Vodafone

Germany

Open Office 29 September 2016

Munich, Germany

2

Disclaimer

Information in this factsheet 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 Group.

This factsheet contains forward-looking statements within the meaning of the US Private Securities

Litigation Reform Act of 1995 which are subject to risks and uncertainties because they relate to

future events. Some of the factors which may cause actual results to differ from these forward-

looking statements can be found under the heading “Forward-Looking statements” in our 2016

annual report which can be found on our website www.vodafone.com/investor.

This factsheet also contains non-GAAP financial information which the Group’s management

believes is valuable in understanding the performance of the 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 Group’s industry. Although

these measures are important in the assessment and management of the Group’s business, they

should not be viewed in isolation or as replacements for, but rather as complementary to, the

comparable GAAP measures.

Vodafone, the Vodafone Portrait, the Vodafone Speechmark and Vodafone One Net are trade marks

of the Vodafone Group. The Vodafone Rhombus is a registered design of the Vodafone Group. Other

product and company names mentioned may be the trade marks of their respective owners.

3

Page intentionally left blank

4

Deutsche Telekom

FY 15/16 FY16/17

Q1 Q2 Q3 Q4 Q1

Mobile customers (m) 30.3 30.2 30.4 30.3 30.3

o/w Contract (m) 16.3 16.3 16.5 16.6 16.6

o/w Prepaid (m) 14.0 13.9 13.9 13.7 13.7

Contract Net Adds (000s) 104 245 196 49 8

Mobile Contract ARPU (€) 25.9 25.7 25.4 24.9 25.0

Mobile Prepaid ARPU (€) 3.4 3.5 3.4 3.5 3.5

Fixed BB customers (m) 5.5 5.6 5.7 5.8 5.9

o/w DSL (m) 2.8 2.8 2.8 2.8 2.8

o/w Cable (m) 2.7 2.8 2.9 3.0 3.1

Fixed BB Net Adds (000s) 70 67 105 134 108

TV customers (m) 7.9 7.9 7.9 7.8 7.8

Vodafone Germany: key financials

FY 14/15 FY 15/16

(€m) H1 H2 FY H1 H2 FY

Total revenue 5,335 5,342 10,667 5,308 5,318 10,626

Service revenue 4,969 4,893 9,862 4,895 4,922 9,817

EBITDA 1,719 1,670 3,390 1,736 1,726 3,462

EBITDA margin (%) 32.2 31.3 31.7 32.7 32.5 32.6

Capex 1,284 1,275 2,559 1,159 1,203 2,362

Operating FCF 566 716 1,282 157 708 866

Key financials

Organic service

revenue growth (YoY) % FY 15/16 FY 16/17

Q1 Q2 Q3 Q4 Q1

Mobile Contract (1.7) (2.6) (1.7) (0.8) (1.7)

Mobile Prepaid (12.2) (9.0) (3.8) (0.1) 1.4

Mobile incoming (6.4) (7.3) (8.1) (7.2) (4.2)

Fixed3 (0.2) 0.0 1.7 3.7 4.7

o/w DSL (5.2) (6.1) (4.6) (2.1) (0.9)

o/w Cable3 6.6 6.8 6.9 7.5 9.5

Other 12.2 6.1 5.0 18.0 16.2

Total (1.2) (1.8) (0.4) 1.6 1.6

Key performance

indicators

20%

53%

10%

12% 5% 83m

Population

€13 Mobile ARPU

Smartphone

penetration 137% Mobile

penetration

76% 33%

37%

30%

Mobile

Revenue

Fixed

revenue2

United Internet Telefonica Unitymedia

19% of Group revenue

22% of Group EBITDA

Vodafone Germany

Vodafone

Market

42

41

43 Mobile

connections1

(m)

1. incl. MVNO and IoT connections

2. excl. Wholesale Revenue, does only reflect the market based on reported figures

3. Aided by an accounting reclassification of fixed line revenue. Underlying fixed growth was +3.0% in Q1 16/17 and +2.4% in Q4 15/16; (Cable +6.5% in Q1 and +7.0% in Q4)

FY 15/16 Service Revenue

48%

5% 3%

17%

22%

5%

Mobile Contract

Mobile Prepaid

Mobile incoming

Fixed DSL

Fixed Cable

Other

Enterprise

FY 15/16 Service Revenue

75% Fixed broadband

penetration

Avg. TV MoU

per day

223

Q1 16/17 Market shares

Consumer / Other

5

Vodafone Germany:

Key messages:

Notes:

• Back to growth

• Positioning as Gigabit Company

• Leading position and strong commercial momentum in each market segment

• Investments in Project Spring and Kabel Deutschland paying off

• Differentiation through CXX

• Continued efficiency improvement to fuel growth

6

Vodafone Germany: Consumer

Consumer Image

Premium Mobile Products

Sales Channel Structure

Direct Online

Own Shops

Franchise

Inbound calls

Door to Door

Indirect Dealers

Service

Providers

Branded

Resellers

MVNO

Red S

1 GB

Red M

3 GB

Red L

6 GB

Red XL

10 GB

Red XXL

20 GB

Black

30 GB

Smart M

500 MB

300 min

Smart S

200 MB

50 min

LTE Max for all tariffs up to 375Mbit/s

Voice Flat

Roaming in EU EU, US, TR, CH

Handset Insurance

1000 mins.

International

Talk &

Text

9 ct. Min

/ SMS

Special

750MB

200 min &

VF Flot

All Net

750MB

All net

flat

CallYa PrePay

TV Packages

HD Premium Plus

19 additional HD and

SD channels

(US Sports, Music, EU

Series, etc)

Internet & Phone

Cable 32

DSL 16

Cable 400 Cable 200

DSL 100

GigaKombi: Experience all 4 starting from 19,99€

HD Premium

19 additional HD

channels

(Documentaries, Series

and Sports)

Basic TV

39 HD & 100 SD channels

Vodafone TV

39 HD & 100 SD channels

Time-shifting and recording

Video on Demand

Cable 100

DSL 50

TV Connect (for all customers without cable access)

Pay TV options

7

Consumer

Key messages:

Notes:

Mobile

• Driving profitable growth in a challenging market environment

• Growing Prepaid and Postpaid subscribers

• “More for More” ARPU enhancement initiative implemented in April: higher fee in return for LTE

Max and EU roaming

• Proactively migrating legacy customers to modern tariffs; increasing NPS and data usage

• Targeted offers in a two-tier market

• Maintaining superior pricing in the high-end driven by LTE Max, EU Roaming, and convergence

offers

• Otelo sub-brand remains competitive in low-end no frills segment

Fixed

• Truly convergent nationwide Player delivering superior combination of speed and value. Compelling

product and pricing proposal in competitive market environment

• Consistently grown Cable customers base and turned around DSL business

• The largest TV subscriber base in Germany

• Growth upside from upselling premium TV and Internet & phone products and content

8

Your personal team

Consulting, project

and service

management

End-to-End

solution-oriented

coordination

- Global Data Service platform GDSP

- Connected Products for e2e solutions

Unified communication

and workplace solutions

400.000 km fiber & coax network

National and global coverage

Enterprise product portfolio

Cloud & Hosting Security IoT solutions Unified Comms

Converged

Mobile & Fixed

Connectivity

Our experts

Fixed and mobile converged access

Tangible customer experience

with VoLTE and WiFi Calling Multi service: Voice, All IP, Internet, VPN

High performance and availability

- Private and public cloud solutions

- German data centres with enterprise grade connectivity

- Data and Voice encryption

- Cloud and fixnet security solutions

Access

Applications Unified Comms Cloud & Hosting Security

Fixed Access (xDSL, Fiber, Cable)

Mobile Access (UMTS, LTE, WLL, Femto)

Traditional Voice (ISDN/GSM) Inbound & Contact Centre Voice

Services

Data

Services

IP Voice (All IP / VoLTE)

Internet (Fixed/Mobile)

Ethernet IP VPN

(Fixed/Mobile)

IoT

Our partners

Vodafone Germany: Enterprise

Business structure

VGE

Cor-

porate Public

SME

SOHO / SE

Product Structure

Vodafone Enterprise is organised in 5 segments divided by customer size:

1. SoHo / SE: focuses on Vodafone‘s smallest Enterprise customers with SoHo

customers counting <9 FTEs and SE <50 FTEs

2. SME: focuses on medium sized Enterprise customers with 50-499 FTEs

3. Corporate: focuses on Vodafone‘s corporate customers with >500 FTEs

4. Public: focuses on public companies with at least 51% state ownership

5. VGE: focuses on multi-national companies with worldwide operations

Reference

customers

9

Enterprise

Key messages:

Notes:

• ARPU remains core challenge in Mobile, but trends are improving

• Strong fixed performance with YoY growth achieved

• One Net Business is our core differentiator in the Unified Comms market

• Dedicated Cloud & Hosting segment is building market credibility with first trophy customer wins

• Vodafone IoT with substantial potential for further growth by moving towards vertical solutions

• Strong investments in digital transformation

• Targeting NPS leadership

• Innovation: implementing a range of new services, including: • SaaS marketplace - best in class SaaS-Solutions for a broad range of industries. Bundle with connectivity

services to deliver vertical offers

• VF Total Cloud Fusion – Cloud platform for mission critical applications (SAP, Oracle) and standard applications

• NB-IOT - Delivery of a central, globally managed connectivity capability based on Low Power Wide Area (LPWA)

technology

• Cable access

• VF WiFi Calling – full integration of WiFi Voice Calls being terminated in the VF network

• VF One Net business – Fully integrated and converged unified communication and collaboration service

• VF Connected Business – Cloud based LAN service with LAN infrastructure, security, WiFi and VF Hotspot to help

customers manage their LAN and Hotspots

10

Vodafone Germany: Technology

Mobile network key performance indicators

Fixed network performance indicators

Data usage indicators

Population coverage Q1 16/17 (%)

Fixed household coverage Q1 16/17 (%)

59.1

97.5

NGN coverage ADSL coverage

Spectrum holdings

FY 15/16 FY 16/17

Q1 Q2 Q3 Q4 Q1

Base stations (000s)

23.8 24.0 24.1 24.4 24.4

High capacity backhaul (%)

89.0 89.2 90.2 90.0 90.4

Data sessions >3Mbps (%)

82 82 84 85 86

Dropped call rate (%)

0.57 0.55 0.46 0.44 0.46

Technology Image

99.6 94.8 88.9

2G 3G 4G

Frequency Holdings Renewal date

700MHz 2x10MHz 2033

800MHz 2x10MHz 2025

900 MHz 2x 10 MHz 2033

1500 MHz 1x 20 MHz 2033

1800 MHz 2x 25 MHz 2033

2.1 GHz 2x 10 MHz &

2x 5 MHz 2020 &

2025

2.6 GHz 2x 20 MHz &

1x 25 MHz 2025

FY 15/16 FY 16/17

Q1 Q2 Q3 Q4 Q1

NGA HH passed (m)

22.6 23.0 23.3 23.3 23.7

o/w Wholesale 8.9 9.3 9.6 9.6 10.0

o/w On-net 13.7 13.7 13.7 13.7 13.7

homes reached by owned NGA (%) 35 35 35 35 35

FY 15/16 FY 16/17

Q1 Q2 Q3 Q4 Q1

Mobile Data traffic (PB)

48.2 52.5 58.2 60.6 66.8

Mobile Data traffic growth (%)

3 9 11 4 10

Average SMP usage (MB) 585 633 692 774 838

11

Technology

Key messages:

Notes:

• We are future ready: a modernised and leading mobile, fixed and cable network of 24,400 Base stations

and over 400,000 km Fibre- and Coax-Network.

• Best Voice Network –according to Connect tests. Dropped Call Rate reduced by 40% since Apr. 2014.

• Superfast Networks: download speed increased by 60% since Apr. 2014, with LTE up to 375 Mbps and

cable up to 400 Mbps.

• Highly reliable mobile and cable networks: >99.7% and 99.9% availability respectively for a premium

customer experience.

• >1,400,000 WLAN Hotspots

• Gigabit-Readiness: strategic focus optimal Spectrum Utilisation, LTE Advanced (incl. NB-IoT) and Cable

Network Evolution.