Q3 2024 Vodafone Group PLC Trading Statement Call

Margherita Della Valle: step up our growth potential in the SMB segment and with IoT. In Africa, a particular highlight is the growth of financial services in Egypt, with the number of customers increasing over 55% to 7.5 million, benefiting from Vodacom's capabilities. As part of being a simpler business, we have already completed over a third of our multi-year 11,000 rule reduction.

<unk> B segment and with Iot.

In Africa, a particular highlight is the growth of financial services in Egypt, with the number of customers increasing over 55% to $7 5 million benefiting from broader comes capabilities.

As part of being a simpler business, we have already completed over a third of our multi year 11000 role reductions.

In parallel we continue to work on <unk> our portfolio.

Margherita Della Valle: In parallel, we continue to work on outsizing our portfolio. We are progressing with approvals for our sale of Spain and the UK merger. We have also been actively exploring options for Vodafone Italy for some time, and we are continuing to progress on this. And, as we have done in Spain and the UK, we will focus on the most value-creating and deliverable outcome for our shareholders. But, as you would expect, given that we are engaged in constructive discussions, I'm not going to comment further on this today.

We are progressing with approvals for our sale of Spain, and the UK merger.

We have also been actively exploring options for Vodafone, Italy for some time, we're continuing to progress on this and as we have done in Spain, and the U K, we will focus on the most value, creating and deliverable outcome for our shareholders.

Speaker Change: But as you would expect given that we are engaged in constructive discussions I'm not going to comment further on this today.

Margherita Della Valle: Turning to our Q3 trading, I'm pleased to report that we have sustained good group service revenue growth into Q3, with 14 out of 17 markets growing, and we are reiterating our financial guidance for the year. In our largest markets, Germany's service revenue was in line with our expectations, commercial momentum in both fixed and mobile improved, and the execution of the Housing Association transition has now started, with all processes performing according to plan. And with that, Luka and I are looking forward to your questions. Thank you, Margherita.

Speaker Change: Turning to our Q3 trading I'm pleased to report that we have sustained good group service revenue growth into Q3 with 14 out of 17 markets growing and we are reiterating our financial guidance for the year.

Speaker Change: Our largest market Germany. Its service revenue was in line with our expectations commercial momentum in both fixed and mobile improved and the execution of the housing Association transition has now started with old processes performing according to plan.

Speaker Change: And with that Luke and I.

Luke: Looking forward to your questions.

Luke: Thank you Marguerite them as a reminder, please only one question per analyst. So we have time to hear from as many of you as possible today.

Operator: As a reminder, please, only one question per analyst so we have time to hear from as many of you as possible today. Our first question comes from Emmett Kelly. Emmett, please unmute yourself.

Our first question comes from Emmet Kelly.

Marguerite: And it.

Emmet Kelly: Please on mute yourself your line is open.

Emmett Kelly: Your line is open. Yes, good morning, everybody, and thank you for taking my question. My question, please, is on the deregulation of the German MDU cable TV market. On the last call, you kindly provided us with some numbers for the potential revenue at risk, and you gave us a range of retention rates. I know it's very, very early days, but could you please say a few words on how we should think about the phasing of the MDU revenue at risk? Is it more front-end loaded, or would it be a straight line over a number of years, or perhaps a different pattern? Thank you very much. Thank you very much.

Emmet Kelly: Yes, good morning, everybody and thank you for taking my question. My question. Please is on to deregulate and off the German MDU cable TV market.

Last call you kindly provided us with some numbers for the potential revenue at risk can you gave us the range of retention rates and I know, it's very very early days, but could you. Please say a few words on how we could think about the phasing of the MDU revenue at risk is it more front end loaded or would it be the bright line over a number of.

Speaker Change: Year, or perhaps a different pattern. Thank you very much.

Speaker Change: Thank you very much.

Margherita Della Valle: I'll let Luka say a few words on the revenue profile. In terms of what we are actually seeing in the market, as you know, we were expecting volumes to start becoming material in January, and that's happening. We are tracking this very closely. As I mentioned earlier, we are pleased to see that all our systems, and all our processes are performing as expected. And also, we are seeing good performance across the full range of our challenges, from digital online, retail, tele-sales, and door-to-door. Actually, Luka, you may want to add a word on door-to-door, because Luka has been one of our door-to-door salesmen recently on the ground.

Speaker Change: I'll, let Luca maybe say a few words on the revenue profile in terms of what we are actually seeing.

Luca: In the market as you know we were expecting volumes to start becoming material in January and it's happening we are tracking this very closely.

Luca: As I mentioned earlier, we are pleased to see that all our systems all our processes.

Luca: Performing as expected and also were seeing good performance across the full range of our childhood less from digital online retail telesales door to door absolute Luca you may want to add a word on door to door, because look as being one of our door to door salesman.

Luca: Simply on the ground.

Luka Mucic: This week, you will find that we are starting an above-the-line campaign on TV in Germany because what's starting now are all the marketing actions to persuade our customers to take action. The trends so far, we'll come to the phasing in a second, are certainly supportive of the range of outcomes that we have seen in the trials. It's only been a few weeks, and I think this is really important because only a few weeks into what is the first wave means that it takes time for customers to migrate. So, I think we will give you a much fuller update when we come back in May. Luka, on the revenue trends and how they're going to impact our profiles? Yeah, first of all, on my experience, perhaps, in door-to-door sales, because I think that was, for me, very insightful.

Luca: This week you will find that we are starting an above the line campaign on television in Germany, because what starting now is all the marketing actions to nudge.

Luca: Our customers to take action.

Luca: The trend so far will come to the phasing in a second are certainly supportive of the range of outcomes that we have seen in <unk>.

Luca: In the trials.

Luca: It's only a few weeks and I think this is really important because only a few weeks into what is the first wave means that it takes time for customers to migrate. So I think we will give you a much fuller update when we come back in May but look on the revenue plans when I was going to impact our profiles.

Luca: Yes first of all on my experience, perhaps in door to door sales because I think that's worth for me very insightful of costs I was only able to visit some 20 customers also but I would say in an MDU that is quite representative of the customer base that we are tackling with the program.

Luka Mucic: Of course, I was only able to visit some 20 customers or so, but I would say in an MDU that is quite representative of the customer base that we're tackling with the program, you typically get a combination of a good initial sign-up and then a range of people who are just kind of trying to get informed and then make their choice.

Luca: You typically get to a combination of a good initial sign ups and then a range of people who are just.

Luca: End of trying to get informed and then make their choice. So therefore as we work through the product through the process as it will take a few months actually.

Luka Mucic: So, therefore, as we work through the processes, it will take a few months, actually, until the summer, until we are fully through it. What I can definitely see is that this is not necessarily a customer base that is very OTT-heavy in nature. Typically, we're talking about more older people and a certain predisposition for kind of staying with the status quo, which I would say is quite constructive.

Luca: To sum up until we are fully through it what I could definitely see is that this is not necessarily a customer base that is very OTT in nature.

Luca: We were talking about more older people.

Luca: And a certain predisposition for kind of staying with two scheduled score, which I would say is.

Luca: Quite constructive and so therefore, I think we will probably lend it within the guardrails that we have outlined so far in terms of the phasing.

Luka Mucic: And so, therefore, I think we will probably land within the guardrails that we have outlined so far. In terms of the phasing, we are now going to see the first significant impact in Q4, and we expect this to then carry through into the first half year of FY25. The impact, of course, regardless of where we end up in the range, will be quite sizable. Still, my current expectation is that we will land in Q4 in Germany at roughly flattish service revenue growth because the decline through the MDUs will be countered through a positive step-up, mainly in our Vodafone business segment in Germany, and that will be close to a wash in that regard. And as we go into the next year, of course, in the first half year, the MDU impact will mean that we are going to see a return to negative growth. In the second half year, though, this will start to be moderated by the pickup of the national roaming agreement with 1&1, which will start to bring us some incremental service revenues, and that will then come to full fruition. So, in FY26, I fully expect Germany to be back to very decent growth. Thank you very much.

Luca: We are always going to see in Q4, the first significant impact and.

Luca: We expect this to them carry through.

Luca: Into the first half year of FY 'twenty five.

Luca: The impact of cost regardless of where we end up in the range will be quite sizable still.

Luca: My current expectation is that we will land in Q4 in Germany at roughly flattish service revenue growth because the decline through the MD use will be counted through a positive step up mainly in our Vodafone business segment in Germany and that will be.

Close to a wash in that respect and as we go into the next year of course in the first half year.

Luca: The MDU impact will mean that we are going to see a return to negative growth in the second half year, though this will start to be moderated by the pickup of the national roaming agreement with saw one and one which will start to bring us some incremental service revenues and that will then come to full fruition. So in FY 'twenty six full.

Luca: We expect Germany to be back to a very decent growth.

Luca: Yeah.

Speaker Change: Thank you very much.

Speaker Change: Thank you Amit.

Carl Murdock: Thank you, Amit. Our next question comes from Carl Murdock-Smith at Bernberg. Carl, please unmute yourself and go ahead.

Speaker Change: Our next question comes from Carl Murdock Smith, I turn back call. Please on mute yourself and go ahead.

Carl Murdock: That's great. Thank you very much. I wanted to ask about the outlook for growth in the Vodafone business, please. So the strength of the Vodafone business in Q3 was supported by the UK and Italy, while Germany saw decline. How sustainable is that growth in the UK and Italy? So how much of the growth in the UK is due to the smart metering program? And is that revenue ongoing or one-off project-based in nature?

Speaker Change: That's great thanks very much.

Speaker Change: I wanted to ask about the outlook for growth and fund business place.

Speaker Change: Strength, the Vodafone business in Q3 was supported by the U K and Italy, while Germany saw decline how sustainable is that growth in the UK and Italy.

Speaker Change: How much of the growth in the U K is due to the smart metering program and is not revenue.

Speaker Change: Knowing all one off project based in nature and in Italy, how much do you expect basically spreads to slow in Q4.

Margherita Della Valle: And in Italy, how much do you expect business growth to slow in Q4 now that the voucher program has concluded? And then, in Germany, I think you just slightly touched on it there, but can you talk about this quarter's decline and what your growth expectations are going forward, both organically and also with the new Microsoft agreements as well? Thank you.

Speaker Change: The program has completed and then in Germany.

Speaker Change: Just slightly.

Speaker Change: Slightly touched on it there, but can you talk about this quarter's decline and what your growth expectations are that going.

Speaker Change: Going forwards.

Speaker Change: Both organic and also with the new Microsoft agreements as well. Thank you.

Luka Mucic: I'll hand over to Luka to give you all the details on the details, but let me just mention the headline. What you should expect for Vodafone business across the board is continued acceleration going forward. It's simple, but maybe, Luka, you can bring a bit more color.

Speaker Change: I'll hand over to Luca to give you all the deals on the detail, but let me just mentioned the headline what you should expect for Vodafone business across the board is continued acceleration going forward, it's simple, but mobile nuclear club bank a bit more color, absolutely and I fully expect this acceleration.

Luka Mucic: Absolutely. And I fully expect this acceleration also to show up in Q4 at the aggregate level. As you said, the growth composition will be slightly different in Vodafone Germany, but we absolutely expect it to bounce back to growth. Germany is, in general, an IoT-heavy market due to a strong focus on manufacturing and the automotive industries.

Luca: Also to show in Q4.

Luca: At the aggregate level.

Luca: As you said the growth composition will be slightly different.

Luca: In.

Luca: Vodafone, Germany, we absolutely expect to bounce back to growth.

Luca: Germany is in general and Iot heavy market due to our strong focus on manufacturing and automotive industries.

Margherita Della Valle: Q3 actually had a seasonality impact because last year we had a very strong activation on a particular customer project there. This will actually now turn around in Q4 and we will have a very strong contribution from that part of the business and hence a return to growth in Germany. As opposed to that, in both the UK and Italy, while I would continue to see very decent growth, the growth rate should start to slightly come down, also due to the impact of individual projects. However, the rest of the business, in particular in the other European countries, should continue to accelerate. And then going into next year, based on the strength that we have gained through the expanded partnership with Microsoft, and the joint investments that we are doing in the go-to-market capabilities, I would expect that we're not seeing the end of growth opportunities but actually a further opportunity for acceleration. Yes, and if I may build on this, you know that scaling up Vodafone Business was one of the key strategic opportunities that I identified from the beginning. I'm very positive about it. It's happening.

Luca: Q3 actually was.

Luca: Seasonality impact because last year, we had a very strong activation in a particular customer project. There. This will actually now turnaround in Q4, and we will have a very strong contribution from that part of the business and hence the return to growth in Germany.

Luca: As opposed to that.

Luca: Both the UK and Italy, while I would continue to see very decent growth the growth rates should start to slightly come down also due to phasing impacts from individuals.

Luca: However, the rest of the business in particular in the other European countries should continue to accelerate and then going into next year based on the strength that we have gained through the expanded partnership with Microsoft joined investments that we're doing into the go to market capabilities I would expect.

Luca: But we're not seeing the end of the year growth opportunities, but actually a further opportunity for acceleration, yes, and if I may do a small deal done this that scaling up Vodafone business was one of the key strategic opportunities that are identified from the beginning.

Luca: I'm very positive on it it is happening the demand is very strong it's really on us to equip ourselves to better serve it.

Margherita Della Valle: The demand is very strong. It's really on us to equip ourselves to better serve it, which is why you have seen, for example, that my first big business partnership was with Microsoft, precisely because it fits very well with this objective. I'm really keen to leverage partnerships to ensure that we build on our strength, bringing in also external capabilities to just accelerate our growth. That was great.

Luca: Which is why you have seen for example that my first big business partnership has been with Microsoft precisely because it fits very well with this objective and really keen to leverage partnerships to ensure that we build on our strength bringing game.

Luca: Also external capabilities to just accelerate our growth.

Robert Grindle: Thank you very much. Thank you, Carl. Thank you, Carl. Our next question today comes from Robert Grindle at Deutsche Bank. Robert, please unmute yourself.

Great. Thank you very much thank you Kara.

Thank you. Our next question today comes from Robert Grindle at Deutsche Bank, Robert Please on mute yourself you're interim.

Robert Grindle: You're in the room. Yeah, good morning. Thank you. My question is around mobile data traffic growth. It seems to be finding a flaw around the high teens, 20s mark. At least there wasn't a further slowdown in Europe this quarter. It wasn't long ago you were at twice, three times this level.

Robert Grindle: Yes. Good morning. Thank you my question is around mobile data traffic growth it seems to be finding a floor around the high teens Twenty's Mark let's Easter wasn't a further slowdown in Europe. This quarter. It wasn't long ago Europe twice three times. This level how are you thinking about mobile traffic for Capex and network planning purposes. Please.

Luka Mucic: How are you thinking about mobile traffic for CapEx and network planning purposes, please? Are we now in a sort of steady state? Thanks.

Robert Grindle: Are we now in a sort of steady state.

Speaker Change: <unk> actually conducting the capex allocation reviews, as we start our long range planning process for the coming year, So maybe a view on that.

Luka Mucic: Luka is actually conducting capex allocation reviews as we start our long-range planning process for the coming years. So maybe you could give us your view on that? Yeah, that view is basically the same as I shared already at the half-year mark. But, of course, we're looking into those trends as well. And as I had shared at our half-year earnings already, my conclusion from what I'm seeing at the moment is that we are well served with the current levels of capital intensity, and certainly they don't suggest the need for a step up in investment. So, steady state in that respect.

Speaker Change: That view is basically the same as I shared already at the half year Mark of course, we're looking into those trends as well and as I had shared at our half year earnings already my conclusion from what I'm seeing at the moment is that we are well served with the current levels of capital intensity and certainly they don't.

Speaker Change: Suggest the need for a step up in <unk>.

Speaker Change: So steady state in that respect.

Andrew Lee: More broadly, one point that is important to me when I look at traffic dynamics is what I call responsible usage. You know, we have been engaging in discussions with the over-the-top players on the dynamics of the usage that is pushed through our networks. I think it's really important, not just for us and our CAPEX but for the planet really more broadly in terms of energy consumption and network build-out, that this traffic is managed responsibly with a common incentive of giving our customers what they need but not pushing through more than what the customers actually want and experience, which has been the case for some time. So I think that is also something that we can proactively improve. Thank you, Robert. Our next question comes from Andrew Lee, Managing Director at Goldman Sachs. If you could unmute yourself, please go ahead.

Speaker Change: More broadly one point that is important to me when I look at traffic dynamics is what they call a responsible usage we have been engaging in discussion.

Speaker Change: With the over the top players on the dynamics of the usage that is pushed through our networks I think it's really important not just for us and our capex, but for the planet training more broadly in terms of energy consumption network build out that this traffic is managed responsibly.

Speaker Change: With a common incentive.

Speaker Change: Giving our customers, what they need but not pushing through more than what the customers actually want and experience, which as been the case for some time. So I think that is also something that we can proactively improve.

Speaker Change: Thank you Robert.

Speaker Change: Our next question comes from Andrew Lee, Andrew Lee at Goldman Sachs. If you could on mute yourself. Please go ahead, yes.

Andrew Lee: Yeah, good morning Margherita and Luka. I had just a question about German growth again. So obviously, we've already discussed on this call the extra impacts from the cable TV regulation, and you've laid out that there was some. I'm going to ask you a few questions about the phasing impacts from B2B in the quarter. But can we just look at the underlying growth? Because obviously, for many investors, it's 30 bits. Whether it's 30 bits or 50 bits, it's still a relatively low number.

Andrew Lee: Yes, good morning Margarita.

Andrew Lee: I had just a question around the German growth again, so obviously, we've already discussed in this.

Andrew Lee: Cool.

Andrew Lee: The extra impacts from the cable TV regulation and you've laid out some phasing.

Andrew Lee: Phasing impacts from B to B in the quarter, but can we just look at the underlying growth because obviously for many investors is 30 bps. So whether it's 30 bps or 50 bps, it's still a relatively low number in mind.

Margherita Della Valle: And you know, and I guess semantics to an extent, what people are really trying to understand is the trajectory of underlying growth. I wonder if you could just give us a kind of spot check on how you see that kind of acceleration or trend going? And should we expect a continued acceleration? As we look at kind of X cable TV, headwind disclosure into FY25, and any updates on the commerciality, they'll be great. Thank you. Thank you, Andrew, and I think this is actually a really important question.

Speaker Change: Thanks to an extent.

Speaker Change: So what people are really trying to understand is the trajectory of our underlying growth I wonder if you could just give us the kind of spot check on how you see that kind of acceleration or trend.

Speaker Change: Trend going and should we expect a continued acceleration as we look at kind of ex cable TV headwind disclosure into FY 'twenty five kind of any updates on the commerciality there'll be it will be great. Thank you.

Speaker Change: Thank you Andrew and I think this is actually a really important question.

Margherita Della Valle: We are going from the next quarter, as the TV low impacts are becoming material to publish underlying, but it is really what we are all watching. And yes, we should expect from now on, starting in Q4 and into FY25, a continued acceleration of the underlying service revenue growth in Germany. And the reason why is fairly simple.

Speaker Change: We are going from the next sport there as.

Speaker Change: The TV impacts are becoming material to publish underlying but it is really what we are or we're all watching and yes. We should expect from now on starting in Q4 and into FY 'twenty five a continued acceleration of the underlying service revenue growth in Germany.

Speaker Change: And the reason why it's fairly simple if you think about it as of February today, we are finally put behind us.

Margherita Della Valle: If you think about it, as of February today, we have finally put behind us the price-driven churn that we were experiencing in six broadbands. We will have had one month of the final disconnection of the final cohort happening in January, but from February onwards, that won't be the case anymore. If you look at how we are playing in the market, and I think our commercial performance is starting to highlight that, we have a full range now of simple propositions for our customers, from mobile to fixed, convergence, family plans, TV, and fixed broadband bundles, you name it; we are there. And these offers are being supported, as tests continue to demonstrate, by strong performance on our network, both fixed and mobile.

The price driven chair that we were experiencing in fixed broadband we will have had one month of the final disconnection of the final cohort.

Speaker Change: In January but from February onwards that won't be the case anymore.

Speaker Change: If you look at how we are playing in the market and I think our commercial performance starting to highlight that we have a full range now of simple propositions for our customers from mobile to fixed convergence family plans.

Speaker Change: And fixed broadband bundles you name. It we are there and that these offers that are being supported as test continue to demonstrate by strong performance in our networks.

Speaker Change: Both fixed and mobile.

Margherita Della Valle: So on the back of these trends and the changes that we are seeing in our operations, if you set aside the TV transition that we talked about earlier, you should expect a continued underlying acceleration starting from the next quarter. And, just as a quick build, don't forget about Vodafone Business in Germany. That will definitely add to the growth profile. What you've seen here in Q3 is certainly an anomaly.

Speaker Change: So on the back of these trends and the changes that we're seeing in our operations. If you set aside the TV transition that we have talked about earlier you should expect a continued underlying acceleration starting from the next sport and just as a quick builds don't forget about Vodafone business in Germany that.

Speaker Change: We'll definitely adds to the growth profile and what you've seen here in Q3.

Speaker Change: Certainly an anomaly and business will also next year positively to growth in Germany.

Jakob Bluestone: And business will also positively contribute to growth in Germany next year. And, last but not least, of course, in the second half, you add to that the positive impact from the national roaming agreement with EINZ and ETS. And then you can see clearly that FY26, once we have the MDU transition out of the way, will be a very pleasing picture for Germany. Thank you. Thank you, Andrew. The next question this morning comes from Jakob Bluestone at Exane. Jakob, please go ahead.

Speaker Change: And then last but not least of course in the second half you add to that the positive impact from the national roaming agreement with items and items and then you can see clearly that FY 'twenty six once we have the MDU transition out of the way in particular will be a very pleasing picture for Germany.

Speaker Change: Okay.

Speaker Change: Thank you Andrew next question. This morning comes from Jakob Bluestone at Exane.

Jakob Bluestone: Please go ahead.

Luka Mucic: Thanks, and thanks for taking my questions, and Just getting back to the B2B revenue growth acceleration that you've talked about, I'd be interested if you could just talk a little bit about the sort of margin mix or..., the revenue mix from that. Are these similar margin revenue streams, or refer in your slides to things like cloud and various other security services. Are these lower margin revenues? when we think about how to think about that revenue acceleration feeding into EBITDA. See you later in the air.

Jakob Bluestone: Thanks, and thanks for taking my question.

Just getting back to the <unk> revenue growth acceleration that you've talked about I'd be interested if you could just talk a little bit about sort of margin mix.

Jakob Bluestone: Margin of the revenue mix from that.

Are these similar margin revenue streams to.

Speaker Change: Tumor or when you refer in your slides to things like cloud and various other security services are these lower margin revenue stream. So just when we think about how to think about that revenue acceleration feeding into EBITDA growth.

Later in the year. Thank you.

Luka Mucic: Yeah, perhaps I can take this as well. And the answer is it depends. Because in Vodafone's business, we have a broad portfolio. We have the classic connectivity products with a very similar margin profile to consumers. And then we have the beyond connectivity products, so in particular, the cloud and IoT solutions. There we have a negative margin differential to the connectivity products.

Speaker Change: Perhaps I can take this as well and.

Speaker Change: Answer is it depends.

Speaker Change: <unk> and Vodafone business, we have a broad portfolio, we have the classic connectivity products with very similar margin profile to consumer and then we have the beyond connectivity products. So in particular, the cloud and Iot solutions. There, we have a negative margin differential to <unk>.

Speaker Change: The connectivity products.

Luka Mucic: It's not huge at the Vodafone business aggregate level. We're talking about a couple of percentage points. But what is more important is that this part of the business has a very low capital intensity requirement. And therefore, in terms of what it actually yields, in terms of cash flows, and that is ultimately what matters most, it is actually very positive. And of course, the growth profile is of a very different nature as well in the cloud and in IoT. Now we're growing in the 20s in the connectivity world, but rather in the low to maximum mid single digits.

Speaker Change: Not huge at the Vodafone business aggregate level, we're talking about a couple of percentage points, but what is more important is actually that this part of the business has a very low capital intensity required and therefore in terms of what it actually yields in terms of cash flows and that is ultimately what matters most is actually.

Speaker Change: Very positive and of course, the growth profiles of a very different nature as well in cloud and Iot.

In the twenties.

Speaker Change: The connectivity world of costs, rather than the low to make some more mid single digits and therefore in terms of the actual returns from a cash perspective. This business is super accretive to Vodafone.

Akhil Dattani: And therefore, in terms of the actual returns from a cash perspective, this business is super profitable for Vodafone. Thank you. Thank you. Our next question comes from Akhil Dattani at JP Morgan. Akhil, please go ahead. Hi, morning.

Speaker Change: Thank you.

Acute Autonomy: Thank you. Our next question comes from acute autonomy at JP Morgan. Thank you. Please go ahead.

Acute Autonomy: Hi, Good morning, Thanks for taking my question I just had a question on shareholder returns.

Akhil Dattani: Thanks for taking the question. I just had a question on shareholder returns. You've spoken in the past about the fact that as the portfolio at Vodafone changes, that can have an impact on how you think about shareholder returns. And in the last quarter, you talked about possibilities around both the dividend and buyback. I guess what I was hoping to understand is two things.

JP Morgan: You've spoken in the past around.

<unk>.

Acute Autonomy: As the portfolio of Vodafone changes.

Acute Autonomy: We have had an impact on how you think about shareholder returns and then the last quarter you've talked about.

Acute Autonomy: Possibilities throughout both the dividend and buyback I guess, what I was hoping to understand is two things one is.

Margherita Della Valle: One is you're currently in negotiations in Italy, and obviously there's limits on what you can say there, but that could materially change the portfolio. So I wondered if we should expect by May to be in a position to have enough visibility as to how you might want to reshape your shareholder remuneration policy given the obviously uncertainties around whether Italy closes by then, sorry, is announced by then. And even if it is, there's obviously a timeline to get that deal in the UK closed.

Acute Autonomy: You're currently in negotiations in Italy, and obsolete there's limits to what you will see that but that could materially change the portfolio. So I wondered if we should expect by maybe you'll be in a position to have enough visibility.

Acute Autonomy: As to how you might want to reshape your shareholder remuneration policy.

Acute Autonomy: Given the uncertainties around whether it closes by then.

Acute Autonomy: By then and even if it is.

Acute Autonomy: There's obviously a timeline to get that deal in the UK closed.

Luka Mucic: And then the second bit is just to understand, irrespective of that, could you just really update us on the general building blocks in terms of how we should think about shareholder returns? I mean, the first is there are certain debates around the coverage of your dividend, but equally, Luka, I think you've mentioned buybacks as an option. So just if you could help us understand quite how we think about these topics. Thanks a lot.

Acute Autonomy: And then the second bit is just to understand irrespective of that could you just really update us on the general building blocks in terms of how we should think about shareholder returns. The first is there were certain debates around the coverage of your dividend, but equally Luca I think you've mentioned buybacks as an option. So just if you could help us square quite housing by these topics. Thanks a lot.

Margherita Della Valle: Thanks, Akhil. I'll cover the timing and then ask Luka to comment on how we see the building block. On the timing front, we said back in November that we would review our capital allocation overall once the Spanish deal closes, and we continue to target that half-month of this calendar year. We are still going through some approvals, nothing onerous, but, as always, it can take some time. Therefore, you should expect us, as you mentioned, to update you on capital allocation in our May results. In the way we think about it, Luka?

Speaker Change: Thanks, Archie light covenant, the timing and then ask Luke to comment on how we see the building blocks.

On the timing front, we said back in November that we will review our capital allocation overall, whilst the Spanish deal closes and we continue to target for that.

Luca: Outside of this calendar year, we're still going through some approvals nothing onerous, but as always it can take.

Speaker Change: Some time.

Speaker Change: And therefore, you should expect US as you mentioned to update you on our capital allocation routine our may results.

Speaker Change: And the way, we think about it Luca.

Luka Mucic: I can only reiterate what we already covered in H1. Earnings. First of all, we are very focused on generating capital. That's the whole focus on operational excellence.

Speaker Change: I can only reiterate what we already cover at H One earnings first of all of course.

We are focused on generating capital that's still a focus on operational excellence.

Luka Mucic: I'm certainly looking into all of the components of our end-to-end cash conversion chain, and I think over time, we will have further opportunities with the customer simplicity growth focus to also improve there. But then, more importantly in the short term, in terms of capital allocation, we have already covered briefly one of the previous questions, the question around capital intensity. So nothing that would suggest any need for any changes in that respect. In terms of the balance sheet, I'm pleased that I was handed a very solid and strong one, actually, with very long-term debt at reasonable interest rates. Also, in that respect, there's no significant shift that anybody would need to expect.

Speaker Change: Im certainly looking into all of the components of our end to end and cash conversion chain and I think.

Speaker Change: Over time I'm sure we will have further opportunities with the customer simplicity growth focus to also improve deaths, but then more importantly in the short term in terms of the capital allocation. We have cover it briefly already on one of the previous questions.

Speaker Change: A question around capital intensity, so nothing that would suggest any need for any changes in that respect.

Speaker Change: In terms of the balance sheet.

Speaker Change: I'm pleased that I was handed a very solid and strong one actually with very long term debt.

Speaker Change: At reasonable interest rates also in that respect.

Speaker Change: No significant shifts that anybody would need to expect and then in terms of the actual shareholder.

Luka Mucic: In terms of actual shareholder returns, yes, I am convinced that we have to look at a good mix of different means. On the dividend front, it is important to me to make sure that an ongoing dividend is covered by the underlying free cash flow of the firm. Spain is going to change that a bit, but we will use all of the visibility that we have by then to then come up with the right call. Nothing is decided yet.

Speaker Change: It turns yes.

Speaker Change: I am convinced that we have to look at.

Speaker Change: A good mix of different means on the dividend front. It is important to me to make sure that an ongoing dividend is covered by the underlying free cash flow of the firm.

Speaker Change: Spain is going to change that a bit.

Speaker Change: But.

Speaker Change: We will use all of the visibility that we have put in to then come up with the right call nothing is decided.

Margherita Della Valle: And yes, also share buybacks could then be part of the mix, in particular if we have sizable cash inflows like the one that we are expecting from Spain at the closing of that transaction. Stuart, can I just clarify one thing, Margherita, about your first answer? Does that mean that Italy, in terms of whether it happens or not, and the construct of any potential deal doesn't necessarily impact it? Because I guess it's quite a big asset for you.

Speaker Change: Also share buybacks could then be part of the mix in particular.

Speaker Change: We have sizable.

Speaker Change: One off.

Speaker Change: No.

Speaker Change: Cash inflows like the one that we're expecting from Spain at the closing of that transaction.

Speaker Change: Can I just clarify one thing a margarita on your first answer.

Speaker Change: Does that mean that Italy in terms of whether it happens or not and the construct of any potential deal doesn't necessarily impact because I guess, it's quite a big asset for you. So I'm just I'm just trying to understand how you can give clarity in may.

Margherita Della Valle: So I'm just trying to understand how you can give clarity in May if, potentially, that deal hasn't yet materialized by that point. Our intention remains to give you clarity in May. As you can imagine, we will have the four billion euros from Spain coming in, and therefore we don't think we should delay any further. So we will update you in May. That's clear.

Speaker Change: Potentially that deal hasn't yet materialized by that point.

Speaker Change: Our intention remains.

Speaker Change: To give clarity in may as you can imagine we will have the 4 billion proceeds from Spain coming in and therefore, we don't think we should delay any further so we will update you and make that.

Georgios Ierodiaconou: Thank you. Thank you. The next question comes from Georgios Ierodiaconou from Citigroup. Georgios, please go ahead.

Speaker Change: That's clear thank you.

Speaker Change: Thank you. The next question comes from Joseph <unk> from Citigroup.

Joseph: Please go ahead.

Margherita Della Valle: Good morning, and thank you for taking my question. It's just further clarification on Germany. You mentioned B2B being a tailwind from next quarter, and that the NRA will, at some point, contribute positively, but I'm just trying to understand the impact on broadband service revenue growth from the losses you accumulated in the last few quarters. And, just curious, how will that be mitigated? Are there more price actions you can take, like last year, in order to improve output in broadband? Or is it just a KPI recovery momentum?

Joseph: Good morning, and thank you for taking my question on this just a further clarification about Germany.

Joseph: You mentioned to be putting a tailwind from next quarter.

Joseph: And that.

Joseph: At some point will contribute positively.

Joseph: Im just trying to understand the impact on the broadband service revenue growth from the losses were accumulated in the last few quarters.

Joseph: Just curious how would that be mitigated more price actions you can take like last year in order to improve our broadband or is it a <unk> recovery momentum and then just a clarification on the NRA because I don't think its been finalized yet.

Margherita Della Valle: And then just a clarification on the NRA because I don't think it's been finalized yet. Just curious as to when we should expect the agreement to be finalized. Thank you. So maybe, Luka, you can take the timing of the contribution to the one-on-one deal. In terms of broadband profile, as we said, from a KPIs perspective, we will have the losses accumulated so far and one more impact from the month of January to close the effect of the price increases that we've had over 70% of the base. Beyond this, the price increases, which we have in the back of us, let's say, at this stage, will continue to support growth for part of the year in FY25 because, as you know, we As far as pricing is concerned, I'd say it's too early to prejudge the moves for FY25.

Joseph: Just curious as to when we should expect that agreement to be finalized and therefore start to contribute.

Joseph: So let me know how you think the timing of the contribution of the one in one deal.

Joseph: In terms of broadband profile.

Joseph: As we said some of the Kpis perspective, we will have the losses accumulated so far and one more impact from the month of January to flow as the effect of the price increases that we've had over 70% of the base.

Joseph: Beyond this the price increases, which we have in the back of US, let's say at this stage, we continue to support growth.

Joseph: For a part of the year in FY 'twenty five because as you know we face them throughout FY.

Joseph: FY 'twenty four as far as pricing is concerned I would say, it's too early to prejudge the moves off of FY 'twenty five of course, we will have to assess the market dynamics, but I wouldn't prejudge anything in that space.

Margherita Della Valle: Of course, we will have to assess the market dynamics, but I wouldn't prejudge anything in that space. And beyond this, obviously, pricing is just one lever of what we see. And, as I mentioned earlier, we have good KPI trends.

Joseph: Beyond this obviously pricing is just just one lever.

Joseph: Of what we see and as I mentioned earlier, we have a good kpis trends.

Luka Mucic: We have good offers on the market, supported by good networks. So we really see the overall underlying growth in Germany picking up. Yeah, in terms of the 1&1 contract, just to be very clear, we have agreed on binding heads of terms already a long time ago. What we're currently working through is the detailed schedules of the long-form agreement, and that shouldn't take too long to finalize. But it is, as you will appreciate from a more tech requirements perspective, quite detailed and precise. And that's why we are close to finalizing it, but not yet fully finalized. But the heads of terms are binding.

Joseph: We have good offers on the market supported by good networks. So we see the overall underlying growth in Germany, peaking out.

Yeah in terms of the <unk> contract just to be very clear.

Joseph: We have agreed on binding heads of terms already a long time ago. What we're currently working through the detailed schedules of the long form agreement and that Shouldnt take too long to finalized but it is.

Joseph: As you will appreciate from a more tech requirements perspective.

Joseph: Detailed and precise.

Joseph: And that's why we are close to finalizing it but not yet fully financed but the heads of terms are binding and then from a from a go lives perspective, so to say.

Luka Mucic: And then from a go-live perspective, so to say, it's still the same assumption. We are going to see positive impact on the revenue and EBITDA front from the second half year because we are supposed to start the onboarding basically after the summer period. And then from a cash flow perspective, because we have this year to still invest a bit from a CapEx perspective in the onboarding, we are seeing a positive contribution from a cash flow perspective starting in FY20. Thank you. Thank you. The next question comes from James Ratzer at Newstreet Research. James, please go ahead.

Joseph: It's.

Joseph: Still the same assumption, we are going to see positive impact on the revenue and EBITDA front from the second half year because.

Joseph: We are supposed to start the onboarding.

Basically after the summer period and then.

Joseph: From a cash flow perspective, because we have this year.

Joseph: Still invest a bit from a capex perspective into the Onboarding we are seeing.

Joseph: Positive.

Joseph: The contribution from a cash flow perspective, starting in FY 'twenty six.

Speaker Change: Okay. Thank you.

Speaker Change: Thank you. The next question comes from James Ratcliffe at New Street Research James. Please go ahead.

James Ratzer: Yes, good morning, Margherita and Luka. Thank you for taking the time to answer my question. So you've mentioned a couple of times on the call so far the Microsoft deals, and I would like to dig into that in a little bit more detail if we can, specifically from the cost perspective and the impact it will have on your business. So firstly, just from a kind of data center perspective, I think Vodafone has you say access to about 800,000 square meters of data center space. How much of that is actually owned directly by you?

James Ratzer: Yes, good morning, Marguerite generally pass on you taking the question.

James Ratzer: So you've mentioned a couple of times on the call Hi, Bob Microsoft deals and would like to dig into that in a little bit more detail. We can specifically from a cost perspective and the impact it will have on your business. So firstly just from a kind of dates for some time.

James Ratzer: Perspective, I think Vodafone has you say.

James Ratzer: Access to about 800000 square meters of datacenter space how.

James Ratzer: How much of that is actually.

James Ratzer: Directly by year.

Luka Mucic: And as a result of the Microsoft deal, there is an opportunity for you now to... build Cell Data Centers and potentially unlock value here. And similarly, is there a mixed shift that's gonna happen between CAPEX and OPEX? As a result of this transaction, are you moving to kind of higher lease costs with Microsoft but potentially lower direct CapEx? I would just be interested to understand how we should think about the impact of this partnership, given it seems so significant. Thank you.

James Ratzer: And as a result of the Microsoft deal is R&R GCE now too.

James Ratzer: Data centers and potentially.

Unlock value here and assembly is there a mix shift that's going to happen between Capex and Opex.

James Ratzer: As a result.

James Ratzer: Transactions are you, losing kind of higher lease costs with Microsoft but potentially low.

James Ratzer: Direct capex just interest to understand how we should think about.

James Ratzer: The impact of this partnership given it seems safe to guest count on Q.

Luka Mucic: Yeah, perhaps I can answer that because your questions were more focused on the financial aspects. But I think we are missing out, of course, with the focus on data centers, a big, significant, positive impact on all of the other pillars of the partnership because the co-investments and the support that we are getting from Microsoft on the B2B go-to-market front on the IoT front, of course, is very value-accretive for Vodafone as well. But if we are looking only at the data center front, first of all, our existing data centers, the vast majority of them are leased and not owned. So that is something that you need to take into account.

Speaker Change: Perhaps I can.

Speaker Change: I can answer that because your questions, but more focused on the financial aspects, but I think we are missing out of course with the focus on data centers, a big a significant positive impact in all of the other pillars of the partnership because the co investments and the support that we're getting from Microsoft on the <unk>.

Speaker Change: Go to market front on the Iot front of course is very value accretive for Vodafone as well, but if we are looking at the data Center front.

Speaker Change: Only.

Speaker Change: First of all our existing data centers or the vast majority of them are leased and not owned.

Speaker Change: So.

Speaker Change: That is something that you need to take into account we are nevertheless, expecting actually a significant net.

Luka Mucic: We are nevertheless expecting, actually, a significant net benefit from moving to Azure in those data centers. We have calculated an NPV that is in the triple-digit million range, and it comes from essentially significant cost synergies. It will result in a very small CAPEX to OPEX shift on the OPEX front. Yes, of course, there will be OPEX that will be consumed through the utilization of the Azure platform, but it will be countered by other OPEX savings due to the efficiency that we are generating in operating our systems and applications, cleaning up as well, and managing the upgrade cycle in a more efficient way on the Azure platform. So don't think about it as a dramatic shift between CAPEX and OPEX. We are talking about double-digit millions over the 10 year time frame.

Speaker Change: Benefit from moving to Azure in those.

Speaker Change: Data centers, we have calculated an NPV.

Speaker Change: Isn't a triple digit million.

Speaker Change: Range.

Speaker Change: It comes from essentially a significant cost synergies it will.

Speaker Change: Resides in a very small capex to opex shift.

Speaker Change: On the Opex front, yes of course, there will be opex, so that will be consumed through the utilization of the azure platform, but it will be countered by other opex savings due to the efficiency that we're generating.

Speaker Change: Operating our systems and applications cleaning up as well in managing the upgrade cycle in a more.

Speaker Change: Efficient way.

Speaker Change: On the gas through our platform. So don't think about it as a dramatic shift between Capex and Opex. So we are talking about double digit millions over the 10 year.

Luka Mucic: And all of those impacts and also the corresponding investment have been fully considered in our long-range plan. So it resides essentially in a shift between internal expenses and taking them to our partnership. And a triple-digit million euro NPV is quite significant.

Speaker Change: Frame and all of those impacts and also the corresponding investment.

Speaker Change: Has been fully considered in our long range plan. So it besides essentially shifts between internal.

Speaker Change: <unk> expenses and taking them to our partnership.

Speaker Change: And a triple digit million Euro MTV is quite significant that's coming from we're getting lower costs. We last year, then with your existing data center providers.

Luka Mucic: That's coming from getting lower costs with Azure than with your existing data center provider and our own operations. So it's really a combination.

Speaker Change: And our own operations.

Really a combination we are moving 10 thousands of servers onto azure and all of them.

Luka Mucic: We are moving 10,000 servers to Azure, and all of them and the legacy apps on top of them actually have quite a significant maintenance burden placed on them. And by moving them to a modern public cloud infrastructure, we can gain leverage and efficiency there. Great, thank you very much. Thank you. The next question this morning comes from Polo Tang at UBS. Polo, please unmute yourself.

Speaker Change: And the legacy apps on top of them.

Speaker Change: <unk> quite a significant maintenance burden placed on them.

Speaker Change: By moving them to a modern public cloud infrastructure, we can gain leverage and efficiencies there.

Speaker Change: Thank you very much indeed.

Speaker Change: Thank you. The next question. This morning comes from the time at UBS Hello, Please on mute yourself.

Polo Tang: Hi, thanks for taking the question. I have one question about Etisalat. Can you clarify when they will take their seat on the Vodafone board? And are there any further steps that need to be taken before this happens?

Hi, Thanks for taking the question I have one question about <unk> can you clarify when they will take their seats on the vote from boards and are there any further steps that need to be taken before this happens and separately have they given you any feedback on where they would like to see the dividend and shareholder returns.

Margherita Della Valle: On the timelines, we are still going through the process, and as Vodafone, we are, of course, supporting the process with whatever information sharing that is required by the various authorities, but it still needs to be completed, and therefore, we will update you. We look forward to welcoming Hatem on the board and having a fuller conversation around the topics you mentioned. I think it would be really helpful to be able to have these conversations once they join the board. Thank you, Polo. We have time for one last question this morning from Maurice Patrick at Barclays. Maurice, please go ahead.

Speaker Change: On the.

Speaker Change: The timelines are.

Speaker Change: We're still going through the process.

Speaker Change: And as Vodafone we are of course supporting the <unk>.

Sweet.

Speaker Change: What other information sharing that is required by the various authorities, but it still needs to be completed and therefore, we will update you we look forward to welcome.

Speaker Change: Catherine on the board and at that point.

Speaker Change: Fuller conversation.

Speaker Change: Around the topics you mentioned I think it would be really helpful to be able to add these conversations once they joined the board.

Speaker Change: Thank you Peter we have time for one last question. This morning.

Speaker Change: From Maurice Patrick of Barclays.

Maurice G. Patrick: Yeah, morning, guys. Thanks for taking the question. If I could ask a slightly dry question around the central cost function, please. You spend about 800 million euros or so on the central cost function, which you allocate to the operating companies. And given the UK deal you announced and Spain, there's been some discussion around the extent to which those charges are above the line and below the line and how much that cost can be flexed going forward. So the question really is, as you simplify the group structure, i.e. sell Spain, do something in Italy, to what extent can that central function cost be flexed down with fewer opcodes, or is it more fixed? There's more color, and that would be very helpful.

Chris. Please go ahead.

Maurice G. Patrick: Yeah morning, guys. Thanks for taking the question if I could ask.

Maurice G. Patrick: A dry one around the central cost function. Please.

Maurice G. Patrick: We spend about 800 million euros or so in the central cost function, which you allocate to the operating companies and given the U K today announced in Spain, there's been some discussion around the extensive social charges are above the line below the line and how much that costs can be flexed going forwards. So the question really is as you do simplify that.

Maurice G. Patrick: Infrastructure I E.

Maurice G. Patrick: <unk>, Spain do something in Italy to what extent connect central function cost be flex down with few op codes or is it more more fixed as a more more color that'd be very helpful. Thank you.

Maurice G. Patrick: Yes.

Maurice G. Patrick: Upsell.

Maurice G. Patrick: The 800 million youre, referring to are actually.

Margherita Della Valle: Thank you. In a nutshell, the 800 million you are referring to is actually CAPEX that is being spent on behalf of the markets in areas such as the common data centers that Luka was just describing. So the CAPEX is held in the center because that's where they are spent. We have a single data center infrastructure, but actually, we then have the depreciation impacting the markets over time as the CAPEX gets depreciated. So this is, I would say, a sort of simple distribution mechanism, but more broadly, the costs that we actually spend today for the whole OPEX of the shared operations are sitting firmly within what you see in terms of market P&Ls, and we are transforming how we run our shared operations precisely because we want to inject more flexibility. You have heard me say, I think back in May, that we are moving towards a commercial shared operations setup. What do we mean by commercial? It means that, with all our markets, we are going into an MSA. Actually, it starts on the 1st of April.

Speaker Change: The capex.

Speaker Change: Capex.

Speaker Change: And that that are being spent on behalf of the markets in areas such as the common data center that Luca was just.

Speaker Change: Describing so the capex.

Speaker Change: In the center, because that's where they are spent we have a single data center infrastructure.

Speaker Change: Actually we then add the depreciation impacting the market.

Speaker Change: Overtime as the Capex get depreciated. So these are I would say a simple distribution mechanism.

Speaker Change: But more broadly.

Speaker Change: The costs that actually we spend today for the whole opex of the shared operations are sitting firmly within what you see in terms of market P&l's.

Speaker Change: We are transforming how we earn our share of the operations.

Speaker Change: Besides the because we want to inject more flexibility you have heard me say I think back in May that we are moving towards a commercial sales operations setup, what do we mean by commercial it means that with all our markets. We are going into an MSA actually it started from first of April. So we have spent time preparing but it's starting.

So we have spent time preparing, but it's starting now. There will be clear MSAs with pricing, which will be volume-driven, and SLAs exactly as in a commercial relationship between the group and the markets. And this will also help us open up these shared operations to our partners within the industry or beyond as needed. So we see this actually as an opportunity going forward, but of course, wherever needed, we will always have our cost program, and our efficiency programs in play as well. And just as a very small build, of course, we are paying attention to this as well when we negotiate third-party relationships so that we have the flexibility to adjust and potentially transfer if we have major carve-outs from the group.

Speaker Change: Now that will be clear msas right.

Speaker Change: Pricing, which will be volume driven and SLA is exactly is in our commercial relationship between the group and the markets and this will also help us open up the sand operations too.

Speaker Change: Our partners within the industry.

Speaker Change: Or beyond.

Speaker Change: As a as needed.

Speaker Change: So we see this actually as a as an opportunity going forward, but of course whenever needed. We will always have a cost program our efficiency programs in in play as that as well.

Speaker Change: And just as a very small period of course, we are paying attention to this as well when we negotiate third party relationships. So that we have the flexibility to.

Speaker Change: To adjust and potentially transfer if we have.

Speaker Change: Major carve outs from the there are a number of areas in the shale operations when we ask.

There are a number of areas in the shared operations. We are absolute leaders in our industry, if you think about it. We have just started, for example, what is said to be the largest radio network tender in the world, probably outside China, I would say, through our procurement process. And this is a case where, for example, Yand is going to join us so that we have better results for all. I think there are opportunities in the industry beyond Vodafone to commercialize our shared operations. And we have also brought in Accenture, as you have seen, into the system to help us accelerate this transformation based on their experience in commercial operations. Great, thank you. Thank you for all your questions this morning.

Speaker Change: We are absolutely there is in our industry. If you think about it we have just started for example, what is set to be the largest radio network tender.

Speaker Change: In the world, probably outside China, I would say.

Through our procurement process and this is a case in which for example, and is going to join us. So that we have better results for all I think there are opportunities in the industry beyond broader phone to commercialize our sales operations.

Speaker Change: And we are also protein accenture as you have seen in the system to help us accelerate this transformation based on that experience in commercial operations.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you for your questions. This morning, I will now hand back to Margarita for any closing remarks.

I will now hand it back to Margherita for any closing remarks. Thank you, everyone, for your time today. Vodafone is changing, and we are seeing the impact of our focus on our priorities of customers, simplicity, and growth. Consumer NPS and the Tractors course are moving in the right direction. We are transforming our shared operations to be a simpler business. Vodafone business growth is accelerating in line with our ambitions, as we have discussed. And after announcing our transactions in the UK and Spain, we are engaged in constructive discussions in Italy. I look forward to updating you on our progress at our full-year results in May with Luka. Thank you very much. Thank you.

Margarita: Thank you everyone for your time today.

Margarita: When he is changing and we are seeing the impact of our focus on our priorities of customers simplicity and growth.

Margarita: Consumer NPS and detector scores as moving in the right direction, we are transforming our share in the operations to be a simpler business.

Margarita: Vodafone business growth is accelerating in line with our ambitions as we have discussed and after announcing our transactions in the UK and Spain. We are engaged in constructive discussions in Italy.

Speaker Change: I look forward to updating you on our progress at our full year results in May with Luca. Thank you very much.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Yeah.