Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Presentation (September 2016)
37 slides from Vodafone Group Public's investor presentation, Sep 29, 2016
Slide 1: Vodafone Germany Open Office
Vodafone Germany Open Office 29 September 2016
Slide 2: Disclaimer
Disclaimer Information in this 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 offering of s
Slide 3: Content
Content Introduction • Strategy and Consumer Mobile • Consumer Fixed • Enterprise • Technology 3
Slide 4: Vodafone Germany Open Office
Vodafone Germany Open Office Dr. Hannes Ametsreiter CEO Vodafone Germany
Slide 5: Snapshot Germany
Snapshot Germany Market Mobile Service Fixed Revenue Revenue Share Share1 €13 83m Mobile ARPU 12% 5% 20% Population 30% 33% 76% €18.3bn 10% €18.3bn 137% Smartphone penetration FY 15/16 FY 15/16 Mobile penetration 37% 53% 223 75% Avg. TV MoU per day Fixed broadband penetration Telefonica Vodafone Deu
Slide 6: A leading integrated communications company
A leading integrated communications company Mobile Fixed TV Connections1 (m), Q1 16/17 Broadband customers (m), Q1 16/17 TV Subscribers (m), Q1 16/17 41.9 41.1 43.4 +415k YoY +252k YoY +140k YoY 7.8 12.8 6.4 5.9 4.4 2.82 DSL 2.8 Cable 3.1 Strong position in Fastest growing broadband a 3-player marke
Slide 7: Investments in Project Spring and KDG are paying off
Investments in Project Spring and KDG are paying off Project Spring Kabel Deutschland Drop call rate 0.77% Cost & Capex Synergies 0.57% 0.46% €300m Run-rate in FY 17/18: on track (80% secured Q1 14/15 Q1 15/16 Q1 16/17 end of FY 15/16) 4G population coverage 89% €3.5bn 78% NPV (increased from €3.0bn
Slide 8: Turnaround achieved: with growth since Q4 15/16
Turnaround achieved: with growth since Q4 15/16 Organic growth rate vs. previous year (%) Service Revenue Mobile Service Revenue 2.4 Incl. Kabel Deutschland 0.4 1.6 1.6 1.6 (1.2) 0.3 (0.2) (1.8) (1.8) (0.4) (0.3) (3.5) (3.9) (3.5) (1.5) (1.7) (5.7) (5.4) (2.1) (6.8) (6.6) (2.8) (2.8) (3.2) (8.6) (3.
Slide 9: Strong commercial momentum: across segments
Strong commercial momentum: across segments Service revenue YoY (%) Total Mobile Postpaid Mobile Prepaid Fixed DSL Fixed Cable Revenue Revenue Revenue Revenue 9.5 1 -0.1pp +2.8pp +13.6pp 6.6 6.5 +0.0pp +4.3pp 1.6 (1.7) (1.7) 1.4 (1.2) (5.2) (0.9) (12.2) Q1 15/16 Q1 16/17 Q1 15/16 Q1 16/17 Q1 15/16 Q
Slide 10: The future is digital and connected.
The future is digital and connected. 10
Slide 11: Power to you: Our Vision Gigabit Company
Our Vision: GIGABIT COMPANY “#1 in speed and power” “we empower the digital society” NETWORK AND PRODUCTS BRAND AND CXX EMPLOYEES Superior infrastructure and Strong, emotional brand and More innovative, focused, team convergent products customer orientation oriented: “winning mindset” Power to you 1
Slide 12: Vodafone has a unique Gigabit positioning in the German market
Vodafone has a unique Gigabit positioning in the German market Mobile Gigabit zone 4G 3G Fixed Broadband No Fixed Broadband Copper Technologies Ultra-high speed Technologies (>100 Mbit/s, evolving to 12 >1Gbit/s)
Slide 13: Attractive, profitable growth opportunities in our core business
Attractive, profitable growth opportunities in our core business Consumer Enterprise Value Convergence / Growth in fixed Convergence positioning HH penetration Cloud and More-4-More GigaTV IoT Hosting Unified Base Continuous growth Base Communications Management in broadband Management UCC Based on
Slide 14: Differentiation: Customer eXperience eXcellence / CARE
Differentiation: Customer eXperience eXcellence / CARE Connectivity Always in control Reward loyalty Easy access GIGASPEED GIGATRAVEL Legacy2Red Red Button EXAMPLE 1st operator offering 1st operator offering worry Biggest mobile base loyalty Direct access to agent 4G Max for ALL mobile free roaming
Slide 15: Fit4Growth: driving efficiency to fuel profitable growth
Fit4Growth: driving efficiency to fuel profitable growth Consumer product Digitising Services simplification Enterprise interaction/ Network & IT simplification enhancement Optimising Process cost procurement spend optimisation 15
Slide 16: Summary: back to growth
Summary: back to growth • Positioning as Gigabit Company • Leading position and strong commercial momentum in each market segment • Investments in Project Spring and Kabel Deutschland paying off • Differentiation through CXX • Continued efficiency improvement to fuel growth 16
Slide 17: Strategy & Consumer Mobile
Strategy & Consumer Mobile Dr. Hannes Ametsreiter CEO Vodafone Germany Dr. Andreas Siemen Chief Financial Officer
Slide 18: Clear positioning in challenging market environment
Clear positioning in challenging market environment Competition Regulatory • EU Data roaming • More-for-more moves in premium segment • MTR regulation • Theoretical reduction of MTR rate by 50% • High promotional activity would impact service revenue growth by in no-frills segment 1.5ppt, margin imp
Slide 19: We continue to drive the business back to growth
We continue to drive the business back to growth Postpaid Subscriber Growth Prepaid active base turnaround (m) +350k +8k Active Prepaid base +741k -9.1% -3.0% +1.1% 16.2 16.6 16.6 15.5 FY 2014 FY 2015 FY 2016 Q1 2017 FY 2014 FY 2015 FY 2016 Q1 2017 Customer value through “More-for-More” Excellence i
Slide 20: We cover both ends of the two-tier market
We cover both ends of the two-tier market Continued differentiation Premium • 4G coverage: speed & quality • Convergence offerings • Brand & customer experience €20-30 No frills 20
Slide 21: Consumer Fixed
Consumer Fixed Dr. Manuel Cubero Chief Commercial Officer Florian Landgraf Head of Consumer Fixed Business
Slide 22: Clear positioning in challenging market environment
Clear positioning in challenging market environment Competition Regulatory • Risk of “re-monopolisation” • Continued high promotional with vectoring activities • Increasing demand for high speed Vodafone Positioning • Converged offering nation-wide • Leveraging speed advantage in cable • Enabling fu
Slide 23: Broadband: continuous cable growth & DSL turnaround
Broadband: continuous cable growth & DSL turnaround Growing DSL base (m) Growing cable base (m) +16k +92k 2.950 -128k +392k -17k +450k 2.822 2.805 2.821 15% 3.112 6% 13% 2.628 3.020 2% 2.178 FY 13/14 FY 14/15 FY 15/16 Q1 16/17 FY 13/14 FY 14/15 FY 15/16 Q1 16/17 VDSL share % Convergence offer Unmatc
Slide 24: TV business: penetrating stable base with new services
TV business: penetrating stable base with new services TV direct subscribers (m) Key features 7.3 7.3 7.3 • Continuous increase of Premium TV penetration VOD PAY TV DVR HD 4 PARALLEL RECORDINGS REC • Increasing TV ARPU through incremental product take-up 24% 25% • Re-aligned TV product portfolio in
Slide 25: Fixed Line: growth opportunities
Fixed Line: growth opportunities Leverage Cable advantage Giga TV – a new TV experience Non-Cable footprint • 400 Mbit/s today and we • All content • All Features • Maximize VDSL share keep our powder dry for • All networks • All Screens • GigaTV for DSL base more! • Leverage 4G in DSL white • Docsi
Slide 26: Enterprise
Enterprise Alexander Saul Director Enterprise Business Unit Anna Dimitrova Director Strategy & Digital
Slide 27: Clear positioning in challenging market environment
Clear positioning in challenging market environment Competition International leverage • VGE: unique global positioning • Mainly a two player market with Vodafone Global Enterprise • Pricing pressure continues • Combined mobile/fixed offer from single source becomes standard Vodafone Positioning • O
Slide 28: Vodafone Enterprise Strategy to drive business back to growth
Vodafone Enterprise Strategy to drive business back to growth Market size and share (FY 15/16) Enterprise Strategy: Top Priorities Others Others High potential Strong market for Vodafone position in to grow to fair mobile share Mobile Fixed For illustrative purposes only 28
Slide 29: Enterprise market trends: growth opportunities
Enterprise market trends: growth opportunities Enterprise market trends Vodafone Enterprise solutions IoT reaches mainstream Vodafone IoT… • IoT installed base of 26 billion units1 expected by 2020 …with substantial potential for • Shift from functionality and performance further growth by moving to
Slide 30: Technology
Technology Dr. Eric Kuisch Chief Technology Officer Gerhard Mack Chief Commercial Operations Officer
Slide 31: The Vodafone Network Today | Premium Mobile Network
The Vodafone Network Today | Premium Mobile Network of Germany Fastest modernised 24,400 Vodafone Network of all Base station sites Download Speed increased by 60% Big Cities since Apr. 2014 of all Motorways Lowest >90% of base Dropped Call Rate Drops reduced by 40% LTE population stations with high
Slide 32: The Vodafone Network Today | New Opportunities with our Cable Network
The Vodafone Network Today | New Opportunities with our Cable Network 2 Playout Centres & 3 Data Centres over 400,000 km Fibre- and Coax-Network 26 B-PoPs 151 TV (TPoP) 5m households 323 Docsis (CPoP) 242 VoD (VPoP) Ca. 8.4m with up to 400 Mbps cable speed Connected Homes (12.3m total marketable hou
Slide 33: We are the blueprint for a digital agenda
We are the blueprint for a digital agenda 2 years ago… 100 Mbps 50 Mbps 50 Mbps VDSL Cable LTE 33
Slide 34: We are the blueprint for a digital agenda
We are the blueprint for a digital agenda Today… 400 Mbps Technology-Mix of the future 375 Mbps already today… 225 Mbps 100 Mbps 50 Mbps 4,5G Vectoring Cable LTE 34
Slide 35: We are on our way to the Gigabit-Society
We are on our way to 1 Gbps 1 Gbps the Gigabit-Society Cable and 5G as leading technologies to exceed the 400 Mbps increasing demands of our 375 Mbps customers… 250 Mbps 100 Mbps 5G Vectoring Cable LTE 35
Slide 36: Ensure Gigabit-Readiness | Network Innovation & Product Roadmap
Ensure Gigabit-Readiness | Network Innovation & Product Roadmap Spectrum Utilisation Competitive Spectrum positioning One Sales LTE Advanced Foundation • Vodafone Crystal Clear Technology (EVS) • Next generation Sales • Carrier Aggregation • X-channel sales flows • LTE-V(ehicle) • 360° view on produ
Slide 37: Thank you
Thank you
Vodafone Group — Investor Presentation (September 2016) on 6ix