Sir Christopher Gent Chief Executive Vodafone Group Plc

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2 Sir Christopher Gent Chief Executive Vodafone Group Plc

3 Agenda Summary of Results Analysis of Results Group Funding Progress on KPIs Products and Services Outlook and Q&A Sir Christopher Gent Ken Hydon Julian Horn-Smith Sir Christopher Gent

4 Results Overview Exceeded market expectations Good turnover growth Excellent EBITDA margin improvement Strong operating profit*, PBT* and EPS* Very good proportionate EBITDA growth Outstanding free cash flow generation *Before goodwill and exceptional items

5 Statutory Highlights Sep 02 Change Group Turnover 14.9bn +67% 1 Group Operating Profit 4.6bn +37% 1 Profit Before Taxation 4.2bn +41% 1 Adjusted EPS 3.28 pence +31% 2 1 Before goodwill and exceptional items 2 Change on same period last year

6 Proportionate Highlights Sep 02 Change 1 Turnover 16.5bn +15% 2 EBITDA 6.2bn +30% Registered customers 107.5m +12% 1 Change on same period last year 2 Before exceptional items

7 Margin Improvement Proportionate Mobile EBITDA Margin* Proportionate Group EBITDA Margin* 40% 3.6 pp 39.0% 40% 4.7 pp 37.6% 30% 30% 20% 20% 10% 10% 0% 0% Sep-01 Sep-02 Sep-01 Sep-02 * before exceptional items * after exceptional items

8 Cash Flow Highlights Strong turnover Improved margins Lower capex Free cash flow of 2.9bn Capex 2.7bn; Capital efficiency 17.9% Lower group net debt of 10.7bn

9 Operational Highlights Customer Growth i Ahead of our expectations: i Better organic growth i Stake increases ARPU i Up in some key markets i In line with our expectations Rise in Data Revenues i 13.2% for year to September i 14.3% in month of September Services EBITDA Margin Performance i Better overhead management i Control over acquisition/retention costs i J-Phone 32.0% up from 20.5% Launch of Vodafone live! and Vodafone Mobile Office

10 Acquisition Highlights Agreement to acquire BT s and SBC s stakes in Cegetel for 6.3bn Management Control Pro-rata offer to Vivendi renewed at same price; offer expires end of pre-emption period: 10 Dec Stake increases: Portugal: 50.9% % Sweden: 71.1% % Buy out of minority in Vodafone AG

11 Dividend Growth % 5% 10% Dividend per Share Sep-99 Sep-00 Sep-01 Sep-02

12 Ken Hydon Group Financial Director Vodafone Group Plc

13 Statutory Results 6 months to 30 September Increase m m % Turnover 14,898 8, Adjusted EPS* (Pence) 3.28 Group operating profit* 4,640 3, Net interest payable (390) (381) Profit before tax* 4,250 3, Tax (1,602) (1,086) Goodwill amortisation (6,837) (6,697) Exceptional items 267 (4,763) Minority interests (414) (200) Loss for the period (4,336) (9,735) Basic loss per share (6.36p) (14.36p) Adjusted earnings per share* 3.28p 2.51p H1/01 H2/01 H1/02 H2/02 H1/03 Before amortisation of goodwill and exceptional items as detailed in notes 3 & 4 of the Interim Results published on 12 November 2002

14 Dividends Dividend per share history ( ) Pence per Share Growth based on: Revenue Earnings Free Cash Flow Interim dividend 10% increase Dividend of p Year ended 31 March Interim dividend Final dividend Total > 0.5bn

15 Proportionate Results Mobile Turnover 6 Months to 30 September 2002 m Total Growth % Germany 2,246 9 Italy 1, United Kingdom 2, Other Europe 3, Organic Service Revenue and Organic Average Customer Growth 13% 11% 11% 9% 8% 8% 20% 10% 10% Total Europe 9, Americas 2,907 2 Japan 2, Other Asia Pacific Middle East & Africa 238 (6) Total Mobile 15, % (1%) 4% Germany Italy United Kingdom Service revenue growth United States Japan* Average customer growth Group * Japan adjusted to rephase the March 2002 retrospective inter-operator fee reduction Proportionate presentation is not a recognised measure under UK GAAP, is not intended to replace it and is only provided as supplemental data to facilitate a more detailed understanding and assessment of the consolidated financial statements prepared in accordance with UK GAAP.

16 Proportionate Results Mobile EBITDA* 2002 m 6 Months to 30 September Total Growth % Organic Growth % Margin % Germany 1, Italy United Kingdom Other Europe 1, Total Europe 3, Americas 1, Japan Other Asia Pacific Middle East & Africa Total Mobile 6, Mobile EBITDA* Margin 41% 39.0% 39% 37% 35.4% 35.8% 35% 33.4% 33% 32.3% 31% 29% 27% 25% H1/01 H2/01 H1/02 H2/02 H1/03 * Before exceptional items Proportionate presentation is not a recognised measure under UK GAAP, is not intended to replace it and is only provided as supplemental data to facilitate a more detailed understanding and assessment of the consolidated financial statements prepared in accordance with UK GAAP.

17 Proportionate Results Other Operations Turnover 6 Months to 30 September 2002 m 2001 m Growth % - Europe Asia Total Turnover 1, EBITDA* - Europe (2) (32) N/A - Asia Total EBITDA* 176 (1) N/A Other Operations: Arcor Japan Telecom Vizzavi Cegetel * Before exceptional items Proportionate presentation is not a recognised measure under UK GAAP, is not intended to replace it and is only provided as supplemental data to facilitate a more detailed understanding and assessment of the consolidated financial statements prepared in accordance with UK GAAP.

18 Cash Flow 6 months to 30 September 2002 m 2001 m Increase % Operating cash flow 5,676 3, Capital expenditure (2,670) (1,781) 50 Licences (59) (223) (74) Operating free cash flow 2,947 1, Tax paid (154) (545) (72) Net interest paid (211) (449) (53) Dividends received & other 296 (1) N/A Other Europe 20% Analysis of Operating Cash Flow Other Mobile 3% Other 2% Germany 19% Free cash flow 2, Acquisitions (1,600) (8,593) Disposals 686 2,320 Share placement - 3,510 Group dividends (511) (486) Other (116) 90 Japan 23% United Kingdom 14% Italy 19% Net debt decrease/(increase) 1,337 (2,518)

19 Tangible Capital Expenditure Other Mobile 3% Other Europe 15% Analysis of Tangible Capital Expenditure Other Operations 16% Germany 19% Italy 11% September 2002: 2.7 billion Excludes licences Capitalised internal costs < 5% 20% on 3G Japan 27% United Kingdom 9%

20 Tangible Capital Expenditure March 2003: > 5.5 billion Savings: Rephasing Efficiencies 35% on 3G 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Analysis of Tangible Capital Expenditure Germany Italy United Kingdom 3G Other Japan Total Group

21 Net Debt 10.7 bn at 30 September % of market capitalisation 2002/3 transactions: France (41.0%) bn (subject to pre-emption) Spain (6.2%) bn 3.3x Net Debt vs Group EBITDA* ( Billions) 1.3x x x x Committed to single A credit rating H1/01 H2/01 H1/02 H2/02 H1/03 Net debt Group EBITDA* (12 months) Investment appraisal * Before exceptional items. Includes dividends received from joint ventures and associates.

22 Summary Strong growth: Service revenue Adjusted earnings per share Operating free cash flow Financial strength Returns to shareholders

23 Julian Horn-Smith Group Chief Operating Officer Vodafone Group Plc

24 Excellent Operating Performance Proportionate revenue up 15% Good customer growth Higher usage levels New services Improved customer mix Improved EBITDA margins Strong cash flow

25 Organic Proportionate Customer Growth 120,000 10% Organic Proportionate Customers (000s) 100,000 80,000 60,000 40,000 20,000 Regional Growth 8% 29% 11% 12% 2% 7% 10% 0 Sep-01 Sep-02 Northern Europe, Middle East & Africa Central Europe Southern Europe Americas Asia Pacific

26 Improved Customer Mix* 100% 80% 40% 29% 61% 60% 40% 60% 71% 20% 39% 0% H1 01/02 H2 01/02 H1 02/03 Contract Prepaid * All subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation

27 Germany Net Additions Net additions (000s) (100) (200) (300) (400) (500) (600) 49% Q3 01/02 Q4 01/02 Q1 02/03 Q2 02/03 Contract Prepaid

28 Japan Gross Additions 27% 25% 23% 26% 48% 51% J-Phone Vodafone NTT KDDI J-Phone Vodafone NTT KDDI Q1 02/03 Q2 02/03

29 US Net Customer Additions Net Additions (000s) (100) Q1 02/03 Q2 02/03 Verizon Wireless Cingular Sprint AT&T

30 Annualised Quarterly ARPU* 500 Annualised Quarterly ARPU ( ) Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Quarter ending Contract Prepaid Total * All subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation

31 Outgoing ARPU* 95 Annualised Quarterly Outgoing ARPU ( ) Q1 01/02 Q1 02/03 Q2 01/02 Q2 02/03 * Subsidiaries over 65% penetration

32 Contract Minutes and Usage* 24, Contract minutes (millions) 22, , , , , , , Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q1 02/03 Q2 02/03 Total contract minutes Minutes per contract customer * All subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation Monthly contract voice minutes per customer

33 Germany Prepaid ARPU & Usage Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q1 02/03 Q2 02/ Prepaid Annualised Quarterly ARPU ( ) Prepaid monthly minutes of use per customer Prepaid ARPU Prepaid Usage

34 Germany Year on Year movements 12% 10% 8% 6% 4% 2% 0% (2%) 9% 0% 4% Q1 02/03 Q2 02/03 12% (4%) (6%) (8%) (10%) (8%) (9%) Customers Minutes Service Revenue

35 Germany Half Year Annualised ARPU 200 9% 3% 6% Half Year Annualised ARPU ( ) H1 01/02 H1 02/ /02 ARPU Mix Uplift

36 Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q1 02/03 Q2 02/03 Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q1 02/03 Q2 02/ ARPU and Service Revenue Other Major Markets UK Italy 1, , , Annualised Quarterly ARPU ( ) Quarterly Service Revenue ( millions) Annualised Quarterly ARPU ( ) Quarterly Service Revenue ( millions) ARPU Quarterly Service Revenue ARPU Quarterly Service Revenue

37 Usage Campaigns

38 ARPU Trend* ARPU relative to month 1 105% 100% 95% 90% 85% 80% 75% 70% Japan Germany UK Italy Sept-02 Dec-01 Aug-01 Mar-01 65% 60% Months since 50% penetration level reached Germany Japan UK Italy *Slide represents comparative performance of Japan with the largest controlled networks in Europe. Month 1 represents ARPU when 50% mobile penetration of the market is reached

39 160% J-Phone Vodafone Relative ARPU of voice and data users* 150% 140% 130% 152% 120% 110% 100% 116% 90% 80% 100% 70% 60% 78% Voice only users Average of all users Web and Mail users Packet users * J-Phone billing data for September 2002, Tokyo area. Analysis based on customer revenue (i.e. excludes incoming revenue).

40 52% SMS Penetration and Customer Usage* 78 SMS Penetration 50% 48% 46% 44% 42% SMS Usage per Customer per Month 40% Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q1 02/03 Q2 02/03 60 Penetration Usage per active customer * All subsidiaries excluding Japan due to different services offerings

41 Japan Handset Penetration 100% 90% Penetration of customer base 80% 70% 60% 50% 40% 30% 20% 10% 0% Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Sha-mail and Movie Sha-mail capable handsets Non camera capable handsets

42 % Non Voice Revenue September 2002* 20% Japan Increase Sept 2001 to Sept % 16% Germany 2.1% 14% UK 2.5% 10% Italy 1.8% 14% Group* 3.9% 0% 5% 10% 15% 20% 25% September 2001 September 2002 * All subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation

43 Churn Annualised Quarterly Churn* 30% Annualised Quarterly Churn % 25% 20% 15% Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Quarter ending Contract Prepaid Total * All subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation

44 Acquisition and Retention Costs Acquisition Cost per Gross Addition* Annualised Retention Cost per Customer* Acquisition cost per gross addition ( ) Annualised Retention Cost per Average Customer ( ) Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Quarter ending 0 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02 Sep-02 Quarter ending Contract Prepaid Total Contract Prepaid Total * All subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation

45 Subsidiary Customer Base Costs* Acquisition and Retention Net Costs ( m) % 14% 12% 10% 8% 6% 4% 2% % Statutory Turnover (Mobile) 0 Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q Q SRC SAC % Statutory Turnover (Mobile) 0% *All mobile subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation. Amounts stated net of handset revenues, connection and upgrade fees.

46 Cost per Upgrade* 140 1,750 Upgrade costs per upgrade ( ) ,500 1,250 1, Volume of upgrades ('000) 0 Q1 01/02 Q2 01/02 Q3 01/02 Q4 01/02 Q1 01/03 Q2 01/ Cost per Upgrade Upgrades * All subsidiaries excluding Japan, where the loyalty programme is currently being revamped

47 Operating Expenses as % Statutory Turnover* 25.0% % Statutory Turnover (Mobile) 24.5% 24.0% 23.5% 23.0% 22.5% 5% decrease 22.0% H1 01/02 H1 02/03 *All mobile subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation. Operating expenses comprise sales and administration costs together with network operating, leased line and customer care costs.

48 1,900 Customers per FTE* 50% 1,850 1,800 40% Customers per FTE 1,750 1,700 1,650 30% 20% Payroll as % overheads 1,600 10% 1,550 Q Q Q Q Q Q % Customers per FTE Payroll as % overheads * All subsidiaries. For comparability purposes Japan is included for periods prior to its consolidation

49 Synergy Benefits Purchasing Infrastructure Handsets Product development & advertising Benchmarking & best practice Ahead of FY 2003 Mannesmann synergy target year to date

50 New Service Propositions CONSUMER BUSINESS USER Vodafone Mobile Office

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52 Vodafone Mobile Office Vodafone Network ready GPRS Data Card Kit

53 Prepaid Roaming

54 Largest Global Mobile Brand : : : UK UK : Portugal Portugal : : Australia Australia Spain Spain New Zealand New Zealand Netherlands Netherlands Italy Italy :: Japan Japan : : Denmark Denmark Finland Finland Kuwait Malta Malta Ireland Ireland Hungary Hungary Greece Greece Albania Fiji Albania Fiji Sweden Sweden Germany Egypt Germany Egypt

55 Conclusion Key operating measures performed ahead of expectations Strong brand and service offering give unique market differentiation Compelling platform for the future

56 Sir Christopher Gent Chief Executive Vodafone Group Plc

57 Impact of France Increase customer numbers Increase turnover Increase EBITDA Increase free cash flow EPS pre goodwill accretive

58 Revenue Outlook 2H 2003 Sustain organic growth from 1H Incremental stake increase in Spain Net customer growth > 10% on last year Improvement in customer mix Improvement in activity Increase voice and data usage ARPU continuing to rise in some key markets Double digit proportionate revenue growth

59 Effect of New Data Services Vodafone live! and Vodafone Mobile Office Impact in 2H 2004 Reach a critical mass of customers Networking effect of mobile to mobile

60 EBITDA Margin Outlook 2H 2003 Full year up on last year s 35.6% margin 2H 03 should be > 2H 02 s 35.8% margin 2H 03 < 1H 03 Impact of launch of new services Don t expect increased acquisition or retention costs Incoming rate reductions in some markets Appreciation of Pound

61 Business Outlook 2H 2003 Increase in depreciation Opening 3G network in Japan Incremental capex Operating profit down on 1H 03 but significantly up on 2H 02 European 3G networks to open in 2003 Capex > 5.5bn Strong free cash flow

62 Transactions Outlook No significant transactions envisaged Continue to increase stakes in quoted subsidiaries Final stage of Spanish put expected Possible transaction in France

63 Expected Outlook FY 2004 Average customer growth > 10% Continued rise in ARPU in some key markets Double digit proportionate revenue growth Modest margin improvement Proportionate EBITDA growth > 15% Good progress on increasing EPS Similar capex level to FY 2003, improving efficiency Impact of new data environments

64 Conclusion Transition to new growth environment Financial performance better than expectations Convinced of long-term revenue growth opportunities Good year-on-year growth Very confident in future prospects

65 Forward-Looking Statements This presentation, including the speeches being made today, contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the Group s financial condition, results of operations and businesses and certain of the Group s plans and objectives with respect to these items. In particular, forward-looking statements include statements with respect to Vodafone s expectations as to launch and roll-out dates for products and services, including, for example, 3G services, Vodafone live! and Vodafone Mobile Office; the ability to integrate our operations throughout the Group in the same format and on the same technical platform; the development and impact of new mobile technology, including the expected benefits of GPRS, 3G and other services and demand for such services; the completion of Vodafone s brand migration programme; growth in customers and usage, including improvements in customer mix; future performance, including turnover, ARPU, EBITDA, cash flows, costs, capital expenditures and improvements in margin, non-voice services and their revenue contribution; the ability to realise synergies through cost savings, revenue generating services, benchmarking, and operational experience; future acquisitions, including increases in ownership in existing investments and pending offers for investments; mobile penetration rates; expectations with respect to long-term shareholder value growth; our ability to remain the mobile market leader, overall market trends and other trend projections. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as anticipates, aims, could, may, should, expects, believes, intends, plans or targets. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the following: changes in economic or political conditions in markets served by operations of the Group that would adversely affect the level of demand for mobile services; greater than anticipated competitive activity requiring changes in pricing models and/or new product offerings or resulting in higher costs of acquiring new customers or providing new services, or slower customer growth or reduced customer retention; the impact on capital spending from investment in network capacity and the deployment of new technologies, or the rapid obsolescence of existing technology; slower customer growth or reduced customer retention; the possibility that technologies, including mobile internet platforms, and services, including 3G services, will not perform according to expectations or that vendors performance will not meet the Group s requirements; changes in the projected growth rates of the mobile telecommunications industry; the Group s ability to realise expected synergies and benefits associated with 3G technologies, the integration of our operations and those of recently acquired companies, the completion of the Group s brand migration programme and the consolidation of IT systems; future revenue contributions of both voice and non-voice services offered by the Group; lower than expected impact of GPRS, 3G and Vodafone live! and Vodafone Mobile Office on the Group s future revenues, cost structure and capital expenditure outlays; the ability of the Group to harmonise mobile platforms and any delays, impediments or other problems associated with the roll-out and scope of 3G technology and services and Vodafone live! and Vodafone Mobile Office in new markets; the ability of the Group to offer new services and secure the timely delivery of high-quality, reliable GPRS and 3G handsets, network equipment and other key products from suppliers; greater than anticipated prices of new mobile handsets; the ability to realise benefits from entering into partnerships for developing data and internet services and entering into service franchising and brand licensing; the possibility that new, unexpected strategic opportunities may arise in the next two to three years, the pursuit of which could be in the best interests of Vodafone s shareholders and that future acquisitions that we believe to be in the best interests of Vodafone s shareholders may have a negative short or medium-term impact on one or more of the measurements of our financial performance; any unfavorable conditions, regulatory or otherwise, imposed in connection with pending or future acquisitions or dispositions; changes in the regulatory framework in which the Group operates, including possible action by the European Commission regulating rates the Group is permitted to charge; the Group s ability to develop competitive data content and services which will attract new customers and increase average usage; the impact of legal or other proceedings against the Group or other companies in the mobile telecommunications industry; changes in exchange rates, including particularly the exchange rate of the pound to the euro, US dollar and the Japanese yen; the possibility that, in connection with the agreement to purchase BT and SBC s interests in Cegetel, Vivendi will pre-empt our offer on one or both stakes or will not comply with the Cegetel shareholders agreement or delay its compliance or interpose obstacles thereby delaying significantly our ability to gain control of the management of Cegetel or influence its strategic or value generative decisions or otherwise limit the Group s ability to realise benefits of increased ownership, and that, in connection with the Group s offer to Vivendi for its stakes in Cegetel, Vivendi may decline the Group s offer; and the risk that, upon containing control of certain investments, the Group discovers additional information relating to the businesses of that investment leading to restructuring charges or write-offs or with other negative implications. Furthermore, a review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found under Risk Factors on pages 29 and 30 of Vodafone s Annual Report & Accounts and Form 20-F for the year ended 31 March All subsequent written or oral forward-looking statements attributable to the Company or any member of the Group or any persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Neither Vodafone nor any of its affiliates intends to update these forward-looking statements.

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