Vodafone Group Results: For The Year Ended 31 March 2018
Vodafone Group Results:for the year ended 31 March 201815 May 2018
DisclaimerBy watching this webcast, you agree to be bound by the followingconditions. You may not disseminate these slides or this recording, inwhole or in part, without the prior consent of Vodafone.Information in this presentation relating to the price at which relevantinvestments have been bought or sold in the past or the yield on suchinvestments cannot be relied upon as a guide to the futureperformance of such investments.This presentation does not constitute an offering of securities orotherwise constitute an invitation or inducement to any person tounderwrite, subscribe for or otherwise acquire or dispose of securitiesin any company within the Vodafone Group.This presentation contains forward-looking statements, includingwithin the meaning of the US Private Securities Litigation Reform Actof 1995, which are subject to risks and uncertainties because theyrelate to future events. These forward-looking statements include,without limitation, statements in relation to Vodafone Group’s financialoutlook and future performance. Some of the factors which may causeactual results to differ from these forward-looking statements arediscussed on the final slide of this presentation.This presentation also contains non-GAAP financial information whichthe Vodafone Group’s management believes is valuable inunderstanding the performance of the Vodafone Group. However, nonGAAP information is not uniformly defined by all companies andtherefore it may not be comparable with similarly titled measuresdisclosed by other companies, including those in the Vodafone Group’sindustry. Although these measures are important in the assessmentand management of the Vodafone Group’s business, they should notbe viewed in isolation or as replacements for, but rather ascomplementary to, the comparable GAAP measures.Vodafone, the Vodafone Portrait, the Vodafone Speechmark, VodafoneBroken Speechmark Outline, Vodacom, Vodafone One, The future isexciting. Ready? and M-Pesa, are trademarks of the Vodafone Group.Other product and company names mentioned herein may be thetrademarks of their respective owners.2
Overview of the yearVittorio ColaoGroup Chief Executive3
An exceptional year of progress and transformationStrategicProgressOperatingmomentum Acquisition of leading cableassets in Germany & CEE Record NGN and convergedcustomer additions Strategic fixed broadbandpartnerships in Italy / UK Third consecutive year ofEBITDA margin expansion India merger on track Accelerating Digital Vodafoneto create incremental valueExceeded guidanceMarketoutlook Positive momentum inGermany, UK, EU cluster andAMAP More challenging conditionsin Italy and SpainDividend per share 2%4
Operating highlights of the yearMaintaininggrowthmomentum1.6%1Group servicerevenue growthto 41.1bnLeadingnetworkStrong datagrowthFastest growing Leveraging scalefixed broadband and reach inproviderEnterprise94%63%1.3m2.1%4G coverage2growth in mobiledata trafficfixed broadbandnet addsEnterprise servicerevenue growth365%0.8mHomes passedwith NGN2converged netaddsClear NPSleadership17/20markets asconsumer NPSco/leaderAll growth rates in this document are organic and year-on-year, unless otherwise stated, with Vodafone India, Vodafone Netherlands and Vodafone Qatar excluded from organic growth calculations1.Excluding a German legal settlement in Q4 17/182.Europe including VodafoneZiggo3.Excluding the impact of EU regulation (the net impact of out-of-bundle roaming & international visitors, and mobile termination rate changes)5
Ongoing commercial momentumEurope - Customer net adds (000s)Mobile contract1AMAP - Customer net adds (m)Fixed broadbandMobile contractMobile 0.5234173Servicerevenuegrowth0.6316237262Q4 16/17Q1 17/18Q2 17/18Q3 17/18Q4 17/18Q4 16/17Q1 17/18Q2 17/18Q3 17/18Q4 djusted for the phasing out of Talkmobile in the UK during FY 17/18Excludes a legal settlement in Germany in Q4 17/18Includes adjustments in H2 17/18 relating to changes in disconnection rules and regulator mandated changes in distribution policies, which affected Vodacom and Egypt6
Key markets: EuropeGermanyItalyUKConsumer leLow-mid end intense 1.81 0.7 1.41 1.0Q4 service revenuegrowth (%)FY EBITDAgrowth (%)Strong customer growthand wholesale drag 8.31Broadband growth offsettingmobile competition 4.6#1Spain(Enterprise)Consumer growth aided byrecord broadband net adds 1.41#1Competitive pressure,broadband losses 5.071.Underlying growth rates which exclude various factors. See Appendix pages 40-43 for more details on each country
Key markets: AMAP and IndiaSouth AfricaTurkeyEgyptIndiaConsumer e 5.2 14.3 18.7Q4 service revenueDriving bundles with Big Datagrowth (%)and personalised offersFY EBITDAgrowth (%) 5.2Customer growth, beatinginflation 22.6Customer growth, beatinginflation 14.9(21.2)Retaining customers atlower price points(34.5)8See Appendix for more details on Vodacom (page 44)
Key markets: Europe clusterFY 17/18 service revenue mix (%)1IrelandRomaniaPortugalCzech RepublicGreeceHungary10Q4 17/18 service revenue growth (%)OtherHungary²38Czech Republic215Ireland11211618 4.6bn of service revenueFY 17/18 share of Europe cluster service revenueAdjusted for handset financing in HungaryPresented under US ³ (3)Growing in most markets8Ireland3116Czech RepublicGreeceRomania1.2.3.FY 17/18 EBITDA growth (%)71110Romania (11)VodafoneZiggo³(4)Q4 -1%Improving margins9
Financial reviewNick ReadGroup Chief Financial Officer10
Full year financial highlightsService revenue ( bn)Adjusted EBITDA ( bn)Adjusted EBIT ( bn)43.041.1FY 17/18Underlying 2.6%3Free cash flow (pre-spectrum) ( bn) 47.2% 11.8% 1.6%1FY 74.0FY 16/17FY 17/18FY 16/17Underlying4 7.9%operating leverage & cost actions 33.6%24.84.1FY 17/18Strong EBITDA growth, lower D&AFY 16/17FY 17/18Supporting 2.0% growth in DPSExceeded full year guidance5All percentage growth rates in this document are organic unless otherwise stated, with Vodafone Netherlands, Vodafone India and Vodafone Qatar excluded from organic growth1.Excluding the benefit of a German legal settlement in Q4 17/182.Reported percentage growth in free cash flow pre-spectrum3.Excludes the impact of EU regulation (the net impact of out-of-bundle roaming & international visitors, and mobile termination rate changes), UK handset financing, and a German legal settlement4.Excludes the net impact of EU regulation (- 0.2 billion), the benefit from UK handset financing ( 0.5 billion), and settlements in UK and Germany ( 0.2 billion)5.Based on the Group’s revised guidance range of organic EBITDA growth of ‘around 10%’ and free cash flow pre-spectrum ‘to exceed 5bn’ set in November 201711
Bridge from adjusted to reported earningsFY 17/18 ( m)4,827FY 16/17 ( m)3,970389164Restructuring(156)(415)Amortisation of brand assets/other(974)(1,046)2131,052Operating profit4,2993,725Financing 1,969)(4,107)Profit/(loss) for the period2,439(6,297)n/aAdjusted ed EBITAssociatesOther income and expenseTax expenseNon-controlling interestsNon-operating income and expenseIndia (excl. Indus)Weighted average number of shares2 (m)Adjusted earnings per share (eurocents)11.2.Growth (%)21.6 1.9bn Luxembourg deferred tax asset write up Underlying effective tax rate 20.6%,reflecting mix of profits Medium-term rate now ‘low to mid 20s’(previously mid-20s) Net India writedowns/impairments:FY 17/18: 2.2bn, FY 16/17: 3.7bn44.2 26,757m ex. mandatory convertible bond (MCB) 729.1m shares purchased via MCB buybackReported excluding the impact of restructuring costs, significant one-off items and amortisation of acquired intangible customer bases and brand intangible assets12Weighted average number of shares includes a dilution of 1,013 million shares (2016: 1,369 million shares) following the issue of 2.9 billion of mandatory convertible bonds (‘MCB’) in February 2016
Sustained service revenue growthGrowth by region (%)Group organic service revenue growth (%)ReportedUnderlying12.92.52.42.32.42.21.5Q4 16/176.81.41.3Q1 17/18Europe underlying1EuropeQ2 17/181.1Q3 17/18AMAP7.87.96.26.82.41.91.70.80.80.30.42Q1 17/18Q2 17/18Q3 17/18Q4 17/181.81.42Q4 17/180.1Q4 16/17Q1 18/19 outlook:Key drivers of Q4 performance: Italy: Q1 impact from shift to ‘solar’ billing Europe1: good fixed growth 5.3%, mobile 0.3% UK: increased handset financing drag (IAS18 basis) AMAP: strong commercial momentum in South Africa,Turkey and Egypt Spain: actions taken to reposition pricing1.2.Excluding EU regulation, UK handset financing, and a German legal settlementExcluding the benefit of a German legal settlement in Q4 17/1813
All three growth engines contributingFY 17/18 organic service revenue growth contribution (pp)DataFixed /ConvergenceEnterprise0.6(0.7)(0.4)0.8Handset Financing(0.6)1.62Carrier, wholesaleand other 3FY 17/181.20.7EuropeanAMAP consumerconsumer mobile¹mobileConsumerfixed line 2Enterprise¹EU regulationUK handsetfinancingFY 18/19Outlook(IAS18):1.2.3.Excludes the impact of EU regulation and UK handset financingExcluding the benefit of a German legal settlement in Q4 17/18Other includes common functions and eliminations14
EBITDA growth supported by Fit for Growth( bn)(0.30.50.9(0.1)0.20.114.7(0.2)13.2OrganicFY 16/17 EBITDA(incl. Qatar)Direct marginNet operating costreductionUK handsetfinancingUK/GermansettlementsEU regulationOrganicFY 17/18 EBITDA(incl. Qatar)Expect to reduce net operating costs in FY18/19 for a 3rd consecutive year15
Third consecutive year of EBITDA margin expansionGroup adjusted EBITDA margin (%)31.6%30.6%30.8%Underlyingex. EU roaming,HF & settlements29.7%29.0%FY 12/13FY 13/1428.3%28.4%FY 14/15FY 15/16FY 16/17FY 17/183yr plan:Markets growing EBITDA faster than service revenue:12151517202216
Digital opportunity to sustain cost momentumDigital customermanagementDigital technologymanagement 2.5bn1 1.0bn1 DigitaloperationsEfficiencygains/capexoptimisation 3.0bn1OperationsDifferentiating the customer experience(AI digital support)Real time analytics to enablesmarter network planningSimplify and automate standardprocessesUK Chatbot trial (TOBi)15% of calls by the end of FY 18/19 170m saved in FY 18/19 through‘smart network’ planning & prioritisation200 bots active in Shared ServicesTotal addressable cost base1 8.0bn capex optimisation1.Addressable cost base: total identified spend within which savings can be made through the Digital Vodafone17
Capital mix – efficiencies driving increased investment in growthCapital allocation (%)1YoYGrowth:Success based (CPE)16% 3ppFixed7%flatIT/product transformation12%Mobile capability/coverage18%-1ppflatIT/product maintenance9%flatNetwork maintenance(mobile & fixed)FY 18/19e38%-2pp CPE: reflecting strong commercial momentum in fixed Fixed: cable network upgrade to increase speed Gigabit Plan IT: transformation projects to improve customer experienceand create agilityCapability/coverage: Declining 4G rollout in major markets as we approach target coverage 4G evolution, preparing for 5GMaintenance: Driving efficiency in network/IT maintenance capexFY 17/18FY 17/18 Group capital intensity: 15.7% (-0.4pp YoY) or 14.1% ex. CPEMedium-term outlook ‘mid-teens’ excl. Gigabit Plan1.Based on top five major markets18
01Spectrum costs – upcoming 5G auctions in FY19 & FY20Historical cash spectrum spend ex. India and NL ( bn) FY 17/18: Italy ( 0.6bn), UK ( 0.3bn),Germany ( 0.1bn)3.4 5G auctions across Europe during FY19& FY20– 700MHz and 3.4-3.7GHz bands1.51.6 Greater choice than in the past,opportunities to re-farm existing spectrum1.61.10.30.40.40.59 year averagespectrum cashspend 1.2bn Long-term average annual cash spendunlikely to changeSpectrumamortisationbelow 1bn1FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 181.Annual spectrum amortisation charge, adjusted for the assumption that the 3G auctions in 2000 in Germany, Italy and UK had taken place at the average price /MHz/popfor European 3G auction since 200819
Free cash flow covering the dividendFY 17/18 ( m)FY 16/17 ( m)Adjusted EBITDA14,73714,149Capital additions(7,321)(7,675)Capital creditors171(822)Working capital(755)(162)Net e cash flow4,0443,316(3,920)(3,714)TaxationDividends received from associates & investmentsDividends to non-controlling interestsOther1Free cash flow (pre-spectrum)SpectrumDividends to shareholdersLower capital creditors: reflecting final paymentsfor Project Spring in FY 16/17Includes reversal of 0.5bn UK handset financingbenefit in FY 17/18Greater than our cash dividend obligation in FY 17/18201.Relates to non-cash movements on share based payments and disposal of capital assets
Delivering FCF growth targetsLong Term Incentive Plan goals1New LTIP targetCumulative 3yr FCF pre-spectrum ( bn)Cumulative 3yr FCF pre-spectrum ( bn)Reported targetsAdjusted for Project 14.418.85Ontarget15.217.003x dividend historicaverage aximumScheme year211.Restated excluding India, in order to provide a comparable basis
Reported leverage and balance sheet positionNet debt ( bn)31.21.13.91.60.331.5(1.2)(5.4)Mar 2017FY FCF(pre-spectrum)7.7Dividends paidSpectrumMCB sharebuybackQatar sale /Vodacom shareplacingFX/otherMar 2018FY 17/18FY 16/172.52.59.4yrs9.6yrs2.1x2.2xIndiaMar 2018Liberty Global transaction: Increasing target leverage range to 2.5x-3.0x (2.0x-2.5xpreviously); pro forma FY2018 leverage 3.0x Financing to include c. 5-7bn of equity credit, includingc. 3bn of MCBs, maintaining a solid investment gradecredit ratingNet cost of debt (%)Average life of bond debtNet debt/EBITDA excl. India22
Vodafone-Idea: leverage and priorities post-completionKey prioritiesVodafone-Idea pro forma net debt ( bn) Equivalent to IDEA net debt INR25bn New management team appointed Implies a capital injection into VIL of 1bn, netof the sale of a c.4.8% stake in the JV to ABG Integration planning well advanced7.2 0.5(1.0)(0.8)VILnet debtcontributionVIL & IDEAstandalonetowers salesPotential saleof IDEA stakein enlarged Indus– Immediate c.20% site rationalisation– Avoid duplication of spend80%spectrumdebt6.91IDEA net debt@ 31-Marc.13 Fast start on synergies:Otherpayments²– Rapid spectrum refarming to add 4G capacity– US 2.1bn cost & capex run-rate savings in the 4th yearProforma netdebt of JVPro forma leverage 7.8x or 4.7x LTM EBITDAincluding run-rate synergies1.2.Idea net debt as at 31 March 2018 including certain pro-forma adjustments at the time of the merger announcement as per transaction definitions. Based on FX rate of EUR/INR 80.48Includes potential payments for spectrum liberalisation and for site exits, as per the requirements of the business23
Guidance1 for FY 18/19FY 18/19 adjusted EBITDA drivers ( bn)14.75Underlying0.6EBITDAgrowth(0.5)FY 17/18ReportedUK )(0.1)Qatar sale/IndiarechargesFXFY 17/18(rebased)0.21% –5 %UK handsetfinancingUnderlyinggrowth14.15 – 14.65FY 18/19GuidanceUnderlying adjusted EBITDA growth of between 1-5%2Free cash flow pre-spectrum of at least 5.2bn1.2.We have based guidance for the financial year ending 31 March 2019 on our current assessment of the global macroeconomic outlook and assume foreign exchange rates of 1:ZAR 15.1, 1: 0.87, 1:TRY 5.1 and 1:EGP 22.1. Guidance excludes the impact of licence and spectrum payments, material one-off tax-related payments, restructuring payments, changes in shareholderrecharges from India and any fundamental structural change to the Eurozone. It also assumes no material change to the current structure of the Group. Actual foreign exchange rates may varyfrom the foreign exchange rate assumptions usedAdjusted organic EBITDA growth excluding settlements and UK handset financing24
Strategy & ProgressVittorio ColaoGroup Chief Executive25
Transforming Vodafone: strategic capital allocationA converged leader in EuropeGermanyacquisitionData leader in AfricaStreamlined Safaricomholding 11.0mScaled leader in IndiaMerger on-trackHHRomaniaacquisition 3.1mHungaryacquisition 1.8mCzech Republicacquisition 1.5mVodacom 5.2% stake sale(for 1bn)HHHHSale of standalonetowers 1bn1Tanzania IPOOther AMAPHHInfrastructure ownerMerger of Indus &Bharti InfratelSale of QatarSimplificationSelf-supported scale261.The sale of Vodafone India’s and Idea’s standalone towers for 1.0 billion
Transforming VodafoneEurope service revenue mix (%)Europe MobileEurope NGN homes coverage mix (%)1Europe FixedOn-netStrategic partnershipWholesaleEBITDA mix (%)2EuropeAMAPWholesaleADSL6571856010015FY 12/1335FY 17/18FY 17/18ProformaMore fixed/converged23697577FY 12/13FY 17/18FY 17/18Proforma634FY 12/13254762931FY 17/1847FY 17/18ProformaInfrastructure ownerFY 17/18 proforma for the acquisition of Liberty Global’s Unitymedia asset in Germany and UPC assets in Central and Eastern Europe1.Includes VodafoneZiggo2.Europe includes Common Functions and eliminationsMore focused on Europe27
Fixed & Convergence: Unitymedia/UPC CEE acquisition supercharges our fixed strategyEuropean homes marketable (proforma)1 (m) 17mTotal homes165Total incl’ ADSL and NGN14454NGN wholesale11441Strategic wholesale partnerships26036363528Owned NGN network54% of homesNGN infrastructure in Europe (m)33337698710022VODpostdealDTVodafone OrangetodayLibertypostdealBT20TITEFVodafone becomes the leading NGN infrastructure owner in Europe1.2.3.Includes VodafoneZiggo and proforma for the acquisition of Liberty Global’s Unitymedia asset in Germany and UPC assets in Central and Eastern EuropeIncludes Telefonica (selected areas in Spain) and Open Fiber (Italy)Owned network based on Vodafone estimates as at Q4 17/1828
Fixed & Convergence: significant organic progressEurope NGN footprint expansion urestrategyBuy1GbpsJV with Siro progressing0.1m homes passedStrategicp’shipsFirst 7 cities announced,1 million premises targetedGermany: Gigabit plan1GbpsBuilding in 29 business parks;DOCSIS 3.1 upgrade commences shortly1GbpsNetwork shareIncreases homes covered to 4.0m(currently 2.7m)2.1m homes marketable, 2.7m homes passed2nd phase signed to access 9.5m in total by 20221Gbps1Gbps1GbpsFTTC/H roll-out underway0.1m own homes passedSpain rolling out DOCSIS 3.17.9m homes reached with 1Gbps291.Q4 17/18
Fixed & Convergence: delivering growthEuropean broadband net adds LTM (m)1Europe broadband net adds (%)BroadbandNGNConsumer ConvergedPenetration:Vodafone35% converged266% NGN1.1Deutsche Telekom0.74965144420.5Liberty elefonica (0.1)Q1 17/18Leading broadband net adds1.2.Last 12 months. Based on company reports. VodafoneZiggo JV is included within Liberty GlobalConsumer converged customers divided by consumer broadband customersQ2 17/18Q3 17/18Q4 17/18Record NGN and converged net adds30
Mobile data: leading data networksQuality and experience leadershipLeading network infrastructureDriving data usage and cost efficiencyNetwork NPS (points)Gap to next bestEurope data traffic (PB)Gap to third1515150.34% dropped call rate1Record lowFY 16/17Only 3% of 4G sites fully utilisedin busy hour1(1)FY 16/172,3091,432FY 17/1832FY 15/16Avg. monthly datausage 56% in Q4 61%92% data sessions 3mbps1FY 17/18Network co/leader in 14/20 marketsData above includes Vodafone India and JVs1.Europe2.Opex and depreciationDeep spectrum positionsacross all marketsEurope network costs2 2%100102102FY 15/16FY 16/17FY 17/18Cost per GB declining 35% p.a.31
Mobile data: 5G vision and phasingIndustry adoption likely to be similar to 4G4GLower costsInitial focus on high density areas5G50% devicepenetrationMid 2020s 20171st r Re-use existing site grid withactive Antennae/Massive MIMO201020184G4G 5G Opportunities: New IoTservices, selective FWAEmergency layerNationwideCities and townsDenseurban areas Microwave is an effective backhaul solutionfor 5G, given latency 0.25ms per hop2017 200902G Radio latency up to 10x lessthan 4G201220193G refarmed for 4G Spectral efficiency up to 4xtoday’s 4G12345678Consistent within current mid-teens capital expenditure guidance32
Mobile data: IoTMarket opportunityIoT market bn1232 11%CAGRENTERPRISEVodafone IoT Leading platform, footprint in180 2017202597 68m SIMs; 747m revenues( 14% YoY) 14m connected cars Narrowband IoT in 9 marketsEurope Consumer IoT devices (bn)2CONSUMER2.5Consumer othersWearablesSmart vehicles 11%CAGRConsumer electronics1.1Smart home2017 Launched ‘Smart home’ services, inpartnership with Samsung Extended to non-Vodafone customersand channels in April More markets, products and on-linemarket-place for developers launching in20182025331.2.Source: Analysys Mason Feb 2017 global forecast IoT B2B market; includes fixed, mobile and LPWA communication based servicesSource: GSMA April 2018
Enterprise: growing revenues and marginsService revenue growth (%)Improving marginOutperforming peers2 (%)FY 17/18Contribution margin improvementQ4 17/18 revenue growthReportedEx. regulation11.52.42.11.91.2 170bps ixedTotal Market-leading IoT platform Significant exposure (17% of revenue)to fast growing AMAP markets, 5% Low exposure to legacy fixed voice, 5% of revenue1.2.Vodafone Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Proactive review of accountprofitability Margin optimisation and costcontrol initiatives Closure of legacy networks in UK Global reach: IP-VPN platform in 77markets, reaching 275 PoPs NPS co/leadership in 19/20 marketsEuropean roaming regulation and MTRsCompetitors in alphabetical order: AT&T Business Solutions, BT Business & Public Sector, BT Global Services, Deutsche Telekom T-Systems, Orange Enterprise, Verizon Enterprise Solutions34
Customer experience excellence: NPS improvementQuality and experience leadershipNPS improvement over the last 3 yearsConsumer NPS (points)Gap to next bestGap to third1716NPS score improved1464Gap to next best improved17out of20marketsAverage score improvement to 8pointsnext best(2)FY 14/1520markets11215out ofFY 15/16FY 16/17FY 17/18Improving score vs. next bestand maintaining gap to third operatorsFurther progress to comefrom digital channels and platforms35
Digital Vodafone: transforming our commercial modelMarketingSalesFrom traditional ATL/BTL to applied Digital Marketing:real-time, contextual and personalFrom silos to seamlessly connected channelsMy Vodafone Apppenetration, 87%10 visits/month (vs. 3 retailvisits per year)Mobile acquisition digitalmix 25% (from 6% 3 years ago)Customer value managementServiceFrom clustered/campaign based to real-time,personalised, relevantFrom reactive to proactive, predictive and adaptivePowered by Big Data213m data bundles sold, 57%1.Data revenue 13%1Tobi chatbot805k interactions/month70% resolution rateDriving better customer experience, incremental value and lower costs1.At Q4 17/18 YoY36
Digital Vodafone: measuring commercial progressDigital CustomermanagementCVM campaigns enabled by Big Data Better targeting of the base1Digital channels share of sales mix1 Reduce reliance on indirect channelsMy Vodafone app penetration Improve customer engagementChatbots (% of contacts) Moving from mostly human to mostly digitalFrequency of contacts3 Blending the best of digital and humaninteractions1.2.3.Average of EU4Mobile and Fixed acquisitions and upgradesFOC requiring human intervention per yearDigital TechnologyDigital OperationsMarch ‘17March ‘18March ‘2115%35%100%9%11% 40%55%60%95%0%1%60%1.91.71.237
SummaryAn exceptional year of progress and transformation Vodafone to become the leading next generation infrastructure owner in Europe byacquiring Liberty Global’s cable assets in Germany and Central Europe Merger with Idea in India remains on track. Indus/Infratel merger agreedRobust operating momentum Record NGN and converged net adds Third consecutive year of margin expansion Accelerated progress on Digital VodafonePositive momentum in Germany, UK, EU cluster and AMAP; more challenging conditions in Italy and SpainGrowing dividends per share, 2% to 15.07 eurocentsOutlook2018/19 guidance: underlying EBITDA 1-5%; Free cash flow(pre-spectrum) at least 5.2bn38
Q&A39
Appendix40
Germany: strong customer growth offsetting wholesale headwindsKPIsCustomer experienceFinancial resultsService revenue growth (%)Customer net adds (000s)Consumer NPS (points)Gap to next bestMobile contractReportedGap to thirdFixed broadbandGrowth ex. regulation 1.61.812.51.20.6Q4 16/17Q4 17/18 #1 NPS, #1 service in Connect tests 4G up to 500Mbps in 40 cities 70% of cable gross adds 200Mbps(PY 48%)Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Mobile: continued momentum in directchannels, GigaCube sales, lower churn Mobile: 0.3% (Q3 1.8%); lower MVNO revenueand ARPU (SIM-only mix), offset lapping of MTR cut Fixed users moving to higher speeds: NGAcustomers up 209k to 4.6m (total 6.6m) Fixed: 4.2%1; consumer customer and ARPUgrowth 700k converged consumers ( 112k QoQ) FY EBITDA: 8.3%, margin 36.5%, 2.4pp1; focus ondirect channels and operational efficiencies411.Excludes the impact of a 0.1bn legal settlement in Germany. On a reported basis Q4 17/18 service revenue increased 5.9% and FY 17/18 EBITDA rose 10.7% and the margin increased 2.9pp to 37.0%
Italy: price competition in prepaid continues, record fixed net addsKPIsCustomer experienceFinancialsService revenue growth (%)Customer net adds (000s)Consumer NPS (points)Gap to next bestMobile PrepaidGap to thirdFixed broadband3.213755895100541.5966(33)(156)Q4 16/172.8Q4 17/18 Maintained market leading NPS Leading 4G network coverage 98% 16.7m NGN homes marketable,o/w 5.3m on-net/Open Fiber Extended agreement with Open Fiber to9.5m households (271 cities) by 20220.7(43)(139)(218)Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Mobile: prepaid competitive pressure,driven by aggressive BTL offers Fixed: record Q4 broadband net adds,base now 2.5m(0.4)Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Mobile: -1.5% (Q3 -2.9%); ongoing pricecompetition Fixed: 11.1% (Q3 12.0%); strong customergrowth FY EBITDA 4.6%, margin 1.0pp to 37.5%; tightcost control delivering -6.0% reduction in opex42
UK: improving trends, strong momentum in consumer fixedKPIsCustomer experienceFinancialsService revenue growth (%)Customer net adds (000s)NPS (points)ConsumerEnterprise20Mobile contractReportedFixed broadbandEx. Handset Financing and regulation66160.697119803350Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/185331 2926133411 38(1.2)61Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Best ever consumer NPS,#1 in Enterprise NPS (mobile & fixed) Mobile: lower net adds due to marketslowdown & reduced commercial activity Strong network performance4G coverage 99%. 50 MHz of 3.4GHzspectrum acquired for 5G Fixed: record consumer broadband adds,total broadband base now 382,000 CityFibre FTTH build underway, 1 millionpremises targeted1.2.3.1.40.4Excludes the phasing out of the Talkmobile brand. Reported contract net adds in FY 17/18: Q1 -2k, Q2 -3k, Q3 6k, Q4 -14kExcludes the impact of handset financing and regulationExcludes the impact of handset financing and regulatory settlements. Reported organic EBITDA 51.8% and margin 24.9%(3.1) (2.7)(3.0)(3.4)(4.8)(4.8)Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Mobile: 0.7%2 driven by Consumer segment:M4M, better customer mix, and RPI-linked pricerises Fixed: back to growth, 3.6%; timing of Enterpriseproject work and consumer customer growth FY EBITDA 1.4%3. Margin 17.9%3, 0.4pp; Fit forGrowth cost actions deliver 4.9% opex savings43
Spain: increased competitive pressure in value segmentKPIsCustomer experienceFinancialsService revenue growth (%)Customer net adds (000s)Consumer NPS (points)Gap to next bestMobile contractReportedGap to thirdFixed broadbandEx. Handset Financing and regulation179613113.875685539 4215303.01.8Ex. MTR cut2.061.3(16)Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18Q4 16/173.9401.61.0Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18Q4 17/18 Maintained market leading NPS Strong network position, 96% 4G coverage 20.5m NGN homes marketable,o/w 10.3m on-net High-end promotional activity moderatedin Q4 Highly competitive low-mid segment,leading to higher churn and lower net adds Growing convergence base: 2.5mVodafone One users, 154k YoY Q4 competitive pressure and drag from MTRcut on 1 Feb Consumer converged revenue now 59% ofconsumer revenue FY EBITDA 5.0%, margin 1.2pp to 28.5%;revenue growth and cost actions offset highercontent and wholesale fixed access costs 44
Vodacom: strong momentum across the GroupKPIsCustomer experienceSouth Africa consumer NPS (points)FinancialsVodacom service revenue growth (%)South Africa data bundles sold (m)Gap to next bestSouth AfricaGap to 45.3181105.811.110.47.95.65.63.9 4.14.95.20.5Q4 16/17Q4 17/18 NPS leadership in all markets First operator in Africa to exceed 80%4G coverageQ4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18Q4 16/17 Q1 17/18 Q2 17/18 Q3 17/18 Q4 17/18 Segmentation and personalisation strategy
Vodafone, the Vodafone Portrait, the Vodafone Speechmark, Vodafone Broken Speechmark Outline, Vodacom, Vodafone One, The future is . Mobile contract Mobile prepaid3 Europe - Customer net adds (000s) AMAP - Customer net adds (m) 340 237 262 316 255 275 173 . Portugal Greece Romania
May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)
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Vodafone, the Vodafone Speech Mark, the Vodafone Portrait, Vodacom, RED, Vodafone One Net, Vodafone . looks down sequentially and year over year, but primarily this reflects a post-pay to prepaid migration in Italy as a result of a new committed offer – prepaid – which is based, however, on credit-card . In Portugal, our youth .
On an exceptional basis, Member States may request UNESCO to provide thé candidates with access to thé platform so they can complète thé form by themselves. Thèse requests must be addressed to esd rize unesco. or by 15 A ril 2021 UNESCO will provide thé nomineewith accessto thé platform via their émail address.
̶The leading indicator of employee engagement is based on the quality of the relationship between employee and supervisor Empower your managers! ̶Help them understand the impact on the organization ̶Share important changes, plan options, tasks, and deadlines ̶Provide key messages and talking points ̶Prepare them to answer employee questions
Dr. Sunita Bharatwal** Dr. Pawan Garga*** Abstract Customer satisfaction is derived from thè functionalities and values, a product or Service can provide. The current study aims to segregate thè dimensions of ordine Service quality and gather insights on its impact on web shopping. The trends of purchases have
C2 – Vodafone Idea Internal New Terms and Conditions for Vodafone Prepaid International Roaming Pack Applicable with effect from 26.05.2019 The Vodafone International roaming packs are provided to Vodafone customers travelling to select locations.
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