Vodafone announces results for the year ended 31 March 2016

Highlights

Group organic total revenue grew 2.3%* to £41.0 billion; full year organic service revenue grew 1.5%*

Q4 organic service revenue grew 2.5%*; stabilisation in Europe +0.5%*, AMAP accelerated to +8.1%*

Q4 driven by underlying improvement, up 1.8%* excluding adjustments primarily from a leap-year effect

Organic EBITDA growth of 2.7%* to £11.6 billion; H2 EBITDA up 3.6%*

EBITDA on a guidance basis £11.9 billion, upper end of £11.7 - £12.0 billion guidance range

Free cash flow £1.0 billion, consistent with ‘positive’ guidance; capital expenditure £8.6 billion, down 6.5%

Net debt of £29.2 billion, up 31.0% impacted by spectrum acquisitions and foreign exchange movements

Final dividend per share of 7.77 pence, up 2.0%, giving total dividends per share of 11.45 pence

Successful completion of Project Spring build targets supports growth recovery:

46.8 million 4G customers, 4G coverage 87% in Europe; 72.5 million 3G data users in emerging markets

13.4 million broadband customers; high speed broadband available to 30 million on-net homes in Europe

All customer network experience targets met: 91% of data sessions are >3 Mbps in Europe

Net Promoter Score (NPS) leader in 13 out of 21 markets, with improved NPS in 15 markets during the year

Strong commercial momentum in strategic focus areas:

Data volumes up 71% in the year

Enterprise outperforming the market; revenue growth +2.1%* in the year; Vodafone Global Enterprise +5.9%*

Unified communications: a record 1.3 million new fixed broadband customers in the year, fastest growing

broadband provider in Europe

Enhancing fixed services capability; new agreements in the Netherlands and Italy

Strong cost efficiency and acquisition synergies drive EBITDA to grow faster than revenues; raising synergy targets at KDG and Ono

Guidance for the 2017 financial year5

Move to euro reporting for the year ending 31 March 2017, as previously announced

Organic EBITDA growth in the range of 3-6%, implying €15.7 - 16.2 billion (£12.4 - 12.8 billion) at guidance FX

rates

Free cash flow after capex, before M&A, spectrum and restructuring costs of at least €4.0 billion (£3.2 billion)

Post Project Spring capital intensity expected to be in the mid-teens as a percentage of annual revenue

Dividends to be declared in euros for the year-ending 31 March 2017 and thereafter; intention to grow dividends per share annually (relative to a 2016 ‘baseline’ of 14.48 eurocents per share), demonstrating confidence in future cash flow generation

Vittorio Colao, Group Chief Executive, commented:

"This has been a year of strong execution for the Group, returning to organic growth in both revenue and EBITDA for the first time since 2008. We achieved the first quarter of positive revenue growth in Europe since December 2010 while growth in AMAP accelerated with strong performance in South Africa, Turkey and Egypt. EBITDA margins also grew year-on-year, supported by our cost efficiency programmes.

We have now successfully concluded our Project Spring organic investment programme. This has transformed the quality of our technology, enhancing our customers' experience and enabling us to expand our Enterprise services. We are pleased to be the leader or co-leader in mobile network quality tests and Net Promoter Scores in the majority of our markets. We have also posted a record quarter of net additions in fixed as our convergence strategy continues to accelerate.

Looking forward, we will continue to invest in our customer excellence programmes in both mobile and converged services. I am confident we will sustain our positive momentum in the coming year, allowing us to maintain attractive returns for our shareholders.’"

For further information:

Investor Relations
Telephone: +44 7919 990230

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