Vodafone H1 FY25 Results Presentation
8 October 2026
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VodafoneThree
A key driver of
creation
Ahmed Essam | Vodafone Group, CEO European Markets
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A simpler Vodafone with a clear operating model VODAFONE ⫶ SIMPLER, STRONGER, GROWING A new chapter… A clear strategy…
Our outlook…
A customer experience reset with improving networks & satisfaction A more productive Vodafone with motivated teams
Attractive opportunities in Europe, Africa, and B2B Scaled operations building once, deploying at scale Organic Adj. FCF growth double-digit in mid-term
A well-positioned Vodafone with scale in good markets A new connectivity era with favourable external tailwinds
Delivering growth across key metrics
Supporting our ambition to deliver euro growth in Adjusted FCF
3
RESHAPING VODAFONE ⫶ A NEED FOR CHANGE IN OUR HOME MARKET Returns below the cost of capital in key markets The challenges we faced in the UK 2023
+ + - -
Good market Good business Sustainable market structure Limited scale
Market
ROCE Good
Czech Republic
Sub-scale
Germany
Around WACC
Greece Ireland
Good Good
Impacting our ability to invest & compete
Low ROCE %
Impacting customer experience
Italy
Below WACC
Portugal Romania
Good
Below WACC Below WACC
Spain
Turkey
Good
Limited investment
UK
Below WACC
No clear path to drive returns above local cost of capital organically
4
Fixing unsustainable sub-scale economics… OUR JOURNEY ⫶ CREATING A SCALED & MARKET LEADING OPERATOR IN THE UK … enabling VodafoneThree to deliver on promises
Economic ROCE by MNO, pre-tax nominal including 5G spectrum Extract from UK Wireless Infrastructure Strategy & Ofcom’s future approach to mobile markets & spectrum 1
Transforms customer experience by creating a best-in-class network for coverage and reliability for the UK
BT EE
20%
Country Customers Competition
15%
Creates a leading 5G network in Europe, fully aligned with the UK government’s Wireless Infrastructure Strategy, driving economic growth, innovation and jobs
VMO2
10%
Simple average Cost of Capital, MCT
5%
Creates a scaled network operator to challenge the two leading converged operators and spur further mobile & fixed broadband competition in the UK
Vodafone Three
0%
2019
2020
2021
1. Source: Ofcom calculations based on publicly available from financial statements and Ofcom Annual License Fee (ALF) decisions. The cost of capital (pre-tax nominal) comes from Ofcom’s charge control decisions for mobile call termination (MCT) over the relevant period.
5
VODAFONETHREE ⫶ A KEY DRIVER OF GROWTH & VALUE CREATION
• More network assets than any UK operator • Fully funded £11 billion investment programme • Building the UK’s best 5G standalone, AI-ready network NETWORK LEADERSHIP
• UK’s largest mobile customer base • Clear multi-brand strategy • Market-shaping customer propositions • Customer experience leader COMMERCIAL ADVANTAGE
• Fastest growing broadband provider • Significant convergence opportunity (incl. TV) • Monetising our network quality in mobile • New structural growth opportunities in Business GROWTH OPPORTUNITIES
• Capturing significant cost and capex synergies • Fully leveraging benefits of Group scale • Key element in driving Group’s medium-term double-digit adjusted free cash flow ambition DRIVING RETURNS
Combining the scale to invest, propositions to drive growth and efficiencies to deliver sustainable long-term value
6
FULL OWNERSHIP ⫶ EARLIER THAN EXPECTED OPPORTUNITY A strong first year of execution – providing even greater visibility & certainty on value creation opportunity Incremental cost opportunities Balance sheet capacity Attractive valuation
100% control for
Able to consider an early buyout
Clear line of sight to deliver
annual cost and capex target by FY32 (£0.8 billion by FY30)
Enterprise Value
impact on Group leverage
vs £16.5 billion in put/call framework
Returning to ‘bottom half’ of 2.25-2.75x Group leverage range by end of FY27
vs. Original £0.7 billion target by FY30
Enabling us to move at an even faster pace and unlock more savings 7
VODAFONETHREE ⫶ A KEY DRIVER OF GROUP MID-TERM GROWTH AMBITIONS
SCALED OPERATOR market share 1
LEADING POSITION
2
5G standalone coverage by 2034
SIGNIFICANT SAVINGS annual cost & capex target by FY32
1. Market share based on mobile subscribers in Consumer 2. #1 Net Promoter Score on Vodafone brand
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A new era of
for the UK Max Taylor | VodafoneThree, Chief Executive Officer
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1 2 3 4 5 AGENDA
A NEW ERA OF CONNECTIVITY FOR THE UK Max Taylor | VodafoneThree, Chief Executive Officer BUILDING THE UK’S BEST MOBILE NETWORK Andrea Donà | VodafoneThree, Network Director ACCELERATING OUR LEADERSHIP IN CONSUMER Rob Winterschladen | VodafoneThree, Consumer Director DELIVERING SIGNIFICANT VALUE CREATION Darren Purkis | VodafoneThree, Chief Financial Officer CONNECTING BUSINESSES TO THEIR POTENTIAL Nick Gliddon | VodafoneThree, Business Director
10
OUR MISSION ⫶ TO BUILD THE UK’S BEST NETWORK
For NPS, churn and deep detractors #1
One team Unrivalled pace Customer first OUR PURPOSE To connect every community in every corner of the UK
5G SA population coverage by 2034 , (99% by 2030) 99.96%
Best employee engagement #1
Delivering sustainable long-term value creation
MARKET LANDSCAPE ⫶ STRONG FOUNDATIONS, SIGNIFICANT OPPORTUNITIES
MOBILE
OPPORTUNITIES FOR VODAFONETHREE • Fastest growing broadband provider with low share in fixed • Market leading fibre & fibre-like footprint (FWA) • Significant convergence opportunity with the UK’s largest mobile base & new TV proposition MARKET DYNAMICS BROADBAND • Growing demand for gigabit network speeds • Greater bundling of services • Fixed infrastructure ownership currently fragmented
BUSINESS
REGULATION
• UK lags global benchmarks • Demand shifting to higher quality, secure connectivity • Increased competition
• Security, resilience and sovereignty becoming critical • Growing demand for differentiated service levels and performance • AI and digitalisation increasingly dependent on network quality • Monetising network quality through high value business propositions • Fixed growth opportunity • New structural growth opportunities in the fastest growing segments • Differentiated customer experience with structurally lower cost-to-serve
• Investment-led framework established • Planning reform to accelerate deployment • Net Neutrality reform can unlock innovation • Energy support should reflect CNI 1 status • Safeguards against anti-competitive cross-subsidisation
• Building the UK’s best network , a world- class 5G standalone network • Monetising network quality through market-shaping customer propositions and a multi-brand strategy • Customer experience leader
1. Critical National Infrastructure
12
OUR FIRST YEAR ⫶ WE HAVE MADE A FAST START
#1 NETWORK
#1 CUSTOMERS
#1 PEOPLE
FY26 RESULTS
• MOCN: Roam on both networks at no extra cost >10,000 sites / 16,500 km 2 not-spot reduction • Spectrum sharing: Providing 7 million Three customers with a performance boost of up to 40% on 4G • 5G standalone deployment Exceeding Year One targets
• Churn: Record lows on all brands • Vodafone NPS #1 • Complaints: Best-ever performance • Deep Detractors: Lowest-ever scores • Fastest-growing broadband provider • Two new UK contact centres opened (Sheffield & Belfast)
• All teams integrated down to fourth level of the organisation • One team culture established leveraging best of both • Property plan and retail consolidation 42% multi-brand (as at September 2026)
Adj. EBITDAaL growth
Invested
13
YEAR TWO ⫶ A CRITICAL YEAR OF DELIVERY
CUSTOMER EXPERIENCE • Digitalising customer experience – Single Converged App, Just Ask Once, SuperTOBi • Two new specialist care and sales centres Further strengthen CX at a lower cost-to-serve Making service a differentiator
BROADBAND Increase broadband penetration
NETWORK Accelerating network deployment • Twice the number of sites to be upgraded in year 2 • Delivering against CMA targets • Enabling launch of new, differentiated propositions Doubling the speed of our network rollout
• Leverage fibre footprint and FWA • Pro Broadband refresh broadening choice across the portfolio Grow broadband and convergence penetration
SUPERMOBILE Monetising network quality
RETAIL • Accelerate roll-out of multi-brand stores • 10% of cost synergies (completed by year 3) Upgrade & consolidate
Creating a stronger converged proposition VODAFONE TV • Broadens consideration for Vodafone in the home • Designed to drive adoption of higher-value bundled services Increase value per household and cross-sell opportunity
• Market-shaping proposition • Differentiating through network speed, reliability & security (Consumer & Business) • Introducing quality-based pricing Grow and protect mobile ARPU
Complete our retail transformation
14
DELIVERING A NEW ERA OF CONNECTIVITY FOR THE UK Merger ⫶ A catalyst
Our first year ⫶ Strong foundations & delivering ahead of our plans Looking ahead ⫶ Unlocking the full potential of our network Scaled More mobile network assets than any other operator Leading Customer experience Strong Market position Fast Start Delivering immediate network & customer improvements Good Commerical momentum Rapid Integration of the two businesses
Differentiating Launching new market-shaping propositions
Driving Commercial excellence
Realising Cost and capex & revenue synergies
15
Building the UK’s
Network Andrea Donà | VodafoneThree, Network Director
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VODAFONETHREE ⫶ BUILDING THE UK’S BEST NETWORK More assets than any operator & ambitious network rollout plan
A B D C
Moving at pace – bringing benefits to customers from Day 1
The next stage – building a 5G standalone, AI-ready network
Delivering an unparalleled network experience
Core to our strategy & growth ambitions
17
We have significantly more sites… STARTING FROM A STRONG POSITION ⫶ MORE ASSETS THAN ANY OPERATOR Macro Cell Sites (000s) Spectrum (MHz) ….and the largest spectrum holding
A
Today
Future
500
>20% more than any other operator
c.37k
400
210
80
c.26k
300
c.20k BT EE
100
VMO2
c.18.7k
200
122
230
131
100
105
95
50
0
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AMBITIOUS ROLLOUT PLAN ⫶ WITH CLEAR MILESTONES & COMMITMENTS
A
Upgraded network of c.26,000 sites – the UK’s largest
Largest spectrum holding deployed across our network
Consolidated and upgraded radio, core, transport, fixed, OSS infrastructure
Year 1 – ahead of targets
2027
2029
2030
2034
• Twice the number of sites to be upgraded in Year 2 • Satellite trials underway • Critical National Slice for blue-light organisations
• 65% increase in network capacity compared to the sum of 3UK and VFUK’s standalone forecast capacity • 90% 5G standalone population coverage
• 99% 5G standalone
• 99.96% 5G standalone population coverage • 2.5x the network capacity compared to today • Up to 5x increase in average speeds
Up to 40% uplift on 4G speeds for 7 million Three customers through the deployment of 1,800 MHz of shared spectrum Eliminated 16,500 km 2 of ‘not- spots ’ (areas with no coverage) by deploying easy MOCN Exceeded Year 1 site upgrade target UK’s first commercial 5G network slicing capabilities launched, including dedicated national network slices for Consumer & Business Nokia & Ericsson appointed as key network build partners
population coverage in full support of Government’s Wireless Infrastructure Strategy ambitions
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MOVING AT PACE ⫶ BRINGING BENEFITS TO CUSTOMERS FROM DAY 1 • Software upgrade embedded into our network • Now live on over 10,000 sites • Providing customers with better coverage and performance • Removing 16,500 km 2 of not-spots MOCN deployment 5G Low-Band 5G High-Band Sites activated with MOCN
B
Spectrum sharing
• Vodafone 1,800MHz spectrum used on Three sites, increasing capacity & reducing congestion • 40% improvement in 4G speeds for 7 million Three customers
20
B
ALREADY DELIVERING TANGIBLE IMPROVEMENTS IN NETWORK QUALITY Greater coverage 5G standalone population coverage (%) Faster speeds National average 5G download speed (Mbps) 1
313Mbps
65%
+82%
+18pp
172Mbps
47%
Apr-25 Jun-25 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26 Aug-26
Apr-25
Aug-26
Driving an acceleration in data demand Annual data consumption (% growth)
Stronger, more seamless experience Network latency (London – NET Check Benchmarking) (Milliseconds)
+26%
38.1
+21%
+12%
29.3 26.9
+9%
28.4
FY25
FY26
FY25
FY26
Nov-24
May-26
1. Ookla® Speedtest Intelligence®
21
THE NEXT STAGE ⫶ BUILDING A 5G STANDALONE, AI-READY NETWORK Beacon Network Sharing MBNL Network Sharing Densified network
C
EE
VMO2
22
THE NEXT STAGE ⫶ BUILDING A 5G STANDALONE, AI-READY NETWORK
C
Upgrading every layer of our network architecture Moving from two distinct networks: • to a single upgraded Radio Access Network • equipping sites with the latest Nokia and Ericsson hardware, including Massive MIMO antenna • upgraded backhaul access transmission & a consolidated transport network • upgraded intelligent core network
Upgraded to support traffic from decommissioned Three site
Additional or upgraded equipment Additional or upgraded radio unit
Access transmission (100Mbps - 1Gbps)
MIMO antenna
Upgraded to account for additional VOD (+ VMO2) traffic
Extra cabinet
Access transmission (100Mbps - 1Gbps)
Access transmission (10Gbps)
23
THE NEXT STAGE ⫶ BUILDING A 5G STANDALONE, AI-READY NETWORK IT migration timeline Consolidating platforms & harmonising operations, while maintaining business continuity
C
Single platforms
Customer Day 1 (CD1)
Decommission
Customer Day 2 (CD2) Sep 2026 Commercial launches Supporting the delivery of new commercial offers
Consumers
Corporate
Enterprise
Apr 2026 Delivered 2 months early First full Vodafone & Three systems integration
Autumn 2027 Three Consumers can be served and hosted on the Vodafone Business Support Systems (‘BSS’)
End of 2027 Unify HR, Finance & Procurement onto a common platform
Summer 2028 Single new stack for all Enterprise, SME and Corporate customers
End of 2028 Decommissioning of the Three legacy IT stack
Multi-brand operations enabled Significant progress to date
Commercial migrations (CD1 & CD2)
Corporate system harmonisation
Now moving from integration set-up to at-scale migration
24
THE NEXT STAGE ⫶ BUILDING A 5G STANDALONE, AI-READY NETWORK To build the UK’s first nationwide AI-ready network
C
Our strategy
Networks for AI supporting the most demanding AI use cases
AI in the Network deployed in all layers to enable autonomous networks
AI-augmented workforce boosting productivity and efficiency
Dynamic energy management
Intelligent network • AI driven network and performance management • 24/7 optimisation & proactive self-healing • Enabling new commercial offers with guaranteed SLAs • Faster time to market for new services
More efficient & safer network rollout
Use cases
improved energy efficiency in trials with radio software, AI and machine learning to adjust radio power based on live traffic
powered by agentic AI. Field engineers using agentic AI to review build quality in near real- time whilst identifying health and safety risks.
CAPACITY
HARDWARE
EXPERTISE
Foundations
AI RAN deployment as part of our upgrade programme, enabling dynamic network management
Upgrading Core, RAN and Transport networks to deliver capacity needed for the most data-intensive AI use cases
Best-in-class, leveraging Group scale & partnerships
25
D
DELIVERING AN UNPARALLELED NETWORK EXPERIENCE
Gigabit connectivity at scale Fixed broadband Scaled mobile networks Terrestrial mobile Satellite Bringing ubiquitous connectivity
The best connectivity from the seabed to the stars
100% geographic coverage target, including direct-to-mobile Testing to take place in 2027
26,000 upgraded mobile sites across UK by 2034 99.96% 5G SA population coverage by 2034
24.5 million marketable gigabit households Largest marketable gigabit footprint in UK 1.9 million fixed broadband customers
Ubiquitous connectivity New use cases Reliable & trusted
Subsea cables
70 subsea cables invested in or co-owned 1 million kilometres of terrestrial fibre 180 countries connected
Backbone of global connectivity
26
CONCLUSION ⫶ BUILDING THE UK’S BEST NETWORK
More assets than any other operator & an ambitious network rollout plan Moving at pace – bringing benefits to customers from Day 1 The next stage – building a 5G standalone, AI-ready network Delivering an unparalleled network experience
27
Accelerating our
in Consumer Rob Winterschladen | VodafoneThree, Consumer Director
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VODAFONETHREE ⫶ ACCELERATING OUR LEADERSHIP IN CONSUMER #1 in mobile, leading challenger in fixed
A B
Good commercial momentum post-merger
Significant opportunities for growth in broadband & convergence D C Leading the market in mobile & driving growth across the rest of our portfolio Launching new market-leading propositions
29
Market leader in mobile, fastest growing in fixed Outperforming the market in Consumer UK CONSUMER MARKET ⫶ #1 IN MOBILE, LEADING CHALLENGER IN FIXED FY26 revenue market share & growth 1 Service revenue growth (%)
A
BT EE
VMO2
Others
Market
1.6%
+1%
£12.5bn
-0.8%
£10.5bn
-0.6%
4.6%
30.7%
+21.9%
0.7%
40.5%
27.7%
0.3%
0.2%
21.1%
25.7%
Q2 FY26
Q3 FY26
Q4 FY26
33.8%
15.9%
(0.3%)
(0.4%)
Mobile
Fixed
1. Consumer market share based on service revenue (excluding handsets, equipment). Sources: reported results from operators & Global Data UK Pay TV data
30
OUR POSITION ⫶ A CLEAR & DIFFERENTIATED MULTI-BRAND STRATEGY A strong portfolio of brands on The Nation’s Network effectively targeting different segments of the market
A
Premium, Families
Mid-market, Youthful
MOBILE
Retired switchers
Working switchers
Youthful, socially connected
FIXED/CONVERGENCE
31
Our retail estate OUR POSITION ⫶ ONGOING COMMITMENT TO THE HIGH STREET Store upgrades reinforcing our commitment to the UK high street
A
Reimagining the high street Creating vibrant, multi-brand experience hubs that deliver for customers
• Further enhancing customer experience
A two-year transformation programme to upgrade our retail stores Flagship stores
new Three retail locations
of locations are now multi-brand • Delivering a multi-brand instore experience and enabling Three-to- Vodafone migrations • Consolidation of overlapping stores well underway
High streets
Covering more of the UK with our services than ever before
32
Vodafone OUR POSITION ⫶ A STRONG DIGITAL PRESENCE ACROSS ALL BRANDS Three Value Brands
A
digital sales mix digital service mix
digital sales mix digital service mix
digital sales mix digital service mix
digital sales mix digital service mix
Single converged app with Just Ask Once
Three Digital Platform moving to Vodafone stack
Agentic AI chat capability shared across Vodafone and Three brands to deliver improved customer experience Vodafone AI on Three Digital
Launched new AI chat Tobi now powered by AI for upgrades and support Agentic chat experiences in delivery
digital sales mix digital service mix
33
OUR POSITION ⫶ MARKET-LEADING CUSTOMER EXPERIENCE
A
Lowest-ever Deep Detractors Deep detractors (%) 1
Vodafone #1 – Net Promoter Score (NPS) Vodafone Three #1 +2pp #4 (7pp)
10% 12% 14% 16% 18% 20% 22% 24% 26%
August 2026 position
Gap to next best
Q1-24
Q1-25
Q1-26
Multi-award-winning Customer Experience
Best-ever Ofcom complaints levels Ofcom Complaints per 100k Customers
Vodafone PAYM
Vodafone HBB
Three PAYM
16
Estimated scores pending Ofcom publication
12
11
11
11
11
10
9
8
7
4
3
3
3
3
2 2 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 2 2 2 2 1 1 2 1 1 2 2 1 2
1. Vodafone (inc. VOXI) and Three (inc. SMARTY)
34
B
GOOD COMMERCIAL MOMENTUM POST-MERGER
FY26 HIGHLIGHTS Net customer additions growth • +219k total Consumer net adds 1 • Record fixed gross and net adds • Fastest growing HBB provider • +2% YoY Mobile Contract ARPU growth • +5% YoY Broadband ARPU growth ARPU growth (Q4) • Record low mobile churn rates for VOXI, Vodafone, Talk Mobile and SMARTY • Three’s churn at lowest in four years • Record low churn rates in Fixed across Vodafone HBB, Three and Vodafone FWA Customer retention
NEW PROPOSITIONS & SERVICES LAUNCHED • Vodafone Together Family • Vodafone Just Ask Once • Vodafone Speed Boost • Vodafone FWA • Customer-led migrations • Converged My Vodafone App • Vodafone SuperMobile • Vodafone TV
MARKETING CAMPAIGN ACTIVITY • Vodafone: Two Networks are Better Than One • The Nation’s Network • Three Brand Relaunch: Let Fun In • Unstoppable SuperMobile • Vodafone TV
OTHER COMMERCIAL ACTIONS • Multi-brand trading strategy and governance • Commissions rationalisation • Clear brand strategy • New Three base marketing engine • Multi-brand experience in call centres & retail
1. Mobile Contract, prepaid, and broadband
35
C
LAUNCHING NEW MARKET-LEADING PROPOSITIONS
Broadband refresh announced, SuperMobile launched, Vodafone TV launched SEPTEMBER 2026 SEPTEMBER 2026 OCTOBER 2026 Broadband Refresh Vodafone SuperMobile Vodafone TV • Vodafone FWA with single postcode checker • Social FWA tariffs • Set top box with Dolby Atmos, Dolby Vision, 4K HDR
• UK’s fastest 5G+ network and 65% 5G+ coverage • Fast: Up to 4x faster on 5G+ slice • Reliable: UK’s only guaranteed minimum speeds 15Mbps • Secure: 5G+ encryption and SecureNet included
• Aggregation interface for discovery • Bundled with HBO Max & Netflix • Live TV streaming • On-demand TV • Cloud gaming • Android TV OS with Play apps
• Converged Parental Controls: SecureNet • 8Gbps speeds and Pro 4 router (WiFi 7 Tri Band) • 50Gbps trials
More to come… 36
VODAFONE SUPERMOBILE ⫶ MONETISING OUR NETWORK INVESTMENT
C Introducing
37
VODAFONE SUPERMOBILE ⫶ MONETISING OUR NETWORK INVESTMENT
C
Up to 4x Faster Speeds: Stay connected with up to 4x faster speeds than our standard plans, and feel the difference. New industry-shaping propositions underpinned by The Nation’s Network
5G+
5G+ Fast Track: A dedicated track on our network that prioritises customers connection.
The UK’s only plan with guaranteed minimum speeds : The only plan with guaranteed mobile speeds. If it does not deliver, customers are free to leave without penalty.
Security built in: More peace of mind, with the most secure encryption available powered by 5G+, and Secure Net Mobile included.
The UK’s biggest network, The Nation’s Network
38
SIGNIFICANT GROWTH OPPORTUNITIES ⫶ BROADBAND AND CONVERGENCE
D
We have the largest fibre footprint with fastest speeds…
…with a Fixed Wireless capability that further extends our reach…
…and the largest mobile customer base to cross-sell into Vodafone & Three Converged Household Mix (million households)
Gigabit footprint (households)
inc. Households outside of our current fibre footprint
c. Current FWA footprint Providing fibre-like speeds across both brands
Mobile only
Fixed & FWA only
Converged
Openreach
CityFibre
Community Fibre
5G Broadband Our powerful 5G Broadband is fast, reliable and simple. It uses our 5G network to give customers superfast 5G speeds .
24.5m
6.6m household opportunity
Q1 FY27
c.75% of households covered Through our ‘asset light’ model
Further supported by new TV proposition
We are the UK’s fastest-growing broadband provider
39
VODAFONE TV ⫶ UNLOCKING ADDITIONAL GROWTH IN CONVERGENCE KEY FEATURES
D
Android TV, 4K, Dolby Atmos and Dolby Vision
Aggregated experience with user profiles, personalised recommendations and Smart Voice AI search
Netflix, HBO Max, Freely, an additional 150+ live channels, 300+ games and thousands of apps through the Google Play Store
Bundled with fixed, 5G broadband and mobile plans
Low-cost, sustainable partnership model
40
CONCLUSION ⫶ ACCELERATING OUR LEADERSHIP IN CONSUMER
#1 in mobile, leading challenger in fixed Good commercial momentum post-merger Launching new market-leading propositions Significant opportunities for growth in broadband & convergence
41
Connecting
to their potential
Nick Gliddon | VodafoneThree, Business Director
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VODAFONE BUSINESS ⫶ CONNECTING BUSINESSES TO THEIR POTENTIAL Strong foundations with exciting growth opportunities SIMPLIFY – differentiated CX and structurally lower cost-to-serve A B
GROW – focusing on segments with greatest growth potential D C Enterprise-grade connectivity: to power the UK’s next generation of growth DIFFERENTIATE – monetising our network and customer scale
43
STRONG FOUNDATIONS ⫶ ONE BRAND SERVING EVERY BUSINESS
A
6.5 million Mobile connections 15.3 million IoT connections (adding c.11.5k per day)
£1.85 billion FY26 service revenue
27% of VodafoneThree service revenue 1
+41% SaaS service revenue growth 1
SOHO
SME
PRIVATE
PUBLIC SECTOR
250+ employees
All business sizes
Size
Size
1–9 employees
10-249 employees
Size
Size
Multiple sites
Footprint
Multiple sites nationally
Footprint
Single site
>1 site
Footprint
Footprint
Share of revenue Share of Vodafone Business revenue Share of Total Business Market
19% Share of revenue Share of Vodafone Business revenue Share of Total Business Market
27% Share of revenue Share of Vodafone Business revenue Share of Total Business Market
23% Share of revenue Share of Vodafone Business revenue Share of Total Business Market
31%
27%
23%
20%
30%
small businesses powered by Vodafone Business 2
of Fortune 500 businesses choose Vodafone Business
of the UK’s emergency services using our award-winning network
1. FY26 2. Based on internal market share data
44
STRONG FOUNDATIONS ⫶ PORTFOLIO OF PRODUCTS & SERVICES
A
Fixed Wireless Access Network Slicing
Mobile & 5G Standalone Device as a Service Mobile Private Networks Broadband Dedicated Internet Access IP-VPN Global IoT Connectivity Local IoT Connectivity Connectivity Lite
Cloud Managed & Professional Services Hosting & Co- location
Software as a Service Business
50% of Business service revenue 1
8% of Business service revenue 1
Applications Public Cloud
MOBILE
CLOUD
Protective Monitoring Mobile Management & Protection
SD-WAN
Secure Network
26% of Business service revenue 1
6% of Business service revenue 1
Ethernet
Secure Cloud & Apps Managed Security Services
FIXED
SECURITY
Network Mobile Recording Operator Connect & Direct Routing
Vodafone Business Unified Comms Sovereign Contact Centre Teams Phone Mobile & compliance recording
Terminals & Devices IoT Managed Services
6% of Business service revenue 1
7% of Business service revenue 1
DIGITAL COMMS
IOT
1. FY26 service revenue
45
STRONG FOUNDATIONS ⫶ UK EXPERTISE & VODAFONE’S GLOBAL SCALE
A
NETWORK INFRASTRUCTURE
INNOVATION & CAPABILITY
ENTERPRISE CUSTOMER REACH
PARTNER ECOSYSTEM
Countries with Vodafone Business presence
IoT connections globally
Global business customers
• Access to Vodafone’s global footprint • UK’s largest mobile network • International networks & subsea cables
• Access to Group’s scaled platforms & products − Internet of Things − VOIS • Ability to tailor products & services to local market needs
• Serving UK customers with global needs • Over 5 million Global Vodafone Business customers with 20% UK headquartered • Multi market sales potential with Vodafone Business presence across 75 markets
• Strong, well-established strategic partnerships • Microsoft, Cisco, Fortinet, AWS, Google & more • Broadening our product portfolio in a capital-efficient manner
Leveraging the benefits of Vodafone’s Group scale
46
Market leader in mobile, challenger in fixed Core Connectivity Market Growth STRONG FOUNDATIONS ⫶ WITH EXCITING GROWTH OPPORTUNITIES FY26 Revenue market share 1 Market CAGR (FY26-FY30) 2
A
BT EE
VMO2
Others
Mobile (CAGR FY26-30) +0.9%
Fixed (CAGR FY26-30) +1.5%
Fixed Wireless Access +14%
Software-Defined WAN +13%
5G Slicing +31%
£5.6bn
Adjacent Growth Opportunities Market CAGR (FY26-FY30) 2
47%
5% 25% 30% 41% £2.6bn
Unified Communications +13%
Cloud +14%
33% 6% 14%
Security +10%
IOT +6%
Mobile
Fixed
1. Sources: Internal Market Data Book; MPN (Analysis Mason), Contact Centre (ContactBabel), VBUC & Teams Phone Mobile (Cavell) 2. Sources: Internal Market Data Book
47
AI & DIGITALISATION AI, cloud and automation increase dependence on high-quality connectivity and infrastructure GROWTH ⫶ UK MARKET TRENDS DRIVING OPPORTUNITIES CUSTOMER PREFERENCES Customers favour integrated outcomes, with mobile becoming the technology platform for small businesses DIFFERENTIATED SERVICE Customers increasingly value performance, service levels and assured outcomes
A
SECURITY & SOVEREIGNTY Resilience and sovereignty are now board-level priorities for UK organisations
Est. UK AI infrastructure market (2030) 1
Est. UK addressable SoHo market, growing at 8% CAGR 2
of businesses prioritise SLA compliance 3
Est. UK AI Cybersecurity market (2030) 4
Vodafone Business can enable the next phase of growth for businesses
1. Gartner, AI opportunity in the U.K. for CSPs, 2026 2. Sources: Internal Market Data Book and industry reports (BCG & Gartner) 3. Source: The B2B pulse (Capgemini report, 2025) 4. Gartner, Forecast: AI Spending Worldwide 2025-2030
48
A
OUR STRATEGY
SIMPLIFY
DIFFERENTIATE
GROW
• Build on our market-leading customer experience • Standardise products, processes and platforms • Reduce business complexity and deliver structurally lower cost-to-serve Differentiate through Customer Experience leadership & lower cost base
• Use our market-leading mobile network to deliver new & innovative propositions • Capture merger benefits through one brand and combined customer scale • Improve returns through owned infrastructure and automation Turn network and customer scale into competitive advantage
• Broaden capabilities beyond core connectivity • Enable emerging sovereign, security and AI requirements • Target critical industries where we have a strong ability to grow Leverage our strengths to capture attractive growth pools
Monetise our network
Simpler, more integrated business
Access to high-growth segments
DRIVE EFFICIENCIES I IMPROVE RETURNS I ACCELERATE GROWTH
49
SIMPLIFY ⫶ CREATING A MORE EFFICIENT BUSINESS WITH DIFFERENTIATED CX
B
Targeted investments in digital capabilities, simplification & automation
Further enhancing our leading customer experience
Structurally lower cost –to-serve
Simplified operating model Standardising products, processes and ways of working to improve consistency, agility and efficiency Deploying AI & automation at scale Reducing manual activity, improving productivity and accelerating response times New sales & service platform for business Simpler, faster and more connected end- to-end customer experience
+11pp vs. key competitors
SoHo & SME Brand
Improvement in workforce efficiency & productivity (2030 target) 1
Customer Principles
Improvement in speed-to-market (2030 target) 1
Get it right first time
Own the outcome & be proactive
Be human & deeply know customers
Make it effortless & intuitive
Cost-to-serve reduction (2030 target) 1
1. Versus FY26
50
DIFFERENTIATE ⫶ MONETISING OUR NETWORK & CUSTOMER SCALE
C
ONE BRAND
CONNECTIVITY ECONOMICS
DIFFERENTIATED PROPOSITIONS
Turn network capability into customer value
Capture the full value of the combined customer base Migrate Three Business customers onto Vodafone Business and create consistent customer experience Cross-sell and upsell to both customer bases supported by one brand and broader distribution through retail footprint
Improve returns from our network assets
Launching assured, premium connectivity that meets business needs for performance, resilience and security Expanding fixed and converged propositions, including SD-WAN & FWA to compete more effectively across the connectivity market
Increase proportion of fixed services delivered through VodafoneThree-owned infrastructure and assets Standardise and automate delivery to reduce cost, lead times and enhance customer experience
1m Three Business connections to migrate
Vodafone SuperMobile for Business Dedicated National Regional and Critical Infrastructure Slices
+20% mix shift to VodafoneThree’s network through new sales +10pp increase in on-net penetration in existing contracts
Increase penetration for converged services supporting retention 66k Fixed connections to migrate in SoHo
5G Business Broadband
Higher value connectivity revenue | Improved retention & customer value | Better network utilisation & margins
51
DIFFERENTIATE ⫶ VODAFONE SUPERMOBILE FOR BUSINESS
C
Turning business mobile connectivity into a market-leading performance product National Business Slice • Dedicated 5G+ capacity for businesses • Independent of consumer demand & traffic • Assured performance and committed service levels • Up to 4x faster speeds in congested areas giving unparalleled performance
• Contracted connectivity performance at specific sites • Control and resilience for airports, venues, logistics hubs and campuses
5G+ Local Slice
• Launching in early 2027 • Priority connectivity for blue-light organisations and critical national infrastructure • Supporting mission-critical applications with assured performance, resilience and low-latency connectivity
National Critical Slice
52
DIFFERENTIATE ⫶ VODAFONE SUPERMOBILE FOR BUSINESS C National Critical Slice in action
53
GROW ⫶ BROADENING CAPABILITIES BEYOND CORE CONNECTIVITY
D
Foundations
Scale into service Capabilities we are scaling
Enable new technologies Enabling the creation of new technologies Powered by AI Generating new investment cases and potential AI- enabled revenue pools AI infrastructure connectivity AI services & partner- supported propositions
Core capabilities we can leverage Infrastructure Physical and technology assets that underpin our services, including Group’s global network scale Enterprise Data Centre & Co-location National Fibre Subsea Network Connectivity Enterprise-grade connectivity with a full portfolio of products and services Speed & Latency Coverage Resilience
Applications Communications, cloud and applications that keep critical workloads running on our network Call centres Apps Hosting Managed services & security Providing access and managing outcomes Sovereign Secure Managed
Connectivity for AI
est. addressable UK market (2030) 1
Agentic AI Services
Small Medium Business spend by 2030 2
Broaden our capabilities to meet more of our customers’ technology needs
1. Sources: Internal forecasts supported by industry reports 2. Gartner, AI Opportunity for CSPs, 2026
54
MARKET DYNAMICS GROW ⫶ WHERE SECURE, RESILIENT CONNECTIVITY IS INCREASINGLY IMPORTANT AMBITION
D
WHY WE CAN WIN
• Established relationships & secure capabilities • Uniquely organised to support Defence through dedicated and secure operations • Aligning our network rollout with the UK’s defence priorities • We supply managed services to 100% of electricity and gas transmission & distributors in the UK • Sovereign capabilities, managed services portfolio and trusted delivery experience
• Expand our role in secure connectivity, infrastructure and managed services supporting defence transformation
Rising investment in defence modernisation and demand for secure, sovereign digital infrastructure
DEFENCE
• Structural growth opportunity for secure, resilient connectivity across millions of critical connected assets
Digitalisation of critical infrastructure is increasing demand for resilient connectivity across distributed assets and operations
ENERGY & UTILITIES
• Be the Public Sector’s trusted digital transformation partner • Capture greater share of secure connectivity, modernisation and managed-services spend
Public-service digitalisation and resilience requirements increasing with demand for secure, reliable technology infrastructure, resulting in £26bn annual spend
• Strategic supplier to UK government • Network scale, sovereign security capability and social-value programmes
PUBLIC SECTOR
55
CONCLUSION ⫶ CONNECTING BUSINESSES TO THEIR POTENTIAL
Strong foundations, with exciting growth opportunities SIMPLIFY – differentiated CX and structurally lower cost-to-serve DIFFERENTIATE – monetising our network and customer scale GROW – focusing on segments with the greatest growth potential
56
Delivering
value creation
Darren Purkis | VodafoneThree, Chief Financial Officer
1. Click to edit Master text styles
VODAFONETHREE ⫶ DELIVERING SIGNIFICANT VALUE CREATION VodafoneThree merger – a clear rationale
A B
Original £0.7 billion annual cost & capex target
A clear path to improved returns & long-term value creation D C Scale enables investment, savings and significant value creation Upgrading our cost & capex target – £1.0bn of annual savings by FY32
58
UK MOBILE MARKET ⫶ QUALITY LAGGING PEERS Global Network Excellence Index (G7) 1
A
Data Affordability Mobile data cost as a % of income 2
Excellent Consistent Quality
Time on 4G/5G
Download Speed
Overall Rank
USA Canada Germany France Japan Italy UK
1.13%
1 2 3 4 5 7 6
1 2 3 4 5 6 7
1 2 3 4 5 6 7
6 5 2 3 4 1 7
1.65%
0.72%
1.24%
1.18%
0.84%
0.52%
Global Network Excellence Index (EU27) 1
• UK mobile coverage is worse than every other member of the G7 and any of the 27 EU member countries • The UK has the lowest data cost relative to income ratio • The cycle of low returns and low investment has driven a poor outcome for the UK and its relative competitiveness on the global stage • VodafoneThree merger enables us to invest £11bn levelling up the UK market, creating opportunities to driver better returns for better quality
EU27
UK
153
98.2%
98.1%
88%
80%
84
Time on 4G/5G
Excellent Consistent Quality
Download Speed (Mbps)
1. Opensignal Global Network Excellence Index Q1 FY26 2. Broadband Genie Mobile data affordability index 2024
59
VODAFONETHREE MERGER ⫶ A CLEAR RATIONALE
A
Sub-scale UK retail mobile market
Low returns
Ofcom’s Return on Capital Employed (ROCE) estimates 2
Share of consumer subscribers (Q4 FY25) 1
20.0%
20.4%
27%
BTEE
17.6%
Sub-scale
23%
22%
13.3%
13.9%
Two smallest operators
13.8%
Impacting our ability to invest & compete
VMO2
Low ROCE %
15%
Impacting customer experience
13%
9.1%
9.1%
Cost of capital MCT
7.8%
4.2%
3.1%
Limited investment
2.1%
0.9%
1.1%
0.8%
VMO2
BTEE
Sky Mobile, Tesco Mobile & Other MVNOs
2019
2020
2021
1. External company reports 2. Ofcom Future Approach to Mobile Market. The cost of capital (pre-tax nominal) comes from Ofcom’s charge control decisions for mobile call termination (MCT) over the relevant period. A lack of scale and returns limited both businesses ability to invest and compete effectively 60
FINANCIAL PROFILE ⫶ PRE AND POST MERGER
A
Mobile market share change (Consumer mobile subscribers) 1
VMO2
25%
27%
FY25
FY25 2 £2.0bn £0.3bn £(0.4)bn £(0.0)bn
FY25
13%
27%
Revenue
£5.0bn £1.3bn £(0.8)bn
£6.9bn £1.6bn £(1.1)bn
15%
Pre- merger
Adjusted EBITDAaL
22%
23%
Capital additions
22%
Operating Free Cash Flow (Adj. EBITDAaL – Capex)
£0.5bn
£0.5bn
26%
BT EE
MVNOs
Providing the necessary scale – supporting returns and investment
1. External company reports 2. Three financials estimated on a full-year (April–March) basis, restated in accordance with Vodafone policies.
61
VODAFONETHREE MERGER ⫶ CLEAR RATIONALE FOR MERGER CASE Deliver significant cost savings… Clear line of sight to £0.7bn annual cost & capex target (by FY30) plus additional revenue synergies We have a detailed integration and restructuring plan that will…
A
… support network investment …
£11bn investment programme over 10 years
99.96% 5G standalone population coverage by 2034 2.5x more network capacity
… deliver a leading UK 5G standalone network …
…and enable improved returns & long-term value creation
Free cash flow accretive by FY29 & delivering returns >cost of capital by FY32
62
Wholesale network monetisation WHOLESALE ⫶ MERGER COMMITMENTS PLUS MONETISATION OPPORTUNITIES
A
Wholesale Reference Offer (‘WRO’) • Commitment to offer wholesale access terms for 3 years (from June 2025) • Standardised terms - ensuring competition retained during network & capacity build Contract rollover • Existing contracts ending within 3 years have the option to rollover on same terms (extension for up to 5 years) Linked to our network commitments • Offers extended if network commitments not achieved • Clear regulatory oversight Current Wholesale commitments
Greater levels of service quality • MNVOs with simple, speed capped offerings • Ability to upsell for an additional cost Access to 5G+ • 5G standalone to be made available to MNVOs for appropriate fee Wholesale strategy framework • Protecting value creation, competition and network investment Incremental network capacity requirements • Fully funded by contracts with MVNOs
A disciplined MVNO framework – honouring our CMA commitments
63
DELIVERING OUR £0.7 BILLION ANNUAL COST & CAPEX TARGET Year 1 Year 2 Year 3 Year 4 Year 5 Organisation c.25% Plans fully in place Rest completed post IT migration 50% delivered by Year 2 B
• Fast start and continued momentum • Fourth layer of organisation now complete • Many functions at end state, ahead of IT migration • Consolidating footprint with >200 overlapping sites to close • c.30% reduction in pre-merger cost base • Rationalisation of the combined marketing, sales, distribution and logistics activities • Rationalisation & upgrade of radio sites • Consolidation of operating centres and in-the-field resources • Consolidation of IT systems. Benefit delivered after data migration and systems rationalisation complete
Plans fully in place
Retail
Well underway
c.10%
Plans fully in place
Ahead of plans
Commercial
c.10%
>80% of marketing and >50% of logistics synergies achieved by Yr2
Cost synergies building from Year 2 onwards
Network
c.30%
On-track
Capex savings from Yr5 following investment phase (Yr1-4)
Design complete, build underway
IT
c.15%
On-track
Test & business readiness activities in planning
• Leveraging scale efficiency • Eliminating duplication of contracts
Procurement c.10%
On-track
£0.7bn
64
C
ADDITIONAL SYNERGY OPPORTUNITIES Additional revenue synergies on top
Benefits of full Vodafone Group ownership
+ Streamlined governance structure + Reduced management complexity + Faster decision making Simplified reporting structure
BEST NETWORK • Improved customer retention • Network monetisation opportunities (i.e. SuperMobile) • Customer upsell
CROSS-SELL • Selling to the Three mobile customer base • Improved customer retention & lifetime- value from converged offers e.g. Vodafone Together and Vodafone TV
+ Leveraging Group scale to drive procurement efficiencies + Scaled commercial platforms + Group Shared Services efficiencies Easier access to Vodafone Group scale
FWA
5G SA
• Grow FWA customer base supported by greater network coverage and capacity
• Dedicated Enterprise applications e.g. network slicing
Further £0.1bn cost saving opportunity
65
C
UPGRADING OUR COST TARGET DELIVERING £1.0 BILLION PER ANNUM BY FY32 Clear line of sight to delivering £1.0 billion of annual run-rate savings by FY32
Further savings as network build concludes & benefits of network rationalisation
Capex Cost Benefits of 100% ownership
Upgraded from £0.7bn original target £0.8bn
First year of material opex synergies
Next 5 years
Capex dis-synergies in early years reflecting step up in investment
FY26
FY27
FY30
FY32
66
D
Investing to deliver the UK’s best network Integration and restructuring A CLEAR PATH TO IMPROVED RETURNS & LONG-TERM VALUE CREATION FY27 is a ‘peak’ year for capex and this will moderate over time 70% within the first two years
Opex
Capex
c.£1.4bn
FY26
FY27e
FY28e
FY29e
FY30e
FY26
FY27e
FY34e
On track to invest £11 billion over 10 years
£0.5 billion over 5 years
67
D
A CLEAR PATH TO IMPROVED RETURNS & LONG-TERM VALUE CREATION Upgraded annual cost & capex target Driving Adj. EBITDAaL growth
%
£1.0bn
£0.7bn
£1.6bn
Mid-to-high single digit CAGR
Additional c.£0.3bn
Sustainable long-term value creation
FY32 target
Original FY30 target
Benefits of Group ownership
Network savings + rationalisation
FY25
FY32e
ROCE 1 > cost of capital by FY32
Delivering strong Operating FCF growth 1
Over 3x
Good returns
Cost of capital
£0.5bn
FY26
FY32e
FY34e
FY25
FY32e
1. Adjusted EBITDAaL less capital additions 2. Pre-tax Return on Capital Employed (including goodwill)
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