Vodafone Group Plc Annual Report 2025 9
Strategic report
Governance
Financials
Other information
Chief Executive’s statement and strategic roadmap Transformation gaining momentum
Since I set out my plans to transform Vodafone two years ago, Vodafone has changed. We have reshaped Europe, we are seeing the positive impact of our drive for customer satisfaction in all our markets – most noticeably in the UK and Germany – and we have delivered strong operational improvements across the business. Clearly there is much more to do, but this period of transition has repositioned Vodafone for multi-year growth. Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year. This is reflected in our guidance for profit and cash flow for the year ahead. 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. Over the past two years, Vodafone has changed. We have reshaped our operating footprint, reset our capital structure, whilst simplifying our operations and improving customer experience. Within all markets, we continue to make progress across our priorities of Customers, Simplicity and Growth. We have improved customer satisfaction across our markets, with both UK and Germany achieving their best ever results and the UK now leading in the market.
Customers – Customer detractors have reduced in most markets, and we now have leading or co-leading net promotor scores in 9 out of our 15 markets. – In Germany, we have stabilised our customer base, the core of our transformation will be building on the step-change of our NPS to achieve customer experience excellence, supported by our ability to offer our customers the largest gigabit footprint in the country. – In the UK we have delivered significant improvements in customer experience this year and now have our lowest ever share of detractors in our base. Simplicity – Simplified our operations with a leaner HQ, commercial decisions delegated to our markets, competitive commercial shared operations and 7,700 role reductions delivered by FY25. – Reset our capital structure maintaining a strong balance sheet, disciplined capital investment, rebased dividend and executing a €4.0 billion share buyback programme. Growth 4 – Reshaped our operating footprint focused on growing telco markets with strong positions and local scale. – We have grown digital services which are now c.10% of our Group service revenue, with B2B digital up 26.1% over the last 2 years and financial services customers reaching 88 million – Organic service revenue growth of Vodafone Business of 4.0% in FY25; with a sequential improvement throughout the year, as expected.
Consumer NPS
Detractors
Revenue market share
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.
Europe opex savings 1 €0.4bn (FY23–FY25) +81% shared operations NPS
Productivity 7.7k role reductions +75% employee engagement 2,3
+5.1% organic service revenue growth €2.5bn adjusted free cash flow
+2.5% organic adjusted EBITDAal growth +7.0% pre-tax ROCE
Notes: 1. Opex and productivity targets have been restated to reflect the disposals of Vodafone Italy and Vodafone Spain. 2. As at October 2024 3. The employee engagement index is based on an average index of responses to three questions: satisfaction working at Vodafone; experiencing positive emotions at work; and recommending us as an employer. 4. Organic growth, and non-GAAP measures. See page 213–214 for more information.
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