Vodafone Group Plc Background Presentation Disclaimer

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Vodafone Group Plc Background Presentation Disclaimer Vodafone Group Plc Background Presentation Disclaimer Information in the following presentation 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. The 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 are discussed on the final slide of the presentation. The presentation also contains non-GAAP financial information which the Group’s management believes is valuable in understanding the performance of the Group or the Group’s businesses. 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 business, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP measures. Vodafone, the Vodafone Speech Mark, the Vodafone Portrait, Vodacom and M-Pesa are trademarks of the Vodafone Group. The Vodafone Rhombus is a registered design of the Vodafone Group. Other product and company names mentioned herein may be the trademarks of their respective owners. 2 A brief introduction to the Group • Vodafone Group Plc is one of the world’s largest Financial highlights FY 13/14 telecommunications companies providing a wide range of Revenue £43.6bn services, including voice, messaging, data across mobile and fixed networks EBITDA £12.8bn • We have 438m mobile customers and 11 million fixed Adjusted operating profit £7.9bn broadband customers Capex £7.1bn • We have mobile operations in 26 countries and partner Free cash flow £4.4bn with mobile networks in over 50 more Adjusted EPS 17.54p • Our operations are spread across two geographic regions - Dividend per share 11.00p Europe and Africa, Middle East and Asia Pacific (AMAP) • The Group is listed on the London and NASDAQ (ADR listing) stock exchanges and is headquartered in London • We have over 275,000 base station sites across our markets (as of December 2014) 3 Revenue and profit mix of the Group Group service revenue Group service revenue FY 13/14 Mobile FY 13/14 Other Mobile incoming • Mobile accounts for the majority (81%) out-of- 7% Consumer 8% bundle Fixed Enterprise contract of our business 31% 15% 27% 37% 4% Other • Fixed (15%) is becoming an increasing part of what we do 42% 29% • A quarter of our business comes from Consumer prepaid Mobile in-bundle Enterprise customers Group service revenue Group EBITDA FY 13/14 FY 13/14 • Revenue and profits are spread across Italy Spain Germany our geographical footprint India 10% 8% Other 21% 10% 26% 27% Other Vodacom 11% 6% 13% Vodacom Spain 15% 11% 19% 12% UK India 11% Germany Italy UK 4 Mobile customer mix of the Group Customers by country (%) Other FY 13/14 17 India • Over 60% of our customers are Spain 3 38 from emerging markets UK 4 Italy 6 • The majority of our customers are 10 Egypt prepaid customers 7 15 Germany Vodacom • Consumer contract customers are 12% of the base and contribute Customers by segment (%) FY 13/14 over a third of service revenue Consumer prepaid Consumer contract 12 • Enterprise contributes over a 81 quarter of our service revenue 7 Enterprise 5 History of the Group Incorporated as Racal Acquisition of Sale of 45% Strategic Radio Limited Mannesmann AG, interest in acquiring further Verizon businesses in Europe Wireless Demerger from Racal and full listing Acquisition of Disposal of our interest Acquisition of on the LSE controlling stake in in China Mobile Cable and Wireless Vodafone Essar (now Worldwide Vodafone India) Acquisition of Ono in Spain 1984 1991 1999 2000 2006 2007 2009 2010 2011 2012 2013 2014 Ownership of Vodafone India and Italy Merger with AirTouch Sale of interest increased Communications, Disposal of Vodafone Australia in SFR to 100% formation of Verizon Vodafone Japan merged with Wireless (Vodafone Hutchinson 3G Australia held a 45% stake) Acquisition of Telsim Vodacom Group Acquisition of (now Vodafone Turkey) became a subsidiary Kabel Deutschland in Germany 6 Where we operate Subsidiaries (% ownership) Albania (100%) Portugal (100%) Czech Rep (100%) Qatar (22.95%) Egypt (54.9%) Romania (100%) Germany (100%) Spain (100%) Ghana (70%) Turkey (100%) Greece (99.9%) UK (100%) Hungary (100%) Vodacom Group (65%) India (100%) Consists of Ireland (100%) South Africa Italy (100%) Tanzania Mozambique Malta (100%) DRC Netherlands (100%) Lesotho New Zealand (100%) Joint ventures/associates Indus Towers (42%), part of Vodafone India Australia (50%) Safaricom (Kenya) (40%) Partner markets See page 37 for details 7 Our people Gerard Kleisterlee (Chairman) Appointed July 2011 Vittorio Colao (CEO) Appointed July 2008 He retired as President/CEO and Chairman of Philips on 31 March CEO before joining the Board in 2002. He left Vodafone in 2004 for 2011 after spending three decades with the company. He is also a RCS MediaGroup before re-joining the Board in October 2006 as CEO, Board member of Daimler AG, Royal Dutch Shell and Dell Inc. Europe and Deputy CEO. Nick Read (CFO) Appointed April 2014 Steve Pusey* (CTO) Appointed June 2009 He joined Vodafone in 2001 and has held a variety of roles including He joined Vodafone in 2006 having previously served as Executive CFO, CCO and CEO of Vodafone UK. Before becoming Group CFO, he Vice President and President for Nortel, EMEA having joined the was the regional CEO for our AMAP region and a Board member of our company in 1982. Before then he worked for British Telecom. listed companies Vodacom Group, Safaricom and Vodafone Qatar. Non-executive board members: Luc Vandevelde (Senior Independent Director), Sir Crispin Davies, Dame Clara Furse DBE, Val Gooding, Renee James, Samuel Jonah, Nick Land and Philip Yea Executive committee: Vittorio Colao (CEO), Nick Read (CFO), Stephen Pusey (CTO), Philipp Humm (CEO Europe), Serpil Timuray (CEO AMAP), Paolo Bertoluzzo (Group Chief Commercial and Operations Officer), Warren Finegold (Strategy & Business Development Director), Matthew Kirk (External Affairs Director), Rosemary Martin (General Counsel and Company Secretary), Ronald Schellekens (Group HR Director), Nick Jeffery (Group Enterprise Director) Over women in top senior 97,000 24 nationalities 22% management roles employees1 1. As of March 2014 8 * Steve Pusey will retire on 31 July 2014 The services we provide Split of Group service revenue Voice FY 13/14 Other Over 1.2 trillion minutes of calls were carried over our networks last year Fixed 4% That’s the equivalent of everyone around the world talking for two and a half hours 15% Messaging We sent over 337 billion text, picture, music and video messages last year Mobile Data 81% Over 544 petabytes of data were sent across our networks last year That’s enough data for over 100 billion one minute video clips Fixed We also provide financial services We serve over 11 million customers, mainly in Germany, Spain and Italy We have 18.5m M-Pesa users across 9 markets. M-Pesa enables customers to send and receive money via their mobile phones without the need for a bank account. Other services M-Pesa also includes the ability to save and receive short-term loans in some markets We earn revenue from letting other ‘virtual’ operators use our network and from partners outside our footprint using our products and services 9 Our technology Mobile Fixed Europe We have over 37% India 275,000 46% 26m households passed with NGN base station AMAP (excl. India) 17% sites 48m households passed with NGN (incl. wholesale) markets with European sites with high 18 4G services 79% capacity backhaul • Our fixed access comes from a range of sources: 4G coverage European sites fully 65% in Europe 77% modernised – Acquisitions (e.g. KDG, Ono) – Self or co-building (e.g. Italy, Spain, Portugal) 3G coverage in 3G coverage in AMAP 90% India (targeted 80% (excluding India) – Wholesale (e.g. Netherlands) urban areas) net book value of owned licences £17.2bn and spectrum (as of March 2014) An excellent network experience is key to our strategy and Project Spring accelerates our progress Data shown here correct as of 31 December 2014 unless otherwise stated 10 1. Next Generation Network technology: includes fibre-to-the-home, cable and fibre/VDSL to the cabinet or central office Project Spring: investing £19 billion over two years Project Spring is our investment programme that increases our capital expenditure over two years to £19 billion – to accelerate and extend our strategy and strengthen our differentiation European • Extend network coverage and density with 36k new 4G sites and 98% of sites with high capacity backhaul • Provide a ‘perfect voice’ experience (call success rates over 99%) mobile • Deliver the best 4G data experience with over 90% outdoor population 4G coverage and 90% of sessions > 3Mbps AMAP • Extend network coverage and density with 22k new 3G sites mobile • Grow 3G coverage to 95% in targeted urban areas in India
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