Vodafone Group Public Limited (VOD) 17 May 222022 Q4 Earnings call transcript

Good morning and welcome and thank you for joining us for our results call.

Before we take your questions, I thought I would just cover four key points related to our results.

Firstly, our financial performance in the year was good and our results were in line with both the expectations for the year and the medium-term financial ambition we set out earlier in this year. We grew revenues both in Europe and Africa. We grew adjusted EBITDA by 5%. to cash point €X.X basis be in in on free a and points above adjusted the return inflection on of real returns capital our grew weighted flow returns capital. billion to delivered increase trajectory cost We for well to X.X%, with XXX

operational doing include a strategy, strategy. organic And that long-term Second, is of the our direct this good obviously execution on all have priorities, very clear we result Germany. performance we which have been alongside

the feel both And face, and both board questions. shareholders are adjusted around a EBITDA through have time, forward that simplify we flow structured we the covered returns maintaining challenges with to clearly free setting Third, let actions growth me sure that, immune not macroeconomic organically cash We billion. macroeconomic to us fully adjusted €X.X on and in at that management the FY we We drive give to of those in on our €XX both to billion confidence our but and at a Africa, And in but our portfolio. are for tough Europe strengthen fourth, that guidance and improving portfolio. the a it. to organic actions it’s plans to committed targeted ‘XX environment a full and and we agenda. have sustainable very number we of the very same our And very presentation for remain hand well deal billion €XX.X strategy, over to

much. you Thank very

from please comes today Patrick Maurice question Maurice, from go ahead. first Barclays. Our

guys. Yes, hi,

the start the lack you of mobile okay. Maybe out the question. have since elephant the consolidation. in-market priorities which laid progress. M&A if me is the you off could hear been level It’s months rather on progress for X your in or Thanks room, You for with

you with talk do mobile slides out options, Orange Masmovil and yet. M&A Iliad. about visible to and Spain did focus on I a the M&A the you about we you seen thinking can live number same update mean, but it progress haven’t are down in on you Spanish November? that where prepared German turning of We miss the the in seem fiber And terms still that? on latest talk Is remarks, then in Thank progress? generally was your Maybe of you. us opportunities,

Thanks the out for forefront the that doubt all, Yes. in on, focused Board portfolio question. want are on that executing no and team. management all the to we both in the absolutely of at November are at first and set and are we priorities would be I everything the say, I the of

just reflect moves. with I on think to maybe to it’s that the trying these achieve are we important goals

markets we want us is healthy for in one The have that are first strong forward. going producing cash to that predictable free assets growth flow

we to are down want to scale. our leveraging assets Secondly, simplify really portfolio regional our that

we right all we co-control our have to we a to what Vantage financial we structure make strengthen to to forward that sector most Why proceeds take financial it the balance sheet, want of opportunities consolidation. consolidating we of be would is we ensure growth sure make and still Vantage off to want and the want that from Obviously, goes situation. a for And we want into monetize. Towers take that Third, in the sheet of co-control, going part that point, to forward the to actions fourth Towers more flexibility. have the the move we shaping that in capital is to moving process, balance which do

a We at were group. job Xx. the done have good we deleveraging think I on

now We X.Xx. at are

It’s the priorities we were one lower to your that we keen it we markets out. are point the remain of of focused at laid to We markets. consolidation, in X.Xx. down of highlighted progress of the market range on. We bring focused end those To all the on

have I’d there where monetize strong towers, were conversations is issue, we an we place course, And many model to we say interest and many was as taking comes We very much we co-control finding that we ever the to to to with from speak. be going if industrial it are and can in separately. when are on conversations. focused both financial always active were players we engagement co-control and players. Clearly, of get very point

we to. if like, thing that final you is, the then And sequence obviously, Egypt. want so can, And we if therefore

and Egypt. are is focused We sensitive in on much I management transaction it. in say are can we by mean, transactions. many are conversations. point I engaged clearly, All complete that what happening to look summer. this these very the going We I blow-by-blow sure, actively Board through local at but obvious are is can’t for clearance reasons, share the detailed for

you. Thank

you Thank Maurice. very much,

from question next comes ahead. please Our Akhil from JPMorgan. Dattani Akhil, go today

we hi, implications, plans mechanically, to you that if you trough and there? the financially? understand moment as Yes, just trough will few are you when maybe are will could your this. doing how been just obviously, Maybe I far And I comment market? the to as Germany. have the at if a as a are the there to good around in of to Germany, I And this what well? in please, the Germany, recover on us the could we think understand picture question if on I quarters. context, just think customer can comment change visibility guess on better CEO comment the maybe slightly in QX But feel will so addressing the bigger trying new weak firstly, then losses just choice has Obviously, you a the And on KPIs, in financials maybe Margherita. Thanks. CEO could from I you next you you we here? in do impact Nick on this issues how morning, how help guess understand had we period. you quarter about could and wonder your turnaround

important really Akhil, basis. a question multipart Okay. on

So second can maybe, you cover financial the the outlook. part Margherita, regarding

of sort progress address of challenges are first the making. the me Let all we operational and

I been good I First start, the performance financial the say, would of year. multiyear and growth, has that’s progress on the all, basis. of before that course very and over of good I Germany mean, a been EBITDA

it has of invest is financially. been So, due little I just to commercial a I be. And out November think call was wanted those And of there that, if breaking performance bit down progress I did we in good not to this where number factors. time a factors. however, that

that all, caused commercial first really we of the issues. we that So during things two out us pandemic, called observed

The the first in of of capacity increase would and significantly in more those I of top has I was, us, to and say regulation. clusters. around, where overall. third down was think QX channel more throughout pandemic digital, terms which I’d bit, And say, the had the challenges, there some on been recover. is huge that Germany we on the pandemic network new of Telecom new could pre-pandemic the our the of a in say, important I going in would retail, challenge obviously for to Law which footfall really obviously, slow the strengthen shift, that a in secondly, has we XX% a a volume added we levels is And had been was forward. running

changes customer through recontract processes customers these new frankly, well had them. for they We were they no longer to not for and being with We journeys on renewed So, platform IT are automatically into of And put did with cumbersome. a XX months. an work execution. set

we a was first were, an process during what those So, based. all, break if e-mail had that the of I down issues well, recontracting

the terms So, the was interaction to had customer. really the in clunky e-mail. via confirm That of customer with back

quarter We system migrated a voice-based the I’d say was have area that now IT very fourth of one is performing. stability. in the that much second and into

had A were our level, seeing on supported XX.X%, created lot rules. with X each issues. i.e., those for in team a the was less Throughout thing Germany April, mechanisms month. systems And third that of the the targeted go and team us a than new number situation. of maintenance these hours system And now we availability backlog. releases which technical we And of QX, fraud group implementing recover was technical this heavy we of worked the that new issues. downtime at So, then time. to greater is than those we very We the stability had same a are

working in half all been backlog have that XX% and the first we we about through the releases through so year. of are of the we and the technical will off finish way various And

what we not It’s So, I back. stand wanted.

saying much execution in We issue operational Germany. are it was very that an

This the have underway. all got course summer. now our on the actions network network have We on of we over network been capacity doing is will by that the our we top the have and of the capacity year any resolved believe issues we on remedial upgrades of

We work have a few clusters to left on.

KPIs very the improvement will our commercial HX. customer see losses. course over you we say So point gradual And calling commercial low much I’d are QX in in Financially? of as terms the of

different side, from side. the financial the situation On commercial

pull-forward as Telco just see the of there. as in result of generated Law, which will down we effect course of from the has the new the will Nick And it’s well As quarters. gradual improvement said, few the the by action terms commercially, next mechanical of wind

going the the And and the forward. side, has in that far. of in slowdown financials. Germany fixed that you to orders term see is We down point slowed the will further consistency a but are through well. of of drivers, near Germany of KPIs still Germany our revenue we overall is what you the It in slow have growth growth. down growth broadband making this financial seen in impact performing drivers going will terms need financial performance is worth see one further in of so very is the that growth QX have the three The therefore, On our

our seen have revenue growth. You mobile service

this to expect well. We continue

Vodafone seen have We business accelerating.

coming business. than in will further move then the X% of advance targets. will achievement to you in this materialize cost, revenue in us synergy the Again, over And I the acquisition cost calling of And the X more to trend Liberty service years growing and the years after. have have that finally, of CapEx are we go if now opportunities from continue. We seen original

well. four So three out working of

that. CEO. increasingly think for Yes. sales, we And I final bringing important in have inspiring in strong propositions going experience. for brand, marketing, He Philipp he so of to group And has scale on is knows Philipp mean telco just together knowledge both which is agility, great products, efficiencies am delighted together customer was that. which I and and us. strong has your a from is point, He commercial a technology, leader. Akhil, also And known that choice to I forward. I benefit think how leverage that will Microsoft advantages. the to join

will I So he big that have impact. think a

We the team in have strengthened leadership wider Germany. also team,

of on Philipp for So, to case it waiting isn’t come a board.

very team. We with Hannes strengthened are clearly issues. the working a smooth We the transition. understand We on

take we have plans and in and just that forward. got clear execution are We Philipp will

Thank Great. you.

Thank very you much.

today next from comes Andrew, ahead. Goldman question Andrew Sachs. Lee please from Our go

talk for you. I that, your particularly just group about growth with as mitigate to and just to EBITDA as then ability you. rest question slightly thank Thank wonder what Akhil’s the to the and to across what implies wanted could for revenue Good your you your are in if what price are Europe? inflation morning. cost side rises? around question guidance ambitions you And factoring a Yes, ask follow-up just I of on and service

Sure.

broader I’d let try revenue service our as guidance, was describe paint Europe picture the say, as are consistent and – growth so I ‘XX. in of is what expectation performance. maybe On growth for Nick first, me FY and would revenue mentioning, the we mid-case in our with first it pleased service EBITDA far

uncertainty is industry for ‘XX, macro overall. FY there the into look degree a of we As

evolution growth of think Akhil, our are you revenue of just us, need I three. to growth down in slowing we see discussed Number service what For of of ongoing expect the have revenue performance. in have specifically, service about will the result one, think seen terms in be revenue is we in will near-term factors with acceleration very the we should in a as UK commercial the momentum. UK you strong broadband This offset fixed service growth. an where weak What the Germany

Southern the pricing particularly the the in to We customers measures is third of in record impact toolkit around presentation the million success would our have supportive investment seeing were consumer the in earlier. of in mind connected growth Spain, finally, have recovery Europe. the from revenue context churn April, to from the then also we of going in contract funds benefits elements allocation are strong over I seeing year, and last now the to X.X on inflation. are we bit in also, digital are We the in course, explaining keep point European key little lowest a growth say, government. in the the And

that are know they over on You SME billion putting €X digitization.

of first growth The of service connection Europe and being market this, distributed in to course in really this whole. to Africa is group take weight is our the if growing Net-net, in in revenue you of and punching picture, are €X.X also we on acceleration And FY growth as in a of quarters. And we this. good support all now. broadening in terms guidance the at our ‘XX the going midpoint share continue Spain an expect billion of the also above coming the range,

front, On million to if is to cost have €XXX OpEx well another in offsetting net two initiatives. our would delivery of the one reduction as hand, I efficiency Europe elements. with set our, I strong machine EBITDA, argue, On you exceed own move

inflation are all is net that. exceptional EBITDA which at guiding the guidance, macro the clearly can not and capital see. way, as and very other particularly we energy the anymore, on But another inflation However, immune that year of the I’d not wage overall because is met we we on X% our we’re midpoint on say in in acceleration, growth range are for pressures you for return compensate will have of the which why resilient, from is coming scenarios important.

but role on the board mentioned this the we going I this. at the supportive You that say have point the It’s time in initiatives let pricing pricing across will UK, sector. me of in be critical in said Europe. pricing in for really the all

We before we have five mechanism included markets. have that in said Plus CPI pricing

ways. live in So have year. UK rest and all April, CPI and following our on the markets already we the we in are But our without different discounts in gone markets will have we Ireland and Plus, across also promotions in orders And the in the the reviewed working see of Europe. base

Italy. be are good what doing think a that example of could I we in

portfolio. migrating be radical more will of our As we simplification speak, we be have both are plans, which we accretive the done end. in a the and customers transparency of the book suitable our to for us progress back And ARPU in which are for increasing them,

So a delivering terms in through and for I of think, options moment, really range us. critical of this

nice, Yes, you. really That’s confidence. clear thank

follow-up. tiny a Just

I you the growth. when of there. XXs European mentioned at know points Just guys or you you here midpoint, expect of basis getting

XX presuming growth growth? at basis I’m you more or that’s So when points of say European than midpoint, XX

what for, you’re that’s Yes. If looking yes.

range be a think overall, of midpoint, about the macro. is think an I going I is combination what impact to this around going have if to

affecting to think can’t lockdowns end, case, rule the further to the you a you positive pricing. downside If on consumption, At consider reasons. inflation for want out pandemic would I – like build

actions the further we’re all the fund mentioned think undertaking earlier. and have recovery push could I also we European a

us. I positive which done success, the are than could digitization, they would and allocate SME think for even governments more just to the have be they funding seeing

you. Thank

you. Thank

today question Street. next from go Our Ratzer comes James, from New please James ahead.

okay? name you Can

James. morning, Good

build-out Nick, in Germany potential Good mentioned some just plans? to if Margherita, stuff around update come an on morning, back your Yes. this thinking I get presentation. to on You possible could Would love again. if possible, FTTH

of talked associations. passed in your in about homes being think you housing I two-thirds November,

tested. third from that seems now be language might at it And a that specific think indicated about tightened you’ve the to that stage, bit interested. up little larger associations I you housing

about our scope might forward. So here? you scope going And X attractive it potentially a vote now, talk case. a JV get for of I that you seems if ARPU think to this might And is talk that to mean potential kind the about smaller DOCSIS uplift that include. just expansion, how footprint i.e., on large And that, confidence, be? Does business of in you’re update giving I so bigger imply

on Thank great please? So be it topic, update you. to that would get an

Yes, little let of on case But I touch the a just topic. James. talk engagement bit Margherita sort of business Important let with me Maybe drivers. about association. will just the housing

in So for now as of XX, many, conversation the of the actually building releases, of But is that want well. collective that for in say cable new not building. fiber with And I upgrade said you’ve we to is sort the that as to really we we an fiber. many We’ve been the mean few in, ask around associations want have will regulation would the do. say, you two is we’ve coming the plan we’ve housing billing. the very fiber suffice cable explained what overwhelmingly, around have are a the last upgrade said in road we’ve earnings that in been had which end, the engaged have July also the I definitely of And plan TV map interested I because more far expanding yes, so And process, had associations a our housing we on process, in logic to to the strong there network. I us. plan elimination

that They path. there or outside the for disturbance pass. upgrade upgrade no is that building the an fact the of have We building like to

that what And they of what’s largest point of much, covered. associations, partner. the when some majority my I we want upgrade building be XX% cable. are future, households conversation decision. make are have are yet our coming of conversation they your about the all But the out doing Still which there However, sort in in you is fiber contacted the overall I with having That of trade still majority of future. At us. have I natural represents could is the like a and the your option X,XXX what, housing be my a need. now, But building. might our to I absolutely refurbish may going upgrade and of to very

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a there that business four essentially is We case on have elements. built concluded

there value opportunity on clearly to The also catchment housing services. first we the footprint. but footprint, have and the There opportunity Nick customers. up-sell an anchor will we is one base and was off to footprint. to But associations. towards is go can be also areas this But responding higher around penetration rollout then those, those saying, is increased around off

finally, will progress have that’s network we well. are mobile there So with four us. refined concluded our seven situation the all, be as synergies, know, new discussions. further for you we as All demand but size, And in as with to on then this the

the be households? And new Thank very would that much to how of you. build seven one follow-up four quick versus of existing

still portion to need a you will see, in it. of decide, definitely, there We as a builds be it’s can But new range.

much. so Thanks Great.

Thank you.

Thank you very much.

Our Numis. comes from next John question ahead. please from today Karidis John, go

please. the for Thanks both. to wanted about question few questions, I and taking Kingdom good you. short ask morning, a United you Thank the just to specifically, ones,

funding Firstly, infrastructure access? view, you had that return XX% the you you. I’d thirdly, Vodafone you it fiber United earned there Ofcom trust acquiring why given build to Kingdom, to the that the to consolidate And they of this be love UK you Vodafone homes? employed and comes very if published just their infrastructure in return earned credible? network CityFibre millions to confirm a were UK? has right Vodafone Thank EE FTTP the know think just well-priced several in earned is higher that said then the quickly, do earlier piece and a expertise competitive you much confident capital example, they that market which to since not capital for TalkTalk thing, out than year, Secondly, in Three on that that more I when XXXX, on is zero mobile about to talk can and continue likely enough feel is to reasonably it have competitive are to So infrastructure, there do for even

three the Okay, John, through go me let components.

actually, position. So we’re first feel in of I an in really all, competitive infrastructure, terms to excellent access that fixed of

fixed We are extremely broadband. on growing fast

infrastructure is have to you onboard building and increasingly to economics. a to an base like, returns drive if their that attractive player We are,

more at they with say, to Europe. obviously, we to BT, much is a like contingent-type models to encourage engaging regulated It’s agenda in We well. to I’m And could rate. that our have very building we network people supporting on discounts larger speed. Ofcom are come as But have offer

said are network. You’ve to want keenly say, tenant. to They they anchor their engaged open could get who got Virgin they some Mobile

So CityFibre is building out as well.

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are mobile other a in-market we enough activities. already and big priorities Our agenda consolidation, in have

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is here. think I CMA factor important an clearly

I to went merger, to three other their their investment, at and U.S. the think example the players back down you where They players. investment. then the out T-Mobile have you saw as an look big did increased two increasing

infrastructure three networks, ensure is the have moved competitiveness. And the time and vulnerabilities think underpins industrial secure has therefore, the is much this they want resilient resilient therefore, regulators for to are narrative better governments very increasingly, the players? I going the scaled has very networks and global And that it looking the to think, country on. to much and understanding of are fragmentation. that benefits politicians, at strong, So that of strong with allow digital I governments, when agenda that are

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May very follow-up Sorry. I briefly?

course. Of

you. Thank

capital on by you. Vodafone evidence-based Given might few nothing. on Three of months, earned about they an that you that saying calculations, hopefully? sort Ofcom any will and return over is concern they more you have And has deal XX% earned start has them approach that say, next the earned the our regulator, how you than to Doesn’t that conversation employed. EE they bring

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Thanks you. it now. will I Thank leave much. very that from

Thank you.

you very Thank much.

from Emmet today Morgan Emmet, Stanley. question next go Our ahead. please comes Kelly from

Hi, Yes. morning, everybody. Hi, Nick. Margherita. Good

on my please, market. So question, is Italian the

maybe maybe us is If the few headwinds. looks seeing Clearly, line. and mobile there on still competitive backdrop improving give emerging But just on and you stable business updated could your it on a like fixed in thoughts intense what is macro the some you’re Italy. pretty at moment quite the side

on So XXXX, Italy see outlook just you the words for could say a in you. please? few you Thank how

Your home market?

need Sure. with I to say we pleased are our execution Italy. in

in seen the mentioned you have that You numbers.

we the delivered stable environment, service legal year perspective. settlement same share increased closed of the impact in at which you exclude once the the time, EBITDA the despite have, revenue We competitive market and from a have exceptional

revenue market. achieved and to the in players results outperform established So continuing by good both all the service on EBITDA

has benefit past the months. fund. XX recovery the have the course, of the outlook won’t our growth think competitive. benefit will market Just from remain This we in of the growing But if puts recur. I wholesale European benefit now focusing on of and here, the takes, about And the

performance over words many of operators vouchers next has use today. think impacting us well are directly Italy just these has business to the relatively call Stepping there. we would I our performing for Italy, is that in back, out a in like years. And the in million €X.X telcos, allocated couple so key connectivity, will very for times I €XXX billion. You Spain key hear allocated strong terms factor. of

digital. our through gaining You before there. know market of we that service particularly the recovery performing European revenue fund, share a and it’s well even And third were

we accelerate. I So, can’t we environment, into contested then loan. FWA. I move EBITDA, with our And very to give strategy, expanding are dual-brand then also consumer competing well EBITDA this if will the And in and are now

in operators the like. is You that’s this considered the well us as most in context. digitization to our we what has know continue work that industry will EBITDA stable allowed And one levers, efficiency and and Europe, deliver Italy the efficient on to in of

good So, I at Italy say, really performance in would the moment.

Yes. build and doing earlier made of And the maybe question are we the regarding just one sort base with what pricing an in you within Italy. comment on

We move. bold a are actually doing quite

course, legacy So, adds get lot companies like time, over of to a of the up complexity lot price That plans, of ours a etcetera. built operation.

really of and strong a team way a he radically said, under And find Aldo. have to management we simplifying try need really We down. look, really

we a of And cohort onto etcetera. price a customers, by services, a simplification plans. radical did base what analysis set whole are is lot doing products, we narrower the migrating So, of plans, of

execute we operation. we very lot transformation cleaner the more agile, efficiencies, doing, are on moving lot a think as estate I further lot As through a Margherita we mean we have is simpler forward. a what And a and top business will on of that will efficient drive already will said, that IT of top be that

business execution according So, going to plan. is that

many If that that confidence see where we we that We through, it in have have deploy got Europe working think markets through. execution, is for on months of planning which successful, the the there the rolling throughout our methodology is terms applications going could we of probably will I are nine been forward. that and we last in and

stay how relevant commercially drive we an group, in individual a markets. it’s how synergies of example learn and as we yes, So,

If very Perfect. quick on much just a Italy. follow-up Thanks ask both. I

might in alternative because offer a am at for the that that like merit the might your as JV decline You it just you ripe for deals I future? guess Iliad point you price see repair did business looks is offered. made that market are of was future, wondering, consider because there the the where the I such in there, some

I agree with you.

I pricing at too there mobile you you are And an usage. that talking think are Iliad’s money unsustainable many any average €X.XX in look you X that. Pricing at is market. make on players fixed level. on and currently in an gig, then And don’t for convergence,

due find combine to and and sustainable in diligence. back we to with have engaged stand market. more And from remain we are routes say People open to and to very been. force that are And to to you pragmatic will So, collaborate, that players have better have returns change. actively going things

Super. Thank you much. very

much. Thank you very

today Polo question go from ahead. Tang next Our UBS. please from comes Polo,

Hello.

a Were that about what are From Etisalat. conversations for X.X% your you do they think one you question with have them, took surprised stake? Just just their intentions Vodafone?

mean Polo, Well, explore explained go Saturday is commercial the and to a I in am portfolio the that technology is the wanted long-term call, management to opportunity know pains things the that that out. investment, them. there centers. believe And the a things we all to areas they the that would players. be was will industry There he opportunities. I of look think developing the relationship develop Hatem, R&D, look, sure all them, had got rationale on is procurement, maybe things execution, he do And there at communication stress I was X.X% position. an to on through Clearly, in those he a I right can the taken the they were doing know call moving fact Board, the he really that in that we passive as elements of were were with and us we that the this collaboration supportive that we going really therefore, opportunities And and from its forward do. forward. service strategy we to shared in

Thanks.

much. very you Thank

ahead. please Redburn. Delfas Nick, Our next from question today comes from Nick go

Thanks so much.

on hedging. on At not whether about secondly, you Turkey, what of HX, you view decide would had I hedge choice? And XXX million questions two that able flow to that Just the point to sterling you FY or in you euros do moment? convert difficulties Are to anticipate any that ‘XX? at cash freely And much. ‘XX. FY free very in for Thanks

Both for you.

December, Energy, effectively, rolling it’s FY that. had on decision all have to hedged are And crisis, and in you off always on changed the well say, time. Yes. not Since to hedges the when ourselves make to much And over very XX% not course, we intervene. are, would easy after Ukraine terms how rolling an the right, of of we And but we found coverage. have I crisis we at way pre-Ukraine moment, ‘XX. hedges covered,

going would mitigation to the that But on strategy. monitoring now very not closely. are It’s the say of is our I bulk efforts to We options. on alternative hedging going

focused and is that taxes big course, us pricing interaction And where European announcing then energy, think around get general a solar. support can aspect the renewables. second really long-term seen energy And stepping energy important recently of with can stable good UK recovery really be on structural sort there whether may subsidies Centrica consumption for You PPA on this this the Europe. funds together and in on goes between with We are we condition the for of have we structurally. And reductions. initiatives all are we and is everything up the more across the

So, always the so Turkey, we a at that’s current €XXX in in energy headwind. look from year, under this at materially sizing management Turkey, just we Clearly, equation. fiscal at of would currency. hard our for be million, it overall it In side, are clearly pricing side. it our

point. your has the deck operating on the looking specific we cash was need revenues of you also of describing. Turkey on with forward you to we particular below we to ensure technical one been another principles, to cost to able went a if in. This maintain have have front case all stable. ago our than ensuring a free we and inflation. know to I flow few drive hands You year, in that Egypt we we can come been have been the look out And really don’t the grow that ahead backwards better would crisis successful pretty strategy are position cash flow But years big inflation issues

take just which I The of seen months. you really have XXx the critical, pricing, raising six So, in was if pricing will is XX%. us example last March, time

in say, let’s mid-term, out other on So, with active come stronger generation. very the cash we in ensuring side that flow the,

noting then the government-owned because for are it’s healthy for I two entities, other just major of industry. players and beneficial overall overall and of it the quite probably the course, that’s that is And industry us. think worth healthy they And take what’s view a

Thanks.

the Just to follow-up hedging. on

So, €XXX QX. headwind the without million is

€XXX million million? that that would ‘XX, of And QX the for quarter roughly in tried you’ve it inflated a suppose. into uncertainty bake cost be XXX% your have FY I €XXX guidance, that’s you in addition the if to by So, to

Yes.

case million. that’s So, today, the energy includes forward the you rates year. on And €XXX have of effect the full central the if you take the

That’s €XXX million.

Yes. Okay. Understood.

play If because think I over also time, range down, further, that’s prices could that. were see go where go into to comes the or you up

Right. Thanks much. very

Thank you.

time David one today, Bank have which from from ahead. please go more We David, for question of come will Wright Lynch. America/Merrill

Hello guys, hopefully, working. you and is can me hear everything

And the reiterated just was if on Because specifically mid-term in say have just then understand presentation. quite have that question outlook, would that. of was what guidance really guess So, was X%. guidance you given the it and around it at ‘XX X-year a the timeline be useful to a it I and year the you full kind done

I think X%. year is of sort the guidance ‘XX full for

is achieve or digit. to some it have present you get back especially run pressures some be gets also how etcetera. little need that asset And to to extend high-single to slower digit obviously, I feels that high-single year, to are there. So, a high-single kind you ‘XX. TV to in the year to we this I headwinds, you with were you gap level, going am digit another a like EBITDA And mid-single just hedging of wondering those if rate, full of year so, speak to of bridge do going given are Germany, it I guess the kind But that growth, even which

outline specifically building and So, hit could more you. just Thank that the if you actually guidance it.

Sure.

as year years already said of And what reference horizon be necessarily mid-term a terms in years the starting of point very year-by-year midterms that wouldn’t X last of mean. the So, last starting ambition, was to X be we year wasn’t from our to logic it were progression FY we linear. point. then clear ‘XX. sort meant But Time

and in just seen do bridging, in Europe that which midpoint that first and Africa, have the that reasons had digit have the XXX you slower take basis today for step-up is including how of EBITDA guidance discussed, terms given, point. around have line FY exceeding In your for year energy. set X% that the we capital, the have year growth the closed or in we of against growth. to have big have all, is EBITDA the on likely we just which if one, Clearly, ‘XX of be well, return progression first And mid-single we ourselves, question we we the was stand we on

that also ‘XX expected circa billion However, increase if to flag take years. is let growth, over into cash underlying our the at free me look opportunity representing €X.X FY actually the XX% you the a flow X

our Why deferral morning, a about the in across million cash we had we growth is, of So, this €XXX as earlier ‘XX if a that digit you there. ‘XX taxes free flow in of Germany. we the are think mid-single and at payment midpoint guidance, have because, flagged it’s

from return are look now that. a our further moving increase And as of X.X €X midpoint on at be will mid-term to we effectively, underlying we we for on So, ambition. pretax, capital, at billion bang which again, the €X.X billion, is then above guiding

to well trajectory. we continue positioned think I So, that are in

cash to the free flow, how digit high-single I get the do understand Okay. But you EBITDA? but

on think on outlook these we that a for year, there ‘XX. had is may the our I of, for how beyond I the range example, FY can for turn EBITDA options say, inflation. impacts, years This have

You last other move direction. assess that switch will will the need price the some and or point, forever at energy example, to for into

here, we see the ranges. And talking we to we close about talking are ‘XX. also mid-term how think are about we therefore, first, and I need

already. have And range it evolves we we need longer that see how term. think I to then a around

we course of got EU funds. recovery And

outer-years that well. delivered We as ‘XX FY have in got further very we many would have levers digital There on that transformation. is focused be

so quick the had by strategy? that to Is keep Vodafone Vantage reseller deliver Germany shift Can think investors And kind the by they had that that sort I a on of down most able was of sneak yesterday, to I I as in was the from driven they slightly were shift hybrid into they of to am weren’t reseller have have model one, just that I this just to just And potentially guys you of essentially, the move build-to-suit. wondering, model? on kind sort foot very a intrigued XG? it push to

a with that David, performance and obligations them that’s Germany What they Obviously, came find it at from approvals ease X,XXX builds. of we from. which go Obviously, and slow the can to have through. optionality, target saying and build flexibility the do give Vantage, doing you It has know country them to much notoriously are X,XXX very it’s was it. as that really Vodafone came so need do is towers not coverage on bring nearly ourselves to X takes moving were the don’t you came it’s it’s spectrum. a But just The locations where BTSs want to it. operational down. to working And source permits, case forward, to to do have They an the if option to up you look, and depends obligation. to years. or get government we

I guys. Thank you, appreciate Super. that. Okay.

Margherita good many year myself. joining financial had a employed. the ‘XX growth of with strong return last question, capital very We was the much thank parameters and in on and, given you FY importantly, So, in that for

portfolio And backdrop. Our on both firmly macroeconomic we challenging priorities moving and operational and focused forward guidance a executing through. priorities points our to on very our growth clear even remain are with

on to our So, you we forward in updating quarters progress. future look Thank you.