Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Presentation (February 2015)
39 slides from Vodafone Group Public's investor presentation, February 2015
Slide 1: Vodafone Group Plc Background Presentation
Vodafone Group Plc Background Presentation
Slide 2: Disclaimer
Disclaimer Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments. This presentation does not constitute an offe
Slide 3: A brief introduction to the Group
A brief introduction to the Group • Vodafone Group Plc is one of the world’s largest Financial highlights FY 13/14 telecommunications companies providing a wide range of Revenue £43.6bn services, including voice, messaging, data across mobile and fixed networks EBITDA £12.8bn • We have 438m mobile c
Slide 4: Revenue and profit mix of the Group
Revenue and profit mix of the Group Group service revenue Group service revenue FY 13/14 Mobile FY 13/14 Other Mobile incoming 7% • Mobile accounts for the majority (81%) out-of- Consumer bundle 8% Fixed Enterprise contract of our business 31% 15% 27% 37% 4% Other • Fixed (15%) is becoming an increa
Slide 5: Mobile customer mix of the Group
Mobile customer mix of the Group Customers by country (%) Other FY 13/14 17 • Over 60% of our customers are Spain India 3 38 from emerging markets UK 4 Italy 6 • The majority of our customers are 10 prepaid customers Egypt 7 15 Germany Vodacom • Consumer contract customers are 12% of the base and co
Slide 6: History of the Group
History of the Group Incorporated as Racal Acquisition of Sale of 45% Strategic Radio Limited Mannesmann AG, interest in acquiring further Verizon businesses in Europe Wireless Demerger from Racal and full listing Acquisition of Disposal of our interest Acquisition of on the LSE controlling stake in
Slide 7: Where we operate
Where we operate Subsidiaries (% ownership) Albania (100%) Portugal (100%) Czech Rep (100%) Qatar (22.95%) Egypt (54.9%) Romania (100%) Germany (100%) Spain (100%) Ghana (70%) Turkey (100%) Greece (99.9%) UK (100%) Hungary (100%) Vodacom Group (65%) India (100%) Consists of Ireland (100%) South Afri
Slide 8: Our people
Our people Gerard Kleisterlee (Chairman) Appointed July 2011 Vittorio Colao (CEO) Appointed July 2008 He retired as President/CEO and Chairman of Philips on 31 March CEO before joining the Board in 2002. He left Vodafone in 2004 for 2011 after spending three decades with the company. He is also a RC
Slide 9: The services we provide
The services we provide Split of Group service revenue Voice FY 13/14 Other Over 1.2 trillion minutes of calls were carried over our networks last year 4% Fixed That’s the equivalent of everyone around the world talking for two and a half hours 15% Messaging We sent over 337 billion text, picture, m
Slide 10: Our technology
Our technology Mobile Fixed We have over Europe 37% 275,000 India 46% 26m households passed with NGN base station AMAP 17% (excl. India) sites 48m households passed with NGN (incl. wholesale) 18 markets with 4G services 79% European sites with high capacity backhaul • Our fixed access comes from a r
Slide 11: Project Spring: investing £19 billion over two years
Project Spring: investing £19 billion over two years Project Spring is our investment programme that increases our capital expenditure over two years to £19 billion – to accelerate and extend our strategy and strengthen our differentiation • Extend network coverage and density with 36k new 4G sites
Slide 12: Our strategy
Our strategy Our strategy is focused on four key growth areas and targets: Unified Consumer Emerging Consumer Europe Enterprise Communications Markets Converged services in all key A stronger leader and first Major enterprise provider with A leading mobile data provider European markets choice for d
Slide 13: Our strategy: Consumer Europe
Our strategy: Consumer Europe Smartphone penetration 4G penetration growing rapidly Acceleration in average smartphone continues to increase 4G smartphone customers (m) usage growth European smartphone penetration (%) 4G smartphones (m) Europe (MB)1 16.2 48.0 +19% 41.0 13.6 627 11.0 +11% 33.0 9.7 +1
Slide 14: Our strategy: unified communications
Our strategy: unified communications We increasingly offer more than mobile Fixed as a % of European service revenue 11.2m broadband customers 9.6m TV customers 11% FY 14/15 FY 11/12 (Pro forma)1 25% Our recent acquisitions Acquired TelstraClear in Acquired Kabel Acquired Hellas Online New Zealand t
Slide 15: Our strategy: Emerging markets
Our strategy: Emerging markets Growth in customers, AMAP (m)1 Growth in data users (m) Growth in M-Pesa users (m) Sept 2013 312.5 Sept 2014 310.5 57.2 18.5 303.7 44.0 17.7 294.5 16.8 16.8 286.2 25.9 15.9 21.1 7.1 9.3 5.8 7.7 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 Q2 14/15 India Vodacom Turkey Egypt Q2
Slide 16: Group strategy: Enterprise
Group strategy: Enterprise Group service revenue Expanding in key growth areas Q2 14/15 growth Vodafone Global Enterprise serves around 1,700 +1.2% multinational companies in over 100 countries Enterprise is Global leader in M2M1, position strengthened with around a acquisition of Cobra Automotive +
Slide 17: Our financials
Our financials Key financials FY 13/14 FY 12/13 FY 11/12 FY 10/11 FY 09/10 Guidance Revenue (£bn) 43.6 44.4 46.4 45.9 44.5 For the year ended 31 March 2015 EBITDA (£bn) 12.8 13.6 14.5 14.7 14.7 Positive free cash flow after all Adjusted operating 7.9 12.0 11.5 11.8 11.5 EBITDA: £11.6bn - £11.9bn cap
Slide 18: Our shareholders and shareholder returns
Our shareholders and shareholder returns Our shareholders (%) Share price history Dividend policy Price rebased to Vodafone (pence) Intention to grow dividend per share annually North UK America 260 220 Dividend history 35 (pence per ordinary share) 43 180 Year ended 31 March Interim Final Total 140
Slide 19: Our markets: Europe
Our markets: Europe
Slide 20: Germany
Germany German market Market share (%) Vodafone in Germany mobile 16 31.7m customers 4G coverage 71% 82m €13 33 Vodafone T-Mobile (49% contract, 51% prepaid) 4G customers 2.3m Population Average ARPU 16 Mobile €31,100 138 E-Plus O2 5.3m fixed line customers GDP/capita Average MoU 35 Key financials R
Slide 21: UK
UK UK market Market share (%) Vodafone in the UK mobile 11 9 25 19.7m customers 4G coverage 48% 65m £17 Vodafone O2 EE (60% contract, 40% prepaid) 4G customers 1.4m Population Average ARPU Mobile 3 MVNOs Consumer fixed line services to launch 2015 £24,400 186 31 24 GDP/capita Average MoU Key financi
Slide 22: Italy
Italy Italian market Market share (%) Vodafone in Italy mobile 9 3 26.0m customers 4G coverage 64% 61m €12 21 33 Vodafone Telecom Italia (19% contract, 81% prepaid) 4G customers 1.0m Population Average ARPU Mobile €22,700 230 Wind 3 MVNOs 1.8m fixed line customers GDP/capita Average MoU 33 Key finan
Slide 23: Spain
Spain Spanish market Market share (%) Vodafone in Spain mobile 5 9 14.8m customers 4G coverage 64% 46m €16 30 Vodafone incl. Ono Telefonica (74% contract, 26% prepaid) 4G customers 1.6m Population Average ARPU 22 Mobile €22,100 174 Orange Yoigo MVNOs 2.7m fixed line customers GDP/capita Average MoU
Slide 24: Netherlands
Netherlands Dutch market Market share (%) Vodafone in the Netherlands mobile 7 5.2m customers 17m €24 23 31 Vodafone KPN 74% contract, 26% prepaid) Population Average ARPU Mobile T Mobile MVNOs Consumer fixed line services launched Sept 2014 €37,400 159 GDP/capita Average MoU 39 Key financials Reven
Slide 25: Portugal
Portugal Portuguese market Market share (%) Vodafone in Portugal mobile 21 1 5.4m customers 10m €10 38 Vodafone Portugal Telecom (26% contract, 74% prepaid) Population Average ARPU Mobile €14,800 148 Optimus MVNOs 0.3m fixed line customers GDP/capita Average MoU 40 Key financials Revenue £0.9bn 159%
Slide 26: Greece
Greece Greek market Market share (%) Vodafone in Greece mobile 18 5.0m customers 11m €11 31 Vodafone Cosmote (32% contract, 68% prepaid) Population Average ARPU Mobile €14,700 231 Wind 0.5m fixed line customers2 GDP/capita Average MoU 51 Key financials Revenue £0.6bn 133% €0.04 (FY 13/14) EBITDA £0.
Slide 27: Romania
Romania Romanian market1 Market share (%) Vodafone in Romania mobile 7.9m customers 20m 43 38 Vodafone Cosmote (42% contract, 58% prepaid) Population Mobile Orange $10,200 Key financials (FY 13/14) GDP/capita 19 Revenue £0.6bn 106% EBITDA £0.2bn Mobile EBITDA margin 33.2% penetration 11 3 Capex £0.1
Slide 28: Other Europe
Other Europe Mobile Mobile Fixed market Population GDP/capita penetration1 market share share Albania 99.9% ownership 2.0m mobile customers 2.9m $4,900 116% n/a n/a <1% of Group revenue (5% contract, 95% prepaid) <1% of Group EBITDA Czech Republic 100% ownership 3.2m mobile customers 11.0m $19,000 1
Slide 29: Our markets: AMAP
Our markets: AMAP
Slide 30: India
India Indian market Market share (%) Vodafone in India mobile 7 10 22 173.8m customers 3G coverage 90%1 1,243m INR185 6 Data users (7% contract, 93% prepaid) 57.1m Population Average ARPU Mobile 10 $1,500 379 29 Key financials (FY 13/14) GDP/capita Average MoU 16 Revenue £4.4bn 74% INR0.40 EBITDA £1
Slide 31: Vodacom Group: South Africa
Vodacom Group: South Africa South African market Mobile market share (%) Vodacom in South Africa mobile 15 2 39.9m customers 3G coverage 97% 53m ZAR93 (9% contract, 91% prepaid) Data users 16.7m Population Average ARPU Mobile 53 $6,400 108 31 Vodacom Group* - Key financials (FY 13/14) GDP/capita Ave
Slide 32: Vodacom Group: Internationals
Vodacom Group: Internationals Mobile Mobile market Vodacom % ownership2 Population GDP/capita penetration1 share Tanzania 50.8m $770 60% 46% 82% ownership 11.3m mobile customers Mozambique 26m $630 45% 44% 85% ownership 4.9m mobile customers DRC 69m $410 40% 36% 51% ownership 11.0m mobile customers
Slide 33: Turkey
Turkey Turkish market Mobile market share (%) Vodafone in Turkey mobile 20.6m customers 3G coverage 83% 77m TRL22 22 28 Vodafone Turkcell (39% contract, 61% prepaid) Data users 9.3m Population Average ARPU Mobile Avea $10,500 348 Key financials (FY 13/14) GDP/capita Average MoU 50 Revenue £2.0bn 92%
Slide 34: Egypt
Egypt Egyptian market Mobile market share (%) Vodafone in Egypt mobile 39.4m customers 3G coverage 92% 84m EGP26 28 39 (6% contract, 94% prepaid) Data users 7.7m Population Average ARPU Mobile $3,300 195 Key financials (FY 13/14) GDP/capita Average MoU 33 Revenue £1.2bn 120% EGP0.11 EBITDA £0.5bn Mo
Slide 35: Our markets: other AMAP
Our markets: other AMAP Mobile Mobile Fixed market Population GDP/capita penetration market share share Ghana 70% ownership 6.8m mobile customers 26m $1,400 108% 19%1 n/a <1% of Group revenue (1% contract, 99% prepaid) <1% of Group EBITDA New Zealand 100% ownership 2.3m mobile customers 0.4m fixed l
Slide 36: Our joint ventures and associates
Our joint ventures and associates Australia • Merged with Hutchison in 2009 to form joint venture Mobile market share (%) (joint venture) • Number three operator 18 Vodafone 29 4.9m mobile customers Telstra 50% ownership Optus 53 • Incorporated in November 2007 Indus Towers • Builds infrastructure f
Slide 37: Partner markets
Partner markets The Group has partnership agreements with local mobile operators in over 50 countries extending our reach beyond our equity investments by enabling a range of our products and services to be marketed in partnership territories These partnerships create additional revenue through fees
Slide 38: More information
More information References All data correct as of 30 September 2014 unless otherwise stated All market share figures are internal estimates as of 30 September 2014 General market data from Bank of America Merrill Lynch Global Wireless Matrix, 31 October 2014 unless otherwise stated GDP data from IM
Slide 39: Forward-looking statements
Forward-looking statements This presentation contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the Group’s financial condition, results of operations and businesses and certain of the Group’s plans and objectives. In p
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