Vodafone Group Public Limited Company

- Vodafone’s focus is on organic execution and driving double-digit organic free cash flow growth. - The company aims to maintain a strong balance sheet going forward. - The UK buyout deal (GBP 4.2 billion) was planned and temporarily increased leverage but will normalize by FY ’27 through proceeds from asset sales (Netherlands) and growth. - Target leverage remains in the lower half of the leverage range. - No indication of immediate plans for new large-scale fundraising through debt or equity. - The company prioritizes organic growth and disciplined portfolio management over new major M&A. - Emphasis on flexibility for growth opportunities, especially in B2B and emerging markets, funded within current capital allocation strategy.

- U.K. will have peak CapEx in fiscal ’27 due to network upgrades but aims to maintain flexibility for future growth opportunities. - Continued investments in Africa to support strong double-digit growth, fueled by demand for connectivity and next-generation networks. - Increased focus on B2B investments including digital services, customer experience, sales specialists, partnerships, and M&A (e.g., Germany cloud scaling). These investments may be more OpEx-heavy rather than requiring significant CapEx. - Capital intensity by market is expected to remain broadly stable after the U.K. CapEx peak, partially due to fiber upgrades being done off-balance sheet (e.g., Germany via OXG). - Ongoing productivity initiatives and IT simplification to improve operational efficiency. - The group maintains a strong balance sheet aiming for double-digit organic free cash flow growth, supporting both organic execution and selective bolt-on M&A.

- **U.K. Growth:** Expected to grow in fiscal ’27 with a step-up in B2B revenues as Vodafone laps the termination effects of managed service contracts; revenue synergies from Vodafone 3 integration boosting growth. - **Africa:** Increased exposure through Safaricom acquisition; structural growth driven by population growth, rising smartphone penetration, and growing data usage; Africa accounts for ~1/3 of group profits. - **Germany:** Top-line expected to remain under pressure in FY ’27 with negative retail service revenue growth due to mobile market conditions; B2B and consumer broadband returning to growth. - **Europe Overall:** Midpoint guidance sees Europe broadly stable with momentum building, supported by U.K. synergies and growth drivers like B2B digital services and cloud partnerships. - **B2B:** Strong demand and investment focus, especially in digital services, expected to drive growth across Europe, Africa, and Turkey. - **CapEx:** Peak in U.K. this year; investment growth focus in high-growth markets like Africa while maintaining flexibility. Overall, Vodafone is confident in midterm double-digit organic adjusted free cash flow growth reflecting operational progress and strategic simplification.

- Vodafone expects strong growth in fiscal 2027 and beyond driven by its transformed, simpler, and stronger business model. - Double-digit organic growth in adjusted free cash flow is targeted over the midterm. - UK is expected to grow in fiscal 2027 with revenue synergies accelerating and market repair supporting growth. - The B2B segment, especially digital services, is a key growth driver across Europe and Africa. - Germany faces EBITDA pressure in fiscal 2027, but B2B and consumer broadband are growing, supported by increased prices and improved customer satisfaction. - Africa and Turkey continue to deliver strong double-digit growth, contributing around one-third of group profits. - Overall, group adjusted EBITDA and adjusted free cash flow are projected to grow well, with Europe broadly stable and growth in emerging markets. - Capital intensity remains stable with peak CapEx in UK in fiscal 2027, then declining, enabling free cash flow growth.

The provided pages from the Vodafone report do not explicitly mention details regarding the current order book or expected/pending orders. The discussion focuses on: - Growth outlook and revenue synergies, especially in the U.K. and Africa. - Capital allocation and investment priorities, particularly in B2B and network infrastructure. - Market positioning and operational progress in key regions like Germany and the U.K. - Emphasis on maintaining flexibility to adapt to market conditions and AI integration. - Focus on organic growth, portfolio simplification, and strategic M&A activities. No specific data or commentary about order book size, expected orders, or pending orders is included in the supplied text.