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Vodafone Group Plc

2022 Summary

Welcome to our 2022 Summary

We have adopted a digital first approach to our reporting reflecting how we operate as a business. Whilst the Annual Report continues to be a core part of our reporting suite, we use a simplified format and include links to interactive online content, such as videos. This online material brings to life what we do and how we do it, and provides you with a better overall understanding of our business.

We have also introduced new summaries at the start of each key section in the Annual Report. This document (the '2022 Summary)' is comprised of these summaries only and should be read in conjunction with our complete Annual Report.

We continue to publish a separate report that summarises our progress towards meeting the recommendations of the Task Force on Climate-related Financial Disclosures ('TCFD'), as well as a comprehensive addendum that includes data on Environmental, Social and Governance ('ESG') topics.

ESG reporting

We have also reported against a number of voluntary reporting frameworks to help our stakeholders understand our sustainable business performance. Disclosures prepared in accordance with the Global Reporting Initiative ('GRI') or Sustainability Accounting Standards Board ('SASB') guidance can be found in our ESG Addendum or on investors.vodafone.com.

vodafone.com	investors.vodafone.com/sasb	investors.vodafone.com/
		esgaddendum
investors.vodafone.com/tcfd	investors.vodafone.com	investors.vodafone.com/ESG

References

The Annual Report and this 2021 Summary has been designed to aid navigation. We have cross-referenced relevant material and included navigation buttons that are 'clickable' when using the digital version of the Annual Report. Online content can be accessed by clicking links on the digital version of this Annual Report, copying the website address into an internet browser, or scanning the QR code on a mobile device.

	Read more	Click to see related								Scan or click to watch
	page reference	content online								related video content online
Contents									Contact details
01	Our strategic framework									Shareholder helpline	Media Relations
02	About Vodafone									Telephone	vodafone.com/media/contact
	[phone]
04	Financial and non-financial performance	Sustainability
06	Market and strategy									Investor Relations	vodafone.com/sustainability
08	Business model									[e-mail]	Online Annual Report
10	Purpose, sustainability and responsible								vodafone.com/investor
							vodafone.com/ar2022
	business

12 Governance at a glance

Watch our video content

Our performance

Purpose pillars

FY22 results

FY22 results

FY22 financial

Digital inclusion

Net zero

summary:

detail:

results:

Nick Read,

Nick Read,

Margherita

Chief Executive

Chief Executive

Della Valle, Chief

Financial Officer

Our digital investor briefings

Responsible business

Vodafone Business

Digital Services

Vodafone

Data privacy

Cyber security

Human rights

Responsible

& Experiences

Technology

taxation

Our governance

Jean-François

Valerie Gooding,

David Nish,

Amparo Moraleda,

van Boxmeer,

Senior Independent

Chair of the Audit

Chair of the

Chairman

Director, Workforce

and Risk Committee

ESG Committee

Engagement Lead

and Chair of the

Remuneration

Committee

• Vodafone Group Plc  Annual Report Summary 2022

Our strategic framework

Our strategy is focused on sustainable growth to drive returns

Our purpose: We connect for a better future

Inclusion for All	Planet	Digital Society
Ensuring everyone has	Reducing our	Connecting
access to the benefits	environmental	people and things
of a digital society	impacts and helping	and digitalising
	society decarbonise	critical sectors
Read more in		Read more in	Read more in
our Annual		our Annual	our Annual
Report on		Report on	Report on
pages 36 to 40		pages 41 to 44	pages 44 to 45

Our vision: A new generation connectivity and digital services provider for Europe & Africa

Our strategy: Customer commitments

Best connectivity	Leading innovation	Outstanding digital
products and services	in digital services	experiences
Our strategy: Enabling strategies
Simplified and most	Social contract	Leading gigabit
efficient operator	shaping the	networks
	digital society

Our advantage: Leading connectivity provider

Our people	Europe	Governance and
and culture	& Africa	risk management
The 'Spirit of	Two attractive regions	Strong frameworks
Vodafone'	with scale	in place
Read more in	Read more in	Read more in
our Annual	our Annual	our Annual
Report on	Report on	Report on
pages 21 to 23	pages 16 to 20	pages 59 to 115

FY22 highlights

Our financial performance demonstrates our sustainable growth, despite broader macroeconomic challenges. Our results are in line with our expectations for the year and our medium-term ambitions.

Organic service revenue growth

• Good growth throughout FY22 in both Europe and Africa
• Improving YoY trend in 10 out of 11 European markets

		FY22 +2.6%
	3.3%
		2.4%	2.7%
			2.0%
0.8%
Q4 FY21	Q1 FY22	Q2 FY22	Q3 FY22	Q4 FY22

Adjusted EBITDAaL growth

• Our highest EBITDAaL margin of last decade
• Good improvement on pre-pandemic levels

			+5.0%1
€13.9bn	€14.9bn	€14.4bn	€15.2bn
	33.1%			33.4%
	32.8%
31.9%
FY19	FY20	FY21		FY22
Note:

1. Organic growth. See page 223 of our Annual Report for more information.

ROCE inflection

• Significant ROCE step-up on pre-pandemic level
• EBITDAaL growth driving sustainable ROCE improvement

		+170bps
		6.3%	7.2%
	5.5%
5.1%
H1 FY21	H2 FY21	H1 FY22	H2 FY22

Pre-tax ROCE (LTM)

FY22 Adjusted FCF	Full year dividend
ahead of guidance	per share

€5.4bn 9.0

eurocents

Read more in our Annual Report on pages 24 to 33

2	Vodafone Group Plc
Annual Report Summary 2022

About Vodafone

A new generation connectivity and digital services provider

How we are structured

We recognise the importance of local, in-market scale and capabilities, but also drive further value from our Group scale and breadth of our footprint.

Infrastructure assets

Passive mobile	Active mobile	Fixed network
€16.2bn	>180,000	1.6m
market capitalisation1	radios2	kilometres of fibre
		and coaxial3

Shared operations

Supplier	Network & digital	Inter-network
management	operations	operations
>€600m	>€400m	>€250m
savings p.a.	savings p.a.	revenue and
		savings p.a.

Growth platforms

Digital services	Internet of Things	Financial services
>50m	150m	52.4m
Customers subscribed	IoT SIM connections	M-Pesa customers4
to a digital service	(FY21: 123 million)	(FY21: 48.3 million)

Retail & service

Where we operate and what we sell

Our retail and service operations are split across three broad business lines: Europe Consumer, Vodafone Business and Africa Consumer.

Our biggest market is Germany.

Share of service revenue
Europe	Vodafone	African
Consumer	Business	Consumer
52%	27%	16%

Europe Consumer

We provide a range of market leading mobile and fixed-line connectivity services in all of our European markets, enabling customers to reliably call, text and access data on their mobile devices, or access broadband, TV and voice services at home.

Our converged plans combine these offerings, providing simplicity and better value for our customers. Other value added services include our Consumer IoT propositions, as well as security and insurance products.

Vodafone Business

We serve private and public sector customers of all sizes with a broad range of connectivity services, supported by our dedicated global network.

We have unique scale and capabilities, and are expanding our portfolio of products and services into growth areas such as unified communications, cloud & security, and IoT.

African Consumer

We provide a range of mobile services, enabling customers to call, text and access data. The demand for mobile data is growing rapidly driven by the lack of fixed broadband access and by increased smartphone penetration.

Together with Vodacom's VodaPay super-app and the M-Pesa payment platform, we are the leading provider of financial services, as well as business and merchant services in Africa.

Our products and services

Core connectivity products and services in fixed and mobile account for the majority of our revenue. However, we are constantly expanding our portfolio into high return growth areas, such as digital services, the Internet of Things ('IoT') and financial services, that leverage and complement our core connectivity business.

Europe	Vodafone	Africa
Consumer	Business	Consumer
€20bn	€10bn	€6bn
service revenue	service revenue	service revenue

Notes:

1. Market capitalisation at 31 March 2022.
2. Group including VodafoneZiggo and Safaricom.
3. Group including Safaricom.
4. Africa including 100% Safaricom.

Service revenue

	Core connectivity	87%
	Growth platforms	13%
			Digital services	10%
			IoT	2%
			Financial services	1%

Service revenue

€38.2bn

3	Vodafone Group Plc
Annual Report Summary 2022
How we govern	How we measure success
Our business model is underpinned by our strong	We track a range of measures that reflect our financial,
governance and risk management framework.	operational and strategic progress and performance.

Governance

The Board held seven scheduled meetings this year to discuss key strategic matters, our purpose and culture, our people and stakeholder interests.

The Nominations and Governance Committee evaluates the composition and performance of the Board and ensures an appropriate balance of independence, skills, knowledge, experience and diversity.

The Audit and Risk Committee provides effective governance over the appropriateness of financial reporting of the Group, including

the adequacy of related disclosures, the performance of the internal audit function and the external auditor and oversight of the Group's systems of internal control, risk management framework and compliance activities.

The Remuneration Committee advises the Board on policies for executive remuneration and reward packages for individual Executive Directors. The Committee also oversees general pay practices across the Group.

The Environmental, Social and Governance ('ESG') Committee oversees our ESG programme, including our purpose pillars, sustainability and responsible business practices, and our contribution to the societies we operate in under our social contract.

Read more in our Annual Report on pages 80 to 92

Click or scan to watch our Chairman andNon-ExecutiveDirectors speak about their roles in short video interviews: investors.vodafone.com/videos

Financial targets

The Group provides guidance on Adjusted EBITDAaL1 and Adjusted free cash flow1.

Senior management incentive plans include the following measures: organic service revenue; adjusted EBIT; adjusted free cash flow; customer appreciation metrics; relative total shareholder return; and ESG measures.

Read more in our Annual Report on pages 110 to 112

Return on capital employed ('ROCE')

This is a key focus for the Group and reflects how efficiently we are generating profit with the capital we deploy. Our goal is for ROCE to exceed our cost of capital through consistent revenue growth, ongoing margin expansion, strong cash flow conversion, and disciplined allocation of capital.

Read more in our Annual Report on page 32

Operational metrics

We have a number of commercial metrics that are used to monitor our progress against our key strategic priorities and reflect the strong underlying momentum across the business.

Read more in our Annual Report on page 16

Risk management

Risks are not static and as the environment changes, so do risks - some diminish or increase, while new risks appear. We continuously review and improve our risk processes in order to ensure that the Company has the appropriate level of support in meeting its strategic objectives.

Our risk framework clearly defines roles and responsibilities, and sets out a consistent end-to-end process for identifying and managing risks. We have embedded the risk framework across the Group as this allows us to take a holistic approach and to make meaningful comparisons.

Our approach is continuously enhanced, enabling more dynamic risk detection, modelling of risk interconnectedness and the use of data, all of which are improving our risk visibility and our responses.

Our Board oversees principal and emerging risks, which are reported to the various management committees and the Board throughout the year. Additionally, risk owners are invited to present in-depthreviews to ensure that risks are managed within the defined tolerance levels.

Social contract

We monitor the success we have in shaping a healthier industry structure that is pro-investment, supportive of returns, and helps build a resilient, inclusive and sustainable digital society.

Read more in our Annual Report on pages 6 and 9

Sustainability metrics

Our metrics are aligned to the three pillars of our purpose and the individual initiatives that underpin each pillar.

• Inclusion for All: Rural connectivity, our commercial propositions for equality, and workplace equality.
• Planet: Our carbon footprint across our full value chain, enabling our customers to reduce their own emissions, and e-waste.
• Digital Society: Supporting SME and the digitalisation of critical sectors, such as agriculture and healthcare.

Read more in our Annual Report on pages 59 to 67

Click or scan to watch our privacy and cyber experts explain how we protect customer data and our networks: investors.vodafone.com/videos

Note:

Read more in our Annual Report on pages 34 to 45

Click or scan to watch short videos showing how we help improve digital inclusion and how we plan to reach net zero by 2040: investors.vodafone.com/videos

1. Adjusted EBITDAaL and Adjusted free cash flow are non-GAAP measures. See 'Non-GAAP measures' on page 223 of our Annual Report for more information.