FY24 Management Interview
Beyond our progress on our strategic priorities, I am pleased with the financial results we have delivered, having slightly exceeded our guidance for the year.
- Margherita Della Valle
Group service revenue growth (%)
Transformation gaining momentum
Customers
- Delivering the simple and predictable experience our customers expect.
- Getting the basics right and refocusing our resources towards improving customer experience.
Customers
- Wide-reaching customer experience transformation underway, supported by additional investment of €140 million1 in FY24, as well as new incentives and talent development plans.
- Customers insights processed through real-time AI models, feeding into detailed action plans on a weekly basis in all markets.
- Frontline tools and processes enhancements benefitting 70,000 team members.
- Significant improvement in Germany fixed network reliability, recognised in four independent network quality tests.
- Despite material price inflation, customer detractors have reduced across all segments, and we now have leading or co-leading net promotor scores in 5 out of 9 European markets1
Simplicity
- Become a simple and faster business.
- Simplify our operations and executing on our cost programmes to improve profitability.
Simplicity
- New organisational structure and executive management team in place.
- Completed first phase of commercialising shared operations, enabling greater transparency, productivity and flexibility.
- Actioned 5,0001 role reductions and announced a further 2,000 in first year of 3-year 11,0001 plan and continued to deliver opex efficiencies.
Growth
- Right-sizing the portfolio for growth
- Significant opportunity to grow in:
- Business
- Africa
- Vodafone Investments
Growth
- Reshaped European footprint focused on growing telecommunications markets, with strong positions and good local scale.
- Vodafone now growing in all segments and accelerating throughout the year.
- Accelerated organic service revenue growth of Vodafone Business to 5.4% in Q4; B2B focus step-up with new organisation, sales transformation plan, investment in products and capabilities and strategic partnership with Microsoft.
Europe & Africa service revenue growth (%)
I am pleased to report that we have sustained Group service revenue growth into Q3 with 14 out of 17 markets growing and we are reiterating our financial guidance for the year.
- Margherita Della Valle
Group service revenue growth (%)
Our transformation plan in motion
Customers
- NPS and detractor scores are improving across all markets.
- Vodafone Business achieved a 5% growth rate in the quarter, driven by strong performance in digital services and the IoT sector.
- In Africa, financial services in Egypt saw a significant customer increase of over 55% to 7.5 million, supported by Vodacom's capabilities.
Customers
We need to deliver to our customers the simple and predictable experience they expect such as seamless connections, upgrades, all service interactions. We’re making these basics our focus.
Simplicity
- Over a third of the planned 11,000 role reductions have already been completed as part of efforts to simplify the business.
- Continuing efforts to downsize the portfolio, with progress in approvals for the sale of operations in Spain and the merger in the UK.
- Actively exploring options for Vodafone Italy, focusing on outcomes that maximize shareholder value.
Simplicity
We need to step up the speed and decisiveness of our execution. We will do so by freeing up time and resources to focus on our commercial competitiveness by reducing internal complexity.
Growth
- Group service revenue growth sustained into Q3 with 14 out of 17 markets showing growth; financial guidance for the year reiterated.
- In Germany, the largest market, service revenue met expectations.
- Improved commercial momentum in both Fixed and Mobile services.
Growth
We need to change our organisation and focus our resources on a portfolio of segments, products and geographies that is right sized for growth and returns over time.
Europe & Africa service revenue growth (%)
H1 FY24 Management Interview
My priorities are to focus on our customers, become a simpler business and accelerate growth. To set us on this path we have taken significant actions over the last six months.
- Margherita Della Valle
Group service revenue growth (%)
Our transformation plan in motion
Customers
- Improving overall customer experience
- Group wide focus
- Tariff simplification
- Improving in home WiFi
- Driving improving Consumer NPS
Customers
We need to deliver to our customers the simple and predictable experience they expect such as seamless connections, upgrades, all service interactions. We’re making these basics our focus.
Simplicity
- Fixed
- Improving network quality
- Successfully executing price actions
- Mobile
- Launching new propositions
- Optimising sales channels
- TV
- Managing transition impact
- Enhancing TV proposition
Simplicity
We need to step up the speed and decisiveness of our execution. We will do so by freeing up time and resources to focus on our commercial competitiveness by reducing internal complexity.
Growth
- €1bn efficiency programme
- New simplification initiatives
- New customer investment
- Energy & extra inflation
Growth
We need to change our organisation and focus our resources on a portfolio of segments, products and geographies that is right sized for growth and returns over time.
Europe & Africa service revenue growth (%)
Q1 FY24 Management Interview
I'm pleased to report that we have achieved a better service revenue performance across almost all of our markets in Q1, and we've also reiterated our EBITDAaL and cashflow guidance for the year.
- Margherita Della Valle
Group service revenue growth (%)
Our transformation plan in motion
Customers
- Targeting 30% detractor reduction in all markets, with weekly CX boards in place
- Advertising investment +23% (>50% focused on Brand differentiation)
- German cable network quality recognised in multiple independent tests; broadband losses in-line with expectations
Customers
We need to deliver to our customers the simple and predictable experience they expect such as seamless connections, upgrades, all service interactions. We’re making these basics our focus.
Simplicity
- 1/3 of 11k role reductions in Group & markets currently being actioned
- Shared Operations commercial model blueprint complete
- Germany mobile tariff simplification starting
- Sales channel restructuring plan executed in Spain
Simplicity
We need to step up the speed and decisiveness of our execution. We will do so by freeing up time and resources to focus on our commercial competitiveness by reducing internal complexity.
Growth
- Pricing actions successfully implemented across almost all markets
- Vodafone Business acceleration, supported by digital services +14.9%
- Announced UK merger with Three UK
Growth
We need to change our organisation and focus our resources on a portfolio of segments, products and geographies that is right sized for growth and returns over time.
Europe & Africa service revenue growth (%)
FY23 Management Presentation
The circumstances of our industry and the position of Vodafone within it, require us to change. And by change I mean a significant redesign of where we focus our efforts and how we organise ourselves.
- Margherita Della Valle
Group service revenue growth (%)
Our transformation plan: early execution examples
Customers
- €150m investment reallocated in FY24 towards customer experience
- Brand spend increased €100m YoY
- New SME customer journeys in Germany & UK
Customers
We need to deliver to our customers the simple and predictable experience they expect such as seamless connections, upgrades, all service interactions. We’re making these basics our focus.
Simplicity
- 11k Europe role reductions in ‘Group’ & markets embedded in 3-yr plan
- First actions in Group, Germany & Italy
- Targeted individual incentives for Business digital services
Simplicity
We need to step up the speed and decisiveness of our execution. We will do so by freeing up time and resources to focus on our commercial competitiveness by reducing internal complexity.
Growth
- Capex reallocated from lower to higher ROCE markets
- Vodafone Spain under strategic review
- €6.5 billion proceeds from Vantage Towers, Hungary & Ghana
Growth
We need to change our organisation and focus our resources on a portfolio of segments, products and geographies that is right sized for growth and returns over time.
Europe & Africa service revenue growth (%)
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
|---|---|---|---|---|---|---|---|
| May 17 2016 | Full Year | ||||||
| Mar 31 2016 | Form 20-F | ||||||
| Mar 31 2016 | Annual Report | ||||||
| Feb 04 2016 | Q3 | ||||||
| Nov 10 2015 | H1 | ||||||
| Jul 24 2015 | Q1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
|---|---|---|---|---|---|---|---|
| May 19 2015 | Full Year | ||||||
| Mar 31 2015 | Form 20-F | ||||||
| Mar 31 2015 | Annual Report | ||||||
| Feb 05 2015 | Q3 | ||||||
| Nov 11 2014 | H1 | ||||||
| Jul 25 2014 | Q1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
|---|---|---|---|---|---|---|---|
| May 21 2013 | Full Year | ||||||
| Mar 31 2013 | Form 20-F | ||||||
| Mar 31 2013 | Annual Report | ||||||
| Feb 07 2013 | Q3 | ||||||
| Nov 13 2012 | H1 | ||||||
| Jul 20 2012 | Q1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
|---|---|---|---|---|---|---|---|
| May 22 2012 | Full Year | ||||||
| Mar 31 2012 | Form 20-F | ||||||
| Mar 31 2012 | Annual Report | ||||||
| Feb 09 2012 | Q3 | ||||||
| Nov 08 2011 | H1 | ||||||
| Jul 22 2011 | Q1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
|---|---|---|---|---|---|---|---|
| May 17 2011 | Full Year | ||||||
| Mar 31 2011 | Form 20-F | ||||||
| Mar 31 2011 | Annual Report | ||||||
| Feb 03 2011 | Q3 | ||||||
| Nov 09 2010 | H1 | ||||||
| Jul 23 2010 | Q1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
|---|---|---|---|---|---|---|---|
| May 18 2010 | Full Year | ||||||
| Mar 31 2010 | Form 20-F | ||||||
| Mar 31 2010 | Annual Report | ||||||
| Feb 04 2010 | Q3 | ||||||
| Nov 10 2009 | H1 | ||||||
| Jul 24 2009 | Q1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
|---|---|---|---|---|---|---|---|
| May 19 2009 | Full Year | ||||||
| Mar 31 2009 | Form 20-F | ||||||
| Mar 31 2009 | Annual Report | ||||||
| Feb 03 2009 | Q3 | ||||||
| Nov 11 2008 | H1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
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| May 27 2008 | Full Year | ||||||
| Mar 31 2008 | Form 20-F | ||||||
| Nov 13 2007 | H1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
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| May 29 2007 | Full Year | ||||||
| Nov 14 2006 | H1 |
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| May 30 2006 | Full Year | ||||||
| Nov 15 2005 | H1 |
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| May 24 2005 | Full Year | ||||||
| Nov 16 2004 | H1 |
| Date | Title | Report | Presentation | Video | Q&A | Spreadsheet | Transcript |
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| May 25 2004 | Full Year | ||||||
| Nov 18 2003 | H1 |