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Vodafone Open Office Enterprise London 27 September 2012
Disclaimer This presentation 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 by referring to the information contained on the final slide of the CWW opportunities and integration plan presentation and under the headings “Principal risk factors and uncertainties” and “Forward-looking statements” in our annual report for the year ended 31 March 2012. The annual report can be found on the Group’s website (www.vodafone.com). The presentation also contains certain non-GAAP financial information. The Group’s management believes these measures provide valuable additional information in understanding the performance of the Group or the Group’s businesses because they provide measures used by the Group to assess performance. However, this additional information presented is not uniformly defined by all companies, including those in the Group’s industry. Accordingly, it may not be comparable with similarly titled measures and disclosures by other companies. Additionally, although these measures are important in the management of the business, they should not be viewed in isolation or as replacements for or alternatives to, but rather as complementary to, the comparable GAAP measures. Vodafone, the Vodafone logo and One Net are trade marks of the Vodafone Group. Other product and company names mentioned herein may be the trade marks of their respective owners.
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Agenda Welcome to Vodafone’s Open Office. Today you will take part in the following sessions: Vodafone Global Enterprise, One Net, M2M and Key customer trends. You will also have one free session during the day in which to catch up with emails/phone calls etc.
Please refer to your lanyard for your specific timetable for sessions 1 to 5. 09.00 - 10.00
Enterprise introduction and CWW
10.15 - 11.00
Session 1
11.15 - 12.00
Session 2
12.15 - 13.00
Lunch
13.15 -14.00
Session 3
14.15 - 15.00
Session 4
15.15 -16.00
Session 5
16.00 -16.30
Summary and close
Floor plan Key Customer Trends
Global Enterprise
M2M LZ1
LZ 2
One Net
Free Room
Enterprise introduction & lunch Main Entrance 3
Vodafone Global Enterprise: global scale, multinational strength Global account managers in
Serving the world’s largest multinationals
…who employ over
…and generate turnover of
Representing worldwide
50 countries
1,423 accounts
40m people
>€10 trillion
20% GDP
Key financials
Commercial performance
YoY Growth
FY 10/11 FY 11/12 2% 6%
Northern & Central Europe
Average contract length (months)
FY 10/11 22
FY 11/12 23
Southern Europe
12%
21%
Total connections (‘000s excl. M2M)
3,638
4,213
AMAP
13%
8%
Total contract value1
£891m
£1,167m
Service revenue
8%
11%
FY 11/12 revenue (% split) Voice Data Fixed
Data revenue as % of total 35%
6%
29% 35% 59%
FY 10/11
Total Enterprise smartphone penetration (%) Q3 11/12 Q4 11/12
32
34
38
Germany Netherlands
4
1.
42 43
41 35
36
Spain
Total value of contracts won in this period
UK
FY 11/12
New customers and renewed contracts
Vodafone Global Enterprise: global scale, multinational strength Key messages • Corporates looking to consolidate suppliers cross-border • Smartphone and tablet penetration pushing data take-up • Data revenue expected to surpass voice revenue in the next twelve months • Unique structure, difficult to replicate our scale and geography
• Building deeper relationships through consultancy and other value-added services Notes:
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Vodafone One Net: success with Unified Communications Vodafone One Net is a fixed mobile converged solution, and is the foundation of our Unified Communications strategy for business. It provides all the benefits and flexibility of mobile with the features of fixed, in one solution. One Net was launched in 2008 and is live in nine markets. The One Net proposition Increased productivity
Lower overall costs
Simplified user experience
Unified voice One service
One directory
Fixed & Mobile Outbound
Presence & IM John Smith, VF UK In a Call
Access voicemail via 121 or email client Inbound rings all active devices Unified voice
One voicemail
Conferencing & collaboration One number
Average enterprise spend1 SoHo (%) (€39 per month/employee) Mobile Fixed IT Service Packaged s/w Comms. Infr.
0%
SME (%) (€77 per month/employee)
Corporate (%) (€200 per month/employee)
3% 14% 11%
16%
17%
20%
41%
3% 7% 14%
24% 41%
34%
56%
One Net business performance2 One Net customers
• 2m users; +47% growth YoY • 8.3% penetration in Europe
Customer churn
• 2 - 6 ppt lower than blended base
• €15 - €17 (including fixed) Incremental One Net ARPU • c.+40% higher than average base Revenue growth
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1. 2.
• +61% growth YoY
Based on IDC, MZA, Vodafone estimates & EITO Based on Post Implementation Review
Markets today UK
Italy
Germany
Portugal
Spain
Czech Republic
South Africa
Netherlands
Ireland
VGE
Vodafone One Net: success with Unified Communications Key messages • IP Centrex market forecast to grow 40% YoY1 • One Net gives Vodafone access to a much greater share of customers’ technology spend • One Net drives higher ARPU and lower churn • Major driver of productivity for SMEs, not just cost savings Notes:
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1.
Source: IDC 2010
Machine to Machine: innovation and regulation creating growth opportunities Machine to Machine (M2M) market1 2011
2015
2011
Global market (€m) 2,800 5,900 Vodafone addressable market (€m)
2011
2015
730 2,000 Global connections (m) 107 311
Market dynamics and growth drivers • Largest sectors: automotive (telematics) and energy (smart metering) • Key growth drivers: new services and innovation, regulation, sustainability, cost savings and productivity improvement Key performance indicators2 Number of M2M connections 8.3 million (June 2012)
Average contract length 48 months
European market share3 c.24%
Average time from first customer contact to first invoice 13 months (24 months in automotive)
Strengths and differentiators • M2M expertise: more than 20 years M2M experience across market sectors in a globally managed team • Global M2M platform: providing tools for customers to control their M2M communications remotely across large areas and many countries • Single global M2M SIM: available for all devices, irrespective of location • Extensive network: using the global reach of the Vodafone network and our partner markets • Dedicated customer service and technical support: over 100 dedicated M2M specialists advising on every project stage • Connected M2M Products: we provide customers with bundled managed connectivity, hardware and software • Partnerships: established partnerships with 65 leading companies across the M2M Value Chain, e.g. System Integrators
Application Service Providers
Module Suppliers
Leading industry analyst rankings 1st Place in M2M Communication Service Provider Scorecard, October 2011 European M2M Telecom Service Provider of the Year 2011 1st Place in M2M Leaderboard, August 2012 Leader in the global M2M services market , April 2012
Leading customer experience “We are the leader in our market – but we would not be where we are now without Vodafone.” Roy van Keulen, Vice President eBusiness, TomTom
“Our customers need to be confident we’re tracking their assets at all times. Vodafone has helped us meet that need and establish a reputation for high-quality customer service.” Greville Coe, Managing Director, Isotrak
1. ABI Research (2011), Analysys Mason (2011), Berg Insight (2011) and internal estimates 2. Internal data and estimates
8 3. Beecham Research Ltd (2011), market share by number of connections
2015
Machine to Machine: innovation leading growth opportunities Key messages • A rapidly developing market with strong long-term growth prospects • Characterised by long customer contracts, long lead times, low ARPUs and high margins • Vodafone has a strong, global customer base • Vodafone is well placed to increase market share
• Core strengths of a strong network, global SIMs, industry partnerships, a dedicated data management platform and expert staff • A unique structure, hard to replicate Notes:
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