Vodafone UK Defined Contribution Pension Plan …

1 Vodafone UK Defined Contribution Pension plan lifestyle Option lifestyle Factsheet This factsheet is designed to provide you with information about the lifestyle strategy; it is not independent financial advice to individual members or the Trustee. It should be read in conjunction with your Pension scheme booklet. If you wish to discuss your investment options you are recommended to seek independent financial advice. Investment Objective The primary aim of this strategy is to automatically transfer your account from higher-risk investments (such as equities) to lower-risk investments (like bonds and cash) over the 20 year period leading up to your retirement age. Your account will be allocated between Equity, Target Return, Bonds and Cash; this allocation will change over time as detailed below. Under the lifestyle option your account will be invested in the Melody Fund until you reach age 45 after which your account will be gradually switched from the Melody Fund to the Harmony Fund over a 10 year period.

2 Once you reach age 61 your account will then be switched from the Harmony Fund into bonds and cash so that by the time you reach your target retirement date (age 65), your account will be invested 75% in the Pre-retirement Fund and 25% in the Cash Fund. Underlying Funds Funds Description Melody Fund The primary aim of this fund is to provide capital growth over the medium to long term. This fund invests 35% in UK equities, while the remaining 65% is invested in global equity markets, including emerging market equities. Harmony Fund This Fund invests 14% in UK equity markets, 26% in global equity (including emerging market equities), 30% in the Bond Fund and 30% in the Target Return Fund. Pre-retirement Fund The Fund invests wholly in the Legal & General Pre-Retirement Fund. The Fund aims to invest in assets that reflect the investments underlying a typical non-inflation linked Pension annuity product.

3 Since mid-September 2004, the Fund has invested in the Over 15 Year Gilts Index Fund and the AAA-AA-A Corporate Bond Over 15 Year Index Fund. The mix between funds is regularly reviewed. Cash Fund This Fund invests wholly in the Legal & General Cash Fund. This Cash Fund aims to deliver competitive returns from sterling cash deposits with a number of UK and overseas financial institutions. It aims to match the median return of similar cash funds and therefore offer protection against stock market falls rather than growth in the long term. The Cash Fund holds cash deposits with high quality institutions monitored by Legal & General s cash management team. The Fund will also hold investments issued by the UK Government. Progression of lifestyle to retirement age 65 Ca shBondsTarget ReturnEquity0%10%20%30%40%50%60%70%80%90 %100%< 45 4647484950515253545556575859606162636465 AgeAllocationCashBondsTarget ReturnEquity