Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Q1 FY10/11 Earnings Presentation
21 slides from Vodafone Group Public's earnings presentation, Jul 23, 2010
Slide 1: Vodafone Group Plc Interim Management Statement
Vodafone Group Plc Interim Management Statement For the 3 months ended 30 June 2010 23 July 2010
Slide 2: Disclaimer
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Disclaimer Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future per
Slide 3: Agenda
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Agenda • Overview • Performance update • Financial review • Q&A 3
Slide 4: Q1 10/11 Overview
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Q1 10/11 Overview Group returns to organic revenue growth Improving revenue trends in all regions - UK and Germany return to growth Commercial actions driving faster data growth +25% Accelerating growth in emerging markets St
Slide 5: Return to organic revenue growth
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Return to organic revenue growth Q1 Q1 10/11 Q4 09/10 Group service revenue growth (%)1 10/11 Growth Growth 1.1 £bn (%) (%) Group service revenue 10.6 +1.1 (0.6)1 (0.6) Europe 6.8 (1.7) (2.4)1 (1.3) Africa & Central Europe 2.
Slide 6: Europe: revenue trends continue to improve
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Europe: revenue trends continue to improve Service revenue growth - improving trend (%)1 Enterprise service revenue growth - now positive (%) Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 0.2 (1.7) (
Slide 7: Emerging markets: growth remains strong
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Emerging markets: growth remains strong Africa & Central Europe Asia Pacific & Middle East Service revenue growth (%) Service revenue growth (%) Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 10.3 10.4 10.5 3.7 2.4 5.0 (0.5) (3.9) Q2 09
Slide 8: Driving data growth and smartphone profitability
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Driving data growth and smartphone profitability Group data revenue growth (%) Group: 25.4 • 51m data users; mostly Europe 20.1 17.7 20.3 • Mobile internet revenue +57% Increasing revenue • Mobile broadband +24% Q2 09/10 Q3 0
Slide 9: Germany: return to revenue growth
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Germany: return to revenue growth Service revenue growth (%) • Economy improving Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 0.2 • Service revenue: – Mobile +0.2%, including +1.2pp QoQ MTR benefit – Data +31%; smartphones, netbooks a
Slide 10: Italy: responding to competitive pricing pressure
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Italy: responding to competitive pricing pressure Service revenue growth (%) • Challenging market environment: Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 – Southern Europe economic issues impacting consumer 1.4 sentiment 0.7 – Signi
Slide 11: Spain: slight improvement in a challenging environment
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Spain: slight improvement in a challenging environment Service revenue growth (%) • Difficult market conditions: Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 – High unemployment; household incomes squeezed • Service revenue drivers: –
Slide 12: UK: return to revenue growth
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 UK: return to revenue growth Service revenue growth (%) • Economy stabilising Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 • Service revenue drivers: 0.7 – +3.3pp over Q4 driven by contract – Contract consumer and enterprise strong (1
Slide 13: Emerging markets: data growth in Vodacom; Turkey turnaround
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Emerging markets: data growth in Vodacom; Turkey turnaround Vodacom Turkey Service revenue growth (%) Service revenue growth (%) 8.3 7.1 31.3 6.6 5.5 5.5 23.7 4.6 4.0 3.2 12.9 (4.8) Q2 09/10 Q3 09/10 Q4 09/10 Q1 10/11 Q2 09/1
Slide 14: Emerging markets: strong performance in India
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Emerging markets: strong performance in India Service revenue growth (%) • Improving market trends: 18.0 – No major price moves by leading competitors 13.8 13.7 – ~90% of customer base on new tariffs 12.2 12.0 6.9 6.5 6.5 • S
Slide 15: Strong cash generation funds investment and dividend policy
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Strong cash generation funds investment and dividend policy Free cash flow (£bn) • Q1 10/11 free cash flow £1.8bn Includes £0.2bn VZW dividend deferral – Broadly stable YoY after adjusting for foreign exchange 2.1 1.9 1.8 1.8
Slide 16: Net debt stable after spectrum investment; strong liquidity
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Net debt stable after spectrum investment; strong liquidity Q1 10/11 • Licences and spectrum in India, Germany and £bn the Netherlands Opening net debt (31/03/10) (33.3) • Foreign exchange rate benefits Free cash flow 1.8 Lic
Slide 17: Progress on strategy
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Progress on strategy • Delivering cost savings to fund increased commercial investment Increasing • Network enhancements for faster data speeds and capability competitiveness and • Enhancement of billing systems to support da
Slide 18: A stronger Vodafone
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 A stronger Vodafone 1. More commercially focused, executing on turnarounds and regaining competitiveness 2. Growing revenue beyond mature European voice 3. Maintaining investment in capacity and quality 4. Simplified organisa
Slide 19: Question and Answer Session
Question and Answer Session
Slide 20: Definition of terms
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 Definition of terms ARPU: Service revenue excluding fixed line revenue, fixed advertising revenue, revenue related to business managed services and revenue from certain tower sharing arrangements divided by average customers
Slide 21: Forward-looking statements
Vodafone Group Plc – IMS for the quarter ended 30 June 2010 | 23 July 2010 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 oper