Post on 13-Apr-2018
Vodafone Germany
Open Office
29 September 2016
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Disclaimer
2
Introduction
• Strategy and Consumer Mobile
• Consumer Fixed
• Enterprise
• Technology
Content
3
Vodafone Germany
Open Office
Dr. Hannes Ametsreiter CEO Vodafone Germany
Snapshot Germany
5
20%
53%
10%
12% 5%
33%
37%
30%
€18.3bn
FY 15/16
€18.3bn
FY 15/16
United Internet Telefonica
Deutschland Unitymedia Vodafone Deutsche Telekom
83m Population
€13 Mobile ARPU
Smartphone
penetration 137% Mobile
penetration
76%
75% Fixed broadband
penetration
Avg. TV MoU
per day
223
1. excl. Wholesale Revenue, incl. TV revenues, reflects only the market based on reported figures
Mobile Service
Revenue Share
Fixed Revenue
Share1
Market
A leading integrated communications company
6
TV Fixed Mobile
TV Subscribers (m), Q1 16/17 Broadband customers (m), Q1 16/17 Connections1 (m), Q1 16/17
43.4 41.1 41.9
2.82
7.8
Strong position in a 3-player market
Fastest growing broadband operator
1. Including IoT/MVNO connections
Cable
2.8
5.9
12.8
DSL 4.4
3.1
6.4
+252k YoY +415k YoY +140k YoY
2. Including IPTV and SAT
Kabel Deutschland Project Spring
Investments in Project Spring and KDG are paying off
7
Q1 16/17
0.46%
Q1 15/16
0.57%
Q1 14/15
0.77%
Q1 16/17
89%
Q1 15/16
78%
Q1 14/15
70%
€300m
Run-rate in FY 17/18: on track (80% secured
end of FY 15/16)
€3.5bn NPV (increased from €3.0bn): on track
Drop call rate
4G population coverage
4G customers (m) 5.5
Q1 14/15
1.5
8.4
Q1 15/16 Q1 16/17
+7%
Kabel Deutschland organic service revenue growth
in FY 15/16 – Maintaining strong momentum
Cost & Capex Synergies
Revenue Synergies
Turnaround achieved: with growth since Q4 15/16
8
Organic growth rate vs. previous year (%)
Incl. Kabel Deutschland
(1.8)
Q2
14/15
(3.6)
(3.9)
Q1
14/15
(5.5)
(5.4)
(5.6)
(6.6)
0.3
Q4
15/16
1.6
(0.3)
Q1
16/17
Q3
13/14
(8.0)
(8.6)
Q2
13/14
(6.3)
(6.8)
Q1
13/14
(4.8)
(5.7)
Q4
12/13
(2.8)
(3.5)
Q3
12/13
0.4
(0.2)
(1.7)
(0.4) (1.8)
Q2
15/16
(2.8)
(1.2)
(3.5)
Q1
15/16
(2.1)
Q4
14/15
(3.2)
Q3
15/16
Q3
14/15
1.6
Q2
12/13
2.4
1.6
Q4
13/14
(1.5)
Service Revenue Mobile Service Revenue
Strong commercial momentum: across segments
9
1
Service revenue YoY (%)
Total Mobile Postpaid
Revenue
Mobile Prepaid
Revenue
Fixed DSL
Revenue
Fixed Cable
Revenue
1. Impacted by an accounting reclassification of fixed line revenue. Reported fixed cable growth in Q1 was +9.5%,
underlying growth was +6.5%.
(1.2)
Q1 16/17 Q1 16/17
+4.3pp
Q1 15/16 Q1 16/17 Q1 15/16
6.6 +2.8pp
1.4 (1.7)
Q1 15/16
(0.9) (1.7)
+0.0pp 1.6
9.5
6.5
Q1 16/17
(5.2)
(12.2)
Q1 16/17 Q1 15/16 Q1 15/16
+13.6pp
-0.1pp
The future is digital and connected.
10
Our Vision: GIGABIT COMPANY
11
Power to you
“we empower the digital society” “#1 in speed and power”
Superior infrastructure and
convergent products
NETWORK AND PRODUCTS
Strong, emotional brand and
customer orientation
BRAND AND CXX
More innovative, focused, team
oriented: “winning mindset”
EMPLOYEES
Vodafone has a unique Gigabit positioning in the German market
12
4G
Gigabit zone
Ultra-high speed Technologies (>100 Mbit/s, evolving to
>1Gbit/s)
Copper Technologies
3G
Fixed
Broadband
Mobile
No Fixed Broadband
Attractive, profitable growth opportunities in our core business
13
Value positioning
More-4-More
Base Management
Convergence / HH penetration
GigaTV
Continuous growth in broadband
Growth in fixed
IoT
Convergence
Cloud and Hosting
Based on superior infrastructure
Mobile: Cable:
Consumer Enterprise
DOCSIS 3.0 DOCSIS 3.1 4G 4.5G 5G
Base Management
Unified Communications UCC
Differentiation: Customer eXperience eXcellence / CARE
14
Connectivity Always in control Reward loyalty Easy access
EX
AM
PL
E
GIGASPEED
1st operator offering
4G Max for ALL mobile
customers
Red Button
Direct access to agent
– immediate help 24/7
Speed up to 375MBit/s
Legacy2Red
Biggest mobile base loyalty
campaign in history of
Vodafone Germany
GIGATRAVEL
1st operator offering worry
free roaming for all new/
renewed contracts
KP
I Migrating 1.8m customers
to new tariff portfolios
this FY. NPS +16 pts.
EU roamer penetration
pushed from 27% to 52% in
last 12 months
MeinVodafone app
“connect test” winner with
>250m app visits p.a.
15
Consumer product simplification
Digitising Services
Enterprise interaction/ simplification
Network & IT enhancement
Optimising procurement spend
Process cost optimisation
Fit4Growth: driving efficiency to fuel profitable growth
Summary: back to growth
16
• 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
Strategy &
Consumer Mobile
Dr. Hannes Ametsreiter CEO Vodafone Germany
Dr. Andreas Siemen Chief Financial Officer
• Integrated offering
• Covering premium segment via Vodafone brand and no frills market via Otelo
• Focus on profitable growth in the direct channels and ‘more-for-more’ customer value enhancement strategy
Clear positioning in challenging market environment
• More-for-more moves in
premium segment
• High promotional activity
in no-frills segment
Competition Regulatory
• EU Data roaming
• MTR regulation
• Theoretical reduction of MTR rate by 50%
would impact service revenue growth by
1.5ppt, margin impact is c.25% of revenue
impact
• Proceedings ongoing, decision in December
Vodafone Positioning
18
Prepaid active base turnaround
FY 2016 FY 2014 FY 2015 Q1 2017
+1.1%
-9.1% -3.0%
Postpaid Subscriber Growth
Excellence in Base management
We continue to drive the business back to growth
Active Prepaid base
15.5
FY 2014
16.2 16.6
FY 2015
16.6
FY 2016
+8k
Q1 2017
+350k +741k
Note: Postpaid customers include Enterprise
• -15% Cancellations
• +16 Points NPS improvement
• +200MB Data take-up
1 million customers proactively migrated into latest portfolio
Customer value through “More-for-More”
Postpay
Inflow ARPU +€3
LTEmax
EU roaming
19
Consumer Mobile
Direct GA share +7pp YoY
from 35% to 42% in Q1 16/17
(m)
We cover both ends of the two-tier market
Pre
miu
m
No
frills
€20-30
20
• 4G coverage: speed & quality
• Convergence offerings
• Brand & customer experience
Continued differentiation
Consumer Fixed
Dr. Manuel Cubero Chief Commercial Officer
Florian Landgraf Head of Consumer Fixed Business
• Converged offering nation-wide
• Leveraging speed advantage in cable
• Enabling future TV experience
Clear positioning in challenging market environment
22
Competition Regulatory
• Risk of “re-monopolisation”
with vectoring • Continued high promotional
activities
• Increasing demand for high
speed
Vodafone Positioning
Note: DSL customers and revenues include Enterprise
Broadband: continuous cable growth & DSL turnaround
Growing DSL base (m) Growing cable base (m)
Convergence offer Unmatched Speed
23
GigaKombi
runrate
RedOne
runrate
Nov 2015
0
400 mbps
100 mbps
Tomorrow
200 mbps?
>1000 mbps
Today
VDSL share %
-128k
2.822 2.805 -17k
+16k
Q1 16/17
2.821
FY 15/16 FY 14/15 FY 13/14
2.950
15% 13%
6% 2%
FY 13/14
2.178
+450k
3.020 2.628
+392k
FY 15/16
+92k
3.112
Q1 16/17 FY 14/15
Deutsche Telekom Vodafone
Convergence gross adds
HH ARPU
NPS
Churn
Convergence benefits
7.3 7.3
FY 13/14
7.3
FY 15/16 FY 14/15
Premium TV share %
23% 24%
25%
Vodafone maintaining largest TV subscriber base in Germany
TV business: penetrating stable base with new services
24
TV direct subscribers (m) Key features
Premium TV
• Continuous increase of Premium TV penetration
• Increasing TV ARPU through incremental
product take-up
• Re-aligned TV product portfolio in August
2016, bundling DVR to entry level product
VOD PAY TV 4 PARALLEL
RECORDINGS
REC
DVR
HD
Fixed Line: growth opportunities
Leverage Cable advantage
• 400 Mbit/s today and we
keep our powder dry for
more!
• Docsis 3.1 to enable >1Gbit/s
• All content
• All networks
• Maximize VDSL share
• GigaTV for DSL base
• Leverage 4G in DSL white
spots
Giga TV – a new TV experience Non-Cable footprint
25
• All Features
• All Screens
Enterprise
Alexander Saul Director Enterprise Business Unit
Anna Dimitrova Director Strategy & Digital
Clear positioning in challenging market environment
• VGE: unique global positioning with Vodafone Global Enterprise
• Mainly a two player market
• Pricing pressure continues
• Combined mobile/fixed offer
from single source becomes
standard
• Opportunities in Fixed, Cloud & Hosting and Unified Comms
• Further expand position as world leading mobile provider for IoT
Vodafone Positioning
Competition International leverage
27
Vodafone Enterprise Strategy to drive business back to growth
Enterprise Strategy: Top Priorities Market size and share (FY 15/16)
High potential
for Vodafone
to grow to fair
share
Strong market
position in
mobile
Others Others
Mobile Fixed For illustrative purposes only
28
Enterprise market trends: growth opportunities
Enterprise market trends Vodafone Enterprise solutions
One Net Business…
…is our core differentiator in Unified
Comms
Digitisation drives mobility
• Unified Comms solutions offer flexibility,
efficiency and effective collaboration
• All IP enables seamless communication
Dedicated Cloud & Hosting
Line of Business…
…is building market credibility
as we grow
Cloud is driving corporate strategies
• 7 out of 10 German companies use
Cloud services
• Expected benefits are: cost advantages,
shorter TTM and worldwide availability
Vodafone IoT…
…with substantial potential for
further growth by moving towards
vertical solutions
IoT reaches mainstream
• IoT installed base of 26 billion units1
expected by 2020
• Shift from functionality and performance
to quality of information
29 1. Source: Gartner estimate of global IoT units (cellular and non-cellular)
Technology
Dr. Eric Kuisch Chief Technology Officer
Gerhard Mack Chief Commercial Operations Officer
Voice over LTE Nationwide available as first provider in Germany VoLTE and VoWiFi customers approaching 1 million
Connect test confirms
Best Voice Network – almost no dropped calls
LTE population coverage at 89%
The Vodafone Network Today | Premium Mobile Network
of Germany
modernised
of all
Big Cities
of all
Motorways
LTE with 375 Mbps currently available in 22 cities, 1 Gbps in pilot areas by end of 2016
24,400 Base station sites
8.4m 4G customers (1.5m in April 2014)
+ 240% Data traffic since Apr. 2014
Lowest
Dropped Call Rate Drops reduced by 40%
since Apr. 2014
Fastest Vodafone Network Download Speed increased by 60%
since Apr. 2014
31
>90% of base
stations with high
capacity backhaul
The Vodafone Network Today | New Opportunities with our Cable Network
32
6000 FN
134,000
Amplifiers
Ca. 8.4m
Connected Homes
1,800 Hubs
2.2 m
Splitter / Branches
31,400 km
Cable Ducts
Ca.15.3 m Homes Passed
2 Playout Centres &
3 Data Centres
26 B-PoPs
Highly reliable network (99.9%)
Network is under- ground, providing high robustness
and stability
End-to-end monitoring and service approach
(including CPE specification, manned installation and
repair)
Highly standardised network components due to
uniform network history
151 TV (TPoP)
323 Docsis (CPoP)
242 VoD (VPoP)
5m households
with up to 400 Mbps cable speed
(12.3m total marketable households)
over 400,000 km Fibre- and Coax-Network
>1,400,000
WLAN Hotspots
32
100 Mbps
50 Mbps
VDSL LTE
We are the blueprint
for a digital agenda
2 years ago…
Cable
50 Mbps
33
100 Mbps
50 Mbps
Vectoring
We are the blueprint
for a digital agenda
Today…
Technology-Mix of the future
already today…
Cable
400 Mbps
LTE
375 Mbps
225 Mbps
4,5G
34
100 Mbps
400 Mbps
1 Gbps
375 Mbps
250 Mbps
LTE Vectoring
1 Gbps
Cable
We are on our way to
the Gigabit-Society
Cable and 5G as leading
technologies to exceed the
increasing demands of our
customers…
5G
35
Ensure Gigabit-Readiness | Network Innovation & Product Roadmap
Spectrum Utilisation Competitive Spectrum
positioning
LTE Advanced • Vodafone Crystal Clear Technology (EVS)
• Carrier Aggregation
• LTE-V(ehicle)
• NB-IoT
Cable Network
Evolution • DOCSIS 3.1
• Digitisation
One Sales
Foundation • Next generation Sales
• X-channel sales flows
• 360° view on products
and offers
Giga TV • Superior user
experience in
Video/TV anywhere
One Net Business • Digital Workplace from the Cloud
• Full Unified Communication and Collaboration Feature Set
36
Thank you