Vodafone Regulatory News (VOD)

31 July 2019

VODAFONE GROUP COMPLETES SALE OF VODAFONE NEW ZEALAND

Vodafone Group Plc ("Vodafone") has completed the sale of 100% of Vodafone New Zealand Limited ("VFNZ") to a consortium comprising Infratil Limited and Brookfield Asset Management Inc. for a cash consideration equivalent to an Enterprise Value of NZ$3.4bn (€2.1bn1), implying an FY'19 multiple of 7.3x Adjusted EBITDA2 and 16.2x Adjusted OpFCF3.4

Vodafone and VFNZ have now entered into a Partner Market agreement, which includes use of the Vodafone brand, preferential roaming arrangements, access to Vodafone's global IoT platform and central procurement function, and a range of services for the business and consumer markets.

Proceeds from the sale will be used to reduce Vodafone's net debt.

Nick Read, CEO, Vodafone Group, said: "This transaction is a continuation of our strategy to optimise our portfolio and reduce our debt. I am pleased we will continue our 21-year relationship with the business and talented team in New Zealand through a Partner Market agreement, delivering Vodafone's technology and services to benefit the country as it transitions to a digital society."

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Vodafone Group

1 Converted from NZ$ to € at a rate of 1.6464 (as of 31-Mar-19)

2 Net of pro-forma Vodafone Partner Market Agreement service fees

3 Adjusted OpFCF defined as Adjusted EBITDA minus capex

4 The selling entity is Vodafone Europe B.V., a 100% owned indirect subsidiary of Vodafone Group Plc

About Vodafone Group

Vodafone Group is one of the world's leading telecoms and technology service providers. We have extensive experience in connectivity, convergence and the Internet of Things, as well as championing mobile financial services and digital transformation in emerging markets.

Vodafone Group has mobile operations in 24 countries, partners with mobile networks in 42 more, and fixed broadband operations in 18 markets. As of 30 June 2019, Vodafone Group had approximately 640 million mobile customers, 21 million fixed broadband customers and 14 million TV customers, including all of the customers in Vodafone's joint ventures and associates. For more information, please visit: www.vodafone.com.