Vodafone Germany Open Office. 29 September 2016 Munich, Germany

Transcription

1 Vodafone Germany Open Office 29 September 2016 Munich, Germany

2 Disclaimer Information in this factsheet 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 offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in any company within the Group. This factsheet contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 which are subject to risks and uncertainties because they relate to future events. Some of the factors which may cause actual results to differ from these forwardlooking statements can be found under the heading Forward-Looking statements in our 2016 annual report which can be found on our website This factsheet also contains non-gaap financial information which the Group s management believes is valuable in understanding the performance of the Group. However, non-gaap information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by other companies, including those in the Group s industry. Although these measures are important in the assessment and management of the Group s business, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP measures. Vodafone, the Vodafone Portrait, the Vodafone Speechmark and Vodafone One Net are trade marks of the Vodafone Group. The Vodafone Rhombus is a registered design of the Vodafone Group. Other product and company names mentioned may be the trade marks of their respective owners. 2

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4 Vodafone Germany: key financials Market 83m Population 137% Mobile penetration 75% Fixed broadband penetration 13 Mobile ARPU 76% Smartphone penetration 223 Avg. TV MoU per day Q1 16/17 Market shares 30% Mobile Revenue 37% Vodafone 33% Deutsche Telekom 43 Mobile connections 1 (m) 41 Telefonica 42 United Internet 10% 12% 5% Fixed revenue 2 53% 20% Unitymedia Key financials FY 14/15 FY 15/16 ( m) H1 H2 FY H1 H2 FY Total revenue 5,335 5,342 10,667 5,308 5,318 10,626 Service revenue 4,969 4,893 9,862 4,895 4,922 9,817 EBITDA 1,719 1,670 3,390 1,736 1,726 3,462 EBITDA margin (%) Capex 1,284 1,275 2,559 1,159 1,203 2,362 Operating FCF , Organic service revenue growth (YoY) % FY 15/16 FY 16/17 Q1 Q2 Q3 Q4 Q1 Mobile Contract (1.7) (2.6) (1.7) (0.8) (1.7) Mobile Prepaid (12.2) (9.0) (3.8) (0.1) 1.4 Mobile incoming (6.4) (7.3) (8.1) (7.2) (4.2) Fixed 3 (0.2) o/w DSL (5.2) (6.1) (4.6) (2.1) (0.9) o/w Cable Other Total (1.2) (1.8) (0.4) Key performance indicators FY 15/16 FY16/17 Q1 Q2 Q3 Q4 Q1 Mobile customers (m) o/w Contract (m) o/w Prepaid (m) Contract Net Adds (000s) Mobile Contract ARPU ( ) Mobile Prepaid ARPU ( ) Fixed BB customers (m) o/w DSL (m) o/w Cable (m) Fixed BB Net Adds (000s) TV customers (m) Vodafone Germany 19% of Group revenue 22% of Group EBITDA FY 15/16 Service Revenue Mobile Contract Mobile Prepaid Mobile incoming 22% 17% Enterprise 5% 3% 5% Fixed DSL Fixed Cable Other FY 15/16 Service Revenue 48% Consumer / Other 4 1. incl. MVNO and IoT connections 2. excl. Wholesale Revenue, does only reflect the market based on reported figures 3. Aided by an accounting reclassification of fixed line revenue. Underlying fixed growth was +3.0% in Q1 16/17 and +2.4% in Q4 15/16; (Cable +6.5% in Q1 and +7.0% in Q4)

5 Vodafone Germany: Key messages: Back to growth Positioning as Gigabit Company Leading position and strong commercial momentum in each market segment Investments in Project Spring and Kabel Deutschland paying off Differentiation through CXX Continued efficiency improvement to fuel growth Notes: 5

6 Vodafone Germany: Consumer Consumer Image Sales Channel Structure Direct Online Own Shops Franchise Inbound calls Door to Door Indirect Dealers Service Providers Branded Resellers MVNO Premium Mobile Products Smart S 200 MB 50 min Talk & Text 9 ct. Min / SMS Smart M 500 MB 300 min CallYa PrePay Special 750MB 200 min & VF Flot Red S 1 GB All Net 750MB All net flat LTE Max for all tariffs up to 375Mbit/s Red M Red L Red XL 3 GB 6 GB 10 GB Voice Flat Roaming in EU Red XXL 20 GB Handset Insurance Black 30 GB EU, US, TR, CH 1000 mins. International TV Packages Basic TV Vodafone TV 39 HD & 100 SD channels 39 HD & 100 SD channels Time-shifting and recording Video on Demand TV Connect (for all customers without cable access) Pay TV options HD Premium 19 additional HD channels (Documentaries, Series and Sports) HD Premium Plus 19 additional HD and SD channels (US Sports, Music, EU Series, etc) Internet & Phone Cable 32 DSL 16 Cable 100 DSL 50 Cable 200 DSL 100 Cable 400 GigaKombi: Experience all 4 starting from 19,99 6

7 Consumer Key messages: Mobile Driving profitable growth in a challenging market environment Growing Prepaid and Postpaid subscribers More for More ARPU enhancement initiative implemented in April: higher fee in return for LTE Max and EU roaming Proactively migrating legacy customers to modern tariffs; increasing NPS and data usage Targeted offers in a two-tier market Maintaining superior pricing in the high-end driven by LTE Max, EU Roaming, and convergence offers Otelo sub-brand remains competitive in low-end no frills segment Fixed Truly convergent nationwide Player delivering superior combination of speed and value. Compelling product and pricing proposal in competitive market environment Consistently grown Cable customers base and turned around DSL business The largest TV subscriber base in Germany Growth upside from upselling premium TV and Internet & phone products and content Notes: 7

8 Vodafone Germany: Enterprise Reference customers Business structure Corporate VGE SME Public SOHO / SE Vodafone Enterprise is organised in 5 segments divided by customer size: 1. SoHo / SE: focuses on Vodafone s smallest Enterprise customers with SoHo customers counting <9 FTEs and SE <50 FTEs 2. SME: focuses on medium sized Enterprise customers with FTEs 3. Corporate: focuses on Vodafone s corporate customers with >500 FTEs 4. Public: focuses on public companies with at least 51% state ownership 5. VGE: focuses on multi-national companies with worldwide operations Product Structure Our experts Enterprise product portfolio Our partners IoT solutions Unified Comms Cloud & Hosting Security Your personal team Consulting, project and service management - Global Data Service platform GDSP - Connected Products for e2e solutions Unified communication and workplace solutions - Private and public cloud solutions - German data centres with enterprise grade connectivity - Data and Voice encryption - Cloud and fixnet security solutions End-to-End solution-oriented coordination km fiber & coax network Fixed and mobile converged access Multi service: Voice, All IP, Internet, VPN Converged Mobile & Fixed Connectivity High performance and availability National and global coverage Tangible customer experience with VoLTE and WiFi Calling Applications IoT Unified Comms Cloud & Hosting Security Voice Services Traditional Voice (ISDN/GSM) IP Voice (All IP / VoLTE) Inbound & Contact Centre Data Services Internet (Fixed/Mobile) IP VPN (Fixed/Mobile) Ethernet Access Fixed Access (xdsl, Fiber, Cable) Mobile Access (UMTS, LTE, WLL, Femto) 8

9 Enterprise Key messages: ARPU remains core challenge in Mobile, but trends are improving Strong fixed performance with YoY growth achieved One Net Business is our core differentiator in the Unified Comms market Dedicated Cloud & Hosting segment is building market credibility with first trophy customer wins Vodafone IoT with substantial potential for further growth by moving towards vertical solutions Strong investments in digital transformation Targeting NPS leadership Innovation: implementing a range of new services, including: SaaS marketplace - best in class SaaS-Solutions for a broad range of industries. Bundle with connectivity services to deliver vertical offers VF Total Cloud Fusion Cloud platform for mission critical applications (SAP, Oracle) and standard applications NB-IOT - Delivery of a central, globally managed connectivity capability based on Low Power Wide Area (LPWA) technology Cable access VF WiFi Calling full integration of WiFi Voice Calls being terminated in the VF network VF One Net business Fully integrated and converged unified communication and collaboration service VF Connected Business Cloud based LAN service with LAN infrastructure, security, WiFi and VF Hotspot to help customers manage their LAN and Hotspots Notes: 9

10 Vodafone Germany: Technology Technology Image Mobile network key performance indicators Population coverage Q1 16/17 (%) Base stations (000s) High capacity backhaul (%) Data sessions >3Mbps (%) Dropped call rate (%) FY 15/16 FY 16/17 Q1 Q2 Q3 Q4 Q G 3G 4G Fixed network performance indicators FY 15/16 FY 16/17 Fixed household coverage Q1 16/17 (%) NGA HH passed (m) Q1 Q2 Q3 Q4 Q o/w Wholesale o/w On-net homes reached by owned NGA (%) NGN coverage 97.5 ADSL coverage Data usage indicators FY 15/16 FY 16/17 Spectrum holdings Frequency Holdings Renewal date Mobile Data traffic (PB) Mobile Data traffic growth (%) Average SMP usage (MB) Q1 Q2 Q3 Q4 Q MHz 2x10MHz MHz 2x10MHz MHz 2x 10 MHz MHz 1x 20 MHz MHz 2x 25 MHz GHz 2.6 GHz 2x 10 MHz & 2x 5 MHz 2x 20 MHz & 1x 25 MHz 2020 &

11 Technology Key messages: We are future ready: a modernised and leading mobile, fixed and cable network of 24,400 Base stations and over 400,000 km Fibre- and Coax-Network. Best Voice Network according to Connect tests. Dropped Call Rate reduced by 40% since Apr Superfast Networks: download speed increased by 60% since Apr. 2014, with LTE up to 375 Mbps and cable up to 400 Mbps. Highly reliable mobile and cable networks: >99.7% and 99.9% availability respectively for a premium customer experience. >1,400,000 WLAN Hotspots Gigabit-Readiness: strategic focus optimal Spectrum Utilisation, LTE Advanced (incl. NB-IoT) and Cable Network Evolution. Notes: 11

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