Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Day (July 2012)
55 slides from Telefonica Sa's investor day presentation, Jul 5, 2012
Slide 1: Disclaimer
Disclaimer This presentation contains statements that constitute forward-looking statements about the Company, within the general meaning of the term and within the meaning of applicable securities laws, including financial projections and estimates and their underlying assumptions, statements regar
Slide 2: Jose Perdomo: Leading OBs, product differentiation beyond connectivity
2 MR. JOSE PERDOMO Leading OBs Product differentiation beyond connectivity Market strength—Consumer Points of difference ????2015 Revenue target* €Bn 0.3-0.6 Market strength – Corporate / ?Government ?Service provisioning capability —A must have, not a nice to have for our society *According to guid
Slide 3: Telefónica Digital's eHealth
Telefónica Digital’s eHealth The case of Remote Patient Management (Chronics – RPM) Delivering peace of mind for your loved ones (Mobile Telecare) LATAM – The emerging big prize 1 2 3
Slide 4: Remote patient management – an essential transformation in healthcare
4 Remote patient management – an essential transformation in healthcare Unsustainable healthcare … … but a new way is possible ?Spend outpacing GDP growth by about 2 p.p./year driven by aging population with chronic conditions ?Chronic conditions represent: • 70-80% of costs, 2/3 of spending growth,
Slide 5: Remote healthcare – a fundamental need for the sector
5 Remote Healthcare – a fundamental need for the sector Source: http://www.telegraph.co.uk 1 Remote healthcare for three million patients http://www.3millionlives.co.uk/ “We’ve trialled it, it’s been a huge success – it works” “The aim – to improve three million lives over the next five years” “It’s
Slide 6: Our proposition – an e2e service, truly patient centered
6 Our proposition—an e2e service, truly patient centered Multichannel Comms. Logistics/ Operations/ I+M Technical Support Content Management & BI Biometrics & Clinical Management * Approx. 30-50% of total cost of care SOURCE: Kaiser Permanente Pyramid model of care 100-200 €/ month 30-50 €/ month <1
Slide 7: Remote healthcare – building credibility
7 Remote Healthcare – building credibility Source: “El mundo”. Luis Rosado (Valencia Health GM) – 5 million population region “… a multinational telecommunications company will be contracted to develop the chronic care plan” About 5% chronic patients consume around 3.000 M€ of the 6.000m€ total budg
Slide 8: NHS and Spanish health agencies: building presence and pipeline
8 NHS Lothian ?300k chronic patients; 15-30k mid/high risk* ?Trial for 300 COPD3 and CHF ?Potentially growing to 10k in 2013 North Somerset ?Trial service with 100 COPD ?1,000 connections potentially by end of 2013 ?NHS: Airedale, Rotherham, Camden and Islington ?Lloyds Healthcare Services UK We wil
Slide 9: A substantial market opportunity for mobile telecare
9 5% covered by system* 20% not covered* B2B2C via local authorities / private institutions B2C Launch first in September in UK A substantial market opportunity for the mobile telecare service • Home/elderly care homes • 2.5 million users already in SP & UK with fixed telecare services (20 €/ month
Slide 10: Mobile Telecare – Help@Hand launched in the UK
10 Carers Platform Devices Mobile Telecare—Help @ Hand already launched in the UK (for B2B)… Mobile Emergency services Web & Mobile Price per user: 120-299 £ set-up, including device 20 £/month service fee Users • First client – Leeds County Council • 19 Health Organisations in “Try and Buy” • Pipel
Slide 11: Launching in September for B2C as mobile personal alarm
11 … and launching in September for B2C—positioned as mobile personal alarm support 2
Slide 12: LATAM – a market with unique potential
LATAM—a market with a unique potential 3 Large out-of-pocket market (€32 Bn in Brazil*) Greenfield in many areas – e.g. Telecare services Large and growing private-payer insurance sector (25% of pops, >€1,100/person growing at 20% YoY)* A public sector which can do things completely differently *Sou
Slide 13: Capturing the LATAM opportunity (e.g. Brazil)
13 We are now moving forward to capture the LATAM opportunity (e.g. Brazil) ?2 services launched in Q1 ?360k users in just three months (€4 M recurring annual revenue) ?Incremental 5-10% ARPU approx. ?9/10 for satisfaction and recommendation ?30,000 remotely managed patients ?Double digit growth 1 D
Slide 14: eHealth – the global picture
14 eHealth – the global picture Available/ leading OB Being deployed Planned Services Remote Patient Management Telecare Health IT eHealth B2C ?RPM for Chronic patients ?”Help@Hand” ?Health CRM/ Emergencies ?Telecare ?Digital Imaging ?Mobile productivity ?”Digital” Hospital ?Telehealth ?????????????
Slide 15: Patient testimonials and satisfaction indicators
15 “ I won’t give it back… It changes the whole concept of my life… “ “It’s a great peace of mind… When I check the device, all the vital signs and so… and everything is perfect…” “I feel much more confident knowing that someone is keeping an eye on my health every day. I think it’s great.” We can t
Slide 16: In summary…
16 In summary… ?A clear demand, a clear need, with growing evidence and institutional support, … ?… a new category – “truly changing people?s lives” ?Uniquely positioned, building credibility and market presence, ahead of competition ?Ready to materialize for when the market takes off – still some u
Slide 17: Roberto de la Piazza: Leading OBs, product differentiation
17 MR. ROBERTO DE LA PIAZZA Leading OBs Product differentiation beyond connectivity Market strength—Consumer Points of difference ????2015 Revenue target* €Bn 1.2-1.5 ?Distribution network ?Service provisioning capability —Selling content to the customer base ?Global Network *According to guidance c
Slide 18: Content is a killer app in the digital space
18 Content is a killer app in the digital space Broadband penetration and speed growth boost video consumption 7Bn connected devices worldwide in 2015, able to stream video* >80% of internet traffic will be video by 2015* 80% of people use their tablet while watching TV** There is a rising expectati
Slide 19: Our strategy to develop a different value proposition
19 Our strategy to develop a different value proposition CONNECTIVITY FUNCTIONALITY CONTENT Strong Channel Support ?Fiber/LTE Investment ?IPTV/OTT/DTH development ?CDN guarantees quality ?Integrated with Operator Billing and CRM tools ?Multi device offering ?Linear, on demand and interactive service
Slide 20: Best distribution assets across the value chain
20 Linear TV Hybrid TV OTT We believe we have the best distribution assets for capturing the opportunity through the entire value chain ?Fiber/LTE Investment ?IPTV/DTH development ?CDN guarantees quality
Slide 21: Linear TV – strong position, but we want to pick up the pace
21 Linear TV – strong position, but we want to pick up the pace 675k 50k 400k 825k 125k 250k Colombia Venezuela Peru Chile Brazil 75k 135k 800k Germany Czech Spain ?Latin America – keeping the growth pace as medium class segment is growing fast ?Brazil- the market with largest potential ?Selective o
Slide 22: Building a power position in hybrid / pure OTT video
22 And we have started to build a power position in the hybrid / pure OTT video market ?Extending video services to the mass market ?Complementing traditional pay TV offers with multiscreen and VoD capabilities ?New entrants are trying to gain traction so strong track record is expected in the secto
Slide 23: Best content assets across the value chain
Acquisition Production OTT ?Global content negotiation unit ?Package across multiple devices We believe we have the best content assets for capturing the opportunity through the entire value chain UCC Global Content Unit ?Selective ‘Exclusive’ production capability
Slide 24: Terra – a potential powerhouse
Revenues (millions of euros) Terra – A potential powerhouse 104 70 90 285 303 Audience (millions of unique visitors) Terra is investing in product and geography to maintain its lead in the digital media environment Source: comScore May 2012 2010 2011 MAY 2012 2010 2011
Slide 25: Reshaping digital content consumption
Reshaping digital content consumption FREEMIUM – UNIQUE OFFERING >300,000 FREE USERS ~ 100,000 SUBSCRIBERS LEADERSHIP IN LATAM FREEMIUM 2.25 >350,000 SUBSCRIBERS LEADERSHIP IN LATAM 7,000 LIVE EVENTS / MONTH 200 LIVE CONCERTS / YEAR ORIGINAL PROGRAMMING RIGHTS ACQUISITION MUSIC EEMIUM 5 MILLION EYEB
Slide 26: Content distribution conclusions
26 Content distribution conclusions ?Estimated growth of 15% in 2010-2012 in TV/Video market ?We have upsides in Brazil by participating in market expansion ?We also have upsides in Spain by expanding market footprint ?We have already started to build a strong position in OTT video services market ?
Slide 27: Vivek Dev: Cloud and Security
27 MR. VIVEK DEV Leading OBs Market strength—Consumer Points of difference ??2015 Revenue target Cloud +Security* €Bn 0.5-0.7 ???Service provisioning capability —The hidden opportunity in the new connected world Market strength – Corporate *According to guidance criteria
Slide 28: The hidden opportunity for Telefónica
28 The hidden opportunity for Telefónica The hidden opportunity in the new connected world Global Trends Customer’s view • Professionalization & globalization of threats • Growing complexity – “perimeters” disappearing • Consumerization and mobilization • Social networking threats, child safety/ pri
Slide 29: Making security simple for our customers
Electronic Security (ES) Mobile Security (MS) Information Security (IS) ?Protection of business assets and end user safety Consumers & SMBs Enterprises & Public Sector ?Consulting and management of security needs ?Secure mobile device management ?Protection of what matters most ?Secured mobile exper
Slide 30: Sustained growth capturing new categories
Sustained growth capturing new categories 243 2011 102 60 79 Electronic Security (ES) Consumers and SMBs IS Enterprise Information Security (IS) Consumers and SMBs ES Enterprise Mobile Security <1 2 Telefónica Digital Revenues (€ M) + Social/ Child protection over our broadband base New telco-based
Slide 31: Information Security
31 Mass Information Security IS Enterprise Available in: Embracing online security EUROPE LATAM ?Managed security services ?3 Global Security Operation Centres (SOCs) ?Network & Cloud based services ?Market leader in Spain and Peru Device Network Cloud Child safety Digital experience protection Pers
Slide 32: Electronic Security
Available in: EUROPE LATAM Mass Electronic Security ES Enterprise ~ €30/month camera included ?Critical infrastructures ?City/civilian security, fleets, … ?Signal jamming ?Emergency services (e.g. 911/112) Next in: Compelling propositions in the Electronic Security space
Slide 33: Mobile Security
Available in: Consumer Mobile Security Secure Mobile Device Management Next in: Significant growth potential in the mobile security category users June-11 Today 20,500 675,000 Just launched in: Next in: Device theft or loss Compliance & Network Security Network Access Control Data leak prevention Ce
Slide 34: In summary…
34 In summary… ?Security is a high growth opportunity for us ?We are already leading established categories which will keep on growing significantly ?We are very well positioned to capture the new opportunities the digital world is creating
Slide 35: Stephen Shurrock: New Communication Services
MR. STEPHEN SHURROCK 35 NEW COMMUNICATION SERVICES
Slide 36: The communications market is constantly changing and evolving
36 The communications market is constantly changing and evolving ?OTT Comms have experienced significant growth . ?… though the market is fragmented with no established leader ?Clear that customers want to communicate in many different ways App to App & Call in-out App to App & Call out App to App M
Slide 37: Strategy to compete in the OTT market
37 We have developed our strategy to compete in the OTT market and strengthen our relationship with our customers Source: Current Analysis Timeline Acquisition of Jajah Digital Creation of Telefónica Digital Comms strategy developed Launch of TU and first product Nov, 2011 – delivered Sept, 2011—del
Slide 38: A clear vision about our product strategy
38 A clear vision about our product strategy ?To create truly useful products that people will engage with consistently ?This is done around 3 basic tenets: 1. Entering the pure Over the Top market with category defining services 2. Creating a new communications market that merges the best of Telco
Slide 39: TU Me – first global OTT product
39 TU Me is the first global OTT product launched by TEF Digital, with encouraging initial results The app that lets me text, talk and share with my friends. All for free. Developed in 100 days by TEF Digital teams in Israel and Spain, built on the TU Core Platform, with beta launch on iOS in May 20
Slide 40: TU Me commercial proposition
40 TU Me commercial proposition ?A way of competing against the new OTT players that will enable Telefónica to maintain and strengthen the relationship with its current customers … ?… and providing Telefónica a world-wide footprint Many options to monetize TU Me Break-out calling Roaming Video calli
Slide 41: TU Go creates a new category – Over The Telco
41 TU Go creates a new category – “Over The Telco” Taking the best of the web and integrating it to the best of traditional Telco Now your phone is an app and a service… …the service is available everywhere Always in sync in the Cloud
Slide 42: Telefonica
2 Telefonica
Slide 43: TU Go commercialization through the OBs
43 TU Go commercialization will be through the OBs Now call from any device using your TU go Mibile.pc.laptop. tablet
Slide 44: TU Core ecosystem
44 TU Core ecosystem will allow us to develop new business within Telefónica, with other Telcos and partners ?The TU Core ecosystem is at the heart of Telefónica Digital’s goal to create capability ?Enabling anyone to create their own voice-driven applications ?Operating businesses already develop t
Slide 45: New communication services conclusions
45 New communication services conclusions ?Innovating in core communications for first time in 15 years by a major telco ?Bringing together core capability and assets with the best of the web ?Strategy to create comms products that our customers will engage with consistently and that strengthen thei
Slide 46: Carlos Domingo: Firefox OS
46 MR. CARLOS DOMINGO FIREFOX OS
Slide 47: Mobile: proprietary apps vs the Web
47 In mobile, people use proprietary apps rather than the Web with two companies capturing a very large portion of the market Source: Gartner, Feb 2012 Android + iOS 74.7% of the smarpthone OS Market 50,9% Android 23,8% 11,7% 8,8% 4,8% iOS Symbian RIM Others Proprietary apps vs mobile Web
Slide 48: Issues to address for the mobile Web to be a reality
48 For the mobile Web to be a reality, a number of issues need to be addressed Web Apps Discovery Mechanism Web Apps Monetization Mechanism Mobile Web Standards Mobile Browser Performance Cross Platform Support
Slide 49: HTML5 is a major step towards the Web as 3rd mobile ecosystem
49 HTML5 is a major step towards making the Web the 3rd mobile ecosystem Providing a common framework for development of universal web pages and applications across desktop and mobile Apps will be portable across devices HTML5 mitigates fragmentations issues and is truly cross platform for mobile, d
Slide 50: Partnered to make HTML5 reach its full potential: Open Web Devices
50 We have partnered with a company that has the right experience to make HTML5 reach its full potential And created what we call Open Web Devices Enable a mobile browser to access all devices capabilities extending HTML5 standard to achieve this Improve mobile Web performance via a lighter OS and f
Slide 51: Building a new ecosystem that creates value for all players
51 We are building a new ecosystem, which creates value for all the players who are part of it OPEN WEB DEVICES Developers Reduce development cost: “Do it once and run everywhere” Easy way to monetize through operator billing Users Better functionality and user experience at same price Open Web acce
Slide 52: Telefonica
7 Telefonica
Slide 53: Addressing cost driven customers following disruptive innovation
Initially, we are going to address cost driven customers following the disruptive innovation model Better User Experience for the same price Avoid going head to head initially with than alternative smartphone OS smartphone incumbents on the high end Bringing an affordable smartphone for the masses w
Slide 54: Telefonica
54 Telefonica
Slide 55: Beneficial impact for Telefónica
55 All of this will have a beneficial impact for Telefónica Why is important for Telefónica that a open Web based ecosystem emerges and what advantages OWD have? ?A more balance and open mobile ecosystem ?Eliminate developer fragmentation ?Better smartphone user experience at the same price point ?A