% interest in China Mobile Limited. Adjusted income tax expense 2,325 2,120 4 See notes 2, 3, and 4 in “Net investment income/(financing costs)”. Share of associates’ tax 519 572 Adjusted income tax expense for purposes of calculating adjusted tax rate 2,844 2,692 Profit before tax 9,498 8,674 Adjustments to derive adjusted profit before tax2 1,505 1,890 Adjusted profit before tax 11,003 10,564 Add: Share of associates’ tax and non-controlling interest 604 652 Adjusted profit before tax for the purpose of calculating adjusted effective tax rate 11,607 11,216 Adjusted effective tax rate 24.5% 24.0%

Notes: 1 The £929 million in the year ended 31 March 2011 relates to the settlement of a tax case and the £2,103 million in the year ended 31 March 2010 relates to the settlement of the German tax loss claim. 2 See “Earnings per share”. Business review Performance Governance Financials Additional information

0.6 0.6 (6.1) (0.4) (3.7) 47 Organic % change % £m (7.1) (9.8) (3.4) (2.5) percentage point percentage *

£m Europe 5,726 5,726 6,351 6,351 35.5% 35.5% 33.8% 33.8% 31,159 31,159 11,644 11,644 32,015 32,015 10,823 10,823 30,097 30,097 32,833 32,833 driven by data revenue growth growth revenue data by driven * impacted by continued intense intense continued by impacted primarily driven by the challenging challenging the by driven primarily driven by the high level of customers customers of level high the by driven * driven by strong customer and data data and customer strong by driven * * *

– – – – £m driven by mobile broadband and and broadband mobile by driven * (259) (295) (264) (297) , with a fall in the EBITDA margin of of margin EBITDA the in fall a with , * , with a 1.6 percentage point reduction in in reduction point percentage 1.6 a with , Vodafone Group Plc Plc Group Vodafone 2012 Report Annual * Eliminations , with a 3.8 percentage point fall in the EBITDA EBITDA the in fall point percentage 3.8 a with , * £m Other 7,787 7,787 1,012 1,012 7,943 7,943 2,433 2,433 1,084 1,084 8,357 8,357 2,582 2,582 8,253 8,253 29.5% 29.5% 30.9% 30.9% UK £m 155 155 348 348 1,141 1,141 4,711 4,711 4,931 4,931 5,271 5,271 1,233 1,233 5,025 5,025 22.7% 22.7% 23.4% 23.4% mobile internet. One-off items contributed to a 1.8 a to contributed items One-off mobile internet. due to increasing penetration of smartphones and mobile internet internet mobile and smartphones of than penetration more which increasing additions, due to customer contract net revenue. strong prepaid and weaker bundles and pressures a have competitive to continued expected were offset 2011 March in 2012 announced the cuts MTR during The growth revenue on impact negative significant financial year. margin, due to lower service revenue and proportionately higher higher proportionately and revenue service in lower reduction to a due by offset margin, partially costs, retention and acquisition expenses. operating UK 4.7% by increased revenue Service financial year despite an MTR cut effective from 1 December 2010. 2010. December 1 from effective cut an MTR despite year financial 3.6% by grew revenue Enterprise revenue growth. 1.5% by declined EBITDA improvement to service revenue growth for the fourth quarter of the the of quarter fourth the for growth revenue service to improvement year. financial 2011 16.8% declined EBITDA migrating to smartphones and taking advantage of data plans. There There plans. data of advantage taking and the of smartphones to coverage and migrating quality improve to investment broadband the continued with was grow to basis. a 100% continued on revenue 2011 line Fixed March 31 network. at million 1.7 reaching base customer 3.1% by decreased EBITDA the EBITDA margin. This decline was driven by increased customer customer increased by driven was iPhone decline the This of margin. launch the by the EBITDA to contributed retention, efficiencies. and cost operating acquisition by offset partially quarter, third Germany in in the spectrum LTE acquired we year targeting financial initially 2011 year, the the of During end the towards services LTE launched and broadband. fixed by underserved areas rural Italy 2.1% by declined revenue Service competition, general economic weakness and the penetration of of penetration the and weakness plans economic general integrated New competition, base. customer the for into demand tariffs the to response lower priced in quarter third the smartphones. in in increase the were introduced by driven tariffs data and voice combined 14.8% by grew revenue Data economic and competitive environment, the impact of MTR cuts and and cuts MTR of impact the environment, grew base competitive and customer economic contract average The Data revenue optimisation. tariff pressures. these customer of offset partial the enabling 12.6% by 21.5% at strong remained growth 1.0 percentage point, as a result of the decline in service revenue and and revenue service in decline the of result by a as offset point, partially costs 1.0 percentage retention and acquisition in investment higher expenses. operating in a reduction Spain 6.9% by declined revenue Service

% 4.7 4.7 8.0 8.0 £m (7.0) (9.7) (7.1) (6.6) (8.7) (6.0) (5.4) (5.8) (2.0) (3.3) (9.8) (3.4) (2.5) (20.1) (10.6) Spain change 915 915 (30.2) 125.1 125.1 Reported Reported 5,133 5,133 5,713 5,713 1,310 1,310 1,956 1,956 4,735 4,735 1,562 1,562 5,298 5,298 30.4% 30.4% 34.2% 34.2% – – – pps as a result result a as (4.1) * (4.9) (3.9) (3.9) (3.9) (2.9) (3.7) (3.6) (3.0) (3.8) (3.8) (3.3) (3.1) (3.8) (3.5) (3.2) Foreign £m Italy exchange 2,107 2,107 1,903 1,903 5,722 5,722 5,432 5,432 5,780 5,780 6,027 6,027 2,643 2,643 2,843 2,843 47.2% 47.2% 46.2% 46.2% – – – – – – – – – – – – pps 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.5 0.5 0.2 0.2 0.3 0.3 M&A activity £m reflecting reductions in most most in reductions reflecting 7,471 7,471 3,122 3,122 7,722 7,722 1,695 1,695 7,900 7,900 * 2,952 2,952 1,548 1,548 8,008 8,008 37.4% 37.4% Germany 39.0% 39.0% % driven by strong data and and data strong by driven 4.7 4.7 8.0 8.0 0.8 0.8 0.5 0.5 * 0.6 0.6 (3.1) (2.1) (1.5) (4.9) (6.9) (5.9) (2.4) (2.0) (6.1) (0.4) (3.7) (16.8) change (27.3) Organic Organic 125.1 125.1 , with a 1.7 percentage point decline in in decline point percentage 1.7 a with , * UK Other Europe Other Spain Europe Adjusted operating profit operating Adjusted Germany Italy Europe Germany 0.8% by increased revenue Service EBITDA margin resulting from a reduction in service revenue in most most in revenue service in reduction a from operating resulting by margin offset EBITDA partially investment, customer higher and markets savings. cost markets offset by growth in Germany, the UK, the Netherlands and and Netherlands the UK, the Germany, in revenue growth by voice offset lower by markets driven primarily was pricing decline on The pressure Turkey. regulatory and market in growth continued by from offset resulting partially climate, economic challenging and the revenue. line fixed impact data and point percentage 3.5 a including 7.1% basis by organic decreased an On EBITDA movements. rate exchange from unfavourable 3.7% by decreased EBITDA of increased penetration of smartphones and Superflat Internet tariffs. tariffs. Internet Superflat and smartphones of 2011 the penetration of quarter of increased fourth the in stable remained revenue Mobile Service revenue Service Germany Italy Revenue – Europe – Revenue Italy Europe Spain UK Other Europe Other messaging revenue growth. Data revenue grew by 27.9% by grew revenue Data growth. revenue messaging UK Spain Europe Other EBITDA Germany Revenue declined by 2.5% reflecting a 3.2 percentage point impact impact point percentage 3.2 a reflecting 2.5% organic by an On declined movements. Revenue rate exchange foreign unfavourable from 0.4% by declined revenue service basis Europe 2011 March 31 ended Year Revenue Service revenue Service EBITDA profit operating Adjusted EBITDA EBITDA margin EBITDA Adjusted operating profit operating Adjusted revenue Service Year ended 31 March 2010 March 31 ended Year Revenue EBITDA margin EBITDA Vodafone Group Plc Annual Report 2012 48 Operating results (continued)

EBITDA increased by 8.0%* with the EBITDA margin increasing by growth in both data and voice revenue, despite a 52% cut in MTRs 0.7 percentage points, reflecting higher service revenue partially effective from 1 April 2010. In Greece service revenue declined by offset by higher customer acquisition and retention costs. 19.4%* with intense competition driving a reduction in prepaid revenue and economic factors leading to customer tariff optimisation. Other Europe Service revenue increased by 0.5%* with growth in Turkey and the EBITDA declined by 2.4%*, with declines in all markets except Turkey Netherlands being partially offset by declines in other markets due and the Netherlands, due primarily to lower service revenue and to the challenging economic environment and intense competitive higher acquisition and retention costs partially offset by operating factors. In Turkey service revenue grew by 28.9%* driven by strong cost efficiencies. Africa, Middle East and Asia Pacific Africa, Middle East and Asia India Vodacom Other Eliminations Pacific % change £m £m £m £m £m £m Organic1 Year ended 31 March 2011 Revenue 3,855 5,479 3,971 (1) 13,304 20.0 9.5 Service revenue 3,804 4,839 3,650 (1) 12,292 20.0 9.5 EBITDA 985 1,844 1,170 – 3,999 20.7 7.5 Adjusted operating profit 15 827 430 – 1,272 55.5 8.6 EBITDA margin 25.6% 33.7% 29.5% 30.1% Year ended 31 March 2010 Revenue 3,114 4,450 3,526 (1) 11,089 Service revenue 3,069 3,954 3,224 (1) 10,246 EBITDA 807 1,528 977 – 3,312 Adjusted operating (loss)/profit (37) 520 335 – 818 EBITDA margin 25.9% 34.3% 27.7% 29.9%

Note: 1 Organic growth includes Vodacom at the 2011 level of ownership and excludes Australia following the merger with Hutchison 3G Australia on 9 June 2009.

Revenue grew by 20.0% with an 8.5 percentage point benefit from Organic M&A Foreign Reported foreign exchange rate movements and the full year impact of the change activity exchange change % pps pps % consolidation of Vodacom results from 18 May 2009 partially offset by Revenue – the impact of the creation of the Vodafone Hutchison Australia (‘VHA’) Africa, Middle East and joint venture on 9 June 2009. On an organic basis service revenue grew Asia Pacific 9.5 2.0 8.5 20.0 by 9.5%* despite the impact of MTR reductions and difficult economic environments. The growth was driven by a strong performance in India Service revenue and continued growth from Vodacom and the rest of the region, other India 16.2 – 7.7 23.9 than Egypt where performance was impacted by the socio-political Vodacom 5.8 6.7 9.9 22.4 unrest during the fourth quarter of the 2011 financial year. Other Africa, Middle East EBITDA grew by 20.8% with foreign exchange rate movements and Asia Pacific 7.2 (0.9) 6.9 13.2 contributing 8.0 percentage points of growth. On an organic basis Africa, Middle East and * EBITDA grew by 7.5% driven primarily by growth in India, together Asia Pacific 9.5 2.2 8.3 20.0 with improvements in Vodacom, Ghana, Qatar and New Zealand, partially offset by a decline in Egypt following pricing pressure and EBITDA socio-political unrest. India 15.1 – 7.0 22.1 Vodacom 4.9 4.9 10.9 20.7 Other Africa, Middle East and Asia Pacific 5.1 10.6 4.1 19.8 Africa, Middle East and Asia Pacific 7.5 5.3 8.0 20.8 Adjusted operating profit India 134.0 – 6.5 140.5 Vodacom 5.7 38.2 15.1 59.0 Other Africa, Middle East and Asia Pacific 2.2 29.2 (3.0) 28.4 Africa, Middle East and Asia Pacific 8.6 39.9 7.0 55.5 Business review Performance Governance Financials Additional information 6.7 5.8 6.0 8.5

49 Organic 5 % change % £ 9.3 9.3 8.4 8.4 8.6 8.6 11.1 11.1 14.6 14.6 respectively. (12.4) * and 10.8% and * £m 2010 2010 (205) (298) 4,112 4,112 , 8.2% ,

* 6,689 6,689 17,222 17,222 15,898 15,898 , 6.6% , * £m 2011 (261) (235) 7,313 7,313 ). was driven by the expanding customer customer expanding the by driven was 4,569 4,569 * 5 18,711 18,711 17,238 17,238 Vodafone Group Plc Plc Group Vodafone 2012 Report Annual

2 3 4 3 2 3 Net debt excludes pending credit card receipts. Comparatives are presented on a comparable basis. comparable a on presented are Comparatives receipts. card credit pending excludes debt Net All amounts represent the Group’s share based on its 45% equity interest, unless otherwise stated. otherwise unless interest, equity 45% its on based held share entities Group’s corporate the the represent to amounts only All relates Wireless Verizon to attributable tax the tax of The share partnership. the Group’s on The levied are which taxes state certain and charge. partnership tax Group Wireless the Verizon within included by the is profit pre-tax partnership’s the of share Verizon by Group’s the recorded to was attributable which adjustment revenue non-cash a of impact periods. the future include in rates recognised growth and Organic earned be will that revenue data recognised previously Group’s defer the and to EBITDA Wireless revenue, revenue, service for rates growth organic equivalent the this Excluding 6.4% been have would Wireless Verizon in result of share

Revenue (31 March 2010: US$22.6 billion US$22.6 2010: (31 March 5 base and robust data revenue primarily derived from growth in the the in growth from derived primarily revenue data robust and base smartphones. of penetration challenges competitive the despite strong remained and margin expenses EBITDA The operating in Efficiencies were volumes environment. lower economic from and resulting the costs reflecting acquisition costs customer retention lower customer of level higher a by offset partly smartphones. for demand Verizon increased acquisition, Alltel the for approval markets. 105 regulatory in the of properties part As overlapping and divest network to of sale required the was Wireless completed Wireless Verizon customers, 2010 April million 26 0.9 On encompassing Verizon markets, 26 2010 in June assets 22 On licence billion. US$0.2 in for licences Tele-Network mobile and to Atlantic assets network of a As sale the billion. US$2.4 completed for Wireless Mobility AT&T to markets approximately 79 by reduced remaining the base customer certain Wireless by offset Verizon partially result the basis, 100% a on customers net 2.1 million acquisition. Alltel the to relation in adjustments licence, spectrum a acquired Wireless in Verizon and 2010 Mississippi August 23 On southwest in customers related Corporation, and assets network Communications Centennial by acquisition This owned billion. formerly US$0.2 of Louisiana, consideration cash these for in Inc. coverage AT&T network from Wireless’ Verizon enhance to made was billion US$9.8 two locations. totalled 2011 March 31 at debt net Wireless’ Verizon Group’s share of result in in result of share Group’s Wireless Verizon mobile net million 2.6 reported Wireless Verizon 88.4 million States to United base the In customer the in mobile its improved bringing growth Customer additions customer increase. 3.1% the a of launch 2011, the March following at 31 year financial 2011 the 2011. of quarter February in fourth network Wireless Verizon the on 4 iPhone 5.8% of growth revenue Service Notes: 2 3 4 Non-Controlled Interests Non-Controlled Wireless Verizon revenue Service EBITDA Interest Tax increase increase * percentage point point percentage * . * was supported by competitive tariffs tariffs competitive by supported was * including a 1.7 a including * . Excluding the impact of reclassifications between messaging messaging between reclassifications of impact the Excluding . * driven by South Africa where growth growth where Africa South by driven with growth across all markets except except markets all across growth with * * offset a decline in voice revenue caused by by caused revenue voice in decline a offset driven by growth in Ghana, New Zealand and and Zealand New Ghana, in growth by driven * * 1 * driven by the increase in the customer base and and base customer the in increase the by driven * driven by the increase in service revenue, strong strong revenue, service in increase the by driven * Data revenue in South Africa grew by 41.8% by grew Africa South in revenue Data and data revenue during the year, data revenue grew by 35.9% by grew revenue data year, the during revenue data and

Egypt. In Qatar the customer base reached 757,000 by 31 March 2011, 2011, March 31 by 757,000 reached base The customer the services. Qatar In Vodafone Egypt. using actively MTR of population the of combination a 45% by with driven was revenue unrest service Egypt in socio-political and decline pricing by on part in pressure offset competitive year, financial reductions, 2011 the of Ghana In quarter fourth year. the the during during growth revenue data and customer strong 21.0% of growth revenue service economies of scale which absorbed pricing and cost pressures. cost and pricing absorbed which scale of economies Vodacom 5.8% by grew revenue Service and improved brand awareness. awareness. brand improved and initiatives important of number a and the track on realising remained begin to year integration VHA financial 2011 the consolidated during were completed were operations centre Contact progress merger. the substantial of India, benefits Mumbai of and refit Hobart in major a centres and major two footprint, into retail the of network consolidation for the in suppliers made new was appointed VHA underway. was services. stores managed retail IT and transmission core, services, managed 5.1% by increased EBITDA MTR cuts effective from 1 March 2010 and 1 March 2011. 2011. March 1 and 2010 March 1 from effective cuts MTR 48.9% a by driven was growth revenue data Africa South In Note: 1 India 16.2% by grew revenue Service handset sales and lower interconnection costs, partially offset by higher higher by offset partially costs, interconnection lower and sales handset align expenses. closely operating more to branding its refreshed Vodacom 2011 April 1 On Group. the of that with Pacific Asia and East Middle Africa, Other 7.2% by grew revenue Service benefit from Indus Towers, the Group’s network sharing joint venture. venture. joint sharing network Group’s the customer Towers, mobile Indus average from the in benefit increase in 39.0% fall a a by by offset driven was partially Growth trends, of customer per penetration usage the in stable and increase base an to due in minute per competition rate strong effective and the base customer the into tariffs priced lower market. the following services 3G commercial of launch the network saw subsequent 2011 and February 2010 May in their spectrum 3G activated of had customers the purchase million 1.5 2011 March 31 By build. 3G access. 15.1% by grew EBITDA in data revenue of 35.9% of revenue in data Qatar partially offset by a decline in Egypt resulting primarily from the from the primarily resulting Egypt in decline a by socio-political offset the by partially impacted Qatar also but minute per year. price financial effective lower 2011 the of quarter fourth the during unrest in data usage due to strong growth in mobile connect cards and and cards connect mobile in growth strong to due particularly usage activity, in data commercial financial successful 2011 addition, the In during usage smartphones. voice higher drove customer periods, Net cuts. MTR in off-peak of impact third the the in offset time first partially the which for year levels the during pre-registration to continuing trend returned the with additions year, million. 1.2 financial of 2011 additions the net of with quarter year financial 2011 the of quarter growth fourth revenue service Africa South outside operations Mozambique. and Vodacom’s In Tanzania from of performances Republic strong with Democratic the continued in challenging remain conditions Trading operations. Gateway the and Congo 4.9% by grew EBITDA