Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Day (September 2004)
13 slides from Vodafone Group Public's investor day presentation, Sep 27, 2004
Slide 1: Vodafone Analyst & Investor Day: Vodafone Italy
Vodafone Analyst & Investor Day Monday 27 September 2004 Vodafone Italy Presenters: Pietro Guindani, CEO Luca Rossetto, COO Q&A Panel: Pietro Guindani, CEO Luca Rossetto, COO Margherita Della Valle, CFO 11 The following presentation is being made only to, and is only directed at, persons to whom suc
Slide 2: Market overview
Agenda Market Overview Financial Review Commercial Strategy 22 Market overview 70 EoP Mil Market Penetration March ‘04 101% Market Customers Revenues Share March04 1Q04 36.5% 60 34.4% fone 44.9% 48.2% Voda hare 50 et S 34.6% Mark 23.6% 40 36.5% 39.2% 30 17.6% 12.5% 20 10 1.0% n.a. 0 Q1-97 Q1-98 Q1-9
Slide 3: Market share of Vodafone vs TIM
Market share of Vodafone vs TIM Revenue and EBITDA share EBITDA margin and customer share 56% 60% 54% 55% EBITDA margin Revenue share 52% 50% 50% 45% 48% 40% 46% 40% 45% 50% 55% 60% 40% 45% 50% 55% 60% EBITDA share Closing customer share Vodafone Mar-03 TIM Mar-03 Vodafone Mar-04 TIM Mar-04 Vodafone
Slide 4: Competitive positioning; Regulation
Competitive positioning 4.3 4.0 3.7 3.4 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 4.2 3.9 3.6 3.3 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 4.0 3.7 3.4 3.1 1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 Customer Corporate profile Emp
Slide 5: Revenue analysis
Agenda Market Overview Financial Review Commercial Strategy 88 Revenue analysis Year on year growth Voice & data ARPU (1) 14% 14% 500 13.5% 12.7% 13.3% 13% 12.2% 11.8% 12% 12% 11% 11% 11% 11% 400 10% 351 362 YoY +3% 10% 9% Year on year growth 41 43 46 48 49 ARPU (€) 9% YoY +20% 8% 300 8% 7% 6% 200 3
Slide 6: ARPU Trends; Cost management
ARPU Trends (1) (1) ARPU growth rate YoY Data % of gross service revenue 20% 14.5% 6% 13.7% 13.4% 12.4% 12.4% 11.9% 11.5% 15% 13.4% 1% 10.4% 10.3%10.0% 12.5% 12.5% 9.3% 11.1% 11.5% 8.2% 10.3% 10.6% -4% 10% 7.0% 7.2% 8.8% 8.7% 8.0% 7.5% 7.1% -9% 5% 6.1%6.1% -14% 0% Q101 Q102 Q103 Q104 Q204 Q101 Q102
Slide 7: Cost management and margin performance; Driving cash flow
Cost management and margin performance Operating expenses EBITDA(1) YoY +20% 1,000 54.8% 2,500 51.3% 49.4% 49.2% 21.0% 19.9% 19.7% 800 Operating expenses (€ millions) 17.9% 2,000 EBITDA (€ millions) 600 1,500 400 1,000 200 500 0 0 H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 03/
Slide 8: Business objectives
Agenda Market Overview Financial Review Commercial Strategy 14 14 Business objectives Customer satisfaction leadership Further strengthening brand preference ARPU leadership Enhance high value customer base loyalty Business segment market share growth 15 15 8
Slide 9: Benefits from the Vodafone Group; Branding & customer satisfaction
Benefits from the Vodafone Group Time-to-market of most innovative products and services Strength of a global brand Best practice sharing of ARPU stimulating initiatives Pooling of best technical resources and competence Lower cost base through leveraging on SCM scale effect 16 16 Branding & custome
Slide 10: Consumer segmentation; Call completion initiatives
Consumer segmentation Segment Commercial Strategy Initiatives Increase market share by Teens facilitating group interactions and enabling budget management Young Achieve overall leadership Active through occasion based marketing Fun and innovative services Adult Consolidate results and focus on Pers
Slide 11: SMS Christmas card; Service proposition for business segment
SMS Christmas card 3,000 3,000 2,500 SMS / Month (m) 2,500 2,000 2,000 1,500 +32% +40% vs. Oct 1,000 +39% vs. Oct vs. Oct 500 500 0 Oct Dec Jan Oct Dec Jan Oct Dec Jan Xmas Card 01 Xmas Card 02 Xmas Card 03 Promotions positively impact on customer behaviour and impact persists over time 20 20 Servic
Slide 12: Customer management at all touch points; Mobile number portability
Customer management at all touch points Shops Loyalty Programme 818 exclusive dealers 23 Flagship shops 1,420 Dealers 9.6 mil subscribers (49% of total CB) 81% of high value customers enrolled high value customer churn - 50% reduction Customer Base Management Extensive customer data warehousing Cust
Slide 13: Summary; Forward-Looking Statements
Summary Undisputed leadership in customer satisfaction Brand preference higher than market share Growing market share of customers and value Excellence in segment based marketing, product and service innovation and customer base management Highly profitable and cash generative 24 24 Forward-Looking