Vodafone 2025 Annual Report

Vodafone Group Plc Annual Report 2025 97

Strategic report

Governance

Financials

Other information

Annual Report on Remuneration

2025 annual bonus (‘GSTIP’) payout (audited) In the table below we disclose our achievement against each of the performance measures and targets in our annual bonus (‘GSTIP’) and the resulting total annual bonus payout level for the year ended 31 March 2025 of 58.6% of maximum. This outcome is applied to the maximum bonus level of 200% of base salary for each Executive Director. Commentary on our performance against each measure is provided on the next page.

approximately 2.5 million unhappy customers in FY25. Since the start date of focussing on deep detractor reduction back in April 2023, we have reduced deep detraction in our base from 16.0% to 12.6%, which translates into over 5 million fewer deep detractors. In respect of Vodafone Business which applies a benchmark NPS methodology, we held market leader positions in the UK, Portugal, Albania, and Greece, and achieved strong year-on year improvement in Türkiye. Whilst we did see score reductions in markets such as Ireland and South Africa, we have invested further in customer initiatives this year to close the gap. In our mobile services, we maintained stable churn levels in Europe, with year-on-year improvements across the UK (-0.4 percentage points) and rest of Europe (-0.7 percentage points). Romania significantly reduced their levels (-3.1), driven by increased focus on high propensity to churn segments and stronger offers for customers. Elsewhere in our fixed services, we have seen a significant year-on-year reduction of -1.1 percentage points, with strong performance in Germany (-1.3), UK (-0.6) and rest of Europe (-0.8), The UK reduced its out of contract base to an all-time low of 23%, contributed by overperformance in upgrades and a maturing full fibre base. There is an opportunity to improve our score in our African markets, and this is expected to improve following changes to how this measure is governed. We have achieved above-target performance for our RMS measure this year. In our fixed line services, Greece, Egypt, and the UK reported year-on-year improvements whilst in our mobile services there was strong performance in Romania, Tanzania, and Türkiye. Our overall position could have been stronger in some of our African markets and Germany, however this was offset by consistent performance in other markets and strong year-on-year improvements in Romania, Türkiye, and Egypt. It is within this context that performance against our customers measures during the year was judged to be above the mid-point of the respective ranges for NPS, RMS, and churn. Overall outcome 2025 annual bonus (‘GSTIP’) amounts Base salary £’000 Maximum bonus % of base salary 2025 payout % of maximum Actual payment £’000

Payout at maximum performance (% of salary)

Actual payout (% of overall bonus maximum)

Threshold performance level €bn

Target performance level €bn

Maximum performance level €bn

Actual performance level 1 €bn

Actual payout (% of salary)

Performance measure Service revenue Adjusted EBIT

40.0%

22.2% 11.1% 29.2

30.1 4.2 2.8

31.0 5.0 3.3

30.2 4.2 3.0

40.0% 20.9% 10.4% 40.0% 24.7% 12.4% 20.0% 11.7% 5.9% 40.0% 25.7% 12.9% 20.0% 11.9% 5.9% 200.0% 117.1% 58.6%

3.5 2.3

Adjusted free cash flow Revenue market share Net promoter score Total annual bonus payout level Churn

See overleaf for further details

Note: 1. These figures are adjusted for the impact of M&A disposals, foreign exchange movements and any changes in accounting treatment. Financial metrics As set out in the table above, adjusted EBIT finished at the mid-point of the respective target ranges whilst service revenue and adjusted free cash flow finished above the mid-point of the respective target ranges. Customer metrics An assessment of performance under the customer measures was conducted on a market-by-market basis. Each market was assessed against a number of different metrics against the following measures: – Net Promoter Score (‘NPS’) for both Consumer and Vodafone Business – defined as the extent to which our customers would recommend us. – Churn – defined as total gross customer disconnections in the period divided by the average total customers in the period. – Revenue market share (‘RMS’) – based on our total service revenue versus that of our competitors in the markets we operate in. All measures utilise data from our local markets which is collected and validated for quality and consistency by independent third-party agencies where possible. Further details on our performance against each key metric is set out below. During the year we recorded strong consumer benchmark NPS leadership or co-leadership positions in the UK, Germany, South Africa, Portugal, Albania, Egypt, DRC, Tanzania, and Lesotho. Our benchmark NPS monitoring was supported with additional insight gained from our lifecycle NPS monitoring across a number of markets. This methodology assessed our progress against our strategic focus of reducing the number of deep detractors by asking whether customers would recommend Vodafone to friends, family or colleagues. Seven of eleven markets saw a reduction in deep detractors across the fiscal year, with the biggest reductions recorded in the UK (-17%), Türkiye (-28%), Romania (-27%), Egypt (-34%) and Albania (-48%). Overall, we reduced deep detractors by 12% at a Group level – a further reduction of

Margherita Della Valle

1,250 760

200% 200%

58.6% 58.6%

1,464 ¹ 890 1

Luka Mucic

Note: 1. 25% of Margherita Della Valle’s and Luka Mucic’s post-tax bonus will be deferred into shares for two years if they have not met their share ownership requirement prior to the payment of their annual bonus.

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