Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Corporate Update (September 2013)
21 slides from Vodafone Group Public's corporate update, Sep 12, 2013
Slide 1: Vodafone Turkey Webinar
Vodafone Turkey Webinar 12 September 2013
Slide 2: Disclaimer
Disclaimer You are invited to join this conference on the basis that you are an investment professional for the purposes of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. No other person should act or rely on the information presented. This presentation d
Slide 3: Turkey at a glance
Turkey at a glance • 76m people with a technology savvy young population, 42% of people under 25 • Strong growing economy, aiming to be in top10 economies with ICT market at 8% of GDP by 2023 • 24th largest FDI recipient country, expected to rank 19th in 3 years • Investment-grade credit rating both
Slide 4: Strong market growth and good future prospects
Strong market growth and good future prospects Mobile market growth (%) Mobile customers (m) Mobile customer penetration (%) (excl. MTR cut) 13.0 Prepaid Postpaid 12.3 11.8 163 11.0 152 140 139 10.0 122 117 110 41.8 41.4 41.5 90 50.3 45.5 20.2 23.9 26.6 14.1 16.1 08/09 09/10 10/11 11/12 12/13 Mar 09
Slide 5: Vodafone Turkey: A success story
Vodafone Turkey: A success story Total revenue growth1(YoY) (%) Total mobile revenue market share (%) 34 32 26 24 23 19 19 19 28.9 30.0 28.3 28.5 27.1 25.1 6 23.9 22.5 21.4 21.2 19.5 18.6 20.1 (1) (9) (9) (18) Q4 Q1 Q2 Q3 Q4 H1 H2 H1 H2 H1 H2 H1 H2 Q4 Q1 Q2 Q3 Q4 H1 H2 H1 H2 H1 H2 H1 H2 07/08 08/09
Slide 6: Turnaround strategy: focus on end-to-end segmented customer experience to drive growth
Turnaround strategy: focus on end-to-end segmented customer experience to drive growth Objective: Become the strong challenger brand in Turkey Build a customer centric brand that wins the hearts and minds of the 1 Turkish community 2 Divide and conquer by targeted segmentation 3 Step change in quali
Slide 7: Build a customer-centric brand
1 Build a customer-centric brand • Repositioning of brand as a strong challenger: − Customer Hero − Simple, Honest Money Back Reimbursement − Reliable, Confident Guarantee Guarantee • Local affinity via Corporate Social Responsibility & building Social Business Models Disabled Farmers Women • Sustai
Slide 8: Divide and conquer by targeted segmentation
2 Divide and conquer by targeted segmentation Postpaid High Value Customer Youth Enterprise "Simplicity" "Worry Free" "Freedom" "Trusted Business Partner" All-net Tariffs Vodafone Red Vodafone Freezone Innovative customized services • Simple choices • M2M: tailored innovation for efficiency • Unlimi
Slide 9: Step change in quality of service through investing in customer touch points
3 Step change in quality of service through investing in customer touch points Capital expenditures Network sites Number of shops (k) Total capex (£m) 3G Non-exclusive shops Total capex intensity (%) 2G Exclusive shops 33 28 21 x3 1.2 16 13 435 0.8 385 236 266 247 14.7 12.2 FY 08/09 FY 09/10 FY 10/1
Slide 10: Operate as a mobile-centric total communications provider
4 Operate as a mobile-centric total communications provider Data revenue • Rapid growth in data driven by increasing smartphone Data revenue (£m) Smartphone penetration (%) penetration at 25% with +8ppt YoY (as of Q1 13/14) 22.2 17.3 +51% • Launched Turkey’s first operator branded tablets 8.4 182 Yo
Slide 11: Leader in Net Promoter Score for 9 consecutive quarters
Leader in Net Promoter Score for 9 consecutive quarters Net Promoter Score1 29 24 4 Vodafone Turkey Operator 1 Operator 2 1. Taken from the Net Promoter Score Tracking survey carried out by GFK Turkey Market Survey Company and displays the net promoter score -the ratio of promoters to detractors- ca
Slide 12: Improved customer mix driving increased ARPU
Improved customer mix driving increased ARPU Total customers (m) Total and postpaid ARPU (TL) c.+1m net adds in +2.8% +9.4% FY12/13 YoY YoY Prepaid Postpaid ARPU Postpaid Total ARPU 35.5 35.6 36.6 18.2 19.2 32.8 16.8 15.5 15.8 24.8 12.4 19.0 20.8 12.2 17.5 12.1 14.3 13.5 13.3 10.6 4.7 6.0 6.8 2.0 2.
Slide 13: Doubled total revenue with 11 ppt market share gain
Doubled total revenue with 11 ppt market share gain1 Total revenue (£m) Total mobile revenue market share3 (%) Growth2 Vodafone Operator 2 Operator 1 (5.5) 3.7 30.2 28.1 19.2 (%) 63.3 59.6 x2 1,948 52.7 1,704 51.2 49.4 Since Mar 09 1,566 -13.9ppt 1,124 1,148 30.0 27.1 28.5 +11.3ppt 21.2 18.6 +2.6ppt
Slide 14: Built profitability through scale growth and cost efficiency
Built profitability through scale growth and cost efficiency EBITDA and EBITDA margin EBITDA margin in FY12/13 (%) +35% YoY1 EBITDA (£m) 33.3 EBITDA margin (%) 16.5 15.6 13.5 322 12.1 265 189 16.5 151 (8) (0.7) FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 Vodafone Turkey EBITDA margin Vodafone Turke
Slide 15: Future prospects: Sustainable growth by focusing on untapped opportunities
Future prospects: Sustainable growth by focusing on untapped opportunities 1 Significant opportunities in Data Data as a % of service revenue Smartphone penetration (%) • Digitalise consumers with simple & accessible Turkey Turkey VF Group Northern & Centra l Europe mobile life Southern Europe 16% 3
Slide 16: Q&A
Q&A
Slide 17: 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
Slide 18: Thank you
Thank you 18
Slide 19: Supplementary Information
Supplementary Information 19
Slide 20: Vodafone Turkey at a glance
Vodafone Turkey at a glance Istanbul Samsun • Operating under Vodafone Group since 2006 Ankara • No.2 mobile market player with 30% total mobile revenue market share and 19.3m customers Elazig Afyon Izmir • 2G licence since 1998 and 3G licence since 2009 • Providing fixed line services through acqui
Slide 21: Glossary
Glossary • FDI – Foreign Direct Investment • GSM – Global System for Mobile Communications • ICT – Information and Communications Technology • ICTA – Information and Communications Technologies Authority • PSTN – Public Switched Telephone Network • UNCTAD – United Nations Conference on Trade and Dev