Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Day (September 2004)
14 slides from Vodafone Group Public's investor day presentation, Sep 27, 2004
Slide 1: Vodafone Analyst & Investor Day - Vodafone Germany
Vodafone Analyst & Investor Day Monday 27 September 2004 Vodafone Germany Presenters: Jürgen von Kuczkowski, CEO Fritz Joussen, COO Q&A Panel: Jürgen von Kuczkowski, CEO Fritz Joussen, COO Albert Weismueller, CFO 11 The following presentation is being made only to, and is only directed at, persons t
Slide 2: Market overview
Agenda Market Overview Financial Review Commercial Strategy 22 Market overview Net additions ('000) Market share customer base ('000) Year to June '04 30 June '04 1,281 9% (20%) 2,213 13% (35%) 38% 1,000 (16%) 1,801 40% (29%) Vodafone Germany T-Mobile E-Plus O2 Vodafone Germany T-Mobile E-Plus O2 Ma
Slide 3: Market share and competitive positioning
Market share EBITDA margin and customer share 48% 46% EBITDA margin 44% 42% 40% 36% 38% 40% 42% 44% Closing customer share Vodafone Mar-03 T-Mobile Mar-03 Vodafone Mar-04 T-Mobile Mar-04 Strong improvement in profitability Source: Public and Company data 44 Competitive positioning High • incumbent w
Slide 4: Regulation: termination rates
Regulation Termination rates: Vodafone from fixed network operators 18.00 (€-Cent/min) 16.41 16.00 14.32 14.32 14.32 13.20 * 14.00 11.00 * 12.00 -8% 10.00 -17% 8.00 6.00 4.00 2.00 0.00 2000 2001 2002 2003 2004 2005 * Agreed with Deutsche Telekom; subject to review by RegTP Considerable decrease in t
Slide 5: Revenue analysis and cost analysis
Revenue analysis Year on year growth Voice & data ARPU (1) 400 17.2% 17.4% 17.4% 16.7% 17.0% 350 10% 9% 9% 300 8% 52 53 53 54 54 8% 7% 8% 7% 250 Year on year growth 6% 6% 200 5% ARPU (€) 4% 150 4% 4% 3% 261 259 258 256 255 100 2% 50 0% 0 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 (1%) (2%) Voice ARPU Data A
Slide 6: Cost management and EBITDA
Cost management Operating expenses as % of gross 25% service revenue 120% 24% 115% Sites 23% 110% 22% 105% Customers 21% 100% 20% Opex 95% 19% 90% 18% 2002/03 2003/04 H1 02/03 H2 02/03 H1 03/04 H2 03/04 Sites Customers Operating expenses Operating expenses as a % gross service revenue Strong focus o
Slide 7: Driving cash flow
Driving cash flow Tangible fixed asset additions Operating free cash flow(1) 29.4% 1600 17.0% 2,500 15.8% 25.7% Operating free cash flow (€ millions) 2,000 Fixed asset additions (€ millions) 1200 1,500 800 1,000 400 500 0 0 2002/03 2003/04 2002/03 2003/04 Fixed asset additions Fixed asset additions
Slide 8: Business objectives and sustainable differentiation
Business objectives Brand preference - No 1 mobile brand in Germany Revenue growth through sustainable differentiation Operational excellence benefiting from global scale and scope Profitable growth 14 14 Sustainable differentiation Cost savings Strong global brand Product innovation Roaming benefit
Slide 9: Brand awareness and consumer segmentation
Brand awareness and preference Spontaneous brand awareness Brand preference 100% 45% 40% 80% 35% 30% 60% 25% 20% 40% 15% 10% 20% 5% 0% 0% Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 02 03 03 0
Slide 10: Business segmentation and customer development
Segmentation and product innovation drives customer satisfaction - business Vodafone Mobile Self-Chooser Connect Card for Work f rom – New pricing scheme ss ce – 90% of sales now 3G S uc Business 80 International 75 Business 70 Traveller 65 60 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Jly 04 Vodafon
Slide 11: Minute bundles
Minute bundles V.50 V.100 V.200 V.500 Monthly prices €15.00 €25.00 €40.00 €90.00 Included minutes 50 100 200 500 Fixed network + VF Germany Following up price per minute €0.40 €0.35 €0.30 €0.25 SMS €0.20 Happy options HappyWochenende €5.00 HappyAbend €7.50 Successful introduction of minute bundles w
Slide 12: Happy options and distribution
Happy options High customer attraction to 1.1m* generate pull for minute bundles 0.6m* Capacity yield management Behaviour change HappyWochenende HappyAbend * as per 21.09.2004 In addition, we are realising a further €1-2 from Happy options 22 22 Distribution Customer Decentralised sales base by sal
Slide 13: Distribution and churn
Distribution Acquisition costs per customer (in Euro) 100 80 60 Q1 02/03 Q2 02/03 Q3 02/03 Q4 02/03 Q1 03/04 Q2 03/04 Q3 03/04 Q4 03/04 Q1 04/05 Vodafone Germany T-Mobile ...lead also to lower acquisition costs while maintaining net market share... Source: Public and Company data 24 24 Churn Total c
Slide 14: Summary
Summary Achieving business objectives through... Driving brand preference and customer satisfaction Driving revenue through focus on value Operational excellence in customer acquisition and overheads 26 26 Forward-Looking Statements This presentation contains “forward-looking statements” within the