Annual Report for the year ended 31 March 2010

Vodafone has a truly international customer base with 341.1 million proportionate mobile customers across the world. We continually seek to develop new and innovative propositions that deliver relevance and value to all our customers and build a long lasting relationship meeting their expectations and needs. As customers move between work and home environments and look for integrated solutions, we have a suite of propositions which often bundle together voice, messaging, data and increasingly fixed line services to meet their needs.

BrandFinance global ranking

7th

most valuable brand (2009: 8th; 2008: 11th)

We have continued to build brand value by delivering a superior, consistent and differentiated customer experience. During the 2010 financial year we evolved our brand positioning to “power to you” emphasising our role of empowering customers to be able to live their lives to the full. It is a further expression of the importance of the customer being central to everything we do and is reinforced in communications substantiating how products and services impact and empower our customers.

We regularly conduct brand health tracking which is designed to measure the performance of the brand in each country and generate insights to manage the brand as effectively as possible. External benchmark studies have shown that Vodafone brand equity has maintained a top ten position in a number of rankings of brands across all industries including the seventh most valuable brand in the world as measured by BrandFinance.

Consumer

Consumer customers are typically classified as prepaid or contract customers. Prepaid customers pay in advance and are generally not bound to minimum contractual commitments offering great flexibility and cost control. Contract customers usually sign up for a predetermined length of time and are invoiced for services, typically on a monthly basis. Increasingly we offer SIM-only tariffs allowing customers to benefit from our network whilst keeping their existing handset. Around a third of our proportionate customer base including consumer and enterprise customers are contract customers and the remainder are prepaid.

Enterprise

Vodafone also caters to all business segments ranging from small-office-home-office (‘SoHo’) and small-medium enterprises (‘SMEs’) to corporates and multinational corporations (‘MNCs’). While our core mobile voice and data business continues to grow, our enterprise customers are increasingly asking for combined fixed and mobile solutions for their voice and data needs as well as integrated services and productivity tools.

Vodafone branded franchise stores

7,600

(2009: 5,300; 2008: 5,800)

Directly owned and managed stores

2,100

(2009: 1,800; 2008: 1,150)

Our customers interact with us in a variety of ways including via retail locations, by telephone or increasingly online. Through our subsidiaries, we directly own and manage approximately 2,100 stores selling services to customers and providing customer support. To be most accessible to our customers we constantly review our store footprint and capabilities. We also have around 7,600 Vodafone branded stores in our controlled markets which sell our products and services exclusively through franchise and exclusive dealer arrangements. Additionally, in most operating companies, sales forces are in place to sell directly to business customers. The internet is increasingly a key channel to promote and sell our products and services and to provide customers with an easy, user friendly and accessible way to manage their services and access support, whilst reducing costs for the Group.

The extent of indirect distribution varies between markets but may include using third party service providers, independent dealers, distributors and retailers. We host mobile virtual network operators (‘MVNOs’) in a number of markets, selling access to our network at a wholesale level.