Transcription of Vodacom annual results presentation
1 14/05/2017 1 Vodacom annual results presentation for the year ended 31 March 2017 2 annual results | 31 March 2017 2 The following presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated ( relevant persons ). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. 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 securities in any company within the Group.
2 Promotional material used in this presentation that is based on pricing or service offering may no longer be applicable. This presentation contains certain non-GAAP financial information which has not been reviewed or reported on by the Group s auditors. 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.
3 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. This presentation also contains forward-looking statements which are subject to risks and uncertainties because they relate to future events. These forward-looking statements include, without limitation, statements in relation to the Group s projected financial results . Some of the factors which may cause actual results to differ from these forward-looking statements are discussed on slide 43 of this presentation . Vodafone, the Vodafone logo, Vodafone Mobile Broadband, Vodafone WebBox, Vodafone WebBook, Vodafone Smart tab, Vodafone 858 Smartphone, Vodafone Passport, Vodafone live!
4 , Power to You, Vodacom , Vodacom M-Pesa, Vodacom Millionaires, Vodacom 4 Less and Vodacom Change the World are trademarks of Vodafone Group Plc (or have applications pending). Other product and company names mentioned herein may be trademarks of their respective owners. Disclaimer 14/05/2017 2 3 annual results | 31 March 2017 Operating review 4 annual results | 31 March 2017 Group revenue R81 278 million + HEPS 923 cents per share + Group operating free cash flow R19 555 million + Total dividend per share 830 cents per share + Group EBITDA R31 238 million + Group capital expenditure of revenue Highlights 4 14/05/2017 3 5 annual results | 31 March 2017 + Service revenue growth + EBITDA growth + Data revenue growth Key indicators FY17 % change Revenue (Rm) 64 729 Service revenue (Rm) 52 071 EBITDA (Rm) 26 815 Customers ( 000) 37 131 Data customers ( 000) 19 549 Active smart devices ( 000)
5 16 793 South Africa | Strong customer adds and data demand underpins growth 6 annual results | 31 March 2017 [+ *] Service revenue growth + Customers + M-Pesa revenue growth Key indicators FY17 % change Normalised Revenue (Rm) 17 350 ( ) Service revenue (Rm) 16 775 ( ) EBITDA (Rm) 4 545 ( ) ( ) Customers ( 000) 29 655 Data customers ( 000) 12 997 M-Pesa customers ( 000) 12 922 International | Impacted by customer registration and forex 14/05/2017 4 7 annual results | 31 March 2017 Key growth areas 8 annual results | 31 March 2017 8 Million 184 342 495 FY15FY16FY17 Million CustomersData customersActive smart devices4G customersFY16FY17 South Africa data | Device.
6 Pricing and network supporting demand + Data bundles sold Data progression + 4G Customers ARPU uplift from migration Average usage per smartphone + to 560MB Active smartphones up to 4G coverage Data traffic up + of SA service revenue + Data revenue 2G to 3G3G to 4G14/05/2017 5 9 annual results | 31 March 2017 9 International data | Uptake progressing capital investment Capital intensity Data customers + Data traffic + + customers using data Data revenue contribution of International service revenue + 3 916 4 804 64 348 FY16FY173G4 GExpanding data coverage Number of sites 9 878 10 055 12 996 FY15FY16FY17 Data customersContribution to total customersGrowing data penetration Thousand/% Smartphone penetration 10 annual results | 31 March 2017 10 Enterprise | Scaling of operations Cloud and hosting + IPVPN + Enterprise churn 4 year government contract SAP Hana and IBM strategic partnership VBA Impacted by currency devaluation in key markets 1 513 1 354 FY16FY17 VBA service revenue R million 1.
7 Growth excluding the impact of Autopage 6 905 7 884 FY16FY17SA mobile revenue R million + 1 678 1 817 FY16FY17SA Fixed-line and BMS revenue R million + [+ *] SA Enterprise service revenue contribution of SA service revenue + 14/05/2017 6 11 annual results | 31 March 2017 International MNO s | Recovery showing; M-Pesa growing Tanzania ( 000) % change Customers 12 653 Data customers 6 463 M-Pesa customers 7 966 DRC ( 000) % change Customers 10 388 Data customers 3 705 M-Pesa customers 2 086 Mozambique ( 000) % change Customers 5 146 Data customers 2 280 M-Pesa customers 2 474 Lesotho ( 000) % change Customers 1 468 Data customers 549 M-Pesa customers 396 Of customers use M-Pesa Of customers use M-Pesa Of customers use M-Pesa Of customers use M-Pesa 12 annual results | 31 March 2017 12 New services | Capturing new revenue shares Over 21 000 homes and businesses passed Wholesale partnership agreements additional access to over 175 000 end points Insurance revenue + Insurance policies + to IoT revenue up + IoT Connections + to GDSP platform delivery IoT Insurance Fibre R612 million R668 million 14/05/2017 7 13 annual results | 31 March 2017 Our brand and reputation Responding to customer s Needs Wants Behaviours Brand with a purpose Industry
8 Leader Transform society Leading technology Intelligent systems Seamless Frictionless Personalised Digital Segmented propositions Digital organisation & culture Best technology Best customer experience Innovation Agility New skills Strategy | Moving towards Vision 2020 14 annual results | 31 March 2017 Basic targeting rules and mathematics Gut feel approach +2x conversion improvement +6x conversion improvement Propensity models Off-line updated once a month Big data analytics: Machine learning Automated, real-time & contextual Big data analytics evolution Segmentation | Evolution to automated customer recommendation analytics 14/05/2017 8 15 annual results | 31 March 2017 Big Data and CVM intelligence and optimisation Customers 728m Offers sold Customers 1 billion Plays Live Trial On the go Segmentation | Scale achieved by leveraging through-the-line marketing Just 4 You Play Every Day Just 4 You Deals 16 annual results | 31 March 2017 16 Bundles sold million + 13 653 14 169 16 433 FY15FY16FY17 Bundle users + + Customers using bundles Segmentation | SA transforming pricing through personalisation + 775 1 148 1 540 2 282 728 FY15FY16FY17 Total bundlesJust 4 You
9 BundlesReducing voice pricing Reducing data pricing In three years In three years 000 14/05/2017 9 17 annual results | 31 March 2017 17 76 60 41 26 Vodacom Operator A Operator B Operator C% 59 40 23 Vodacom Operator A Operator B% 17 118 15 015 11 638 7 393 9 040 8 157 6 688 4 091 VodacomOperator AOperator BOperator C Downlink speed Uplink speed1. Competitive data based on estimates 2. Source: Atio (March 2017) Gap +19 ppts Benchmark data performance (4G)2 Data coverage (4G)1 Network NPS Best IT Just 4 You enablement Customer 3D implementation Cyber security Best technology | South Africa maintaining our lead kbps 18 annual results | 31 March 2017 18 Best Technology | International fending off the competition Tanzania DRC Moz Lesotho Vodacom Next best competitor Tanzania DRC Moz Lesotho 3G 4G 3G 3G 3G 4G Vodacom 25 7 30 39 95 69 Next best competitor 27 9 30 17 30 30 1st 1st 1st 1st 1st 1st 1st 1st Data speeds Coverage mbps % Just 4 You enablement New improved M-Pesa platform Cyber security Best IT 14/05/2017 10 19 annual results | 31 March 2017 SA Consumer NPS points differentiation International NPS Tanzania 3rd Customer
10 Experience | Leading NPS in SA; closing gap in International % FY16FY17 VodacomCompetitor ACompetitor B+17 ppts +15 ppts Mozambique 2nd DRC 1st Lesotho 1st 20 annual results | 31 March 2017 20 Connectivity that is reliable and secure Network satisfaction guarantee Always in control Control your costs with no surprises Reward loyalty Extra rewards and better service Easy access Always available ask only once Dropped call compensation Proactively monitor and resolve Vodacom Ready Business Assessment tool Improved notifications Travel saver 180 countries Smart recommendations Personalised offers 728m Just 4 You bundles sold Lifestyle rewards Play Every Day 24/7 live help MyVodacom
