Vodacom Group Limited · JSE:VOD
Vodacom — Investor Day (September 2018)
59 slides from Vodacom's investor day presentation, September 2018
Slide 1: Vodacom Open Office 2018 Welcome
Vodacom Open Office 2018 Welcome The future is exciting. Ready?
Slide 2: Disclaimer
Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated (‘relevant persons’). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the f
Slide 3: Our strategy
Our strategy • Deep understanding of our customers & their needs • Leading Telco with the best • Data growth network and best technology • Propositions to lead in chosen segments • Enterprise Segmented Best Propositions Technology • Build digital organisation of Digital Organisation Best Customer •
Slide 4: Showcases: Technology, Retail and service
Showcases Technology Retail and service • The best network • Creating a frictionless environment for our • Proud history of “firsts” customers • Demistifying 5G • Empowering customers with relevant • Smart capex planning information • Driving personalisation for each customer • A digital online firs
Slide 5: Showcases: Digital services, Fintech
Showcases Digital services Fin tech • Creating digital experiences for our • Africa’s biggest payment platform customers • Insure, pay and lend • Platforms and ecosystems • Embracing partnerships • Unique content distribution
Slide 6: Showcases: IoT / Enterprise, Big data
Showcases IoT / Enterprise Big data • Partner of choice for enterprise • Rapid advancement digitalisation • Expanding our use cases • A new way of engaging – vertical • Empowering the business specialist • Driving relevance for our customer • Enabling the digital journey for businesses • Unlocking I
Slide 7: Vodacom Group Technology Investor day 2018
Vodacom Group Technology Investor day 2018 The future is exciting. Ready?
Slide 8: Technology 2020 key building blocks supporting the vision
Technology 2020 key building blocks supporting the vision Connectivity Mobile – Readying 5G Accelerating Fixed (Access) Core & Analytics, Core Transport Infrastructure AI & Big Infrastructure data Next-gen IT IT Modern Talent & operating Architecture sourcing model Consumer Differentiated capabiliti
Slide 9: What have we achieved so far
What have we achieved so far South Africa International Benchmark data performance – 4G (Mbps) Data speeds (Mbps) June 2018 (June 2018) Vodacom Next best competitor Vodacom 31 13 Tanzania 12.3 8.6 Operator A 26 14 DRC 8.9 9.2 Operator B 14 9 Operator C Mozambique 7.3 6.0 14 6 Lesotho 41.2 22.3 Downl
Slide 10: Technology presentation
Vodacom Open Office 2018 Technology presentation The future is exciting. Ready?
Slide 11: Technology | Smart Capex Planning
Technology | Smart Capex Planning Legacy Planning Smart Capex Planning Big Data analytics and Planning Criteria Planning Criteria Machine learning: Continuous Where to build Data Ingested Machine Radio Network GB to TB Learning Where to build Radio Network 1000x Big Data & Analytics Capacity 19 43 D
Slide 12: Smart Capex Planning | Key Takeaways
Smart Capex Planning | Key Takeaways Speed of Execution Weeks to Hours Big Data & Analytics Automation ROI maximisation >10% uplift target Data driven decision making Improved Customer Experience Network NPS uplift Investor day | September 2018 3
Slide 13: Africa's first 5G
Africa’s first 5G Ultra-fast, hyper-speed internet connection
Slide 14: Technology | What is 5G?
Technology | What is 5G? Characteristics Spectrum Hot Spot Urban Sub-urban Rural Enhanced • >20Gbps peak speed; 100+ Mbps user experience Mobile Broadband • Extreme capacity 700 MHz 2020 Mission (Coverage) (Digital • Ultra-low latency: 1ms Dividend) Critical • Optimised applications hosted at the ed
Slide 15: Commercial Operations Strategy
Vodacom Open Office 2018 Commercial Operations Strategy The future is exciting. Ready?
Slide 16: Our Digital Ambition
Our Digital Ambition 1 Deliver best customer experience 2 Empower customers through Digital 3 Improved NPS 4 Improved cost utilisation Investor day | September 2018 2
Slide 17: Digital Care Framework
Digital Care Framework Eradicate Digitise Automate Steer Specialise Eliminate Reinvent service Fully complete & Proactively manage Specialise & contacts (Calls, design & add resolve service service requests, empower staff to SRs, Messaging) capabilities to reduce requests and activities steering cus
Slide 18: Key performance indicators
Measures of success Strategic Pillars Key Increase MyVodacom App penetration performance Reduce call volumes indicators Drive growth via online and upgrades Investor day | September 2018 4
Slide 19: Sales & Distribution Strategy
Vodacom Open Office 2018 Sales & Distribution Strategy The future is exciting. Ready?
Slide 20: Strategy – CBU Sales and Distribution
Strategy – CBU Sales and Distribution • Increase Online contribution (postpay acquisition and renewals) • Automated Online / App journeys: Upgrades, New contracts, Accessories • Digital Sales assistance Online Retail Store Evolution Transformation • Smart Retail Experiences: Start Online, finish in
Slide 21: IoT Strategy
Vodacom Open Office 2018 IoT Strategy The future is exciting. Ready?
Slide 22: Introduction | IoT is already here
Introduction | IoT is already here, in one form or another IoT is transforming the way organisations work 76% of all the companies we 76% interviewed say that IoT will 86% 86% of companies using IoT say they are seeing be “critical” for the future “significant” ROI success of any organisation in the
Slide 23: Market sizing | How big will this get in South Africa?
Market sizing | How big will this get in South Africa? Traditional bottom up approach to sizing Top down approach to sizing €0,9bn Up to €19,1bn *921,4 Total 1% of GDP 1 732 11% of GDP 19 051 80,82 Software *662,3 235,86 52,04 Hardware GDP Low GDP High 168,55 road IOT road IOT 293,55 Services sizing
Slide 24: Market | Our presence in today's value chain
Market | Our (and all Telcos) presence in today’s value chain… Value split for IoT technology spending, 2015 $50 billion – 140 billion Physical set up 10-20 Integration Have to play services 20-40 General Across whole Partner contracting/project 10-20 value chain management operations Ecosystem Acce
Slide 25: Vodacom IoT Strategy
Vodacom IoT Strategy Add capabilities to our connectivity platform Connectivity Application Connectivity NB-IoT/ Video SCALE Analytics Enablement Management Cat-M 5G and Audio Grow services in selected vertical markets Services FOCUS Logistics Agriculture Utilities Healthcare Industrial Develop serv
Slide 26: M-Pesa Strategy
Vodacom Open Office 2018 M-Pesa Strategy The future is exciting. Ready?
Slide 27: M-Pesa the most effective enabler for financial inclusion
In each of our markets, M-Pesa has become the most effective enabler for financial inclusion Promoting Financial Inclusion 83% According to rigorous research by MIT’s M-Pesa Penetration 60% Poverty Action Lab over 10 years, M-Pesa 59% significantly: Of GSM base Active 30 day, FY18 • Increases saving
Slide 28: Beyond Money Transfer | M-Pesa evolving into a platform
Beyond Money Transfer | M-Pesa is evolving into a platform for Enterprise, Financial Services and Mobile Commerce Safaricom (Kenya) Vodacom Tanzania $ Vodacom Mozambique $ Vodacom Lesotho Vodacom DRC Money Transfer & Enterprise Financial Mobile Basic Services Payments Services Commerce • Agent depos
Slide 29: M-Pesa is Africa's biggest payments platform
M-Pesa is Africa’s biggest payments platform – and growing fast Greatest customer reach of any African FSP Major revenue growth engine for Vodacom as at 31 March 2018 14.2% 19.6% 70 2 500 growth growth M-Pesa Next African No 1 60 32.3m MM player African bank 2 000 customers 21m 20m 50 ZAR m KSh bn 1
Slide 30: Financial Services Strategy
Vodacom Open Office 2018 Financial Services Strategy The future is exciting. Ready?
Slide 31: Financial Services: Insure, Pay, Advance
Financial Services Grow and digitise current insurance offering and expand into other services Insure Pay Disrupt in payments sector by providing Financial convenient and diverse digital payment Services options for our customers Advance Disrupt lending by providing innovative and digital lending al
Slide 32: Financial Services
Vodacom Open Office 2018 Financial Services The future is exciting. Ready?
Slide 33: Vodacom Financial Services | Who are we?
Vodacom Financial Services | Who are we? R1 Billion airtime sold through VER Vodacom is the ONLY Telco in Insure Pay South Africa and Africa that has Growth of Life & its own payment gateway Funeral policies in the last 6 months to over Financial 100 000 Services Airtime Advance Lend has grown 174%
Slide 34: Airtime Advance | What is it?
Airtime Advance | What is it? Low on Airtime? Dial *135*082# to take out a Data Advance and pay back on your next recharge. Access fee R1 applies. T&C apply. Opt out? SMS OUT to 08217832 Your available advance is R50. 1.Airtime 2.Data 3.Historical Advances How to buy Dial *135*082# Airtime Data R3
Slide 35: Vodacom Express Recharge | What is it?
Vodacom Express Recharge | What is it? How to buy Dial *135*02# Use debit or credit card on USSD or My How to pay Vodacom App Qualifying Criteria Possess debit or credit card Investor day | September 2018 4
Slide 36: Vodacom Device Cover | What is it?
Vodacom Device Cover | What is it? Comprehensive R19/month Accidental Damage R15/month Contract Cover R5,99/month Device repairs and replacements through How to buy Vodacom stores nationwide network of Vodacom outlets. Contract Customers – Charge to Bill Device Insurance available to Vodacom con
Slide 37: Vodacom Funeral Cover | What is it?
Vodacom Funeral Cover | What is it? How to buy Dial *135*187# Premiums paid through prepaid recharge balance Easy and quick self-registration through USSD Premiums deducted from available Pay weekly, monthly or in advance How to pay recharge balance Valid SA ID Qualifying Vodacom prepaid custo
Slide 38: Vodacom Life Cover | What is it?
Vodacom Life Cover | What is it? Disability Cover Serious Illness Life Insurance Pays out tax-free lump sum Pays out a tax-free lump sum Pays out a tax-free lump sum death benefit of up to R1.5m on permanent disability of on diagnosis of covered up to R1.5m diseases, up to R1.5m How to buy Online qu
Slide 39: Vodacom Legal Cover | What is it?
Vodacom Legal Cover | What is it? Investor day | September 2018 8
Slide 40: Digital Services Strategy
Vodacom Open Office 2018 Digital Services Strategy The future is exciting. Ready?
Slide 41: Digital Products and Services - a key part of our vision
Digital Products and Services - is a key part of our vision Engaged: Part of all customers’ digital journey… Segmented/ Own Brands Rich Differentiated Flexible with Over Partnerships experience Digital the Top VOICE ERA DATA ERA Offers Reach DIGITAL ERA VAS Reasons to consume Engaged user Engaged us
Slide 42: Platforms for Digital Growth
Platforms for Digital Growth Provide a full e- and m-Commerce services platform Seamless “TV everywhere” E-commerce Video Deliver a compelling Ecosystems ecosystem of 3rd party Music The market destination for all propositions things music Digitise gaming and sports fan Enable brands to reach Digita
Slide 43: Big Data Strategy
Vodacom Open Office 2018 Big Data Strategy The future is exciting. Ready?
Slide 44: Strategy: Leverage our information advantage
Strategy Leverage our information advantage Responsibly collect information on all interactions with and Think Big, Start Small and Scale Fast by our customers. Information only to be used with Automated AI solutions allow us to scale customers’ consent and never shared with 3rd parties unless impac
Slide 45: The journey from a gut feel business to Artificial Intelligence
The journey from a gut feel business to Artificial Intelligence Learning Machine Applied Machine Learning Automated solutions Successful bespoke applied machine learning solutions: In the CVM domain Before 2015 2017 Recommender engines 2019+ Just for You Churn management Smart Notifications Fraud ma
Slide 46: Big data
Vodacom Open Office 2018 Big data The future is exciting. Ready?
Slide 47: Second personalised store front to service our customers
Second personalised store front to service our customers Hyper-personalization Global recommender with multiple product recommenders More than 11,5 million customers buying monthly 1,4 billion Just for You bundles sold in FY18/19 2
Slide 48: Hyper personalization through advanced machine learning
Hyper personalization through advanced machine learning Easy access Loyalty New growth to buy our products and services through Reward loyal customers through Support acceleration units with relevant intelligent recommendations Just for You for tenure and behavior cross-/up-sell offers 3
Slide 49: Vodacom
Vodacom Till Streichert ee __ 6
Slide 50: Optimising the value chain through digital
Optimising the value chain through digital Operate Market • Machine learning • Artificial intelligence • Process automation • Big data Deploy Sell Service
Slide 51: Digital marketing
Digital marketing Now…. Our transformation…. • High production cost – largely • Micro productions for various products and unidentified target audiences services – significant increase in available inventory • Traditional marketing, low returns likely • Data-enabled targeted messaging (lower • Large
Slide 52: Digital sales and omni-channel
Digital sales and omni-channel Now…. Our transformation…. • Customers moving to digital channels • Use of AI to predict what customers want • Online allows for direct interaction with • Develop online first experience customers • Direct recharge channels, cutting out the • I want to start one place
Slide 53: Digitally serviced
Digitally serviced Now…. Our transformation…. • Customers want to be empowered and • Intelligent chatbots to will solve simple queries informed – across multiple channels • Customers expect you to know what their pain • Use of AI to predict and pro-actively fix points are before they know • Big data
Slide 54: Smart deployment
Smart deployment Now…. Our transformation…. • Rule based and ad-hoc deployment • Use of AI, Big Data and machine learning • Fragmented data sources to optimise capex allocation • Augmented by human analysis • Expanding data sources from 18 to 43 • Sequential and time consuming • Overlay with social
Slide 55: Smart operations
Smart operations Now…. Our transformation…. • Manual processing • Robotic process automation • Mundane, repetitive tasks • Artificial intelligence and machine learning • Labour intensive process • Varied cognitive services • Legacy complexity • Natural language processing 450+ processes automated Ma
Slide 56: The digital opportunity
The digital opportunity South Africa leading Across the Group R21bn • Improved customer experience • Continued operational leverage Commissions • Distribution 38.4 38.6* c.30% is addressable 37.9 through digitisation • Digital marketing 36.0 Opex • Digital services • Smart operations EBITDA margin %
Slide 57: Key takeouts
Key takeouts • The digital life of the customer at centre of what we do • The preferred partner for Enterprise digitalisation • Transforming – traditional telco to digital technology company • Early adopter of transformative digital technologies • Constructively engaging with regulators to enable di
Slide 58: Forward-looking statements
Forward-looking statements This presentation for Vodacom Group Limited contains 'forward-looking statements‘, which have not been reviewed or reported on by the Group’s auditors, with respect to the Group’s financial condition, results of operations and businesses and certain of the Group’s plans an
Slide 59: Visit our website for more information
More information FY19 upcoming dates Interim results 12 November 2018 Visit our website Q3 results 24 January 2019 for more information Contact us [email protected] Follow us on social media @vodacom Facebook.com/vodacom http://www.vodacom.com