Vodafone Group Public Limited Company · LSE:VOD
Vodafone Group Public — Vodafone Group — Merger or Acquisition (April 2012)
14 slides from Vodafone Group Public's merger presentation, Apr 23, 2012
Slide 1: Recommended offer for Cable & Wireless Worldwide
Recommended offer for Cable & Wireless Worldwide 1 | 23 April 2012
Slide 2: Disclaimer
Disclaimer This Investor Presentation is in connection with the recommended cash offer (the “Offer”) by Vodafone Europe B.V. (“Vodafone”) for Cable & Wireless Worldwide Plc (“CWW”). By attending this Investor Presentation, you agree to be bound by the following conditions: Overseas Persons The infor
Slide 3: Transaction highlights
Transaction highlights • Strengthens the enterprise business of Vodafone in the UK and internationally • Attractive UK and international fibre network assets • Creates a leading integrated enterprise focused operator in the UK • Valuable in-market and international cost saving opportunities • Value
Slide 4: Consistent with our Group strategy
Consistent with our Group strategy Leadership focus Europe, Africa, India Mobile data: accelerate across footprint Enterprise: exploit opportunity across footprint A growth strategy from data Emerging markets: drive penetration and data adoption Total Communications: continue to develop services in
Slide 5: Overview of CWW
Overview of CWW • IP and Data FY11 revenue by product – Wide area networks – Local area networks IP and data – IP voice solutions 12% • Hosting & Applications Traditional voice Services – Managed hosting solutions and legacy Co-location 44% – – Server and website hosting £2.3bn Hosting and Storage a
Slide 6: Creates a leading integrated operator in the UK
Creates a leading integrated operator in the UK UK telecoms operators’ latest reported full year domestic revenue £m 18,000 CWW UK 16,000 15,575 Vodafone UK 6,971 6,784 7,200 1,700 5,769 5,271 4,800 3,992 2,400 5,271 1,765 395 288 0 (Pro forma) • Combined entity will be well positioned to capitalise
Slide 7: UK cost saving opportunities
UK cost saving opportunities CWW UK network footprint Cost saving opportunities • Extensive fibre network that fits well with the location of Vodafone’s mobile base stations – Backhaul to support demand for data traffic at considerably lower cost – Network rationalisation • Utilise Vodafone's purcha
Slide 8: Incremental benefits across Vodafone's global footprint
Incremental benefits across Vodafone’s global footprint CWW international network and Vodafone footprint CWW network Vodafone operating companies1 Verizon Wireless Partner markets • CWW’s high IP traffic volumes and peering status will provide further cost efficiencies • International network capabl
Slide 9: Transaction terms and timetable
Transaction terms and timetable Terms Timetable • Recommended cash offer of 38p per share • Rule 2.7 announcement – 23 April 2012 – 92% premium to pre-approach price – £1,044m total consideration for ordinary share capital – Offer required for the convertible bond • Scheme documents posted to shareh
Slide 10: Transaction evaluation process
Transaction evaluation process Process M&A Criteria • Regularly assess “buy/build/partner” M&A Criteria Acquisition of CWW opportunities across Vodafone’s markets – Different market dynamics support IRR exceeds market WACC 1 different decisions by 200bps – Attractive opportunity to buy in the UK ROI
Slide 11: Outline post acquisition plan
Outline post acquisition plan The business has historically been underinvested 1. Post acquisition phase – CWW kept separate for a period to ensure the business is stabilised – Vodafone senior executive in charge of integration plan – Focused investment to stabilise platforms – Utilisation of CWW ca
Slide 12: Forward-looking statements
Forward-looking statements The information in this Investor Presentation may contain forward-looking statements regarding the Vodafone Group’s financial position, business strategy, plans and objectives of management for future operations. All statements other than statements of historical facts may
Slide 13: Q&A
Q&A 13 | 23 April 2012
Slide 14: 14 | 23 April 2012
14. | 23 April 2012