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Vodafone Group Plc H1 FY27 Q&A Transcript
Goldman Sachs
BNP Paribas Exane
Bank of America Merrill Lynch
New Street Research
Deutsche Numis
Morgan Stanley
JP Morgan
Citigroup
UBS
If I instead answer around our own plans, again, you have been with us for a long time, so you're familiar with all the cost transformation programmes that we have also run in the past. I need to say there is one characteristic, you may have heard me say this before, that I do care about when we announce cost transformation, which is to be able to commit to net opex reduction that effectively can be really directly visible in the P&L. I think you are used to that with us. And that's how, as we started our new growth chapter in May, we shaped our forecast for the future. As Pilar was saying earlier, this plan comes from, if you want, the various opportunities that we have today as we update every three years or so into a new plan and it's a combination of overall simplification continuing, UK synergies, and very significant contribution that AI is making into our operations. As we look at all this, we look at what's possible and we benchmark as much as we possibly can. We have just started, and so in terms of the future, as Pilar was mentioning, we will continue to update you and we'll see what the opportunities are, exactly as we used to do in previous occasions.
Great, thank you.
James Ratzer New Street Research
Thank you and good morning. I'm going to follow up on the costs, I'm afraid. It's not about your costs out, it's about the costs of taking those costs out, because you've had a fast start and you plan to do more in H2, including the German headcount reduction. But there doesn't seem to be any increase in the restructuring costs that you're talking about, the €700 million or so. So, were the German headcount reductions always in the plan for that, or did you get better value elsewhere? Maybe it's AI, maybe you're just getting good at this. That will be helpful. Thank you. The short answer, Rob, I will give it, is that it was already in the plan. We announced these plans back in May and by definition, the impact were included in our May guidance. So, no change, no surprises. It's interesting how many questions on cost we get today and we didn't get in May. We have probably a lot to say then.
Robert Grindle Deutsche Numis
Margherita Della Valle Vodafone Group
Nevertheless, you seem to be going ahead of plan, whereas you're meeting your targets. So good going. Thanks.
Robert Grindle Deutsche Numis
Thank you.
Margherita Della Valle Vodafone Group
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