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Vodafone Group Plc Annual Report 2024
Strategic report
Governance
Financials
Other information
Chief Executive’s statement and strategic roadmap Transformation gaining momentum
Early strategic execution We have made good initial progress against our strategic priorities.
“A year ago, I set out my plans to transform Vodafone, including the need to right-size Europe for growth. Since then, we have announced a series of transactions and we are now delivering growth in all of our markets across Europe and Africa. Much more still needs to be done in the year ahead. We will step-up investment in our customer experience, improve our underlying performance in Germany and accelerate our momentum in Business, whilst also continuing to simplify our operations throughout the group. We are fundamentally transforming Vodafone for growth.” Margherita Della Valle Group Chief Executive In May 2023, we set out a new roadmap to transform Vodafone along three strategic priorities: Customers, Simplicity, and Growth. We measure our operational progress in these areas through a consistent scorecard summarised below. During FY24, we have reshaped our European footprint to focus on growing markets, with strong positions and good local scale. Alongside the progress to right-size our portfolio for growth, we have made good early progress with our operational transformation, which aims to improve the experience provided to our customers, remove complexity from our operations and accelerate growth in revenue, profit, cash flow and return on capital. Customers – Wide-reaching customer experience transformation underway, supported by additional investment of €140 million 1 in FY24, as well as new incentives and talent development plans. – Customers insights processed through real-time AI models, feeding into detailed action plans on a weekly basis in all markets. – Frontline tools and processes enhancements benefitting 70,000 team members. – Significant improvement in Germany fixed network reliability, recognised in four independent network quality tests. – Despite material price inflation, customer detractors have reduced across all segments, and we now have leading or co-leading net promotor scores in 5 out of 9 European markets 1 . Simplicity – New organisational structure and executive management team in place. – Completed first phase of commercialising shared operations, enabling greater transparency, productivity and flexibility. – Actioned 5,000 1 role reductions and announced a further 2,000 in first year of 3-year 11,000 1 plan and continued to deliver opex efficiencies. Growth – Reshaped European footprint focused on growing telecommunications markets, with strong positions and good local scale. – Vodafone now growing in all segments and accelerating throughout the year. – Accelerated organic service revenue growth of Vodafone Business to 5.4% in Q4; B2B focus step-up with new organisation, sales transformation plan, investment in products and capabilities and strategic partnership with Microsoft. More remains to be done across all these areas in FY25. Our priorities for the year ahead include: stepping-up our operational performance in Germany; further strengthening our capabilities in Vodafone Business; completing the commercialisation of our shared operations; and completing our in-flight portfolio transformation.
Customers
Revenue market share
Consumer NPS
Detractors
Germany UK
Other Europe South Africa
Key: Improved Deteriorated
Stable
Network quality Very good reliability in all European markets. German cable network quality recognised in 4 independent tests
Simplicity
Productivity 1 c.5k role reductions
Europe opex savings 1 €0.4bn (FY23 and FY24) Shared operations NPS +85%
Employee engagement +75%
Growth 2
Organic service revenue growth +6.3% Organic adjusted EBITDAaL growth +2.2%
B2B organic service revenue growth +5.0%
Adjusted free cash flow €2.6bn
Pre-tax return on capital employed +7.5%
Notes: 1. Includes Vodafone Italy and Vodafone Spain. 2. These are non-GAAP measures. See page 235 for more information.
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