Slide 1: H1 FY24 Results
H1 FY24 Results November 2023 1 H1 FY24 Results ⫶ November 2023
Slide 2: H1 FY24 Results agenda
H1 FY24 Results Highlights p3 Financial performance p4 Strategic progress p13 Appendices p22 2 H1 FY24 Results ⫶ November 2023
Slide 3: Highlights
Highlights Group Q2 service revenue +4.7% Improved service revenue trends Europe Q2 service revenue +1.5% Germany Q2 service revenue +1.1% Customers ‘Big 4’ NPS improvement1, 2 +20% Good initial strategic progress with Simplicity H1 FY24 EU opex savings2 €0.1bn Customers, Simplicity, Growth Growth Q
Slide 4: Financial performance
Financial performance 4 H1 FY24 Results ⫶ November 2023
Slide 5: Financial Highlights: Improved service revenue trends
Financial Highlights ⫶ Improved service revenue trends Service revenue growth Adjusted EBITDAaL +0.3%1 Group Group excl. Turkey €7.2bn (0.4) 4.7% (0.4) €6.4bn €6.4bn 3.7% • Broad based improvement • On a like-for-like basis 2.5% 2.5% 2.8% across most markets in H1 30.2% 29.4% +0.3% growth, margin -0
Slide 6: Germany: Early progress
Germany ⫶ Early progress Q2 service H1 Adj. Key drivers revenue EBITDAaL • Service revenue improvement driven by: - broadband price increases - mobile ARPU growth, with greater focus on higher value Germany - one-off support in Q2 (mainly service providers) 40% of Group 1.1% -5.6% • Commercial perfo
Slide 7: Europe: Return to growth supported by pricing actions
Europe ⫶ Return to growth supported by pricing actions Q2 service H1 Adj. Key drivers Commercials revenue EBITDAaL Business service revenue growth (%) • Repricing of customer base largely complete; 9.4% 8.3% 7.5% Italy temporary increase in churn during Q2 5.2% 10% of Group -1.0% -15.0% • Strong Bus
Slide 8: Africa & Turkey: Good service revenue momentum
Africa & Turkey ⫶ Good service revenue momentum Q2 service H1 Adj. Key drivers Commercials revenue EBITDAaL Consumer service revenue growth (%) • Strong performance in Consumer mobile & fixed 5.7% 5.0% 5.3% 5.8% South Africa 3.6% 12% of Group 4.1% -0.1% • Good demand for financial services (H1 SR: +
Slide 9: Vodafone Business: Growth acceleration in H1
Vodafone Business ⫶ Growth acceleration in H1 Financial Strong growth in Markets performance Digital Services progress Business service revenue growth (%) Digital services1 revenue growth (%) Business service revenue growth, Q2 FY24 (%) 7.5% 4.5% 4.3% 18.2% 16.9% 5.2% 4.7% 3.5% 14.6% 13.6% 12.9% 2.9
Slide 10: Adjusted EBITDAaL & FCF: Reflecting energy headwinds & phasing
Adjusted EBITDAaL & FCF ⫶ Reflecting energy headwinds & phasing Adjusted EBITDAaL Free cash flow 0.5 0.1 Adjusted EBITDAaL €6.4bn €7.2bn (0.8) (0.4) (0.2) Interest €6.4bn €6.4bn (€1.0bn) & tax Working capital (€3.4bn) & other +0.3% Organic Dividends YoY growth (€0.1bn) (assoc. & JV) Capital addition
Slide 11: Capital allocation: Maintaining a robust balance sheet
Capital allocation ⫶ Maintaining a robust balance sheet Investing in infrastructure & growth Leverage €3.5bn €3.4bn €3.4bn New products & €0.4bn €0.4bn 1.2 digital services €0.4bn 0.5 1.5 €0.8bn €0.7bn (0.4) €36.2bn €0.7bn €33.4bn Transformation €2.3bn €2.4bn €2.2bn & CPE FY23 H1 FY24 2.5x 1 2.7x 1
Slide 12: On track to meet FY24 guidance
On track to meet FY24 guidance FY24 Adjusted EBITDAaL1 FY24 Adjusted FCF1 (€billion) (€billion) €14.7bn (1.0) broadly flat €4.8bn (0.5) (0.4) (0.1) c.€3.3 €4.2bn billion €13.3bn FY23 Vantage, FX FY23 Germany MDU Interest & FY24 FY23 Vantage, FX FY23 Extraordinary Europe Growth Underlying FY24 report
Slide 13: Strategic progress
Strategic progress 13 H1 FY24 Results ⫶ November 2023
Slide 14: Strategy: Recap of our new roadmap for Vodafone
Strategy ⫶ Recap of our new roadmap for Vodafone Outlined in FY23 results in May 2023 ⫶ Results, reports & presentations | Vodafone IR Where we’ve been What we’re changing Priorities Consumer dominated Balanced focus on organisation Business + Consumer CUSTOMERS Inconsistent consumer Consumer back-t
Slide 15: Strategic progress: Early execution results
Strategic progress ⫶ Early execution results CUSTOMERS1 SIMPLICITY1 GROWTH Service Consumer Europe €0.3bn revenue +4.2% opex FY23-H1 FY24 NPS savings growth (H1 FY23: +2.5%) 30% of targeted savings by FY26 (YoY) (YoY) c.2.7k Adjusted Detractors Productivity EBITDAaL +0.3% (YoY) role reductions growt
Slide 16: CUSTOMERS: Transformation underway
CUSTOMERS ⫶ Transformation underway Improving overall customer experience... … driving improving Consumer NPS Group-wide focus Vodafone Consumer Gap reduction to NPS (YoY) NPS leader (YoY) • Monthly feedback from 2m customers through our NPS platform • Monthly/weekly Customer Experience (CX) boards
Slide 17: CUSTOMERS: Re-engineering Germany commercial position
CUSTOMERS ⫶ Re-engineering Germany commercial position Fixed Mobile TV Improving network quality Launching new propositions Managing transition impact • Leading network experience • Repositioned mobile tariffs and handset • Regulation changing Jul’24: (per 4 independent tests) portfolio in Apr’23 -
Slide 18: SIMPLICITY: Accelerated resource re-allocation
SIMPLICITY ⫶ Accelerated resource re-allocation €1bn efficiency New simplification New customer Energy & programme initiatives investment extra inflation • €0.1bn savings in H1 FY24, • 11k role reductions in • Customer care spend in H1 • Energy costs2 with cumulative savings of ‘Group’ & markets in
Slide 19: SIMPLICITY: Ready to commercialise shared operations
SIMPLICITY ⫶ Ready to commercialise shared operations Indicative future structure Vodafone Intelligent Solutions (_VOIS) Lean corporate services Finance | HR | Legal | External Affairs | Brand • Commercial operations model design complete Design • Arm’s length model based on Price x Quantity x Quali
Slide 20: GROWTH: Right-sizing the portfolio for growth
GROWTH ⫶ Right-sizing the portfolio for growth Increasing exposure to UK through sustainable local scale Exiting Spanish market with structurally low ROCE €5.0bn EV ⫶ 5.3x Adjusted EBITDAaL / 12.7x OpFCF Vodafone UK + Three UK Initial cash proceeds ⫶ €4.1bn Customers Competition Country Additional c
Slide 21: Highlights
Highlights Group Q2 service revenue +4.7% Improved service revenue trends Europe Q2 service revenue +1.5% Germany Q2 service revenue +1.1% Customers ‘Big 4’ NPS improvement1, 2 +20% Good initial strategic progress with Simplicity H1 FY24 EU opex savings2 €0.1bn Customers, Simplicity, Growth Growth Q
Slide 22: Appendices
Appendices I More information p23 II Vodacom summary p24 III ESG reporting & performance p25 IV KPI definitions p26 V Statutory results summary p27 VI Net debt, liquidity & total funding obligations p28 VII Importance notice p29 Provide investor feedback here ⫶ investors.vodafone.com/feedback 22 H1
Slide 23: More information
Appendix I More information Vodafone Business ⫶ Virtual investor briefing Vodafone Technology ⫶ Virtual investor briefing Connecting people, places & things for a better future A globally scaled operator • We operate in attractive markets • Our customer demand continues to accelerate • We have uniqu
Slide 24: Vodacom: Leading African operations have further growth potential
Appendix II Vodacom ⫶ Leading African operations have further growth potential Africa’s leading connectivity provider1 Operating in attractive markets1 Leading connectivity Opportunities in connectivity >40% of Africa GDP • 200m mobile customers • Data and smartphone penetration • #1 by revenue mark
Slide 25: ESG reporting & performance
Appendix III ESG reporting & performance Extensive suite of ESG disclosures Strong ESG performance Annual Report ⫶ vodafone.com/ar2023 ESG Addendum ⫶ investors.vodafone.com/esgaddendum ESG Ratings ⫶ • Integrated reporting covering • >1,200 datapoints, covering >300 investors.vodafone.com/esg-ratings
Slide 26: KPI definitions
Appendix IV KPI definitions KPI Definition KPI Definition Consumer net promotor score (NPS) measures the likelihood that Vodafone and non- We regularly measure the reliability of our mobile networks in our controlled European Vodafone customers will recommend Vodafone to family, friends and colleagu
Slide 27: Statutory results summary
Appendix V Statutory results summary Consolidated income statement Six months ended 30 September Re-presented1 2023 2022 Revenue 21,937 22,930 Cost of sales (15,277) (15,580) Gross profit 6,660 7,350 Selling and distribution expenses (1,557) (1,711) Administrative expenses (3,009) (2,819) Net credit
Slide 28: Net debt, liquidity & total funding obligations
Appendix VI Net debt, liquidity & total funding obligations Net debt progression (€billion) Total funding obligations H1 FY24 FY23 0.5 1.2 1.5 €m €m (0.4) €36.2bn Bonds (43,316) (44,116) €33.4bn Bank loans (968) (795) Other borrowings including spectrum (1,707) (1,744) FY23 H1 FY24 Gross debt (45,99
Slide 29: Important notice
Appendix VII Important notice You have been provided access to this presentation on the basis that you are an investment professional for the purposes of Article References to Vodafone are to Vodafone Group Plc and references to Vodafone Group are to Vodafone Group Plc and its 19 or a member of the
Slide 30: Investor Relations contacts and upcoming events
Vodafone Group investors.vodafone.com Upcoming events Investor Relations ir@vodafone.co.uk 1 Kingdom Street, London, W2 6BY Feb’ FY24 Q3 Trading Update Matt Johnson 2024 Director matthew.johnson@vodafone.com Group IR Daniel Morris Deputy Director daniel.morris@vodafone.com May FY24 Results Group IR