Telefonica Sa · BME:TEF
Telefonica Sa — XX Santander Global Banking & Markets TMT Conference (June 2013)
15 slides from Telefonica Sa's conference presentation, Jun 19, 2013
Slide 1: On a transformation journey
“On a transformation journey” Eva Castillo CEO Telefonica Europe Madrid, 19th June 2013 XX Santander Global Banking & Markets TMT Conference 1
Slide 2: The world has changed …
The world has changed … 1990s 2012s Long ago people danced at concerts, ….now they video, click, share, chat, tweet 2
Slide 3: Telefonica enjoys a remarkable scale and positioning in Europe
… Telefonica enjoys a remarkable scale and positioning in Europe to lead this change… Total accesses 103 mill Fixed Mobile Broadband 70 26 mill mill 3
Slide 4: Transformation: the key lever to build a more sustainable model
Transformation: the key lever to build a more sustainable model Transformation of our commercial model • Renewed commercial offer across footprint • Bold commercial decisions: no subsidies • Data monetisation • Simplicity, transparency Transformation of the operational model • Efficiency and cost di
Slide 5: Spain: a leading example of this transformation
Spain: a leading example of this transformation Our transformation journey started in 2011… Launch of a new fixed and mobile tariff portfolio in H2 11 to 1 improve competitiveness and market positioning • ARPU • Churn 2 Redefinition of commercial model: removal of subsidies in acquisition from Q2 12
Slide 6: Competitiveness recovered to capture market share
Competitiveness recovered to capture market share Reshaped market trends Competitors’ Price From… offer premium • Price premium significantly reduced to a competitive level 2 Play FBB offer € 39.9/month € 19.9/month 100% ADSL ADSL Premium based on quality of service • Value for money …To…Convergenc
Slide 7: Movistar Fusión, the key lever behind our commercial turnaround
Movistar Fusión, the key lever behind our commercial turnaround Fusión maintains strong market momentum Movistar Fusión % New customers/Gross adds • 2 million Fusión customers (May 13) • Customer mix improving: higher percentage of new 47% 53% 30% and upselling customers • Better customer satisfacti
Slide 8: Renewed commercial offer in April to reinforce mobile competitive position
Renewed commercial offer in April to reinforce mobile competitive position A complete offer in the convergent and only mobile space Movistar Cero Launched Fusión Cero Launched 1st Apr 25th Apr Convergent Only mobile space space Movistar Total Attacking low-end convergent market To better address mob
Slide 9: Continued efforts to deeper transform our operating model
Continued efforts to deeper transform our operating model Transformation allowing us to better manage tough macro and competitive environment • Ongoing benefits from 2012 cost cutting initiatives: • Further efficiencies to come in 2013 on deeper Commercial savings from no-subsidies model transforma
Slide 10: This transformation journey is driving to business stabilisation
This transformation journey is driving to business stabilisation Revenues ex-handset sales (y-o-y) Revenue ex-handset sales stabilises its y-o-y trend in Q1 13 Q3 12 Q4 12 Q1 13 • Focus on fixed + mobile revenues due to Fusión impact • Mobile handset sales -67% y-o-y (subsidies removal in Mar-12) (1
Slide 11: T. UK: started 2013 with a strong set of results
T. UK: started 2013 with a strong set of results Sustained commercial momentum Sustained performance in contract net adds (‘000) • Mobile base up 3%, with contract mix at 53% despite aggressive competition 282 251 206 Strong traction in the contract segment Record low contract churn at 0.95% • Sma
Slide 12: Involved in business' transformation: launch of O2 Refresh
Involved in business’ transformation Launch of O2 Refresh to reinforce commercial momentum • Customer-innovative offer based on a simple, transparent and flexible all-in proposition • The first to decouple handset and airtime costs • Maintained data centric strategy with no handset subsidy Choose fr
Slide 13: T. Germany: solid progress in mobile data in a competitive but rational market
T. Germany: solid progress in mobile data in a competitive but rational market Delivering on clear strategic priorities Mobile business in Q1 13 • Focus on high value customers y-o-y performance Contract growth with mix improvement (53%, +2 p.p) Accelerating smartphone penetration 28% (+7 p.p. y-o
Slide 14: Main take-aways
Main take-aways The world is changing and T.Europe has the assets to lead this technological change We have changed our mind-set across countries to think in Europe-global level, with an open-mind and flexible attitude We have strengthen our position in the market by changing the rules of the
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