Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Day (July 2012)
34 slides from Telefonica Sa's investor day presentation, Jul 5, 2012
Slide 1: 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 2: M2M: a global market happening now
- A global market happening now Points of difference Global Network Market strength—Corporate Product differentiation beyond connectivity Leading OBs 2015 Revenue target* *According to guidance criteria € Bn 0.5-0.8 MR. CARLOS MORALES
Slide 3: M2M main messages
M2M – main messages Enormous opportunity, with market already happening in M2M. Markets at both global and local levels. We expect 3 or 4 global leaders in the medium term ?Differential approach from Telefónica: End-to-End solutions in addition to connectivity and global reach as our major different
Slide 4: M2M: a huge opportunity, happening now
M2M – a huge opportunity, happening now 20 Billion Internet Connected Devices by 2020** Drivers E-Health* ??Widely deployed networks ??Data communication cost decline ??Explosion of connected devices of relative lower cost ??Regulation Benefits for customers/changes in the value chain ??Operational
Slide 5: Telefónica
5 Felefinica
Slide 6: Telefónica's E2E solutions
Telefonica s E2E solutions in Managed connectivity; Data Collection & Analysis; Device Installation & Management Customer Relationship, Invoicing, Support
Slide 7: … and our global reach
… and our global LATAM Europe Middle East & Africa Asia Pacific Direct M2M Capabilities Partnerships in M2M
Slide 8: Already a major player in UK, Spain and LATAM
Already a major player in UK, Spain and LATAM >6 MM lines activated worldwide (March 2012) Leadership in key regions Strong position in key industries Industry Technology Automotive / Transport Utilities Security Industrial Equipment Point of Sales
Slide 9: Telefónica serving global and local leaders
Telefónica serving global and local leaders ?G4S is one of the UK´ s leaders in smart-metering operations as well as in security solutions ??Has awarded Telefónica with one of the biggest M2M contracts to provide managed connectivity to support the delivery of services in the energy market Key Takea
Slide 10: Initial traction on E2E solutions
Initial traction on E2E solutions Commercializing end-to-end fleet management and asset tracking services in EU and LATAM. Already monitoring over 80,000 vehicles globally. Key reference wins in: Logistics, Insurance, Public Services. ??European Alliance with top fleet management company Home Energy
Slide 11: Focus created a strong momentum
Focus created a strong momentum And the future looks even better—we are currently present in open tenders for > € 900 M The amount of contract value won has spiked in Two commercial approaches: 2012 • Global • Local Cumulative Full value of Contracts won (€ M) June 2011 December 2011 June 2012 1H201
Slide 12: M2M conclusions
M2M conclusions An enormous opportunity Telefónica´ s differential approach Telefonica s 20 Bn internet connected devices by 2020* Telefónica already offers global managed connectivity as well as End-to-End solutions for key industries We are already exploiting our global reach, enhanced by solid pa
Slide 13: Financial Services in LATAM
FINANCIAL SERVICE IN LATAM—- Value From a Points of difference Distribution Network Market strength—Consumer 2015 Revenue target Financial Services + Advertising* MR. EDUARDO CARIDE € Bn 0.8-1.1 *According to guidance criteria
Slide 14: The opportunity
The opportunity LATAM Markets Attributes Market Attributes Mobile phone Telefónica Relative Banking penetration (1) Position* (1) level (2) 137% #2 40% 79% #1 28% 82% #2 20% 128% #1 49% 106% #2 28% The LATAM market opportunity High mobile penetration but only 35% of consumer High costs of financial
Slide 15: The Social Need
The Social Need Low income segments face difficulties to make their payments Security concerns Transportation costs Long queues to pay bills Governments and businesses face costly processes to handle cash Transporting and counting cash Distributing social funds Collecting payments from merchants
Slide 16: A compelling service
A compelling “Simplify Service attributes Operates anywhere, anytime As simple and fast as sending an SMS Works on every phone No upfront fees. Only pay if you use Load or withdraw money at thousands of service points Service portfolio Money transfer to other mobile phones Airtime top-ups Bill payme
Slide 17: With a strong partner, MasterCard, as a key strategic player
with a strong MasterCard as a key strategic player Integration with the financial system for connecting the banked and the unbanked Strong brand and payments expertise Access merchants and transaction points in the region Pay salaries Collect and Distribute funds Accept payments Pay suppliers, salar
Slide 18: Wanda launched in Argentina
Wanda launched in Argentina •Transportation •Retailers •Social fund disbursement •Etc. Wanda is generating strong initial traction in pilot cities Day Friends & family Soft Launch Commercial launch May Movistar employees City of La Plata Across 5 cities Focus first on product rollout then market acc
Slide 19: Also delivering strong value for the core business
Also delivering strong value for the core business Reinforce Mobile Centricity Reinforce Movistar s positioning as market innovator Higher stickiness and 24x7 top up channel lead to an ARPU increase Benchmarks point to ARPU increase Reduce Churn Bundling of mobile and financial services increases ba
Slide 20: Moving rapidly to expand our reach
Moving rapidly to expand our reach Before the end of the year we plan to expand to 4 additional markets, with a total addressable market of 135 M customers Q2 Q3 Q4 July August September October November December ARGENTINA PERU MEXICO BRAZIL COLOMBIA
Slide 21: Financial Services in LATAM conclusions
Financial Services in LATAM conclusions Social needs are creating a huge opportunity for mobile payments in LATAM Telefónica has the best internal assets and partner (MasterCard) to address the opportunity The wallet for the unbanked people will strengthen our core business, enhancing loyalty and in
Slide 22: Financial Services in Europe
Financial Services in Europe Points of difference Product differentiation beyond connectivity Market strength—Consumer Leading OBs 2015 Revenue target Financial Services + Advertising* € Bn 0.8-1.1 *According to guidance criteria MR. MATTHEW KEY
Slide 23: Financial Services Europe: bringing process to the mobile
Financial Services Europe – bringing process to the mobile Offers & Coupons Product Information Size of M-Commerce Market Opportunity 55 bn € Multi-Channel Loyalty & Rewards Payment Product progress 48% are aged 18 to 35 Popular with young affluent professionals 150K users € 66 M loaded onto cards 6
Slide 24: Advertising: foundations built to seize the high growth opportunity
ADVERTISING—Foundations built to seize the high growth opportunity Points of difference Product differentiation beyond connectivity Market strength—Consumer Service provisioning capability Leading OBs 2015 Revenue target Financial Services + Advertising* € Bn 0.8-1.1 *According to guidance criteria
Slide 25: The advertising landscape has changed
The advertising landscape has changed
Slide 26: Massive potential for mobile advertising
There is massive potential for mobile advertising—spend significantly lags time spent on device Value shifting capability Room to grow 2011 US Ad Spend Consumer Time Spent by Media type
Slide 27: A range of assets to leverage, focusing on Mobile
We have a range of assets to leverage—focusing on our main point of differentiation: Mobile Our aim: create value for our customers and the whole ecosystem, fulfilling the needs of advertisers & agencies With a potential reach of close to 1Bn people New Communication services
Slide 28: Capabilities in place to drive global mobile advertising growth
Our capabilities are in place to drive sustained global mobile advertising growth A business gaining traction Milestones: 23 M customers opted-in across Europe ? Global trading deals in place ? € 60 M revenues run rate in the UK Capabilities: Leveraging customer data and location to develop highly t
Slide 29: Customer examples
Customer examples Messaging Pizza Hut • Mobile messaging was the No. 1 performing media • 142% more efficient in delivering Incremental Sales Revenue than the campaign average • 4.4x more efficient than TV Priority Moments House of Fraser • 17,000 Priority Moments redemptions over 4 weeks • Combinin
Slide 30: Exploiting the opportunity in Brazil
Exploiting the opportunity in Brazil leveraging on our assets and our know-how built in Europe A high potential market in LATAM Overall Advertising Market size € 15 Bn* •14% growth in 2011** •Brazil ranked 2nd in forecast Ad growth** •Online market opportunity > € 1.5 Bn*** •Significant opportunity
Slide 31: A unique opportunity to re-define end-to-end advertising and m-commerce
A unique opportunity to re-define the end-to-end advertising, m-commerce and „ 360 experience Offers & Coupons Product Information Bringing new Decrease Costs, Leveraging customer knowledge, customers to the Increase Campaign Discovering new products, from providing them offers on products merchants
Slide 32: Global Advertising conclusions
Global Advertising conclusions The Advertising market is changing and Telefónica is well positioned within the new „ Data Environment ?Telefónica has a range of assets to provide scale, targeting and points of difference for the advertising sector ?We have learned from experience and capabilities ar
Slide 33: Cloud Services
CLOUD SERVICES Points of difference Service provisioning ?capability Market strength—Corporate Leading OBs MR. MATTHEW KEY 2015 Revenue target Cloud +Security* € Bn 0.5-0.7 *According to guidance criteria
Slide 34: Cloud: Transforming our customers' businesses
Cloud – Transforming our customers businesses Cloud services as part of a wide IT portfolio for the enterprise Instant Servers: A bold move in IaaS Comms & IaaS & Desktop services Connectivity IT Infrastructure powered by SaaS Security Example of clients in all delivery models High High Price Public