Simplicity
Margherita Della Valle
If Customers is about creating better experiences, Simplicity is about creating a stronger Vodafone.
Vodafone Group, CEO
Over the last few years, we’ve taken decisive action to strengthen both our portfolio and how we operate.
In the first six months of this year, we’ve continued to make progress with simplifying our portfolio.
In H1, we took full ownership of VodafoneThree in the UK, giving us greater flexibility to move faster and capture all the value created by the combination.
We’re already seeing the benefits, with our annual synergy target increasing from £700 million to £800 million by FY30 and operating free cash flow expected to more than triple by FY32.
We’ve also increased our stake in Safaricom, strengthening our exposure to one of Africa’s leading telecommunications operators and our world-leading financial services platform, M-Pesa.
Our portfolio actions have created a more focused Vodafone, with greater exposure to markets with structural long-term growth opportunities.
But Simplicity is first and foremost about what happens inside Vodafone.
This is particularly important in Germany, where we’re encouraged by the progress we’re seeing, but we’re taking further structural actions to improve the business. This includes further simplification of our operations, continued investment in customer experience, with a focus on faster, consistent execution.
More broadly, we have a long track record of driving efficiencies and transforming our cost base.
In May we announced a new phase in our cost transformation. As we have now entered our next chapter, one of our most significant opportunities comes from our next wave of productivity growth and margin expansion.
Across Europe and our shared operations, we’re targeting over €2 billion of annual gross opex savings, translating into over €1 billion of annual net savings by FY30.
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