Building a converged communications leader. Matthew Kirk, Group External Affairs Director Media and Telecoms: 2017 & Beyond 2 March 2017

Transcription

1 Building a converged communications leader Matthew Kirk, Group External Affairs Director Media and Telecoms: 2017 & Beyond 2 March 2017

2 Vodafone in 2012 Revenue & Value exposure, FY2011/12 Data Other 15 % 13 % 72% Metered Mobile Voice & Text Enders Analysis 2012 Conference: Vittorio Colao Disintermediation risk Supermobile strategy democratising data Unified communications Europ e AMAP 43 % 15 % 43% Verizon Wireless The sector needs consolidation We are happy to be a pipe if we are a great pipe Chart sources: Vodafone ARA FY2011/12, broker analyst SOTP estimates 2

3 Key industry drivers 4G/4G+/5G Fiberisation CLOUD Internet of Things 3

4 Vodafone s strategy A converged communications leader Core footprint Europe, Africa and India Number 1 or 2 Co-leadership mobile network, with a clear path to Convergence Growth engines 1. Data 2. Convergence 3. Enterprise Deeper and stronger in existing markets Organic investment Spectrum Acquisitions Co-leading data network quality in 15/21 markets NGN assets in all key markets H1 Results SR growth +2.3% EBITDA growth +4.3% 4

5 Substantial investments over last 3 years Capex 1 (o/w 19bn Project Spring) 253,000 new and upgraded base stations to improve coverage and quality 132,000 new high capacity backhaul links for improved data experience Spectrum and licences 2 17 markets have 800/700 spectrum for 4G (vs. 4 in 2013) 17 circles in India with 3G/4G to increase data quality Acquisitions KDG, Ono, Ziggo JV, Hellas Online, Cobra acquired leading fixed and IoT 3 companies to become a fully converged operator Total 63bn 35bn 10bn 18bn 1. Accrued capital expenditure 2. Renewals and acquisitions 3. Internet of Things ( IoT ) previously called Machine-to-Machine 5

6 Vodafone today: improved NPS and commercial momentum Customer experience Growing customer base Consumer NPS 1 (points) Customer net adds (000s) 2 Gap to next best competitor Gap to third Mobile contract Fixed broadband ,290 1,135 1,425 1,415 1, (3) Q3 15/16 Q4 15/16 Q1 16/17 Q2 16/17 Q3 16/17 Q3 14/15 Q3 15/16 Q2 16/17 Q3 16/17 1. Gap to next best based on 21 markets, gap to 3rd based on 20 markets and represents the simple average of the difference in Consumer NPS between Vodafone and the 3rd ranking competitor. In markets where Vodafone is the 3rd ranking competitor the negative difference between Vodafone and the 2nd ranking competitor is used. 2. Mobile contract additions in Q3 16/17 excludes a 125,000 impact in the UK following a one-off customer base adjustment, reported +923,000. All net adds excludes Vodafone Netherlands in Q3 16/17 6

7 Vodafone today: Europe s broadest NGN footprint 1 Wholesale NGN (millions) Own NGN (millions) Population coverage 61% 38% 72% 88% 53% 94% Germany Italy Spain UK Portugal VodafoneZiggo NL JV 90m 12% households passed with NGN (incl. wholesale) 38m 24% households passed with own NGN penetration penetration 1. Excludes three million wholesale NGN homes passed in Greece and Ireland 7

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9 Vodafone s contribution to the gigabit society Social purpose Impact Tax & Total Economic Contribution 1 : 15.6bn 2025 Transformation Focus Areas Catalyse economic growth, equality and empowerment through digital networks and services Digital Inclusion 30m M-Pesa customers 6bn transactions p.a. Vodafone Foundation: > 700m to date Women s Empowerment Energy Innovation Youth Skills and Jobs Connect 50m women living in EMs by tonnes of GHG saved per tonne emitted 2 100k e-school users at Vodacom 1. See Vodafone s Taxation and our total economic contribution to public finances report 2. Greenhouse gas emissions saved in FY2015/16 9

10 Regulation should support investment and competition European Framework review: key proposals EC has committed to the idea that investment and competition are key... supporting Gigabit investments... ensuring competitive access conditions to very high capacity networks Minimum 25 year spectrum licences Future remedy of choice is passive duct and pole access No material regulatory impact on cable networks Further harmonisation of EU regulation 10

11 Sustainable investment requires adequate returns Vodafone Europe: Capex (incl. spectrum), Depreciation & Amortisation, EBIT and EBIT margin % 18% 16% billions % 12% 10% 8% 6% 2 4% 2% 0 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16 Capex (incl. spectrum) D&A EBIT EBIT margin (RHS) 0% Chart source: Vodafone results restated in euros and adjusted to reflect full ownership of Italy in all periods and pro-forma Ono results in FY2014/15 11

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