Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Day (March 2007)
70 slides from Vodafone Group Public's investor day presentation, Mar 30, 2007
Slide 1: Vodafone Group Plc Analyst and Investor Day
Vodafone Group Plc Analyst and Investor Day 30 March 2007
Slide 2: Disclaimer
Vodafone Group Plc Analyst and Investor Day Arun Sarin, Chief Executive 30 March 2007 Disclaimer The following presentations are being made only to, and are directed at, persons to whom such presentations may lawfully be communicated (“relevant persons”). Any person who is not a relevant person shou
Slide 3: Agenda for the day
Agenda for the day 09:00 Introduction Arun Sarin, Chief Executive 09:15 Europe Region Vittorio Colao, Deputy Chief Executive, CEO Europe 09:40 UK Nick Read, CEO Vodafone UK Emanuele Tournon, CFO Vodafone UK 11:10 Break 11:30 Germany Fritz Joussen, CEO Vodafone Germany Harald Stoeber, CEO Vodafone Ar
Slide 4: Europe region objectives and highlights
Europe region objectives Revenue Cost Total stimulation reduction communication Fixed mobile Network sharing DSL substitution Outsourcing Mobile internet Big bundles Network simplification Advertising Data Supply chain Enterprise Europe is Europe is executing executing against against its its strate
Slide 5: EMAPA region objectives and highlights
EMAPA region objectives Deliver strong Extract additional Portfolio growth value management Accelerate penetration Total communications Consolidate local/regional markets Introduction of best Wireless broadband practice Preference for control Driving regional Manage costs to sustain efficiencies Str
Slide 6: Europe Region
Analyst and Investor Day Europe Region Vittorio Colao, Deputy Chief Executive and CEO Europe 30 March 2007 Contents 1. Europe Region: overview and recent developments 2. Strategy implementation and priorities 3. European landscape FY07/08 10 Analyst and Investor Day – Vodafone Europe 5
Slide 7: Europe Region: a significant contributor to Group
Europe Region: a significant contributor to Group Operating free Revenue (£bn) EBITDA £bn (Margin %) cash flow (£bn) Germany 2.8 1.3 (45%) 1.0 Italy (77%) 2.2 1.1 (52%) 0.9 Spain 2.3 0.8 (36%) 0.4 UK 2.5 0.8 (31%) 0.4 Greece 0.6 0.2 (39%) 0.2 Netherlands 0.6 0.2 (29%) 0.1 Portugal 0.5 0.2 (36%) 0.1
Slide 8: 33% market share of mobile; 18% of total telecoms
33% market share of mobile; 18% of total telecoms Mobile market Total Telecoms market (% ) (%) Germany 36 Germany 19 Italy 34 Italy 19 UK 28 UK 17 Spain 35 Spain 19 Greece 39 Greece 22 Ireland 50 Ireland 26 Portugal 39 Portugal 23 Netherlands 25 Netherlands 12 Albania 52 Albania 40 Malta 61 Malta 27
Slide 9: Commercial policies for revenue and profit leadership
Commercial policies for revenue and profit leadership Commercial goals Commercial policies 1. Focus on business / higher value consumers Outperform in revenue 2. Push on exclusive / direct channels market share versus 3. Strong focus on roaming customers reference competitors 4. Investment in mobile
Slide 10: Clarified and simplified structure and accountabilities
Clarified and simplified structure and accountabilities ... Network Purchasing Marketing IT CRM Sales Group Centrally-driven scale and competence benefits Service delivery, customer and channel management Operating Companies 17 Analyst and Investor Day – Vodafone Europe ... leading to new significan
Slide 11: Strategy announced on 30 May 2006 is being executed
Strategy announced on 30 May 2006 is being executed 1. Revenue stimulation 9 Customer value-focus: 9 Roaming: Voice: over 10m opted-in Vodafone Family bundles and best friends tariffs Passport customers in Europe Data: new data “flat” propositions Voice bolt-ons, e.g. free weekends, (July 20
Slide 12: Mobile Plus strategy execution
Strategy announced on 30 May 2006 is being executed 3. Mobile Plus strategy 9 Fixed mobile substitution - zonal pricing: 9 DSL: Over 2.7m Vodafone At Home customers Started Vodafone Germany / Arcor Over 2m Vodafone Office customers two-way cross-sell Launched Vodafone UK with BT 9 Mobile dat
Slide 13: Driving long-term operating cash flow generation
Driving overall long-term operating cash flow generation Europe indexed (%) for H1 FY06/07 Programmes New Vodafone Global Revenues 100 Value pricing FMS (Cons & Bus) Enterprise unit Roaming 7 Vodafone Passport (voice) Data roaming tariff Data 5 Mobile data programmes Mobile Internet enablement Inter
Slide 14: Vodafone UK
Analyst and Investor Day Vodafone UK Nick Read, Chief Executive Officer 30 March 2007 13
Slide 15: My key messages for you
My key messages for you Vodafone UK has shifted to a growth strategy Attacking existing and new revenue / profit streams From a strong platform Rapidly transforming the business 27 Analyst and Investor Day – Vodafone UK Contents 1. UK mobile market 2. Strong platform for growth 3. Vodafone UK’s stra
Slide 16: UK mobile market
UK mobile market Service revenue share Relative EBITDA share (% ) (% ) 100 100 18% 17% 18% 14% 80 80 25% 27% 26% 28% 60 60 26% 24% 27% 21% 40 40 20 20 35% 31% 30% 33% 0 0 12 m to Sep-04 12 m to Sep-06 12 m to Sep-04 12 m to Sep-06 Vodafone O2 Orange T-Mobile Vodafone has Vodafone has rebranded rebra
Slide 17: Strategy focused on EBITDA margin; regulatory environment
Our strategy was focused on EBITDA margin Share of EBITDA Vodafone service revenue growth (% ) YoY growth (% ) 40 16 33 34 33 35 14 30 12 10 25 8 20 6 15 4 10 2 5 0 0 (2) FY04/05 FY05/06 H1 FY06/07 Mar-04 Mar-05 Mar-06 Vodafone O2 Orange T-Mobile We sustained We sustained our our profitability profi
Slide 18: Strong platform for growth
Contents 1. UK mobile market 2. Strong platform for growth 3. Vodafone UK’s strategy: “Winning In The Market” 33 Analyst and Investor Day – Vodafone UK Strong platform for growth Distribution Together: a unique combination in the UK Service model Enterprise position Unrivalled strength in the market
Slide 19: Vodafone UK by customer segment; strength in distribution
Vodafone UK by customer segment 9 months to Dec-06 (% ) 100 23% 28% 80 53% 60 43% 34% 40 24% 20 38% 34% 23% 0 1 Customers Revenue Profit contribution Enterprise Consumer contract Consumer prepaid Our strategy Our strategy is is driven driven by by the the value value of of different different segmen
Slide 20: Tiered service model; enterprise market
Tiered service model aligned to customer needs Consumer model Enterprise model Ultra High Value Customers (UHVC) SoHo / Small Premier service team, no IVR1 Named telephone account manager High Value Customers (HVC) SME / Corporates Priority access to dedicated advisors Field-based account manager Co
Slide 21: Network with RAN sharing; Group leverage
The fastest and most reliable mobile data network… RAN1 sharing In scope Out of scope Benefits of RAN sharing… Region A Base Radio Products & Station Controller Services • 20-30% annual RAN cash saving anticipated in longer term2 Vodafone Core Network • One third reduction in combined sites2 Region
Slide 22: Opportunities in adjacent markets
Contents 1. UK mobile market 2. Strong platform for growth 3. Vodafone UK’s strategy: “Winning In The Market” 41 Analyst and Investor Day – Vodafone UK Opportunities in adjacent markets Consumer Enterprise Addressable Addressable consumer enterprise Fixed and market market broadband £12bn £12bn Mobi
Slide 23: Winning in the market strategy
Winning in the market strategy Group objectives: • Drive greater voice usage and product penetration • Revenue • Develop data services and grow penetration stimulation Enterprise • Mobile Plus strategy for integrated communication • Innovate and services deliver on our customers’ total • Liberating
Slide 24: Enterprise: mobile data and integrated communication services
Enterprise: transforming the mobile data market Delivering product innovation in the mobile data market • First network with 3G broadband (HSDPA) The best – Significant increase in customer usage network for data – Almost 100% Vodafone Mobile Connect data cards being sold are HSDPA enabled • USB mod
Slide 25: Consumer: drive usage and build platform for growth
Consumer: Drive usage & product penetration Minutes of use per customer Driving adoption and use Outbound MOU (mins) 130 Family • Strong customer appeal Pre-pay refresh – 2.2m customers opted in to Free 120 Weekends – 9pt increase in satisfaction Contract refresh 110 Free weekends • Liberating usage
Slide 26: Consumer mobile internet; total communications
Consumer: define the standard for mobile internet Strategy Mobilise the ‘fixed’ internet kylie Available to all Personalised and easy to use Try These Music Priced to liberate usage Personal Finance Travel More Customise this page Best partners Select Back 49 Analyst and Investor Day – Vodafone UK T
Slide 27: MVNOs; efficiency transformation
MVNOs: growing market share Maximising the opportunity … … by selecting the right deals • Current market worth £1bn of which we have an 8% share • Second major deal is ASDA – Launch expected in first half FY07/08 – ASDA has 12m customers per average week Complementing our Complementing our wider wid
Slide 28: Our strategy is delivering
Our strategy is delivering Underlying service revenue growth Growth YoY (% ) 6% 4.8% 4% 2% 0% Q4 FY05/06 Q1 FY06/07 Q2 FY06/07 Q3 FY06/07 Jan/Feb 07 Our strengths Our strengths have have positioned positioned us us to to execute execute our our strategy, strategy, with with impact impact 53 Analyst
Slide 29: Vodafone UK: Chief Financial Officer
Analyst and Investor Day Vodafone UK Emanuele Tournon, Chief Financial Officer 30 March 2007 Contents 1. Revenue growth: trend and drivers 2. Profitability and EBITDA margin trend 3. Cost management and capital efficiency 4. Summary 56 Analyst and Investor Day – Vodafone UK 28
Slide 30: Revenue growth reinvigorated
Revenue growth reinvigorated Quarterly underlying trend1 Growth YoY (% ) 8% 6% 4.8% 4% 3.3% 2% 0% (2)% (4)% (6)% Q3 FY05/06 Q4 FY05/06 Q1 FY06/07 Q2 FY06/07 Q3 FY06/07 Jan/Feb 07 Underlying ARPU Average customers Underlying service revenue Revenue growth accelerating through FY06/07 Notes: 1Excludin
Slide 31: Voice, messaging and data revenue trends
Voice revenue trends Outgoing voice revenue Outgoing usage and revenue per minute (£m) Growth YoY (% ) -2.5% YoY 2,000 40 28% -275 229 30 1,500 20% 20 12% 9% 10 6% 1,000 1,838 1,792 0 (10) 500 (9)% (9)% (13)% (20) (17)% (20)% 0 (30) Dec YTD Impact of Impact of Dec YTD 12m Q1 Q2 Q3 Jan/Feb FY05/06 re
Slide 32: Consumer contract and business data growth
Consumer contract – “your price plan” Contract net additions Acquisition and migrations ARPU Volume (000s) Indexed 90 125 +15% 75 100 60 -9% 45 75 66 115 30 50 100 100 91 15 25 0 (9) (15) 0 1 1 1 1 2 2 3 months 3 months 3 months 3 months Pre- Post- pre-launch post-launch pre-launch post-launch migra
Slide 33: UK market EBITDA trend
Contents 1. Revenue growth: trend and drivers 2. Profitability and EBITDA margin trend 3. Cost management and capital efficiency 4. Summary 63 Analyst and Investor Day – Vodafone UK UK market EBITDA trend Share of EBITDA EBITDA margin (% ) (% ) 40 35 33 34 33 35 4% 30 3% 30 25 7% 20 15 25 10 5 0 20
Slide 34: New tariffs rebalance price premium; investing in growth
New tariffs rebalance price premium and … Consumer rebalancing price premium1 Acquisition volumes2 Indexed Increase in gross adds YoY (000s) 218 160 250 62 Historical Unsustainable Sustainable (1) price price price 0 premium premium premium 120 (250) (145) H1 FY06/07 Q3 FY06/07 Contract Prepaid 80 O
Slide 35: Cost management to reinvest in growth
Contents 1. Revenue growth: trend and drivers 2. Profitability and EBITDA margin trend 3. Cost management and capital efficiency 4. Summary 67 Analyst and Investor Day – Vodafone UK Cost management to reinvest in growth % of total Main components costs2 • Net acquisition costs Investment in customer
Slide 36: Investment in customers; retention costs
Investment in customers Customer costs % of service revenue Contract SAC (% ) (£) 200 +13.1% 20 27 17.8% 167 162 16.7% 100 1.7% 0 15 9.0% Dec YTD FY05/06 Dec YTD FY06/07 SAC/gross add OGC/gross add 8.3% 10 Customer quality 5 (%) 8.8% 75 6.7% 50 25 52% 62% 0 39% 35% Dec YTD FY05/06 Dec YTD FY06/07 0
Slide 37: Interconnect costs; efficient cost management
Interconnect costs Total outgoing voice minutes Voice interconnect costs Mins (bn) (£m) 18 400 15.1 366 15 +12.4% 13.4 350 17.8% 12 310 62.8% 64.7% 9 300 6 250 3 37.2% 35.3% 0 200 Dec YTD FY05/06 Dec YTD FY06/07 Dec YTD FY05/06 Dec YTD FY06/07 On-net Off-net Big bundles are driving off-net volume an
Slide 38: Cost efficiency initiatives; capex and cashflow
Cost efficiency initiatives Ongoing/In flight To come Access transmission AD&M Network sharing • Substitute leased lines with own • Outsource to EDS of application • Combined 2G & 3G RAN1 microwave links development and maintenance activities • Combined sites reduced by Annual savings of 50% a third
Slide 39: Summary and Q&A
Summary Revenue growth momentum Margin impact partially mitigated by cost management and capital efficiency Delivering sustainable and profitable growth 75 Analyst and Investor Day – Vodafone UK Analyst & Investor Day 30 March 2007 Question and Answer Session Vodafone UK Nick Read, CEO Emanuele Tour
Slide 40: Vodafone Germany
Analyst and Investor Day Vodafone Germany Fritz Joussen, Chief Executive Officer 30 March 2007 39
Slide 41: Germany – country overview
Contents 1. Market overview 2. Strategic review 3. Summary 79 Analyst and Investor Day – Vodafone Germany Germany – country overview German GDP – sector analysis Outgoing mobile minutes per annum (€bn) (Bn) 2,400 60 2,300 + 87% Mobile 50 + 18% Communication 2,200 other 40 2,100 30 + 16% GDP other 2,
Slide 42: Competitive environment has intensified; regulation
Competitive environment has intensified Price competition driven by branded resellers and established operators Vodafone average Branded outgoing price reseller per minute pricing MNO pricing (€) Headline price 0.28 reduction prepaid 0.26 > 70% Clever One Max and €27c 0.24 Relax tariffs 0.22 0.20 0.
Slide 43: Vodafone Germany – key performance indicators
Contents 1. Market overview 2. Strategic review 3. Summary 83 Analyst and Investor Day – Vodafone Germany Vodafone Germany – key performance indicators Growth Q3 YoY Service revenue (€m) Dec YTD 2,200 -3.4% YoY • Average price per -25% 2,000 minute: 1,800 1,600 • Closing customer base: +5% Q1 Q2 Q3
Slide 44: Vodafone No.1 in German mobile market; key strengths
Vodafone No.1 in German mobile market EBITDA market EBITDA market share share well well above above customer customer market market share share 37% 36% 35% 41% 30% 36% 37% 39% 18% 13% 14% 11% O2 14% 13% 17% 9% Revenue Customers Minutes EBITDA Source: Company and external data; September 2006 85 Anal
Slide 45: Commercial strategy; core business – contract
Commercial strategy Defend core Defend core business business • Stimulate usage • Increase recurring revenues • Retain customers Cost reduction Cost reduction • Reducing unit costs • Ability to match every competitor on pricing Drive growth Drive growth • Fixed to mobile substitution • Data revenue
Slide 46: Core business – recent developments
Core business – recent developments KombiPakete SuperFlat Packages 60 120 240 480 1,200 SuperFlat SIMonly Incl. min/month 60min 120 min 240min 480min 1,200 min Package Price/month €34.95 Package Calls to the national fixed line Price/month €24.95 €34.95 €49.95 €69.95 €89.95 network, SMS to Vodafone
Slide 47: Core business – prepaid
Core business – prepaid Protect base and meet competition with a mix of tariffs and promotions • Stimulate usage across 16m prepaid customer base Objective • Drive behaviour change and customer perception • Retain high value customers Customer ongoing revenue 100% 80% 57% 60% 89% CallYa 100% 40% 20%
Slide 48: Prepaid price and minutes; commercial strategy
Core business – prepaid Price per outgoing minute – prepaid Total outgoing minutes – prepaid (€) (m) 0.30 1,800 Q3 FY06/07 Q3 FY06/07 YoY 1,600 YoY 0.25 -37.5% +49.8% 1,400 0.20 1,200 1,000 0.15 800 0.10 600 €9c 400 0.05 200 0.00 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY05/06 FY05/06 FY05/06 FY
Slide 49: Efficient cost management; capital efficiency
Efficient cost management YoY Growth H1 FY06/07 Major cost initiatives (%) Achievements to date 25 22 • Call centre outsourcing • Restructuring regions – 35% of call volume – 450 FTE (reduced) 20 outsourced • Data centre 15 • Own transmission consolidation – €60m opex savings p.a. – 150 FTE (shared)
Slide 50: Commercial strategy; opportunities in fixed line market
Commercial strategy Defend core Defend core business business • Stimulate usage • Increase recurring revenues • Retain customers Cost reduction Cost reduction • Reducing unit costs • Ability to match every competitor on pricing Drive growth Drive growth • Fixed to mobile substitution • Data revenue
Slide 51: Fast development of Vodafone Zuhause
Fast development of Vodafone Zuhause product Number of customers (000’s) 2,500 2,000 1,500 1,000 500 0 Q4 05/06 Q1 06/07 Q2 06/07 Q3 06/07 Option Flatrate Anschluss Other (inc. SuperFlat) At February 2007 • 2.1m voice customers • 114k DSL customers Source: Company data 99 Analyst and Investor Day –
Slide 52: Data revenues are a key growth driver
Data revenues are a key growth driver €650m annualised revenue1 (€m) 180 • Significant revenue contribution from data usage – over 8% of service revenue in Q3 160 +58% • Continued strong growth – over 50% 140 growth YoY Q3 YTD 120 • Based on a high quality 3G network and 100 strong commercial focus
Slide 53: Business connectivity; advertising opportunity
Market leading business connectivity Annualised revenue Annualised €300m11 revenue €300m • 60% market share in Germany2 No. 1 in mobile • Over 540k customers; up 79% YoY2 datacards • Revenue up 103% YoY3 Strong growth • Customer growth +111% YoY2 in HHBD • Revenue growth +128% YoY3 39% market share
Slide 54: Broadband potential; Vodafone and Arcor integration
Broadband – low penetration offers high growth potential Fixed broadband Mobile broadband • Second in the German • No. 1 in the German mobile fixed broadband market broadband market • Large nationwide fixed • Robust network line network – largely infrastructure: independent from DTAG – EDGE in rural
Slide 55: Summary; Arcor
Summary Defend core business Stimulate usage Increase recurring revenues Retain customers Cost reduction Reducing unit costs Ability to match every competitor on pricing Drive growth Fixed to mobile substitution Data revenue Broadband 107 Analyst and Investor Day – Vodafone Germany Analyst and Inves
Slide 56: German fixed line market; broadband access
German fixed line market Total market size 2006 Arcor – No.1 alternative telecoms provider (% ) Revenue (€m) €30bn 2,500 1.8% YoY growth 1,935m 2,000 Arcor 7% 1,500 DTAG 1,000 64% Other 29% 500 0 HanseNet Net Cologne EWE Tel Colt Freenet MCI BT Versatel Arcor FY03/04 FY04/05 FY05/06 Source: Company
Slide 57: Arcor DSL performance; four year track record
Arcor DSL performance Infrastructure players 2006 Net additions 2006 vs. 2005 (% ) DSL lines (000s) Total market 14.3m DSL lines 1,600 1,400 Arcor 1,200 12% 1,000 800 600 DTAG Competitors Alice/AOL 72% 28% 5% 400 Versatel 200 3% 0 Net Cologne 3% DTAG Arcor United Alice/ Others EWEtel 1%, M-Net 1% In
Slide 58: Arcor's own infrastructure; traffic synergies
Arcor’s own infrastructure 60% household coverage Fibre optic connectivity (% ) 2,500 100 2,041 2,000 80 1,761 1,557 1,500 67 60 53 1,000 45 40 500 20 0 0 FY04/05 FY05/06 Dec-06 1 Coverage (2006) MDFs Share of fibre optic (%) Arcor’s coverage Arcor’s coverage is is aa unique unique competitive compe
Slide 59: Arcor contributing to Vodafone's strategic goals
Arcor contributing to Vodafone’s strategic goals Revenue stimulation Revenue stimulation Grow market share and increase penetration Cost reduction Cost reduction Driving scale to improve profitability Headcount efficiency Fibre deployment Integration synergies with Vodafone Germany Deliver on Delive
Slide 60: Customer key performance indicators
Contents 1. Revenue trends 2. Profitability and cost management 3. Arcor financials 4. Summary 117 Analyst and Investor Day – Vodafone Germany Customer key performance indicators Market net additions Customers and service revenue Net adds (m) (€bn) Customers (m) 3.5 6 100 90 3.0 5 80 2.5 70 4 2.0 60
Slide 61: Service revenue development; voice revenue trends
Service revenue development Service revenue growth Service revenue quarterly trend (€m) 4% 3.3% 7,000 6,024 -3.4% 5,818 Low single- 3% digit impact 2.0% 2.0% 6,000 -0.1% unde r lying 1.6% of new grow th 1 2% tariffs in Q3 0.8% 5,000 1% 0.0% 0% 4,000 4,835 4,543 -1% -0.6% -0.6% -0.5% 3,000 -2% Additi
Slide 62: Contract and prepaid revenue trends; new KombiPakete
Contract and prepaid revenue trends Contract Prepaid (Index % ) (Index % ) 200 300 180 250 160 140 200 100 100 100 100 120 109 150 109 100 100 80 100 60 50 40 20 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 FY05/06 FY05/06 FY06/07 FY06/07 FY05/06 FY05/06 FY06/07 FY06/07 Minutes Rev/min Outgoing voice revenue Minutes R
Slide 63: SuperFlat; growth drivers – Vodafone Zuhause
Core business – SuperFlat SuperFlat customers Usage and ARPU development (000s) Minutes1 3% of contract base in 5 +69% months 782 463 Pre SuperFlat with SuperFlat 405 ARPU2 332 -12 % 244 137 81 72 43 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Pre SuperFlat with SuperFlat Defend high Defend high value value
Slide 64: Messaging and data revenue trends
Messaging and data revenue trends Messaging and data revenues Q3 FY06/07 market shares (€m) (%) 500 22.9 25 21.7 21.2 21.6 20.4 19.3 19.5 39% 400 20 91 96 101 115 131 147 159 300 15 200 10 32% 295 304 302 294 282 283 273 100 5 11% 0 0 Q1 Q3 Q1 Q3 18% FY05/06 FY05/06 FY06/07 FY06/07 O2 Data revenue M
Slide 65: Operational excellence leading to high profitability
Contents 1. Revenue trends 2. Profitability and cost management 3. Arcor financials 4. Summary 127 Analyst and Investor Day – Vodafone Germany Operational excellence leading to high profitability Profitability analysis Initiatives (€m) 4,278 -3.4% 4,134 Revenue Revenue 4,500 • Focus on on-net minute
Slide 66: Investment in customers; efficient cost management
Investment in customers Acquisition cost pay-back per SIM1 Value based retention (Months) Churn (% ) ARPU (€) 5.0 25 250 Net acquisition cost per customer2 €158 €23 4.0 20 200 3.0 15 150 2.0 4.2 10 100 3.2 1.0 5 50 0.0 0 0 Contract Prepaid White Red Bronze Silver Gold Platinum Monthly ARPU Churn rat
Slide 67: Capital efficiency; operating free cash flow
Capital efficiency and intensity Capital expenditure Capital efficiency activities (€m) (% ) • 3G network rollout substantially 1,400 17 18 complete in key areas 15 15 16 1,200 • Demand driven network rollout based 14 1,000 on NPV calculation 10 12 800 • Improved project prioritisation 10 600 1,251
Slide 68: Arcor EBITDA margin vs. Vodafone Germany
Contents 1. Revenue trends 2. Profitability and cost management 3. Arcor financials 4. Summary 133 Analyst and Investor Day – Vodafone Germany Arcor EBITDA margin vs. Vodafone Germany Arcor EBITDA margin Arcor vs. Vodafone Germany – H1 FY06/07 (€m) 914 +12.9% 1,033 Revenue Vodafone Vodafone Germany
Slide 69: Summary; forward looking statements
Summary Revenue stimulation Revenue stimulation Outgoing voice minutes growth YoY of 32% in Q3 Data revenue growth of 58% YoY in Q3 Cost reduction Cost reduction Cost improvements primarily through focus on network costs Capex now single digit as % of turnover Innovate and Innovate and deliver deliv
Slide 70: Question and Answer Session – Germany
Analyst & Investor Day 30 March 2007 Question and Answer Session Germany Fritz Joussen, CEO, Vodafone Germany Dr. Volker Ruloff, CFO Vodafone Germany Frank Rosenberger, Chief Marketing Officer, Vodafone Germany Harald Stöber, CEO, Arcor Norbert Westfal, CFO, Arcor 69