| --- | --- | --- | --- | --- | --- | --- | |--------------|-------|-------|-------|-------|------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Vodafone Group Results: | | | | | | | | for the quarter ended 30 June 2019 | | | | | | | | | | | 26 July 2019 | | | | | | | | | | | | | | | Disclaimer By watching this webcast, you agree to be bound by the following conditions. You may not disseminate the slides or any recording of ...

Financial Data and Key Metrics Changes - The organic service revenue growth improved by 50 basis points sequentially to negative 0.2% in Q1 [3] - The company aims for a €400 million reduction in European OpEx during the year [4] - The acquisition of Liberty's assets is expected to secure €7.5 billion of synergies [6] Business Line Data and Key Metrics Changes - In Germany, retail business grew by 1.8%, while overall service revenue grew by 0.4% in Q1 [32] - Italy's service revenue decline improved to -3.8% in Q1, with mobile service revenues improving to -7.4% from -11.1% in Q4 [36] - The UK saw a 1.9% growth in consumer service revenues, supported by a higher contract customer base [40] Market Data and Key Metrics Changes - South Africa's service revenue growth slowed to 1.1%, with a decline of 1.2% in Q1 [48] - Emerging markets like Egypt and Turkey are now growing faster than inflation [71] - The overall service revenue growth in the Rest of the World was offset by a slowdown in South Africa [31] Company Strategy and Development Direction - The company is focused on creating Europe’s largest tower company to unlock significant value for shareholders [53] - The strategy includes simplifying pricing plans and enhancing customer engagement to reduce churn [52] - Network sharing agreements are being pursued to improve returns on infrastructure assets [4][22] Management's Comments on Operating Environment and Future Outlook - Management expects a gradual recovery in service revenue growth, underpinned by strategic initiatives [52] - The competitive intensity in Italy is moderating, which is expected to support revenue growth [70] - The company anticipates improvements in Spain's revenue trends as commercial performance recovers [45] Other Important Information - The company has secured regulatory approvals for the acquisition of Liberty's assets with minimal changes to proposed remedies [6] - The company is in the final stages of concluding agreements for network sharing in Italy and the UK [5] - The company plans to separate its tower assets into legal entities by May 2020 to facilitate monetization [26] Q&A Session Summary Question: Further initiatives to unlock value and common grids on legacy technologies - Management is currently focused on towers and is not pursuing fixed-line monetization opportunities at this time [58] - There are discussions about the possibility of one operator providing services to all in the market for 2G and 3G [59] Question: Clarification on unsolicited offers for tower assets - There is significant demand for tower assets, with offers coming from both tower companies and infrastructure funds [67] - The timeline for realizing monetization is 18 months to ensure industrial synergies are achieved first [69] Question: Revenue growth expectations - Management expects gradual improvements in service revenue growth from various markets, including Italy and emerging markets [71] Question: Interest in offering tower deals to competitors - The company is open to discussions about tower sharing but will not undermine its strategic position in the market [106] Question: Asset perimeter for tower monetization - The EBITDA figure of €900 million is based on 100% of the tower assets and does not include other infrastructure [112]