Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Q1 2015 Earnings Presentation
25 slides from Vodafone Group Public's earnings presentation, Jul 25, 2014
Slide 1: Vodafone Group Plc Interim Management Statement
Vodafone Group Plc Interim Management Statement For the 3 months ended 30 June 2014 25 July 2014
Slide 2: Disclaimer
Disclaimer Information in the following communication 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 o
Slide 3: Vittorio Colao, Group Chief Executive
Vittorio Colao Group Chief Executive
Slide 4: Q1 14/15 highlights
Q1 14/15 highlights • Group service revenue -4.2%; (-2.9% excluding MTRs); continued growth in AMAP, up 4.7%; Europe -7.9%, early signs of stabilisation in performance • Driving data growth; 6.7m 4G users, data traffic growth accelerating - Europe +53%, Group +73% • Strong progress on Project Spring
Slide 5: Service revenue growth by market
Service revenue growth by market Q1 14/15 service revenue growth (excl. MTRs) (%) AMAP +6.2% Europe -6.6% 27.31 17.2 10.3 6.9 3.4 2.6 (0.7) (2.7) (2.9) (3.0) (3.1) (3.2) (4.9) (5.5) (10.4) (10.8) (14.6) 1 Qatar Ghana India Turkey Vodacom Romania Egypt Ireland Group NL UK Portugal Germany Greece Czec
Slide 6: Project Spring build progressing well
Project Spring build progressing well Cumulative build achievements since September 2013 (‘000s) Progress March June March • Build programme c.25% complete 2014 2014 2016 target • European 4G network coverage 52% (Q4 New 2G sites 7 14 47 46%). Target 91% by 2016 New 3G sites 13 20 73 • India 3G cove
Slide 7: 4G: increased demand, usage and rollout
4G: increased demand, usage and rollout Increased demand for 4G 4G customers (m) Further 4G rollout (Europe) 4G sites 4G devices (m) 4G outdoor coverage1 • Launched in Qatar, now in 15 markets 13.6 52% 11.0 46% 38% 22,900 18,200 6.7 13,700 5.4 4.7 2.0 Q3 13/14 Q4 13/14 Q1 14/15 Q3 13/14 Q4 13/14 Q1
Slide 8: Unified communications: continued progress and traction
Unified communications: continued progress and traction Expanding Next Generation Network reach Europe fixed broadband net adds (‘000s)1 222 CWW: 20,500km of fibre 186 167 Wholesale fibre access Fibre co-build to 1.8m homes 79 85 to 500k homes by end 2018 KDG: 29% coverage (12m homes passed). Wholes
Slide 9: Regulation in Europe: some progress, more to do
Regulation in Europe: some progress, more to do Consolidation Roaming Agenda for FY 14/15 • Ireland and Germany 4-to- • Clarity needed on “fair • Net neutrality 3 moves approved use” policy and customer experience • Spectrum harmonisation – positive read across to other markets • Strong progress on
Slide 10: Nick Read, Group Chief Financial Officer
Nick Read Group Chief Financial Officer
Slide 11: Group service revenue: evidence of commercial improvement
Group service revenue: evidence of commercial improvement Q1 14/15 Q1 14/15 Q4 13/14 £bn YoY growth YoY growth • Group: QoQ improvement in a number of (%) (%) markets, slowdown in India and Vodacom as Group service revenue 9.4 (4.2) (4.0) expected, increased competition in Spain excluding MTRs (2.9)
Slide 12: Germany: recovering operationally; KDG integration begun
Germany: recovering operationally; KDG integration begun Service revenue growth (%) Project Spring KPIs Service revenue growth Q3 Q4 Q1 Excluding MTRs Deployment and experience 13/14 13/14 14/15 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 4G % outdoor population coverage 67% 68% 70% % of data sessi
Slide 13: UK: improving mobile service revenue trend
UK: improving mobile service revenue trend Service revenue growth (%)1 Project Spring KPIs Service revenue growth Q3 Q4 Q1 Excluding MTRs2 Deployment and experience 13/14 13/14 14/15 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 4G % outdoor population coverage 35% 35% 41% % of data sessions >3Mbps 7
Slide 14: Italy: market remains competitive; enterprise trend encouraging
Italy: market remains competitive; enterprise trend encouraging Service revenue growth (%)1 Project Spring KPIs Service revenue growth Q3 Q4 Q1 Excluding MTRs Deployment and experience 13/14 13/14 14/15 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 4G % outdoor population coverage 18% 35% 48% % of da
Slide 15: India: customer growth, voice pricing and data usage drive revenue
India: customer growth, voice pricing and data usage drive revenue Service revenue growth (%) Project Spring KPIs Q3 Q4 Q1 13.8 13.2 13.2 Deployment and experience 13/14 13/14 14/15 11.9 10.3 3G % outdoor population coverage1 84% 89% 89% % of data sessions >400kbps 1 56% 62% 63% % of dropped calls -
Slide 16: Vodacom: continued underlying growth driven by data
Vodacom: continued underlying growth driven by data Vodacom service revenue growth (%) Project Spring KPIs (South Africa) Service revenue growth Q3 Q4 Q1 Excluding MTRs Deployment and experience 13/14 13/14 14/15 10.5 7.9 8.0 4G % outdoor population coverage 9% 12% 22% 6.8 4.6 5.1 % of data sessions
Slide 17: Spain: mobile market remains challenging, expanding in fixed
Spain: mobile market remains challenging, expanding in fixed Service revenue growth (%) Project Spring KPIs Service revenue growth Q3 Q4 Q1 Excluding MTRs Deployment and experience 13/14 13/14 14/15 Q1 13/14 Q2 13/14 Q3 13/14 Q4 13/14 Q1 14/15 4G % outdoor population coverage 31% 48% 58% % of data s
Slide 18: Vittorio Colao, Group Chief Executive
Vittorio Colao Group Chief Executive
Slide 19: Summary
Summary • Performance in Europe stabilising quarter on quarter in several markets • Strong customer growth and data take-up in AMAP • Continued progress on unified communications strategy – Progressing NGN plans in Germany, Italy, Spain, Ireland, Portugal • KDG and CWW integration on track, Ono comp
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Appendix 21
Slide 22: Service revenue
Service revenue (£m) 177 1,644 (6) 9,446 8,874 (125) (18) (675) (425) Q1 13/14 FX M&A 1 In-bundle Out-of-bundle Incoming MTR Other Q1 14/15 reported service reported service revenue revenue 1. Primarily represents adjustments for KDG and Italy 22
Slide 23: More information
More information Visit our website for more information Upcoming dates AGM Open Office (Tanzania) Half year results 29 July 25-26 September 11 November www.vodafone.com/investor Contact us Follow us Download on Twitter our iPad app ir@vodafone.co.uk +44 (0) 7919 990 230 @VodafoneIR For definitions o
Slide 24: Forward-looking statements
Forward-looking statements This presentation contains “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995 with respect to the Group’s financial condition, results of operations and businesses and certain of the Group’s plans and objectives. In p
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