FY25 focus ⫶ d) Portfolio actions completion
Target outcomes
Transaction summary
Status & next steps
• CMA Phase 2 review ongoing, Provisional Findings & Notice of Possible remedies issued in Sep’24, working paper published in Nov’24 • Network investment commitment to transform efficiencies & customer benefits • Time-limited commitments offered to address residual CMA concerns
• Final CMA decision by 7 Dec, followed by remedy implementation period • Target completion early 2025 • Adjusted FCF accretive in year 4 • Target completion early 2025 • €8bn cash proceeds • €2bn to be allocated to share buybacks
• Vodafone UK merger with Three UK • 51% post-merger holding • >£7bn cost + capex synergies • Vodafone Italy 100% sale to Swisscom • €8bn value • c.26x OpFCF multiple • Vodafone Spain 100% sale to Zegona • €5bn value • 12.7x OpFCF
• Italian Competition Authority review ongoing (Phase 2) • Approvals received from:
− Italian Government (Golden Power) − EC Foreign Subsidies Regulation
• €4.1bn initial cash proceeds • €0.9bn in redeemable preference shares
• Transaction completed in May ‘24
• Potential Telekom Romania acquisition • Vodafone & Digi potentially acquiring separate parts of the business/assets
• Memorandum of Understanding signed with Digi/OTE • Detailed due diligence ongoing
• Potentially providing greater scale & synergies
• Additional €1bn buyback expected in H2 FY25 • Further €2bn expected in FY26 (post completion of Italy)
• First €500m tranche completed in August, discount to VWAP >1% • Second €500m tranche nearly complete, due to conclude shortly
• Share buyback programme
H1 FY25 results ⫶ November 2024
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