14 Vodafone Group Plc
Morgan Stanley
BNP Paribas Exane
Bank of America Merrill Lynch
New Street Research
Deutsche Numis
Forward-looking statements
Barclays
JP Morgan
Citigroup
UBS
Berenberg
We are talking about a progressive dividend policy, which means that we expect growth year after year going forward. The first year is expected to be 2.5%. so we have been quite detailed. Of course, we will have to assess this every year from now on. Why progressive dividend policy? It is simply because you have heard us say when we reshaped the Group and we rightsized the dividend according to the new shape, we were very clear from the beginning that our ambition was to grow the dividend over time. In this half year, we have completed the reshaping with the UK. And so the time is now. You know that we have an outlook supportive in terms of mid-term free cash flow growth. Page 11 and 12 (…) historically, common functions EBITDAaL was actually always negative. Then in the last two years, it turned positive as a result of some of the M&A activity that was going on, which created one-time effects. And last year, it was also helped through a quite sizable central provision release, and that is obviously creating headwinds in the year-over-year. But structurally, from a go-forward perspective, should actually expect common functions EBITDAaL to rather be negative to neutral to positive. Page 11 We certainly expect that Germany will continue to grow in the second half year. The wholesale support will obviously be a factor in that, I would also expect that towards the end of the year, our B2B performance will start to move upwards because we had very good success of contracting new digital services business that always takes a while to come into the numbers, but that should be helping also the year-end performance there. In terms of the impact that it has had, I really prefer always to talk about wholesale as a whole, because in conjunction with the 1&1 win, so to say, we had also then a subsequent loss of another smaller MVNO, Lyca, which went the other way around. If you make the maths out of those, the contribution of both in the quarter was just above €80 million as a whole. And then in the second half year, we would expect that the contribution from 1&1 will also be around €100 million. In Q4, we are lapping then the loss of Lyca. Page 5 In terms of underlying performance. So if we exclude wholesale, (…) it is broadly stable. If I look at the second half of the year, you should not expect to see big step-ups quarter-on-quarter. But over time, the actions I was referring to in my introduction, which are all speaking to the long- term health of the business, will actually support our top line performance. Page 6 It is a bit early to talk about FY27, (…) also in Germany, we will obviously have to see what the environment will be, both from a macro and from a competitive perspective. But whilst we should expect the headwind in TV to continue, and equally, we do not have full control of the dynamics in mobile, the top line will benefit from these actions. Page 6 You asked about OXG economics, I think. And so on the equity injections, these are very small. (…) I think we said this when we were setting up the JV because of, I would call it self-financing over time, it’s really at the margin in terms of equity requirements. (…) So in three years, the equity contribution and injection was just above €70 million. Page 9
FY26 & beyond
Shareholder returns
Group
H2 FY26 & beyond
Common Functions
Adjusted EBITDAaL
Germany Service Revenue
H2 FY26
Germany Service Revenue Germany Service Revenue
H2 FY26
FY27
FY26 & beyond
Germany OXG
Powered by FlippingBook