Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Presentation (2012)
35 slides from Vodafone Group Public's investor presentation, 2012
Slide 1: Vodafone Group Plc Background Presentation
Vodafone Group Plc Background Presentation
Slide 2: Disclaimer
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 performance of such investments. This presentation does not constitute an offe
Slide 3: A brief introduction to the Group
A brief introduction to the Group • Vodafone Group Plc is one of the world’s largest mobile Financial highlights FY 11/12 companies providing a wide range of services, including voice, messaging, data and fixed broadband Revenue £46.4bn EBITDA £14.5bn • We have over 404 million customers, employ ove
Slide 4: A brief introduction to the Group
A brief introduction to the Group Group service revenue Group service revenue • Voice accounts for 60% of Group service revenue FY 11/12 FY 11/12 Messaging Other 12% 16% • Data accounts for 15% of Group service revenue, Data 33% Consumer contract growing at 22% 15% Voice Enterprise 23% 60% Fixed 8%
Slide 5: A brief introduction to the Group
A brief introduction to the Group Customers by market • Over 60% of our customers are from 37% 14% 9% 9% 6% 5% 4% 16% emerging markets India Vodacom Germany Egypt Italy UK Spain Other Customers by segment • The majority of our customers are prepaid customers 12% 81% 7% Consumer Consumer prepaid Ente
Slide 6: History of the Group
History of the Group Vodafone Australia Vodafone Group Formation of Entered the India merged with listed on the Verizon Wireless Acquisition of mobile market and Hutchinson 3G London Stock between Vodafone Telsim acquired a Australia to form a Incorporated as Exchange following and Bell Atlantic, (V
Slide 7: Where we operate
Where we operate Subsidiaries Joint ventures Albania (100%) UK (100%) Australia (50%) Czech Republic (100%) Egypt (54.9%) Italy (76.9%) Germany (100%) Ghana (70%) Fiji (49%) Greece (99.9%) India (64.4%) 1 Hungary (100%) New Zealand (100%) Associates Ireland (100%) Qatar (22.95%) Verizon Wireless (45
Slide 8: Our people
Our people Gerard Kleisterlee (Chairman) Appointed July 2011 Vittorio Colao (CEO) Appointed 29 July 2008 He retired as President/CEO and Chairman of Philips on 31 March He joined Vodafone in 1996 and served as CEO Italy and then 2011 after spending three decades with the company. He is also a region
Slide 9: Our services
Our services Enterprise • Revenue from business customers accounts for 30% of European service revenue and 23% of Group service revenue Service revenue split FY 11/12 We have over Messaging • Vodafone Global Enterprise (‘VGE’) serves large multinational companies 404 million Voice 12% 15% Data • Vod
Slide 10: Our technology
Our technology Our data traffic (petabytes) Overall footprint 3G footprint Over Over LTE/other 216 238,000 base station sites 75,000 base station sites Smartphones/tablets 22% Mobile broadband 160 47% 46% 7% 77% 16% 7% 20% 22% Europe India AMAP Europe India AMAP 95 12% 10% 2% (excl. India) (excl. In
Slide 11: The Vodafone Brand
The Vodafone Brand Brand valued at Most valuable telecoms brand $30bn (Brand Finance) in the world (Brand Finance) Sponsorship Local advertising campaigns Socially responsible Vodafone Foundation: Bringing mobile to the developing world through • Founded over 20 years ago low cost handsets • Total d
Slide 12: Our strategy
Our strategy Focus on key areas of growth potential Data revenue grew by 22% in FY 11/12 Mobile data 15% of the Group’s service revenue 27% smartphone penetration in Europe 30% of our European service revenue Enterprise Revenue grew by 2% in FY 11/12 Vodafone Global Enterprise revenue +11% in FY 11/
Slide 13: Our strategy
Our strategy Deliver value and efficiency from scale • Gross savings of 12% of European costs over two years • Four shared service centres delivering net savings of c.£100m p.a. • One supply chain with £4.8bn cumulative savings over six years Generate liquidity or free cash flow from non-controlled
Slide 14: Our financial performance
Our financial performance Guidance Key financials FY 11/12 FY 10/11 FY 09/10 FY 08/09 FY 07/08 For the year ended 31 March 2013 Revenue (£bn) 46.4 45.9 44.5 41.0 35.5 Adjusted operating profit £11.1bn - £11.9bn Free cash flow £5.3bn - £5.8bn EBITDA (£bn) 14.5 14.7 14.7 14.5 13.2 Organic service reve
Slide 15: Our shareholders
Our shareholders Share price history* Dividend policy Our shareholders Price rebased to Vodafone (pence) Dividend per share growth target of at least 7% per annum until the year ending 31 March 98% North America 2013, assuming the euro to sterling exchange UK 42% 31% Institutional shareholders rate
Slide 16: Our markets: Germany
Our markets: Germany German market Mobile service revenue market share Vodafone in Germany (FY11/12) Revenue £8.2bn Smartphone 82m €14 O2 EBITDA £3.0bn penetration 23% Population Average ARPU EBITDA margin 36.0% ARPU €15 $38,100 130 15% 35% Adj op. profit £1.5bn Churn 35% GDP/capita Average MoU E-Pl
Slide 17: Our markets: Italy
Our markets: Italy Italian market Mobile service revenue market share Vodafone in Italy (FY11/12, proportionate) Revenue £5.7bn Smartphone 61m €17 3 2% MVNOs EBITDA £2.5bn penetration 25% Population Average ARPU 9% EBITDA margin 44.4% ARPU €19 $27,600 162 Wind 20% 36% Adj op. profit £1.8bn Churn 30%
Slide 18: Our markets: Spain
Our markets: Spain Spanish market Mobile service revenue market share Vodafone in Spain (FY11/12) Revenue £4.8bn Smartphone 46m €21 Yoigo 5% 5% MVNOs EBITDA £1.2bn penetration 38% Population Average ARPU EBITDA margin 25.0% ARPU €20 $22,700 143 Orange 21% 31% Adj op. profit £0.6bn Churn 33% GDP/capi
Slide 19: Our markets: UK
Our markets: UK UK market Mobile service revenue market share Vodafone in the UK (FY11/12) Revenue £5.4bn Smartphone 63m £17 MVNOs EBITDA £1.3bn penetration 44% Population Average ARPU 3 EBITDA margin 24.0% ARPU £21 8% $35,400 192 9% 26% Adj op. profit £0.4bn Churn 37% GDP/capita Average MoU Op. fre
Slide 20: Our markets: Netherlands
Our markets: Netherlands Dutch market Mobile service revenue market share Vodafone in the Netherlands (FY11/12) Revenue £1.8bn Smartphone 17m €28 MVNOs EBITDA £0.6bn penetration 48% Population Average ARPU T Mobile 4% EBITDA margin 33.8% ARPU €29 $39,100 160 23% 31% Adj op. profit £0.3bn GDP/capita
Slide 21: Our markets: Turkey
Our markets: Turkey Turkish market Mobile total revenue market share Vodafone in Turkey (FY11/12) Revenue £1.7bn Smartphone 72m TRY19 EBITDA £0.3bn penetration 17% Population Average ARPU Avea EBITDA margin 15.6% ARPU TRY 19 $9,500 262 20% 29% Adj op. profit - Churn 41% GDP/capita Average MoU Op. fr
Slide 22: Our markets: Portugal
Our markets: Portugal Portuguese market Mobile service revenue market share Vodafone in Portugal (FY11/12) Revenue £1.1bn Smartphone 11m €13 EBITDA £0.4bn penetration 24% Population Average ARPU Optimus EBITDA margin 41.8% ARPU €14 $16,600 137 20% 40% Adj op. profit £0.3bn GDP/capita Average MoU Op.
Slide 23: Our markets: Greece
Our markets: Greece Greek market Mobile service revenue market share Vodafone in Greece (FY11/12) Revenue £0.9bn Smartphone 11m €15 EBITDA £0.2bn penetration 17% Population Average ARPU Wind EBITDA margin 23.1% ARPU €15 $20,300 221 18% 31% Adj op. profit £43m GDP/capita Average MoU Op. free cash flo
Slide 24: Our markets: Romania
Our markets: Romania Romanian market1 Mobile service revenue market share2 Vodafone in Romania (FY11/12) Revenue £0.7bn Smartphone 10% 21m Cosmote EBITDA £0.3bn penetration Population $7,500 21% EBITDA margin 37.3% ARPU €7 GDP/capita Adj op. profit £0.1bn 38% Op. free cash flow £0.2bn 129% Capex £0.
Slide 25: Our markets: other Europe
Our markets: other Europe Albania (FY11/12)1 Czech Republic (FY11/12) 1 Hungary (FY11/12) Ireland (FY11/12) 1 Malta (FY11/12) 2 Population 3.2m Population 10m Population 10m Population 5m Population 0.4m GDP/capita $3,700 GDP/capita $18,300 GDP/capita $12,600 GDP/capita $45,700 GDP/capita $22,100 Mo
Slide 26: Our markets: South Africa (Vodacom)
Our markets: South Africa (Vodacom) South African market Total revenue market share Vodacom South Africa (FY11/12) (top 2 share) Revenue £4.8bn Total minutes 36bn 51m ZAR135 EBITDA £1.8bn ARPU ZAR 134 Population Average ARPU MTN EBITDA margin 37.6% Churn 37% $7,200 101 41% Adj op. profit £1.1bn Base
Slide 27: Our markets: India
Our markets: India Indian market Mobile service revenue market share Vodafone in India (FY11/12) Revenue £4.3bn Total minutes 531bn 1,207m INR146 Aircel Others EBITDA £1.1bn ARPU INR 179 Population Average ARPU TATA 5%5% 21% EBITDA margin 26.3% Churn 78% $1,400 330 Reliance 8% 8% Adj op. profit £60m
Slide 28: Our markets: Egypt
Our markets: Egypt Egyptian market Service revenue market share Vodafone in Egypt (FY11/12) (top 2 share) Revenue £1.3bn Total minutes 79bn 79m EGP25 EBITDA £0.6bn ARPU EGP 25 Population Average ARPU EBITDA margin 43.7% $2,800 182 Mobinil 46% Adj op. profit £0.3bn GDP/capita Average MoU 54% Op. free
Slide 29: Our markets: Australia (joint venture)
Our markets: Australia (joint venture) Australian market Mobile service revenue market share Vodafone in Australia (FY11/12, proportionate) 23m AUD46 3.3m mobile customers Population Average ARPU Prepaid Optus $64,600 268 31% 23% Contract 38% GDP/capita Average MoU 62% 132% AUD0.11 46% Mobile Averag
Slide 30: Our markets: other AMAP
Our markets: other AMAP Fiji (JV) (FY11/12) 1 Ghana (FY11/12) 1 New Zealand (FY11/12) Qatar (FY11/12) 1 Vodacom Int’l (FY11/12) Population 1m Population 24m Population 4m Population 2m Vodacom’s Group’s operations GDP/capita $3,500 GDP/capita $1,300 GDP/capita $36,600 GDP/capita $76,200 outside of S
Slide 31: Our markets: Verizon Wireless (associate)
Our markets: Verizon Wireless (associate) US market Mobile service revenue market share Verizon Wireless in the USA1 (FY 11/12) 313m $51 T-Mobile Revenue £20.2bn Smartphone 47% Population Average ARPU EBITDA £7.7bn penetration 11% EBITDA margin 38.1% (postpaid base) $48,100 945 Sprint 17% 37% Servic
Slide 32: Other investments
Other investments 4.37% indirect investment in Bharti Airtel No operational influence Market leader in Kenya Over 28m subscribers Other investment to the group 14.9m M-Pesa users generating over 15% of total revenue 2,690 base stations Previous interests held Key financials (FY11/12) Sold 44% intere
Slide 33: Partner markets
Partner markets The Group has partnership agreements with local mobile operators in over 40 countries extending our reach beyond our equity investments by enabling a range of our products and services to be marketed in partnership territories These partnerships create additional revenue through fees
Slide 34: Glossary of terms and References
Glossary of terms Please visit our website for a glossary of terms used in this presentation, http://www.vodafone.com/content/index/investors/glossary.html References All data correct as of 31 March 2012 unless otherwise stated All market share figures are internal estimates as of 31 March 2012 Mark
Slide 35: 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 Group’s financial condition, results of operations and businesses and certain of the Group’s plans and objectives. In p