Financial Data and Key Metrics Changes - Group service revenue grew by 5.4% in Q3 2026, supported by growth in Europe and Africa, particularly in Germany, Africa, and Turkey [4] - Group EBITDA increased by 2.3% in Q3 and 5.3% year-to-date, aligning with expectations to meet the upper end of FY 2026 guidance [5] Business Line Data and Key Metrics Changes - In Germany, mobile customer numbers increased, with new customer ARPUs up 21% year-on-year, stabilizing consumer broadband revenues [6] - Fixed broadband churn in Germany is now below the majority of European markets, indicating improved customer retention [24] Market Data and Key Metrics Changes - The U.K. market is undergoing network upgrades ahead of schedule, enhancing mobile coverage and data speeds [7] - In Africa, the acquisition of a controlling stake in Safaricom is expected to strengthen Vodacom's position, capitalizing on structural growth opportunities [9] Company Strategy and Development Direction - Vodafone is focused on enhancing customer experience and value strategy, particularly in Germany, while also investing GBP 11 billion over ten years to build a leading 5G network in the U.K. [8] - The company aims to leverage its scale and digital platforms in Africa, with a focus on B2B and digital services growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance trajectory, indicating that the company is on track to meet FY 2026 guidance [10] - There is a recognition of ongoing competitive pressures, particularly in the U.K. and Germany, but management remains confident in the strategic direction and growth potential [5][16] Other Important Information - The company has completed the acquisition of Skaylink to support growth in digital services [10] - Management highlighted the importance of focusing on value over volume in the competitive landscape, particularly in the broadband market [78] Q&A Session Summary Question: Insights on Germany's EBITDA trajectory - Management indicated that EBITDA in Germany is expected to improve in the second half of the year, although it may not return to positive growth this year [14][15] Question: Clarification on broadband strategy and pricing - Management confirmed that the focus is on value, with fixed broadband churn improving and ARPU levels at their highest in three years [24][27] Question: Group-wide outlook for 2027 and beyond - Management remains confident in multi-year growth trajectory, expecting continued good growth in EBITDA and adjusted free cash flow [33][34] Question: Opportunities in Africa post-Safaricom acquisition - Management sees significant growth opportunities in Africa, particularly in digital services and financial services, with potential for further B2B acquisitions [40][41] Question: Impact of potential consolidation in the U.K. broadband market - Management believes consolidation could be beneficial but emphasizes their strong position through multi-partner wholesaling [46][47] Question: Future of Fixed Wireless Access (FWA) in the U.K. and Germany - Management expects FWA to grow in the U.K. but notes that the market in Germany is less dynamic due to existing fiber penetration [51][53] Question: Thoughts on tower market and Vantage - Management is satisfied with their position in Vantage and is open to considering strategic opportunities as the tower market evolves [59][60] Question: Comments on EU Digital Networks Act and Cybersecurity Act - Management views the potential for spectrum license reforms positively but expresses concerns about the draft Cybersecurity Act introducing uncertainty [84][86]

Financial Data and Key Metrics Changes - Group service revenue grew by 5.4% in Q3 2026, supported by growth in Europe and Africa, particularly in Germany, Africa, and Turkey [4][6] - Group EBITDA increased by 2.3% in Q3 and 5.3% year-to-date, aligning with expectations and guidance for FY26 [4][8] Business Line Data and Key Metrics Changes - In Germany, mobile customer numbers increased, with new customer ARPUs up 21% year-on-year, stabilizing consumer broadband revenues [5][6] - The U.K. integration and network investment plan is progressing well, with initial upgrades delivered ahead of schedule [5][6] - The acquisition of Skaylink was completed, supporting growth in digital services across cloud and security [7] Market Data and Key Metrics Changes - The company is acquiring a controlling stake in Safaricom, enhancing its position in Africa amid growing demand for digital services [6][7] - Emerging markets continue to show double-digit growth, while the U.K. faces a challenging competitive environment [30][32] Company Strategy and Development Direction - Vodafone is focused on enhancing customer experience and value strategy, particularly in Germany, where it aims to improve EBITDA through cost simplification and B2B growth [14][15] - The company is committed to a 10-year plan to invest GBP 11 billion in building the U.K.'s leading 5G network [6][7] - The strategy emphasizes value over volume, encouraging a shift in how telecom performance is evaluated [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the upper end of FY26 guidance, with a positive outlook for multi-year growth trajectory [8][32] - The competitive landscape in Germany remains challenging, but improvements in fixed broadband and customer experience are expected to support future performance [16][24] Other Important Information - The company is optimistic about the potential for consolidation in the U.K. broadband market, which could enhance pricing power [45][46] - The EU Digital Networks Act and Cybersecurity Act are seen as potential catalysts for investment and innovation, though they also introduce uncertainties [81][84] Q&A Session Summary Question: Insights on Germany's EBITDA trajectory - Management indicated that EBITDA in Germany is expected to improve in the second half of the year, but not return to positive growth [12][14] Question: Value versus volume strategy in broadband - Management confirmed a focus on value, with fixed broadband churn below many European markets and improvements in customer satisfaction [23][24] Question: Group-wide growth prospects for 2027 - Management remains confident in multi-year growth for adjusted free cash flow and EBITDA, with expectations for cost synergies in the U.K. [32][33] Question: Opportunities in Africa post-Safaricom acquisition - The acquisition is expected to strengthen Vodafone's position in Africa, leveraging growth in population and demand for digital services [38][39] Question: Impact of potential consolidation in the U.K. broadband market - Management is pleased with Vodafone's current position and believes that consolidation could enhance market dynamics without negatively impacting their strategy [45][46] Question: Future of Fixed Wireless Access (FWA) - Management expects FWA to grow in the U.K. and sees potential for deployment in rural areas of Germany, though fiber remains the primary focus [50][52] Question: Thoughts on tower market and Vantage - Management is satisfied with Vantage's performance and is open to evaluating future opportunities in the tower market as it evolves [58][59] Question: Insights on the EU Digital Networks Act - Management views the proposed reforms as a potential positive for investment certainty, though there are concerns regarding the Cybersecurity Act [81][84]

Financial Data and Key Metrics Changes - Group service revenue grew by 5.4% in Q3 2026, supported by growth in Europe and Africa, particularly in Germany, Africa, and Turkey [3][4] - Group EBITDA increased by 2.3% in Q3 and 5.3% year-to-date, aligning with expectations and guidance for FY26 [3][4] Business Line Data and Key Metrics Changes - In Germany, mobile customer numbers increased, with new customer ARPUs up 21% year-on-year, stabilizing consumer broadband revenues [4][6] - The U.K. integration and network investment plan is progressing well, with initial upgrades delivered ahead of schedule [4][5] - The acquisition of Skaylink supports growth in digital services, particularly in cloud and security [6] Market Data and Key Metrics Changes - Emerging markets continue to show double-digit growth, contributing positively to overall service revenue [29] - The competitive landscape in the U.K. is evolving, with potential consolidation among operators, which may impact pricing and competition [42] Company Strategy and Development Direction - Vodafone is focused on enhancing customer experience and value strategy, particularly in Germany and the U.K. [4][5] - The company is investing GBP 11 billion over ten years to build the leading 5G network in the U.K. [5] - The acquisition of a controlling stake in Safaricom is expected to strengthen Vodafone's position in Africa, leveraging growth opportunities in digital services [6][38] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the multi-year growth trajectory, with expectations for continued good growth in EBITDA and adjusted free cash flow [31][32] - The company is navigating a competitive market environment but is confident in its strategic initiatives and operational progress [6][7] Other Important Information - The company is seeing improvements in Net Promoter Scores and is focused on reducing complexity while accelerating opportunities in digital and financial services [6] - The EU Digital Networks Act and Cybersecurity Act are under review, with potential implications for investment and innovation in the telecom sector [77][78] Q&A Session Summary Question: Insights on Germany's EBITDA trajectory - Management expects EBITDA performance in Germany to improve in the second half of the year, but does not anticipate a return to positive EBITDA this year [12][14] Question: Clarification on broadband strategy and pricing actions - The focus is on value over volume, with recent price increases expected to stabilize broadband losses and improve ARPU [21][25] Question: Group-wide growth prospects for 2027 and beyond - Management is confident in the multi-year outlook for adjusted free cash flow growth, with continued good growth expected for the group overall [31][32] Question: Impact of potential consolidation in the UK broadband market - Management believes consolidation could make sense in the current environment but is pleased with Vodafone's multi-partner approach in the UK [42][43] Question: Opportunities in Africa following the Safaricom acquisition - The acquisition is seen as a strategic move to leverage growth opportunities in Africa, particularly in digital services and financial technology [38][39] Question: Thoughts on tower market dynamics and Vantage - Management is satisfied with the current position in Vantage and is monitoring market trends for potential consolidation opportunities [56][57] Question: Discussion on Fixed Wireless Access (FWA) growth - Management expects FWA to continue to grow in the UK, with seasonal factors impacting recent performance [48][49] Question: Comments on the EU Digital Networks Act and Cybersecurity Act - Management is cautiously optimistic about potential reforms but acknowledges the uncertainty surrounding the Cybersecurity Act [78][79]

Financial Performance - Group Q2 service revenue increased by 58% [3] - Europe Q2 service revenue saw a growth of 05% [3] - Group H1 Adjusted EBITDAaL grew by 68% [3] - FY26 Adjusted EBITDAaL is expected to be between €113 billion and €116 billion [3] - FY26 Adjusted FCF is projected to be between €24 billion and €26 billion [3] - The company commits to a progressive dividend policy with a 25% increase for FY26 [3] Operational Progress - VodafoneThree merger was completed on May 31, 2025, with financial results consolidated from June 1, 2025 [3] - In Germany, 350k OXG households were passed [3] - In the UK, VodafoneThree integration is off to a fast start [3] - Africa has 94 million financial services customers [3]

Core Insights - Vodacom Group Limited reported strong interim results for the six months ended September 30, 2025, highlighting resilience and agility in a stable macroeconomic environment, marking an ideal start to its Vision 2030 ambitions [1] Financial Performance - Group service revenue increased by 12.2% to R65.8 billion, with a normalized growth of 13.6%, exceeding medium-term targets for double-digit growth [2] - Total Group revenue rose by 10.9% to R81.6 billion, with a normalized increase of 12.1% [2] - Operating free cash flow surged by 71.0% to R10.0 billion, and Group free cash flow improved to R2.7 billion from a negative R1.076 billion in the previous year [3] - The net debt to EBITDA ratio decreased from 1.1x to 0.9x, and return on capital employed (ROCE) improved by 3.8 percentage points to 26.3% [3] Regional and Segment Performance - Egypt was the standout performer with service revenue growth of 42.3% (48.3% normalized) driven by strong campaigns and data traffic growth of 21.9% [4] - The International business segment reported service revenue growth of 12.2% (13.3% normalized) to R16.7 billion, with a substantial EBITDA increase of 35.0% (33.8% normalized) [5] - Services beyond traditional mobile connectivity contributed 21.8% of Group service revenue, indicating successful diversification [6] Associate Performance - Safaricom's service revenue grew by 11.1% in local currency, contributing to the Group's operating profit growth, with Group EBITDA increasing by 14.7% to R30.5 billion [7] - Headline earnings per share (HEPS) rose by 32.3% to 467 cents per share, and an interim dividend of 330 cents per share was declared, reflecting a 15.8% increase [7] Financial Services Growth - Financial services revenue grew by 20.3% (21.5% normalized) to R8.0 billion, with 93.7 million financial services customers, a 13.1% increase [8] - M-Pesa processed over US$476.8 billion in transaction value over the last year, solidifying its position as Africa's largest mobile money platform [8] Challenges in South Africa - South Africa's service revenue growth was modest at 2.2% to R31.7 billion, with EBITDA declining by 5.3% to R15.5 billion and operating profit reducing by 11.0% [10][12] - The prepaid segment faced challenges, with revenue decreasing by 1.6% to R13.2 billion and a 7.4% decline in the prepaid customer base [12] Strategic Developments - The acquisition of a 30% stake in Maziv received approval, expected to enhance network expansion [12] - The long-standing "Please Call Me" legal dispute was settled out of court, positively impacting interim results [12]