Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Day (September 2004)
13 slides from Vodafone Group Public's investor day presentation, Sep 27, 2004
Slide 1: Vodafone Analyst & Investor Day: Vodafone Japan
Vodafone Analyst & Investor Day Monday 27 September 2004 Vodafone Japan Presenter: Brian Clark, CEO Q&A Panel: Brian Clark, CEO Shiro Tsuda, CEO (designate) John Durkin, CFO David Jones, COO 11 The following presentation is being made only to, and is only directed at, persons to whom such presentati
Slide 2: Japan is an attractive market
Agenda Market Overview Financial Review Commercial Strategy 22 Japan is an attractive market Relatively low penetration 101% 2nd largest economy, high GDP per capita 100% 93.7% 92.4% 79.3% 3 main players 80% 64.7% Most advanced W-CDMA market 60% 40% No upfront 3G spectrum cost 20% Source of innovati
Slide 3: What is unique about Japan?
What is unique about Japan? Proprietary PDC 2G standard; requires near greenfield W-CDMA build out Operator-specific terminals – Terminals developed for specific operators do not operate on other networks – No generic, operator independent terminals as in Europe High terminal subsidy market Driven b
Slide 4: Financial performance
Significant progress made in first three years Structural efficiency: Financial achievements: Operational achievements: Vodafone control Network capex Introduced innovative new achieved rapidly restructured and focused products and services Merger of 9 regions into on acceleration of 3G – Internatio
Slide 5: The competitive landscape has changed… …impacting our revenue growth
The competitive landscape has changed… Tariff 16 deregulation 3G Subscribers (M) 15,135,500 July 2004 Total: 20.6M Launch of EV-DO Rapid market shift to 3G 12 Competitor ability to offer better services Launch of full 8 launch of scale 3G ring songs Discount data tariffs introduced Network 5,271,700
Slide 6: Cost analysis
Cost analysis Direct costs & operating expenses (1) Net retention costs Interconnection Payroll costs 80% Net acquisition costs Other direct costs Other operating costs 70% 60% 23.9% Customer 18.1% Base Costs % of gross service revenue 50% 20.0% 23.70% 40% 14.9% 15.2% Other Direct 12.5% Costs 30% 13
Slide 7: Path to commercial success - business turnaround
Path to commercial success-business turnaround Cost Reduction • Reduce cash spend (opex and capex) by capturing full local and global scale • Establish the optimum channel mix including best balance of own and partner shops Distribution • Create win-win relationship for channel partners and Vodafone
Slide 8: Strong drive to reduce costs; Good progress on 9 into 1 integration
Strong drive to reduce costs Focus on reducing operating expenses – Cost reduction programme targeting all operating expenses Leased – Conversion to dark fibre; lines ¥1.2 billion expected savings per year – Partnership with vendors to eliminate duplication; Network expected savings ¥10 billion per
Slide 9: Optimising distribution; Scale launch of integrated 3G offering
Optimising distribution Current structure More balanced acquisition Vodafone K.K. and upgrade strategy across Indirect Direct all channels >90% of sales <10% of sales Deepen relationships with key Direct sales channel partners Indirect sales through third parties Provide a more compelling in- store
Slide 10: Wide range of 3G terminals for Christmas quarter
Wide range of 3G terminals for Christmas quarter Sharp SonyEricsson NEC V902SH V802SE V802N Sharp Nokia Motorola Motorola V802SH V702NK V702MO V702sMO 18 18 Exclusive to Vodafone….. 19 19 10
Slide 11: Expanding 3G network coverage; Capital expenditure
Expanding 3G network coverage Competitive outdoor coverage Rapid indoor and outdoor coverage improvement Number of 100% Base stations 25,000 Vodafone K.K.: 99.6% Outdoor DoCoMo 90% (as of Aug 04) 20,000 In-building outdoor 17,300 NTT DoCoMo : 99.7% 80% (as of Jun 04) 15,000 16,500 13,000 Vodafone K.
Slide 12: Vodafone Holdings K.K. outlook; Summary
Vodafone Holdings K.K. outlook No Change to current year forecast Forecast(1) Update: (¥ Bn) Revenue 1,531 Slight year on year increase of 1.5%; highly dependent on handset sales in the second half of the fiscal year Service revenue currently in line with plan “Happy Time 1” removed from market July
Slide 13: 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 financial condition of the Vodafone Group (the “Group”), the results of operations and certain businesses controlled by