Financial Data and Key Metrics Changes - Group service revenue growth accelerated to 5.8% in Q2, supported by growth across Europe and Africa [3] - Group EBITDA grew by 6.8% in the first half, with nearly all markets posting EBITDA growth [3][4] - Over EUR 5 billion returned to shareholders via buybacks and dividends over the last 18 months, with a further EUR 1 billion of buybacks expected in the next six months [2][8] Business Line Data and Key Metrics Changes - In Germany, the 5G standalone network covers over 90% of the population, serving over 40 million customers and almost 60 million IoT SIMs [4] - Fixed broadband offers gigabit connectivity to three out of four German households, with continued expansion of gigabit broadband reach [4] - In the U.K., Vodafone serves almost 30 million mobile customers and is the fastest-growing broadband provider, with a gigabit footprint covering about 22 million households [6][7] Market Data and Key Metrics Changes - Strong performance reported in African markets, with another set of results in line with medium-term double-digit EBITDA growth guidance [7][8] - The U.K. market is experiencing good commercial momentum, supported by cross-selling opportunities and a multi-brand approach [7] Company Strategy and Development Direction - The company aims to improve customer experience, simplify operations, and deliver sustainable cash flow growth in fiscal year 2026 and beyond [8] - The focus remains on operational excellence and leveraging unique assets in the market to extend customer experience leadership [7][8] - A progressive dividend policy has been announced, with expectations for growth year after year [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook due to the turnaround in Germany, U.K. integration, and strong positions in growing markets [8] - The company expects Germany to continue improving in H2, with a full run rate of wholesale migration expected [15][17] - The management acknowledged potential challenges in the U.K. due to tough comparisons in the B2B business but remains optimistic about future performance [15][16] Other Important Information - The company has completed the reshaping of the group, including the merger of Vodafone Three in the U.K. and the acquisition of Telecom Romania's assets [1][2] - The company is focused on digital and financial services growth beyond traditional connectivity [2] Q&A Session Summary Question: EBITDA run rate for the second half and next year - Management expects Germany to continue improving in H2, with a full run rate of wholesale migration contributing positively [15][16] Question: Turnaround initiatives in Germany - Management anticipates that underlying performance in Germany will stabilize, with improvements in customer experience and churn reduction [30][31] Question: U.K. integration and synergy delivery - Early actions in integration have led to improved churn trends and strong consumer performance, particularly in home broadband [38][40] Question: Proposed changes to legislation in Germany - Management views potential legislative changes as marginally beneficial for fiber build-out, with no significant impact expected [47][49] Question: Performance of Vodafone Turkey - Turkey has shown significant EBITDA and cash flow growth, with a strong digital capabilities model contributing to success [58][60] Question: Future of digital services and acquisitions - Digital services are growing rapidly, and the company sees opportunities for further investment and potential acquisitions in this space [85][87] Question: Dividend policy and shareholder returns - A progressive dividend policy has been established, with expectations for growth year after year, alongside ongoing share buybacks [80][81]

Financial Data and Key Metrics Changes - Group service revenue growth accelerated to 5.8% in Q2, supported by growth across Europe and Africa [4] - Group EBITDA grew by 6.8% in the first half, with nearly all markets posting EBITDA growth [4][3] - Over EUR 5 billion returned to shareholders via buybacks and dividends over the last 18 months, with a further EUR 1 billion of buybacks expected in the next six months [3] Business Line Data and Key Metrics Changes - In Germany, the 5G standalone network covers over 90% of the population, serving over 40 million customers and almost 60 million IoT SIMs [5] - Fixed broadband offers gigabit connectivity to three out of four German households, with OXG fiber marketed to 1 million homes [5] - In the U.K., Vodafone serves almost 30 million mobile customers and is the fastest-growing broadband provider, with a gigabit footprint covering about 22 million households [7] Market Data and Key Metrics Changes - The U.K. market is experiencing good commercial momentum, supported by cross-selling opportunities between Vodafone and Three customers [8] - African markets continue to show strong performance, with another set of results reported in line with medium-term double-digit EBITDA growth guidance [8] Company Strategy and Development Direction - The company is focused on improving customer experience, simplifying operations, and delivering sustainable cash flow growth in fiscal year 2026 and beyond [9] - The integration of Vodafone and Three in the U.K. is a top priority, with significant investments in network quality and customer experience [7][8] - The company aims to leverage its unique assets in the market to extend customer experience leadership and drive fixed service growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook due to the turnaround in Germany, the U.K. integration, and strong positions in growing markets across Europe and Africa [9] - The company expects to close the year at the upper end of the growth guidance set out in May, despite anticipated slowdowns in certain markets [4][16] - Management highlighted the importance of disciplined execution focused on operational excellence to capitalize on growth opportunities [91] Other Important Information - The company announced a move to a progressive dividend policy, expecting to grow dividends over time [9][78] - The acquisition of Skaylink is part of the company's strategy to enhance digital services, which now account for over a quarter of B2B revenues [84] Q&A Session Summary Question: EBITDA run rate for the second half and next year - Management indicated that while the first half saw strong growth, a slowdown is expected in the second half due to various factors including marketing expenses and tough comparisons in the U.K. [11][16] Question: Turnaround initiatives in Germany - Management expects continued growth in Germany in the second half, supported by wholesale contributions and improved B2B performance [21][26] Question: Integration progress in the U.K. - Management reported positive early actions and synergy delivery from the integration of Vodafone and Three, with improved churn trends and strong consumer performance [34][38] Question: Impact of proposed legislation in Germany - Management noted that proposed changes to legislation could marginally accelerate fiber building but do not foresee significant impacts on the OXG joint venture [44][46] Question: Performance of Vodafone Türkiye - Management highlighted Vodafone Türkiye's strong performance, with significant EBITDA and cash flow growth, driven by unique digital capabilities [55][58] Question: Future of FWA proposition in the U.K. - Management sees FWA as a great opportunity to leverage existing assets and bridge the gap until fiber is available in all areas [64][66] Question: Common functions EBITDA - Management explained that the negative adjusted EBITDA for common functions is expected to remain negative due to structural factors [67][70] Question: Dividend and buyback outlook - Management confirmed a progressive dividend policy and indicated that buybacks will be assessed based on the company's position and market environment [76][78] Question: Future acquisitions in digital services - Management expressed confidence in the growth of digital services and indicated that more activity in this space, including potential small acquisitions, is likely [82][86]

Financial Data and Key Metrics Changes - Vodafone's group service revenue growth accelerated to 5.8% in Q2, supported by growth across Europe and Africa [3] - Group EBITDA grew by 6.8% in the first half, with nearly all markets posting EBITDA growth [3][4] - Over EUR 5 billion returned to shareholders via buybacks and dividends over the last 18 months, with a further EUR 1 billion of buybacks expected in the next six months [2][9] Business Line Data and Key Metrics Changes - In Germany, the 5G standalone network covers over 90% of the population, serving over 40 million customers and almost 60 million IoT SIMs [4] - Fixed broadband offers gigabit connectivity to three out of four German households, with continued expansion of gigabit broadband reach [4] - In the U.K., Vodafone serves almost 30 million mobile customers and is the fastest-growing broadband provider, with the largest gigabit footprint [6][8] Market Data and Key Metrics Changes - Vodafone holds leadership positions across African markets, reporting strong results in line with medium-term double-digit EBITDA growth guidance [8][9] - The U.K. market is experiencing good commercial momentum, supported by cross-selling opportunities and a multi-brand approach [7][8] Company Strategy and Development Direction - The company aims to improve customer experience, simplify operations, and deliver sustainable cash flow growth in fiscal year 2026 and beyond [9] - Vodafone is focused on operational excellence and has completed the reshaping of the group, including the merger of Vodafone Three in the U.K. and the acquisition of Telecom Romania's assets [2][9] - The company is moving to a progressive dividend policy, indicating a commitment to grow dividends over time [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook due to the turnaround in Germany, the U.K. integration, and strong positions in growing markets across Europe and Africa [9] - The company expects to close the year at the upper end of the growth guidance set in May, despite anticipated slowdowns in certain markets [3][14] Other Important Information - The company has introduced new propositions in mobile and is expanding capabilities to meet growing demand for digital services [5] - The integration of Vodafone and Three in the U.K. is progressing rapidly, with early wins in network quality and customer experience [6][8] Q&A Session Summary Question: EBITDA run rate for the second half and next year - Management indicated that while the first half saw strong growth, a slowdown is expected in the second half due to various factors, including marketing expenses and emerging markets' growth trends [11][14] Question: Turnaround initiatives in Germany - Management expects continued growth in Germany in the second half, supported by wholesale contributions and improved B2B performance [22][29] Question: U.K. integration and commercial performance - The integration of Vodafone and Three is progressing well, with positive actions leading to improved churn trends and strong consumer performance [36][42] Question: Proposed changes to legislation in Germany - Management believes that proposed changes will marginally accelerate fiber building but does not expect significant impacts on the OXG joint venture [47][50] Question: Performance of Vodafone Turkey - Turkey has shown significant financial success, with both EBITDA and cash flow increasing by close to EUR 300 million each over the last two years, despite a potential slowdown in growth due to moderating inflation [58][60] Question: Future of digital services and acquisitions - Management sees significant growth potential in digital services, particularly in B2B, and anticipates more activity in this space, including potential small acquisitions [85][88] Question: Dividend policy and shareholder returns - The company has adopted a progressive dividend policy, expecting to grow dividends year after year, while also considering share buybacks based on market conditions [80][81]

Financial Data and Key Metrics Changes - The company reported an EBITDA growth of 2.4%, driven by operational expense (OPEX) improvements, despite a year-on-year decline in software revenues by 1.1% [5][22] - Revenue decreased by 1.1%, translating to a decline of approximately CHF 8 million, primarily due to a drop in fixed subscription revenue [22][25] - Free cash flow generated was close to CHF 14 million, lower than Q2, attributed to interest payments typically made in Q1 and Q3 [25][30] Business Line Data and Key Metrics Changes - Mobile segment saw 20,000 postpaid net additions, supported by B2B growth, while the internet segment experienced a decline of 7,000 net adds due to software trading impacts and UPC migrations [5][18] - Fixed business reported negative net adds of 7,000, attributed to slower inflow and higher churn, which is expected to be a one-time impact [13][14] - Mobile ARPU increased, benefiting from price increases and improved inflow values, while fixed ARPU declined due to promotional pressures and accounting impacts from new mobile portfolio [19][22] Market Data and Key Metrics Changes - Competitive intensity remains high but unchanged, with the company continuing its strategy across main brands, flanker brands, and B2B [7][36] - The company launched a new budget mobile brand, CH Mobile, to capture the lower end of the market, responding to increased competition in that segment [11][12][58] Company Strategy and Development Direction - The company is executing a fast follower strategy, particularly in response to Black Friday activities, and has launched several new services to open growth avenues [6][11] - Focus on improving operational efficiencies and cost management, with expectations of further OPEX and CAPEX efficiencies in the future [7][36] - The company aims to stabilize its fixed business by 2026, despite current delays in stabilization [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slower than expected stabilization of the fixed consumer business, driven by softer inflow and higher churn levels [15][36] - The company reaffirmed its 2025 financial guidance, including a 2.7% growth in dividends per share (DPS) [6][36] - Management is optimistic about increasing free cash flows and attractive shareholder returns in the midterm [7][36] Other Important Information - The company confirmed the termination of its Class A ADS program, with a significant percentage of shares already converted [34][35] - The company is committed to gradually repaying its debt, with plans to repay CHF 180 million in Q4 [33][34] Q&A Session Summary Question: B2B interest in 5G services and EU vendor replacement risks - Management noted slow movement in B2B adopting 5G services, with no major inflow of new demands yet [41] - No imminent need to react to EU discussions on vendor replacements in Switzerland [41][42] Question: Black Friday sales and fixed ARPU weakness - Management observed early promotions from competitors but noted no significant changes in aggression compared to previous years [46] - Fixed ARPU pressures are expected to stabilize with ongoing actions to improve inflow and reduce churn [48] Question: Brand strategy and fiber rollout focus - The new CH Mobile brand aims to fill gaps in the budget segment, responding to competitor activity [58] - Management plans to enhance marketing efforts in fiber rollout areas to capture more customers [60] Question: Expectations for CH Mobile and cost savings - No specific market share targets for CH Mobile, but the goal is to participate in the growing budget segment [76] - Cost savings expected from AI implementation, organizational efficiencies, and effective marketing spending [77]

Financial Data and Key Metrics Changes - The company reported an EBITDA growth of 2.4%, driven by operational expense improvements, despite a 1.1% decline in software revenues year-on-year [5][22] - Revenue decreased by 1.1%, translating to a decline of approximately CHF 8 million, primarily due to a drop in Fixed Subscription Revenue [22][25] - Free cash flow generated was close to CHF 14 million, lower than Q2, attributed to interest payments typically made in Q1 and Q3 [25][30] Business Line Data and Key Metrics Changes - Mobile segment saw 20,000 postpaid net additions, supported by B2B growth, while the internet segment experienced a decline of 7,000 net adds due to software trading impacts and UPC migrations [5][18] - Fixed business reported negative net adds of 7,000, attributed to the tail end of UPC migrations and higher churn rates [13][14] - Mobile ARPU increased, benefiting from price increases and improved inflow values, while Fixed ARPU declined due to promotional pressures and accounting impacts from the new mobile portfolio [19][22] Market Data and Key Metrics Changes - The company observed unchanged competitive intensity in the market, with a focus on three growth engines: main brand, flanker brands, and B2B [7][36] - The FMC share increased by 0.5 percentage points compared to the previous quarter, now at 59% [18] Company Strategy and Development Direction - The company reaffirmed its midterm outlook of increasing free cash flows and attractive shareholder returns, despite slower stabilization in the Fixed business [7][36] - New product launches, including Home Security and CHmobile, aim to capture market opportunities and enhance service offerings [8][11] - The company is executing a fast follower strategy in response to competitor activities, particularly during the Black Friday sales period [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slower than expected stabilization of the Fixed business, with expectations for improvement during 2026 [36] - The company is taking countermeasures to address challenges in the Fixed segment, including loyalty initiatives and operational execution improvements [16][48] - Management remains optimistic about the liquidity in Q4 and the potential for growth through new product offerings [36] Other Important Information - The company confirmed its guidance for 2025, including a 2.7% year-on-year growth in dividends per share [6][32] - The termination of the Class A ADS program is expected to conclude on November 13, with a significant percentage of shares already converted [34][35] Q&A Session Summary Question: B2B interest in 5G services and EU vendor replacement risks - Management noted slow movement in B2B interest for 5G services, with no major inflow of new demands [41] - There is no immediate need for action regarding EU vendor replacement risks in Switzerland [41][42] Question: Black Friday sales and Fixed ARPU weakness - Management observed early promotional activities from competitors but noted no significant changes in aggression compared to previous years [46] - The stabilization of Fixed ARPU is delayed, with several actions being taken to improve the situation [48] Question: Brand strategy and fiber rollout focus - The launch of CHmobile is seen as a completion of market coverage rather than a shift in strategy, addressing gaps in the budget segment [58] - Management plans to enhance marketing efforts in fiber rollout areas to capture more customers [60] Question: Expectations for CHmobile and cost savings - No specific market share targets for CHmobile, but the aim is to participate in the growing budget segment [76] - Cost savings are expected from operational efficiencies, AI implementation, and effective marketing spending [77]

Financial Data and Key Metrics Changes - The company reported an EBITDA growth of 2.4%, driven by operational expenditure (OPEX) improvements, despite a year-on-year decline in software revenues by 1.1% [4][21] - Revenue decreased by 1.1%, translating to a decline of approximately CHF 8 million, primarily due to a drop in fixed subscription revenue [21][24] - Free cash flow generated was close to CHF 14 million, lower than Q2, attributed to interest payments typically made in Q1 and Q3 [23] Business Line Data and Key Metrics Changes - The mobile segment saw 20,000 postpaid net additions, supported by B2B growth, while the internet segment experienced a decline of 7,000 net adds due to software trading impacts and UPC migrations [4][18] - Mobile Average Revenue Per User (ARPU) increased, benefiting from price increases and improved inflow values, while fixed ARPU declined due to various factors including promotional intensity [19][21] Market Data and Key Metrics Changes - The company observed unchanged competitive intensity in the market, with a focus on three growth engines: main brand, flanker brands, and B2B [6][36] - The Fixed Consumer Business is experiencing slower stabilization than anticipated, influenced by softer inflow and higher churn rates [6][14] Company Strategy and Development Direction - The company reaffirmed its midterm outlook of increasing free cash flows and attractive shareholder returns, while executing a fast follower strategy with the launch of CH Mobile [5][36] - New product launches included home security services, a high-end Iconic bundle, and a Super search functionality for content, aimed at enhancing market competitiveness [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a slower than expected stabilization of the fixed business, with expectations for improvement during 2026 [36] - The company is taking countermeasures to address challenges in the fixed segment, including adjustments to promotional strategies and loyalty initiatives [46][47] Other Important Information - The company confirmed its guidance for 2025, including a 2.7% year-on-year growth in dividends per share (DPS) [5][32] - The termination of the Class A ADS program was noted, with a significant percentage of shares already converted [34][37] Q&A Session Summary Question: B2B interest in 5G services and EU vendor replacement risks - Management noted slow movement in B2B interest for 5G services, with no major inflow of new demands observed [41] - There is no imminent need to react to EU discussions on vendor risks in Switzerland [41][42] Question: Black Friday sales outlook and fixed ARPU weakness - Management indicated that Black Friday promotions have started early, with no significant changes in aggression compared to previous years [45] - The stabilization of fixed ARPU is delayed, with several actions being taken to improve the situation [46][47] Question: Brand strategy and fiber rollout focus - The launch of CH Mobile is seen as a completion of the multi-brand strategy, addressing gaps in the budget segment [58] - The company plans to enhance marketing efforts in new fiber rollout areas to capture more customers [60] Question: Expectations for CH Mobile and cost savings - No specific targets for CH Mobile were set, but the aim is to participate in the growing budget segment [76] - Future cost savings are expected from OPEX efficiencies, AI implementation, and improved marketing spending [77]

Financial Data and Key Metrics Changes - Service revenues net of interconnection reached $145.9 billion, up 1% year on year, driven by steady demand across fiber, data, and ICT [4][6] - Cash operating expenses, subsidies, and provisions decreased by 2%, reflecting the company's focus on spending control [4][16] - EBITDA rose 3% to $82.8 billion with margins steady at 52% amidst higher revenues and lower operating expenses [4][17] - Telco core income was $5.3 billion, down 5% mainly due to higher depreciation and financing costs from network and IT investments [5][18] - Core income remained stable at $25.8 billion, supported by Maya's sustained profitability [5][19] Business Line Data and Key Metrics Changes - Fiber revenues grew 7%, reflecting solid demand for reliable connectivity [6][10] - Mobile data and fixed wireless revenues were up 1%, with fixed wireless showing strong momentum with an 18% year-on-year increase [6][15] - Corporate Data and ICT revenues grew 2%, with ICT services alone growing 27% year on year [7][13] - Home revenues grew 4% year on year, driven mainly by continued fiber demand [10][12] Market Data and Key Metrics Changes - The enterprise segment returned to growth in the third quarter, with corporate data and ICT up 5% year on year [9][13] - Government and public sector projects began to ramp up after election-related delays, contributing to the growth in enterprise revenues [7][13] - The number of 5G devices increased by 39% year on year, driving higher data usage and improved customer experience [15] Company Strategy and Development Direction - The company continues to invest in new cell sites, LTE and 5G upgrades, home fiber ports, data center development, and submarine cables to strengthen network quality and support growth [20] - PLDT launched Filipinas AI, the country's first sovereign AI platform, to enable enterprises to build and deploy AI models locally [14][89] - The company is focused on asset monetization programs, including a potential REIT listing for its data center [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive free cash flow into 2026, supported by lower CapEx and asset monetization [22][70] - The government is expected to continue investing in digital connectivity, which is seen as a priority for future growth [46] - Management highlighted the importance of maintaining profitability amidst a competitive environment, with a focus on disciplined growth [17][18] Other Important Information - Maya's net income for the third quarter was $532 million, with significant growth in deposits and loans [24][25] - The company recorded a $1.1 billion in proceeds from tower sales and completed a $20.5 billion final dividend payment for 2024 [22] Q&A Session Summary Question: What were the main drivers for the drop in Maya's net income for the period? - The drop was attributed to the removal of gaming links and the launch of new credit products, which will have some provision impact in the near term [33][34] Question: How do you see the KPA and IRRs impacting profitability and investment profile? - The law aims for cheaper internet and wider coverage, but lacks obligations for new entrants to build infrastructure, raising concerns about its effectiveness [36][54] Question: What is driving the difference in performance in the mobile segment? - Smart Wireless Group achieved flattish growth year to date, with improved ARPU due to targeted customer acquisition strategies [39][40] Question: Are you seeing sustained uptick in government projects into the fourth quarter? - Continued demand from government agencies is expected, with investments in digital connectivity prioritized [42][46] Question: What is the status of the asset monetization programs? - The company is in talks for a 49% stake sale in its data center and exploring a REIT listing [71][92]

Financial Data and Key Metrics Changes - Sales of continuing operations for Q2 FY 2025 increased by 5% year-on-year to JPY 3,107.9 billion, while operating income rose by 10% to JPY 429 billion, both record highs for the second quarter [2] - Net income increased by 7% to JPY 311.4 billion [2] - Full-year sales forecast was upwardly revised by 3% to JPY 12 trillion, operating income by 8% to JPY 1,430 billion, and net income by 8% to JPY 1,050 billion [2] - Operating cash flow forecast was revised upward by 18% to JPY 1.5 trillion [3] Business Segment Data and Key Metrics Changes - G&SS segment sales increased by 4% year-on-year, but operating income decreased by 13% due to non-recurring losses of approximately JPY 49.8 billion [3] - Music segment sales increased by 21% year-on-year, with operating income rising by 28%, driven by higher visual media and platform revenue [8] - Picture segment sales decreased by 3% year-on-year, and operating income decreased by 25% due to lower theatrical release sales [11] - ET&S segment sales decreased by 7% year-on-year, with operating income down by 13% [12] - I&SS segment sales increased by 15% year-on-year, and operating income increased by 50%, both reaching record highs for the segment [14] Market Data and Key Metrics Changes - The U.S. economy shows signs of slowing down, with rising inflation and a decreasing job applicant ratio, leading to cautious business operations [21] - The smartphone market is gradually recovering, particularly in North America, which presents opportunities for growth [47] Company Strategy and Development Direction - The company aims to expand its PlayStation 5 install base while balancing profitability [5][34] - Focus on adapting successful content IPs like Demon Slayer for further growth in the content-related businesses [22] - Plans to enhance the efficiency of business operations and product development in the next mid-range plan [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the uncertain business environment and intends to operate cautiously while striving for steady results [17] - The company is optimistic about achieving an average annual growth rate of operating income of 18% compared to the final year of the previous mid-range plan [18] Other Important Information - The company established a share repurchase facility of up to JPY 100 billion to be executed by May 2026 [18] - The company completed a partial spinoff of its financial service business on October 1st [18] Q&A Session Summary Question: Market conditions and consumer behavior - Management noted stability in Japan and the U.S., but expressed caution due to signs of slowing in the U.S. economy [21] Question: Growth of content-related businesses - The company plans to adapt successful titles like Demon Slayer into films and collaborate with distributors to grow the business [22] Question: Live service game business and development status of Marathon - The development of Marathon is ongoing, with a technical test conducted recently, and the launch is expected within the year [23][24] Question: Contribution of Demon Slayer to music segment - Approximately 50% of the upward revision in the music segment's operating income was attributed to Demon Slayer and Kokuho [28] Question: Impact of tariffs - The impact of tariffs was revised down from JPY 70 billion to JPY 50 billion, with the decline mainly affecting the I&SS segment [31][32] Question: Future strategy for PlayStation 5 - The company aims to expand the PS5 install base and monetize the existing user base rather than focusing solely on hardware profitability [39]

Financial Data and Key Metrics Changes - Sales of continuing operations for Q2 FY 2025 increased by 5% year-on-year to JPY 3,107.9 billion, while operating income rose by 10% to JPY 429 billion, both record highs for the second quarter [2] - Net income increased by 7% to JPY 311.4 billion [2] - Full-year sales forecast was upwardly revised by 3% to JPY 12 trillion, operating income by 8% to JPY 1 trillion 430 billion, and net income by 8% to JPY 1 trillion 50 billion [2] Business Segment Data and Key Metrics Changes - GNNS segment sales increased by 4% year-on-year, but operating income decreased by 13% due to non-recurring losses of approximately JPY 49.8 billion [3] - Music segment sales increased by 21% year-on-year, with operating income rising by 28%, driven by higher visual media and platform revenue [8] - Picture segment sales decreased by 3% year-on-year, and operating income decreased by 25%, primarily due to lower theatrical release sales [11] - INSS segment sales increased by 15% year-on-year, and operating income increased by 50%, both reaching record highs for the segment [14][15] Market Data and Key Metrics Changes - Streaming revenue in the music segment increased by 12% year-on-year in recorded music and 25% in music publishing [8] - The U.S. economy shows signs of slowing down, with rising inflation and a decreasing job applicant ratio, leading to cautious business operations [21] Company Strategy and Development Direction - The company aims to expand its IP franchises and strengthen its studio business through continuous learning and improvement [7] - In the sports business, the acquisition of Stats Perform aims to provide industry-leading sports data solutions [14] - The company plans to control costs and inventory while cautiously operating its business in the uncertain environment [13] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the U.S. economy and its potential impact on business operations [21] - The company remains optimistic about the performance of its content-related businesses, particularly with successful titles like Demon Slayer [22] - The upwardly revised operating income forecast projects an average annual growth rate of 18% compared to the final year of the previous mid-range plan [18] Other Important Information - The company established a share repurchase facility of up to JPY 100 billion to be executed by May 2026 [18] - The company recorded an impairment loss against a portion of the assets at Bungie due to underperformance expectations [5] Q&A Session Summary Question: What about the market conditions and consumer behaviors? - Management noted stability in Japan and the U.S., but expressed caution due to signs of slowing in the U.S. economy [21] Question: How will the company grow content-related businesses? - The company plans to adapt titles to films and partner with distributors to grow the business, particularly in Hollywood [22] Question: What is the status of the live service game Marathon? - The game is still in development, with a technical test conducted recently, and the company aims to launch it as scheduled [23] Question: What contributed to the success of Demon Slayer? - The unexpected performance was attributed to strong overseas market results, particularly in Hollywood [24] Question: What is the contribution of Demon Slayer to the music segment's operating income? - Approximately 50% of the upward revision in operating income was attributed to Demon Slayer and Kokuhou [28] Question: What is the impact of tariffs on the company's forecast? - The impact of tariffs was revised down from JPY 70 billion to JPY 50 billion, reflecting a JPY 20 billion decline [30] Question: What is the strategy for expanding the PS5 install base? - The company aims to expand the install base while balancing profitability, focusing on customer lifetime value [33]

Financial Data and Key Metrics Changes - Group service revenue growth accelerated to 5.8% in Q2, supported by growth across both Europe and Africa [5][6] - Europe's service revenue returned to growth at 0.5%, driven by stabilization in Germany and growth in The UK [5][6] - Adjusted EBITDA saw an organic growth of 6.8% in the first half [7] Business Line Data and Key Metrics Changes - In Germany, service revenue grew by 0.5% despite intense competition, aided by the end of the MDU TV law change and acceleration in wholesale revenue [6][9] - The B2B business grew at 2.9% in Q2, with strong demand for digital services growing in double digits [6][10] Market Data and Key Metrics Changes - The UK market showed strong performance in the first full quarter post-merger with Three, with measurable improvements in network and customer experience [5][12] - Emerging markets, particularly Turkey and Vodacom, continued to deliver strong growth in euro terms [6] Company Strategy and Development Direction - The company is focused on operational turnaround in Germany and executing integration plans in The UK, aiming to improve customer experience and simplify operations [20] - A progressive dividend policy has been announced, with a planned 2.5% increase in the final FY26 dividend [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering at the upper end of FY 2026 guidance due to solid performance and positive outlook [7][20] - The company is positioned in markets with sustainable structures and good local scale, with a focus on high growth opportunities such as IoT and digital services [19][20] Other Important Information - The company has returned over €3 billion of capital to shareholders via buybacks and dividends since the capital allocation framework was refreshed [14][15] - The incoming CFO, Pilar Lopets, emphasized the importance of operational excellence and sustainable cash flow growth [18] Q&A Session Summary Question: What are the expectations for future growth? - Management confirmed that Vodafone is now growing service revenue in Europe and Africa, with a focus on operational turnaround and integration plans [19][20] Question: How is the integration with Three progressing? - The integration is off to a fast start, with improvements in customer loyalty and measurable network enhancements already noted [12]