vodafone germany open office · vodafone germany open office 29 september 2016 ... fixed bb net...
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Vodafone
Germany
Open Office 29 September 2016
Munich, Germany
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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 forward-
looking statements can be found under the heading “Forward-Looking statements” in our 2016
annual report which can be found on our website www.vodafone.com/investor.
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.
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Deutsche Telekom
FY 15/16 FY16/17
Q1 Q2 Q3 Q4 Q1
Mobile customers (m) 30.3 30.2 30.4 30.3 30.3
o/w Contract (m) 16.3 16.3 16.5 16.6 16.6
o/w Prepaid (m) 14.0 13.9 13.9 13.7 13.7
Contract Net Adds (000s) 104 245 196 49 8
Mobile Contract ARPU (€) 25.9 25.7 25.4 24.9 25.0
Mobile Prepaid ARPU (€) 3.4 3.5 3.4 3.5 3.5
Fixed BB customers (m) 5.5 5.6 5.7 5.8 5.9
o/w DSL (m) 2.8 2.8 2.8 2.8 2.8
o/w Cable (m) 2.7 2.8 2.9 3.0 3.1
Fixed BB Net Adds (000s) 70 67 105 134 108
TV customers (m) 7.9 7.9 7.9 7.8 7.8
Vodafone Germany: 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 (%) 32.2 31.3 31.7 32.7 32.5 32.6
Capex 1,284 1,275 2,559 1,159 1,203 2,362
Operating FCF 566 716 1,282 157 708 866
Key financials
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)
Fixed3 (0.2) 0.0 1.7 3.7 4.7
o/w DSL (5.2) (6.1) (4.6) (2.1) (0.9)
o/w Cable3 6.6 6.8 6.9 7.5 9.5
Other 12.2 6.1 5.0 18.0 16.2
Total (1.2) (1.8) (0.4) 1.6 1.6
Key performance
indicators
20%
53%
10%
12% 5% 83m
Population
€13 Mobile ARPU
Smartphone
penetration 137% Mobile
penetration
76% 33%
37%
30%
Mobile
Revenue
Fixed
revenue2
United Internet Telefonica Unitymedia
19% of Group revenue
22% of Group EBITDA
Vodafone Germany
Vodafone
Market
42
41
43 Mobile
connections1
(m)
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)
FY 15/16 Service Revenue
48%
5% 3%
17%
22%
5%
Mobile Contract
Mobile Prepaid
Mobile incoming
Fixed DSL
Fixed Cable
Other
Enterprise
FY 15/16 Service Revenue
75% Fixed broadband
penetration
Avg. TV MoU
per day
223
Q1 16/17 Market shares
Consumer / Other
5
Vodafone Germany:
Key messages:
Notes:
• 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
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Vodafone Germany: Consumer
Consumer Image
Premium Mobile Products
Sales Channel Structure
Direct Online
Own Shops
Franchise
Inbound calls
Door to Door
Indirect Dealers
Service
Providers
Branded
Resellers
MVNO
Red S
1 GB
Red M
3 GB
Red L
6 GB
Red XL
10 GB
Red XXL
20 GB
Black
30 GB
Smart M
500 MB
300 min
Smart S
200 MB
50 min
LTE Max for all tariffs up to 375Mbit/s
Voice Flat
Roaming in EU EU, US, TR, CH
Handset Insurance
1000 mins.
International
Talk &
Text
9 ct. Min
/ SMS
Special
750MB
200 min &
VF Flot
All Net
750MB
All net
flat
CallYa PrePay
TV Packages
HD Premium Plus
19 additional HD and
SD channels
(US Sports, Music, EU
Series, etc)
Internet & Phone
Cable 32
DSL 16
Cable 400 Cable 200
DSL 100
GigaKombi: Experience all 4 starting from 19,99€
HD Premium
19 additional HD
channels
(Documentaries, Series
and Sports)
Basic TV
39 HD & 100 SD channels
Vodafone TV
39 HD & 100 SD channels
Time-shifting and recording
Video on Demand
Cable 100
DSL 50
TV Connect (for all customers without cable access)
Pay TV options
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Consumer
Key messages:
Notes:
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
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Your personal team
Consulting, project
and service
management
End-to-End
solution-oriented
coordination
- Global Data Service platform GDSP
- Connected Products for e2e solutions
Unified communication
and workplace solutions
400.000 km fiber & coax network
National and global coverage
Enterprise product portfolio
Cloud & Hosting Security IoT solutions Unified Comms
Converged
Mobile & Fixed
Connectivity
Our experts
Fixed and mobile converged access
Tangible customer experience
with VoLTE and WiFi Calling Multi service: Voice, All IP, Internet, VPN
High performance and availability
- Private and public cloud solutions
- German data centres with enterprise grade connectivity
- Data and Voice encryption
- Cloud and fixnet security solutions
Access
Applications Unified Comms Cloud & Hosting Security
Fixed Access (xDSL, Fiber, Cable)
Mobile Access (UMTS, LTE, WLL, Femto)
Traditional Voice (ISDN/GSM) Inbound & Contact Centre Voice
Services
Data
Services
IP Voice (All IP / VoLTE)
Internet (Fixed/Mobile)
Ethernet IP VPN
(Fixed/Mobile)
IoT
Our partners
Vodafone Germany: Enterprise
Business structure
VGE
Cor-
porate Public
SME
SOHO / SE
Product Structure
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 50-499 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
Reference
customers
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Enterprise
Key messages:
Notes:
• 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
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Vodafone Germany: Technology
Mobile network key performance indicators
Fixed network performance indicators
Data usage indicators
Population coverage Q1 16/17 (%)
Fixed household coverage Q1 16/17 (%)
59.1
97.5
NGN coverage ADSL coverage
Spectrum holdings
FY 15/16 FY 16/17
Q1 Q2 Q3 Q4 Q1
Base stations (000s)
23.8 24.0 24.1 24.4 24.4
High capacity backhaul (%)
89.0 89.2 90.2 90.0 90.4
Data sessions >3Mbps (%)
82 82 84 85 86
Dropped call rate (%)
0.57 0.55 0.46 0.44 0.46
Technology Image
99.6 94.8 88.9
2G 3G 4G
Frequency Holdings Renewal date
700MHz 2x10MHz 2033
800MHz 2x10MHz 2025
900 MHz 2x 10 MHz 2033
1500 MHz 1x 20 MHz 2033
1800 MHz 2x 25 MHz 2033
2.1 GHz 2x 10 MHz &
2x 5 MHz 2020 &
2025
2.6 GHz 2x 20 MHz &
1x 25 MHz 2025
FY 15/16 FY 16/17
Q1 Q2 Q3 Q4 Q1
NGA HH passed (m)
22.6 23.0 23.3 23.3 23.7
o/w Wholesale 8.9 9.3 9.6 9.6 10.0
o/w On-net 13.7 13.7 13.7 13.7 13.7
homes reached by owned NGA (%) 35 35 35 35 35
FY 15/16 FY 16/17
Q1 Q2 Q3 Q4 Q1
Mobile Data traffic (PB)
48.2 52.5 58.2 60.6 66.8
Mobile Data traffic growth (%)
3 9 11 4 10
Average SMP usage (MB) 585 633 692 774 838
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Technology
Key messages:
Notes:
• 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. 2014.
• 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.