Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Merger or Acquisition (March 2014)
14 slides from Vodafone Group Public's merger presentation, Mar 17, 2014
Slide 1: Acquisition of Ono
Acquisition of Ono Investor presentation 17 March 2014
Slide 2: Disclaimer
Disclaimer This document does not constitute, or form part, of any offer or invitation to sell, allot or issue or any solicitation of any offer to purchase or subscribe for any securities, nor shall it (or any part of it) form the basis of, or be relied on in connection with, or act as any inducemen
Slide 3: Transforms Vodafone Spain into a leading unified communications operator
Transforms Vodafone Spain into a leading unified communications operator • Largest NGN network in Spain with 7.2m HRTM1 Highly attractive standalone • Modern cable network with future-proof fibre architecture business • Market leader in high speed broadband, differentiated pay-TV offering • High qua
Slide 4: Making good progress on unified communications strategy
Making good progress on unified communications strategy Approach Improving fixed line net adds Vodafone fixed line net adds (‘000) • Italy: 37 cities (FTTH Milan + VDSL other cities) NGN1 • Germany: VDSL, 27% coverage 100 wholesale • Netherlands: Reggefiber; 21% coverage 50 • Italy: Self-build FTTC
Slide 5: Highly attractive standalone business
Highly attractive standalone business Coverage across Key financials Year ended December 2013 (€m) 13 of Spain’s 17 Revenue 1,598 regions EBITDA2 680 EBITDA margin 42.6% OpFCF2 416 Substantial upside to penetration Largest NGN network1 (Homes passed) Total homes in Spain 17.4 HRTM 41% 7.2 Customers
Slide 6: One of the most modern cable networks in Europe
One of the most modern cable networks in Europe Unrivalled NGN coverage Ample spare capacity with future-proof fibre architecture – 7.2m homes released to marketing – All 862 MHz with abundant spectrum capacity – 41% of Spanish homes – Fully DOCSIS 3.0 enabled – 500 homes per fibre node Build commen
Slide 7: Leading products and services support resilient ARPU
Leading products and services support resilient ARPU Superior download speeds Innovative pay-TV proposition Median download throughput (Mbps)1 Exclusive TiVo TV online & 12.0 multi-screen 9.5 >2x HD leadership - 37 HD channels 7.0 4.5 2.0 Jan-12 Jul-12 Jan-13 Jul-13 Dec-13 Leading quality service pr
Slide 8: Creating a leading integrated operator
Creating a leading integrated operator Significant upside opportunity from cross-selling and up-selling Clear #2 operator by revenues Significant cross-selling opportunity 2013 (€bn) % of convergent customers, Dec 2013 13.0 32% 17% 5.9 1.6 4.1 4.3 1.1 1.0 Fixed base Mobile base 8
Slide 9: Vodafone can realise Ono's full potential
Vodafone can realise Ono’s full potential Significant penetration upside Vodafone will add significant scale Unique customers penetration as % of homes passed, Q4 2013 72% 66% 55% Shops 140 1,200 ~8x larger 37% 39% 34% 26% Enterprise 350 2,500 ~7x larger sales force Jan-00 Jan-00 Jan-00 Jan-00 Jan-0
Slide 10: The transaction is complementary to Vodafone's FTTH rollout
The transaction is complementary to Vodafone’s FTTH rollout Leading network today and in the future NGN homes passed (m)1 Vodafone remains committed to the joint 3 ~10 3 million homes fibre roll-out target by 2 Target (all by Today September 2015 3.0 end of 2015) 8.0 Joint investment by 2015 FTTH ro
Slide 11: Substantial in-market cost and capex synergies
Substantial in-market cost and capex synergies Run-rate in Key categories Description year 4 (€m)1 NPV (€bn)2 • FTTH capex avoidance of €250m from a reduction of Vodafone’s 3.0 million homes ambition to 1.5 million homes 3 • Merge national and regional backbones Network / IT • Consolidation of IT st
Slide 12: Significantly value accretive transaction
Significantly value accretive transaction • €7.2 bn (£6.0 bn) on a debt and cash free basis Value − 7.5x EV/2013 EBITDA adjusted for run-rate synergies1 − 10.4x EV/2013 OpFCF adjusted for run-rate synergies1 Financial effects • Accretive to adjusted EPS2 and FCF per share in the first full year post
Slide 13: Q&A
Q&A 13
Slide 14: Slide 14