Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Investor Day (September 2004)
12 slides from Vodafone Group Public's investor day presentation, Sep 27, 2004
Slide 1: Vodafone Analyst & Investor Day
Vodafone Analyst & Investor Day Monday 27 September 2004 Vodafone UK Presenter: Bill Morrow, CEO Q&A Panel: Bill Morrow, CEO John Townsend, CFO Nick Read, CCO 11 The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated
Slide 2: Agenda
Agenda Market Overview Financial Review Commercial Strategy 22 Extremely competitive market ….. Number of Competitors …. with more competitors set to launch Network Existing Potential Operators MVNOs MVNO’s 33 2
Slide 3: Market share and competitive positioning
Market share Revenue and EBITDA share 35% 33% 31% Revenue share 29% 27% 25% 23% 21% 19% 17% 15% 10% 15% 20% 25% 30% 35% 40% EBITDA share Vodafone Mar-04 O2 Mar-04 T-Mobile Mar-04 Orange Mar-03 Vodafone Mar-03 O2 Mar-03 T-Mobile Mar-03 Orange Mar-04 Maintained revenue and margin leadership Source: Pu
Slide 4: Competitive positioning – strong loyalty; Regulatory environment
Competitive positioning – strong loyalty 110 110 100 Prepaid Contract 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 Q1 2003/04 Q2 2003/04 Q3 2003/04 Q4 2003/04 Q1 2003/04 Q2 2003/04 Q3 2003/04 Q4 2003/04 110 110 SMEs Corporate 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 Q1 2003/04 Q2 2003/04 Q
Slide 5: Revenue analysis
Agenda Market Overview Financial Review Commercial Strategy 88 Revenue analysis Year on year growth ARPU (1) 14% 13% 13% 350 16.6% 16.1% 15.5% 14.7% 15.0% 12% 12 8 4 300 Year on year growth 10% 9% 8% ARPU (£) 8% 8% 6% 250 6% 6% 5% 297 297 299 301 302 4% 4% 4% 200 2% 2% 1% 0% 150 H1 02/03 H2 02/03 H1
Slide 6: Cost analysis and EBITDA margin performance
Cost analysis Direct costs & operating expenses (1) 70% Net retention costs Interconnection Payroll costs Net acquisition costs Other direct costs Other operating costs 60% 11.8% 13.1% 17.9% Customer 12.0% Base Costs % of gross service revenue 50% 40% 22.6% Other 22.3% 23.2% 21.9% Direct 30% Costs 2
Slide 7: Driving cashflow
Driving cashflow Tangible fixed asset additions Operating free cash flow(1) 12.5% 27.8% 400 12.3% 12.2% 800 Operating free cash flow (£ millions) 10.2% Fixed asset additions (£ millions) 20.2% 20.6% 300 600 19.6% 200 400 100 200 0 0 H1 02/03 H2 02/03 H1 03/04 H2 03/04 H1 02/03 H2 02/03 H1 03/04 H2 0
Slide 8: Different - in distribution
Launched and executing on a structured plan Different Sustainably differentiate and segment to drive growth Efficient Drive to lowest cost Organised Build a great organisation and employee experience Future Position for the future Thinking 14 14 Different - in distribution Indirect vs direct churn 4
Slide 9: Different - in the enterprise and consumer segments
Different - in the enterprise segments Segment Sustainably differentiate and Initiatives segment to drive growth Best quality network with a call completion International Differentiated success rate of 99.3% - preferred network for business and IT decision makers Business customer experience Travell
Slide 10: Different - in providing greater value; Efficient
Different - in providing greater value Consumer contract disconnections and Consumer contract disconnections and migrations Specific initiatives to drive migrations to prepay to prepay customer value 120000 100000 Introduced a range of Quantity Quantity 80000 competitive retention tariffs 60000 Hand
Slide 11: Organised and future thinking; Summary
Organised and future thinking Organised Future Thinking Changed to a more customer Next-generation CRM and market-focused capabilities organisational structure Timed investments in Strengthening the leadership network technologies team with new appointments World-class supplier New Key Performance m
Slide 12: 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 financial condition of the Vodafone Group (the “Group”), the results of operations and certain businesses controlled by