Info Re: Preliminary Results

Vodafone Group Plc 23 May 2007 23 May 2007 INFORMATION RELATING TO PRELIMINARY RESULTS Vodafone Group Plc ('Vodafone') is publishing today additional information to assist investors and analysts in their understanding of Vodafone's results for the year ended 31 March 2007 and outlook statement for the year ending 31 March 2008 ('2008 financial year') to be announced on 29 May 2007. Regional structure In April 2006, Vodafone announced a revised organisational structure, principally aimed at creating a Europe Region and an Eastern Europe, Middle East and Africa, Asia, Pacific and Affiliates ('EMAPA') Region, effective from 1 May 2006. Arcor, the Group's fixed line business in Germany, was managed independently from these two regions and therefore financial information for Arcor was presented separately. With effect from October 2006, Arcor has been managed within the Europe Region and consequently the preliminary results will present segmental financial information, including comparative information, for the Group in accordance with this structure. Certain unaudited comparative information for the year ended 31 March 2006 and the six months ended 30 September 2006 is provided below on this basis. Basis for outlook statement The Group has previously stated that its outlook statement on revenue and profitability will move from a proportionate basis to a statutory basis with effect for the 2008 financial year. The outlook for profitability will be based on adjusted operating profit, which is representative of all the Group's businesses, rather than statutory EBITDA, which excludes the results from associates. There will be no change in basis for capital expenditure or cash flow. The Group's outlook will reflect current expectations for average foreign exchange rates for the 2008 financial year. Accordingly, the Group will provide an outlook statement based on the following measures and in the format illustrated: * Group revenue £ * to * billion * Group adjusted operating profit £ * to * billion * Capitalised fixed asset additions £ * to * billion * Free cash flow £ * to * billion The Group will provide an estimate for total depreciation and amortisation. The outlook for free cash flow and capitalised fixed asset additions will be stated including the impact of any known spectrum or licence purchases only. Following completion of the Hutchison Essar acquisition on 8 May 2007, its results will be consolidated and reflected in the outlook statement from that date. For further information: Vodafone Group Investor Relations Media Relations Tel: +44 (0) 1635 664447 Tel: +44 (0) 1635 664444 The financial information contained in this document is for convenience only and does not contain sufficient information to allow a full understanding of the historical results and state of affairs of Vodafone and the Vodafone Group. For more detailed information, including definitions of terms, regarding the financial results of the Vodafone Group for the financial periods referred to in this announcement, please refer to Vodafone's Annual Report for the year ended 31 March 2006 or Vodafone's interim results announcement for the six months ended 30 September 2006 relating to such financial period, as appropriate, which in each case can be found on our website (www.vodafone.com). TRADING RESULTS SIX MONTHS ENDED 30 SEPTEMBER 2006 Common Europe(1) EMAPA functions Eliminations Group £m £m £m £m £m Voice revenue 8,968 2,436 - (34) 11,370 Messaging revenue(2) 1,458 331 - (3) 1,786 Data revenue (2) 603 56 - (9) 650 Fixed line operators and DSL revenue 683 34 - - 717 --------------------------------------------------------- Total service revenue 11,712 2,857 - (46) 14,523 Acquisition revenue 466 176 - - 642 Retention revenue 174 8 - - 182 Other revenue 132 34 86 (5) 247 --------------------------------------------------------- Total revenue 12,484 3,075 86 (51) 15,594 Interconnect costs (1,880) (520) - 46 (2,354) Other direct costs (899) (353) - 5 (1,247) Acquisition costs (1,243) (313) - - (1,556) Retention costs (763) (91) - - (854) Operating expenses (2,765) (698) 122 - (3,341) --------------------------------------------------------- EBITDA 4,934 1,100 208 - 6,242 Acquired intangibles amortisation (8) (189) - - (197) Purchased licence amortisation (443) (24) - - (467) Depreciation and other amortisation (1,408) (364) (72) - (1,844) Share of result in associates 2 1,405 - - 1,407 --------------------------------------------------------- Adjusted operating profit 3,077 1,928 136 - 5,141 Adjustments for: - - Non-operating income of associates - 6 - - 6 - Impairment losses (8,100) - - - (8,100) - Other income and expense - - 1 - 1 --------------------------------------------------------- Operating profit/(loss) (5,023) 1,934 137 - (2,952) ========================================================= TRADING RESULTS YEAR ENDED 31 MARCH 2006 Common Europe(1) EMAPA functions Eliminations Group £m £m £m £m £m Voice revenue 17,827 3,636 - (58) 21,405 Messaging revenue(2) 2,836 454 - (1) 3,289 Data revenue(2) 1,023 86 - (11) 1,098 Fixed line operators and DSL revenue 1,271 19 - - 1,290 --------------------------------------------------------- Total service revenue 22,957 4,195 - (70) 27,082 Acquisition revenue 1,018 277 - - 1,295 Retention revenue 434 14 - - 448 Other revenue 324 68 145 (12) 525 --------------------------------------------------------- Total revenue 24,733 4,554 145 (82) 29,350 Interconnect costs (3,739) (794) - 70 (4,463) Other direct costs (1,666) (442) - 12 (2,096) Acquisition costs (2,501) (467) - - (2,968) Retention costs (1,752) (139) - - (1,891) Operating expenses (5,243) (1,053) 130 - (6,166) --------------------------------------------------------- EBITDA 9,832 1,659 275 - 11,766 Acquired intangibles amortisation (2) (155) - - (157) Purchased licence amortisation (884) (63) - - (947) Depreciation and other amortisation (3,000) (602) (72) - (3,674) Share of result in associates 5 2,398 8 - 2,411 --------------------------------------------------------- Adjusted operating profit 5,951 3,237 211 - 9,399 Adjustments for: - - - Non-operating income of associates - 17 - - 17 - Impairment losses (23,515) - - - (23,515) - Other income and expense 3 - 12 - 15 --------------------------------------------------------- Operating profit/(loss) (17,561) 3,254 223 - (14,084) ========================================================= Notes: (1) Within the Europe region, certain revenue and costs relating to Arcor have been reclassified. All prior periods have been adjusted accordingly. The reclassification had no effect on total revenue, EBITDA or adjusted operating profit. (2) Certain revenue relating to content delivered by SMS and MMS has been reclassified from messaging revenue to data revenue. All prior periods have been adjusted accordingly. REGIONAL ANALYSIS Adjusted operating Capitalised fixed Revenue EBITDA profit asset additions Free cash flow(1) ------------------ ----------------- ------------------ ------------------- ------------------ Six Six Six Six Six months Year months Year months Year months Year months Year ended ended ended ended ended ended ended ended ended ended 30-09-06 31-03-06 30-09-06 31-03-06 30-09-06 31-03-06 30-09-06 31-03-06 30-09-06 31-03-06 £m £m £m £m £m £m £m £m £m £m EUROPE Germany 2,827 5,754 1,263 2,703 724 1,496 198 592 990 2,167 Italy(2) 2,174 4,363 1,128 2,270 839 1,672 184 541 878 1,808 Spain 2,268 3,995 813 1,373 585 968 213 502 432 958 UK 2,549 5,048 785 1,623 318 698 305 665 393 942 Arcor 706 1,320 126 228 83 139 76 129 (16) 56 Greece 636 1,233 250 470 167 317 74 108 160 336 Netherlands 600 1,174 176 369 102 219 50 124 136 224 Portugal 466 899 168 286 107 163 44 115 101 153 Other 519 1,400 225 510 152 279 55 164 146 310 Intra-region revenue (261) (453) - - - - - - - - ------------------ ----------------- ------------------ ------------------- ------------------ Total Europe 12,484 24,733 4,934 9,832 3,077 5,951 1,199 2,940 3,220 6,954 EMAPA Romania(3) 355 533 175 254 68 88 82 104 121 159 Turkey(4) 283 - 65 - (18) - 36 - 134 - Egypt 355 555 198 307 155 212 66 167 137 190 South Africa(2) 727 1,070 261 388 152 271 92 202 139 178 Pacific 666 1,335 165 362 66 140 104 247 61 112 Other subsidiaries 397 675 120 195 41 42 77 132 72 61 Other joint ventures(2) 294 387 116 153 59 86 101 101 27 60 United States - - - - 1,015 1,732 - - - - Other Associates - - - - 390 666 - - - - Intra-region revenue (2) (1) - - - - - - - - ------------------ ----------------- ------------------ ------------------- ------------------ Total EMAPA 3,075 4,554 1,100 1,659 1,928 3,237 558 953 691 760 Common functions 86 145 208 275 136 211 67 112 110 (19) Inter-region revenue (51) (82) - - - - - - - - ------------------ ----------------- ------------------ ------------------- ------------------ Total Group 15,594 29,350 6,242 11,766 5,141 9,399 1,824 4,005 4,021 7,695 ================== ================= ================== =================== Net interest paid (186) (349) Tax paid (1,217) (1,712) Dividends received and other 337 784 ------------------ Free cash flow - Continuing operations 2,955 6,418 - Discontinued operations(5) (8) 701 ------------------ 2,947 7,119 ================== Notes: (1) For the Group's operating companies and common functions, the cash flows presented reflect operating free cash flow (2) The results of joint ventures have been included using proportionate consolidation (3) Includes periods in the 2006 financial year where accounted for as a joint venture (4) Presents the results from 24 May 2006, being the date of acquisition (5) Discontinued operations represent Vodafone Japan This information is provided by RNS The company news service from the London Stock Exchange

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