Vodafone Business Investor Briefing

March 2021
 ⫶ Agenda Video presentation here:
investors.vodafone.com

Welcome & introduction p3

1
1 We operate in attractive markets. Vinod Kumar
CEO
p8

2
2 We have unique scale & capabilities. p21

3 We have strong operating momentum.

Sateesh Kamath
Finance Director p35

4
3 We are on a clear growth pathway. Vinod Kumar
p46
CEO
Conclusions p56
Appendices p58
Investor Briefing
March 2021 2
 ⫶ Connecting people, places & things for a better future Video here:
investors.vodafone.com

>6 million 150+ million €10 billion 28% of

customers connections Service revenue Vodafone1

Investor Briefing
March 2021
1Proportion of Vodafone Group FY20 Service Revenue 3
1 ⫶ We operate in attractive markets.
…with full breadth of … across large geographic
Serving all customer sizes…
products… footprint
Mobile Germany
€16bn market €34bn market
SOHO1 1% market growth

€13bn market Fixed

3% market growth
€27bn market UK
1% market growth
€30bn market
Unified
€9bn market
SME 12% market growth Italy
€18bn market Cloud €14bn market
8% market growth €40bn market
12% market growth

Spain
Security
€4bn market €12bn market
12% market growth
Enterprise
IoT Africa & other2
€75bn market €10bn market
Africa
& other
9% market growth 16% market growth €16bn market

Total €100+ billion addressable market

Investor Briefing Source: Vodafone market model. Market growth rates for FY21-FY24 CAGR
March 2021
1Small Office & Home Offices. A business with 1-9 employees
2Africa & other: Albania, Czech Republic, Ghana, Greece, Hungary, Ireland, Portugal, Romania, Vodacom, Egypt, Turkey
4
2 ⫶ We have unique scale & capabilities.
The largest dedicated B2B connectivity provider in Europe & Africa
Network
infrastructure

• Reliable global connections

• Integrated convergence

Product
development

• Greater investment capability

• Multiple market potential

Scalable
platforms

• Standardised technology
• Streamlined deployment

Strategic
partnerships
21 Controlled/JV operating presence 10 Vodafone branded partner market
• Larger attractive footprint
• ‘Plug & play’ platforms Vodafone sales & support 2 Minority holding operating presence 38 Non-branded partner market

Investor Briefing
March 2021 5
3 ⫶ We have strong operating momentum.
Service Revenue Contribution margin1 Capital intensity
Jan - Dec YoY% Jan - Dec Capital model Indicative ROCE

High capital need Low &

Mobile €5.9bn -0.4%2 70-75%
(direct invest model) improving

High capital need Low &

Fixed €3.1bn 3.9% 40-50% (direct invest &
improving
partnership model)

Unified €0.6bn 3.8% 30-40% Low capital need High

Included in Mobile & Fixed (partnership model)

Low capital need

Cloud & Security €0.5bn 10.0% 35-45% (partnership model) High

Medium capital need

IoT €0.8bn 8.7% 75-85% (direct invest model)
High

Total Business €10.3bn 1.9%2 60-65%

Investor Briefing
6
1Contribution margin is defined in Appendix 1
2Mobile excl. C-19 roaming & visitor impact
March 2021
4 ⫶ We are on a clear growth pathway.
Our ambition
Our 3-pillar growth plan

Above-market revenue growth in

Mobile & Fixed

Double-digit revenue growth in Unified,

Cloud, Security & IoT

Optimised balance of EBITDA growth

& EBITDA margin

Investment in high marginal ROCE

opportunities

Consistent ROCE growth

Investor Briefing
March 2021 7
1 ⫶ We operate in attractive markets.

Vinod Kumar
CEO
Vodafone Business

Investor
Investor Briefing
March 2021 8
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Key messages ⫶ We operate in attractive markets.

A We operate in attractive addressable markets.

B We serve private & public sector customers of all sizes.

C Our markets are fragmented, but benefit from scale.

D Our markets have compelling growth drivers.

Investor Briefing
March 2021 9
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

A ⫶ We operate in attractive addressable markets.

Africa &
other1
We operate in
a few large
national Germany UK Italy Spain Other markets
markets… €34bn €30bn €14bn €12bn €16bn

…serving all
customer Enterprise SME SOHO 2
types… €75bn €18bn €13bn

…with a full
range of
products & Mobile Fixed Unified Cloud Security IoT
solutions. €16bn €27bn €9bn €40bn €4bn €10bn

€100+ billion addressable market size

Investor Briefing Source: Vodafone market model
March 2021
1Africa & other includes: Albania, Czech Republic, Ghana, Greece, Hungary, Ireland, Portugal, Romania, Vodacom, Egyot, Turkey
2Small Office & Home Offices. A business with 1-9 employees
10
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

A ⫶ We operate in attractive addressable markets.

Denotes size of addressable industry profit pool

11
Significant differences in addressable profit pools, but each
Illustrative industry contribution margin

IoT
with specific capital requirements & opportunities
Significant directly
We have a clear choice on where to operate & invest. addressable profit pool
Mobile in emerging area with
attractive marginal
Strong margin profile, ROCE
leverages existing
capital infrastructure

Fixed
Good margin & critical enabler to Cloud
‘bundle’ additional products Unified Security
Good margin & Largest profit pool, but value Good margin &
Significant differences between attractive ‘add-on’ chain dominated by global attractive ‘add-on’
legacy products & next opportunity with technology companies opportunity with limited
generation connectivity limited capital Good margin & attractive ‘add-on’ capital requirements
requirements through opportunity with limited capital through partnerships
partnerships requirements through
partnerships

Illustrative industry share of revenue

Investor Briefing
March 2021 11
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.
Video case study here:
B ⫶ We serve private & public sector customers of all sizes. investors.vodafone.com

Consumer SOHO SME Enterprise

(Small Office & Home Office)

Corporate MNC Public sector

1-9 employees 10-99 employees
100+ employees 1,000+ employees 100+ employees

Multiple sites Multiple sites

Single site >1 site Multiple sites
globally nationally

Complex IT Complex IT Complex IT

Little in-house IT capability Limited IT resources
requirements requirements requirements
No
Vodafone Business
involvement
Professional
Highly Framework driven
Influenced by consumer Seeking trusted advisor with buyers
sophisticated seeking value-for-
proposition value competitive
buyers money
tenders

Share of
revenue1 26% 28% 46%

Market
share2 20% 15% 6%

Investor Briefing
12
1Q3 FY21 YTD share of total Vodafone Business service revenue
2Estimated share of total addressable revenue market size
March 2021
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ We serve private & public sector customers of all sizes.

Enterprise

7 sectors drive Retail

Manufacturing Financial services Govt. & EducationProf. services& wholesale Telco Health Other
overall market
€18bn €17bn €8bn €7bn €4bn €4bn €11bn
spend… €6bn

…with cloud
infrastructure Security 1
Mobile Fixed Unified Cloud IoT
driving
€7bn €17bn €4bn €36bn €3bn €8bn
current
investment

Investor Briefing
March 2021
Source: Vodafone market model 13
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ We serve private & public sector customers of all sizes.

SME

5 sectors drive
Manufacturing Prof. services Retail & wholesale Financial services Health Other
overall market
€5bn €3bn €3bn €2bn €1bn €4bn
spend…

…with core
connectivity 1

driving Mobile Fixed Unified Cloud Security IoT

current €5bn €5bn €2bn €3bn €1bn €2bn
investment

Investor Briefing
March 2021
Source: Vodafone market model 14
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

C ⫶ Our markets are fragmented...

Core connectivity market consolidated, but high fragmentation in growth markets presents an opportunity

Customer Mobile Fixed Unified Cloud Security IoT

Incumbent MNO Global Telco SI OTT MNO Hyper- SI Spec. MNO MVNO
Deutsche Telekom Verizon, AT&T IBM Google DT scaler IBM sia Verizon cubic
BT Fujitsu MS Orange Google Accenture SSP AT&T transtel
Telefonica Accenture AWS BT AWS ATOS ITC Orange Truphone
Telecom Italia New entrants Zoom Telefonica Azure axians ESC Telefonica KORE
Orange alkira, aryaka Slack TIM Alibaba DGS DT
Enterprise twillo NTT
NTC
Local
colt
Fastweb Vendor Local
Cisco claranet
Gamma
8x8 rackspace
daisy
Mitel
SME

Low-cost MNO
1&1 Drillisch ISV
Iliad Trend Micro
Served by consumer providers Microsoft Served by consumer providers
Masmovil
McAfee
SOHO Virgin Symantec
kaspersky

Investor Briefing
March 2021 15
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

C ⫶ …but benefit from scale.

Breadth & scale are key success factors in supporting our customers

Network Product Access to

Scalable platforms
infrastructure development partners

• Ability to reliably • Greater investment • Standardised • Large footprint

connect globally capability technology provider attractive
base
• Integrated • Multiple market • Deployment across
convergence sales potential multiple markets • Scaled ‘plug & play’

Vodafone Business is the largest dedicated B2B connectivity provider in Europe & Africa

Investor Briefing
March 2021 16
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

D ⫶ Our markets have compelling growth drivers.

Structural drivers Customer requirements Growth opportunity
Significant ‘catch-up’ as Mobile
SMEs & public sector
Seamless
Higher usage with faster speeds
digitalise processes connectivity
Fixed
Fast, reliable & scalable
Fast connectivity + low connectivity to the cloud
latency enables new More ‘things’
industrial applications & connected Unified communications
enhanced automation Integration of connectivity &
collaboration applications

Employers are Cloud Cloud

accelerating flexible More organisations & more
migration applications
working arrangements

Security
Higher risks, so higher spend
Data protection & Advanced data
cybersecurity elevated IoT
to mission critical
security
Industrialising connectivity

Investor Briefing
March 2021 17
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

D ⫶ Our markets have compelling growth drivers.

FY21 €13bn
• Incremental €1 billion market growth
SOHO FY22 €13bn over 3 years
€13bn market • Market share opportunity
FY23 €14bn
3% CAGR • Leverage Vodafone consumer propositions
FY24 €14bn

FY21 €18bn • Incremental €5 billion market growth

over 3 years
SME FY22 €20bn
• Good market share opportunity
€18bn market
8% CAGR FY23 €21bn • Strong opportunity to bundle non-
connectivity services through technology
partnerships
FY24 €23bn

FY21 €75bn • Incremental €21 billion market growth

over 3 years
Enterprise FY22 €81bn • Largest growth area driven by investment in
€75bn market Cloud and IoT
FY23 €88bn
9% CAGR • Critical to use core connectivity as an
enabler to build capability in emerging
FY24 €96bn areas of focus

Investor Briefing
March 2021
Source: Vodafone market model 18
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

D ⫶ Our markets have compelling growth drivers.

FY21 €16bn FY21 €40bn

Mobile FY22 €16bn Cloud FY22 €44bn

€16bn market €40bn market
FY23 €17bn FY23 €50bn
1% CAGR 12% CAGR
FY24 €17bn FY24 €56bn

• Some growth with €3

billion incremental
Legacy1 spend by FY24
FY21 €13bn €14bn • Significant shift from FY21 €4bn
Fixed legacy fixed products to
€27bn market FY22 €12bn €15bn
next generation fixed Security FY22 €5bn
connectivity
1% CAGR €4bn market
FY23 €12bn €16bn • Good share gain FY23 €5bn
Legacy -6% CAGR opportunity 12% CAGR
New Gen 6% CAGR FY24 €11bn €17bn • Stable & high margin FY24 €6bn
New gen2 • Critical enabler to
access higher growth
product areas

FY21 €9bn FY21 €10bn

Unified FY22 €10bn IoT FY22 €12bn

€9bn market €10bn market
FY23 €11bn FY23 €13bn
12% CAGR 16% CAGR
FY24 €12bn FY24 €16bn

Investor Briefing Source: Vodafone market model

March 2021
1Legacy: Internet Access (IA) – DSL, IA – Other (dial-up, powerline connection, satellite connection), Private IP, Leased Lines, Trad. Fixed Voice
2New gen: IA – Cable, IA – FttP, IA – Dedicated, IA – Fixed Access Over Mobile, Ethernet, Cloud Connectivity, SD-WAN Services, IP Voice
19
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Conclusions ⫶ We operate in attractive markets.

A We operate in attractive addressable markets. We serve private & public sector customers of all sizes. B

SOHO SME Enterprise

Breadth & scale are key success factors in supporting our customers Seamless Cloud
connectivity migration

Network Product Access to More ‘things’ Advanced data

Scalability
infrastructure development partners
connected security

C Our markets are fragmented, but benefit from scale. Our markets have compelling growth drivers. D
Investor Briefing
March 2021 20
2 ⫶ We have unique scale & capabilities.

Vinod Kumar
CEO
Vodafone Business

Investor
Investor Briefing
March 2021 21
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Key messages ⫶ We have unique scale & capabilities.

A We have an experienced & talented team.

B We are expanding our portfolio of products & services.

C We are a leading strategic partner of choice.

D Rapid innovation & implementation are core competencies.

Investor Briefing
March 2021 22
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

A ⫶ We have an experienced & talented team.

Leveraging scale through shared expertise Local, in-market delivery & customer support

• 3,100 team members in 23 countries

Product • Product & platform engineering, 0.4m
development portfolio management, agile 0.5m 0.7k
1.2m
4.8k
delivery, software engineering, 0.1m 2.3k 0.2m
0.2k
0.3k
testing & evaluation
0.1m 0.2m
0.3k 0.7k

• 2,500 team members across 22 countries 0.7m

0.1m
0.1k
0.7m
1.3k
Commercial • Bid management, commercial pricing, service 1.2k
0.2m 1.2m
& operations management, service operations, sales 0.2m 0.2k 0.4k
0.2k
operations

• Strategy, commercial planning,

Support brand, digital marketing, programme 0.8m
functions and project management, channel 1.2k

development
# # customers
# # team members

Investor Briefing
March 2021 23
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

A ⫶ We have an experienced & talented team.

Matrix organisation to optimise blend of technical & functional expertise with deep local knowledge

Unified Comms
development

Peter Terry-Brown
Product

Cloud & Security

Vatsa Kalyanasundaram

IoT
Erik Brenneis

Carrier Services
Nick Gliddon
Commercial &
operations

Platforms & solutions

Justin Shields Shared, scaled centres
Transformation & Digital of ex cellence
Fanan Henriques

Commercial & operations

Kerry Small

Finance: Sateesh Kamath

functions

Strategy: Mark Allinson

Support

HR: Pinar Yemez Dedicated geographic

Marketing: Iris Meijer customer focus
Legal: Kerry Phillip

Global Germany UK Italy Spain Africa Turkey Other markets

Ben Alex Anne Giorgio Daniel William Meltem Greece, Netherlands,
Elms Saul Sheehan Migliarina Jimenez Mzimba Bakiler Şahin Portugal, Ireland

Investor Briefing
March 2021 24
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ We are expanding our portfolio of products & services.

Mobile Fixed Unified Cloud Security IoT

€5.9bn revenue1 €3.1bn revenue1 €0.6bn revenue1,2 €0.5bn revenue1 €0.8bn revenue1

[x] [x] [x]

Voice Connectivity
[x] [x] [x] [x] [x]
[x]
Communication & [x] Managed [x] Managed
[x] Connectivity collaboration cloud security
[x] [x]
[x] [x] [x] [x] [x]
LAN Automotive
[x] [x] [x]

[x] [x] [x] [x] End-to-end

WAN solutions
[x] [x] [x] [x]
[x] Mobility Contact centre Managed
management solutions infrastructure
[x]
[x] [x] [x] [x] Mobile
SD-WAN
private networks
[x] [x] [x] [x]

Investor Briefing
25
1Vodafone Business service revenue for 12-month period ended 31 December 2020
2Unified Communications revenue included with Mobile & Fixed revenue
March 2021
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ We are expanding our portfolio of products & services.

Mobile Fixed Unified
Enabling uninterrupted business through Integrated solutions to enable
Empowering organisational mobility through
leveraging existing infrastructure & improvements in productivity, collaboration &
security, control, efficiency & speed
migration to SD-WAN customer engagement

5.6m customers 1.7m customers 140k customers

34.4m
2.8m connections 5.7m users
connections

Fixed network points in

>8,000 5G cell sites 4% rev. growth
74 countries

Investor Briefing
March 2021 26
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ We are expanding our portfolio of products & services.

Cloud Security Managed infrastructure
Packaged & tailored cyber security services from Managed hosting & multi-cloud services
Partnerships to provide cloud-based
risk assessment, through to deployment, supporting all customers on their
applications, integration & support
testing & operations digital transformation

5 distributed MEC 100k SaaS licenses 50% improvement in

customers customer experience

1st to market with >50% CaaS margins >700 Enterprise

AWS in Europe customers

>10% rev. growth >20% rev. growth 6% rev. growth

Investor Briefing
March 2021 27
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.
Video case study here:
B ⫶ We are expanding our portfolio of products & services. investors.vodafone.com

IoT connectivity IoT Automotive IoT end-to-end Private networks

Providing secure & reliable connectivity Hardware & end-to-end solutions for car Dedicated & secure mobile private
to integrate IoT device data in our makers, insurance companies, fleet End-to-end provision of hardware,
connectivity & software networks combining connectivity, edge
customers’ systems operators & drivers computing & applications

>1m new 57 countries 100+ tailored 25 customers

connections p.c.m. E2E solutions

120m connected 33m connected 6 centres of 10 countries

devices cars competency

22% YoY growth 49bn km driving 12 COVID-19 5 focus sectors

in connections data analysed support solutions

Investor Briefing
March 2021 28
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

C ⫶ We are a leading strategic partner of choice.

Scale economics underpinned by global wholesale & partner market operation

Global reach

Top 5 global provider

48 partner markets

74 WAN countries

168 4G roaming countries

21 Controlled/JV operating presence 10 Vodafone branded partner market
13,500 people across
34 countries 2 Minority holding operating presence 38 Non-branded partner market

Investor Briefing
March 2021 29
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.
Video case study here:
C ⫶ We are a leading strategic partner of choice. investors.vodafone.com

Partner # markets1 Products Overview of strategic partnership

Our Brand
21 • Unified • Microsoft 365 & Teams
Vodafone recognised in The BrandZ Top 100 (+48 Partner • Cloud & Security • Azure Private Edge with Vodafone 5G
Markets • Mobile Edge • Joint innovation around new growth opportunities
Most Valuable Global Brands 2020 (Kantar)

• Managed security • World-class managed security services in simple,

6 pre-defined packages to SME and Enterprise
services
customers across Europe

Our Assets 8 • Unified

• Market-leading suite of unified communications,
collaboration and contact centre solutions.
5G rolled out in 285 European locations to
date, more than any other network. 3 • Mobile Edge
• Europe’s first edge computing service
(AWS Wavelength)
Recognised as a “Leader” in Network
Services, IoT (Gartner) and SD-WAN (Forrester) • Managed Cloud • Managed services across multi-cloud environments
5
Services • Co-development of new digital solutions

21 • Leveraging our combined capabilities in

Our Scale (+48 Partner
Markets
• Fixed connectivity through both cloud and on-premises
solutions

>6m business customers

5 • Cloud & Security • Workspace
>150m connections • Joint innovation on new growth opportunties

Investor Briefing
March 2021
1FY22 committed roll-out 30
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

C ⫶ We are a leading strategic partner of choice.

Managed Security ⫶ Strategic partnership with

Why Security? Why Accenture? Why Vodafone? Partnership overview

• Increased demand for • Provider of end-to-end • Trusted brand for 500,000 • Phase 1 ⫶ launch in Italy,
integrated security services cybersecurity services SME and Small Corporate Spain, Germany and UK
across Network, IT and OT customers
• Enhanced offering with the • Phase 2 ⫶ co-create
• Strategically important to acquisition of Symantec CSS • Global leadership in fixed security portfolio
maintain competitiveness and mobile networking, IoT,
and market relevance • 20+ years of experience and 5G • Phase 3 ⫶ build
complementary Vodafone
• Supports new revenue • Best in class Professional and security propositions
streams and Vodafone Managed Services
Business positioning

Best-in-class & integrated connectivity, Cloud & Security services

from one trusted provider with unmatched capability & reach

Investor Briefing
March 2021 31
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

D ⫶ Rapid innovation & implementation are core competencies.

We have a holistic approach to enable and drive innovation throughout our organisation
We acquired the start-up IoT.nxt in 2019, We developed a secure identity for IoT assets that
thus strengthening our presence in allows transactions services and applied this to
customer-centric end-to-end IoT renewable energy through out partnership with
solutions Energy Web

We developed a unique smart label solution in

collaboration with Kigen, an Arm group
M&A Co-creation company, and other partners, to revolutionise
We are the first Telco to bring AWS Wavelength to Europe, providing the supply chain industry
multi-access edge computing on Vodafone’s network

Partner Partner
Big Tech Our Innovation Programme
Model

Independent
innovation

We have state-of-the-art facilities for

5G innovation and co-creation; 5G
Mobility Lab at the Aldenhoven
Testing Centre

Investor Briefing
March 2021 32
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum.
D ⫶ Rapid innovation & implementation are core competencies.
Our scale & expertise enables development of innovative end-to-end solutions for specific customer sectors
Remote surgery
We are working in partnership with a leading university and
Overview a a technology platform company to create a real-time
collaboration platform for remote surgery and diagnostics.
• The Bowel Cancer Screening Pathway in Wales is
Customer exploring new digital technologies, to enable early
requirements detection and diagnosis of bowel cancers whilst
significantly reducing NHS costs
• We are providing 5G indoor solutions at 7 locations across
3 different hospitals, including operating theatres
Our approach • 5G is enabling the real-time AR/AI based platform for
multi-disciplinary team assistance during colonoscopies,
automated diagnostics and enhanced medical training
4 ⫶ We are on a clear growth pathway.
Video case study here:
investors.vodafone.com
Industrial automation Drone-enabled logistics
We are partnering with Dedrone and AWS wavelength to
We are co-creating the “Factory of the Future”, in
provide counter drone services at multiple sites in a
partnership with Ford at its Dunton Technical Centre in
scalable cost-effective manner. This is the first of a kind
Essex, UK
deployment in Europe leveraging MEC
• Ford is transforming its production lines and investing in
• The rise of drones requires unparalleled, complete
new electric machines and welding technologies
• It needs reliable high-speed wireless connectivity to
airspace security for controlled and critical locations such
as airports, power plants, military bases, and government
connect these new machines and process vast amounts
buildings
of data (500k pieces per min)
• We are providing integrated 5G MPNs at Ford Dunton and
The Welding Institute in Cambridge • We are using our high-speed 5G network, MEC, and the
• The 5G MPNs deliver flexibility, real-time control, analysis multi-cloud environment to detect, identify and track the
and remote expert support from welding specialists in movement of malicious drones in a defined airspace
Cambridge
Investor Briefing
March 2021 33
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Conclusions ⫶ We have unique scale & capabilities.

A We have an experienced & talented team. We are expanding our portfolio of products & services. B

Shared centres of excellence Dedicated geographic focus

Mobile Fixed Unified Cloud Security IoT

Leading brand
Unique products
Global reach

Remote surgery Industrial automation

C We are a leading strategic partner of choice. Rapid innovation & implementation are core competencies. D
Investor Briefing
March 2021 34
3 ⫶ We have strong operating momentum.

Sateesh Kamath
Finance Director
Vodafone Business

Investor
Investor Briefing
March 2021 35
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Key messages ⫶ We have strong operating momentum.

A Step-change in commercial delivery.

B Rapid response to radical change during pandemic.

C Clear economic model levers for value creation.

D Prioritising investment in high ROCE opportunities.

Investor Briefing
March 2021 36
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

A ⫶ Step-change in commercial delivery

Consistent improvement in Mobile Capturing Cloud & Security market growth

1,900
Annual Mobile net user adds (‘000) Cloud & Security revenue
1,800
Q3: +20%
€550m
1,700

€500m

Q4
1,600

€450m

1,500

€400m

1,400

1,778 €350m

€462m
1,300

1,503
€300m

€436m €389m
Step-change improvement in SR
€250m
1,200

1,100
1,289 €200m

€150m

Service revenue growth

1,000

€100m

Q3 FY19 Q3 FY20 Q3 FY21

3.5%

Ex-roaming & FY19 FY20 FY21

2.5%
visitor revenue
3.2%
2.6%
1.5%

0.3% 0.7% 0.1% 0.7%

0.5%

-0 .5%
-0.2%

-1 .5%
-2.9%

-2 .5%

Challenger in Fixed Strong IoT (Internet of Things) growth

FY19 FY20 Q1 Q2 Q3
FY21 FY21 FY21
Fixed Line revenue growth IoT Revenue
4.5%

4.0%
Q3: +10%
€800m

3.5%

Q4
3.0% €700m

2.5%

4.2%
€600m

2.0%

3.0% €735m
€500m

1.5%

€666m
1.6% €560m
1.0% €400m

0.5%

€300m

0.0%

€200m

FY19 FY20 Q3 FY21

FY19 FY20 FY21

Investor Briefing
March 2021 37
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

A ⫶ Consistent improvement in commercial delivery

IoT ⫶ Our 10 year journey to develop a global best-in-class IoT proposition

Market Leader
Capabilities built Position today
Best IoT economics, rapid A Gartner market leader in managed IoT connectivity1
Self-built secure
deployment and secure by
global platform
design Consistent improvement in customer satisfaction

+6 0

IoT NPS
Global regulatory Global reach where others
+5 0

experience cannot serve

+4 0

+57
+3 0

+49
+35
+2 0

+1 0

+20
Over 500 IoT Rapid in-house development +0

FY18 FY19 FY20 Feb'21

developers and innovation
Strong growth in IoT connections

Solutions across Breadth of expertise enabling 12 5m

IoT connections

all sectors innovation & trust 10 5m

85 m

118m
65 m

103m
85m
45 m
68m
>100 tailored end- Near-instant delivery and lower 25 m

to-end solutions cost to serve FY18 FY19 FY20 Q3 FY21

Investor Briefing
38
1Vodafone named as a “Leader” by Gartner in the 2019 Magic Quadrant for Managed IoT Connectivity Services, Worldwide. An
March 2021 updated report from Gartner has yet to be released.
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.
Video case study here:
B ⫶ Rapid response to radical change during pandemic. investors.vodafone.com

Vodafone Business underpinning the digital economy and digitising the public sector

Provide public Lead on data

1 Maintain quality
networks 2 Support critical
services 3 information 4 Support community
& business 5 insight
• Enabled millions • Connected • Enabled >1k • Supporting • Vodafone
of business >10,000 field retired hospital SMEs with faster analytics
employees to hospital beds staff to give supplier supporting
work from home advice from payments governments
through • Setup dedicated home and aid
connectivity and helplines for • Launched free
digital advisory organisations
software sales. health services, • Gave free and
supporting reduced price service for SMEs • Mitigated
millions of calls SIMs to schools ‘V-Hub’ significant
• Supported SMEs volume of
• Provided • Enabled the UK cybersecurity
100,000 free with temporary
parliament to threats
virtual doctor disconnection
run virtual
appointments support
sessions online

SOHO & SME NPS at a record high in Q3

Investor Briefing
March 2021 39
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ Rapid response to radical change during pandemic.

IoT ⫶ Supporting COVID-19 testing & vaccination
Requirements How we met them
Enabling Vaccine Delivery

Knowledge of the Leveraged our existing knowledge

healthcare sector of the healthcare vertical
Our global IoT platform is used by Vodafone
Iceland and Controlant to enable the safe
tracking and monitoring of COVID-19 vaccines
around the world. Utilised our global reach and
Required global
knowledge of highly regulated
coverage
markets such as Russia & Brazil
COVID-19 testing in Africa

Utilised our leading platform to

Our subsidiary Mezzanine ramped up its Real-time tracking deliver real-time tracking and our
existing eLABS solution which allows & Security in-house experts to ensure high
couriers to track location and temperature
during transit and laboratories to transmit security requirements are met
data electronically.

Between July and December 2020, we Fast delivery utilising off-the-shelf

Rapid delivery
assisted with 300,000 COVID-19 tests components
through eLABS.

Investor Briefing
March 2021 40
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

C ⫶ Clear economic model levers for value creation.

Service Revenue Contribution margin1 Capital intensity
Jan - Dec YoY% Jan - Dec Capital model Indicative ROCE

€5.9bn -0.4%2 70-75% High capital need Low &

Mobile (direct invest model) improving

High capital need Low &

Fixed €3.1bn 3.9% 40-50% (direct invest &
partnership model) improving

Unified €0.6bn 3.8% 30-40% Low capital need High

Included in Mobile & Fixed (partnership model)

Low capital need

Cloud & Security €0.5bn 10.0% 35-45% (partnership model) High

Medium capital need

IoT €0.8bn 8.7% 75-85% (direct invest model)
High

Total Business €10.3bn 1.9%2 60-65%

Investor Briefing
41
1Contribution margin is defined in Appendix 1
2Mobile excl. C-19 roaming & visitor impact
March 2021
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.
Video case study here:
C ⫶ Clear economic model levers for value creation. investors.vodafone.com

Saving costs and improving service across the customer lifecycle

Sales Commercial Operations

• The role of a salesperson is changing
from in-the-field sales to digital account
management
• Services, especially in SOHO & SME, are
managed via customer self-serve
channels such as the Vodafone Business
Marketplace
• Leveraging our scale to generate data
which drives speed, win-rate and cost
reduction
• Average pricing timeline has reduced
through AI & sales self-serve, with
timelines for global mobile tariffs in
MNC reducing from weeks to minutes
• >1,000 employees in our shared service
centre (VOIS) allows us to offer round
the clock support at a better service
level and reduced price
• Meanwhile, support through digital
channels for MNCs has increased to 42%
from 0% over the last four years

Driving the change towards digital channels Empowering Sales to price own contracts Reducing commercial cost to serve

Cumulative Marketplace revenues Cumulative TCV of Sales self-serve contracts in VGE

16 .0%

Multi-National Corporate (MNC) commercial opex to sales ratio

€250m
€0m

15 .0%

€0m

€200m

14 .0%

€0m

€150m
13 .0%

€108m 14.8%
€0m

€100m

€197m €0m
12 .0%

13.7% 13.7%
€55m 12.6%
€96m €12m €44m
11 .0%
€50m

€31m
€0m

€0m
€28m €0m
10 .0%

FY19 FY20 FY21 YTD Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 FY18 FY19 FY20 Q3 YTD FY21

Investor Briefing
March 2021 42
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

D ⫶ Prioritising investment in high ROCE opportunities.

Capital allocation priorities Invest in high ROCE opportunities
Indicative capital allocation excluding shared network infrastructure

1 Strengthen competitive advantage

• Fixed & mobile connectivity remain

core to underlying strength IoT
• Enables ability to expand in growth 25-35%
products & services
Digital
20-30%
2 Invest in high ROCE opportunities

• Increasing proportion of capital

allocated to Unified, Cloud, Security,
IoT Cloud
& Security
• Improving ROCE mix over time 10-20%
Fixed Unified

3 Enhance digital capabilities

Mobile
5-15% 5-15%

Other
• Key driver for profitability growth <10% <10%
• Improving customer experience and
NPS Mobile & Fixed shared network infrastructure

Investor Briefing
March 2021 43
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

D ⫶ Prioritising investment in high ROCE opportunities.

Cloud & Security ⫶ Strong marginal ROCE Cloud & Security for SME

• Integrated provider for a range of software solutions from

productivity tools (M365 & Google Workspace) to e-commerce
platforms to managed cybersecurity services.
Double-digit revenue growth
• Growing rapidly +40% YoY as we sell into our existing mobile base
& fixed base.
• Fully-variable cost model.
35-45% contribution margin
Customer Relationship Model

Previous
model
Previous
Strong incremental EBITDA model
Infrastructure Product Product
product sale activation decommission

Highly attractive in-year payback

New
model
Infrastructure Software Service Advisory
product sale solution sale wrap services

Investor Briefing
March 2021 44
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Conclusions ⫶ We have strong operating momentum.

A Step-change in commercial delivery. Rapid response to radical change during pandemic. B

SOHO & SME NPS at a record high in Q3

Capital allocation priorities

1 Strengthen competitive advantage

2 Invest in high ROCE opportunities

3 Enhance digital capabilities

C Clear economic model levers for value creation. Prioritising investment in high ROCE opportunities. D
Investor Briefing
March 2021 45
4 ⫶ We are on a clear growth pathway.

Vinod Kumar
CEO
Vodafone Business

Investor
Investor Briefing
March 2021 46
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Key messages ⫶ We are on a clear growth pathway.

A Our purpose underpins our growth strategy.

B Our growth strategy has 3 core elements.

C We are investing to expand our solution portfolio.

D We have clear targets to assess our performance.

Investor Briefing
March 2021 47
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

A ⫶ Our Purpose underpins our growth strategy.

Digital Inclusion
Our purpose Planet
Society for All
We connect for a
better future

Reducing environment
Enablement
Gigabit network Digitising Digitising critical Digitising impact
IoT
connectivity SMEs sectors Government 1.5°c science-based target
Emerging technologies
100% renewable electricity
priorities
Influence & access EU Recovery Fund

Customer
impact
Technology
enabling scope
1 & 2 emission
+ Reducing our
customers’ scope
Supports
winning &
retaining
reductions 3 emissions
customers

Investor Briefing
March 2021 48
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ Our growth strategy has 3 core elements.

BUSINESS⫶2025
SME⫶CHAMPION GIGABIT⫶ENTERPRISE
Trusted partner in digital Provider of choice for
journey, leveraging next-generation
partnerships to deploy integrated connectivity
full product breadth

IoT⫶END-TO-END
Easy to adopt end-
to-end IoT for every
business

Investor Briefing
March 2021 49
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.
Video case study here:
B ⫶ Our growth strategy has 3 core elements. investors.vodafone.com

SME⫶CHAMPION Trusted partner in digital journey, leveraging partnerships to deploy full product breadth

• Effective bundling of connectivity & ICT products

1 ‘Beyond connectivity’ digital propositions
• Deliver unique total propositions for SME specific needs

• Evolving relationship from connectivity provider to trusted partner

2 Digital advisory service
• Support SMEs in defining & implementing bundled proposition

• Segmented customer targeting, to ensure message & relevance

3 Community of European and African SMEs
• Co-ordinated matrix structure enabling dedicated local focus

• Partnerships with globally best-in-class provides of Cloud & Security

4 Partnership ecosystem
• Simple integration to deploy partnerships at scale across markets

• Transition to Digital First, end-to-end customer journeys

5 Digital First customer experience
• Underpinned by real-time, remote support

Investor Briefing
March 2021 50
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ Our growth strategy has 3 core elements.

GIGABIT⫶ENTERPRISE Provider of choice for next-generation integrated connectivity

• Core connectivity is the central pillar supporting future network design

1 Strong underlying connectivity portfolio
• Critical enabler of cloud-based ICT architecture

• Future of work requires faster remote infrastructure

2 Leadership in Edge infrastructure
• Largest European footprint ensures ‘Edge’ leadership

• Cross-product orchestration capability

3 Integrated infrastructure & customer experience
• Seamless integration between connectivity & cloud architecture

• Partnering with Enterprise to achieve complete, seamless integration

4 Integration solution portfolio
• Focus on connectivity, edge computing and hyper-scaler clouds

Investor Briefing
March 2021 51
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

B ⫶ Our growth strategy has 3 core elements.

IoT⫶END-TO-END Easy to adopt end-to-end IoT for every business

• Offer a broad portfolio of modular, plug and play solutions

1 Plug & play
• Utilise Vodafone assets & ‘Best-on’ Vodafone partnerships

• Central direct online marketplace to consolidate all solutions

2 Build a world class IoT Marketplace
• Deploy at scale into all market and partner market channels

• Create a Centres of Competency to develop standardised solutions

3 Establish ‘Solution Industrialisation Factory’
• Deploy propositions across Vodafone markets and verticals

• Streamlined process to support customer onboarding

4 Integrated advisory & support
• Digital first approach to ongoing customer support

• Integrated customer dashboard across solutions

5 Enhanced data analytics & reporting
• Covering performance, analytics, and insights

Investor Briefing
March 2021 52
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

C ⫶ We are investing to expand our solution portfolio.

Core strengths in all markets Current expansion Emerging focus

Mobile Device life-cycle

Mobile Mobile private networks
connectivity management
Converged
connectivity
Fixed Cloud connectivity
Fixed SD-WAN
connectivity Intelligent connectivity

Fixed-mobile Digital collaboration tools Application integration

Unified
voice Video AI-enabled support

Managed hosting Managed SaaS

Cloud SaaS Edge computing
Multi-cloud Low latency applications

Network security
Managed security services
Security Security SaaS
Virtual SOC/CISO
Workforce protection

Industry vertical solutions

IoT Connectivity Mobile private networks
End-to-end solutions

Investor Briefing
March 2021 53
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

D ⫶ We have clear targets to assess our performance.

BUSINESS⫶2025
What we’ll look like Our ambition

Seamless digital experience powered by Above-market revenue growth in

data & intelligence Mobile & Fixed

Self-service AI/ML analytics Double-digit revenue growth in Unified,

Cloud, Security & IoT

Reliable, high-speed & efficient Optimised balance of EBITDA growth

convergent networks & EBITDA margin

Always-on & zero-touch operational Investment in high marginal ROCE

excellence opportunities

Highly modular architecture with

standard APIs Consistent ROCE growth

Investor Briefing
March 2021 54
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway.

Conclusions ⫶ We have a clear plan for growth.

A Our purpose underpins our growth strategy. Our growth strategy has 3 core elements. B

Digital Society

Our purpose
We connect for Inclusion for All
a better future

Planet

Core strengths Current expansion Emerging focus

Above-market revenue growth in Mobile & Fixed

Double-digit revenue growth in Unified, Cloud, Security & IoT

Optimised balance of EBITDA growth & EBITDA margin

Building a futureproof portfolio of products & services
Investment in high marginal ROCE opportunities

Consistent ROCE growth

C We are investing to expand our solution portfolio. We have clear targets to assess our performance. D
Investor Briefing
March 2021 55
Conclusions

Vinod Kumar
CEO
Vodafone Business

Investor
Investor Briefing
March 2021 56
 ⫶ Connecting, people, places & things for a better future
1 We operative in attractive markets. We have unique scale & capabilities. 2
Unique scale

Talented people

Strong partners

Leading products

3 We have strong operating momentum. We are on a clear growth pathway. 4

Investor Briefing
March 2021 57
I Definitions p59
II Speaker biographies p60
III Addressable market data p61
IV Financial summary p62 Appendices
V Important notice p63

H1 FY21
Investor
Investor Briefing
MarchResults
Interim 2021 58 58
Appendix I ⫶ Definitions
Term Definition Term Definition

Addressable Total market revenue available in markets that can be accessed by NPS Net Promoter Score, a measure of customer sentiment
market Vodafone’s customer, geographic and product offering
Roaming Allows customers to make calls, send and receive texts and data on other
AI/ML Artificial intelligence / machine learning operators’ mobile networks, usually while travelling internationally

AWS Amazon Web Services ROCE Return on capital employed

Churn Total gross customer disconnections in the period divided by the
average total customers in the period
Contribution Calculated as service revenues minus the direct costs to serve plus
margin the net of equipment revenues and costs, all divided by service
revenues. The net of equipment revenues and costs is negative and
is viewed as a cost of customer acquisition and retention.
Connections The number of devices or products that we connect
Digital Digital on page 43 refers to investments in digital transformation,
predominantly in IT, which will bring either future cost savings or
efficiency improvements
EBITDA Earnings before interest, tax, depreciation & amortisation
Gbps / Mbps Gigabits (billions) / megabits (millions) of bits per second
IoT Network of physical objects embedded with electronics, software,
sensors & network connectivity, including built-in mobile SIM cards,
that enables collection of data & exchange communications with
one another or a database
SaaS Software as a Service
SD-WAN Software defined wide area network
Service Service revenue comprises all revenue related to the provision of ongoing
revenue services including, but not limited to, monthly access charges, airtime
usage, roaming, incoming and outgoing network usage by non-Vodafone
customers and interconnect charges for incoming calls.
All revenue growth rates, apart from the Vodafone Business total revenue
chart on page 37, are defined as service revenue on an organic underlying
basis, which adjusts for the disposal of Vodacom Business Africa assets.
The Vodafone Business total revenue chart is on an organic basis
(consistent with external quarterly disclosure), which is impacted by the
disposal of our Vodacom Business Africa assets.
FY19 growth rates are on an IAS18 basis; FY20 and FY21 growth rates are
on IFRS15 basis. Absolute revenues are shown on a current portfolio
perimeter, FX and accounting basis for all periods.
SOHO Small Office / Home Office
SI Systems integrator

ISV Independent software vendor Unified Unified communications & collaboration software

Investor Briefing
March 2021 59
2 ⫶ We are the
Appendix II ⫶ Speaker
leading connectivity
biographies provider in Europe & Africa.
Vinod Kumar Sateesh Kamath
CEO, Vodafone Business Finance Director, Vodafone Business
Vodafone Group Executive Committee member
since September 2019

Vinod Kumar joined Vodafone and the Executive Committee as CEO
Vodafone Business in September 2019. He is responsible for
Vodafone’s enterprise business globally.
Prior to joining Vodafone, Vinod was the Managing Director and CEO
of Tata Communications Ltd from 2011, after joining the company as
Chief Operating Officer in 2004. He was a member of the company’s
Board from 2007. Tata Communications Ltd is listed on the Bombay
Stock Exchange and the National Stock Exchange of India. He has a
long career in the telecommunications industry, including roles at Asia
Netcom, WorldCom, Global One and Sprint International.
Vinod has a Bachelor of Science from the Birla Institute of Technology
& Sciences.
Sateesh Kamath joined Vodafone Business on 1 July 2020 and is
responsible for Vodafone’s business-to-business financials globally.
Most recently, Sateesh was the Chief Financial Officer of Safaricom
PLC, Vodafone’s joint venture operation in Kenya. At Safaricom,
Sateesh was instrumental in increasing the value of the company
through strong digitisation initiatives and efficient asset utilisation.
Sateesh first joined Vodafone India in January 2004 and has had a
variety of senior finance roles in Vodafone Group including Finance
Director at Vodacom Tanzania and Regional Executive for the AMAP
Region.
Before joining Vodafone, Sateesh worked for Amara Raja Batteries,
Coca Cola and Coats in various Finance roles. He holds a bachelor’s
degree in commerce and a professional degree from ICWA of India.

Investor Briefing
March 2021 60
2 ⫶ We are the
Appendix III ⫶leading
Addressable
connectivity
market provider
data in Europe & Africa.
FY21 FY22 FY23 FY24 FY21-24 CAGR
By customer segment
SOHO €13bn €13bn €14bn €14bn 3%
SME €18bn €20bn €21bn €23bn 8%
Enterprise €75bn €81bn €88bn €96bn 9%
Total €106bn €114bn €123bn €134bn 8%
By product segment
Mobile €16bn €16bn €17bn €17bn 1%
Fixed €27bn €27bn €28bn €28bn 1%
of which Legacy €13bn €12bn €12bn €11bn -6%

of which New Gen €14bn €15bn €16bn €17bn 6%

Unified €9bn €10bn €11bn €12bn 12%

Cloud €40bn €44bn €50bn €56bn 12%
Security €4bn €5bn €5bn €6bn 12%
IoT €10bn €12bn €13bn €16bn 16%
Total €106bn €114bn €123bn €134bn 8%

Investor Briefing
March 2021
Source: Vodafone market model 61
2 ⫶ We are the
Appendix IV ⫶leading
Financial
connectivity
summary provider in Europe & Africa.
Total Vodafone Business service revenue growth Annual mobile net user additions
FY19 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY19 Q3 FY20 Q3 FY21
(IAS18) (IFRS15) (IFRS15) (IFRS15) (IFRS15)
Reported (‘000) 1,289 1,503 1,778
Organic 0.3% 0.7% -2.9% -0.2% 0.7%
IoT connections
Ex-roaming
N/A N/A 0.1% 2.6% 3.2% FY18 FY19 FY20 Q3 FY21
& visitor
Connections 68m 85m 103m 118

Fixed-line service revenue growth IoT customer satisfaction

FY19 FY20 Q3 FY21 FY18 FY19 FY20 Feb’21

(IAS18) (IFRS15) (IFRS15)
NPS +20 +35 +49 +57
Organic service
1.6% 3.0% 4.2% Financial summary
revenue1
CY20 CY20
YoY%
Service revenue Contribution margin
Cloud & Security service revenue
Mobile €5.9bn -0.4% 70-75%
FY19 FY20 Q3 YTD FY21
(IFRS15) (IFRS15) (IFRS15) Fixed €3.1bn 3.9% 40-50%

Service revenue2 €436m €462m €389m Unified

(included in Mobile €0.6bn 3.8% 30-40%
& Fixed)

Cloud & Security €0.5bn 10.0% 35-45%

IoT service revenue
IoT €0.8bn 8.7% 75-85%
FY19 FY20 Q3 YTD FY21
(IFRS15) (IFRS15) (IFRS15) Total €10.3bn 1.9% 60-65%
Organic, excl. C-19 roaming and visitor
Service revenue2 €666m €735m €560m Definition impact and incl. adjustment for VBA disposal
As defined in appendix 1

Investor Briefing
62
1Includes adjustment for disposal
2On a current portfolio at constant FX basis
March 2021
Appendix V ⫶ Important notice
By accessing these slides, you agree to be bound by the following conditions. You may not
disseminate these slides or any related recording, in whole or in part, without the prior
consent of Vodafone. Information in this presentation relating to the price at which relevant
investments have been bought or sold in the past or the yield on such investments cannot be
relied upon as a guide to the future performance of such investments.
This presentation does not constitute an offering of securities or otherwise constitute an
invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or
dispose of securities in any company within the Vodafone Group.
This presentation also contains non-GAAP financial information which Vodafone’s
management believes is valuable in understanding the performance of the Vodafone Group.
However, non-GAAP information is not uniformly defined by all companies and therefore it
may not be comparable with similarly titled measures disclosed by other companies,
including those in the Vodafone Group’s industry. Although these measures are important in
the assessment and management of the Vodafone Group’s business, they should not be
viewed in isolation or as replacements for, but rather as complementary to, the comparable
GAAP measures.
References to Vodafone are to Vodafone Group Plc and references to Vodafone Group are to
Vodafone Group Plc and its subsidiaries unless otherwise stated. Vodafone, the Vodafone
Speech Mark Devices, Vodacom and The future is exciting. Ready? are trade marks owned by
Vodafone. Vantage Towers is a trademark owned by Vantage Towers. Other product and
company names mentioned herein may be the trade marks of their respective owners.
This presentation, along with any oral statements made in connection therewith, contains
“forward- looking statements” including within the meaning of the US Private Securities
Litigation Reform Act of 1995 with respect to the Vodafone Group’s financial condition, results
of operations and businesses, the Vodafone Group’s FY21 EBITDA outlook and FCF
(pre-spectrum) guidance and certain of the Vodafone Group’s plans and objectives.
Investor Briefing
March 2021
Forward-looking statements are sometimes, but not always, identified by their use of a date in
the future or such words as “plans”, “targets” “gain”, “grow”, or “accelerate” (including in their
negative form). By their nature, forward-looking statements are inherently predictive,
speculative and involve risk and uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future. There are a number of factors that
could cause actual results and developments to differ materially from those expressed or
implied by these forward-looking statements.
A review of the reasons why actual results and developments may differ materially from the
expectations disclosed or implied within forward-looking statements can be found under
“Forward-looking statements” and “Risk management” in the Vodafone Group Plc Annual
Report for the year ended 31 March 2020 and under “Risk factors” and “Other information
(including forward looking statements)” in the Vodafone Group Plc Half-Year Financial Report
for the six months ended 30 September 2020. The Annual Report can be found at
investors.vodafone.com.
Any securities issued in connection with an IPO of Vantage Towers will not be registered under
the US Securities Act of 1933 (the “Securities Act”), and may not be offered or sold in the
United States absent registration under the Securities Act or pursuant to an exemption from
registration.
All subsequent written or oral forward-looking statements attributable to Vodafone, to any
member of the Vodafone Group or to any persons acting on their behalf are expressly
qualified in their entirety by the factors referred to above. No assurances can be given that the
forward-looking statements in or made in connection with this presentation will be realised.
Any forward-looking statements are made as of the date of this presentation. Subject to
compliance with applicable law and regulations, Vodafone does not intend to update these
forward-looking statements and does not undertake any obligation to do so.
63
 Group
Investor
investors.vodafone.com Upcoming events
Relations
ir@vodafone.co.uk

1 Kingdom Street, London, W2 6BY

18 FY21 results
May
Matthew Johnson
Director matthew.johnson@vodafone.com
Group IR

Daniel Morris
Deputy Director
Group IR
daniel.morris@vodafone.com 17 Technology investor briefing
June
Roy Teal
Deputy Director roy.teal@vodafone.com
Group IR

Victoria Garnham 23 Q1 FY22 trading update

Access Manager victoria.garnham@vodafone.com
Group IR July