Vodafone Group Plc Annual Report 2025 3
Strategic report
Governance
Financials
Other information
Business model We operate in growing markets, where we hold strong positions with good local scale. We have a sustainable and predictable financial profile, and have compelling structural drivers in Vodafone Business, Africa and in our portfolio of investments. Strong positions in growing markets 1 Attractive markets Germany €57bn (market size +1.7%) 1 Other Europe €23bn (market size +1.6%) 1 Africa €17bn (market size +10.2%) 1 UK €50bn (market size +2.7%) 1 Türkiye €9bn (market size +16.9%) 1 Solid financial position Leverage position 2 2.0x (target range of 2.25–2.75x) Share buyback 3 Focus on driving operational excellence Clear and consistent strategic priorities To drive operational excellence across the Group. Customers – Delivering the simple and predictable experience our customers expect – Getting the basics right and refocusing our resources towards improving customer experience 9 of 15 markets lead/co-lead NPS 6% reduction in deep detractors Simplicity – Become a simpler and faster business – Simplify our operations and executing on our cost programmes to improve profitability 7.7k role reductions 81% shared operations NPS
Creating value Creating long-term value for our stakeholders
We are committed to delivering value and building strong relationships with all of our stakeholders. Our customers 4 310m mobile customers 15m TV customers
22m broadband customers
Our suppliers 8,500 number of suppliers €6.9bn capital additions €21bn spend Our people 92,000 employees and contractors 75% employee engagement index 37% women in senior leadership positions Our local communities and non-governmental organisations (‘NGOs’)
€40m donated in contributions and in-kind services, combined with our technology, to improve health and education, and provide emergency response across 24 countries. Government and regulators 5 €2.3bn total direct contribution across €8.0bn total tax and economic contribution
5.1% organic service revenue growth 7.0% pre-tax return on capital employment
Growth – Right-sizing the portfolio for growth – Significant opportunity to grow in: – Business – Africa – Vodafone Investments
€2.0bn (target of €4bn in total) Dividend per share 4.5 eurocents (for FY25, payable in two tranches)
45 markets
Notes: 1. Growth rates over a two-year period from 2022–2024 2. Net debt to adjusted EBITDAaL leverage ratio 3. As of 19 May 2025 4. As of 31 March 2025 (incl VodafoneZiggo and Safaricom) 5. FY24
Well positioned to take advantage of the key mega trends shaping our industry Read more on page 5
Our investors – Secure and growing dividend – Sustainable returns
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