16/05/2001 Panafon - Vodafone Year End Results (1/4/2000-31/3 ...
Upcoming SlideShare
Loading in...5
×
 

16/05/2001 Panafon - Vodafone Year End Results (1/4/2000-31/3 ...

on

  • 800 views

 

Statistics

Views

Total Views
800
Views on SlideShare
800
Embed Views
0

Actions

Likes
0
Downloads
3
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

16/05/2001 Panafon - Vodafone Year End Results (1/4/2000-31/3 ... 16/05/2001 Panafon - Vodafone Year End Results (1/4/2000-31/3 ... Presentation Transcript

  • Panafon - Vodafone year end results 1/4/00 - 31/3/01 Profitable growth Innovative products Strong data positioning
  • Looking Ahead Profitable growth through: Robust commercial policy Emphasis on innovative products Strong data positioning Benefits related to Panafon-Vodafone active participation in the Vodafone Group International expansion Our vision: To be the leading wireless communications and information provider in Greece, bringing value to our shareholders, customers and the community
  • Profitable Growth Strengthened EBITDA growth at 13.9% EBITDA margin at 45.9% € 792.6 € 844.9 € 340.7 € 387.9 € 164.8 € 175.3 31.3.00 31.3.01 Revenues EBITDA Net Income + 6.6% + 13.9% + 6.4% Note : Audited International Accounting Standards (IAS), for 12 months ended 31st March 2001 Euro exchange rate: 340.75
  • Leading the Market in Margins and Market Share Customer Mix („000) % Market share Panafon - Vodafone is aiming at a healthy growth of its customer base through maintaining and acquiring 67.3% conscious and service oriented customers. 54.0% 2,340 2,226 42.8% 1,663 36.6% 1486 1599 1,069 949 547 382 48 687 714 740 741 320 499 fiscal year 2000 96 97 98 99 OO Q1 01 Net Income EBITDA Revenues Customers Contract Pre-paid EBITDA margin: 45.9% It is estimated that mobile penetration in Greece will exceed 75% by the year 2003, and has already Net Income margin : 20.7% exceeded fixed line penetration. Note : Based on announced results, Panafon 12m to 31.3.01, Cosmote, Stet 12m to 31.12.2000
  • Revenue Analysis Data revenues increase (+130%) accounting for more than 8.6% of total revenues or 9.3% of service revenues Airtime and data increase: +19.2% + 130% Data 68.8% 72.8% + 42.7% Other - 40.5% Merchandise Sales (EBITDA Positive) 4.0% - 27.3% Monthly Access 1.6% 8.4% 8.6% 4.7% 2.2% 17.2% 11.7% 31.3.00 31.3.01 Note : Audited International Accounting Standards (IAS), for 12 months ended 31st March 2001 Euro exchange rate: 340.75
  • Churn Rates Reducing by 6.1pp The ability to continuously reduce churn in a highly competitive environment reflects the effectiveness of the company‟s commercial policy 7.9% 28.8% 22.7% 5.6% 4.8% 4.7% Apr-Jun 00 Jul-Sep 00 Oct-Dec 00 Jan-Mar 01 Year to March 00 Year to March 01 Drivers of reduction: lower subsidies, Retention programs, VAS
  • Commercial Strategy Objective - To further reinforce leading position through: Restructuring the commercial costs by consolidating Service Providers & building the largest owned retail network Standardising Customer Relations Management (CRM) in order to increase loyalty & facilitate sales of new services and products through an individual customer oriented approach instead of product oriented approach Focusing on retention plans One stop shop solutions for corporate customers Leading the prepay market with new and innovative products: CU Leading the market to lower subsidies Maintaining existing and acquiring new quality customers Value Added Mobile Services (VAMS) and Datacoms to stimulate usage and increase revenues, exploiting Vodafone‟s Global Products Roadmap as well as Panafon - Vodafone Roadmap (Local Market Needs) Dual branding process which increases customer recognition of a global family that offers seamless services and wider range of products
  • Distribution Strategy & Rebranding Panafon - Vodafone‟s process of rebranding aims at raising consciousness of a strong global family of companies that will offer common products and seamless services to all customers The merging strategy of the Distribution Network aims at:  Improving the quality of services (pre and post sale)  Increasing flexibility and speed in introducing new products  Providing one point of reference for customers  Reducing commercial policy costs & achieving economies of scale  More efficiently controlling the customer base (CRM)  “Vodafone shops” attracting the majority of new additions
  • Offering New and Innovative Products We are investing in profitable innovative global products which provide solutions, value and effectively meet the needs of our customers
  • CU Prepaid Communication System CU was designed to meet specific market needs. CU is a worldwide innovation and presents an excellent example of successful product positioning. Its unique success is reflected by its contribution to significantly higher usage and ARPU patterns. • CU which was launched in October 2000 and already accounts for more than 50% of new prepay additions • Contributes 35% higher overall ARPU while outgoing ARPU is 55% higher • Has 4 times higher SMS traffic than “a la Carte” which is the other Panafon-Vodafone brand in the prepay market • Minutes of Use are 20% higher
  • Direct Access (LMDS) • Commercial launch is estimated in summer 2001 (License cost € 8.1 million- in December 2000) • Panafon - Vodafone will be the first to provide full commercial coverage of the Athens business area • Roll out plan: Athens, Thessaloniki, Patras and then according to market demand LMDS Characteristics • Operating Frequency: 25GHz SMEs • Coverage Range: 2 Km PANAFON • Maximum Throughput: LMDS 32Mbps/sector Hub • Line of sight link • Multiple customer interfaces Major The Vehicle for LMDS services will be who will offer a bundle of services to corporate customers (voice & data) and will act as a one stop shop solution. Going forward, Panafon Partner will expand by creating additional corporate services catering for individual customer needs and will further grow the customer base. The aim is to create “stickiness” through corporate bundling
  • GPRS: the Next Step “Always on” technology: a high data speed technology which will accelerate the evolution of data services towards the mobile-internet (presently at 40kbps, eventually at 115kbps) Panafon-Vodafone :  Already announced availability of GPRS Services to both retail & corporate customers (March 2001)  GPRS offering to corporate customers will enable them to have access to a corporate intranet environment and the internet and enable fast file transfer capabilities  GPRS offer for retail customers includes Wap over GPRS with handsets currently available in the Greek market: Motorola T260S  Panafon -Vodafone has undertaken initiatives to create a full range of data services, providing GPRS content for users and exploiting the synergies with Vizzavi  Vodafone Group GPRS strategy and international agreements will enable quick introduction of cost effective new services
  • Network - Excellence Investing in capacity, autonomy, quality Our Network:  GSM Coverage over 97.8%  € 237.1 million investment for the year ended 2001  An overall investment of € 898 million by the end of March 2001 (excluding the GSM license)  3800 Km of Backbone Microwave Network, forms our most significant asset  Now enhanced by fiber optic links, (1st area of deployment: Athens), it will be over 1000 Km within 3-4 years The largest private telecommunications network in Greece, constitutes for Panafon-Vodafone an important competitive advantage in the Greek market providing the company with business autonomy and flexibility Currency Euro/Grd.=340.750
  • UMTS Summary of terms of the auction and dates from the Information Memorandum of the NTPC • 1 June 2001 Publication of the Invitation to Tender • 11 July 2001 starting date of the 3G licensing process • Number of licenses : 4 in 3G and 4 in 2G (GSM 900 / DCS1800) • Duration : 3G - 20 years & 2G - 15 years • € 146.7 million minimum price (60% can be paid after 2005) + 2% of 3G revenues from year 2005 Panafon - Vodafone Estimates • 2007-2008 UMTS revenues will be 50% of total revenues • Expected launch: First half of 2003 • Estimated base stations for 3G over a 15 year period : 2,200 1) According to the National Telecommunications and Post Commission (NTPC)
  • International Expansion: the first step: Albania In February 2001 Panafon, in a joint venture with Vodafone, was awarded the second GSM license in Albania for € 41.5m. This represents a further step in Panafon‟s strategy to play a key role in the Balkans region in partnership with Vodafone Group. Demographics and other information • Population 3.4m, largest city is Tirana - pop: 480,000 • Total number of cellular customers (April 2001): 107,000 with prepay representing 78%. First prepaid product launched in December 2000 by AMC • Year end 2000 penetration 3% • Very low fixed line penetration Strategy • Fast penetration • High quality of network • Quality and variety of services • Building a strong brand name Forecasts • Planned investment for the next 5 years: € 250-300 million Data as December 2000
  • Financial Results for the year ended March 2001 According to IAS
  • Summary Income Statement € in million / GRD billion 31.3.01 € 31.3.00 € % Change 31.3.01 GRD Revenues 844.9 792.6 +6.6% 287.9 EBITDA 387.9 340.7 +13.9% 132.2 % Margin 45.9 43.0 2.9pp 45.9 Total Depreciation & 88.6 64.0 +38.6% 30.2 Amortisation 279.3 256.8 +8.8% 95.2 EBT Net Income 175.3 164.8 +6.4% 59.7 Continued profitable growth, margin improvement Note : Audited International Accounting Standards (IAS), for 12 months ended 31st March 2001 Euro exchange rate: 340.75
  • Balance Sheet (IAS) € in million / GRD billion 31.3.01 € 31.3.00 € 31.3.01 GRD Current Assets 143.3 151.2 48.8 Fixed Assets - license 723.2 536.4 246.4 Investments - Goodwill 66.9 51.3 22.8 Total Assets 933.4 738.9 318.0 Total Liabilities 518.8 439.4 176.7 Share Capital and Reserves 187.1 187.1 63.8 Retained Earnings 227.5 112.4 77.5 Shareholders‟ Equity 414.6 299.5 141.3 Total Liabilities & 933.4 738.9 318.0 Shareholders‟ Equity Net Debt/Equity 0.60x 0.62x 0.60x Note : Audited International Accounting Standards (IAS), for 12 months ended 31st March 2001 Euro exchange rate: 340.75
  • Cash Flow Statement (IAS) € in million / GRD billion 31.3.01 € 31.3.01 GRD Cash Flow from Operations 286.4 97.6 financing:  Capital Expenditure (268.4) (91.4)  Investments (27.5) ( 9.4)  Dividend (proposed) (55.4) (18.9)  Increase in loans 64.1 21.8  Decrease in cash at bank /in hand 0.8 0.3 Note : Audited International Accounting Standards (IAS), for 12 months ended 31st March 2001 Euro exchange rate: 340.75
  • Cumulative Capex One of the biggest private investments in Greece Capex for 01/02 approx. € 205m € 898.0m € 651.5m € 484.2m March '99 March '00 March '01 Note : Euro exchange rate: 340.75
  • Gross ARPU and Usage Total ARPU & Usage ARPU contract ARPU Prepay Euro per month € 69.8 € 62.1 € 22.0 € 19.4 € 44.9 137 151 min. min. 51 43 € 34.1 min. min. 93 31.3.00 31.3.01 min. 31.3.00 31.3.01 80 min. Data ARPU 31.3.00 31.3.01 + 66% SMS 36 per month €3 per customer € 1.8 31.3.00 31.3.01 Note : Based on year end results
  • Total Subscriber Acquisition Trends Leading the market to lower subsidies Total handset subsidy costs (€ 193.7) 8% of total Revenues (€ 186.5) (€ 160.5) (€ 127.2) (€ 112.6) Average handset subsidy 00-01 € 155.1 Mar 00 Jun 00 Sep 00 Dec 00 Mar 01 Note : Audited International Accounting Standards (IAS), for 12 months ended 31st March 2001 Euro exchange rate: 340.75
  • Continuous Profitable Growth Our business strategy aims at sustaining profitable growth, utilising Vodafone’s synergies and capitalising on Vodafone’s strong global brand and footprint. This will be achieved through our: • Robust commercial policy • International expansion initiatives • Competitive positioning in data and mobile internet • Management quality and delivery record supported by Vodafone‟s international management structures • Cost synergies through Vodafone‟s global purchasing power and technological advantage Focused on delivering shareholder value
  • Panafon - Vodafone year end results 1/4/00 - 31/3/01 Profitable growth Innovative products Strong data positioning