Vodafone Germany: successful transformation into an

integrated communication services provider - fit for

the future with a stable business model
19 May 2009

• Profit margin is stable - and highest in sector

• Slight decline in revenue
• Mobile data services cross the one billion revenue threshold
• Marked growth in DSL customers and positive revenue development
• 39 million customers use Vodafone and Arcor services

Düsseldorf, 19 May 2009. Substantial growth in the DSL customer base and DSL
revenue, equally dynamic growth in data services and the best profit margin in the
German telecommunications sector have positively impacted Vodafone Germany and
Arcor's balance sheet in the 2008/09 fiscal year. As a result, Vodafone Germany is
effectively equipped to ride out the crisis and sustain successful business operations. This
very good annual result, despite the negative economic framework, provides a solid
platform for investments in new business segments and in the growth of Vodafone's
German operations. One such investment is being made, as recently announced, in the
development of a global competence centre for IP-TV, video and connected home in
Eschborn near Frankfurt. Vodafone Germany successfully completed the transformation
into an integrated communications service provider last year.

In the period under review from April 2008 to March 2009, Vodafone Germany and
Arcor's consolidated revenue across all segments amounted to EUR 9.412 billion. The
consolidated profit margin (EBITDA margin, earnings before interest, taxes, depreciation
and amortisation) was 39.0 percent, which is similar to the previous year's level and
considerably higher than the sector EBITDA margin in Germany. There were some
especially positive developments in mobile data service and DSL revenue. Almost 39
million customers used Vodafone and Arcor services in the 2008/2009 fiscal year.
Friedrich Joussen, CEO Vodafone Germany and Arcor AG said, "We're already
benefiting from powerful synergies as a result of our integration. As an integrated
communications service provider, we are able to target brand new customer segments.
Vodafone and Arcor have raised their profile in the business customer segment by
attracting key account customers in the industrial and public sectors." He mentioned
Siemens, Allianz, McDonalds, Dekra and the State Government of Rhineland-Palatinate
as examples. Convergent products, one-stop services, cost control and price transparency
through additional flatrates have strengthened Vodafone and Arcor's position in the
consumer segment.

On 1 August, the new integrated communications provider will be getting a new

corporate identity, providing visual evidence that the company has moved into a new era.
"We're reinventing ourselves. The old Vodafone and the old Arcor will be the basis for
the new Vodafone. We're in great shape and our business strategy gives us the strength to
overcome future challenges in our market," said Joussen.

In fiscal 2008/09, the total profit (EBITDA) across all segments was around EUR 3.7
billion. Optimised and sustainable cost transparency has kept the profit margin (EBITDA
margin) stable at the very high level of 39.0 percent and Vodafone Germany is still the
most profitable company in its market.

Service sales revenues across all segments amounted to EUR 9.036 billion last year
(previous year: EUR 9.280 billion). This slight decline is due to the regulation of mobile
telecommunications rates.

Double-digit growth in DSL business

The number of DSL customers increased in the 2008/2009 fiscal year by 575,000 to
3.221 million, 154,000 of whom are wholesale customers. "We are the leading alternative
DSL provider in Germany by a wide margin. We'll be remaining firmly on course for
growth over the next few quarters and we plan to achieve our mid-term 20 percent market
share target in a step-by-step process using our own resources," explained Friedrich
Joussen. The total of 180,000 new DSL customers in the fourth quarter have put the
company back on track for growth with a year-on-year increase of 2.1 percent.

Data service revenue approaches the one billion mark

Mobile data services revenue is still driving future growth. The expected positive
development was boosted by an increase in the use of data services for notebooks,
netbooks and smartphones. "This result indicates just how dynamic the mobile data
services sector is. Data services will continue to be an attractive growth market in the
future." Over the year, mobile data services revenue increased by 21 percent to around
EUR 960 million, taking it close to the one billion target. 8.2 million Vodafone customers
use 3G phones or surf the net on 3G notebooks. That's a 40 percent increase in customers
since last year.

35,471 million customers

The number of mobile customers increased by 1,059 million or 3.1 percent to 35,471
million (previous year: 34,412 million). However, 680,000 contracts were cancelled in
the last quarter (January to March 2009) with Vodafone customers who do not or rarely
use their prepaid cards.

An overview of key figures*

2008/09 2007/08 Change
34.412 +1.059 million
Mobile phone customers 35.471 million
million (+3.1%)
DSL customers 3.221 million 2.646 +575.000,
(including 154,000 million +21.7%
 2008/09 2007/08 Change
wholesale)
EUR 9.729
Total revenue EUR 9.412 billion -3.2%
billion
EUR 9.280
Total service revenue EUR 9.036 billion -2.5%
billion
EUR 2.168
Fixed network service revenue EUR 2.116 billion -2.1%
billion
EUR 7.112
Mobile service revenue EUR 6.921 billion -2.7%
billion
EUR 793
Non-messaging data service revenue EUR 960 million +20.8%
million
Mobile non-messaging data service
revenue as a percentage of total 13.9% 11.2% +2.7%
service revenue
EBITDA (consolidated mobile + fixed EUR 3.774
EUR 3.672 billion -2.7%
network) billion
EBITDA margin (consolidated mobile
39.0% 38.8% +0.2%
+ fixed network)
Mobile ARPU (average revenue per
EUR 16.4 EUR 18.4 -10.7%
customer/month)
42.008
Voice usage in minutes 46.706 billion +11.2%
billion
Mobile voice usage per customer and +2 min.
111.5 min. 109.5 min.
month (+1.8%)
5.836 +2.366 million
3G users (mobile phone, note book) 8.202 million
million (+40.5%)

* Deviations are possible as a result of rounding off

If you have any queries, please contact:

Jens Kürten, External Communications, T. +49 211 533-6650

Kuzey Alexander Esener, External Communications, T: +49 211 533-2982
Press hotline +49 211 533 5500

Vodafone Germany is one of the largest and most modern telecommunications

providers in Europe. It realises turnover of more than EUR 9 billion and has 15,000
employees. In conjunction with its full subsidiary Arcor AG & Co KG, Vodafone
Germany is an integrated technology and service provider with a portfolio including
mobile communications, fixed network telephony, internet and broadband data services
for business and private customers.Continuous development, numerous patents and
investments in new products, services and the modern network have made Vodafone an
innovation leader in the German telecommunications market. Vodafone Germany is
headquartered in Düsseldorf and Arcor in Eschborn near Frankfurt. Vodafone and Arcor
are committed to CSR and they also support numerous projects through the German
Vodafone Foundation.

The companies are part of the Vodafone Group. Visit the websites at www.vodafone.de
and www.arcor.de for further information.