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Vodafone Group Public Limited Company Company Profile Publication Date: 29 Oct 2010 www.datamonitor.com Europe, Middle

Vodafone Group Public Limited Company

Company Profile

Publication Date: 29 Oct 2010

www.datamonitor.com

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Vodafone Group Public Limited Company

ABOUT DATAMONITOR

Vodafone Group Public Limited Company ABOUT DATAMONITOR Datamonitor is a leading business information company specializing

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Vodafone Group Public Limited Company

TABLE OF CONTENTS

TABLE OF CONTENTS

Public Limited Company TABLE OF CONTENTS TABLE OF CONTENTS Company Overview 4 Key Facts 4 Business

Company Overview

4

Key Facts

4

Business Description

5

History

8

Key Employees

12

Key Employee Biographies

13

Major Products and Services

21

Revenue Analysis

22

SWOT Analysis

24

Top Competitors

30

Company View

31

Locations and Subsidiaries

35

Vodafone Group Public Limited Company

Company Overview

COMPANY OVERVIEW

Public Limited Company Company Overview COMPANY OVERVIEW Vodafone Group (Vodafone) is one of the world ’

Vodafone Group (Vodafone) is one of the world s leading providers of mobile telecom services. The group provides mobile voice and data communication services to consumers and enterprise customers. The group has global operations spanning Europe, the Middle East, Africa, Asia Pacific, and the US. It is headquartered in Berkshire, the UK and employs 84,990 people.

The group recorded revenues of £44,472 million ($70,992.4 million) during the financial year ended March 2010 (FY2010), an increase of 8.4% over FY2009. The operating profit of the group was £9,480 million ($15,133.3 million) in FY2010, an increase of 61.9% over FY2009. Its net profit was £8,645 million ($13,800.4 million) in FY2010, compared to net profit of £3,078 ($4,913.5 million) in

FY2009.

KEY FACTS

Head Office

Vodafone Group Public Limited Company Vodafone House The Connection Newbury Berkshire RG14 2FN GBR

Phone

44

1635 33 251

Fax

44

1635 45 713

Web Address

http://www.vodafone.com

Revenue / turnover (GBP Mn)

 

44,472.0

Financial Year End

March

Employees

 

84,990

London Stock

VOD

Exchange Ticker

Vodafone Group Public Limited Company

Business Description

BUSINESS DESCRIPTION

Limited Company Business Description BUSINESS DESCRIPTION Vodafone Group (Vodafone) provides a range of communications

Vodafone Group (Vodafone) provides a range of communications services across the globe. The group provides mobile voice, messaging, data, and fixed broadband services. It has a significant presence in Europe, the Middle East, Africa, Asia Pacific and the US through its subsidiaries, joint ventures, associates and related investments. The group has equity interests in over 30 countries and over 40 partner markets worldwide. The group's mobile subsidiaries operate under the brand name: Vodafone, while its associate in the US operates as Verizon Wireless. As of FY2010, Vodafone had 341.1 million customers worldwide, as calculated on a proportionate basis.

The group operates through a single reportable business segment: providing communications services and products. Its operations are organized into three geographic segments: Europe; Africa and Central Europe; and Asia Pacific and Middle East.

Vodafone Group's Europe segment includes its principal mobile subsidiaries located in Germany, Spain and the UK, principal joint venture in Italy, as well as the group's principal fixed line telecom business. Other businesses in the European region comprise Albania, Greece, Ireland, Malta, the Netherlands and Portugal, as well as its associated undertaking in France.

The group's mobile subsidiaries in Europe and the joint venture in Italy operate under the brand

name 'Vodafone'. The group's fixed line communication businesses operate as Vodafone , Arcor ,

Tele2 and TeleTu' and associated undertaking in France operates as SFR and Neuf Cegetel .

The Africa and Central Europe segment includes the group's subsidiary operations in the Czech Republic, Hungary, Romania, Turkey, Egypt, Ghana, Democratic Republic of Congo, Tanzania, Mozambique, Lesotho, and South Africa. It also includes joint venture in Poland and associated undertaking in Kenya.

Vodafone s subsidiaries in the Africa and Central Europe region operate under the Vodafone ,

Vodacom and Gateway brands. Vodacom refers to the group s interest in Vodacom Group

(Vodacom) in South Africa and its subsidiaries, including its operations in the Democratic Republic of Congo, Lesotho, Mozambique and Tanzania. It also includes its Gateway services and business network solutions subsidiaries which have customers in more than 40 countries in Africa. Vodafone s joint venture in Poland operates as Plus and the associate in Kenya operates as Safaricom .

The Asia Pacific and Middle East segment includes its subsidiaries in India, Egypt, Qatar, and New Zealand; joint venture in Australia and Fiji; and investments in China and India. Its subsidiaries in the region operate under the brand: Vodafone. The group's subsidiaries and joint venture in Fiji operate under the Vodafone brand and its joint venture in Australia operates under the brands

Vodafone and 3 . In September 2010, Vodafone signed an agreement to sell its entire 3.2% interest in China Mobile. As of September 2010, the group holds a 4.4% stake in Bharti Airtel.

Vodafone Group Public Limited Company

Business Description

Vodafone Group Public Limited Company Business Description Vodafone Group's other operations includes its operations

Vodafone Group's other operations includes its operations in the US, Verizon Wireless. Verizon Wireless, one of the leading mobile telecom service providers in the US, is a joint venture between the group and Verizon Communications with shareholdings of 45% and 55%, respectively.

Vodafone provides a range of products and services, including voice, messaging, data and fixed line solutions and devices.

The group offers mobile handsets in partnership agreements with leading companies, including RIM, Samsung and Google. It also offers Vodafone branded handsets. Voice is the group's core service offered to customers. Voice services incorporate revenue for national, international and roaming calls. The group offers messaging services including short message service (SMS) and multi media message (MMS) both on mobile handsets and various other devices.

Vodafone provides a range of data products, including PC connectivity, internet services, applications and roaming. PC connectivity services, available through Vodafone Mobile Broadband devices and certain handsets, provide mobile internet access for laptop, netbook and PC users. The group s internet services enable users to access the internet on their mobile handset. Applications include email services with real time handheld access to email, calendar, address book and other applications. Data roaming allows customers to use Vodafone s services on a mobile network when travelling abroad.

The group also offers fixed broadband, provided mainly through DSL technology, and fixed line voice, which enables consumer and enterprise customers to make fixed line voice calls using Vodafone as their total communications provider. The group also provides a range of value added services, including Vodafone 360, Vodafone Money Transfer, and other applications, to customers.

Vodafone 360 is a new internet service for mobile, PC and Mac. It brings phone, email, chat and social network contacts together in one place. Vodafone 360 provides customers with access to games, music and thousands of applications as well as browsing the internet. The group s range of total communications solutions provides customers with integrated office and mobile voice and data services, such as Vodafone Always Best Connected, an internet connection management software tool which manages connections across all network connection types including Mobile Broadband, Wi-Fi and LAN. It also offers Vodafone PC Backup and Restore, which enables users to remotely store data securely and automatically via their internet connection.

The group offers total communications solutions for a range of enterprise customers from small businesses to large multinational companies. Its enterprise service offerings include: Vodafone One Net, Vodafone Unified Communications, business managed services, and machine-to-machine (M2M) offerings.

Vodafone One Net brings together fixed and mobile communications in one system. It offers users with one number for their desk phone and mobile, and one voicemail box for their messages. Vodafone Unified Communications, an integrated communications solution in partnership with Microsoft, provides a customer with just one interface for all of their communications, enabling employees to

Vodafone Group Public Limited Company

Business Description

Vodafone Group Public Limited Company Business Description access emails, share documents and files, access calendars,

access emails, share documents and files, access calendars, hold web and video conferences and exchange instant messages from any location and using any device.

Business managed services provide fully managed solutions which bring together every aspect of a customers telecommunications infrastructure, both fixed and mobile, into a single management view. Services include logistics, cost control, and security and online management portals offering single-sign-on. Vodafone supports M2M solutions ranging from location monitoring of vehicles and remote patient monitoring through to supporting real-time secure payments and providing real-time inventory reports for retailers, corporate and multinational corporate (MNC) segments.

In addition, Vodafone provides mobile internet bundles for smartphones, mobile email (BlackBerry, Microsoft ActiveSync and Vodafone Email Plus) and mobile broadband via a range of devices, such as the Vodafone Mobile Wi-Fi, a portable mobile broadband powered Wi-Fi hub, and USB dongles, embedded laptops and netbooks.

Vodafone Group Public Limited Company

History

HISTORY

Vodafone Group Public Limited Company History HISTORY Vodafone Group (Vodafone) was formed in 1984 as Racal

Vodafone Group (Vodafone) was formed in 1984 as Racal Strategic Radio, as a subsidiary of Racal Electronics. The group changed its name to Racal Telecommunications Group in 1985. In the same year, analogue mobile network was launched, with the first call being made from London to Newbury. It was the first cellular network launched in the UK.

The license prohibited the network from selling directly to the public, hence Vodac, its wholly owned subsidiary, was launched in 1984 to act as a service provider for the network. By the end of 1986, the group had 63,000 customers, and in 1987, Vodafone was acknowledged as the largest mobile communications group in the world. In 1988, the group changed its name to Racal Telecom and its 20% ordinary share capital was floated on the London and New York Stock Exchanges.

In 1991, the group fully demerged from Racal Electronics and became an independent company, and changed its name to Vodafone Group.

The group continued with its expansion plans, and in 1993 opened the first High Street Vodafone Center. International partnerships were also made, and as a result, Vodafone Group International was formed to acquire licenses and supervise overseas interests. In the next two years, international links continued to develop with interest in network consortia in the Netherlands, Hong Kong, Germany and France. In 1996, it became the first group to market pre-pay mobile service packages, which changed the mobile market considerably.

After acquiring small interests abroad, the group focused on mergers and acquisitions in order to expand. To continue global expansion, Vodafone AirTouch was formed as a result of the merger between Vodafone and AirTouch Communications of the US in 1999. However, the group reverted to its former name, Vodafone Group, in 2000. It also acquired the German group, Mannesmann, a move which doubled the size of Vodafone and improved its dominant position in the European market. The European Union launched an investigation on the acquisition of Mannesmann. The Commission's authorization of the acquisition was subject to the sale of its stake in, Orange, an Austrian mobile operator, which it eventually sold to France Telecom.

During 2001, Vodafone acquired stakes in Grupo Iusacell, Japan Telecom, Swisscom Mobile, J-Phone and Airtel. In the following year, the group sold its stakes in Atecs Mannesmann, Ruhrgas and Telematik; and acquired stakes in Cegetel and Vivendi's stake in Vizzavi.

In 2003, the group sold its 34.5% stake in Group Iusacell to Movil Access, and indirect 20.76% interest in RPG Cellular Services, a regional operator in Chennai, India. In the same year, Vodafone acquired Singlepoint (4U), a wholly-owned subsidiary within the Caudwell Group. Subsequently, Vodafone and Singapore's Mobile One (M1) signed a new Partner Network Agreement, making M1 Vodafone's exclusive partner in Singapore and its first partner in the Asia-Pacific region.

Vodafone Group Public Limited Company

History

Vodafone Group Public Limited Company History Vodafone entered a joint venture to create a mobile top-level

Vodafone entered a joint venture to create a mobile top-level domain with Microsoft, Nokia, 3, GSM Association, HP, Orange, Samsung Electronics, and Sun Microsystems in 2004. It also completed the merger of Vodafone K.K. and Vodafone Holdings K.K. Subsequently, the group reached an agreement with Vodacom, a South African mobile operator, to market Vodafone's global services. In the same year, it launched Vodafone live (with 3G) across 13 countries namely Austria, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, Portugal, Spain, Sweden, Switzerland and the UK.

Verizon Wireless, a joint venture of Vodafone Group and Verizon Communications, completed the purchase of NextWave's PCS spectrum licenses, in 23 markets around the US in 2005. In the same year, the group acquired MobiFon (Romania) and Oskar Mobile (Czech Republic), and a 10% stake in India-based Bharti Tele-Ventures for $1.5 billion.

The group completed the disposal of its 100% interest in Vodafone Sweden to Telenor Mobile Holding in 2006. In the same year, it sold its 97.7% holding in Vodafone K.K. to SoftBank. Subsequently, Vodafone acquired Telsim Mobil Telekomunikasyon Hizmetleri (Turkey) and iHug. In 2007, the group acquired Hutchison Telecommunications' interests in Hutchison Essar for $10.9 billion. Subsequently, the group acquired Tele2's operation in Italy and Spain.

In 2008, Vodafone collaborated with Research In Motion (RIM) for the development of Vodafone consumer services for the BlackBerry platform. In the same year, the group extended its partner market agreement with mobilkom austria group to Serbia, where Vodafone would introduce a range of Vodafone-branded products and services through mobilkom austria's subsidiary, VIP mobile. Subsequently, the group entered into an agreement with Apple to sell the iPhone in ten of its markets around the globe, including Australia, the Czech Republic, Egypt, Greece, Italy, India, Portugal, New Zealand, South Africa, and Turkey.

Vodafone and Entel PCS signed a partner market agreement, a strategic alliance to introduce a range of Vodafone products and services for Entel PCS customers in the Republic of Chile in 2008. Subsequently, Vodafone acquired 100% of ZYB, a privately-owned company based in Denmark which operates a social networking and online management tool enabling mobile phone users to back-up and share their handsets' contact and calendar information online. During the same year, Vodafone increased its stake in Arcor to 100%.

In 2008, the group acquired a 70% stake in Ghana Telecommunications Company), a leading telecommunications operator in Ghana, from the Government of Ghana. In the same year, Vodafone entered into an agreement with Dell to offer Dell's Inspiron Mini 9 ultra-mobile device with built-in mobile broadband, exclusively through Vodafone stores and online, and directly from Dell, in key European markets. Subsequently, Vodafone and Mobile TeleSystems, the largest mobile phone operator in Russia and the CIS, entered into a strategic, non-equity partnership to provide customers with communications services and to collaborate jointly on future technological developments.

In January 2009, Vodafone Europe completed the acquisition of Wayfinder Systems, one of the leading providers of innovative location based services, which focuses on combining best practice

Vodafone Group Public Limited Company

History

Vodafone Group Public Limited Company History of technology and ease-of-use. Subsequently, Verizon Wireless acquired

of technology and ease-of-use. Subsequently, Verizon Wireless acquired Alltel, one of the largest mobile operators in the US, for $28.1 billion in cash and assumed debt.

In the following month, Vodafone and Hutchison Telecommunications (Australia), a listed subsidiary of Hutchison Whampoa, entered into an agreement to merge their telecommunications businesses in Australia, Vodafone Australia and Hutchison 3G Australia, respectively, to form a 50-50 joint venture, VHA. Subsequently, China Mobile, Verizon Wireless and Vodafone announced that they have taken significant steps in developing the next-generation technology LTE as a global radio access technology.

Telefonica and Vodafone announced a wide-ranging strategic program to share mobile network assets across selected European operations in March 2009. Subsequently, Vodafone and dtac, one of Thailand's leading telecom operators, entered into partner market agreement.

In the following month, Verizon Wireless announced plans to join the Joint Innovation Lab (JIL) established by China Mobile, Softbank and Vodafone to create the largest global platform for mobile developers. In the same month, Vodafone selected India's OnMobile, a provider of value added services, to provide ring back tones in emerging markets.

The merger of Vodafone Australia and Hutchison 3G Australia was completed in June 2009. In the same month, Vodafone Global Enterprise, the division of Vodafone which manages the communications needs of the largest multinational companies worldwide, launched Vodafone telecoms management, a new service which combines and simplifies the management of fixed and mobile telecoms.

In July 2009, the group plans to launch a global Machine to Machine (M2M) service platform to help companies deploy and manage large, wireless M2M projects. In the same month, Azerfon, one of the fastest growing mobile operators in Azerbaijan and Vodafone formed a non-equity partnership to provide customers with communications services and to collaborate jointly on future technological developments. Subsequently, Vodafone-Panafon Hellenic Telecommunications (Vodafone Greece) entered into a strategic partnership with DSL provider, Hellas Online Electronic Communications (HOL). As part of the partnership, Vodafone Greece will acquire an 18.5% equity interest in HOL and in exchange Vodafone Greece will contribute its existing fixed line DSL assets into HOLs business. Also, Vodafone Greece and HOL will jointly market Vodafone s mobile products and services and HOLs fixed line DSL and telephony services on an exclusive basis.

Vodafone launched the Vodafone Mobile Broadband Hotspot in Germany, Romania and Spain in September 2009. In the same month, the group signed a deal with Warner Music to offer its customers over-the-air access to the music catalogue in DRM-free format. Subsequently, the group introduced Vodafone 360, a new suite of internet services for the mobile and PC.

In the following month, Vodafone Roaming Services and United Hubbing, a leading provider of Roaming Hubbing Services and Solutions to the GSM marketplace, entered into a Roaming Hub peering agreement to extend roaming services across the globe. Subsequently, the group formed

Vodafone Group Public Limited Company

History

Vodafone Group Public Limited Company History a strategic partnership with Decho, a wholly owned subsidiary of

a strategic partnership with Decho, a wholly owned subsidiary of EMC, to develop a range of cloud-based services for both business customers and consumers.

Vodafone and Chunghwa Telecom, the leading telecoms operator in Taiwan, signed a non-equity Partner Market agreement to provide customers with communications services and enhanced roaming arrangements in November 2009. In the following month, Vodafone agreed to acquire Borusan Telekom, an enterprise focused provider of fixed voice and data services in Turkey.

In February 2010, Vodafone Global Enterprise signed a four-year deal with Oracle to manage its mobile service needs in its Europe, Middle East and Africa (EMEA) region. In the same month, Vodafone, Verizon Wireless and nPhase, a Verizon Wireless/Qualcomm Joint Venture, formed a strategic alliance aimed at increasing the adoption of global M2M deployments by simplifying the remote management and monitoring of devices spread across both European and the US networks. Subsequently, the group s subsidiary, Vodacom South Africa, launched M-PESA, mobile money transfer service, in South Africa.

Vodafone Global Enterprise won a five year contract to provide Deutsche Post DHL (DPDHL) with

a Mobile voice and data solution across 15 countries in the Asia Pacific markets in March 2010. In

the same month, the group closed its Wayfinder Systems subsidiary, headquartered in Malmo, Sweden. Subsequently, Vodafone Global Enterprise won the contract to provide DPDHL with a fully managed MPLS network in 67 countries, connecting over 400 sites across Eastern Europe, Middle East and Africa. Also, in the same month, TDC and Vodafone extended their strategic Nordic Partnership to include Sweden and Norway, in addition to an existing agreement covering Denmark.

In April 2010, the group announced that it will bring Microsoft KIN, a new Windows Phone designed specifically for people who are actively navigating their social lives, exclusively to Europe in Autumn 2010. In the same month, Vodafone Global Enterprise launched Vodafone Mobile Recording, a new service to record all incoming and outgoing mobile calls and texts, to aid compliance and improve risk management in the finance sector.

Vodafone secured 2x5 MHz of 3G spectrum in nine circles in the Indian auction for a total price of £1.74 billion ($2.8 billion) in May 2010. In August 2010, the group launched its new Digital Living Network Alliance (DLNA) certified Mobile Wi-Fi device, the R201, which enables five Wi-Fi enabled devices to simultaneously share digital content which a customer has stored on the device, and access the internet via a Vodafone Mobile Broadband connection.

In September 2010, Vodafone signed an agreement to sell its entire 3.2% interest in China Mobile. In the same month, the group announced new organization structure with two operating regions:

Europe, comprising all of the existing controlled businesses in Europe, plus the Czech Republic, Hungary, Romania and Turkey; and Africa, Middle East and Asia Pacific, including all emerging economies in Africa, the Middle East and Asia, plus Australia, New Zealand and Fiji.

Vodafone Group Public Limited Company

Key Employees

KEY EMPLOYEES

Group Public Limited Company Key Employees KEY EMPLOYEES Name Job Title Board Compensation Vittorio

Name

Job Title

Board

Compensation

Vittorio Colao

Chief Executive Officer

Executive Board

2668000

GBP

Andy Halford

Chief Financial Officer

Executive Board

1737000

GBP

Michel Combes

Chief Executive Officer, Europe Region

Executive Board

1828000

GBP

Stephen Pusey

Group Chief Technology Officer

Executive Board

1308000

GBP

John Bond

Chairman

Non Executive Board

578000

GBP

John Buchanan

Deputy Chairman

Non Executive Board

155000

GBP

Alan Jebson

Director

Non Executive Board

146000

GBP

Samuel Jonah

Director

Non Executive Board

140000

GBP

Nick Land

Director

Non Executive Board

135000

GBP

Anne Lauvergeon

Director

Non Executive Board

110000

GBP

Luc Vandevelde

Director

Non Executive Board

130000

GBP

Anthony Watson

Director

Non Executive Board

110000

GBP

Philip Yea

Director

Non Executive Board

110000

GBP

Wendy Becker

Group Chief Marketing Officer

Senior Management

 

Warren Finegold

Group Strategy and Business Development Director

Senior Management

 

Matthew Kirk

Group External Affairs Director

Senior Management

 

Terry Kramer

Regional President - Vodafone Americas

Senior Management

 

Morten Lundal

Chief Executive Officer, Africa and Central Europe Region

Senior Management

 

Rosemary Martin

Group General Counsel and Company Secretary

Senior Management

 

Nick Read

Chief Executive Officer, Asia Pacific and Middle East Region

Senior Management

 

Ronald Schellekens

Group Human Resources Director

Senior Management

 

Vodafone Group Public Limited Company

Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Vittorio Colao

Board: Executive Board Job Title: Chief Executive Officer Since: 2008 Age: 48

Board Job Title: Chief Executive Officer Since: 2008 Age: 48 Mr. Colao has been the CEO

Mr. Colao has been the CEO at Vodafone since 2008. He joined the group s Board in 2006 as CEO, Europe and Deputy CEO. Mr. Colao spent the early part of his career as a Partner in the Milan office of McKinsey working on media, telecommunications and industrial goods and was responsible for recruitment. In 1996, he joined Omnitel Pronto Italia, which subsequently became Vodafone Italy, and he was appointed CEO in 1999. Mr. Colao was then appointed Regional CEO, Southern Europe at Vodafone in 2001, became a Member of the Board in 2002 and was appointed to the role of Regional CEO for Southern Europe, Middle East and Africa for Vodafone in 2003. In 2004, he left the group to join RCS MediaGroup, the leading Italian publishing company, where he was the CEO until he rejoined Vodafone. Mr. Colao also serves on the International Advisory Board at Bocconi University, Italy.

Andy Halford

Board: Executive Board Job Title: Chief Financial Officer Since: 2005 Age: 51

Mr. Halford has been the Chief Financial Officer at Vodafone since 2005. He joined the group in 1999 as Financial Director for Vodafone Limited, the UK operating company, and in 2001 he became Financial Director for Vodafone s Northern Europe, Middle East and Africa region. In 2002, Mr. Halford was appointed Chief Financial Officer at Verizon Wireless in the US and is currently a Member of the Board of Representatives at the Verizon Wireless partnership. Prior to joining Vodafone, he was Group Finance Director at East Midlands Electricity.

Michel Combes

Board: Executive Board Job Title: Chief Executive Officer, Europe Region Since: 2009 Age: 48

Vodafone Group Public Limited Company

Key Employee Biographies

Group Public Limited Company Key Employee Biographies Mr. Combes has been the CEO, Europe Region at

Mr. Combes has been the CEO, Europe Region at Vodafone since 2009. He joined the group in 2008. Mr. Combes began his career at France Telecom in 1986 in the External Networks Division and then moved to the Industrial and International Affairs Division. After being technical advisor to the Minister of Transportation from 1991 to 1995, Mr. Combes served as the Chairman and CEO at GlobeCast from 1995 to 1999. He was the Executive Vice President at Nouvelles Frontieres Group from 1999 until the end of 2001 when he moved to the position of CEO at Assystem-Brime, a company specializing in industrial engineering. Mr. Combes returned to France Telecom Group in 2003 as the Senior Vice President of Group Finance and Chief Financial Officer. Until 2006, he was the Senior Executive Vice President, in charge of NExT Financial Balance and Value Creation and a Member of the France Telecom Group Strategic Committee. From 2006 to 2008, Mr. Combes also served as the Chairman and CEO at TDF Group. He is the Chairman of the Supervisory Board at Assystem in France.

Stephen Pusey

Board: Executive Board Job Title: Group Chief Technology Officer Since: 2009 Age: 48

Mr. Pusey has been the Group Chief Technology Officer at Vodafone since 2009. He joined the group in 2006 as the Chief Technology Officer and became a Member of the group s Board in 2009. Prior to joining Vodafone, Mr. Pusey held the positions of Executive Vice President and President, Nortel EMEA, having joined Nortel in 1982. Prior to Nortel, he spent several years with British Telecom.

John Bond

Board: Non Executive Board Job Title: Chairman Since: 2006 Age: 68

Mr. Bond has been the Chairman at Vodafone since 2006. He is a Non-Executive Director at A.P. Moller - Maesk and Shui On Land (Hong Kong SAR). Mr. Bond retired from the position of Group Chairman at HSBC Holdings in 2006. Previously, he also served as a Non-Executive Director at London Stock Exchange, Orange, British Steel, the Court of the Bank of England and Ford Motor. Mr. Bond is also an Advisor to Northern Trust in Chicago.

John Buchanan

Board: Non Executive Board Job Title: Deputy Chairman Since: 2006

Vodafone Group Public Limited Company

Key Employee Biographies

Age: 66

Public Limited Company Key Employee Biographies Age: 66 Mr. Buchanan has been the Deputy Chairman at

Mr. Buchanan has been the Deputy Chairman at Vodafone since 2006. He has been a Member of the group s Board since 2003. Mr. Buchanan retired from the Board of Directors at BP in 2002 after six years as Group Chief Financial Officer and Executive Director following a wide-ranging career with the company. He was a Member of the UK Accounting Standards Board from 1997 to 2001. Mr. Buchanan is the Chairman at Smith & Nephew and Senior Independent Director at BHP Billiton. He also serves as the Chairman at The International Chamber of Commerce (UK). Mr. Buchanan was a Non-Executive Director at AstraZeneca and Boots.

Alan Jebson

Board: Non Executive Board Job Title: Director Since: 2006 Age: 60

Mr. Jebson has been a Director at Vodafone since 2006. He retired in 2006 from his role as Group Chief Operating Officer at HSBC Holdings, a position which included responsibility for IT and Global Resourcing. During a long career with HSBC, Mr. Jebson held various positions in IT including the position of Group Chief Information Officer. He joined HSBC as Head of IT Audit in 1978 where, building upon his qualification as a chartered accountant, he built an international audit team and implemented controls in the Groups application systems. Mr. Jebson is also a Non-Executive Director at Experian Group and MacDonald Dettwiler and Associates in Canada.

Samuel Jonah

Board: Non Executive Board Job Title: Director Since: 2009 Age: 60

Mr. Jonah has been a Director at Vodafone since 2009. He is Executive Chairman at Jonah Capital, an investment holding company in South Africa and serves on the Boards of various public and private companies including The Standard Bank Group. Mr. Jonah previously worked for Ashanti Goldfields, becoming CEO in 1986, and was formerly Executive President at AngloGold Ashanti, a Director at Lonmin and a Member of the Advisory Council of the President at African Development Bank. He is an Advisor to the Presidents of Ghana, South Africa, Nigeria and Namibia.

Nick Land

Board: Non Executive Board Job Title: Director Since: 2006

Vodafone Group Public Limited Company

Key Employee Biographies

Age: 62

Public Limited Company Key Employee Biographies Age: 62 Mr. Land has been a Director at Vodafone

Mr. Land has been a Director at Vodafone since 2006. In 2006, he retired as the Chairman at Ernst & Young after a distinguished career spanning 36 years with the firm. Mr. Land became an Audit Partner in 1978 and held a number of management appointments before becoming Managing Partner in 1992. He was appointed Chairman and joined the Global Executive Board at Ernst & Young Global in 1995. Mr. Land is a Non-Executive Director at Royal Dutch Shell, Alliance Boots, BBA Aviation and the Ashmore Group. He is an Advisor to the Board at Denton Wilde Sapte, Chairman of the Board of Trustees at Farnham Castle, and is a Member of the Finance and Audit Committees at National Gallery. Mr. Land also serves as the Chairman at The Vodafone Foundation.

Anne Lauvergeon

Board: Non Executive Board Job Title: Director Since: 2005 Age: 50

Ms. Lauvergeon has been a Director at Vodafone since 2005. She is the CEO at AREVA Group, the leading French energy company, having been appointed to that role in 2001. Ms. Lauvergeon started her professional career in 1983 in the steel industry and in 1990 she was named Advisor for Economic International Affairs at the French Presidency and Deputy Chief of its Staff in 1991. In 1995, she became a Partner at Lazard Freres & Cie, subsequently joining Alcatel Telecom as Senior Executive Vice President in 1997. In 1999, Ms. Lauvergeon was appointed the Chairman and CEO at AREVA. She is currently also a Member of the Advisory Board at Global Business Coalition on HIV/AIDS and a Non-Executive Director at Total and GDF SUEZ.

Luc Vandevelde

Board: Non Executive Board Job Title: Director Since: 2003 Age: 59

Mr. Vandevelde has been a Director at Vodafone since 2003. He is a Director at Societe Generale and the Founder and Managing Director at Change Capital Partners, a private equity fund. Mr. Vandevelde was formerly Chairman of the Supervisory Board at Carrefour, Chairman at Marks & Spencer Group and CEO at Promodes, and has held senior European and international roles with Kraft General Foods.

Anthony Watson

Board: Non Executive Board Job Title: Director

Vodafone Group Public Limited Company

Key Employee Biographies

Since: 2006

Age: 65

Limited Company Key Employee Biographies Since: 2006 Age: 65 Mr. Watson has been a Director at

Mr. Watson has been a Director at Vodafone since 2006. He is currently the Chairman at Marks & Spencer Pension Trust and the Asian Infrastructure Fund. Mr. Watson also serves as the Senior Independent Director at Hammerson and Witan Investment Trust; a Non-Executive Director at Lloyds Banking Group; and serves on the Advisory Board at Norges Bank Investment Management. Prior to joining the Vodafone Board, he was the CEO at Hermes Pensions Management, a position he had held since 2002. Previously, Mr. Watson was Hermes Chief Investment Officer having been Managing Director at AMP Asset Management and the Chief International Investment Officer at Citicorp Investment Management from 1991 until joining Hermes in 1998. He was the Chairman at The Strategic Investment Board in Northern Ireland until he retired in 2009.

Philip Yea

Board: Non Executive Board Job Title: Director Since: 2005 Age: 55

Mr.Yea has been a Director at Vodafone since 2005. He is currently the Chairman at Majid Al Futtaim Properties, a UAE based property group. Mr. Yea also serves as the Chairman of the Trustees at British Heart Foundation. He is the Senior Business Advisor to HRH Duke of York in his role as the UK s Special Representative for International Trade & Investment, and is a Member of a number of Advisory Boards, including PricewaterhouseCoopers in the UK and Bridges Ventures. From 2004 to 2009, Mr.Yea was the CEO at 3i Group. Prior to joining 3i, he was Managing Director at Investcorp and from 1997 to 1999 Group Finance Director at Diageo following the merger of Guinness, where he was Finance Director, and Grand Metropolitan. He has previously held Non-Executive roles at HBOS and Manchester United.

Wendy Becker

Board: Senior Management Job Title: Group Chief Marketing Officer Since: 2009 Age: 44

Ms. Becker has been the Group Chief Marketing Officer at Vodafone since 2009. She was previously Managing Director at Talk Talk, a subsidiary of the Carphone Warehouse. Prior to this role, Ms. Becker was a Partner at McKinsey with responsibility for the UK consumer practice, which specializes in strategic marketing and brand roles at Procter & Gamble. She is a Non-Executive Director at Whitbread.

Warren Finegold

Vodafone Group Public Limited Company

Key Employee Biographies

Group Public Limited Company Key Employee Biographies Board: Senior Management Job Title: Group Strategy and

Board: Senior Management Job Title: Group Strategy and Business Development Director Since: 2009 Age: 53

Mr. Finegold has been the Group Strategy and Business Development Director at Vodafone since 2009. He joined the group s Executive Committee in 2006 as Chief Executive, Global Business Development with responsibility for mergers and acquisitions, business development and partner markets. Mr. Finegold started his career with Hill Samuel as an Executive in the Corporate Finance department, advising clients on mergers and acquisitions. He then moved to Goldman Sachs International in 1986 where he held positions in New York and London. Prior to joining Vodafone, Mr. Finegold was a Managing Director at UBS Investment Bank where he held a number of senior positions, most recently as Head of its technology team in Europe.

Matthew Kirk

Board: Senior Management Job Title: Group External Affairs Director Since: 2009 Age: 49

Mr. Kirk has been the Group External Affairs Director at Vodafone since 2009. He joined the group in 2006 as Group Director of External Relationships. Prior to that, Mr. Kirk was a Member of the British Diplomatic Service for more than 20 years and before joining Vodafone served as British Ambassador to Finland.

Terry Kramer

Board: Senior Management Job Title: Regional President - Vodafone Americas Age: 50

Mr. Kramer is the Regional President - Vodafone Americas at Vodafone. He joined the group in 2005 as Chief of Staff. Before moving to his present role, Mr. Kramer also served as Group Human Resources Director and Group Strategy and Business Improvement Director. He is a Board Member at Verizon Wireless and the mobile industry association, GSMA, Chairman at Vodafone Ventures and Chairman at Vodafone Americas Foundation. Prior to joining Vodafone, Mr. Kramer was the CEO at Q Comm International. He also worked for 12 years at PacTel/AirTouch Communications in a variety of roles including President AirTouch Paging, Vice President Human Resources-AirTouch Communications, Vice President Business Development-AirTouch Europe and Vice President and General Manager-AirTouch Cellular Southwest Market. Prior to that, Mr. Kramer was an Associate with Booz Allen & Hamilton.

Morten Lundal

Vodafone Group Public Limited Company

Key Employee Biographies

Group Public Limited Company Key Employee Biographies Board: Senior Management Job Title: Chief Executive Officer,

Board: Senior Management Job Title: Chief Executive Officer, Africa and Central Europe Region Since: 2008 Age: 45

Mr. Lundal has been the CEO, Africa and Central Europe Region at Vodafone since 2008. He joined Nordic mobile operator, Telenor, in 1997 and held several CEO positions including for the Internet Division and Telenor Business Solutions as well as the position of Executive Vice President for Corporate Strategy before becoming the CEO at Telenor s Malaysian subsidiary, DiGi Telecommunications.

Rosemary Martin

Board: Senior Management Job Title: Group General Counsel and Company Secretary Since: 2010 Age: 50

Ms. Martin has been the Group General Counsel and Company Secretary at Vodafone since 2010. She previously served as the CEO at Practical Law Group prior to which she previously spent 11 years with Reuters Group in various company secretary and legal roles with the last five years as Group General Counsel and Company Secretary. Before joining Reuters, Ms. Martin was a Partner with Mayer, Brown, Rowe & Maw. She is a Non-Executive Director at HSBC Bank (the European arm of HSBC Group) and a Member at Institute of Chartered Accountants of England and Wales Corporate Governance Committee.

Nick Read

Board: Senior Management Job Title: Chief Executive Officer, Asia Pacific and Middle East Region Since: 2008 Age: 45

Mr. Read has been the CEO, Asia Pacific and Middle East Region at Vodafone since 2008. He joined the group in 2002 and has held a variety of senior roles including Chief Financial Officer and Chief Commercial Officer at Vodafone Limited, the UK operating company, and was appointed CEO at Vodafone Limited in early 2006. Prior to joining Vodafone, Mr. Read held senior global finance positions with United Business Media and Federal Express Worldwide.

Ronald Schellekens

Board: Senior Management Job Title: Group Human Resources Director Since: 2009

Vodafone Group Public Limited Company

Key Employee Biographies

Age: 46

Public Limited Company Key Employee Biographies Age: 46 Mr. Schellekens has been the Group Human Resources

Mr. Schellekens has been the Group Human Resources Director at Vodafone since 2009. Prior to joining the group, he was the Executive Vice President Human Resources for Royal Dutch Shell s global downstream business. Prior to working for Shell, Mr. Schellekens spent nine years working for PepsiCo in various international senior human resources roles including assignments in Switzerland, Spain, South Africa, the UK and Poland. In his last role, he was responsible for the Europe, Middle East and Africa region for PepsiCo Foods International. Prior to PepsiCo, Mr. Schellekens worked for nine years for AT&T Network Systems in human resources roles in the Netherlands and Poland.

Vodafone Group Public Limited Company

Major Products and Services

Group Public Limited Company Major Products and Services MAJOR PRODUCTS AND SERVICES Vodafone Group (Vodafone) is

MAJOR PRODUCTS AND SERVICES

Vodafone Group (Vodafone) is one of the world s leading providers of mobile telecom services. The company's key products and services include the following:

Mobile telephony Mobile broadband Fixed line telephony Fixed line broadband services Wholesale services Device sales Mobile advertising Value added services

Vodafone 360 PC Backup and Restore Vodafone Money Transfer

Enterprise services:

Vodafone One Net Vodafone Unified Communications Business managed services Machine-to-machine (M2M) solutions

Vodafone Group Public Limited Company

Revenue Analysis

REVENUE ANALYSIS

Vodafone Group

Company Revenue Analysis REVENUE ANALYSIS Vodafone Group The group recorded revenues of £44,472 million ($70,992.4

The group recorded revenues of £44,472 million ($70,992.4 million) during the financial year ended March 2010 (FY2010), an increase of 8.4% over FY2009. In FY2010, Germany, the group's largest geographic market, accounted for 18% of the total revenues.

Vodafone operates through a single business segment, which is engaged in providing communications services and products.

Revenues by Division

The group generates its revenues from a single business segment, which is engaged in providing communications services and products.

Revenues by Geography

Germany, Vodafone's largest geographical market, accounted for 18% of the total revenues in FY2010. Revenues from Germany reached £7,959 million ($12,705.3 million) in FY2010, an increase of 2.3% over FY2009.

Italy accounted for 13.5% of the total revenues in FY2010. Revenues from Italy reached £5,985 million ($9,554.1 million) in FY2010, an increase of 8.7% over FY2009.

Spain accounted for 12.7% of the total revenues in FY2010. Revenues from Spain reached £5,630 million ($8,987.4 million) in FY2010, a decrease of 1.5% over FY2009.

The UK accounted for 11.2% of the total revenues in FY2010. Revenues from the UK reached £4,968 million ($7,930.6 million) in FY2010, a decrease of 6.9% over FY2009.

Vodacom accounted for 10% of the total revenues in FY2010. Revenues from Vodacom reached £4,443 million ($7,092.5 million) in FY2010, compared to revenues of £1,778 million ($2,838.3 million) in FY2009.

India accounted for 7% of the total revenues in FY2010. Revenues from India reached £3,093 million ($4,937.5 million) in FY2010, an increase of 15.9% over FY2009.

Other Europe accounted for 11.9% of the total revenues in FY2010. Revenues from other Europe reached £5,298 million ($8,457.4 million) in FY2010, an increase of 0.8% over FY2009.

Vodafone Group Public Limited Company

Revenue Analysis

Vodafone Group Public Limited Company Revenue Analysis Other Africa and Central Europe accounted for 7.9% of

Other Africa and Central Europe accounted for 7.9% of the total revenues in FY2010. Revenues from other Africa and Central Europe reached £3,523 million ($5,623.9 million) in FY2010, a decrease of 4.1% over FY2009.

Other Asia Pacific and Middle East accounted for 7.5% of the total revenues in FY2010. Revenues from other Asia Pacific and Middle East reached £3,337 million ($5,327 million) in FY2010, an increase of 7.6% over FY2009.

Note: *Geographical segments percentage rounded off

Vodafone Group Public Limited Company

SWOT Analysis

SWOT ANALYSIS

Group Public Limited Company SWOT Analysis SWOT ANALYSIS Vodafone Group (Vodafone) is one of the world

Vodafone Group (Vodafone) is one of the world s leading providers of mobile telecom services. The group provides mobile voice and data communication services to consumers and enterprise

customers. The group has global operations spanning Europe, the Middle East, Africa, Asia Pacific, and the US. Its prominent market position will provide a competitive advantage to the group over other players and helps it in enhancing the operating performance. However, intense competition

in

the telecommunications industry will adversely affect the groups market share and revenue growth

in

the coming years.

Strengths

Weaknesses

Prominent market position Extensive global reach and diversified revenue base Significant brand image

Legal proceedings

Opportunities

Threats

Growth of mobile advertising Increasing 3G penetration Focus on M2M solutions Mobile money transfer services market Growth of Indian telecom market

Intense competition Regulatory environment Matured markets

Strengths

Prominent market position

Vodafone is a prominent player in most of the markets it operates. The group operates in Europe, the Middle East, Africa, Asia Pacific, and the US through its subsidiary undertakings, joint ventures, associated undertakings and investments. In 2009, it held approximately 7% share of the global mobile market. As of FY2010, Vodafone had 341.1 million customers worldwide, as calculated on

a proportionate basis. At the end of 2009, it had considerable market share in most of the countries

it operates. In the European region, its operations in Germany had a market share of approximately 32%, Italy (33.5%), Spain (31.2%), Romania (33.1%), Turkey (24.5%) and the UK (23.4%). In the Asia Pacific and Middle East region, the group had market share of 42.1% in Egypt. In addition, in

India, Vodafone added nearly 32 million customers in FY2010 to reach nearly 111 million subscribers.

It had 17% share of India s mobile-phone market at the end of July 2010 and is the second largest

telecom player in India in terms of revenue. Further, in the US, its associate had a market share of 32% in 2009.

Vodafone Group Public Limited Company

SWOT Analysis

Vodafone Group Public Limited Company SWOT Analysis Prominent market position will provide a competitive advantage to

Prominent market position will provide a competitive advantage to the group over other players and helps it in enhancing the operating performance.

Extensive global reach and diversified revenue base

The group has strategically expanded its presence across the globe through acquisition of stake in various companies and partner networks. As of FY2010, Vodafone was one of the world's leading international mobile telecommunications companies, with equity interests in over 30 countries and partners in more than 40 countries. The group has significant mobile operations in Europe, the Middle East, Africa, Asia Pacific and the US.

In addition, the company has a diversified revenue base. For instance in FY2010, the group's largest geographical market, Germany, contributed 18% of the total geographic revenues. This was followed by Italy (13.5%), Spain (12.7%), the UK (11.2%), Vodacom (10%), and India (7%). In addition, in FY2010, the group s other Europe, other Africa and Central Europe, and other Asia Pacific and Middle East operations accounted for 12%, 8%, and 7.5%, respectively, of the total geographic revenues.

The group's global reach along with diversified revenue base reduces its business risk, while providing synergies associated with multinational telecom operations like roaming facilities and international call charges, among others.

Significant brand image

Vodafone has established a significant brand image. The group's mobile subsidiaries operate under the brand name Vodafone. The Vodafone brand is recognized around the world. It was ranked number 10 in the BrandZ Top 100 global brands list in 2010, published by Millward Brown, with an estimated value attributable to the brand of $44,404 million. It is the top brand in the UK and second largest mobile operator brand worldwide. In addition, according to Brand Finance s Global Brand Survey 2010, the Vodafone brand is the seventh most valuable brand, compared to eighth position in 2009.

The group s robust brand value will act as a differentiating factor as well as will allow it to introduce new products to the market.

Weaknesses

Legal proceedings

Vodafone is part of various legal proceedings related to tax issues. A subsidiary of the group, Vodafone 2, is responding to an enquiry by HM Revenue & Customs (HMRC) with regard to the UK tax treatment of its Luxembourg holding company, Vodafone Investments Luxembourg SARL, under the Controlled Foreign Companies section of the UK's Income and Corporation Taxes Act 1988

Vodafone Group Public Limited Company

SWOT Analysis

Vodafone Group Public Limited Company SWOT Analysis (CFC Regime) relating to the tax treatment of profits

(CFC Regime) relating to the tax treatment of profits earned by the holding company for the accounting period ended 31 March 2001. Vodafone 2 enquiry and other enquiries involving similar holding companies in Luxembourg are ongoing. As a result, the group had taken provisions for the potential UK corporation tax liability and related interest expense, which amounted to approximately £2.2 billion ($3.5 billion) at end of FY2010.

Additionally, Vodafone Essar (VEL) and Vodafone International Holdings (VIH) each received notices in 2007, from the Indian tax authorities alleging potential liability in connection with alleged failure by VIH to deduct withholding tax from consideration paid in the transaction to Hutchison Telecommunications International (HTIL). The notice was issued in respect of HTIL's gain on its disposal to VIH of its interests in a wholly-owned subsidiary that indirectly holds interests in VEL. Following the receipt of the notices, VEL and VIH initiated a legal proceeding, which is pending outcome. In September 2010, the Bombay High Court dismissed Vodafone s challenge of a tax claim exceeding $2 billion, ruling that Indian authorities can pursue the case. Earlier, the Bombay High Court ruled in 2008 against Vodafone s initial challenge of the tax claim. The carrier s appeal of that ruling was dismissed by India s Supreme Court in January 2009.

The group's involvement in various legal proceedings related to tax issues, may subject it to fines as well as affect its brand image.

Opportunities

Growth of mobile advertising

The mobile advertising market is forecast to record strong growth in coming years. With mobile phone becoming the center of the digital convergence, advertising on mobiles will be a major growth area of growth for telecom players. According to the industry sources, the global mobile advertising market is expected to grow at a compounded annual growth rate (CAGR) of about 40% until 2014. The growth is primarily due to the increasing mobile phone users and evolving mobile platforms.

Vodafone has been focusing on mobile advertising in recent times. In 2009, the group completes roll out of mobile advertising services to its 18 operating markets. In the previous year, Vodafone Marketing Solutions had run over 2000 campaigns across its global footprint for hundreds of global brands. Growth of mobile advertising will increase the group s revenue in coming years.

Increasing 3G penetration

The demand for third generation (3G) services is expected to increase with the growing need for advanced data and video services. The 3G technology allows services providers to provide a host of services including high speed mobile broadband, mobile TV, and mobile VoD, among others. As the traditional voice revenues of mobile operators are being hit by changing tariffs, increasing competition and alternative technology, among other factors, operators are migrating to 3G services to facilitate stable or increasing average revenue per user (ARPU). As a result, the worldwide 3G

Vodafone Group Public Limited Company

SWOT Analysis

Vodafone Group Public Limited Company SWOT Analysis penetration rates are forecast to increase in coming years.

penetration rates are forecast to increase in coming years. For instance, the 3G penetration rates in advanced economies like the US is forecast to increase from nearly 43% in 2009 to over 60% by 2013. Similarly, the 3G penetration in Asia-Pacific is expected to reach 40% 2014.

Vodafone is one of the leading players in the worldwide telecom market. The group offers 3G services based on wideband code division multiple access (W-CDMA) technology. At the end of FY2010, Vodafone had 3G licenses in Germany, Italy, Spain, the UK, Greece, Ireland, Malta, Netherlands, Portugal, South Africa, Czech Republic, Egypt, Hungary, New Zealand and Romania. In addition, Vodafone secured 2x5 MHz of 3G spectrum in nine circles in the Indian auction for a total price of £1.74 billion ($2.8 billion) in May 2010.

Increasing adoption of 3G will contribute to the group's revenue growth in coming years.

Focus on M2M solutions

The group has been increasing its focus on machine-to-machine (M2M) solutions. It supports M2M solutions ranging from location monitoring of vehicles and remote patient monitoring through to supporting real-time secure payments and providing real-time inventory reports for retailers, corporate, and MNC segments. In July 2009, the group launched a global M2M service platform to help companies deploy and manage large, wireless M2M projects.

Furthermore, in February 2010, Vodafone, Verizon Wireless and nPhase, a Verizon Wireless/Qualcomm joint venture, formed a strategic alliance aimed at increasing the adoption of global M2M deployments by simplifying the remote management and monitoring of devices spread across both European and the US networks. The alliance is designed to provide an international management solution for a growing number of companies looking to use M2M wireless communications to enhance their customer service and create new service offerings in sectors including energy, healthcare, automotive telematics, consumer and commercial products.

According to the industry sources, industry-wide operator revenues for wireless M2M are forecast to increase from $4 billion in 2008 to $13 billion in 2012. Vodafone s increasing focus on M2M solutions will add to its top line growth in coming years.

Mobile money transfer services market

The mobile money transfer services market is expected to grow in the coming years. According to the industry sources, the international mobile money transfer market is forecast to reach $62 billion by 2014, based on gross transaction values.

Vodafone s money transfer service branded as M-PESA, which allows customers in engaging money transfer, airtime top-up and bill payments using their mobile phones. The M-PESA service was developed by Vodafone and has already been deployed by Safaricom in Kenya, Vodacom in Tanzania and Roshan in Afghanistan (branded M-Paisa). The group has 13 million customers using this service and transferred $3.6 billion during the financial year 2010. In February 2010, the group s subsidiary,

Vodafone Group Public Limited Company

SWOT Analysis

Vodafone Group Public Limited Company SWOT Analysis Vodacom South Africa, launched M-PESA in South Africa. In

Vodacom South Africa, launched M-PESA in South Africa. In addition, the group also plans to roll out this service to further markets in 2010.

The group s increasing presence in growing mobile money transfer services market will further enhance its revenue base.

Growth of Indian telecom market

The Indian telecom market is one of the less penetrated markets in the world. The Indian market has low penetrations rates in the mobile, broadband and related services segments. The market recorded significant growth in recent times to register about 600.7 million telecom customers at the end of 2009. This allowed it to surpass the US to become the second largest market in the world after China. Furthermore, the telecom penetration rate in India was 51.1% at the end of 2009 with a wireless penetration rate of 47.91% and broadband penetration of 0.73%. Low penetration rates signify potential for growth in coming years. The government of India is targeting 1 billion telecom customers by 2015 and 20 million broadband customers by 2010. The growth in this market is being driven by increasing urbanization, rising income levels and a large young population.

Vodafone had 17% share of India s mobile-phone market at the end of July 2010 and is the second largest telecom operator in India in terms of revenue. Low penetration rates will allow the group to enhance its revenue in coming years.

Threats

Intense competition

The group operates in the highly competitive and rapidly changing technology-based telecommunications industry. The focus of competition in many of its markets continues to shift from customer acquisition to customer retention as the market for mobile telecommunications has become increasingly penetrated. Vodafone competes with national and international players and mobile virtual network operators (MVNOs) in various markets. Major competitors of the group include AT&T, BT Group, Deutsche Telekom, Emirates Telecommunications, France Telecom, Bharti Airtel, MTNL, Reliance Communications, Sprint Nextel Communications, Tata Teleservices, Telecom Italia, Telefonica, Telenor, and Telstra.

In addition, newer competitors, including handset manufacturers, internet based companies and software providers, are also entering the market offering converged communication services. Increased competition has also led to declines in the prices Vodafone charges for its mobile services and is expected to lead to further price declines in the future. For instance, the combination of competition and regulatory pressures has contributed to a 17% per annum decline in the average price per minute across the group s global network over the last three years. Further, competition may also require the group to increase subsidy for handsets.

Vodafone Group Public Limited Company

SWOT Analysis

Vodafone Group Public Limited Company SWOT Analysis Intense competition will adversely affect the group ’ s

Intense competition will adversely affect the group s market share and revenue growth in the coming years.

Regulatory environment

Vodafone being a global company, must comply with an extensive range of laws and regulations. These requirements regulate and supervise the licensing, construction and operation of the group s telecommunications networks and services. In particular, there are agencies which regulate and supervise the allocation of frequency spectrum and which monitor and enforce regulation and competition laws, which apply to the mobile telecommunications industry. Decisions by regulators regarding the granting, amendment or renewal of licenses, may adversely affect the group s future operations in these geographic areas.

In addition, decisions by regulators and new legislation, such as those relating to international roaming charges and call termination rates, will affect the pricing for the services Vodafone offers. Further, industry regulators continue to impose lower mobile termination rates and lower roaming prices. Termination fees and roaming charges accounted for 17% of the group s revenue in FY2010.

Changes in the regulatory environment may adversely affect the group s business prospects or results of operations.

Matured markets

The European markets, where the group has significant presence and generates considerable revenues, have high penetration rates. In FY2010, the group generated approximately 67% of its total revenues from its European operations, including 18%, 13.5%, 12.7%, and 11.2% of its total revenues from Germany, Italy, Spain, and UK, respectively. At the end of 2009, mobile penetration in Western Europe and Eastern Europe was about 130% and 120%, respectively. In particular, the penetration rates in Germany, Spain, Italy and the UK are estimated to be 132%, 112%, 151.3%, and 130.6%, respectively, at the end of 2009. The high penetrations in the market indicate saturation of the markets eliminating any chance of significant growth in the future through new subscribers.

The high penetration rates in these markets signify weak prospects for the group to report growth, making it dependent on differentiation and value added services for future growth. Mature markets may affect the group s revenue growth and profitability in coming years.

Vodafone Group Public Limited Company

Top Competitors

TOP COMPETITORS

Group Public Limited Company Top Competitors TOP COMPETITORS The following companies are the major competitors of

The following companies are the major competitors of Vodafone Group Public Limited Company

France Telecom SA AT&T Inc. BT Group plc Deutsche Telekom AG Bharat Sanchar Nigam Ltd. Emirates Telecommunications Company Telefonica, S.A. Telenor ASA Telstra Corporation Limited Mahanagar Telephone Nigam Limited (MTNL) Reliance Communications Limited Sprint Nextel Corporation Tata Teleservices Limited Telecom Italia S.p.A.

Vodafone Group Public Limited Company

Company View

COMPANY VIEW

Group Public Limited Company Company View COMPANY VIEW A statement by John Bond, Chairman at Vodafone

A statement by John Bond, Chairman at Vodafone Group is given below. The statement has been

taken from the company's 2010 annual report.

Your Company continues to deliver strong cash generation, is well positioned to benefit from economic recovery and looks to the future with confidence.

Environment and performance

Against a difficult background, we generated £7.2 billion of free cash flow, up 26.5%.

Total dividends per share of 8.31 pence, up 7%; three year dividend per share growth target of at least 7% per annum.

Original £1 billion cost programme completed a year ahead of schedule with a further £1 billion initiative underway.

Continued strong investment in network capability to maintain and enhance the quality of service.

2009 saw the sharpest contraction in the worlds economy for more than a generation. Unquestionably, this has been the most difficult economic environment in which your Company has ever operated. Against this background, I am very pleased to report that the Group delivered an adjusted operating profit of £11.5 billion (down 2.5%), and generated £7.2 billion of free cash flow (up 26.5%). The Board is recommending a final dividend of 5.65 pence, making a total for the year of 8.31 pence per share (up 7%). The Board is also targeting to maintain growth in dividends per share at no less than 7% per annum for the next three years. This year s results have been achieved while maintaining the capital expenditure (up slightly at £6.2 billion) needed to serve our customers growing demand for voice minutes and data services.The share price has increased by 6% since 1 April 2009, broadly

in line with other major European telecommunications companies, but behind the increase in the

FTSE 100.

While the Group is not immune from the economic environment in which we operate, with our retail customers seeking to control their expenditure as much as possible and our business customers seeking to control cost, we have responded swiftly with cost reduction and efficiency programmes. On top of our original £1 billion cost programme, delivered a year ahead of plan, we have now committed to a further £1 billion cost programme by the 2013 financial year. With mobile voice prices continuing to decline in Europe by over 10% a year, tight cost control will remain a high priority in the future.

The telecommunications sector as a whole has seen declining revenue through this period but we have not seen the extremely steep declines in revenue experienced by some other sectors of the economy mobile communications remain an essential element in most people s lives. We see how

Vodafone Group Public Limited Company

© Datamonitor

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Vodafone Group Public Limited Company

Company View

Vodafone Group Public Limited Company Company View our services are allowing people to lead their lives

our services are allowing people to lead their lives more efficiently and pleasurably, making better use of their time and opportunities. This has resulted in ever increasing demand, with voice minutes up by 22.3%(*) and data revenue up by 19.3%(*) across the Group. This additional demand on our networks means that we need to manage traffic to ensure both good service for our customers and appropriate returns for our shareholders from continued investment in those networks.

Innovation

Continued innovation in our products and services broadens and enhances our business portfolio.

The new Vodafone 360 service combines the benefits of mobile communications and the internet to bring your phone, email chat and social network contacts together in one place.

Innovation in the services we offer, and the expansion of those services into other sectors such as health care or communication between different types of machine smart metering on energy grids or smart communications for delivery truck fleets can make important contributions to our societies, lowering carbon emissions and enhancing lifestyles. This kind of innovation is important both for the wider benefits it brings but also because it broadens and enhances the base on which our business is built. We have now set-up separate health and machine-to-machine teams to ensure that we maximize these opportunities.

Your Company has also continued to innovate in the services we provide. This year has seen the launch of Vodafone 360, a service designed to help bridge the intersection between mobile communications and the internet making it easier to communicate with friends, colleagues and family from your mobile using social media or more traditional forms of electronic communication. The Vodafone Money Transfer system (branded M-PESA in Kenya and Tanzania) is available in three countries with 13 million customers transferring $3.6 billion during the 2010 financial year. We expect to roll-out the service to further markets later this year. We recently launched two of the world s most inexpensive handsets for example the Vodafone 150 retails in most markets at unsubsidized prices below $15 and we are working on low cost handsets which will give access to the internet.

Geographic diversity

Wide portfolio of operations including developed and emerging markets.

In emerging markets growth prospects remain positive. We now have over 100 million customers in our key Indian market.

One of the benefits of our broad spread of operations in both developed and emerging markets is the diversification of risk that this allows. The Board keeps a close watch on this portfolio of investments, particularly those where we do not exercise management control. In Verizon Wireless we have an outstanding asset whose value has increased substantially over recent years, and SFR has secured a strong market position and provided good dividends. The Board reviews these investments regularly and will remain focused upon the best way of realizing maximum shareholder value.

Vodafone Group Public Limited Company

Company View

Vodafone Group Public Limited Company Company View The impairment of our investment in Vodafone Essar in

The impairment of our investment in Vodafone Essar in India was a major disappointment to the Board. It results from an intense price war, triggered by the unprecedented and unforeseeable entry

of six new competitors into the Indian market. Our operational performance in India however remains strong and we remain confident in the long-term prospects for the Indian market. We recently passed

a very important milestone, with Vodafone Essar now having more than 100 million customers

one of only five national mobile operators in the world to have reached this scale, reflecting strong growth from 28 million customers when we acquired control of Vodafone Essar in May 2007. Elsewhere in the emerging markets, the operational turnaround of our company in Turkey has yielded very positive results and we have seen good progress in Ghana.

Your Board

This year we conducted an evaluation on the effectiveness of the Board and its Committees aided by the external advisors MWM Consulting. They concluded that the Board was effective, had the right composition and skills and was generally performing well. More detail is contained at page 48 of this report.

Simon Murray, who has been a non-executive Director since July 2007, has decided to step down from the Board after this year s AGM. His knowledge of telecommunications, entrepreneurial spirit, and experience of the Asia Pacific region have been great assets to the Board, and I am grateful for the contribution he has made.

The Vodafone Foundation

The Vodafone Foundation supports communities and societies in the countries in which we operate.

Vodafone invested a total of £42 million in foundation programmes and social causes.

We have continued to fund the work of the Vodafone Foundation. Through the Vodafone Foundation

and our network of national affiliate foundations we support communities and societies in the countries

in which we operate. In this financial year we invested a total of £42 million in foundation programmes

and social causes, and our World of Difference programme enabled 604 people to take paid time to work for a charitable purpose of their choice in their own community or in a developing country. Across the Group we have also put in place mechanisms to make it easy for our customers to give money to support charitable appeals following disasters. After the Haiti earthquake, Vodafone foundations donated £0.3 million to the emergency relief and reconstruction effort, and we helped our customers in 14 countries to give a total of £4.7 million by text message.

Summary

On behalf of the Board, I would like to thank all Vodafone staff around the world for the great efforts they have made in the past year in such challenging economic conditions. Vodafone would not have been able to deliver these results without the tremendous effort of the team.

Vodafone Group Public Limited Company

Company View

Vodafone Group Public Limited Company Company View The Board is heartened by your Company ’ s

The Board is heartened by your Company s strong results especially in the face of such a sharp economic downturn. It believes that the Group is well positioned to benefit from economic recovery and looks to the future with confidence.

Vodafone Group Public Limited Company

Locations and Subsidiaries

LOCATIONS AND SUBSIDIARIES

Head Office

Vodafone Group Public Limited Company Vodafone House The Connection Newbury Berkshire RG14 2FN GBR P:44 1635 33 251 F:44 1635 45 713 http://www.vodafone.com

Other Locations and Subsidiaries

713 http://www.vodafone.com Other Locations and Subsidiaries Vodafone Ireland Limited Mountainview Leopardstown Dublin 18

Vodafone Ireland Limited Mountainview Leopardstown Dublin 18 IRL

Vodafone Spain Avenida de Europa 1 Parque Empresarial La Moraleja Alcobendas (28 108) Madrid ESP

Vodafone D2 GmbH Am Seestern 1 D-40547 Dusseldorf DEU

Vodafone Essar Limited Peninsula Corporate Park Ganpatrao Kadam Marg Lower Parel Mumbai 400 013 IND

Vodafone Australia Kingston Delivery Centre Kingston Tasmania 7050 AUS

Vodafone Czech Republic a.s. Vinohradska 167 Praha 10 CZE