Annual Report for the year ended 31 March 2010

Vodafone Money Transfer

The Vodafone Money Transfer system is available in three countries with 13 million customers moving US$3.6 billion during the year. We expect to roll-out the service to further markets later this year.

Vodafone Money Transfer customers (millions)

Service focus: DRM-free deals with all four major record labels in 2009

More than 500,000 customers signed up for music subscription services provided in partnership with all four major labels (EMI, Sony, Universal and Warner), making us the largest provider of paid music subscription services in Europe.

During the 2010 financial year we launched an exciting new suite of services called Vodafone 360 particularly catering to the needs of customers wanting to be always connected both on the move and at home. This allows customers to keep all their contacts and content in one place and access the latest information available on the internet. Vodafone 360 integrates the latest updates from popular social networking sites, such as Facebook, so customers can stay instantly up to date with their friends’ latest news.

The Vodafone 360 store gives customers the choice to download from over 8,000 applications ranging from checking the weather and news to the latest music and games. All the information, social contacts and content can also be seamlessly accessed online from PCs and Macs, in addition to handsets, allowing customers the freedom to connect via whichever channel is most convenient to them. Vodafone was the first operator to offer DRM-free bundles and now has the largest number of paid digital music subscriptions in Europe, with over 500,000 customers.

Applications

4.5m

Mobile email users, up 29%

Vodafone Passport customers (millions)

PC Backup and Restore

Enables PC users to store data securely and automatically, allowing access to files and documents at any time from any computer with an internet connection, whether fixed or mobile.

We provide a wide range of additional services to customers.

• Vodafone Email Plus, Windows Mobile^® Email from Vodafone and BlackBerry from Vodafone provide enterprise customers with real time handheld access to email, calendar, address book and other applications.
• Vodafone PC Backup and Restore enables users to remotely store data securely and automatically via their internet connection.
• Full track music down loads with more than 2m songs available.

Roaming services

Our roaming services allow Vodafone customers to make calls and use data services on other operators’ mobile networks whilst travelling abroad.

• Over the last three years we have reduced the cost of voice roaming by 38% in Europe.
• Vodafone Passport enables customers to “take their home tariff abroad” offering greater price transparency and certainty.

Our range of total communications solutions provides customers with integrated office and mobile voice and data services, such as Vodafone Always Best Connected, an internet connection management software tool which manages connections across all network connection types including Mobile Broadband, Wi-Fi and LAN. This service allows customers to stay connected to the internet on the best available connection, simply and securely. The software provides a simple user experience for managing different connections in the office, at home, in a hotspot or on the move by automatically managing the switching between available connection types.

Share of Europe service revenue from enterprise services.

30%

Enterprise mobile voice connections (millions)

Mobile broadband solutions

7 Causes is a marketing consultancy with a difference. Based in the Netherlands, they’ve changed the way they work with clients. Out went expensive office space and long commutes. Instead they bought a bus and turned it into a mobile office complete with Vodafone mobile broadband. So now instead of wasting time travelling, they can work on the move and see more of their clients and their own families.

Product focus: Vodafone One Net

Provides small and medium-sized business with just one number for their fixed and mobile calls.

Product focus: Vodafone Mobile Wi-Fi

Provides a personal Wi-Fi network for up to five users.

Enterprise services

Vodafone offers total communications solutions for a wide range of enterprise customers from small businesses to large multinational companies.

Vodafone One Net

• Vodafone One Net brings together fixed and mobile communications in one system. It means that every user can have just one number for their desk phone and mobile, and one voicemail box for their messages.
• For a fixed cost per employee, customers can get business quality internet and email, a mobile and/or desk phone for every user, with advanced call management features and unlimited calls between all their company phones whether fixed or mobile.

Vodafone Unified Communications

• An integrated communications solution in partnership with Microsoft which provides a customer with just one interface for all of their communications, enabling employees to access emails, share documents and files, access calendars, hold web and video conferences and exchange instant messages from any location and using almost any device.

Business managed services

• As customers look to improve their efficiency they are increasingly looking to Vodafone to take control of their technology for them.
• Business managed services provide fully managed solutions which bring together every aspect of a customers’ telecommunications infrastructure, both fixed and mobile, into a single management view.
• Services include logistics, cost control, and security and online management portals offering single-sign-on.

Machine-to-machine

• Machine-to-machine (‘M2M’) communication allows businesses to automate the capture of data, perform real-time diagnostics and repair and to control assets remotely.
• We support M2M solutions ranging from location monitoring of vehicles and remote patient monitoring through to supporting real-time secure payments and providing real‑time inventory reports for retailers. corporate and MNC segments.

We continue to add value to our enterprise customers, building on our core mobile business and leading the way with a range of services where applications and data are secured and hosted in the Vodafone network or “cloud”. In addition, we are providing mobile internet bundles for smartphones, mobile email (BlackBerry, Microsoft ActiveSync and Vodafone Email Plus) and mobile broadband via a range of innovative devices, such as the Vodafone Mobile Wi-Fi, a portable mobile broadband powered Wi-Fi hub, and class leading USB dongles, embedded laptops and netbooks.

As we embrace the convergence of mobile and fixed networks our customers are seeing the value it brings to their business through a range of convergent services. Building on our success in Italy and Spain with our cloud-based office phone solution, Vodafone One Net, the service is expected to be launched in Germany and the UK during the 2011 financial year. The service provides enterprise customers of all sizes with advanced office desk phone functionality integrated with their mobile services.

Our partnership with Microsoft has enabled us to combine these converged services with the Microsoft online suite, providing our customers with hosted email and productivity tools as well as conferencing and collaboration services in a single package. The services have launched successfully in Germany and Spain.

Vodafone Global Enterprise (‘VGE’) manages the relationships with over 550 of our largest multinational corporate customers. VGE simplifies the provision of fixed, mobile and data services for MNCs who need a single operational and commercial relationship with Vodafone worldwide. It provides a range of managed services, such as central ordering, customer self-serve web portals, telecommunications expense management tools and device management coupled with a single contract and guaranteed service level agreements.

Within VGE, our machine-to-machine (‘M2M’) business unit provides MNC customers with global capabilities for M2M services through a single platform and a global numbering range. The business has achieved major customer wins in both the automotive and smart metering sectors. VGE has continued to expand both its footprint and the services it provides to our customers and now has dedicated resources in India and Africa, both growing areas for VGE’s services. For the fourth year running VGE has extended its position in the Gartner Magic quadrant report to become the clear industry leader.