strategy analyst presentation 2006

8/8/2019 Strategy Analyst Presentation 2006

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Vodafone Group PlcStrategy Update

Analyst Presentation30 May 2006


2/30

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Strategy update

Arun Sarin

Chief Executive

30th May 2006

Strategy update2

The following presentation is being made only to, and are only directed at, persons to whom suchpresentation may lawfully be communicated (relevant persons). Any person who is not a relevantperson should not act or rely on this presentation or any of its contents.

Information in the following presentation relating to the price at which relevant investments havebeen bought or sold in the past or the yield on such investments cannot be relied upon as a guideto the future performance of such investments.

The presentation contains forward-looking statements which are subject to risks and uncertaintiesbecause they relate to future events. Some of the factors which may cause actual results to differfrom these forward-looking statements are discussed in the last slide of the presentation and otherscan be found by referring to the information contained under the heading Risk Factors in our

Annual Report for the year ended 31 March 2005. The Annual Report can be found on our website(www.vodafone.com).

The presentation also contains certain non-GAAP financial information. The Groups managementbelieves these measures provide valuable additional information in understanding the performanceof the Group or the Groups businesses because they provide measures used by the Group toassess performance. Although these measures are important in the management of the business,they should not be viewed as replacements for, but rather as complementary to, the comparableGAAP measures such as turnover and reported items on the consolidated profit and loss accountor the consolidated statement of cash flows.

Vodafone, Vodafone live!, Vodafone Wireless Office, Vodafone Mobile Connect, VodafoneZuhause, Vodafone Radio DJ, Vodafone Simply, Stop the Clock and Vodafone Passport aretrademarks of the Vodafone Group.


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30th May 2006

Strategy update3

Strategy Update Agenda

Competitive Environment and Vodafones Strategic ObjectivesArun Sarin

Emerging Markets Focus on GrowthPaul Donovan

New Businesses Mobile PlusThomas Geitner

Europe Region Cost Reduction and Revenue StimulationBill Morrow

Mobile Plus in GermanyFritz Joussen

Summary and Q&AArun Sarin

Aligning Financial Policies to StrategyAndy Halford

30th May 2006

Strategy update4

Pace of change in mobile is accelerating

Customers

Technology

Competitors

Regulation

Customers

Growing choice of services

Value and simplicity

Converged mobile,broadband and internet offerings

Emerging market growth

Technology

VoIP

WiFi/WiMAX

DSL

Regulation

Termination rates

Roaming

MVNO wholesaling

Competitors

Aggressive incumbent MNOs

Integrated fixed/mobile

MVNOs/low frills providers

Internet players

MobileIndustry


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30th May 2006

Strategy update5

The new realities of the mobile industry

Competition is intensifying from existing and new players

Significant price erosion

Customers have far greater choice in communications

Growing demand for broadband

Emerging markets delivering significant growth

Continued significant regulatory pressure

Mobile business model is changing

30th May 2006

Strategy update6

Vodafones five key strategic objectives

Cost reduction and revenue stimulation in Europe

Deliver strong growth in emerging markets

Innovate and deliver on our customers total communications needs

Actively manage our portfolio to maximise returns

Align capital structure and shareholder returns policy to strategy


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30th May 2006

Strategy update7

Organisation to deliver new strategic objectives

Cost reduction Revenue stimulation

Europe

Bill Morrow

Deliver strong growth in emerging markets Outperform on recently acquired businesses Maximise shareholder returns from affiliates

EMAPAPaul Donovan

Mobile Plus

Thomas Geitner

Capture new sources of revenue

Innovative total communications solutions

30th May 2006

Strategy update8

In Europe the focus is on cost reduction and revenuestimulation

Reduce cost structure

Leverage regional scale

Outsourcing

Shared services

Overhead reduction

Stimulate voice usage

Substitute fixed minutes

Enhance customer value

Innovative bundling

Vodafone At Home

Vodafone At Office

HSDPA enabled services

Objectives Approaches

Cost Reduction

Revenue

Stimulation


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30th May 2006

Strategy update9

Deliver high performance inexisting operations

Outperform new acquisitionsbusiness case

Raise stakes over time - selective

opportunities to extend footprint

Global mobile telecom annual revenues

CAGR %

12.3

4.4

310

2005

434

2010eEmerging marketsDeveloped markets

275221

159

89

Emerging marketsare ~60% of totalexpected growthover next 5 years

Emerging markets will deliver strong growth

Vodafone Priorities

bn

Source: Merrill Lynch, Strategy Analytics

30th May 2006

Strategy update10

Customers can now communicate in many different ways

More places: At Home,At Office, hotspots,

mobile

More devices: basic phones, cameraphones, music phones, UMA devices

More services: VoIP, IM, Blogging

More access technologies:DSL, WiFi

More mobile applications:Push Email, SFA


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30th May 2006

Strategy update11

Vodafone will focus initially on three key areas

Targeting around 10% of total revenue in 3 to 4 years

Address fixed line revenueopportunity via VodafoneAt Home and Vodafone

At Office

Create advertisingrevenue stream

Develop integratedmobile andPC offerings

Mobile centric approach Mobile Plus offerings

30th May 2006

Strategy update12

Vodafones scale and being mobile centric are clearcompetitive advantages

170 millionVodafone customers

Personalisation

No fixed line burden

Attractive to partners

Technology agnostic

Mobility


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30th May 2006

Strategy update13

Portfolio management priorities

Selective approach

Regional focus

Superior returns

Strict criteria

30th May 2006

Strategy update14

Vodafones approach to the US market

9.09.4

9.9

8.5

10.8

11.9

12.7

7.7

9.4

12.1

13.7

14.9

8.0

10.3

12.1

14.0

15.2

$6

$8

$10

$12

$14

$16

CY2003 CY2004 CY2005 CY2006 CY2007

(US$ in billions)

US market is relatively under penetrated (~ 70%) and valuable (300m population)

VZW is the market leader on all key metrics

No 1 US mobile operator by EBITDA with margins >38% of total revenue

No 1 US mobile operator for customer growth with 7.6 million net adds in last 12 months

Vodafones Board will always consider shareholder value

Vodafone is happy to remain in the US with its existing stake

US Analysts consensus EBITDA Projections vs. Actuals

Estimates as of:

2003 E

2004 E

2005 E

2006 E

Actual


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30th May 2006

Strategy update15

60% dividend payout

Low Single A rating

9bn B share distribution

Financial impact and capital structure

Targeting profitable growth

Growth in emergingmarkets

Cost reduction &revenue

stimulation in Europe

Align financial policies to support new strategy

Actively manage ourportfolio

Deliver innovativeMobile Plus products

30th May 2006

Strategy update16

Summary

Changing industry landscape

Vodafone continues to outperform

Strategy has evolved to ensure continued success

Vodafone well positioned to deliver


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30th May 2006

Strategy update17

Strategy Update Agenda

Competitive Environment and Vodafones Strategic ObjectivesArun Sarin

Emerging Markets Focus on GrowthPaul Donovan

New Businesses Mobile PlusThomas Geitner

Europe Region Cost Reduction and Revenue StimulationBill Morrow

Mobile Plus in GermanyFritz Joussen

Summary and Q&AArun Sarin

Aligning Financial Policies to StrategyAndy Halford

Europe Region Cost Reductionand Revenue Stimulation

Bill Morrow

CEO, Europe Region


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29. Mai 200630th May 2006

Strategy update19

The Europe Region generates around 80% of Group

controlled revenues and profits

90%6.9bn

Operating free

cash flow

80%23.5bnRevenue

83%5.8bnOperating profit2

70%2.8bnCapex

70%93.2mnCustomers1

40.7k

FY 05/06

67%

Percentage ofcontrolled

businesses

Employees3

Note: Europe Region statutory basis (excluding Sweden). Percentagesbased on continuing group businesses only.1EOP, mobile only. 2Adjusted operating profit before impairment losses andother income and expense. 3Average employees.

29. Mai 200630th May 2006

Strategy update20

Our primary objective is to drive our multi-year cashgeneration

We will do this by:

Maintaining our market leadership positions

Aggressively reducing costs

Driving revenue stimulation

Disciplined execution


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29. Mai 200630th May 2006

Strategy update21

Vodafone is and must remain a market leader in revenue

and EBITDA share

142%Greece

153%Ireland

238%Portugal4

236%Italy

1=37%Germany

29%

32%

28%

Vodafoneshare

1

2

2

Vodafoneposition

UK

Spain

Netherlands

233%Portugal4

155%Ireland2

144%Greece

230%Netherlands

228%Spain

33%

46%

45%

Vodafoneshare

1

2

1

Vodafoneposition

UK3

Italy3

Germany

Revenue1 share and position vs. keycompetitors FY 05/06

EBITDA share and position vs. keycompetitors FY 05/06

Note: 1Total revenues, except for Italy for which available data for service revenue. 2Excludes Meteor and 3: data for 6 mths to Sept 05. 3Excludes 3. 49 mthsto Dec 05

Source: Company data (excludes Malta and Albania), external available data and analyst forecasts.

29. Mai 200630th May 2006

Strategy update22

Vodafone is and must remain a market leader in brandpreference and customer satisfaction

2Greece

2Ireland

1Portugal

1Italy

1Germany

2

1

1

Vodafone customersatisfaction position

UK

Spain

Netherlands

Leading in customer satisfaction

Continuing strong brand preference

Clearly differentiated customer

propositions: Vodafone live!

Vodafone Mobile Connect

Vodafone Passport

Vodafone Simply

High service levels

Value-oriented tariffs

Note: Data based on Vodafone external survey March 2006.


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29. Mai 200630th May 2006

Strategy update23

Vodafones unique position gives us an advantage

Distribution presence

Brand visibility

Local SCM

Networked effects

Spreading costs

Common product development

Advertising cost sharing

Pan European offerings

Shared services

Standardisation and consolidation

Local

Regional

Global Brand

Supply chain

MNC proposition

Strategic partner appeal

Scalebene

fitandcompetitiveadvantage

Uniqueposition

#1 or #2today

29. Mai 200630th May 2006

Strategy update24

We are changing our cost structure

Operations

7.5bn Opex andCapex (FY 05/06)1

Outsourcing

Sharing assets

Reduced overheads

Global synergies

Regional savings

Local savings

Full service for allcustomers

Mixture of direct andindirect costs

Customer A&RCosts

2.6bn (FY 05/06)1

Service segmentation by lifetime value

Focus on direct distribution including online

1Europe Region statutory basis (excluding Sweden)

Today

Fully controlledoperations

Some regionalconsolidation

Going forward


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29. Mai 200630th May 2006

Strategy update25

Key actions to reduce operating and capital costsToday Actions Opportunity

IT ApplicationDevelopment

andMaintenance

Outsourcing

~6,500 FTEs involvedin service delivery

560mn annual costto Vodafone

Decision to outsource

Suppliers to bereduced from ~2,500to 1-2 primaryvendors

Potential annualsavings of 25-30%within 3-5 years

Supply ChainManagement

GlobalSavings

Separate local andglobal activities

3.3bn total networkexternal spend toVodafone

Standardisation ofdesigns

Materials categorystrategies

Centralisation ofNetwork SCM activities

Potential annualsavings of 8% within2 years

Regionalised Northern &

Southern Data Centres 75% fewer major data

centres

Consolidated hardware,software, maintenanceand system integrationsuppliers

European ITOperations

RegionalSavings

Multiple data centrelocations

320mn annual cashcost to Vodafone

Potential annualsavings of 25-30%within 3-5 years

29. Mai 200630th May 2006

Strategy update26

Today Actions Opportunity

Key actions to reduce operating and capital costs - contd.

ReducedGroup

overheadsOverheads Global Technology,

Global Marketing andother functions withstronger globalorientation

Reduction of 400+positions

Ensuring appropriatebalance betweenglobal and local

Reduction in Groupoverheads

Accesstransmission

LocalSavings

Multiple leased lineproviders

Increasing capacityrequirements

Annual opex spendtoday of 280mn

Move to owned fibreand microwavenetwork

Large percentagereduction of leasedlines migrated by2008

Potential annualsavings of 10-15%within 2 years

Additional bandwidth


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29. Mai 200630th May 2006

Strategy update27

We are evolving our business model to stimulate revenue

Promotions

3G infotainment Mobile only focus

Usage

14% total minutevolume increase

(FY 05/06)1

3G bundles and smart tariff plans

Fixed substitution Converged business services

1Europe Region statutory basis (excluding Sweden).

Customers

7.7mn net adds(FY 05/06)1

Revenue share focus

Focus on customer value

Pushing services not just acquisitions

Extended contract terms

Customer marketshare

Today Going forward

29. Mai 200630th May 2006

Strategy update28


Key actions to stimulate revenue

1Provisioned subscribers paying for email service.

High valuecustomer

(HVC) focus

Spain: Prepay to contractmigration increased MoUby 174% and ARPU by66%

UK: 18-month contracts toincrease lifetime value arenow 80% of total consumerpostpay gross additions

Potential 2%incremental revenuefrom consumer

segments and 5%reduction in A&R costsin year 3

Customer numbers

focus

Single year contractterms

Family plans Few tailored familyofferings

Greece: 10% of

contract base on highARPU plan with 80%families adding at leastone new member

Potential 2%

incremental revenuefrom consumersegments in year 3

HBD increase of 164% insubscribers1 in FY05/06

Exclusive deals with laptopOEMs

UK: Recent deal covering

20,000 users doubled theaccount value

Convergedbusinessservices

Early launches ofhandheld businessdevices (HBD) and

new service models

Potential 6%incremental revenuefrom Business

customers in year 3


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29. Mai 200630th May 2006

Strategy update29

Over 6mn customers

benefiting

Large percentage of HVCs(62% registrations from top40%)

Increased customer

satisfaction


Key actions to stimulate revenue contd.

VodafonePassport

For recurring roamers, 15%increase in businesscustomer minutes, 39% in

postpay and 106% inprepay

Target of 11mncustomers by the end

of 06/07

Consumer

Bundles launched todrive revenue,stickiness andcustomer growth

Mobile TV, music services

and HomeZone callingoptions

Germany: migrated 35%of contract base to higher

bundle with 2 ARPU uplift

Potentially up to 1%incremental revenuefrom consumers ofbundled services in

year 3

Business

Vodafone WirelessOffice propositions

launched in mostmarkets

Over 1.5mn users

Spain: 500k wirelessoffice users with usagearound 50% higher than

for average businessusers

Potential 2%

incremental voicerevenue from Business

customers in year 3

Drive traffic growth,particularly from fixed-

line substitution

29. Mai 200630th May 2006

Strategy update30

Moving early to wireless broadband

HSDPA full commercial launch Summer 2006 4 times faster than 3G to date

Coverage equivalent to 3G today by mid 2007 in key markets

Vodafone live! with 3G

Business propositions

WCDMA 3G Network built to about 60% across all markets

Wireless Broadband


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30th May 2006

Strategy update33

EMAPA (FY 05/06)

35.5 million customers

4.2bn revenues

1.5bn EBITDA

41.8 million customers

12.7bn revenues

4.8bn EBITDA

Subsidiaries and JVs

Affiliates

Deliver high performance incontrolled businesses

Maximise shareholder returns inaffiliates

Leverage measurable synergybenefits from scale and scope

Outperform acquisition business

cases

EMAPA Priorities

30th May 2006

Strategy update34

Emerging markets

High customer growth

Lower ARPU but healthymargins

Immature fixed line markets

Low cost business models

Best practice focus

Handsets

Network rollout

Banking/Payments

Migrant workers propositions

Subsidiaries

Joint ventures and investments

Partner Networks


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30th May 2006

Strategy update35

Romania

Reversed revenue share trend+1.1pp FY 05/06

Exceeded acquisition plan EBITDAby 17%

Czech Republic

2.2 pp increase in revenue marketshare FY 05/06

Positive ARPU trend

Exceeded acquisition plan EBITDAby 11%

Romania and Czech Republic successful integration

Recent highlights

Romania

22mn population

66% penetration

Czech Republic

10mn population113% penetration

30th May 2006

Strategy update36

Turkey

Turkey ready for turnaround

Telsim acquisition now closed

Favourable demographics

11.6m customers (March 06)

24.7% market share (March 06)

Immediate priorities

Reposition from price to value

Invest in coverage and quality

Improve customer service

Transition path to Vodafone brand

73mn population

56% penetration


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30th May 2006

Strategy update37

Egypt Vodafone outperforming the market

Egypt

Penetration growth

Outperformance vs competition

6pp margin outperformance vscompetition

Third operator to come

Recent highlights


Customers

Revenue

35

40

45

50

55

60

Jun-02

Oct-02

Feb-03

Jun-03

Oct-03

Feb-04

Jun-04

Oct-04

Feb-05

Jun-05

Oct-05

Feb-06

Vodafone

MobiNil

40

45

50

55

60

Sep-02

Nov-02

Jan-03

Mar-03

May-03

Jul-03

Sep-03

Nov-03

Jan-04

Mar-04

May-04

Jul-04

Sep-04

Nov-04

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

Vodafone

MobiNil

30th May 2006

Strategy update38

Increased stake to 49.9%

Exposure to five markets South Africa

Democratic Republic Congo

Lesotho

Mozambique Tanzania

South Africa view:

FY 05/06 customer growth +49%

FY 05/06 EBITDA growth +22%

Innovators in data:

Vodafone live!

Blackberry

HSDPA

South Africa consistent track record of growthat Vodacom

South Africa

Recent highlights


Vodacom subsidiaries



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30th May 2006

Strategy update39

India - catching up with Chinas market growth

10% of Bharti acquired inDecember 05

Strong performance

Market growing at 4-5m customersper month

Bharti net additions around 1m permonth

Revenue share leader with 3-4%

lead over nearest competitor

Recent highlights

India

1.2bn population6% penetration

30th May 2006

Strategy update40

Key messages

Eastern Europe and Emerging markets strong organicrevenue growth

Recent acquisitions are outperforming local competition

Measurable benefits from Vodafones scale and scope

Effective transfer of knowledge to drive local operationalperformance

Measured approach to further investment


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New Businesses Mobile Plus

Thomas GeitnerCEO, New Businesses and Innovation

29. Mai 200630th May 2006

Strategy update42

Mobile Plus will allow us to address new sources ofrevenue

Global Revenues 20051 - bn

Source: IDC, Merrill Lynch, Zenith Optomedia

306

226

264

Advertising

Mobile

Fixed

Voice+Data


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29. Mai 200630th May 2006

Strategy update43

Mobile Plus seeks to meet several customers needs

Access to communities

Faster speed and availability

Desire for mobility and personalisation

Value and simplicity

29. Mai 200630th May 2006

Strategy update44

Our customers regard Vodafone as a credible providerof communications services in addition to mobile

77%

86%84% 84%

74%

86%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of customers finding Vodafone brand credible to deliver future complete communicationsoffer (mobile, fixed data, fixed VoIP)

At Home At Office

UK Germany Italy UK Germany Italy

Source: Vodafone Customer Research

Vodafone recently ranked 16th most valuable brand in the world


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29. Mai 200630th May 2006

Strategy update45

We will initially focus around 3 areas

Extend our reach with Vodafone At Home andVodafone At Office to address fixed line revenues

IP-based services that integrate mobile with theInternet/PC

Advertising-based services that are delivered in ways

that customers find attractive

29. Mai 200630th May 2006

Strategy update46

A wide array of technologies Phase I:Fixed MobileSubstitution

(FMS)

Phase II:FMS + DSL

Phase III:Total

CommunicationsSolution

Homezone

Officezone

Straight bundling

Asset light /wholesale

WiFi

VoIP

Software enabledproducts

Fixed to mobile substitution is at the core of Mobile Plus

3GHSDPA

WiFi

IP

DSL

Homezone tolaunch in

majority ofEurope Region

opcos thisfinancial year


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29. Mai 200630th May 2006

Strategy update47

Combining the Best of Both Mobile and the Internet All the benefits of the

Internet on yourmobilee.g. buddy list, email

All the benefits ofmobile on your PCe.g. secure, personal

Services that workseamlessly betweenthe twoe.g. messages,

address book

Delivered viapartnerships andVodafone IPR

IP-based communications will integrate mobility with

the PC

Internet

Mobile PC

29. Mai 200630th May 2006

Strategy update48

We will broaden our business model to includemobile advertising

SMS/MMSpush

Customerpull

Idlescreen

Mobile TVinserts

Different AdvertisingOpportunities on Mobile

Global On-line Advertising Revenues (bn)

31.7

27.8

24.6

21.217.2

9.4

6.45.05.3

13.4

0.0

5.0

10.0

15.0

20.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

25.0

30.0

35.0

Source: Yahoo investor presentation


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29. Mai 200630th May 2006

Strategy update49

Our approach will be different

Vodafone advantages vs.

Incumbents + DSL Providers

Vodafone advantages vs.Internet Players

Vodafone has:

Long term customer relationships andinsights

Control over devices

Scale to be partner of choice foronline players

Vodafone is:

Customer demand led

Able to offer mobile and only the fixedservices customers want

Infrastructure-light

Creating offers that centre on mobility,the most personal service

29. Mai 200630th May 2006

Strategy update50

We have already started including these types ofoffers in our portfolio

Totalcommunications

IP-basedcommunication

Advertising

IM interconnection with MSN

Push emails deals with Yahoo and MSN

Trusted Transaction Framework with Microsoft

Search partnership with Google

Homezone products: Vodafone Zuhause (DE),Vodafone Casa (IT)

Vodafone Wireless Office

Softbank JV


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29. Mai 200630th May 2006

Strategy update51

Summary of the opportunity

We have 3 initial focus areas to drive forward Mobile Plus

Extend reach with Vodafone At Home and Vodafone At Office toaddress fixed line revenue

Integrate mobile with the Internet/PC

Deliver advertising based services

Mobile Plus will account for around 10%of total revenue in 3 to 4 years

Mobile Plus in Germany

Fritz Joussen

CEO, Vodafone Germany


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29 May 200630th May 2006

Strategy update53

29bn market volume

EBITDA margin: 37% (DTAG)

Share of minutes: 82% 43 ARPU

Germanmobilemarket

German fixedline market

25bn market volume

EBITDA margin: up to 40%

Share of minutes: 18%

24 ARPU

Fixed to mobile substitution represents a big opportunity

Source: IDC, Company Data

29 May 200630th May 2006

Strategy update54

Vodafone Zuhause Tariff options - ontop of mobile tariff

440k customers with 5 ARPU uplift

Vodafone Zuhause Talk 24 - separate

SIM


Vodafone Zuhause Web - mobile

broadband


Zuhause Option Zuhause Talk 24

Zuhause Web

We started Vodafone Zuhause 12 months ago

40k

150k

440k

Significant ARPU upliftTotal of around 630k customers today

Vodafone Zuhause already generates 80 mn in annualised revenue contribution


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29 May 200630th May 2006

Strategy update55

There is a strong demand for DSL in Germany

Top reasons for rejecting Vodafone Zuhause DSL penetration: 25% in 2005 up to 60% in 2009

Other reasons

63%

37%Customer wants fixed

broadband internet access

Source: Company quantitative consumer market research, July 2005 Source: Telebasic 2005; Telekom press release; UADS 12/05; Arcor

90

80

70

60

50

40

30

20

10

0100 20 3 0 40 50 6 0 7 0

Malaysia

China

Czech

USA

Venezuela

Brazil

ColombiaBelgium

Switzerland

Taiwan

Singapore

S-Korea

Japan

Netherlands

HongKong

Spain

AustriaSweden

Portugal

Germany Italy UK

France

Nascentmarkets

Growingmarkets

Maturemarkets

Trend Line

% Broadband House hold Penetration 2005

ARPU$USperMonth

29 May 200630th May 2006

Strategy update56

We will launch Vodafone Zuhause with DSL in Q3of FY 06/07

On-top: VodafoneHomezone voice

On-top: VodafoneHomezone broadbanddata

Existing Vodafonemobile offerings

Increasing value tothe customer and increasing

profit pool for Vodafone

DSL HSDPA

Competing on user experience, not on price

HSDPA


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29 May 200630th May 2006

Strategy update57

User Experience I:

Instantly ready to use

1,800 own retail outlets

500k outbound customer contactsper month

SIM activation, provisioning ofHomezone and geographicalnumber within 5 minutes

Instant use of Vodafone ZuhauseVoice and Data based on HSDPAbefore DSL installed

Access independent broadbandflatrate for use on DSL and HSDPA

Explore

Deliver

Use

29 May 200630th May 2006

Strategy update58

Mobile PC

User Experience II:Seamless extension of Vodafone live! from Mobile to Web

3.5 m users


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29 May 200630th May 2006

Strategy update59

User Experience III:

Mobile access to rich media personal content and applications onhome PC connected to Internet

Mobile access tohome PC

Media stream ontomobile phone

3G/HSDPA DSL

29 May 200630th May 2006

Strategy update60

Total Vodafone Zuhause customersaround 2 million

Annualised revenue contribution of 240m

Financial summary - significant revenue growth fromVodafone Zuhause in FY 06/07

Total Vodafone Zuhause customersaround 630k

Annualised revenue contribution of 80m

Vodafone Zuhause customers

at 31 March 2007Vodafone Zuhause customers today

Zu hause Voice Zuhause DataZuhause Voice Zuhause Data

590k

40k

1,850k

150k

strategy analyst presentation 2006

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