International operations - Vodacomvodacom.co.za/cs/groups/public/documents/document/... · Analyst presentation 2009. Q&A International Analyst presentation 2009. Title: untitled

International operations

Analyst presentation 2009

PC-AP-International-030309.ppt

I t ti l bil t k t f t i tInternational mobile network operator footprintThe international footprint covers a total population of approximately 125 million, in countries which have blended mobile penetration rate of less than 25%

Tanzania

Population (m): 39GDP (US$bn): 14

DRC

Population (m): 64GDP (US$bn): 10 GDP (US$bn): 14

GDP/capita (US$) 360Mobile penetration (%) 29

GDP (US$bn): 10GDP/capita (US$) 171Mobile penetration (%) 16 Internnational opera

Mozambique

ations

Mozambique

Population (m): 21GDP (US$bn): 8GDP/capita (US$) 364

Lesotho

Population (m): 2Mobile penetration (%) 16

p ( )GDP (US$bn): 2GDP/capita (US$) 899Mobile penetration (%) 29

Note: Macroeconomic data as at 31 December 2007 and mobile penetration at 31 December 2008

Source: EIU, IMF and Vodacom estimates



I i i t ti l t ib ti f l bIncreasing international contribution from a low baseThe international business is expected to form an increasingly meaningful contribution to the group, even before the inclusion of Gateway

Group mobile customers Contribution to Group revenueFor the six months ended 30 September 2008Thousands

13%

31 2%31 2%

Intern31.2%31.2%increase in H1 2009 international revenue

national opera

30 0%30 0%

Contribution to Group EBITDAFor the six months ended 30 September 2008

ations

30.0%30.0%contribution to group customers at Q3 2009 10%28.9%28.9%

increase in H1 2009 international EBITDA



V d T iVodacom Tanzania

Market dynamics

♦ Competitive market with a focus on low cost on-net consumer offeringsnet consumer offerings

♦ Competition set to increase with new operators♦ Advanced regulatory environment. Latest

developments include subscriber registration

Intern

V d ’ iti iYear of launch 2000

As at 31 December 2008

♦ Relatively stable economy and political environment

national opera

Vodacom’s positioningOwnership 65%

Mobile penetration 29%

Market position 1 of 6♦ Market leader in respect of products (location

based billing and loyalty schemes introduced)

ations

Market share 46%

Customers (thousands) 5,355

ARPU R55

♦ Launched M-Pesa the award winning money transfer system developed by Vodafone

♦ Technology leader with the deployment of 3G/

EBITDA margin1 33.1%HSDPA and WiMAX

♦ Continued coverage expansion1. For the six months ended 30 September 2008



V d DRCVodacom DRC

♦ Highly competitive market with strong focus on lo cost tariff offerings

Market dynamics

low cost tariff offerings ♦ Economy heavily reliant on commodities and has

taken a severe downturn due to the current crisis♦ Subscriber registration being implemented by the

Intern

Year of launch 2002


g g p yRegulator

V d ’ iti i

national opera

Ownership 51


Market position 1 of 5♦ Market leader in respect of coverage, network

quality and value

Vodacom’s positioning

ations

Market share 38%


ARPU R67

♦ Strong distribution network♦ Affordable tariffs and low cost operation

EBITDA margin1 24.9%

1. For the six months ended 30 September 2008



V d M biVodacom Mozambique

♦ State owned competitor (M-Cell) with links to the incumbent fixed-line operator

Market dynamics

incumbent fixed-line operator♦ Proposed 3rd mobile license expected to be

issued in the future♦ Economy is reliant on donor funding however

Intern

Year of launch 2003As at 31 December 2008

investment is starting to increase

V d ’ iti i

national opera

Ownership 85%


Market position 2 of 2♦ Market leader in respect of network quality and

reliability


ations

Market share 43%


ARPU R42

♦ Focused plan to increase and match competitor coverage in sustainable areas

♦ Market leader in respect of new products, services and consumer offerings

EBITDA margin nmservices and consumer offerings



V d L thVodacom Lesotho

♦ Fixed line incumbent and mobile competitor are merging

Market dynamics

merging♦ Regulatory environment proposing a new

Communications Bill as well as Universal Access Levies

Intern

Year of launch 1996


♦ Fixed incumbent improving infrastructure

V d ’ iti i

national opera

Ownership 88.3%


Market position 1 of 2♦ Market leader in respect of coverage, quality and

brand


ations

Market share 80%

Customers (thousands) 489

ARPU R71

♦ Technology leader with the deployment of 3G/HSDPA and WiMAX

♦ Strong brand and distribution underpins the network

EBITDA margin1 49.4%network

1. For the six months ended 30 September 2008



K h ll d i itiKey challenges and priorities

♦ Pressure on tariff structure in all the countries♦ Worsening economic conditions in the DRC

Key challenges

♦ Worsening economic conditions in the DRC♦ Increasing competitive environment as a result

of new entrants Intern

Priorities

national opera

♦ Structural cost reduction in all operations♦ Retention of market share through affordable

tariffs and innovative products

ations

♦ Continued matching of coverage and technology roll-out

♦ Maximise the benefits of the Gateway transaction


Q&A

International


Documents

International operations - Vodacomvodacom.co.za/cs/groups/public/documents/document/... · Analyst presentation 2009. Q&A International Analyst presentation 2009. Title: untitled