Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Q3 17/18 Earnings Presentation
23 slides from Vodafone Group Public's earnings presentation, Feb 1, 2018
Slide 1: Vodafone Group Plc Results
Vodafone Group Plc Result Results For the quarter ended 31 December 2017 1 February 2018
Slide 2: Disclaimer
Disclaimer By reading these slides you agree to be bound by the following conditions. disclosed by other companies, including those in the Vodafone Group’s industry. Although these measures are important in the assessment and Information in the following presentation relating to the price at which m
Slide 3: Overview and Strategic progress
Overview and Strategic progress Vittorio Colao Group Chief Executive 3
Slide 4: Q3 17/18 highlights
Q3 17/18 highlights Maintaining Leading Strong data Fastest growing Leveraging scale Clear NPS growth network growth fixed broadband and reach in leadership momentum provider Enterprise 1.1% 93% 61% 379k 1.6% 18/21 (+2.3% underlying)1 4G coverage2 growth in mobile fixed broadband Enterprise service
Slide 5: Strong commercial momentum
Strong commercial momentum Europe: Customer net adds (000s) AMAP: Customer net adds (m) Mobile contract1 Mobile contract Fixed broadband Mobile prepaid3 278 275 342 3.5 3.5 3.1 3.2 234 173 339 340 316 262 237 0.9 0.5 0.6 0.5 0.3 0.4 Q3 16/17 Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q3 16/17 Q4 16/17 Q1 1
Slide 6: All three growth engines contributing
All three growth engines contributing Q3 17 /18 organic service revenue growth contribution YoY (pp) Change in growth contribution Mobile Data Fixed/ Enterprise xx compared to Q3 16/17 convergence -0.4pp -0.7pp +0.1pp Regulation 0.5 (0.7) Handset Financing +0.4pp -0.5pp 0.9 (0.5) (0.7) +0.1pp 1.0 1.
Slide 7: Mobile Data monetisation: commercial initiatives
Mobile Data monetisation: commercial initiatives Sustained data growth1… … supported by our ‘more-for-more’ propositions YoY growth (%) YoY growth (PB) Monthly usage (GB)2 M4M Pass 63 62 63 67 61 2.0 2.2 Spain Egypt 1.7 Converged +€4-5/mth for 870k hourly passes @ 2EGP 1.6 Social Pass & extra mobile
Slide 8: Mobile Data monetisation: more-for-more supporting ARPU
Mobile Data monetisation: more-for-more supporting ARPU Consumer contract ARPU (% change Q3 17/18, local currency) Underlying drivers Germany Italy1 UK Spain M4M actions, focus on direct channels 4.6 2.8 New ATL / personalised offers via data analytics3 2.4 1.8 (1.5) (0.9) (0.9) M4M initiatives, RPI
Slide 9: Fixed & Convergence: leading scale and growth momentum
Fixed & Convergence: leading scale and growth momentum Europe NGN footprint expansion in Q3 17/18 (m) Owned/strategic Wholesale Leading EU footprint: partnerships 104m homes passed, 63% coverage1 CityFibre: 61.6 build starts in Milton Keynes in March 41.9 Gigabit plan: 27.9 initiatives underway 12.7
Slide 10: Enterprise: ongoing momentum
Enterprise: ongoing momentum Service revenue growth Q3 17/18 (%) Performance in major markets Reported Ex. regulation1 Ex. UK & EU regulation Return to growth; IoT, fixed and Cloud & Hosting 4.1 Customer growth and Cloud & Hosting 3.7 3.1 IoT +18.8% Prior year customer losses / project phasing 1.7 0
Slide 11: Trading update
Trading update Nick Read Group Chief Financial Officer 11
Slide 12: Sustained service revenue growth
Sustained service revenue growth Group organic service revenue growth (%) Growth by region (%) Reported Ex. EU regulation & UK handset financing Europe Europe ex. EU regulation & UK handset financing AMAP 2.9 2.6 2.4 2.5 7.4 7.9 2.3 6.8 6.8 6.2 2.1 2.2 1.5 2.4 1.9 1.3 1.3 1.4 1.8 1.1 0.8 0.8 0.7 0.3
Slide 13: Key markets: Europe
Key markets: Europe Germany UK Italy Spain Competitive Stable Stable Intense Promotional environment Mobile Mobile Mobile Mobile Broadband Broadband Broadband Broadband contract contract Prepaid contract Customer 991 net additions 144 110 38 (33) 95 97 93 (000s) 89 41 2 70 68 61 16 (346) 30 Q3 16/17
Slide 14: Key markets: AMAP
Key markets: AMAP Vodacom South Africa International Turkey Egypt Environment Stable Improving Stable Stable Mobile Mobile Mobile Mobile Mobile Mobile Mobile Broadband contract prepaid contract prepaid contract contract prepaid Customer net additions 143 1,1091 914 129 1,4951 59 (000s) 857 330 80 20
Slide 15: India: intense competition & regulation, capital raise announced
India: intense competition & regulation, capital raise announced Service revenue (INR bn) Performance Service • Pricing pressure led by market leader, new entrant reacting (14.2) revenue (1.9) (11.5) (13.9) (17.8) (23.1) ex. MTRs • Winning market share as smaller players exit (+5m net adds) growth (
Slide 16: Summary
Summary • Good commercial performance maintained • Improvement at Vodacom offset a more promotional quarter in Europe • Continued progress on strategic growth engines: – more-for-more actions, supporting underlying ARPUs – fixed momentum: record NGN net adds – robust enterprise performance, led by I
Slide 17: Q&A
Q&A 17
Slide 18: Slide 18
Slide 19: Appendix
Appendix 19
Slide 20: Customer experience and commercial KPIs
Customer experience and commercial KPIs Europe AMAP Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 16/17 16/17 17/18 17/18 17/18 16/17 16/17 17/18 17/18 17/18 4G customers (m) 1 43.3 47.0 50.6 53.3 55.5 4G customers (m) 2 23.3 27.8 33.4 40.1 49.5 Broadband customers (m) 1 16.2 16.6 16.8 17.1 17.4 Broadband customers
Slide 21: European homes reached with NGN
European homes reached with NGN1 Household coverage (m) Wholesale Open Fiber2 Owned 68% 52% 70% 96% 54% 93% 14.3 9.9 27.9 9.7 12.7 10.3 0.2 1.9 7.1 3.3 2.5 Germany Italy Spain UK Portugal VodafoneZiggo NL JV 104m households passed with NGN (incl. wholesale) 36m households passed with own NGN 63% cov
Slide 22: Forward-looking statements
Forward-looking statements This presentation, along with any oral statements made in connection therewith, contains “forward- and grow revenue; a lower than expected impact of new or existing products, services or technologies looking statements” within the meaning of the US Private Securities Litig
Slide 23: More information
More information Visit our website for more information Upcoming 2018 dates Prelim 17/18 Q1 18/19 AGM results results 15 May 20 July 27 July www.vodafone.com/investor Contact us [email protected] +44 (0) 7919 990 230 For definitions of terms please see www.vodafone.com/content/index/investors/glossa