Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Citigroup Conference 2007
20 slides from Vodafone Group Public's conference presentation, Mar 28, 2007
Slide 1: Citigroup Conference, Arun Sarin, Chief Executive
Arun Sarin Chief Executive Vodafone Group Citigroup Conference 28 March 2007
Slide 2: Disclaimer and forward-looking statements
• Any 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 communication does not constitute an offering of s
Slide 3: Contents
Contents 1. Highlights for the third quarter 2. Executing Vodafone’s five strategic objectives 3. Hutch Essar acquisition 4. Regulatory update 5. Summary 3 Citigroup Conference
Slide 4: Q3 FY 06/07 Group highlights
Q3 FY 06/07 Group highlights Customer franchise strengthened • Organic proportionate mobile revenue growth of 6.1% YoY • 8.7m net new organic proportionate customers • Over 200m proportionate mobile customers worldwide at end of January • Competitive pricing following several key tariff refreshes in
Slide 5: Europe: KPI highlights for Q3 FY 06/07
Europe: KPI highlights for Q3 FY 06/07 YoY change1 Revenue Service revenues +2.1% Voice -0.5% • Environment remains challenging due Messaging +3.7% to high levels of competition and the Data +32% impact of regulation Underlying service revenues +5.8% • Price declines offset by minute volume Usage an
Slide 6: EMAPA: KPI highlights for Q3 FY 06/07
EMAPA: KPI highlights for Q3 FY 06/07 YoY change1 Continued strong customer and revenue growth driven by rising penetration Revenue Service revenues +21% Controlled businesses Voice revenues +19% Largest four markets service revenue growth: Customers • 42% in Egypt Proportionate customers +21% • 30%
Slide 7: Vodafone's five key strategic objectives
Vodafone’s five key strategic objectives Revenue stimulation and cost reduction in Europe Deliver strong growth in emerging markets Innovate and deliver on our customers’ total communications needs Actively manage our portfolio to maximise returns Align capital structure and shareholder returns poli
Slide 8: Driving fixed to mobile substitution
Driving fixed to mobile substitution • Attractive tariffs – Vitamina, Infinity, Kombipakete, Stop the Clock Customer • Family bundles and best friends offers value focus • Bolt-ons – free weekends • Prepay to postpay migration Vodafone At • Vodafone At Home services now launched in 11 markets with o
Slide 9: Driving data growth
Driving data growth • 1.2m 3G data cards - up 75% YoY1 Vodafone • Leading the market for connectivity solutions (e.g. USB modem, 3G wireless Mobile router) Connect data • HSDPA already available in 28 Vodafone markets2 - download speeds up to cards 7.2Mbps Handheld • 1.2m HHBDs - up 62% YoY1 busines
Slide 10: Cost reduction programmes gaining traction
Cost reduction programmes gaining traction Local and regional scale efficiencies – focused programmes Contract signed with IBM and EDS - reduces unit costs by 25-30% Outsourcing IT within 3-5 years. Local agreements already signed in four countries Network sharing MOU signed recently in Spain and UK
Slide 11: Cost reduction – network sharing
Cost reduction – network sharing Site sharing RAN sharing National roaming • Vodafone today already shares sites on an ad hoc basis • RAN sharing is technically possible for 3G today and is expected for 2G in the short to medium term • Vodafone will review opportunities on a market by market basis •
Slide 12: Key elements of Mobile Plus strategy
Key elements of Mobile Plus strategy Mobilising the DSL Advertising Internet • Launched in five • Commercial • Evolving Vodafone markets agreements in live! four markets • Predominantly asset • Improving usability light approach • Largest on-line • Opening up the markets signed-up • Market by market
Slide 13: Total communications – opening up the internet
Total communications – opening up the internet IM email search community organise chat browse locate buy Vodafone is Vodafone is making making the the internet internet relevant relevant to to mobile mobile 13 Citigroup Conference
Slide 14: Total communications – opening up the internet
Total communications – opening up the internet “Opening out” the Vodafone’s added value Vodafone live! portal • Web discovery first • Research and scale – 200m proportionate customers • Partner services and Vodafone specific content • Relevance and personalisation • Advertising • Building relationsh
Slide 15: Key highlights from Hutch Essar acquisition
Key highlights from Hutch Essar acquisition Acquisition of a • Acquisition of companies that control Hutch Essar controlling • Transaction consideration: US$11.1bn (£5.7bn) interest in Hutch • Implied enterprise value: US$18.8bn (£9.6bn) Essar • Completion expected in the coming weeks • MOU with Bha
Slide 16: Key growth opportunity consistent with strategy
Key growth opportunity consistent with strategy 1 • Accelerates Vodafone’s move to a controlling position in a leading operator in the attractive and fast growing Indian mobile market – India is the world’s 2nd most populated country and the fastest growing major mobile market 2 • Hutch Essar delive
Slide 17: Portfolio management – recent activity
Portfolio management – recent activity Disposals Acquisitions • Sale of 25% stake in Proximus, • Agreement to acquire controlling Belgium interest in Hutch Essar, India – net cash proceeds of £1.4bn – transaction consideration of £5.7bn – expected to close Q1 FY07/08 • Sale of 25% stake in Swisscom
Slide 18: Regulation
Regulation Termination • Convergence of termination rates continues rates • OFCOM (UK) decision recognises investment in 3G • Debate on EU proposals to regulate ongoing until at least mid 2007 • Active debate on retail regulation Roaming • Wholesale regulation remains likely • Committed to meeting V
Slide 19: Summary
Summary Revenue stimulation price declines offset by minute volume and data revenue growth Cost reduction multiple in-market and regional programmes in execution Total communications needs opening up the internet; partnerships with leading internet players Portfolio management agreement to acquire H
Slide 20: Forward-looking statements
•This presentation contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995, in particular with respect to: expected regulatory changes, developments and approvals; expected population and market growth in the jurisdictions in which the Grou