Vodafone Group Results: for the year ended 31 March 2019

14 May 2019 Disclaimer

By watching this webcast, you agree to be bound by the following conditions. You This presentation also contains non-GAAP financial information which Vodafone’s may not disseminate these slides or this recording, in whole or in part, without the management believes is valuable in understanding the performance of the prior consent of Vodafone. Vodafone Group. However, non-GAAP information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures Information in this presentation relating to the price at which relevant investments disclosed by other companies, including those in the Vodafone Group’s industry. have been bought or sold in the past or the yield on such investments cannot be Although these measures are important in the assessment and management of the relied upon as a guide to the future performance of such investments. Vodafone Group’s business, they should not be viewed in isolation or as This presentation does not constitute an offering of securities or otherwise replacements for, but rather as complementary to, the comparable GAAP measures. constitute an invitation or inducement to any person to underwrite, subscribe for or References to Vodafone are to Vodafone Group Plc and references to Vodafone otherwise acquire or dispose of securities in any company within the Vodafone Group are to Vodafone Group Plc and its subsidiaries unless otherwise stated. Group. Vodafone, the Vodafone Portrait, the Vodafone Speech Mark, Vodafone Broken This presentation contains forward-looking statements, including within the Speech Mark Outline, Vodacom, Vodafone One, The future is exciting. Ready? and meaning of the US Private Securities Litigation Reform Act of 1995, which are M-Pesa, are trade marks owned by Vodafone. Other product and company names subject to risks and uncertainties because they relate to future events. These mentioned herein may be the trade marks of their respective owners. forward-looking statements include, without limitation, statements in relation to 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 this presentation.

2 Overview

• Good growth in most markets, competition in Spain/Italy & headwinds in South Africa

• FY 19 guidance achieved

• Reduced financial headroom given weaker revenue growth and higher spectrum costs in the year

• Rebasing the dividend to 9 eurocents per share in order to: – Rebuild headroom, supporting our transformation – Accelerate deleveraging to the low end of our 2.5x-3.0x range – Secure a progressive dividend

• Mid-term FCF ambition: new LTIP target of €17.7bn (incl. Liberty assets)

3 FY 19: executing at pace on our strategic priorities

Accelerating Deepening Improving digital Portfolio customer asset & radical management engagement utilisation simplification

1m 50% 5G active India Broadband net adds of the €1.2bn net EU VIL JV completed opex target already network sharing Successful VIL rights issue actioned in the UK, IT & ES Indus Towers merger on track Record low Simplified IBM, ARM & AT&T New Zealand Mobile contract churn Price plans in DE/ES partnerships €2.1bn disposal

All guidance metrics achieved

All growth rates in this document are on an IAS 18 basis, organic and year-on-year, unless otherwise stated, with Vodafone India and Vodafone Qatar excluded from organic growth calculations 4 Driving consistent commercial performance, record low mobile churn

Group mobile contract churn (%) Group fixed broadband customers1 (m)

18.0 17.4 16.1 16.6 14.7 16.0 16.0 13.4 12.0 14.8

FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19

H1: 384k • Consumer NPS lead/co-lead in 16 out of 20 markets Net additions 1.3 1.3 1.3 1.0 H2: 655k (including 5 of our top 6)

1. Excludes VodafoneZiggo 5 Good EBITDA growth in most markets, Italy stabilising in H2

FY 19 EBITDA growth (%)

11.3 11.0 7.6 4.3 1.9

(5.8)

(23.5) UK¹ Other AMAP Other Europe Germany² Vodacom Italy Spain

Service revenue growth (%) 0.6 5.2 2.1 1.5 3.8 (5.9) (6.4)

1. Adjusted for handset financing and one-off settlement in the prior year 2. Adjusted for one-off settlement in the prior year 6 Spain: commercial performance stabilising, launched unlimited

-8.9% Q4 service revenue growth (Q3 -7.4%) Vodafone contract net ports (000s) Movistar + Orange + other MasMovil

Competing effectively in premium segments Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Contract port positive against Tef and Orange Mobile Successful commercial repositioning in value segment (3) Stable ports, Lowi c.30% market share1 (+18pp yoy) (55) (56) Unlimited data plans launched Speed differentiated, value accretive (103) Fixed Operating model transformation underway (15) 1,000 FTE exits, network sharing with Orange, (28) (38) content costs reduce in H2

(79)

1. Mobile net adds market share in value segment in H2 7 Italy: mobile pressure moderating, strong fixed customer growth

-6.1% Q4 service revenue growth (Q3 -4.6%) Market net ports (m)

Reduced by c.50% MNP activity now below ‘pre-new entrant’ levels 5.5 3.9 3.8 Churn reducing to Q4 levels of last year 2.9

Spin down pressure Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 Prepaid ARPU -5.8% Headline price evolution (€) Price increases in value segment and 2nd brands Vodafone Ho Competitor 1 Competitor 2 Vodafone to €18.99 and Ho to €12.99 20 Strong fixed momentum 15 +83k broadband net adds in Q4 (FY +282k) 10 Cost actions support margins 5 Opex down 10% YoY; 1,130 FTE efficiencies Sep-18 Dec-18 Mar-19

8 Financial review Margherita Della Valle Group Chief Financial Officer Full year financial highlights (IAS 18 basis)

Underlying growth Service revenue Adjusted EBITDA Adjusted EBIT Free cash flow (€bn) (€bn) Underlying (€bn) Underlying (€bn) Pre-spectrum Post-spectrum & restructuring

+0.3%1 +3.1%1 +9.4%1

41.1 14.7 14.1 39.2 4.8 4.5 5.4 5.4

13.4 13.8 4.2 3.8 4.0 4.4

FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 18 FY 19

Growth despite pressures Underlying EBITDA margin1 Driven by adjusted EBITDA Stable in Italy & Spain +50bps YoY growth

1. Organic growth excluding UK handset financing and settlements in the UK and Germany during the prior year 10 Adjusted and reported earnings

FY 18 FY 19 (€m) IAS 18 IFRS 15 Adjusted EBIT 4,827 4,253 Impairment loss - (3,525) Includes Spain (€2.9bn) Associates 389 (348) Includes 7 months of Vodafone Idea Restructuring (156) (486) Amortisation of brand assets/other (974) (583) Other income and expense 213 (262) Operating profit 4,299 (951) Financing costs/income (389) (1,655) Mark to market losses on MCB put options & FX movements Tax expense 879 (1,496) Includes Spanish deferred tax asset write-down of €1.2bn Non-operating income and expense (32) (7) Group effective tax rate 24.4%, mid-term rate still low to mid-20s Discontinued operations (1,969) (3,535) €3.4bn loss on India disposal following merger with Idea Non-controlling interests (349) (376) Profit/(loss) for the period 2,439 (8,020) Adjusted earnings1 3,218 1,451 Weighted average number of shares2 (m) 27,770 27,607 26,771m ex. mandatory convertible bonds (‘MCBs’) Adjusted earnings per share (eurocents)1 11.59 5.26 Primarily reflects lower adjusted EBIT and Associates

1. Reported excluding impairment losses, the loss on disposal of Vodafone India, restructuring costs, significant one-off items and amortisation of acquired intangible customer bases and brand intangible assets 2. Weighted average number of shares outstanding includes a dilution of 700 million shares (2018: 1,013 million shares) following the issue of £2.9 billion of mandatory convertible bonds in February 2016 and 136 million 11 shares following the placing in March 2019 of subordinated mandatory convertible bonds totalling £1.72 billion with a 2 year maturity date due in 2021 and £1.72 billion with a 3 year maturity date due in 2022. Service revenue growth

Quarterly trends (%)1 Impact of IFRS 15 in FY 19 (%)1 IAS 18 basis (ex. UK handset financing) IFRS 15 basis2 IAS 18 basis (ex. UK handset financing) IFRS 15 basis

1.1 0.9 1.5 Germany 0.8 0.5 0.3 Italy (5.9) 0.1 (6.2) 0.0 0.6 UK 0.3

(6.4) Spain (5.8) (0.6) (0.7) Vodacom 3.8 Q1 19 Q2 19 Q3 19 Q4 19 3.9

Europe (1.1) • Q4 drags from (1.4) 6.1 - UK: phasing of project revenues in the prior year Rest of World 6.4 - Spain: full impact of promotional discounts in Q3 Group 0.3 - Italy: MTR cut & phasing of loyalty programme 0.1

1. Excluding the benefit of a German legal settlement in Q4 18 2. Q2 19 and Q3 19 IFRS 15 service revenue growth rates restated from 0.3% to flat and 0.4% to 0.3% respectively 12 Service revenue growth drivers

FY 19 organic service revenue growth contribution (ex. HF & MTRs) (pp)

1.1

0.2 1.0 (1.3) 0.3 (0.7)

Europe Vodafone Emerging Italy/Spain Wholesale FY 19 Consumer Business Consumer Consumer & MTRs¹ (ex. HF & settlement) (ex. IT/ES)

% of service 33% 30% 16% 16% 5% revenue

1. Includes common functions and eliminations 13 Over 50% of €1.2bn EU opex target actioned

EBITDA growth (€bn)

Progress against EU opex target 0.4 13.8 0.1 Still to be €0.4bn2 delivered 0.1 (0.2) 13.4 delivered in FY 19

>€1.2bn of which: Organic • >50% digital opex grew net reduction • 30% leveraging scale 5% vs. inflation of target 9%

FY 18 Direct margin Net A&R Europe opex¹ RoW opex FY 19 >€0.2bn of further underlying & other underlying actions already EBITDA EBITDA executed

1. Europe and common functions opex 2. Excluding one-off provisions from changes in labour regulation 14 Digital case study: rolling out chatbots (TOBi) in Italy

Automated voice End-to-end Human contacts TOBi handover response contacts TOBi contacts (no TOBi) to human contacts

TOBi CHAT TOBi VOICE WHATSAPP TOBi VOICE >90% of contacts (for fixed) (for mobile) via TOBi Benefits: 12

1 10 66% Contacts now automated

8 YoY reduction in -15% 6 frequency of contact per customer in H2

4 TOBi -19% YoY reduction in Customer 2 Operations costs in FY 19 Human contacts - Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

1. As at March 2019 15 A fourth consecutive year of EBITDA margin expansion

Group adjusted EBITDA margin (%)

IAS 18 basis (ex. HF & settlements)

30.6% 31.1% 29.7% 30.6% 29.0% 28.3% 28.4%

FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Reported EBITDA margin 31.6% 31.4%

16 Mid-teens capital intensity guidance re-iterated

Evolving capex mix (%) Mid-term Success based (CPE) Maintenance (Network & IT) 16% 28% Investing in 5G roll-out FY 19 16% capital 16% IT capabilities Stable capacity >50% of IT estate investments intensity transformed 7% Coverage Limited fixed build 11% Digital efficiencies 22% in maintenance Fixed

Capacity

17 Network sharing opportunities

Unlocking large industrial synergies

Passive Deep passive Active Number of sharing (incl. backhaul) sharing sites1 (Towers) (ex. major cities) • Existing UK partnership expanded to 5G, unwinding active sharing UK (CTIL) 14,000    in major cities Spain 10,300    • New agreements in Spain and Italy (c.1/3 of EU towers ex. UK) Driving c.€200m of annual cost and capex savings Italy    11,100 • Rest of Europe in progress Germany 30% shared 19,200 • Typically breakeven by YR3, majority of benefits by YR5 EU cluster 40% shared 19,200 (incl. VFZiggo)

Europe total 73,800

MoU signed, negotiations ongoing

1. Controlled sites, excluding third party sites 18 Free cash flow

FY 18 FY 19 (€m) IAS 18 IAS 18 Adjusted EBITDA 14,737 14,139 Capital additions (7,321) (7,227) Working capital (584) (33) Handset financing reversal offset by sale of handset receivables Net interest (753) (502) VHA guarantee fees of €288m in FY 19 Taxation (1,010) (1,040) Dividends received from associates & investments 489 498 Dividends to non-controlling interests (310) (584) Includes €269m Egyptian dividend in FY 19 Other1 169 192 Free cash flow (pre-spectrum) 5,417 5,443 €5.5bn at guidance FX Spectrum (1,123) (837) UK, Spanish & Italian 5G spectrum acquired Restructuring (250) (195)

Free cash flow 4,044 4,411

1. Relates to non-cash movements in share based payments and disposal of capital assets 19 Pro-forma leverage 2.9x post Liberty

Net debt (€bn)

~2.9x pro-forma leverage post LBTY 31.5 0.6 27.0 (1.8) 2.8 1.2 (2.1) 4.1 (0.1) (5.4) (3.8)

March KDG put VZ loan FY 19 Mandatory Dividends Spectrum M&A¹ Partial MCB FX/ March 2018 option note FCF Convertible (including buyback restructuring 2019 reclassified accruals) /other

1. M&A relates primarily to the formation of Vodafone Idea 20 Outlook

FY 20 EBITDA guidance1 (€bn)

Low single 13.8-14.2 14.1 digit organic EBITDA growth (0.2) 13.7 (0.2)

FY 19 UK handset Impact from FY 19 FY 20 EBITDA financing IFRS 15/16 (rebased) EBITDA guidance

Non-cash

Adjusted EBITDA of €13.8-14.2bn, implying low single digit organic growth Free cash flow pre-spectrum of at least €5.4 bn

1. We have based guidance for the financial year ending 31 March 2020 on our current assessment of the global macroeconomic outlook and assume foreign exchange rates of €1:£0.87, €1:ZAR 16.4, €1:TRY 6.4 and €1:EGP 19.7. Guidance excludes the impact of licence and spectrum payments, material one-off tax-related payments, restructuring payments, changes in shareholder recharges from India and any fundamental structural change to the Eurozone. It also assumes no material change to the current structure of the Group. Actual foreign exchange rates may vary from the foreign exchange rate assumptions used. 21 Free cash flow ambition

Long-term incentive plan (LTIP) targets New LTIP target & implied dividend cover1 Cumulative 3 year FCF pre-spectrum (€bn) (€bn)

Achieved Above 100% target On-target 19.6 17.71 17.7 17.0 15.9 15.1 15.2

3x new dividend 1.8x3 dividend + historic average cover spectrum2

FY 16 FY 17 FY 18 FY 19 Minimum Target Maximum

1. New LTIP includes acquisition of Liberty Global assets (post restructuring costs) 2. 10 year average cash spectrum spend €1.2bn per annum 22 3. Dividend cover calculated as cumulative 3 year free cash flow less historic average cash spectrum spend less normalised cash restructuring charges of c. €0.2 billion per annum, divided by 3 years of dividend payments Prioritising deleveraging to rebuild headroom

Deleveraging drivers (€bn) 2.9x Lower end FY 19 of 2.5-3.0x EBITDA range 3.0x leverage + Spectrum range 0.8x Restructuring (old dividend) 2.5x EM FX volatility 0.2x - EBITDA growth Asset sales 0.5x

(1.1x)

FY 19 pro-forma New 3yr New Potential MCB leverage¹ LTIP target² 3yr dividend buyback

Targeting the lower end of our 2.5x-3.0x range in the next few years

1. Includes the acquisition of Liberty Global’s assets (€18.4bn) and the remaining €1.0bn MCB share buyback 23 Strategy update Nick Read Group Chief Executive Our purpose We connect for a better future

Deeper customer engagement Our strategy Europe Vodafone Emerging Consumer Business Consumer

Scaled platforms & partner of choice

Europe’s leading Loyalty and customer TV and content engagement Leading global M-Pesa Africa’s largest distribution platform MyVodafone App IoT platform payment platform

22m TV customers1 50m users2 85m sims 37m customers

Best Gigabit Network Digital First Radically Simpler

1. Includes VodafoneZiggo and proforma for the acquisition of Liberty Global’s Unitymedia asset in Germany and UPC assets in Central and Eastern Europe 2. Includes JV’s and associates 25 Best gigabit network: Liberty transaction enhances NGN footprint

European marketable homes (m) Strengthening our reach and economics Owned NGN Strategic wholesale NGN ADSL network partnerships1 wholesale Germany/CEE acquisition • Constructive discussions with EC continue • 300Mbps wholesale broadband access agreement with Tef D 145 • On track to complete in July 139 23 32 122 Gigabit upgrades (DOCSIS 3.1) 108 • Spain complete 59 • Germany 66% of current footprint 64 • Netherlands underway 9 7 Strategic partnerships 54 36 OpenFiber >3m homes passed Network sharing agreement with Orange, expands homes FY 18 FY 19² passed by an additional 1m, opportunity to co-invest Pro-forma for Liberty assets

1. Includes Telefonica (selected areas in Spain) and Open Fiber (Italy) 2. Includes VodafoneZiggo and proforma for the acquisition of Liberty Global’s Unitymedia asset in Germany and UPC assets in Central and Eastern Europe 26 Best gigabit network: launching Europe’s largest 5G network

10x faster Game of Thrones season download in 2 minutes

Real time Multiplayer e-gaming on the go, 5G smart glasses

1/10th cost Enabling affordable speed tiered unlimited data

Digital Society Remote healthcare, smart cities, driverless cars

69% of EU sites1 enabled for 5G (SRAN & backhaul) We are 5G Ready First to announce 5G launch in the UK Roll-out to 50+ cities in 9 markets by end of FY 20

1. Sites in cities with more than 100k population 27 Best gigabit network: network sharing benefits

Unlocking tower monetisation options (% of towers) Customers • Broader network coverage outside major cities • Faster 5G deployment enabling Germany 26 ES, IT & UK new experiences No discussions Active/passive sharing, during spectrum exploring tower 48 Digital society auction monetisation options • Faster 5G deployment boosts economic productivity 26 • Lower environmental impact (fewer sites, less equipment) Other Europe (Inc. NL) Vodafone Exploring network sharing/tower options • Industrial synergies • Maintaining network differentiation in major cities

28 49% Europe Consumer: simplification, selling ‘one more product’ of group service revenue

Principles: Spain mobile plans Unlimited Super Unlimited Total Unlimited 3GB 6GB Improve customer 2Mbps 10Mbps Full speed €19.99 €29.99 and sales experience €40.99 €45.99 €49.99

Migrate customer base Deeper customer engagement and remove legacy

Accretive to ARPU, upsell Network Fixed Content Roaming Devices and reduce discounts experience

Engage on additional services

A single commercial approach, tailored to local customer needs

29 49% Europe Consumer: scaled platforms of group service revenue MyVodafone Vodafone TV

• 22m1 TV customers across Europe • Moving to a single platform post Liberty Instant Simple Personal Expert acquisitions, VTV launched in 4 markets2 • Content distribution / aggregation, partner of choice

• MyVodafone app 50m unique customers • Primary customer support channel • Personalised product and service offers • Loyalty programs: e.g. Happy in IT (9m users)

1. Includes VodafoneZiggo and proforma for Liberty Global acquisitions 2. ES, IT, GR and NZ 30 30% Vodafone Business: fixed and digital services offset mobile pressure of group service revenue FY service revenue growth (%)

Total 0.3 Key drivers:

• SOHO/SME impacted by lower consumer prices Mobile¹ (2.2) • Pressure on large corporate renewals

• Gaining market share 1.6 Fixed² • SD-WAN3 launched

• Automotive industry slowdown IoT 9.7 • FY connectivity revenues +14.5%

• Significant account wins Cloud & Hosting 23.5 • Partnership with IBM • Developing digital solutions for SOHO

1. Mobile excluding IoT; including IoT, mobile was -1.3% 2. Fixed excluding Cloud & Hosting; including Cloud & Hosting fixed was +3.8% 31 3. Software Defined Wide Area Networking 30% Vodafone Business: growth drivers of group service revenue Fixed market disruptor: SD-WAN Building a global IoT platform

Vodafone addressable market (€bn)1 Legacy IP VPN SD-WAN (incl. services)

8.3 7.4 • Harmonised IoT products and services 6.7 7.0 6.3 6.5 roadmap for Auto sector

• Enables SoC-level connectivity for any application, at lower costs FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 • Vodafone as the default connectivity provider • Window of opportunity to replace legacy IP-VPN technology and displace traditional fixed suppliers • Vodafone’s global platform enables quicker speed to market Best in class global coverage in 180+ countries at a lower cost (‘Leader’ in Gartner Magic Quadrant)

1. Source: Gartner 32 16% Emerging Consumer: data services and M-Pesa supporting growth of group service revenue Key value drivers M-Pesa: Largest payment platform in Africa2

Customers (m) Customers Number of transactions per annum

M-Pesa M-Pesa +4% YoY African card payments PayPal No.1 African (Global) bank 37m 11bn +62% YoY 9bn +13% 20m 8bn YoY 77 14 Vodacom 39 23 Safaricom Platform for growth

Data users¹ 4G customers¹ M-Pesa customers

Penetration 68% 34% 41% Consumer platform Enterprise Financial services Mobile commerce P2P & international B2B, bank transfers, bills, Loans, handset financing, Merchant in-store transfers salaries insurance and online

1. Registered 4G customer base and includes Turkey, Vodacom and Egypt 2. Source: GSMA 2018, McKinsey Financial Services Report, eMarketer 33 Summary

• Moving at pace on the implementation of our strategy • More consistent commercial performance to support gradual revenue recovery • Digital transformation accelerating, confident of delivering €1.2bn opex reduction target by FY 21 • Improving asset utilisation through network sharing deals in Europe, exploring tower monetisation options • Germany/CEE acquisition on track to close in July 2019, >€6bn cost synergies • Rebased dividend to rebuild financial headroom, targeting the lower end of our 2.5x - 3.0x range in the next few years, 3 year FCF LTIP target of €17.7bn

FY 20 outlook: continued growth • Adjusted EBITDA of €13.8 - €14.2bn, implying low single digit organic growth • Free cash flow (pre-spectrum) at least €5.4bn

34 Appendix

35 Germany: continued operational momentum and EBITDA growth

Actions Outcomes Mobile contract and broadband net adds (000s) Investing for network leadership Mobile contract Fixed broadband DOCSIS 3.1 upgrade in 66% of footprint 258

Growing in higher value channels 212 208

Direct >48% of gross adds (+4% YoY) 165 Driving convergence 1.5m converged customers, 20% of broadband base 79 84 76 69 73 46 Digital transformation delivering savings FY EBITDA +4.3%1, margin +90bps YoY Q4 17/18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19²

1. Excludes legal settlement from prior year 2. Contract mobile adjusted for base cleanse (reported Q4 18/19 +60k) 36 UK: strong commercial momentum, margin improvement

Actions Outcomes Mobile contract and broadband net adds (000s) Consumer focus on fixed and youth segment Mobile contract3 Fixed broadband

Broadband net add leadership 109 104 Business growing in fixed, mobile pressure continues Fixed +2.4% in H2 77 66

Deepening customer engagement 53 50 44 46 Launched VeryMe app, churn fell 1.3ppt1 YoY 40

Driving efficiencies, partly through digitalisation 6 FY EBITDA +11.3%2, margin +2pp YoY Q4 17/18 Q1 18/19 Q2 18/19 Q3 18/19 Q4 18/19 • FY mobile contract net adds 3x prior year

1. Adjusted for phasing out of Talkmobile customers 2. Adjusted for legal settlement in the prior year and excludes handset financing 37 3. Adjusted for the phasing out of Talkmobile customers and base cleanse in Q2. Reported contract net adds in FY 17/18: Q4 -14k, and in FY 19: Q1 +60k, Q2 +86k, Q3 +92k, Q4 +26k Vodacom: SA pressure offset by strong international performance

Actions Outcomes Service revenue growth (%) OOB regulation from 1 March 2019 South Africa Internationals Partially offset by price increase in postpaid 15.0

Continue to migrate customers to more in-bundle usage 11.1 11.1 9.4 9.5 866m data bundles sold, launched music platform 10.2

5.2 Digitalisation supporting cost efficiencies 4.9 4.3 Digital sales 8% - medium term target 25% 2.2 0.3 Continued strong growth in Internationals (24% of Group) Driven by customer, M-Pesa and data growth (0.9) Q4 17/18 Q1 18/19 Q2 18/19 ¹ ² Q3 18/19 Q4 18/19

1. Underlying growth in Q2 18/19 excluding the impact of a one-off benefit relating to a change in revenue deferral policy for new ‘plus’ plans. Reported growth was 4.3% in South Africa 2. Underlying growth of 10.2% in Q2 18/19 excluding the impact of lapping the devaluation of the Congolese Franc in the prior year. Reported growth was 15.0% 38 Other markets

Europe Cluster VodafoneZiggo VodafoneIdea (12% of Group service revenue)

Q4 service revenue 1 2 growth (%) +1.1 -1.0 +0.1

172 498 168 • Added 5.4m 4G customers; total FY customer net 4G base now 80.7m, 4G adds (000s) coverage up to 65% Higher customer losses; low 103 • ARPU customer disconnections post minimum recharge fees Mobile Contract Fixed broadband Mobile contract Converged • 60% of synergy target achieved to date • Q4 EBITDA +39% QoQ excl. one- Financial and • FY EBITDA +7.6%, margin +1.1ppt • Q1 OCF +3.4% off items; u/lying EBITDA commercial • Mobile churn at <10% in 6 markets • 1.1m converged customers; 70% margin 13.5% performance • Q4 fixed +3.3% mobile main brand / 33% fixed • Successful rights issue, €3.2bn • 1yr ahead of synergy targets raised

1. Based on US GAAP 2. Quarter on quarter Q4 organic service revenue growth 39 Pro-forma European NGN footprint1

Household coverage (m)2 Owned Strategic partnership3 Acquired assets Wholesale % Household coverage

75% 70% 78% 88% 63% 93% 38%

6.9

11.0 12.0 13.6 28.2

12.8 3.4 10.3 0.3 7.2 6.4 3.1 2.9 Germany Italy Spain UK Portugal VodafoneZiggo NLJV CEE¹

122m Households passed with NGN (incl. wholesale) 54m Households passed with own NGN 73% Coverage 32% Coverage

1. Includes VodafoneZiggo and pro-forma adjustments for the announced acquisition of Liberty Global’s Unitymedia asset in Germany and UPC assets in Central and Eastern Europe 2. As at the end of March 2019. Excludes 4.2m wholesale & self built NGN homes passed in Greece and Ireland 40 3. Of the 3.7m homes passed by Open Fiber, 3.4m were marketable by Vodafone at the end of March 2019 Taxation

(€m) FY 18 FY 19

Taxation 879 (1,496) Deferred tax assets - Luxembourg (330) (488) Deferred tax following revaluation of investments in Luxembourg Write off of a deferred tax asset in Spain following revised outlook for De-recognition of deferred tax assets in Spain - 1,166 the business Amortisation of deferred tax assets 304 320 Use of tax assets in Luxembourg Tax on the Safaricom transaction 110 - CGT on sale of Safaricom to Vodacom Additional deferred tax assets recognised (1,603) - Recognition of tax assets in Luxembourg Other (188) (206) Adjusted tax expense (828) (704) Adjusted effective tax rate 20.6% 24.4%

41 Financing costs

(€m) FY 18 FY 19

Net financing costs (389) (1,655) Mark to market – mandatory convertible bonds (134) 233 Foreign exchange1 (322) 190 Adjusted net financing costs (845) (1,232) Other mark to market of derivative positions 107 190 Interest expense arising on settlement of outstanding tax issues (11) (1) Net financing costs before settlement of outstanding tax issues (749) (1,043) Other FX/FV including Share buyback irrevocable (41) 52 Liberty Global financing costs - 240 Other 27 (10) Underlying net financing costs excl. Liberty Global (a) (763) (761) Average net debt (b) (30,024) (30,894) Net cost of debt2 2.5% 2.5%

1. Comprises foreign exchange rate differences reflected in the income statement primarily in relation to sterling and US dollar balances 2. Cost of debt: ((a/b)x2) x 100 42 Bond maturity profile1

Average life of bonds: 10.5yrs (including hybrids to call date) (€bn) Senior Hybrid

12

10

8

6

4

2

0 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40+

1. As at 31 March 2019 43 Forward-looking statement

This presentation, along with any oral statements made in connection therewith, contains “forward-looking the Vodafone Group of, or the rates the Vodafone Group may charge for, terminations and roaming minutes; the statements” including within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect impact of a failure or significant interruption to the Vodafone Group’s telecommunications, networks, IT systems to the Vodafone Group’s financial condition, results of operations and businesses and certain of the Vodafone or data protection systems; changes in foreign exchange rates, as well as changes in interest rates; the Vodafone Group’s plans and objectives. 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 In particular, such forward-looking statements include, but are not limited to, statements with respect to: divestments of Vodafone Group businesses and assets and the pursuit of new, unexpected strategic opportunities; expectations regarding the Vodafone Group’s financial condition or results of operations; expectations for the the Vodafone Group’s ability to integrate acquired businesses or assets; the extent of any future write-downs or Vodafone Group’s future performance generally; expectations regarding the Vodafone Group’s operating impairment charges on the Vodafone Group’s assets, or restructuring charges incurred as a result of an environment and market conditions and trends; intentions and expectations regarding the development, launch acquisition or disposition; the impact of legal or other proceedings against the Vodafone Group or other and expansion of products, services and technologies; growth in customers and usage; expectations regarding companies in the mobile telecommunications industry; loss of suppliers or disruption of supply chains; spectrum licence acquisitions; and expectations regarding, service revenue, adjusted EBITDA, free cash flow, developments in the Vodafone Group’s financial condition, earnings and distributable funds and other factors that operating expense, capital intensity, cash spectrum spend, spectrum amortisation charge, capital expenditure, and the Board takes into account when determining levels of dividends; the Vodafone Group’s ability to satisfy working foreign exchange movements. capital and other requirements; and/or changes in statutory tax rates and profit mix. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such Furthermore, a review of the reasons why actual results and developments may differ materially from the words as “plans”, “targets” “gain”, “grow”, “continue”, “retain” or “accelerate” (including in their negative form). By expectations disclosed or implied within forward-looking statements can be found under the headings “Risk their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty factors” and “Forward-looking statements” in the Vodafone Group Plc Half-Year Financial Report for the six because they relate to events and depend on circumstances that may or may not occur in the future. There are a months ended 30 September 2018 and “Forward-looking statements” and “Risk management” in the Vodafone number of factors that could cause actual results and developments to differ materially from those expressed or Group Plc Annual Report for the year ended 31 March 2018. The Annual Report and Half-Year Financial Report implied by these forward-looking statements. These factors include, but are not limited to, the following: external can be found on Vodafone’s website (vodafone.com/investor). All subsequent written or oral forward-looking cyber-attacks, insider threats or supplier breaches; changes in general economic or political conditions in markets statements attributable to Vodafone, to any member of the Vodafone Group or to any persons acting on their served by the Vodafone Group and changes to the associated legal, regulatory and tax environments; increased behalf are expressly qualified in their entirety by the factors referred to above. No assurances can be given that competition; increased disintermediation; the impact of investment in network capacity and the deployment of the forward-looking statements in or made in connection with this presentation will be realised. Any forward- new technologies, products and services; rapid changes to existing products and services and the inability of new looking statements are made as of the date of this presentation. Subject to compliance with applicable law and products and services to perform in accordance with expectation; the ability of the Vodafone Group to integrate regulations, Vodafone does not intend to update these forward-looking statements and does not undertake any new technologies, products and services with existing networks, technologies, products and services; the obligation to do so. Vodafone Group’s ability to grow and generate revenue; a lower than expected impact of new or existing products, services or technologies on the Vodafone 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 Vodafone Group’s ability to expand its spectrum position or renew or obtain necessary licences and realise expected synergies and associated benefits; the Vodafone 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

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