Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Day (March 2021)
64 slides from Vodafone Group Public's investor day presentation, March 2021
Slide 1: Vodafone Business Investor Briefing
Vodafone Business Investor Briefing March 2021
Slide 2: Agenda
⫶ Agenda Video presentation here: investors.vodafone.com Welcome & introduction p3 1 1 We operate in attractive markets. Vinod Kumar CEO p8 2 2 We have unique scale & capabilities. p21 3 We have strong operating momentum. Sateesh Kamath Finance Director p35 4 3 We are on a clear growth pathway. Vino
Slide 3: Connecting people, places & things for a better future
⫶ Connecting people, places & things for a better future Video here: investors.vodafone.com >6 million 150+ million €10 billion 28% of customers connections Service revenue Vodafone1 Investor Briefing March 2021 1Proportion of Vodafone Group FY20 Service Revenue 3
Slide 4: We operate in attractive markets
1 ⫶ We operate in attractive markets. …with full breadth of … across large geographic Serving all customer sizes… products… footprint Mobile Germany €16bn market €34bn market SOHO1 1% market growth €13bn market Fixed 3% market growth €27bn market UK 1% market growth €30bn market Unified €9bn market
Slide 5: We have unique scale & capabilities
2 ⫶ We have unique scale & capabilities. The largest dedicated B2B connectivity provider in Europe & Africa Network infrastructure • Reliable global connections • Integrated convergence Product development • Greater investment capability • Multiple market potential Scalable platforms • Standardised
Slide 6: We have strong operating momentum
3 ⫶ We have strong operating momentum. Service Revenue Contribution margin1 Capital intensity Jan - Dec YoY% Jan - Dec Capital model Indicative ROCE High capital need Low & Mobile €5.9bn -0.4%2 70-75% (direct invest model) improving High capital need Low & Fixed €3.1bn 3.9% 40-50% (direct invest & i
Slide 7: We are on a clear growth pathway
4 ⫶ We are on a clear growth pathway. Our ambition Our 3-pillar growth plan Above-market revenue growth in Mobile & Fixed Double-digit revenue growth in Unified, Cloud, Security & IoT Optimised balance of EBITDA growth & EBITDA margin Investment in high marginal ROCE opportunities Consistent ROCE gr
Slide 8: We operate in attractive markets
1 ⫶ We operate in attractive markets. Vinod Kumar CEO Vodafone Business Investor Investor Briefing March 2021 8
Slide 9: Key messages: attractive markets
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Key messages ⫶ We operate in attractive markets. A We operate in attractive addressable markets. B We serve private & public sector customers of
Slide 10: We operate in attractive addressable markets
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. A ⫶ We operate in attractive addressable markets. Africa & other1 We operate in a few large national Germany UK Italy Spain Other markets market
Slide 11: Addressable profit pools and where we invest
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. A ⫶ We operate in attractive addressable markets. Denotes size of addressable industry profit pool 11 Significant differences in addressable pro
Slide 12: We serve private & public sector customers of all sizes
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Video case study here: B ⫶ We serve private & public sector customers of all sizes. investors.vodafone.com Consumer SOHO SME Enterprise (Small O
Slide 13: Enterprise market spend by sector and product
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ We serve private & public sector customers of all sizes. Enterprise 7 sectors drive Retail Manufacturing Financial services Govt. & Educatio
Slide 14: SME market spend by sector and product
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ We serve private & public sector customers of all sizes. SME 5 sectors drive Manufacturing Prof. services Retail & wholesale Financial servi
Slide 15: Our markets are fragmented
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. C ⫶ Our markets are fragmented... Core connectivity market consolidated, but high fragmentation in growth markets presents an opportunity Custom
Slide 16: But benefit from scale
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. C ⫶ …but benefit from scale. Breadth & scale are key success factors in supporting our customers Network Product Access to Scalable platforms in
Slide 17: Our markets have compelling growth drivers
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. D ⫶ Our markets have compelling growth drivers. Structural drivers Customer requirements Growth opportunity Significant ‘catch-up’ as Mobile SME
Slide 18: Growth drivers: SOHO, SME and Enterprise
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. D ⫶ Our markets have compelling growth drivers. FY21 €13bn • Incremental €1 billion market growth SOHO FY22 €13bn over 3 years €13bn market • Ma
Slide 19: Growth drivers by product market
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. D ⫶ Our markets have compelling growth drivers. FY21 €16bn FY21 €40bn Mobile FY22 €16bn Cloud FY22 €44bn €16bn market €40bn market FY23 €17bn FY
Slide 20: Conclusions: attractive markets
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Conclusions ⫶ We operate in attractive markets. A We operate in attractive addressable markets. We serve private & public sector customers of al
Slide 21: We have unique scale & capabilities
2 ⫶ We have unique scale & capabilities. Vinod Kumar CEO Vodafone Business Investor Investor Briefing March 2021 21
Slide 22: Key messages: scale & capabilities
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Key messages ⫶ We have unique scale & capabilities. A We have an experienced & talented team. B We are expanding our portfolio of products & ser
Slide 23: We have an experienced & talented team
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. A ⫶ We have an experienced & talented team. Leveraging scale through shared expertise Local, in-market delivery & customer support • 3,100 team
Slide 24: Matrix organisation and leadership
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. A ⫶ We have an experienced & talented team. Matrix organisation to optimise blend of technical & functional expertise with deep local knowledge
Slide 25: Expanding our portfolio of products & services
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ We are expanding our portfolio of products & services. Mobile Fixed Unified Cloud Security IoT €5.9bn revenue1 €3.1bn revenue1 €0.6bn revenu
Slide 26: Mobile, Fixed and Unified
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ We are expanding our portfolio of products & services. Mobile Fixed Unified Enabling uninterrupted business through Integrated solutions to
Slide 27: Cloud, Security and Managed infrastructure
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ We are expanding our portfolio of products & services. Cloud Security Managed infrastructure Packaged & tailored cyber security services fro
Slide 28: IoT products and solutions
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Video case study here: B ⫶ We are expanding our portfolio of products & services. investors.vodafone.com IoT connectivity IoT Automotive IoT end
Slide 29: Leading strategic partner of choice
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. C ⫶ We are a leading strategic partner of choice. Scale economics underpinned by global wholesale & partner market operation Global reach Top 5
Slide 30: Strategic partnerships overview
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Video case study here: C ⫶ We are a leading strategic partner of choice. investors.vodafone.com Partner # markets1 Products Overview of strategi
Slide 31: Managed Security partnership with Accenture
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. C ⫶ We are a leading strategic partner of choice. Managed Security ⫶ Strategic partnership with Why Security? Why Accenture? Why Vodafone? Partn
Slide 32: Rapid innovation & implementation are core competencies
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. D ⫶ Rapid innovation & implementation are core competencies. We have a holistic approach to enable and drive innovation throughout our organisat
Slide 33: Sector-specific innovative solutions
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Video case study here: D ⫶ Rapid innovation & implementation are core competencies. investors.vodafone.com Our scale & expertise enables develop
Slide 34: Conclusions: scale & capabilities
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Conclusions ⫶ We have unique scale & capabilities. A We have an experienced & talented team. We are expanding our portfolio of products & servic
Slide 35: We have strong operating momentum
3 ⫶ We have strong operating momentum. Sateesh Kamath Finance Director Vodafone Business Investor Investor Briefing March 2021 35
Slide 36: Key messages: operating momentum
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Key messages ⫶ We have strong operating momentum. A Step-change in commercial delivery. B Rapid response to radical change during pandemic. C Cl
Slide 37: Step-change in commercial delivery
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. A ⫶ Step-change in commercial delivery Consistent improvement in Mobile Capturing Cloud & Security market growth 1,900 Annual Mobile net user ad
Slide 38: Consistent improvement in commercial delivery: IoT
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. A ⫶ Consistent improvement in commercial delivery IoT ⫶ Our 10 year journey to develop a global best-in-class IoT proposition Market Leader Capa
Slide 39: Rapid response to radical change during pandemic
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Video case study here: B ⫶ Rapid response to radical change during pandemic. investors.vodafone.com Vodafone Business underpinning the digital e
Slide 40: IoT supporting COVID-19 testing & vaccination
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ Rapid response to radical change during pandemic. IoT ⫶ Supporting COVID-19 testing & vaccination Requirements How we met them Enabling Vacc
Slide 41: Clear economic model levers for value creation
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. C ⫶ Clear economic model levers for value creation. Service Revenue Contribution margin1 Capital intensity Jan - Dec YoY% Jan - Dec Capital mode
Slide 42: Saving costs and improving service across customer lifecycle
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Video case study here: C ⫶ Clear economic model levers for value creation. investors.vodafone.com Saving costs and improving service across the
Slide 43: Prioritising investment in high ROCE opportunities
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. D ⫶ Prioritising investment in high ROCE opportunities. Capital allocation priorities Invest in high ROCE opportunities Indicative capital alloc
Slide 44: Cloud & Security: strong marginal ROCE
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. D ⫶ Prioritising investment in high ROCE opportunities. Cloud & Security ⫶ Strong marginal ROCE Cloud & Security for SME • Integrated provider f
Slide 45: Conclusions: operating momentum
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Conclusions ⫶ We have strong operating momentum. A Step-change in commercial delivery. Rapid response to radical change during pandemic. B SOHO
Slide 46: We are on a clear growth pathway
4 ⫶ We are on a clear growth pathway. Vinod Kumar CEO Vodafone Business Investor Investor Briefing March 2021 46
Slide 47: Key messages: growth pathway
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Key messages ⫶ We are on a clear growth pathway. A Our purpose underpins our growth strategy. B Our growth strategy has 3 core elements. C We ar
Slide 48: Our purpose underpins our growth strategy
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. A ⫶ Our Purpose underpins our growth strategy. Digital Inclusion Our purpose Planet Society for All We connect for a better future Reducing envi
Slide 49: Business 2025: three core growth elements
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ Our growth strategy has 3 core elements. BUSINESS⫶2025 SME⫶CHAMPION GIGABIT⫶ENTERPRISE Trusted partner in digital Provider of choice for jou
Slide 50: SME Champion
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Video case study here: B ⫶ Our growth strategy has 3 core elements. investors.vodafone.com SME⫶CHAMPION Trusted partner in digital journey, leve
Slide 51: Gigabit Enterprise
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ Our growth strategy has 3 core elements. GIGABIT⫶ENTERPRISE Provider of choice for next-generation integrated connectivity • Core connectivi
Slide 52: IoT End-to-End
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. B ⫶ Our growth strategy has 3 core elements. IoT⫶END-TO-END Easy to adopt end-to-end IoT for every business • Offer a broad portfolio of modular
Slide 53: Investing to expand our solution portfolio
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. C ⫶ We are investing to expand our solution portfolio. Core strengths in all markets Current expansion Emerging focus Mobile Device life-cycle M
Slide 54: Clear targets to assess our performance
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. D ⫶ We have clear targets to assess our performance. BUSINESS⫶2025 What we’ll look like Our ambition Seamless digital experience powered by Abov
Slide 55: Conclusions: a clear plan for growth
1 ⫶ We operate in attractive markets. 2 ⫶ We have unique scale & capabilities. 3 ⫶ We have strong operating momentum. 4 ⫶ We are on a clear growth pathway. Conclusions ⫶ We have a clear plan for growth. A Our purpose underpins our growth strategy. Our growth strategy has 3 core elements. B Digital S
Slide 56: Conclusions
Conclusions Vinod Kumar CEO Vodafone Business Investor Investor Briefing March 2021 56
Slide 57: Connecting people, places & things for a better future
⫶ Connecting, people, places & things for a better future 1 We operative in attractive markets. We have unique scale & capabilities. 2 Unique scale Talented people Strong partners Leading products 3 We have strong operating momentum. We are on a clear growth pathway. 4 Investor Briefing March 2021 5
Slide 58: Appendices
I Definitions p59 II Speaker biographies p60 III Addressable market data p61 IV Financial summary p62 Appendices V Important notice p63 H1 FY21 Investor Investor Briefing MarchResults Interim 2021 58 58
Slide 59: Appendix I: Definitions
Appendix I ⫶ Definitions Term Definition Term Definition Addressable Total market revenue available in markets that can be accessed by NPS Net Promoter Score, a measure of customer sentiment market Vodafone’s customer, geographic and product offering Roaming Allows customers to make calls, send and
Slide 60: Appendix II: Speaker biographies
2 ⫶ We are the Appendix II ⫶ Speaker leading connectivity biographies provider in Europe & Africa. Vinod Kumar Sateesh Kamath CEO, Vodafone Business Finance Director, Vodafone Business Vodafone Group Executive Committee member since September 2019 Vinod Kumar joined Vodafone and the Executive Commit
Slide 61: Appendix III: Addressable market data
2 ⫶ We are the Appendix III ⫶leading Addressable connectivity market provider data in Europe & Africa. FY21 FY22 FY23 FY24 FY21-24 CAGR By customer segment SOHO €13bn €13bn €14bn €14bn 3% SME €18bn €20bn €21bn €23bn 8% Enterprise €75bn €81bn €88bn €96bn 9% Total €106bn €114bn €123bn €134bn 8% By pro
Slide 62: Appendix IV: Financial summary
2 ⫶ We are the Appendix IV ⫶leading Financial connectivity summary provider in Europe & Africa. Total Vodafone Business service revenue growth Annual mobile net user additions FY19 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q3 FY19 Q3 FY20 Q3 FY21 (IAS18) (IFRS15) (IFRS15) (IFRS15) (IFRS15) Reported (‘000) 1,289
Slide 63: Appendix V: Important notice
Appendix V ⫶ Important notice By accessing these slides, you agree to be bound by the following conditions. You may not Forward-looking statements are sometimes, but not always, identified by their use of a date in disseminate these slides or any related recording, in whole or in part, without the p
Slide 64: Investor Relations contacts and upcoming events
Group Investor investors.vodafone.com Upcoming events Relations ir@vodafone.co.uk 1 Kingdom Street, London, W2 6BY 18 FY21 results May Matthew Johnson Director matthew.johnson@vodafone.com Group IR Daniel Morris Deputy Director Group IR daniel.morris@vodafone.com 17 Technology investor briefing June