Vodafone Germany Open Office

29 September 2016 Disclaimer

Information in this 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. This 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 can be found under the heading “Forward-Looking statements” in our 2016 annual report which can be found on our website www.vodafone.com/investor. This presentation also contains non-GAAP financial information which the Group’s management believes is valuable in understanding the performance of the Group. 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 Group’s industry. Although these measures are important in the assessment and management of the Group’s business, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP measures. Vodafone, the Vodafone Portrait, the Vodafone Speechmark and Vodafone One Net are trade marks of the Vodafone Group. The Vodafone Rhombus is a registered design of the Vodafone Group. Other product and company names mentioned may be the trade marks of their respective owners.

2 Content

Introduction • Strategy and Consumer Mobile • Consumer Fixed • Enterprise • Technology

3 Vodafone Germany Open Office

Dr. Hannes Ametsreiter CEO Vodafone Germany Snapshot Germany

Market Mobile Service Fixed Revenue Revenue Share Share1 €13 Mobile ARPU 5% 83m 20% Population 12% 30% 33% 76% €18.3bn 10% €18.3bn Smartphone FY 15/16 FY 15/16 137% penetration Mobile penetration 223 37% 53% 75% Avg. TV MoU Fixed broadband per day Telefonica penetration Vodafone Deutsche Telekom United Internet Unitymedia Deutschland

5 1. excl. Wholesale Revenue, incl. TV revenues, reflects only the market based on reported figures A leading integrated communications company

Mobile Fixed TV Connections1 (m), Q1 16/17 Broadband customers (m), Q1 16/17 TV Subscribers (m), Q1 16/17

41.9 43.4 +415k YoY +252k YoY +140k YoY 41.1 7.8 12.8 6.4

5.9 2 4.4 2.8 DSL 2.8 Cable 3.1

Strong position in Fastest growing broadband a 3-player market operator

1. Including IoT/MVNO connections 2. Including IPTV and SAT 6 Investments in Project Spring and KDG are paying off

Project Spring Kabel Deutschland Drop call rate 0.77% Cost & Capex Synergies 0.57% 0.46% €300m Run-rate in FY 17/18: on track (80% secured Q1 14/15 Q1 15/16 Q1 16/17 end of FY 15/16) 4G population coverage 89% €3.5bn 78% 70% NPV (increased from €3.0bn): on track

Q1 14/15 Q1 15/16 Q1 16/17 Revenue Synergies

4G customers (m) 8.4 +7% 5.5 Kabel Deutschland organic service revenue growth 1.5 in FY 15/16 – Maintaining strong momentum

Q1 14/15 Q1 15/16 Q1 16/17

7 Turnaround achieved: with growth since Q4 15/16 Organic growth rate vs. previous year (%) Service Revenue Mobile Service Revenue

2.4 Incl. Kabel Deutschland

0.4 1.6 1.6 1.6

(1.2) 0.3 (0.2) (1.8) (1.8) (0.4) (0.3) (3.5) (3.9) (3.5) (1.5) (1.7) (5.7) (5.4) (2.1) (6.8) (6.6) (2.8) (2.8) (3.2) (8.6) (3.6)

(4.8) (5.5) (6.3) (5.6)

(8.0) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 12/13 12/13 12/13 13/14 13/14 13/14 13/14 14/15 14/15 14/15 14/15 15/16 15/16 15/16 15/16 16/17

8 Strong commercial momentum: across segments Service revenue YoY (%)

Total Mobile Postpaid Mobile Prepaid Fixed DSL Fixed Cable Revenue Revenue Revenue Revenue

9.5 1 -0.1pp

+2.8pp +13.6pp +0.0pp +4.3pp 6.6 6.5 1.6 (1.7) (1.7) 1.4 (1.2) (5.2) (0.9)

(12.2)

Q1 15/16 Q1 16/17 Q1 15/16 Q1 16/17 Q1 15/16 Q1 16/17 Q1 15/16 Q1 16/17 Q1 15/16 Q1 16/17

1. Impacted by an accounting reclassification of fixed line revenue. Reported fixed cable growth in Q1 was +9.5%, underlying growth was +6.5%.

9 The future is digital and connected.

10 Our Vision: GIGABIT COMPANY

“#1 in speed and power” “we empower the digital society”

NETWORK AND PRODUCTS BRAND AND CXX EMPLOYEES

Superior infrastructure and Strong, emotional brand and More innovative, focused, team convergent products customer orientation oriented: “winning mindset”

Power to you

11 Vodafone has a unique Gigabit positioning in the German market Mobile Gigabit zone

4G

3G

Fixed Broadband No Fixed Broadband Copper Technologies Ultra-high speed Technologies (>100 Mbit/s, evolving to 12 >1Gbit/s) Attractive, profitable growth opportunities in our core business

Consumer Enterprise

Value Convergence / Growth in fixed Convergence positioning HH penetration

Cloud and More-4-More GigaTV IoT Hosting

Unified Base Continuous growth Base Communications Management in broadband Management UCC

Based on superior infrastructure

Mobile: 4G 4.5G 5G Cable: DOCSIS 3.0 DOCSIS 3.1

13 Differentiation: Customer eXperience eXcellence / CARE

Connectivity Always in control Reward loyalty Easy access

GIGASPEED GIGATRAVEL Legacy2Red Red Button 1st operator offering 1st operator offering worry Biggest mobile base loyalty Direct access to agent 4G Max for ALL mobile free roaming for all new/ campaign in history of – immediate help 24/7 EXAMPLE customers renewed contracts Vodafone Germany

EU roamer penetration Migrating 1.8m customers MeinVodafone app

Speed up to 375MBit/s pushed from 27% to 52% in to new tariff portfolios “connect test” winner with KPI last 12 months this FY. NPS +16 pts. >250m app visits p.a.

14 Fit4Growth: driving efficiency to fuel profitable growth

Consumer product Digitising Services simplification

Enterprise interaction/ Network & IT simplification enhancement

Optimising Process cost procurement spend optimisation

15 Summary: back to growth

• Positioning as Gigabit Company • Leading position and strong commercial momentum in each market segment • Investments in Project Spring and Kabel Deutschland paying off • Differentiation through CXX • Continued efficiency improvement to fuel growth

16 Strategy & Consumer Mobile Dr. Hannes Ametsreiter CEO Vodafone Germany Dr. Andreas Siemen Chief Financial Officer Clear positioning in challenging market environment

Competition Regulatory

• EU Data roaming • More-for-more moves in premium segment • MTR regulation • Theoretical reduction of MTR rate by 50% • High promotional activity would impact service revenue growth by in no-frills segment 1.5ppt, margin impact is c.25% of revenue impact • Proceedings ongoing, decision in December

Vodafone Positioning

• Integrated offering • Covering premium segment via Vodafone brand and no frills market via Otelo • Focus on profitable growth in the direct channels and ‘more-for-more’ customer value enhancement strategy 18 We continue to drive the business back to growth

Postpaid Subscriber Growth Prepaid active base turnaround (m) +8k +350k Active Prepaid base +741k -9.1% -3.0% +1.1% 16.2 16.6 16.6 15.5 FY 2014 FY 2015 FY 2016 Q1 2017 FY 2014 FY 2015 FY 2016 Q1 2017

Customer value through “More-for-More” Excellence in Base management LTEmax 1 million customers proactively migrated into latest portfolio EU roaming Postpay Consumer Mobile • -15% Cancellations  Inflow ARPU +€3 Direct GA share +7pp YoY • +16 Points NPS improvement from 35% to 42% in Q1 16/17  • +200MB Data take -up 

19 Note: Postpaid customers include Enterprise We cover both ends of the two-tier market

Continued differentiation

Premium

• 4G coverage: speed & quality • Convergence offerings • Brand & customer experience

€20-30

No No frills

20 Consumer Fixed

Dr. Manuel Cubero Chief Commercial Officer Florian Landgraf Head of Consumer Fixed Business Clear positioning in challenging market environment

Competition Regulatory

• Risk of “re-monopolisation” • Continued high promotional with vectoring activities • Increasing demand for high speed

Vodafone Positioning

• Converged offering nation-wide • Leveraging speed advantage in cable • Enabling future TV experience 22 Broadband: continuous cable growth & DSL turnaround

Growing DSL base (m) Growing cable base (m) +16k +92k 2.950 -128k +392k +450k 2.822 -17k 2.805 2.821 15% 13% 3.020 3.112 2% 6% 2.178 2.628

FY 13/14 FY 14/15 FY 15/16 Q1 16/17 FY 13/14 FY 14/15 FY 15/16 Q1 16/17 VDSL share %

Convergence offer Unmatched Speed >1000 mbps Convergence gross adds Convergence benefits

HH ARPU 400 mbps 200 mbps? 0 NPS 100 mbps Nov 2015 RedOne GigaKombi Today Tomorrow runrate runrate Churn Vodafone Deutsche Telekom

23 Note: DSL customers and revenues include Enterprise TV business: penetrating stable base with new services

TV direct subscribers (m) Key features 7.3 7.3 7.3 • Continuous increase of Premium TV penetration

VOD PAY TV DVR 4 PARALLEL HD RECORDINGS REC • Increasing TV ARPU through incremental product take-up

25% 24% • Re-aligned TV product portfolio in August 23% 2016, bundling DVR to entry level product FY 13/14 FY 14/15 FY 15/16

Premium TV Premium TV share %

Vodafone maintaining largest TV subscriber base in Germany 24 Fixed Line: growth opportunities

Leverage Cable advantage Giga TV – a new TV experience Non-Cable footprint

• 400 Mbit/s today and we • All content • All Features • Maximize VDSL share keep our powder dry for • All networks • All Screens • GigaTV for DSL base more! • Leverage 4G in DSL white • Docsis 3.1 to enable >1Gbit/s spots

25 Enterprise

Alexander Saul Director Enterprise Business Unit Anna Dimitrova Director Strategy & Digital Clear positioning in challenging market environment

Competition International leverage

• VGE: unique global positioning • Mainly a two player market with Vodafone Global Enterprise • Pricing pressure continues • Combined mobile/fixed offer from single source becomes standard

Vodafone Positioning

• Opportunities in Fixed, Cloud & Hosting and Unified Comms • Further expand position as world leading mobile provider for IoT

27 Vodafone Enterprise Strategy to drive business back to growth

Market size and share (FY 15/16) Enterprise Strategy: Top Priorities

Others Others

High potential Strong market for Vodafone position in to grow to fair mobile share

Mobile Fixed For illustrative purposes only 28 Enterprise market trends: growth opportunities

Enterprise market trends Vodafone Enterprise solutions

IoT reaches mainstream Vodafone IoT… • IoT installed base of 26 billion units1 expected by 2020 …with substantial potential for • Shift from functionality and performance further growth by moving towards to quality of information vertical solutions

Digitisation drives mobility One Net Business… • Unified Comms solutions offer flexibility, efficiency and effective collaboration …is our core differentiator in Unified • All IP enables seamless communication Comms

Cloud is driving corporate strategies Dedicated Cloud & Hosting • 7 out of 10 German companies use Line of Business… Cloud services • Expected benefits are: cost advantages, …is building market credibility shorter TTM and worldwide availability as we grow

1. Source: Gartner estimate of global IoT units (cellular and non-cellular) 29 Technology

Dr. Eric Kuisch Chief Technology Officer Gerhard Mack Chief Commercial Operations Officer The Vodafone Network Today | Premium Mobile Network

of Germany Fastest modernised 24,400 Vodafone Network of all Base station sites Download Speed increased by 60% Big Cities since Apr. 2014 of all Motorways Lowest >90% of base Dropped Call Rate Drops reduced by 40% stations with high LTE population since Apr. 2014 coverage at 89% capacity backhaul

Connect test confirms Best Voice Network – LTE with 375 Mbps almost no dropped calls currently available in 22 cities, 1 Gbps in pilot areas by end of 2016

Voice over LTE Nationwide available as 8.4m 4G customers (1.5m in April 2014) first provider in Germany + 240% Data traffic since Apr. 2014 VoLTE and VoWiFi customers approaching 1 million

31 The Vodafone Network Today | New Opportunities with our Cable Network

2 Playout Centres & 3 Data Centres over 400,000 km Fibre- and Coax-Network

26 B-PoPs 151 TV (TPoP) 5m households 323 Docsis (CPoP) Ca. 8.4m 242 VoD (VPoP) with up to 400 Mbps cable speed Connected Homes (12.3m total marketable households)

1,800 Hubs >1,400,000 WLAN Hotspots

6000 FN 31,400 km 134,000 Cable Ducts Amplifiers . Highly reliable network (99.9%) . Network is under- ground, providing high robustness and stability . End-to-end monitoring and service approach (including CPE specification, manned installation and repair) 2.2 m Splitter / Branches Ca.15.3 m Homes Passed . Highly standardised network components due to uniform network history

32 32 We are the blueprint for a digital agenda 2 years ago…

100 Mbps 50 Mbps 50 Mbps

VDSL Cable LTE

33 We are the blueprint for a digital agenda Today… 400 Mbps Technology-Mix of the future 375 Mbps already today… 225 Mbps

100 Mbps 50 Mbps 4,5G Vectoring Cable LTE

34 We are on our way to 1 Gbps 1 Gbps the Gigabit-Society Cable and 5G as leading technologies to exceed the 400 Mbps increasing demands of our 375 Mbps customers… 250 Mbps 100 Mbps 5G Vectoring Cable LTE

35 Ensure Gigabit-Readiness | Network Innovation & Product Roadmap

Spectrum Utilisation Competitive Spectrum positioning

One Sales LTE Advanced Foundation • Vodafone Crystal Clear Technology (EVS) • Next generation Sales • Carrier Aggregation • X-channel sales flows • LTE-V(ehicle) • 360° view on products • NB-IoT and offers

Cable Network Giga TV Evolution • Superior user • DOCSIS 3.1 experience in • Digitisation Video/TV anywhere

One Net Business • Digital Workplace from the Cloud • Full Unified Communication and Collaboration Feature Set 36 Thank you