Slide 1: Vodafone
Slide 2: Arun Sarin, Chief Executive
Arun Sarin Chief Executive Vodafone Group Plc © Vodafone Group 2004
Slide 3: Forward-looking statements
This presentation contains forward-looking statements which are subject to risks and uncertainties because they relate to future events. Some of the facts which may cause actual results to differ from these forward looking statements are discussed in the penultimate slide to this presentation and ot
Slide 4: Six Strategic Goals
Six Strategic Goals Provide superior shareholder returns Delight our customers Leverage scale and scope Expand market boundaries Build the best team Be a responsible business
Slide 5: Agenda
Agenda • Performance and Group Strategy Arun Sarin Chief Executive • Results and Financial Position Ken Hydon Group Financial Director • Operational Performance Julian Horn-Smith Chief Operating Officer • Delight our Customers Peter Bamford Chief Marketing Officer • Leverage Scale and Scope Thomas G
Slide 6: Six Strategic Goals
Six Strategic Goals Provide superior shareholder returns Delight our customers Leverage scale and scope Expand market boundaries Build the best team Be a responsible business
Slide 7: Statutory Results
Provide superior shareholder returns Statutory Results Turnover Operating profit* 10% £33.6bn 17% £10.7bn £30.4bn £9.2bn March '03 March '04 March '03 March '04 Adjusted earnings per share* 9.10p 34% 6.81p March '03 March '04 * Before goodwill, amortisation and exceptional items
Slide 8: Strong Free Cash Flow
Provide superior shareholder returns Strong Free Cash Flow £8.5bn • Capital expenditure of £4.3bn 65% • Reduction in net debt to £5.2bn £8.5bn March '03 March '04
Slide 9: Better Than Expected Customer Growth
Provide superior shareholder returns Better Than Expected Customer Growth 13.7m new customers* 120 133.4m 11% 119.7m Mobile Customers (Millions) 100 80 60 40 20 0 Mar-03 Mar-04 Asia Pacific Southern Europe & MEA Northern Europe UK & Ireland * Proportionate
Slide 10: ARPU Trends
Provide superior shareholder returns ARPU Trends Italy 4% €361 UK* 6% £309 €347 £292 March '03 March '04 March '03 March '04 Germany Japan €313 -1% €310 Y87,159 -7% Y80,695 March '03 March '04 March '03 March '04 *Organic UK ARPU growth (excl. Singlepoint acquisition) was 1%
Slide 11: Strong Voice and Data Growth
Provide superior shareholder returns Strong Voice and Data Growth Group minutes of use* 12 month rolling data % of service revenue* 16.1% 15.5% Up 11% yoy to 14.6% 154.8bn mins 78.4bn 76.4bn 70.4bn 68.5bn H1 03 H2 03 H1 04 H2 04 Mar-03 Sep-03 Mar-04 * All subsidiaries
Slide 12: Increasing EBITDA and Margin
Provide superior shareholder returns Increasing EBITDA and Margin* 38.3% 37.4% £14.8bn £12.2bn March 03 March 04 UK Germany Italy Japan Other • Efficient running of the business offset additional investment in our customers * proportionate
Slide 13: Operating Environment
Provide superior shareholder returns Operating Environment • Harsher regulatory environment - over £300m of termination cuts • Difficult global economy • Increasing competitive environment
Slide 14: Japan
Provide superior shareholder returns Japan Up to now: • Increased competitive activity in marketplace • Currently limited ability to compete in 3G • Investing in retention and attractive tariff plans Looking forward: • Wider range of 3G converged terminals in Christmas quarter • Plan in place to tra
Slide 15: Uses of Cash
Provide superior shareholder returns Uses of Cash • Increase returns to shareholders • Invest in the business and future growth • Improve competitive position and customer franchise
Slide 16: Continued Dividend Growth
Provide superior shareholder returns Continued Dividend Growth Dividend growth rate Dividend growth (2000-4) 2.0315p 20% 20% 1.6929p 15% 5% 5% 5% March '03 March '04 2000 2001 2002 2003 2004
Slide 17: Increased Buyback Programme
Provide superior shareholder returns Increased Buyback Programme £3bn £2.5bn • £3bn supercedes £2.5bn programme • £3bn on top of £1.1bn already purchased Bought Back £1.1bn Nov '03 May '04
Slide 18: Six Strategic Goals
Six Strategic Goals Provide superior shareholder returns Delight our customers Leverage scale and scope Expand market boundaries Build the best team Be a responsible business
Slide 19: Vodafone live!
Delight our customers Vodafone live! TM • Vodafone live!TM with 3G – Germany, Portugal, Italy and Spain in Europe – Several countries to follow • Over 6.8m controlled customers
Slide 20: Vodafone Mobile Connect 3G Datacard
Delight our customers Vodafone Mobile Connect 3G Datacard • Launched in February in 7 markets • Over 50% of datacard sales - 3G
Slide 21: Six Strategic Goals
Six Strategic Goals Provide superior shareholder returns Delight our customers Leverage scale and scope Expand market boundaries Build the best team Be a responsible business
Slide 22: Global Benefits
Leverage scale and scope Global Benefits Speed to Customer Strategic Cost Growth for Market Experience Position People • Develop, implement and commercialise superior 3G based services
Slide 23: Six Strategic Goals
Six Strategic Goals Provide superior shareholder returns Delight our customers Leverage scale and scope Expand market boundaries Build the best team Be a responsible business
Slide 24: Strategic Relationships in Mobile Ecosystem
Expand market boundaries Strategic Relationships in Mobile Ecosystem
Slide 25: Strong Equity Footprint Enhanced by Partner Networks
Expand market boundaries Strong Equity Footprint Enhanced by Partner Networks
Slide 26: Equity Footprint Investments
Expand market boundaries Equity Footprint Investments • Commitment to solid credit profile Criteria for Future • Maintain strict financial discipline Opportunities • Exceed appropriate cost of capital • AT&T Wireless and Verizon deals in line with this approach US • Committed to the US through Veriz
Slide 27: Creating Value for Vodafone Shareholders
Expand market boundaries Creating Value for Vodafone Shareholders • Investments of up to c.£2.6 billion in Japan • Consistent with Vodafone’s overall strategy • Simplifies corporate structure, improves efficiency and increases management focus • Long–term commitment to Japan • EPSA accretive from fi
Slide 28: Equity Footprint Investments
Expand market boundaries Equity Footprint Investments • Commitment to solid credit profile Criteria for Future • Maintain strict financial discipline Opportunities • Exceed appropriate cost of capital • AT&T Wireless consistent with investment approach US • Committed to the US through Verizon Wirele
Slide 29: Six Strategic Goals
Six Strategic Goals Provide superior shareholder returns Delight our customers Leverage scale and scope Expand market boundaries Build the best team Be a responsible business
Slide 30: Build the Best Team
Build the best global team Build the Best Team • Continue to develop and recruit people • Motivated employees with strong Vodafone culture
Slide 31: Six Strategic Goals
Six Strategic Goals Provide superior shareholder returns Delight our customers Leverage scale and scope Expand market boundaries Build the best team Be a responsible business
Slide 32: Be a Responsible Business
Be a responsible business Be a Responsible Business • Committed to high standards of business integrity & professionalism • Striving to earn trust and confidence of all our stakeholders
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Slide 34: Ken Hydon, Group Financial Director
Ken Hydon Group Financial Director Vodafone Group Plc © Vodafone Group 2004
Slide 35: Statutory Results: Turnover
Statutory Results Turnover Analysis of Turnover Growth 4.5 • £33.6 bn 1.3 4.0 • Up 10% (£3.2 bn) 3.5 3.0 (0.9) Change (£ billions) 0.5 • Mobile organic growth: 2.5 0.7 – Total: +10% 2.0 1.6 1.5 – Data: +20% 1.0 – Voice: +8% 0.5 - Mobile voice Mobile data Other grow th Foreign Acquisitions grow th gr
Slide 36: Statutory Results: Group Operating Profit
Statutory Results Group Operating Profit* Analysis of Group Operating Profit* Growth 2.0 • £10.7 bn 0.1 0.3 1.5 (0.1) • Up 17% (£1.6 bn) Change (£ billions) 0.1 1.2 1.0 • 13% mobile organic growth 0.5 • £4.5 bn depreciation** - Mobile Other Foreign Acquisitions Disposals grow th grow th currency (or
Slide 37: Statutory Results
Statutory Results Year ended 31 March Adjusted EPS* (pence) 2004 2003 Increase £m £m % 9.10 Turnover 33,559 30,375 10 Group operating profit* 10,749 9,181 17 Net interest payable (714) (752) (5) 6.81 Profit before tax* 10,035 8,429 19 5.15 Tax (3,154) (2,956) Goodwill amortisation (15,207) (14,056)
Slide 38: Shareholder Returns
Shareholder Returns • Dividends 2003/4: Dividend Growth and Yield (2000-4) Pence 1.6% Dividend Yield (Based on 31/3/04 closing share price of £1.2875) per share 1.4% Interim paid 0.9535 20% 1.2% Proposed final 1.0780 1.0% 15% 2.0315 0.8% • Share purchases: 0.6% 0.4% – 2003/4: £1.1 bn 5% 5% 5% 0.2% –
Slide 39: Cash Flow
Cash Flow Year ended 31 March 2004 2003 Increase £m £m % Analysis of Operating Cash Flow EBITDA* 12,640 11,217 13 Working capital & exceptionals (323) (75) 331 Operating cash flow 12,317 11,142 11 Other Other Capital expenditure (4,350) (5,180) (16) Mobile 3% Germany Licences (21) (99) (79) 4% 19% O
Slide 40: Tangible Fixed Assets
Tangible Fixed Assets March 2004 March 2005 • £4.8 bn additions • Around £5 bn additions Geographic Analysis Category Analysis Other Fixed line Operations Other Mobile 4% 2G Network 3% Germany 7% 16% 18% Other Mobile 27% Non-Network IT (Billing Systems, CRM, ERP…) Italy 22% 15% Transmission United 3
Slide 41: Net Debt
Net Debt • March 2004: £bn Debt Maturity by Calendar Year At 31 March 2004 (£ Billions) Gross debt (14.3) Total = £14.3 billion 2.5 Cash & investments 5.8 2.0 Net debt (8.5) 1.5 • Maintain solid credit profile 1.0 • Funds used for: 0.5 • Operations, incl. Tax 0.0 2004 2005 2006 2007 2008 2009 2010 2
Slide 42: Summary
Summary • Growth: – Turnover – EBITDA* – Operating profit** – Adjusted earnings per share** – Free cash flow * • Healthy financial position • Increasing returns to shareholders * EBITDA and free cash flow are not performance measures recognised under UK GAAP but are presented in order to highlight o
Slide 43: Julian Horn-Smith, Group Chief Operating Officer
Julian Horn-Smith Group Chief Operating Officer Vodafone Group Plc © Vodafone Group 2004
Slide 44: Vodafone Germany
Vodafone Germany 2004 2003 Increase • Solid performance £m £m Turnover 5,404 4,646 16% • Strong customer and Operating 1,741 1,435 21% revenue growth profit(1) EBITDA 46.1% 43.4% 2.7pp • Improved profitability margin(2) (1) Before goodwill amortisation and exceptional items (2) Proportionate EBITDA
Slide 45: Vodafone Germany: Customers and Net Additions
Vodafone Germany Customers Net additions 1,400 48.5% 47.6% 46.6% 1,200 25,012 45.3% 1,000 23,780 800 22,940 600 ('000s) 21,810 400 200 0 (200) (400) H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H1 02/03 H1 03/04 H2 03/04 Contract Net Additions Prepaid Net Additions Contract % of Total base
Slide 46: Vodafone Germany: Churn and Upgrade
Vodafone Germany Churn & upgrade % 25% 13% 11% 11% 20% Annualised half year churn % 8% 15% 10% 5% 0% H1 02/03 H2 02/03 H1 03/04 H2 03/04 Churn % Upgrade %
Slide 47: Vodafone Germany: ARPU and Data
Vodafone Germany ARPU & data Year on year growth 330 10% 17.4% 9% 9% 17.0% 320 16.4% 8% 15.4% 8% 7% 8% 7% 310 12 month rolling ARPU (€) 6% 6% 5% Year on year growth 300 4% 290 4% 4% 3% 280 2% 270 (1%) 260 0% H1 02/03 H2 02/03 H1 03/04 H2 03/04 250 Sep 02 Mar 03 Sep 03 Mar 04 (2%) ARPU Data % of serv
Slide 48: Vodafone Germany: Customer Base Costs and EBITDA
Vodafone Germany Customer base costs Proportionate EBITDA(1) 600 14.8% 14.2% 1,400 46.2% 46.7% 45.5% 500 12.4% 1,200 40.8% Customer base costs (€ millions) 10.3% 1,000 400 EBITDA (£ millions) 800 300 600 200 400 100 200 0 0 H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 SRC
Slide 49: Vodafone Italy
Vodafone Italy 2004 2003 Increase £m £m • Good customer growth Turnover 5,276 4,371 21% • Higher ARPU Operating 2,143 1,588 35% profit(1) • Improved profitability EBITDA 53.0% 49.3% 3.7pp margin(2) (1) Before goodwill amortisation and exceptional items (2) Proportionate EBITDA before exceptional ite
Slide 50: Vodafone Italy: Customers and Churn
Vodafone Italy Customers and churn 17.2% 17.5% 16.9% 16.6% 21,137 19,982 19,412 18,316 H1 02/03 H2 02/03 H1 03/04 H2 03/04 Total closing customers Annualised churn
Slide 51: Vodafone Italy: ARPU and Data
Vodafone Italy ARPU & data Year on year growth 370 13.3% 12.2% 16% 360 11.3% 14% 14% 10.1% 13% 12% 12 month rolling ARPU (€) 350 12% 11% 11% 11% 11% Year on year growth 10% 340 10% 9% 9% 8% 8% 7% 330 6% 320 4% 310 2% 300 0% Sep 02 Mar 03 Sep 03 Mar 04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 ARPU Data %
Slide 52: Vodafone Italy: Customer Base Costs and EBITDA
Vodafone Italy Customer base costs Proportionate EBITDA(1) 1,200 160 54.8% 3.5% 51.2% 49.4% 49.3% 140 3.3% 1,000 3.0% 120 Customer base costs (€ millions) 2.6% 800 EBITDA (£ millions) 100 80 600 60 400 40 200 20 0 0 H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 SRC SAC % Se
Slide 53: Vodafone UK
Vodafone UK 2004 2003 Increase £m £m • Intensified competition Turnover 4,744 4,026 18% • Investment in customers Operating 1,098 1,120 (2%) profit(1) • Continued customer EBITDA 33.9% 38.3% (4.4pp) growth margin(2) (1) Before goodwill amortisation and exceptional items (2) Proportionate EBITDA befo
Slide 54: Vodafone UK: Net Additions and Customers
Vodafone UK Net additions Customers 800 41.3% 41.3% 40.6% 14,095 40.1% 600 13,483 400 13,300 12,957 200 ('000s) 0 (200) (400) (600) H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 Contract net additions Prepaid net additions Contract % of total base
Slide 55: Vodafone UK – Market leader
Vodafone UK – Market leader Total revenue share (Mar 04) 1 T-Mobile 19.9% Vodafone 31.0% Orange 26.6% O2 22.5% 1 Company published results (excluding 3 UK)
Slide 56: Vodafone UK: ARPU and Data
Vodafone UK ARPU & data Year on year growth 320 14% 13% 13% 16.1% 15.0% 14.4% 12% 300 13.2% 12 month rolling ARPU (£) 10% Year on year growth 280 9% 8% 8% 8% 260 6% 6% 6% 5% 240 4% 4% 4% 2% 220 2% 1% 200 0% H1 02/03 H2 02/03 H1 03/04 H2 03/04 Sep 02 Mar 03 Sep 03 Mar 04 ARPU Singlepoint effect Data
Slide 57: Vodafone UK: Customer Base Costs and EBITDA
Vodafone UK Customer base costs EBITDA(1) 450 17.9% 400 Customer base costs (£ millions) 350 13.1% 300 11.8% 12.0% 250 200 150 100 50 0 H1 02/03 H2 02/03 H1 03/04 H2 03/04 SRC SAC % Service revenue (1) Before exceptional items
Slide 58: Verizon Wireless
Verizon Wireless 2004 2003 Increase £m £m • Strong momentum Proportionate 6,111 5,686 7% turnover • Market share gain Proportionate 35.9% 35.2% 0.7pp EBITDA margin • Profitable growth Share of 1,406 1,270 11% operating profit(1) (1) Before goodwill amortisation and exceptional items
Slide 59: Verizon Wireless: Net Additions and Churn
Verizon Wireless Net additions and penetration Churn 30% 3,500 56% 53% 49% 50% 25% 3,000 Annualised half year churn % 2,500 20% 2,000 ('000s) 15% 1,500 10% 1,000 500 5% 0 0% H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 Price Communications Wireless acquisition Net addition
Slide 60: Verizon Wireless: ARPU and EBITDA
Verizon Wireless ARPU & data Proportionate EBITDA(2) 660 1,150 2.7% 36.1% 35.3% 35.1% 35.7% 640 1,100 Proportionate EBITDA (£ millions) 620 1.7% 12 month rolling ARPU ($) 1,050 600 1.1% 580 0.8% 1,000 560 950 540 900 520 500 850 Sep 02 Mar 03 Sep 03 Mar 04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 ARPU Da
Slide 61: Vodafone/Verizon Joint Initiatives
Vodafone/Verizon Joint Initiatives • Continued strong working relationship • Dual mode global phone • Vodafone dashboard to be used for data card offering • SMS interoperability
Slide 62: Vodafone Japan
Vodafone Japan 2004 2003 Increase £m £m • Challenging market Turnover 7,745 7,539 3% conditions Operating 1,045 1,310 (20%) profit(1) • Increasing focus on 3G EBITDA 28.9% 31.3% (2.4pp) margin(2) (1) Before goodwill amortisation and exceptional items (2) Proportionate EBITDA before exceptional items
Slide 63: Vodafone Japan: Net Additions and Market Share
Vodafone Japan Net additions Customers and market share 1,000 18.0% 18.5% 18.6% 18.4% 800 14,951 14,540 600 13,912 ('000s) 400 12,949 200 0 H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 Contract net additions Prepaid net additions Customers Market share
Slide 64: Vodafone Japan: Customer Base Costs and EBITDA
Vodafone Japan Customer base costs Proportionate EBITDA(1) 180 1,000 32.0% 32.4% 160 23.9% 30.6% 23.7% 140 25.4% 20.0% 800 Customer base costs (¥ billions) 18.1% 120 EBITDA (£ millions) 100 600 80 400 60 40 200 20 0 0 H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 SRC SAC %
Slide 65: Vodafone Japan: ARPU and Data
Vodafone Japan ARPU & data Year on year growth 100,000 21.3% 21.9% 25% 20.3% 18.1% 20% 75,000 20% 12 month rolling ARPU (¥) Year on year growth 15% 15% 14% 50,000 13% 13% 11% 10% 10% 9% 8% 25,000 6% 5% 5% 0% 0 0% Sep 02 Mar 03 Sep 03 Mar 04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 ARPU Data % of service
Slide 66: Vodafone Japan
Vodafone Japan • Fundamental market shift from 2G to 3G Increasing • Wider 3G handset availability in Christmas quarter 3G Focus • High quality 3G network • Fundamental change required Competitive Position • Extensive transformation plan • No significant benefits from transformation plan until FY06
Slide 67: Business Transformation Plan
Business Transformation Plan • Improve integrated 3G offering Commercial and Marketing • Focus on corporate segment Initiatives • Targeted marketing initiatives • Increase support to existing channels Distribution • Develop new outlets, some controlled • Efficient segment-driven system • 9 into 1 in
Slide 68: Vodafone Japan: Summary
Vodafone Japan Summary • Far reaching change programme • Good business with huge potential • Building one integrated, national business • Long term commitment to Japanese market
Slide 69: Vodafone Group: Conclusion
Vodafone Group Conclusion • Delighting our customers • Continued investment in 3G services • Drive scale and scope benefits • Build on success as worldwide leader
Slide 70: Peter Bamford, Chief Marketing Officer
Peter Bamford Chief Marketing Officer Vodafone Group Plc © Vodafone Group 2004
Slide 71: Marketing Objectives
Marketing Objectives • Build Vodafone brand and delight our customers • Drive revenue growth – Co-ordinated marketing initiatives – Focused end-to-end customer propositions
Slide 72: Group Marketing Organisation
Group Marketing Organisation • Aligned with customer segments • High calibre • Multi-national
Slide 73: Brand Awareness has grown strongly
Brand Awareness has grown strongly….. …focus on brand preference 100 Prompted awareness* Spontaneous Awareness%* over 98% 60 54% 50 39 63% 20% 24 20 0 Dec 2000 Dec 2001 Dec 2002 Dec 2003 * Vodafone subsidiary countries
Slide 74: Driving Brand Preference
Driving Brand Preference… …through every element of the customer experience Customer Care Handset / UI Information Services Network Channel Set up Tariffs Billing Actual Experience Perception
Slide 75: Driving Revenue through Segmentation
Driving Revenue through Segmentation Teens Young, Active, Fun Adult Personal User Mature Basic User Self Chooser for Work Company Paid Int. Bus. Traveller
Slide 76: Segmented Propositions
Segmented Propositions Segment Voice & Text Data Teens Young, Active, Fun TM Vodafone live! Adult Personal User Core Usage Mature Basic User Self Chooser for Work Vodafone Company Paid Vodafone Wireless Push Mobile Office e-mail Connect Int. Bus. Traveller
Slide 77: Core Voice and Text Usage
Core Voice and Text Usage Current OpCo Driving 7 Initiatives Best Practices based on: - Usage - Product - Penetration ARPU - Tariff - Value Customer Insight - Promotion and Pilot
Slide 78: Vodafone live! Enhancements
Vodafone live! Enhancements TM • Video messaging New Products • Ringback tones Launched • Games with 3D graphics and online high-scores • Sony Pictures and Sony Music Entertainment Global • Walt Disney Content • Warner Bros. Deals • THQ Wireless Terminal • Extended range from 3-15 Portfolio • Includ
Slide 79: Vodafone live! Growth and Performance
Vodafone live! Growth and Performance TM • Available in 19 countries • Mobilkom Austria first partner network to launch Vodafone live! today in Austria, Croatia & Slovenia TM Growth • 6.8 million customers in controlled subsidiaries • 8.5% penetration of customer base • 0.7 million customers in asso
Slide 80: Vodafone live! with 3G
Vodafone live!™ with 3G © vodafone
Slide 81: Vodafone Wireless Office
Vodafone Wireless Office • Now launched in 8 countries
Slide 82: Vodafone Mobile Connect
Vodafone Mobile Connect TM
Slide 83: Vodafone Mobile Connect 3G Datacard
Vodafone Mobile Connect 3G Datacard “Vodafone Mobile “The savings on my Connect saves our sales hotel phone charges reps up to 5 hours a alone have more than week unnecessary paid back the travel. This increased investment in the card. I productivity is equivalent am recommending the to an additiona
Slide 84: Push E-mail
Push E-mail —S ad BLACKBERRY 12:34ru rmsn2s 185068 cons Lull (ll 2989S 0000684 09SSSO000G%g @2%S%I0004 © vodafone
Slide 85: Summary
Summary • Our brand is now well established • Customer segmentation model provides clear focus and targeting capability • Proven approach to developing, testing, rolling out and enhancing customer propositions • Vodafone live! and Vodafone Mobile Connect provide TM TM platforms for 3G
Slide 86: Thomas Geitner, Chief Technology Officer
Thomas Geitner Chief Technology Officer Group Technology and Business Integration Vodafone Group Plc © Vodafone Group 2004
Slide 87: Delivering the Benefits of Scale and Scope
Delivering the Benefits of Scale and Scope 0 3 7 Momentum One Vodafone – Branding – Product & Services – Supply Chain Management
Slide 88: Benefits of One Vodafone
Benefits of One Vodafone… …achieve sustainable competitive advantage Speed to Customer Strategic Cost Growth for Market Experience Position People
Slide 89: Total Cash Cost 03/04
Total Cash Cost 03/04 16 majority-owned OpCos Interconnect Commissions & Loyalty Internal Spend External Spend Marketing & Customer Network IT Other Total Costs Sales Operations Functions
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Slide 91: Focus on Six Areas
Focus on Six Areas Network Standardisation and supply chain management Service Platforms Shared Service Centre Terminals Standard process and supply chain management Customer Management Common practice and IT consolidation IT Common practice and IT consolidation Roaming Leverage footprint
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Slide 93: Arun Sarin, Chief Executive
Arun Sarin Chief Executive Vodafone Group Plc © Vodafone Group 2004
Slide 94: Outlook for FY 04/05
A year of transition Outlook for FY 04/05 Average Organic Customer Growth* High single digit Organic Mobile Revenue Growth* High single digit Mobile EBITDA Margin* Broadly stable Fixed Asset Additions Around £5bn * Proportionate Basis
Slide 95: Free Cash Flow Outlook
Outlook for FY 04/05 Free Cash Flow £8.5bn for FY 03/04 ~£7bn for FY 04/05 Included: Assumes: • + £600m one off hedging gain • No hedging gain • + £200m free cash flow from JT fixed • No free cash flow from JT - sold • - £1,200m cash tax payment • - ~£2,000m cash tax payments • - £4,300m cash capex
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Slide 97: Important information
Important information This presentation does not constitute, or form part of, any offer or invitation to sell, or any solicitation of any offer to purchase any securities in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of or be relied on in connec
Slide 98: 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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