Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Presentation (April 2011)
20 slides from Telefonica Sa's investor presentation, Apr 14, 2011
Slide 1: Continued outperformance, whilst seizing the digital opportunity
Continued outperformance, whilst seizing the digital opportunity Chairman and Chief Executive Officer, Telefónica Europe
Slide 2: Disclaimer
Disclaimer This presentation contains statements that constitute forward-looking statements about the Company, within the general meaning of the term and within the meaning of applicable securities laws, including financial projections and estimates and their underlying assumptions, statements regar
Slide 3: Outperformance will continue through focus on value and business model extension
outperformance will continue through focus on value and business model extension Market leadership in high value smartphone segment Led market away from unlimited data tariffs Under-indexed on low value dongle market in UK LTE spectrum in Germany — landscape set for 15 years Acquired HanseNet to del
Slide 4: Greater rationality and options for improving the environment
Greater rationality and options for improving the environment Regulation: · MTR certainty until at least 2013/2014 in UK & Germany · Data roaming price reductions to be offset by usage elasticity over time LTE: · Nationwide coverage opportunity in Germany via 800 MHz · Catalyst is data devices in Ge
Slide 5: Our strategy remains meeting evolving customer needs and delivering profit growth
Our strategy remains meeting evolving customer needs, driving market dynamics, delivering market leading profit growth T. Europe subscriber share1 22.3% Outperform the market in a fast changing environment 21.3% Leading smartphone adoption in Europe 20.4% Moving away from unlimited data in UK Breaki
Slide 6: In Germany we have built a platform for sustainable growth
In Germany we have built a platform for sustainable growth Market Position Current market momentum is with us T. Germany contract share of Net Additions1 Tariff innovations, ‘My Handy’ offer 67% Market Traction 61% CSI leader 24% Retail distribution network complete Distribution Over 2,000 business
Slide 7: Well positioned as an integrated player to enhance growth
We are well positioned as an integraged player to enhance our growth and capture more value from our customers HanseNet brought a step-change impact on our business... ...integrated offerings to capture more value from our customer base Mobile DSL turnaround Data Fixed 106k (Net adds H2 10) BB / TV
Slide 8: We will outperform in Europe's largest telco market
We will outperform in Europe’s largest telco market Increase share in no frills market T. Germany mobile revenue market share1 Market SME / SoHo upside 18% Share New MNP regulation from FY 2012 15% Selective MNC growth FY 2010 FY 2013E T. Germany MBB penetration2 Smartphones & tablets >45% Mobile Da
Slide 9: In Czech Republic we will continue to improve customer experience
In Czech Republic we will continue to improve customer experience to deliver best in class cash flow performance T. O2 CR revenue market share1 (Fixed & Mobile) Going forward... Sustaining 42.8% 42.3% 42.5% market position in competitive Support mobile data leadership by extending 3G coverage market
Slide 10: Elsewhere our portfolio of businesses continues to make an important contribution
Elsewhere our portfolio of businesses continues to make an important contribution... Ireland Maintain OpCF1 levels at ~ € 200 million Hit 1 million customers in H2 11 Slovakia2 Turn cash flow positive in H2 11 Positive OIBDA delivered in H2 10 Product innovation hub in Silicon Valley Jajah Engineeri
Slide 11: Telefónica developing a position as a leading player in services for MNCs
...whilst telefonica is developing a position as a leading player in services for MNCs Reinforced Global MNC Unit with >400 people; 37 countries focus with World class IP network reaching 139 countries global reach Strategic alliances to deliver global services Gartner’s Leaders Quadrant in European
Slide 12: The UK business continues to outperform through market leadership
The UK business continues to outperform through market leadership and superior execution Sustained momentum through market leadership T. O2 UK share of Market Service Revenues1 #1 for OIBDA 33% #1 for customer numbers #3 for OIBDA 29% O2 Wallet End of Unlimited O WiFi 22% 2 iPhone Exclusive O2 Media
Slide 13: We are uniquely positioned to outperform in the next growth cycle
We are uniquely positioned to outperform in the next growth cycle 2004 — 2007 2008 — 2009 2010 and beyond Data cards & Dongles Smartphone early adopters Smartphone mass market High data usage Medium data usage Penetration upside · Dongles usage 3x · Prepay currently 12%1 smartphones High O2 market s
Slide 14: We are focused on profitable mobile data growth
We are focused on profitable mobile data growth Distribution of iPhone + Android Usage We have improved the data experience for all Customers already pay for data usage Heavy-user1 management freed up 7% of bandwidth2 Almost 50% of smartphone users3 are on capped tariffs Data experience has improved
Slide 15: New tariffs position us to accelerate penetration and monetisation
New tariffs position us to accelerate penetration and monetisation Distribution of iPhone + Android Usage New tariffs offer “entry level” data to drive penetration, greater New tariffs flexibility, as well as packages for heavier users Lowest data allowance is now at 100MB
Slide 16: Still a large upside from per customer profitability and penetration
Still a large upside to come from per customer profitability and penetration Average mobile data usage New applications and move to online services will Usage on iPhone, indexed from Dec-08 Individual usage 242 will continue to continue to drive data usage 180 grow... Improving the data experience w
Slide 17: Beyond connectivity — in mobile advertising we are uniquely positioned
Beyond connectivity — in mobile advertising we are uniquely positioned Brands (incl. SMEs) 3 Reporting & Analytics Analytics re-enforce the value of mobile advertising 1 Mobile Advertising Platform Booking & Ad network Inventory Provides a single Targeting sales & Ad server & Services planning, targ
Slide 18: O2 More shows the effectiveness of mobile as an advertising medium
O2 More already shows the effectiveness of mobile as an advertising medium Customers within 1 / 2 mile of shop Ability to target, based on customer data · Location, social (calling circle) and transactional data · Proactive input of preferences: customers opt-in · Offers always localised e.g. Starbu
Slide 19: Summary
Summary We have outperformed by driving value Cash flow growth will be driven by: Market share growth Data penetration Return per customer In Germany we now have the capabilities to accelerate into the ‘Premier League’ with mobile data the catalyst Total aggregated cash flow to increase from Czech,
Slide 20: Telefonica
Telefonica SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Telefónica, S.A. Date: April 14th, 2011 By: /s/ Ramiro Sánchez de Lerín García-Ovies Name: R