Vodacom Group Limited · JSE:VOD
Vodacom — H1 2012 Earnings Presentation
18 slides from Vodacom's earnings presentation, Nov 7, 2011
Slide 1: Interim results presentation
11/7/2011 Interim results presentation For the six months ended 30 September 2011 Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated (‘relevant persons’). Any person who is not a relevant person should
Slide 2: Highlights
11/7/2011 Highlights 2 Interim results: Vodacom Group Limited 30 September 2011 Really pleasing numbers Group service revenue1 Group data revenue1 Group EBITDA1 6.9% 31.5% 9.8% R27 752 million R3 924 million R10 535 million Group operating FCF HEPS Interim dividend 5.6% 6.9% 44.4% R6 930 million 324
Slide 3: Mobile data is the key growth driver
11/7/2011 Mobile data is the key growth driver 38.1% yoy increase in Group active data customers Group data G d t revenue as a % of service revenue 14 1% 14.1% Group active1 data customers Thousand 12 356 10 168 10 947 9 501 1 409 667 779 554 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Active data customers Net
Slide 4: Growth in customers underpinned by brand refresh
11/7/2011 Growth in customers underpinned by brand refresh Group customers Million/% 47.9 45.4 43.5 41.6 21.6 20.4 21.6% yoy growth in Group customers 9.0 2.8 H1 net customer additions of 4.4m Q3 2011 Customers Q4 2011 YoY change Q1 2012 Q2 2012 6 Interim results: Vodacom Group Limited 30 September
Slide 5: Building momentum in International operations
11/7/2011 Building momentum in International operations Smarter yoy growth in constant price offerings 20.0% currency service revenue M-Pesa gains traction, Tanzania active customers at 2.2m Customers Thousand 18 990 17 686 16 957 16 288 784 1 304 20 2.0m 669 729 H1 net customer additions Q3 2011 Q4
Slide 6: Our strategy: improve the customer experience
11/7/2011 Our strategy 10 Interim results: Vodacom Group Limited 30 September 2011 #1: Dramatically improve the customer experience R29 voucher with 60 free minutes Value Nightshift free late night minutes More contract free minutes RAN swaps Network Expand 3G coverage Increase capacity Online shop
Slide 7: Employee engagement and power of the internet
11/7/2011 #2: High level of employee engagement Best telco to work for in SA1 Culture change programme implemented Helpline launched for employees to help customers 1. Corporate Research Foundation Institute 12 Interim results: Vodacom Group Limited 30 September 2011 #3: Power of the internet into p
Slide 8: Operational excellence and proactive partnerships
11/7/2011 #4: Operational excellence Group opex1 to service revenue broadly stable % 24.4 24.7 12% annual reduction in CO emissions 2 2 23.5 21.9 23.1 23.4 “Green” Site solutions innovation centre H1 2009 H1 2010 H1 2011 Group South Africa Fatalities minimal lost time injuries 0 12.0% 3rd year of im
Slide 9: Financial review
11/7/2011 Financial review 16 Interim results: Vodacom Group Limited 30 September 2011 Group income statement R million H1 2012 H1 2011 % change Service revenue 27 752 26 184 6.0 Revenue 31 747 29 516 7.6 EBITDA 10 535 9 788 7.6 Operating profit before impairment losses 7 620 7 094 7.4 Impairment lo
Slide 10: Strong growth in mobile data and voice usage
11/7/2011 Strong growth in mobile data and voice usage Group service revenue growth by category R million 6.9%2 284 27 752 939 27 468 93 752 26 184 (218) 25 966 (282) H1 2011 Translation H1 2011 Mobile Mobile voice 2 Mobile Mobile data 2 Other service H1 2012 1 2 service revenue foreign service reve
Slide 11: Group operating expenses well contained
11/7/2011 Group operating expenses well contained Group operating expenses1 by category Group operating expenses1 by segment R million H1 2012 % %2 R million H1 2012 % %2 Direct expenses 14 275 7.0 7.8 South Africa 17 660 7.1 5.9 Staff expenses 2 060 0.6 1.7 International 3 859 13.0 21.0 Publicity e
Slide 12: Positive EBITDA margin trends
11/7/2011 Positive EBITDA margin trends SA EBITDA International EBITDA R million/% R million/% 9 832 742 9 225 8 781 660 587 36.5 36.0 35.9 22.2 21.3 20.3 35.8 35.9 35.3 16.6 14.7 14.6 H1 2010 H1 2011 H1 2012 H1 2010 H1 2011 H1 2012 EBITDA EBITDA EBITDA margin Total EBITDA margin EBITDA margin exclu
Slide 13: Adjusted headline earnings per share increased 8.0%
11/7/2011 Adjusted headline earnings per share increased 8.0% H1 2011 headline earnings per share H1 2012 headline earnings per share Cents per share Cents per share Adjusted Adjusted HEPS 301 HEPS 325 8 0% 8.0% Loan Loan remeasurement 2 remeasurement (1) HEPS 303 HEPS 324 6.9% Impairment losses Imp
Slide 14: Growth in free cash flow despite sizeable capex increase
11/7/2011 Movement in Group PPE and intangible assets Property, plant and equipment Intangible assets R million R million 2 932 (2 280) (158) 347 (556) 814 22 885 21 577 5 215 97 (298) 137 4 942 FY 2011 Net Depreciation Foreign Other H1 2012 FY 2011 Net Amortisation Foreign Impairment Other H1 2012
Slide 15: Improving shareholder returns
11/7/2011 Improving shareholder returns Dividend per share Total shareholder returns Cents % return for the six months ended 30 September 2011 280 Vodacom 17.7 175 MTN (1.1) 260 180 Telkom (10.0) 110 Top 40 (7.7) FY 2010 FY 2011 H1 2012 Interim dividend Final dividend Top 40 Telkom MTN Vodacom Sourc
Slide 16: In summary
11/7/2011 In summary Really pleasing numbers Mobile data is the key growth driver Investing for data growth Growth in Value focus Building customers boosts SA momentum in Improving shareholder returns underpinned by performance International brand refresh 30 Interim results: Vodacom Group Limited 30
Slide 17: Country data
11/7/2011 Country data South Africa Tanzania DRC Mozambique Lesotho Population (million) 50 46 70 24 2 GDP per capita (USD) 5 700 608 256 462 1 010 GDP growth estimate 2011 (%) 3.1 6.3 6.5 7.3 3.5 Estimated mobile penetration (%) 117 44 19 28 52 Estimated customer market share (%) 50 51 37 45 83 Own
Slide 18: Forward-looking statements
11/7/2011 Forward-looking statements This presentation which sets out the interim results for Vodacom Group Limited for the six months ended 30 September 2011 contains 'forward-looking statements‘, which have not been reviewed or reported on by the Group’s auditors, with respect to the Group’s finan