2010 Vodafone International Academy of Management & Entrepreneurship Shrikant Kumar PGPM/0911/026 2009-2011

CONTENT INTRODUCTION VISION PASSION TURN OVER OF THE COMPANY HISTORY MILESTONE BUSINESS MODEL ORGINATION STRUCTURE MARKETING ANALYSIS PRODUCT PROFILE TARGET CUSTOMER PO SITIONING STRATEGY MARKET SHARE OF COPETATIORS FINANCIAL ANALYSIS Vodafone Curre nt Ratio Vodafone total asset turnover ratio Vodafone Debtors' Turnover Ratio VA LUE CHAIN OUT OSURCING QUALITY MANAGEMENT SWOT FUTURE OUTLOOK 2|Page

VODAFONE Vodafone Group plc is a British multinational mobile network operator headquarte red in Newbury, Berkshire, United Kingdom. Vodafone is the world's largest mobil e telecommunication network company, based on revenue, and has a market value of about 71.2 billion (November 2009). It currently has operations in 31 countries and partner networks in a further 40 countries. Based on subscribers, it is the world's second largest mobile phone operator behind China Mobile, with over 427 million subscribers in 31 markets across 5 continents as of 2009. In the UK, its home ground, Vodafone has badly underperformed in the last few years due to bri sk change in administration. It has slipped from first to third largest telecom operator generating revenue of 4.9 billion from its 18.7 million customers in 200 8-09. As of March 31, 2009, the company employs more than 79,000 people worldwid e. The name Vodafone comes from voice data fone, chosen by the company to "reflec t the provision of voice and data services over mobile phones. 3|Page

OUR VISION To enrich our customers lives through unique power of mobile communication. OUR PASSION 1. FOR CUSTOMERS: In anticipation of their customers trust Vodafone understands their needs & delig hts themes with its services. 2. FOR OUR PEOPLE: Outstanding people working together make Vodafone exceptionall y successful. 3.FOR RESULTS: Vodafone believes in being action oriented & is driven by a desire to be the BEST. 4. FOR THE WORLD AROUND US: Vodafone believes helping people of the world to have fuller lives through their services & its impacts. 4|Page

Turn Over OF the Company In Millions of GBP (except for per share items) 6 months ending 2009-09-30 Revenue Other Revenue, Total Total Revenue Cost of Revenue, Total Gross Profit S elling/General/Admin. Expenses, Total Research & Development Depreciation/Amorti zation Interest Expense(Income) - Net Operating Unusual Expense (Income) Other O perating Expenses, Total Total Operating Expense Operating Income Interest Incom e(Expense), Net Non-Operating Gain (Loss) on Sale of Assets Other, Net Income Be fore Tax Income After Tax Minority Interest Equity In Affiliates Net Income Befo re Extra. Items Accounting Change Discontinued Operations Extraordinary Item Net Income Preferred Dividends Income Available to Common Excl. Extra Items Income Available to Common Incl. Extra Items Dilution Adjustment Diluted Weighted Avera ge Shares Diluted EPS Excluding Extraordinary Items Diluted EPS Including Extrao rdinary Items Dividends per Share - Common Stock Primary Issue Gross Dividends Common Stock Net Income after Stock Based Comp. Expense Basic Normalized EPS Di luted Normalized EPS 5|Page 21,761.00 21,761.00 14,115.00 7,646.00 4,057.00 0 -157 15,693.00 6,068.00 -948 7 5,747.00 4,795.00 25 4,820.00 4,820.00 4,820.00 4,820.00 5,276.00 0.91 0.27 0. 91

History Vodafone was formed in 1984 as a subsidiary of Racal Electronics Plc. Then known as Racal Telecom Limited, approximately 20% of the company's capital was offere d to the public in October 1988. It was fully demerged from Racal Electronics Pl c and became an independent company in September 1991, at which time it changed its name to Vodafone Group Plc. Following its merger with Air Touch Communicatio ns, Inc. (Air Touch), the company changed its name to Vodafone Air Touch Plc on 29 June 1999 and, following approval by the shareholders in General Meeting, rever ted to its former name, Vodafone Group Plc, on 28 July 2000. 1982: As Racal Tele comm, awarded the first mobile license in the UK 1985: First mobile analogue cal l in the UK 1987: Launched Vodapage, a paging network covering 80% of the countr y 1988: Listed on the stock exchange 1991: Separated from Racal Electronics and since then quoted as Vodafone 1993: Introduction of digital mobile services in t he UK and first international partnership. 1999: Merged with Air Touch Communica tions, producing a new company, Vodafone Air touch plc 2000: Began operating as the Vodafone group Plc 2002: Introduced Vodafone Live! 2004: Commercially launch ed its 3G services in Europe 2005: Launched fixed mobile convergence product in Germany called Zuhause. 2006: Sold its Japanese unit to Softbank and Swedish uni t to Telenor. 2007: Acquired controlling interest Hutchison Essar Limited in Ind ia; acquired Tele2 fixed line operations in Italy and Spain. Key milestones in the development of Vodafone 2005 December Vodafone announces completion of acquisition of 10% economic inter est in Bharti Tele-ventures in India Vodafone will be McLaren Mercedes Title Spo nsor Acquisition of the assets of Telsim in Turkey Vodafone launches global Mobi le TV Sir John Bond succeeds Lord MacLaurin as Chairman. November Vodafone annou nces new football sponsorship with the UEFA Champions League. October Sale of Vo dafone Sweden Acquisition of a 10% economic interest in 6|Page

Bharti Tele-Ventures in India. July Vodafone reaches 165 million proportionate c ustomers Vodafone announces new four year sponsorship of the England Cricket Tea m May Vodafone completes acquisition of control of MobiFon in Romania and Oskar in the Czech Republic Vodafone launches Vodafone Simply January Vodafone reaches 150 million customers - strongest quarter since December 2000 2006 December Sale of 25% stake in Switzerland's Swisscom. November Competition of sale of 25% sta ke in Belgium's Proximus. September Vodafone launches first Vodafone-only brande d 3G consumer handset Vodafone reports 10 million Vodafone Passport customers Vo dafone to deliver fixed-line broadband services in the UK. June Proposed Return of Capital via a B share scheme announced . May Vodafone announces completion of acquisition of the assets of Telsim in Turkey Vodafone and Softbank agree to fo rm mobile partnership. April Completion of sale of Vodafone Japan to Softbank . March The number of Vodafone live! customers with 3G reached 10 million. Februar y Impairment review and update to outlook . January Completion of sale of Vodafo ne Sweden. 2007 December A consortium led by Vodafone Group is awarded the secon d mobile phone license in Qatar Indus Towers Limited, an independent tower compa ny in India is formed between Vodafone, Idea and Bharti . October Vodafone agree s to acquire Tele2 Italia SpA and Tele2 Telecommunication Services SLU from Tele 2 AB Group. May Vodafone announces completion of the acquisition of Hutch Essar from Hutchison Telecommunications International Limited Vodafone launches first ultra-low cost handsets. February Safaricom, Vodafone's partner in Kenya announc es the launch of MPESA, an innovative new mobile payment solution that enables c ustomers to complete simple financial transactions by mobile phone Vodafone agre es to buy a controlling interest in Hutchison Essar Limited, a leading operator in the fast growing Indian mobile market Vodafone announces agreements with both Microsoft and Yahoo! to bring seamless Instant Messaging (IM) services to the m obile which can be accessed from both the PC and mobile handsets Vodafone signs a series of ground-breaking agreements which will lead to the mobilising of the internet. YouTube agrees to offer Vodafone customers specially rendered YouTube pages on their mobile phones. With Google, Vodafone announces its intention to d evelop a location-based version of Google Maps for. With eBay, 7|Page

Vodafone announces it is to offer the new eBay mobile service to customers, With MySpace.com Vodafone 2008 December Vodafone completes acquisition of additional 4.8% stake in Polkomtel . November Vodafone to acquire an additional 15% Stake in Vodacom Group which will increase Vodafone's shareholding from 50% to 65%. Vo dacom Group will be listed on the Johannesburg Stock Exchange and the remaining 35% of Vodacom Group will be demerged by Telkom to its shareholders. October Vod afone launches the new exclusive BlackBerry Storm smartphone from Research In Moti on. August Completion of the acquisition of a 70 percent stake in Ghana Telecom. July Vittorio Colao succeeds Arun Sarin as Group Chief Executive Vodafone acqui res a 70% stake in Ghana Telecom for $900 million. June Vodafone and Apple(R) an nounce the iPhone 3G will be available in Australia, Italy, New Zealand and Port ugal on July 11, and in the Czech Republic, Egypt, Greece, India, South Africa a nd Turkey later this year. Vodafone announces that Verizon Wireless, its affilia te in the US, has agreed to acquire Alltel Corp. for a total enterprise value of US$28.1 billion in cash and assumed debt. May Vodafone announces that it has ag reed to acquire the 26.4% interest in Arcor that it does not already own from De utsche Bahn AG and Deutsche Bank AG for a cash consideration of 474 million. 2009 June Completion of merger between Vodafone Australia Limited and Hutchinson 3G Australia Pty Limited. March Telefonica and Vodafone announce milestone Pan Euro pean collaboration to share network infrastructure in Germany, Spain, Ireland an d the UK. February Hutchinson and Vodafone agree to merge Australian telecom ope rations to form a 50:50 joint venture. January Vodafone trials HSPA+ mobile broa dband at speeds of up to 16 Mbps. 8|Page

Business models Access to communications in emerging markets Our research demonstrates that the needs of customers in emerging markets can be quite different from those in developed markets. This means we need to adopt di fferent business models affecting network development, customer service and pric e plans according to local needs and what customers can afford. These are some e xamples of how we are tailoring our services to emerging markets: Pre-pay Provid ing flexible payment options helps to overcome credit barriers. For example, a p re-pay business model enables people to top up the credit on their phones as and when they need to, or are able to, rather than committing customers to a standa rd monthly charge. Pre-pay options (via cards, vouchers or electronic top-up sch emes) are available in all our markets. We offer lower denomination pre-pay card s in emerging markets, to enable poorer customers to pay for just a small amount of call time at once. Reverse charge (No airtime? No problem!) Reverse charge e nables people to make critical calls even when they have run out of credit. For example, Vodacom in South Africa offers a service where contract customers are b illed for reverse charge calls made to them by family and friends. Customer serv ice vans for rural regions We are bringing mobile services to rural communities in India through traveling phone shops. Vans drive from village to village in re mote parts of the country, reaching people that otherwise would not have access to mobiles. As the vans run as a franchise, they also provide the opportunity fo r local people to set up a small business. Self-service kiosks to top up pre-pay cards Vodafone Essar operates selfservice phone kiosks in urban areas in India, which are open 24 hours a day. The kiosks offer a convenient, affordable way to top-up and provide information services for customers. Free callback requests O ur Please Call Me service in South Africa enables customers to send a free text me ssage asking the recipient to call them back, even when the sender has run out o f credit. The cost of running the service is covered by advertising that is incl uded alongside the Please Call Me message. A similar service in Egypt enables cust omers to send up to three free Please Call Me text messages a day as part of our W ayak initiative. 9|Page

Community phones Many people cannot afford a mobile phone but have access to mob ile services by sharing with family or friends, or through community phone shops where you can pay per call. Community phone shops enable affordable telecommuni cations in poor, rural and under-serviced areas where there are few or no fixed line phones. In South Africa, our joint venture Vodacom provides training and su pport for local people to run phone shops as a franchise business. In India, we offer the Vodafone PCO, a phone that looks like a fixed-line handset, but is con nected to the Vodafone network. It is aimed at entrepreneurs that can install it at their shops or homes. Network sharing Vodafone Essar is involved in a networ k-sharing partnership that aims to improve mobile coverage and quality in India, particularly in rural areas. Vodafone has a 42% share in Indus Towers, an indep endent company responsible for the construction of Indias new mobile towers and t he maintenance of existing ones belonging to Vodafone Essar, Bharti Airtel and I dea Cellular. Organization structure 10 | P a g e

Marketing Analysis Product Profile Company Profile will assists individual investors, managers and companies in eva luating opportunities, trends, market innovations, and selecting appropriate inf ormation solutions in order to make effective decisions. The report has been mad e after extensive research using the data available from reliable publications, trade associations and the companies sources. The report elaborates on the compan y's business structure and operations, products and services. The report include s key financial information and strategic analysis that intends to aid investors to find better prospects with the company and gain an insight into the corporat e policies. Target Customers Positioning Vodafone as a younger, more dynamic network, based on brand personal ity and attitude, would have greater appeal for Vodafone's core 18 to 39 age tar get. Positioning Strategies First brand in the category to develop a personality-based brand positioning. Po sitioning Vodafone as a younger, more dynamic network, based on brand personalit y and attitude, would have greater appeal for Vodafone's core 18 to 39 age targe t. It would also further encourage the perception that Optus was moving in the d irection of Telstra's older, more conservative position. Market Share of each competitors Customer 32466 Market Share(%) 22.8 AIRTEL Reliance BSNL VODAFONE IDEA TATA AIRCEL 11 | P a g e 29980 25551 23306 12442 10249 4513 21.1 18.0 16.4 8.8 7.2 3.2

FINANCIAL ANALYSIS Vodafone Current Ratio Work through the data for Vodafone and calculate their current ratio for the two years for which you have data. Vodafone Consolidated Balance Sheet Total Curren t Assets Creditors: Amounts falling due within one year Fill in this table and d iscuss what you find: 31 March 31 March 2002 2001 m m 9,438 18,182 13,455 12,377 Current Ratio For Vodafone 31 March 2002 Current Assets: Current Liabilities ___ __: ___: 1 _____ 31 March 2001 Current Assets: Current Liabilities _____: ___: 1 _____ Vodafone has done almost the exact opposite of the Carphone Warehouse wit h its current ratio. This additional information might help your analysis. Curre nt assets Stock Debtors due within one year Short-term investments Cash at bank and in hand Total Current Assets Creditors: Amounts falling due within one year Net current assets (liabilities) 2002 m 513 7,053 1,792 80 9,438 13,455 -4,017 20 01 m 316 4,587 13,211 68 18,182 12,377 5,805 Vodafone has liquidated, or sold, many of its short-term investments. This busin ess has grown at a very rapid rate and has possibly used the cash from having so ld its investments to finance that expansion. Overall, Vodafone has lost almost 1 0 billion of working capital as it has fallen from 5.8 billion to 4.0. This has le ft Vodafone in a weak working capital position as its creditors are large but it s cash and short-term assets balances are small by comparison. 12 | P a g e

Vodafone total asset turnover ratio Let's see what we find when we analyse Vodafone's total asset turnover ratio. Go to the database and find the data you need for these calculations then calculat e the total asset turnover ratios and tell us what you have found. Did you think these were terrible results? Me too! Especially when we compare it with the Car phone Warehouse's results which were 1.56 and 2.57 for its latest two years resp ectively - significantly better than Vodafone's turnover ratio results. History shows us Vodafone's total asset turnover ratio looks like this: Vodafone plc 200 2 2001 2000 1999 1998 Total Asset Turnover Ratio 0.14 0.09 0.05 0.91 0.96 It's b een terrible for three years now, but it might be that 2001 was the worst year. Vodafone Debtors' Turnover Ratio Vodafone is consistent... consistently terrible when compared with the Carphone Warehouse. Can it really be true that a mobile telecommunications business waits three months for its debtors to pay their accounts? After all, the demand for m obile phones is such that Vodafone can insist on its payment terms can't they? H ere's some additional information taken from Vodafone's annual report that will help us to sort this mess out! 2002 m 3,389 ... 6,095 2001 m 1,852 ... 3,701 Debtors due within one year: Trade debtors ... Total Debtors Do what the financial analyst did for the Carphone Warehouse and rework the debt ors' turnover ratio and find the length of time that trade debtors take to pay t heir accounts ... is it more sensible and realistic than three months? Put the d ata into the same format as before: 13 | P a g e

Vodafone Turnover TRADE Debtors due within one year Debtors Turnover Ratio for V odafone 31 March 2002 31 Mar 2002 m 22,845 3,389 31 Mar 2001 m 15,004 1,852 3,389 54.15 days 22,845 365 31 March 2001 1,852 45.05 days 15,004 365 A lot bett er and much nearer to what we should expect and ... still a lot longer than the Carphone Warehouse. Try to find out what is it about Vodafone that makes their T rade debtors payment terms so generous when compared with the Carphone Warehouse . Remember that we talked about the liquidity of debtors when we discussed the a cid test ratio. Now we can see that the Carphone Warehouse's debtors are not tha t liquid. VALUE CHAIN We spend more than 2 billion on goods and services from suppliers every year incl uding handsets, network infrastructure, IT, general and marketing services. We h ave over 1,550 suppliers worldwide. Our reputation as a responsible business is dependent on suppliers meeting high environmental and labour standards. We asses s all our suppliers regularly to identify potential corporate responsibility ris ks and use our influence to encourage them to improve their performance. There i s always the possibility that some companies in our supply chain may not meet ac ceptable standards on the environment or human rights. We adopt a risk-based app roach concentrating on suppliers who present a higher risk of unethical conduct due to their location, the type of product or service they supply, or the size o f their contract with Vodafone. Our main focus is on tier 1 suppliers (those wit h whom we deal directly) but we can influence standards further down the supply chain by:encouraging suppliers to develop their own supply chain programmes part icipating in the Global esustainability initiative, an industry collaboration. 14 | P a g e

Many larger suppliers also work with other Vodafone operating companies, so much of our supplier engagement is carried out at Group level. Code of Ethical Purch asing Our Code of Ethical Purchasing (CEP) describes the standards that companie s must meet if they are to be a part of the Vodafone UK supply chain. It is incl uded in all our supplier contracts. The Code is base on Group values and interna tional standards set by the United Nations and the International Labour Organisa tion. It covers issues relating to human rights, working conditions, the environ ment and corruption. We may terminate a contract with any supplier that breaks t he Code, depending on the severity of the incident. Supplier performance managem ent Corporate responsibility is one of six criteria we use to select suppliers a nd monitor their performance. The other criteria are financial and commercial as well as issues surrounding technology, quality and delivery. We conduct risk-as sessments and, where necessary, on-site evaluations for new and existing supplie rs to identify any CR risks and possible areas of noncompliance with the CEP. Ou r employees are also trained to spot any signs of non-compliance with the CEP wh enever they are on site for other reasons such as quality assessments. All new s uppliers with a contract value over 10,000 will complete a preassessment. These a ssessments help us to determine higher risk suppliers with whom we need to engag e more closely. Our top 50 suppliers (by spend and business impact) are re-asses sed every six months and improvement plans agreed where necessary. Engagement wi th higher risk suppliers is carried out at Group level and may include on-site a ssessments and training. Employee awareness and whistleblowing We cannot expect suppliers to meet high standards if our own employees do not apply our CEP consi stently. It is essential that Vodafone UK procurement staff apply our CEP consis tently and are equipped with knowledge about potential CR risks in our supply ch ain. We have online CR training for all procurement staff including information on our CEP, the importance of implementing high labour and environmental standar ds in the supply chain and the responsibilities of purchasing managers.All procu rement staff have CR targets built in to their performance development objective s. We launched Speak up, a confidential whistle blowing system in 2006/07. 15 | P a g e

This is now incorporated in our Group-wide Duty to Report policy. This policy is applicable to all Vodafone employees and provides suppliers with a means of rep orting concerns. Our suppliers can use Speak up to report any unethical conduct by Vodafone employees. We wrote to over 2,000 suppliers to notify them of this s ervice. Suppliers can raise concerns directly to Vodafones Group Fraud Risk and S ecurity Department or confidentially via an independently managed telephone hotl ine. Green purchasing We use our influence to encourage suppliers to provide mor e products with a reduced environmental impact. This helps stimulate the market for these goods. For example, we have purchased energy-efficient shuttle buses f or employees working at our Newbury HQ and we buy Fair Trade coffee for our cafe s. OUT SOURCING Vodafone has selected EDS and IBM to manage its application development and main tenance services in a global IT outsourcing deal, as part of its strategic commi tment to reduce costs while leveraging its regional scale. Vodafone hopes to con clude negotiations and finalise contracts with the two outsourcing partners in t he coming weeks. Under the terms of the proposed arrangements, each outsourcing partner will provide application development and maintenance services for key IT systems to separate groupings of operating companies within the Vodafone Group. Vodafone will retain full strategic control of the initiative, which focuses on writing code for and maintaining systems such as billing and Customer Relations hip Management. The proposed arrangements form part of Vodafone's cost reduction strategy. Against this backdrop, Vodafone continues to stimulate revenue growth through the roll out of new services and attractive tariffs which encourage cus tomers to use their mobile phones more extensively within the home and office. T oday's announcement is the result of a rigorous eight-month selection process, w hich has reduced the number of candidates from 11 to two preferred outsourcing p artners, subject to final contract. Candidates were assessed against a wide rang e of criteria including technical capability, outsourcing expertise, cost and cu ltural fit to ensure the future success of the partnership. 16 | P a g e

As previously announced, Vodafone has identified the potential to reduce unit co sts by 25 to 30 percent within three to five years. Activity levels on applicati on development and maintenance during the last financial year resulted in a spen d of around GBP560 million. Under the plans, the number of application developme nt and maintenance suppliers currently used by the Group will be rationalised by the two partners, bringing greater economies of scale. The Group also anticipat es that the initiative will result in improvements to the quality of software pr oduced, as well as greater flexibility, leading to the faster roll out of more v aried services to customers. Under the proposals, the substantial majority of im pacted staff are expected to transfer to the employment of the outsourcing partn ers, and work from similar locations under similar terms and conditions where po ssible. The remainder of staff will be retained by Vodafone. The Group is curren tly in full consultation with staff likely to be impacted by the changes. Arun S arin, Chief Executive of Vodafone, said: "This initiative is a good example of h ow Vodafone is finding new ways to deliver greater cost efficiencies across the business. We are exploring the possibility of outsourcing other non-core activit ies so that we can focus on our customers. "The outsourcing of this application development and maintenance work complements a series of other projects designed to reduce Group overheads including the regional consolidation of data centres and the centralisation of network supply chain management. QUALIYU MANAGEMENT Vodafone UK, a member of the world's largest mobile community, is the first UK m obile operator to have successfully had its ISO 9001 registration upgraded from the 1994 to 2000 version.This British Standards Institution quality certificatio n covers Vodafone UK's Quality Management System for its entire business includi ng network operations, sales and marketing, customer service and support functio ns."Quality is the foundation of our passion for our customers," commented Gavin Darby, Vodafone's UK Chief Operating Officer. "We believe that the top place re sults achieved by 17 | P a g e

Vodafone in OFTEL's customer satisfaction and network coverage surveys at the en d of last year were helped by our implementation of ISO 9001." Nick Moy, Managin g Director of BSI Management Systems said: "Many organisations, such as Vodafone , are finding that ISO 9001:2000 better connects the Quality Management Systems with their business processes, helping them to achieve their business objectives such as customer satisfaction and network quality."The close partnership create d between Vodafone and BSI has helped to achieve this commendable certification. At Vodafone there is clearly commitment to quality right through the organisati on." BSI has a wide range of resources to help firms succeed: Communication Foru ms - free business-improvement events, run throughout the UK Consultancy and tra ining - available through BSI Business Solutions Literature - a book, published by BSI group company CEEM, called "ISO 9000:2000, The Route to Registration," is available from www.ceem.com SWOT STRENGTHS Strong International presence and brand recognition. Solid platform across Europ e; HSDPA available in 100% of 3G footprint opening growth opportunities in mobil e broadband services. Controlling interest in strong growth markets (e.g. Egypt, Romania, South Africa, Turkey, India). Welldefined cost reduction initiatives: managed purchasing, outsourcing. Stable operating profit despite downward profit trend in Europe offset by improved operations in EMAPA. Have now established a clear route to delivering fixed broadband services in all relevant markets. Cons istent in maintaining a 60% payout ratio. 18 | P a g e

WEAKNESSES Uncertainty in revenue growth in the HSDPA network based on historislow consumer market take-up of 3G data services. Slow customer growth in DSL wholesale marke ts in UK and Italy; slow subscriber growth in Spain arising from lower promotion al activity. Adverse impact from exchange rate movements particularly in South A frica. The likely slippage of dividends in Verizon Wireless to 2010 could fuel t ension between Verizon Communications and Vodafone shareholders. Have now establi shed a clear route to delivering fixed broadband services in all relevant market s Insubstantial capacity to offer bundled services due to specialization in mobi le services; may lead to higher churn rates and may be pressured to compete excl usively in price. OPPORTUNITIES EMAPA remains target for potential acquisitions, with an average mobile penetrat ion of 27% by end of FY07 ; huge growth opportunity in India in a market of 1.1 bn people with a low 14% mobile penetration 3G data services gaining momentum in business customers; successful partnerships with laptop manufacturers to includ e embedded Vodafone SIMs to mobile devices allow opportunities for upselling of mobile broadband services in Europe, only onethird of voice traffic is carried o ver mobile networks and Vodafone customers has a monthly average of only 140 min utes of use; the trend is parallel with the companys strategy to drive higher voi ce usage onto mobile through reduction in prices; Vodafone expects usage demand to eventually exceed the price reduction. THREATS High mobile penetration in principal market leaves little room for growth Fierce competition in mature markets, especially with converged telcos offering triple -play and quad-play services; Vodafone lacks a direct substitute for such servic es Greater than anticipated competition with internet providers, MVNOs and new e ntrants; greater than anticipated customer acquisition and retention Regulatory intervention on tariffs creates pressure on revenues; on FY08, the company expec ts a revenue reduction of 200 mn due to the elimination of top up charges under t he Bersani decree in Italy and reduction of 200 mn to 250 mn from the deregulation of roaming charges across Europe . 19 | P a g e

FUTURE OUTLOOK Vodafone's plans to revamp Internet services critical to future s uccess Faced with being labeled as little more than a dumb pipe, Vodafone is expected t o announce a significant overhaul of its mobile Internet service. The move will see the Live! Brand replaced with Vodafone 360, with a focus on social networkin g and mobile payment services. The company, which has been increasingly viewed a s having fallen behind rivals such as Apple and Google in mobile services, hired Pieter Knook from Microsoft last year to head its mobile internet group and dev ise a new strategy for Vodafone. The plan will see the company improve access to social networking sites, providing subscribers with the chance to integrate sev eral social networking sites on their mobiles, so they can see what their friend s are doing without having to switch between different applications. Included wi thin this new strategy will be a move into using the billing relationship that V odafone has with its customers to help them purchase apps and other content with out the need for a credit card and the associated risk of online fraud. The comp any CEO, Vittorio Colao, gave his blessing to this approach, commenting that "I truly believe mobile accounts are a fantastic payment platform for all digital g oods." The challenge Vodafone has set itself has to be seen in the light of its lack of success with past attempts to turn consumer-focused mobile Internet serv ices into a large revenue generator. Terence Sinclair, an analyst at Citi, estim ates that 10 per cent of the company's 3.1 billion of data revenue in 2008-09 cam e from services such as music downloads, and a further 10-15 per cent came from e-mail. Sinclair added that about 75 per cent of Vodafone's data revenue consist ed of monthly charges for providing basic access to the wireless Internet. CONCLUSION Taken steps to make a positive difference, by supporting recycling campaigns Win-w in-win situation for shareholders, employees & the environment Improved relations hips between stakeholders & has helped to ensure future growth 20 | P a g e