Press release
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Vodafone Group Plc VodafoneThree Investor Briefing 8 October 2026 VodafoneThree ⫶ A key driver of growth and value creation “Today we are setting out in detail our strategy and growth ambitions for the UK. We are issuing new bolder financialtargets and we are outlining the execution plan we have in place to deliver these. We created VodafoneThree because we saw the opportunity to transform the UK market. To create the scale to invest. Todeliver a step change in network quality and customer experience across every region of the UK. And to build a strongerbusiness, creating sustainable long-term value. After a strong start, we now have even greater confidence in the opportunity ahead. That’s why we are upgrading our costtarget to £1 billion, with VodafoneThree set to become an increasingly important contributor to Vodafone’s growthambitions.” Margherita Della ValleGroup Chief Executive Cost target upgraded to £1 billion per annum by FY32 (previously £0.7 billion by FY30) New targets: Mid-to-high single digit Adjusted EBITDAaL growth (FY25-32 CAGR), and Operating free cash flow to more than triple by FY32 (versus FY25) A clear path to value creation and a key driver of Vodafone Group’s medium-term cash flow growth ambition Vodafone Group Plc is hosting an investor briefing later today, focused on VodafoneThree’s strategy, growth ambitions, andthe significant value creation it expects to deliver over the coming years, as we build the UK’s best network. Key highlights from the event, which will be hosted by the CEO of our European Markets, Ahmed Essam, VodafoneThree’sCEO, Max Taylor, and other members of the UK’s senior leadership team are: 1. A new era of connectivity ⫶ We will connect every community in every corner of the UK. We have strong foundations.We have the UK’s largest mobile customer base, we are #1 for customer experience, and we have the scale to invest inbuilding the UK’s best network. In our first year we have already made significant progress. Our focus is now ondelivering the significant opportunities ahead of us. 2. Building the UK’s best mobile network ⫶ We have more assets than any other UK operator and an ambitious networkrollout plan. We have moved at pace, bringing immediate benefits to customers from day one. The next stage in ourjourney is to build a next-generation 5G standalone, AI-ready network. Across the country, our 10-year £11 billioninvestment plan will enable us to build the UK’s best network, delivering an unparalleled experience for our customers. 3. Accelerating our leadership in Consumer ⫶ We are #1 in mobile and the leading challenger in fixed. We havemaintained our good commercial momentum post-merger with record low customer churn across all of our brands and growing ARPU1. We have a clear multi-brand strategy that effectively targets different segments of the market. As webuild The Nation’s Network, this will provide us with greater opportunities to differentiate and monetise our best-in-classmobile network position. We have recently launched new, market-leading propositions such as SuperMobile andVodafone TV. We also have significant opportunities for growth in broadband, fixed wireless access and convergence.VodafoneThree is the UK’s fastest growing broadband provider and has the largest fibre footprint of any operator. 4. Connecting businesses to their potential ⫶ Vodafone Business is a scaled operator with strong foundations and excitinggrowth opportunities. We support businesses of every size across the UK, from SME to public sector, with our broadrange of products and services. We are creating a simpler, more efficient business and further building on our market-leading customer experience. We are differentiating by turning our network and customer scale into a competitiveadvantage. And we are broadening our capabilities beyond core connectivity into areas such as digital services,sovereignty, security and AI, where we see attractive growth opportunities. 5. Delivering significant value creation ⫶ We have made strong progress against our cost targets. Our confidence in ourclear and detailed execution plan means we are upgrading our target to £1 billion of annual savings by FY32 (previously£0.7 billion per annum by FY30). This is driven by further savings as our network build completes and we benefit furtherfrom network rationalisation as well as the benefits of full Group ownership, which enable us to move at an even fasterpace. In addition, we see significant potential to drive additional revenue synergies from the merger. In summary, we have a clear path to delivering significant and sustainable long-term value creation, and VodafoneThree willbe a key driver of Vodafone Group’s mid-term ambition for double-digit organic growth in Adjusted Free Cash Flow. New UK financial targets:
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Annual cost saving target £1 billion per annum by FY32 (£0.8 billion p.a. by FY30) Adjusted EBITDAaL growth Mid-to-high single digit CAGR (FY25-32) Operating free cash flow2 growth Over 3x (versus FY25) Return on capital employed3 Exceeding cost of capital by FY32, materially above byFY34 Footnotes 1. ARPU – Average revenue per user2. Operating free cash flow defined as Adjusted EBITDAaL less capital additions3. Pre-tax Return on Capital Employed (including goodwill) Note to editorsA live webcast will be held at 13:00 BST on 8 October 2026 (available at vodafone.com/vodafonethreeinvestorbriefing2026).Presentation materials will be made available on our website from 12:00 BST. For more information, please contact:InvestorRelations: vodafone.com/investors ir@vodafone.co.uk MediaRelations: vodafone.com/news/media-contacts GroupMedia@vodafone.comRegistered Office: Vodafone House, The Connection, Newbury, Berkshire RG14 2FN, England. Registered in England No. 1833679A live webcast will be held at 13:00 BST on 8 October 2026. The webcast and supporting information can be accessed at vodafone.com/investors Forward-looking statements and other matters This announcement contains “forward-looking statements” within the meaning of the US Private Securities LitigationReform Act of 1995 with respect to the Vodafone Group’s financial condition, results of operations and businesses, including,but not limited to, the Vodafone Group’s plans and objectives, including the Vodafone Group’s strategy and outlook forVodafoneThree, including its network investment plans, cost and capital expenditure synergy targets and expected returns,and the development and commercialisation of new technology offerings, including artificial intelligence (AI), which aresubject to risks and uncertainties because they relate to future events. All statements other than statements of historical factare, or may be deemed to be, forward-looking statements. No statement in this presentation is intended as a profit forecast orestimate for any period; the new financial targets set out herein are targets only, reflecting the Vodafone Group’s currentexpectations and ambitions for VodafoneThree over the medium to long term. Statements of potential cost savings andsynergies relate to future actions and circumstances which, by their nature, involve risks, uncertainties and contingencies. Asa result, any cost savings and synergies referred to may not be achieved, may be achieved later or sooner than estimated, orthose achieved could be materially different from those estimated. By their nature, forward-looking statements and targets areinherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstancesthat may or may not occur in the future. There are a number of factors that could cause actual results and developments todiffer materially from those expressed or implied by these forward-looking statements and targets. A review of the reasonswhy actual results and developments may differ materially from the expectations disclosed or implied within forward-lookingstatements can be found under “Forward-looking statements” and “Principal Risks and Uncertainties” in the Vodafone GroupPlc Annual Report for the year ended 31 March 2026 and under “Forward-looking statements and other matters” in theVodafone Group Plc Q1 results for the three months ended 30 June 2026. These reports can be found atinvestors.vodafone.com. Except as otherwise stated and as may be required to comply with applicable law and regulations,Vodafone does not intend to update these forward-looking statements and targets and does not undertake any obligation to doso. This announcement also contains non-GAAP financial information, including Adjusted EBITDAaL, Adjusted EBITDAaLgrowth, operating free cash flow and return on capital employed, which the Vodafone Group’s management believes isvaluable in understanding the performance of the Vodafone Group. However, non-GAAP financial information is notuniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by othercompanies, including those in the Vodafone Group’s industry. Although these measures are important in the assessment andmanagement of the Vodafone Group’s business, they should not be viewed in isolation or as replacements for, but rather ascomplementary to, the comparable GAAP measures. About Vodafone Group everyone.connected Vodafone is a leading European and African telecoms company. We serve around 370 million mobile and broadband customers, operating networks in 17 countries with investments in afurther three and partners in over 40 more. We have capacity on more than 70 subsea cable systems – the backbone of theinternet – and we are developing a new direct-to-mobile satellite communications service to connect areas without coverage.Vodafone runs one of the world’s largest IoT platforms, with over 240 million IoT connections globally, and we providefinancial services to around 103 million customers across eight African countries – managing more transactions than anyother provider. From the seabed to the stars, Vodafone’s mission is to connect everyone. For more information, please visit www.vodafone.com follow us on X at @VodafoneGroup or connect with us on LinkedInat www.linkedin.com/company/vodafone. About VodafoneThree
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VodafoneThree is the UK's largest mobile network operator serving the fixed and mobile market, formed following themerger of Vodafone UK and Three UK in June 2025. Through an unprecedented £11 billion investment, VodafoneThree will build the UK's best network. The network will deliverreliable, quality connectivity to all nations and regions, creating as many as 13,000 jobs and laying a digital foundation forthe country's growth ambitions. VodafoneThree is the only mobile network operator with a fully funded, regulated and guaranteed network build plan,reaching 99% 5G Standalone population coverage by 2030 and 99.96% by 2034. From big cities to small towns, andeverywhere in between, the company's mission is to build the UK's best network. VodafoneThree encompasses all businesses and assets, including Vodafone UK, Three UK, VOXI Mobile, SMARTY andTalkmobile.
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