Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Q1 2016/17 Earnings Presentation
27 slides from Vodafone Group Public's earnings presentation, Jul 22, 2016
Slide 1: Vodafone Group Plc Trading update
Vodafone Group Plc Trading update For the three months ended 30 June 2016 22 July 2016
Slide 2: Commercial review
Commercial review Vittorio Colao Group Chief Executive
Slide 3: Disclaimer
Disclaimer Information in this presentation relating to the price at which relevant This presentation also contains non-GAAP information which the investments have been bought or sold in the past or the yield on such Group’s management believes is valuable in understanding the investments cannot be
Slide 4: Q1 16/17 highlights
Q1 16/17 highlights Continued progress • Group service revenue €12.3bn, +2.2% (Q4 +1.8% underlying) • Europe: +0.3%; stable trend as ‘more-for-more’ ARPU enhancement and fixed growth offsets lower roaming fees • AMAP: +7.7%; sustained growth driven by data adoption and customer base expansion Ongoin
Slide 5: Continued progress
Continued progress Customer experience1 KPIs Financials Consumer NPS (points) Customer net adds (000s) Service revenue growth (%) Gap to next best Gap to third Group Europe AMAP 15 Mobile contract 12 Fixed 8.1 7.7 1,444 1,425 6.7 1,296 1,290 6.1 6.5 1,135 2 2.5 2.2 414 416 0.8 1.2 1.4 264 348 230 (2
Slide 6: Growth engines: data
Growth engines: data Increasing 4G penetration Growing data usage Delivering monetisation 4G customers (m) Smartphone usage ‘More-for-more’ actions, supporting ARPU Monthly average MB Examples Group 52.5 Europe AMAP Europe 46.8 1,272 4G 1,120 990 +€1.90 Dedicated customer service agent 34.8 33.4 36.
Slide 7: Growth engines: enterprise
Growth engines: enterprise Leading scale and service Fixed outpacing mobile Growing in strategic areas Q1 service revenue growth (%) Q1 service revenue growth (%) 5.1 20.1 of Group service revenue 14.4 NPS leader in 2.6 1.7 6.3 out of enterprise markets Total Enterprise Fixed Mobile VGE IoT Cloud &
Slide 8: Growth engines: fixed and convergence
Growth engines: fixed and convergence Significant scale Ongoing momentum Ample growth opportunity EU Homes reached with NGN broadband (m) EU NGN customer net adds (000s) NGN on-net penetration Total 74 Total On-net On-net Penetration On-net On-net 421 61 379 customers households (%) 362 (m) (m) 317
Slide 9: Growth engines: strengthening strategic capabilities
Growth engines: strengthening strategic capabilities New Zealand: Merger with Sky NL: 50-50 JV with Ziggo Enhancing wholesale agreements #1 mobile, A #1 TV Market A Market leading targeting 7.5m HH by 2020 #2 fixed leading leading 4G stronger TV platform integrated 100% converged 90% operator TV cov
Slide 10: Differentiation: Customer eXperience eXcellence
Differentiation: Customer eXperience eXcellence Connectivity Always in control Reward loyalty Easy access COVERAGE Network ‘guarantee’ Real time monitoring Tailored offers 24/7 live help 14 markets 13 markets1 16 markets 14 markets EU data sessions My Vodafone App Consumer contract First contact res
Slide 11: Operational review
Operational review Nick Read Group Chief Financial Officer
Slide 12: Service revenue growth by markets
Service revenue growth by markets Q1 16/17 organic service revenue (%) 20.3 19.5 Group +2.2% 9.4 6.4 4.9 4.4 4.2 2.8 1.8 1.6 1.2 0.2 (2.1) (2.2) (3.2) Ghana Turkey Egypt India Spain1 Vodacom Romania Ireland New Germany Italy Portugal Greece 2 NL UK Zealand 1. Excluding impact of handset financing 2.
Slide 13: Germany
Germany Customer experience KPIs Financials Consumer NPS Customer net adds (000s) Service revenue growth (%) Mobile contract 1.6 1.6 Fixed 245 196 (0.4) 134 lead over 3rd ranked 104 105 108 (1.2) 70 (1.8) competitor 66 49 8 Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Q1 15/16 Q2 15/16 Q3 15/16 Q4 1
Slide 14: Italy
Italy Customer experience KPIs Financials Consumer NPS Customer net adds (000s) Service revenue growth (%) Mobile Fixed 1.3 1.2 43 38 63 46 24 lead over 3rd ranked (0.3) competitor (207) (2.0) (2.0) (266) (261) (293) (318) Q1 15/16 Q2 15/16 Q3 15/16 Q4 15/16 Q1 16/17 Q1 15/16 Q2 15/16 Q3 15/16 Q4 15
Slide 15: UK
UK Customer experience KPIs Financials Customer monthly call volumes (m) Customer net adds (000s) Service revenue growth (%) Mobile contract Reported 2.2 Fixed Q4 ex. carrier effect 90 94 83 0.2 (0.1) 1.5 1.3 26 28 (0.5) 20 (0.7) (0.8) 14 4 5 1 (3.2) Apr 14 Oct 15 Jun 16 Q1 15/16 Q2 15/16 Q3 15/16 Q
Slide 16: Spain
Spain Customer experience KPIs Financials Consumer NPS Customer net adds (000s) Service revenue growth (%) Mobile contract Reported Fixed 105 Ex. handset financing 4.9 92 83 79 1.0 0.7 0.6 1.3 64 54 53 Lead over next best 41 competitor 28 (2.0) (3.3) (3.1) (3.2) 1 (5.5) Q1 15/16 Q2 15/16 Q3 15/16 Q4
Slide 17: Vodacom
Vodacom Customer experience KPIs Financials South Africa Consumer NPS South Africa data bundles sold (000s) Vodacom service revenue growth (%) SA 106 Internationals 99 Group 91 82 4.5 3.9 7.2 6.3 4.4 70 10.7 10.7 10.2 lead over next best 8.3 competitor 7.2 6.5 5.7 4.4 2.8 3.0 Q1 15/16 Q2 15/16 Q3 15
Slide 18: India
India Customer experience KPIs Financials Customer NPS (points) Data users (000s) Service revenue growth (%) Total Reported 3G/4G Regulatory impact2 67 67 67 68 70 11.5 10.9 10.2 (May 2016) 4.6 7.6 7.7 lead over next best 32 5.3 4.9 24 26 28 1.3 competitor 22 5.3 6.9 5.6 5.3 6.4 2.3 Q1 15/16 Q2 15/1
Slide 19: Summary and Outlook
Summary • Continued progress • Building differentiation through CXX programme • Good performance in Germany, Italy, Spain and South Africa; continued recovery in India, addressing UK challenges • Data: more-for-more propositions supporting ARPU • Fixed: gaining scale, capturing value through on-net
Slide 20: Q&A
Q&A 20
Slide 21: Slide 21
Slide 22: Appendix
Appendix 22
Slide 23: Dividend policy under euro reporting
Dividend policy under euro reporting Current sterling based dividend Going forward euro based dividend Denomination Currency of payment Exchange rate 10 business days before payment Average of the five business days in date the week prior to payment Policy Intend to grow dividends per share in Inten
Slide 24: Customer experience and commercial KPIs
Customer experience and commercial KPIs Europe AMAP Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 14/15 15/16 15/16 15/16 16/17 14/15 15/16 15/16 15/16 16/17 4G customers (m) 18.9 24.3 28.1 33.4 36.0 4G customers (m) 5.3 5.8 6.7 13.4 16.5 Contract churn (%) 15.0% 15.7% 16.7% 16.1% 15.3% Contract churn (%) 19.4% 19.
Slide 25: Currency sensitivity
Currency sensitivity Currency FY 15/16 closing Currency FY 15/16 closing net debt (€bn) EBITDA (€bn) EUR 23.1 EUR 8.1 ZAR 1.4 ZAR 1.7 GBP (4.5) GBP 1.9 INR 9.4 INR 1.8 Other 7.5 Other 2.3 Total 36.9 Total 15.8 Actual foreign exchange rates may vary from the foreign exchange rate assumptions Actual f
Slide 26: More information
More information Visit our website for more information 2016 upcoming dates AGM Final dividend paid Half year results 29 July 3 August 15 November www.vodafone.com/investor Contact us Follow us on Twitter ir@vodafone.co.uk +44 (0) 7919 990 230 @VodafoneIR For definitions of terms please see www.voda
Slide 27: Forward-looking statements
Forward-looking statements This presentation, along with any oral statements made in connection therewith, contains new and existing customers; the Group’s ability to expand its spectrum position or renew or “forward-looking statements” within the meaning of the US Private Securities Litigation obta