South African operations

Transcription

1 African operations

2 Socio-economic i overview Country snapshot Population Africa s largest economy with well developed legal, financial, communications and natural resources industries Millions Significant public expenditure programmes, growing g middle class and robust banking system expected to support economy Government budget forecasts for GDP growth reduced to 1.2%, the lowest since 1998 Large official population boosted by significant unregistered base of immigrant workers Elections scheduled for 2009 US$ GDP per capita % Inflation African operations 42% 4.2% CAGR Source: EIU, StatsSA

3 Tl Telecoms market ktoverview Mobile SIM penetration Fixed-line and broadband snapshot At 31 December Fixed-line penetration (Dec-07): 84% 8.4% PC penetration (Dec-07): 13.4% Broadband penetration (Dec-08E): 2.8% Estimated 70% people penetration

4 Strong financial i performance Revenue EBITDA R million R million 17.3% CAGR and 11.9% growth in H % CAGR and 12.2% growth in H1 2009

5 Continued growth in customers Prepaid customers Contract customers Thousands Thousands 8.3% 12.7% year on year growth to December 2008 Prepaid ARPU year on year growth to December 2008 Contract ARPU R R

6 Strong growth in data revenue driven by broadband d Broadband connectivity packages Thousands SA data revenue as a % of revenue % of SA revenue FY 2006 FY 2007 FY 2008 H1 2009

7 Leading market shares in voice and broadband d Vodacom SA is the market leader in terms of mobile and broadband customers Market share of mobile customers Market share of broadband customers As at 30 September 2008 At 30 September % % 1. Vodacom Vodacom Telkom MTN MTN Cell C iburst 6 4. Virgin Mobile 1 5. Other 4 Source: Company information, Vodacom estimates Source: My Broadband, November 2008, Vodacom estimates

8 Building a business to lead Vodacom SA is the market leader in terms of customers and revenue market share Customer care Network Products and services customer Supply chain management Brand Distribution

9 Ahi high hquality network with ithimproving i broadband dcoverage The investment in network infrastructure and state-of-the-art technologies has enabled Vodacom to develop a leading market position in mobile voice and data GSM/GPRS EDGE 3G GPRS EDGE UMTS Covers 98% of the SA population Covers 26% of the SA population Covers 27% of the SA population Data throughput of up 68 kb/s Data throughput of up to 236 kb/s Data throughput of up to 3.6 Mb/s In addition to improving coverage, investments are being made to improve efficiency and quality Radio access network Softswitches Self-built transmission (microwave and fibre)

10 Adiff differentiator t in supply chain management Vodacom has a state-of-the-art warehouse in Midrand that handles on overage more than 160,000 units per day, 98% of which are delivered within 48 hours to major centres SA handset sales Units (millions) % CAGR FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

11 Effective distribution ib ti network helps win share of wallet Vodacom s strategy is based on optimising the path to market across as broad a spectrum as possible, with more than 25,000 points of sale in Africa Channels Three service providers, with VSPC as the flagship service provider Distribution channels include national chains/retail outlets informal channel comprising of street vendors company and independently owned cellular dealer and franchise outlets Vodacom Business, an extensive direct sales division within Vodacom Vodacom s call centre-based online and offthe-page selling division Vodaworld, a unique one-stop mobile telecommunications mall Community services operators

12 Brand, marketing and sponsorship A leading African brand As voted for by Markinor Sunday Times Top Brand survey Number one telecommunications brand Fourth overall favourite brand along-side Coca-Cola, SABMiller and Nike Fifth coolest brand in Africa Vodacom voted favourite advertiser iconic Meerkat and entertaining Lucky and George commercials Vodacom continues its evolution into a truly customercentric brand Sports teams Springboks Bafana Bafana Vodacom Blue Bulls Vodacom Cheetahs Other prominent rugby and soccer teams Tournaments Vodacom Super 14 Vodacom Cup Vodacom Tri Nations Vodacom Challenge Vodacom Durban July

13 Brand supported by investment t in employees and community Vodacom is considered one of the most favourable employers in Africa due to its track record of human resources and community service initiatives For our employees Equal opportunities International and domestic development opportunities - R70 million development expenditure A wide range of job specific training programmes Competitive compensation and other benefits Budgeted well-being spend of R10 million in this financial year For our communities The Vodacom Foundation gives effect to the Vodacom Group s commitment of sharing the successes of the company with the communities in which it operates. Focus areas: - Education - Health - Security Total spend of R500 million since our inception, year to date spend of R70 million

14 D li Delivering i affordable ff d bl solutions l ti Vodacom continues to grow its customer base and prepaid ARPUs by delivering new affordable products h African opera ations

15 Developing innovative products to lead in the market Continuing our legacy of first to market with products and services sustains our market leading position African operations

16 Delivering i high h speed data solutions Vodacom is the largest provider of mobile broadband services in Africa and is consistently bringing new products to market to entrench its leadership position African operations

17 Delivering i new converged consumer solutions New converged services provide an additional customer retention tool and can support ARPU growth Online services Media & Entertainment Advertising Financial African operations

18 Targeted campaign management Vodacom s campaign management system enables it to cost effectively target customers for the promotion of its innovative products and services Customer lifecycle management Straight Talkers Cautious Carers Confident Communicators Cross selling and up selling Revenue generation Status Seekers Steady Eddies Mobile Maniacs Churn prevention

19 Customer care and retention ti Loyalty programmes and customer care are essential for effective churn management Contract Prepaid lty program mmes Loya Onyx 3,000 users Platinum 11,000 users Credit card 33,000 Call centres Talking points 3.4 million redemptions to date redemption rate increased to 49.6% Yebo millionaires 10.1 million unique users to date 180 million SMSs received from launch 1 million winners to date Walk-in centres Vodacare Cu ustomer ca are Redesign of the existing customer care IVRs Re-engineering agent skills to a specialised single skilled environment Answer 70% of calls in 20 sec Seven company owned, Vodacom customer care and data care centres 10% year on year increase in foot traffic in one-stop shops Vodaworld has over one million visits per year Vodacare specialises in cellular repairs 39 branches and franchises in all major centres 100,000 repairs per month

20 Key challenges and priorities iti Key challenges Economic climate and reducing consumer spending Increasing competition from new ECN licensees Changes in regulatory environment Priorities Focus on affordable solutions and adding value Further enhance network coverage and quality Democratise access to data communications Maximise synergy benefits between mobile operation, Gateway, and Vodacom Business Focus on cost control Customer traction in Vodacom Business

21 Q&A African operations