Confidence in the future
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Responding to a changing world Chief Executive’s strategic review
This year we’ve significantly expanded our mobile and fixed data network coverage and quality, maintained encouraging commercial momentum and returned to growth in revenue and EBITDA. At the heart of this continued improvement are our key strategic drivers – data, convergence and enterprise.
Data
Convergence
Enterprise
Data services
As smartphone penetration grows, customers expect high speed, reliable data services. Our data strategy is to build wide and deep mobile data networks, to encourage worry-free usage at fair prices and offer segmented products and services accessible to a wide range of users.
4G population coverage in Europe
4G customers
growth in data traffic
reduction in dropped call rates
Convergence
As customers increasingly share content between their devices, they are looking for the fastest speeds and most reliable connection, whether that be through mobile or fixed services. That's why we've transformed our unified communications proposition and are now a major provider of mobile and high speed fixed broadband services.
revenues from fixed services
increase in broadband users
homes covered by fibre and cable
countries offering TV services
Enterprise
In a digital world it’s vital for companies to stay connected with each other, their customers and suppliers. Our enterprise strategy targets businesses searching for one communications provider to supply fixed and mobile services to their entire workforce, across all geographies.
service revenue is from Enterprise customers
Enterprise market share in Europe
IP-VPN points of presence
IoT connections
Delivering our objectives Chief Financial Officer’s review
This has been a strong year of execution for the Group, meeting our strategic goals and delivering returns for shareholders by focusing on three clear priorities. In the coming year it will be important to build on our improving execution and maximise the return on our investments.
Project Spring execution
Acquisition integration
Cost efficiency
Project Spring execution
The mobile build phase of our £19 billion, two-year investment programme is now complete, resulting in a modernized network, which has enabled us to deliver on all of our customer experience targets this year. As expected, this investment level depressed our cash flows, which we continue to expect to normalise so that we can reach our £1bn incremental cash flow target by 2019.
data sessions over 3Mbps in Europe
dropped call rate in Europe
dropped call rate in AMAP
expected incremental cashflow by 2019
Acquisition integration
A key strategic focus of the Group is to gain competitive fixed networks that meet the growing demand for converged services. Following the recent acquisions of leading cable companies, KDG and Ono, our progress on integration has been better than expected.
annual synergies by 2018
net present value of synergies
Vodafone DSL customers migrated
customers on converged services
Cost efficiency
We continue to make good progress on our cost-efficiency programme, Fit4Growth. The efficiencies found through cost levers such as automation, commercial efficiencies and centralised procurement, amongst others, are giving us greater operational leverage to expand margins.
of procurement spend centralised by 2019
savings from zero-based budgeting
A platform for the future Our business model
Our global scale, leading network quality and the breadth of services we offer, differentiates Vodafone in the marketplace. And we’re continually reinvesting in our business to ensure we maintain our superior network and customer experience.
Mobile network - Spectrum
Fixed network
IT
Wide range of services
Convenient sales channels
Simple customer service
Mobile network - Spectrum
We’ve increased the spectrum we hold in order to boost network quality and our capacity to carry more data. We also have one of the world’s largest footprints of mobile base station sites, spanning 26 countries.
invested in spectrum over 3 years
base station sites worldwide
What this means for customers is that we deliver the best or co-best mobile data networks in 15 markets according to independent tests.
Fixed network
We provide cable, fibre and copper networks to enable TV, broadband and voice services. We do this by deploying our own fibre, renting from incumbent operators or via acquisitions. We already own the largest cable companies in Germany and Spain.
homes reached with high-speed broadband in Europe
spent on fixed businesses in recent years
What this means for customers is that we are able provide high speed broadband to half of the European population.
IT
Over the last 3 years we have upgraded our IT estate including our data centres, customer relationship capability, billing services and online resources.
markets with cloud and hosting capabilities
IT investment over 3 years
What this means for customers is that our innovative new services offer customers more flexible, remote working and offer cost savings.
Wide range of services
We offer services designed to meet the needs of specific customer segments. These range from SIM-only offers, to converged bundles and mobile money services, as well as cloud & hosting, data centres and M2M services for our business customers.
mobile money users
TV customers
Internet of Things connections
What this means for customers is that we're a total communications provider delivering simple, high-quality fixed and mobile services.
Convenient sales channels
We sell our products and services through a variety of channels including branded stores, distribution partners, third party retailers and increasingly, online. 8% of our customers are businesses who are sold to via direct sales team, indirect partners, retail stores and telesales.
exclusive branded stores globally
stores upgraded in last 3 years
What this means for customers is that our distribution strength and service quality means our customers can get in touch wherever and however is easiest for them.
Simple customer service
Our customer base includes individuals, small businesses, large companies, multinationals and government departments. Our diverse workforce from over 130 countries, helps serve this broad need. This year we launched our customer CARE programme designed to further enhance our customer service proposition.
call centres across all main markets
My Vodafone app users
retail customer service employees
employees trained in the Vodafone Way of customer service
What this means for customers is that our Net Promoter score positions us as the leader in 13 out of our 21 markets.
Transforming societies globally
Communications technologies are a powerful social good. They enhance quality of life and expand citizens’ understanding of, and ability to participate in, the world around them. They also transform the workplace, enhancing productivity for businesses of all sizes in every industry.
Women’s empowerment
Energy innovation
Youth skills and jobs
Transparency
Changing women’s lives through mobile
We believe that extending the benefits of mobile to more women in emerging markets will make a material difference to them, their families, communities and national economies. We aim to be the world’s best employer for women and believe our strong commitment to diversity is a source of business strength.
women took maternity leave and were eligible for our global maternity policy
senior management are women (top c.1500)
Vodafone Chief Executive is a United Nations HeForShe Impact Champion
women subscribed to Vodafone Turkey’s women’s health SMS service
To find out more about our Sustainable Business strategy read our report.
Energy innovation
The development of strategies to optimise our energy use while helping our customers to optimise their consumption is a key focus of our innovation efforts over the next decade, thus helping to reduce greenhouse gas emissions from our combined activities.
tonnes CO2e we helped our customers to save for every one tonne CO2e generated by our activities
increase in our total greenhouse gas emissions
increase in the volume of data carried across our mobile networks
Reduction in greenhouse gas emissions per petabyte of traffic carried
To find out more about our Sustainable Business strategy read our report.
Youth skills and jobs
Using our technologies and expertise we will develop programmes to help young adults to enhance their digital skills and secure job opportunities in countries with high levels of youth unemployment.
young people offered places on our graduate and apprenticeship schemes in 2016
young people on our Discover graduate programme this year
Our international programme Columbus builds graduate leadership skills further
More youth require access to digital channels to secure employment
To find out more about our Sustainable Business strategy read our report.
Transparency
Our sustainable business strategy is founded on Vodafone’s commitment to responsible behaviour in everything we do. Our ongoing corporate transparency programmes focus on those aspects of our business that are the cause of greatest public concern. These include tax, supply chain and safety, mobile masts, health and digital rights and freedoms.
Focusing on
Tax and total economic contribution
Supply chain integrity and safety
Mobiles, masts and health
Digital rights and freedoms
To find out more about our Sustainable Business strategy read our report.