Description: Vodafone Croup Plc is one of tbe worlds largest mobile
communications companies by revenue operating across tbe globe providing a wide range of communications services. Wbat we do: rovlde a wlde range of communlcaLlons servlces lncludlng moblle volce messaglng daLa and flxed broadband Establisbed: Awarded moblle llcence ln Lhe uk ln 1982 Revenue: 43884 mllllon (year ended 31 March 2011) Croup EBITDA: 14670 mllllon (year ended 31 March 2011) Market capitalisation: ApproxlmaLely 924 bllllon (31 March 2011) Employees: Average of 89000 durlng year ended 31 March 2011 Customer base: ApproxlmaLely 338 mllllon reglsLered moblle cusLomers (31 March 2011) Clobal network: SlgnlflcanL global presence wlLh equlLy lnLeresLs ln over 30 counLrles across 3 conLlnenLs and over 40 parLner markeLs worldwlde 1he Croup operaLes ln Lwo geographlc reglons Lurope and Afrlca Mlddle LasL and Asla aclflc (AMA) and has an lnvesLmenL ln verlzon Wlreless ln Lhe unlLed SLaLes Brand names: Cur moblle subsldlarles operaLe under Lhe brand name vodafone ln Lhe unlLed SLaLes our assoclaLed underLaklng operaLes as verlzon Wlreless vlslon Mlsslon Vision 1o enrich our customers /ives throuqh the unique power of mobi/e communicotion Mission Possion for customers Possion for our Peop/e Possion for kesu/ts Possion for the wor/d 4round us lsLory of vodafone lormed as 8acal 1elecom ln 1984 as a subsldary of 8acal LlecLronlcs lc 8ld for prlvaLe secLor uk Cellular Llcense ln 1982 olsLed uks flrsL ever moblle call aL a few mlnuLes pasL mldnlghL on !anuary 1 1983 ln 1988 8acal 1elecom became publlc ln 1991 8acal 1elecom goL fully demerged from 8acal LlecLronlcs 1he new enLlLy was renamed vodafone Croup lc A Case SLudy on vodafone 1erm 6 SubmlLLed by kumar ShreshLha(WM 3029) valbhav Carg(WM 3066) Caurav 1lwarl( WM 6083) rlLl nanda (WM 6101) nlLln !aln (WM 3040) 8lcha MehroLra raLeek !aln 4 lnCrganlc CrowLh of vodafone ln early 1999 vodafone merged wlLh Alr1ouch CommunlcaLlon lnc ln a deal worLh $61 bllllons LaLer Lhe norLh Amerlcan Subsldlary was creaLed as a separaLe enLlLy as verlzon Wlreless wlLh vodafone havlng 43 share ln Lhe same year vodafone acqulred 8roughL Mannesmann 's C2 moblle dlvlslon for 190 bllllon Luro! ln 2001 Lhe Company acqulred Llrcell Lhe largesL wlreless communlcaLlons company ln Lhe 8epubllc of lreland from elrcom lrom 2001 Lhere came a phase of consolldaLlon 1he focus was more on small deals and lncreaslng Lhe sLakes ln exlsLlng parLnershlps ln 2007 vodafone acqulred a conLrolllng lnLeresL of 67 ln uLchlson Lssar LlmlLed for uS$111 bllllon AL Lhe same Llme lL agreed Lo sell back 36 of lLs Alr1el sLake ouL of 10 back Lo Lhe MlLLals uLch was rebranded Lo vodafone ln lndlaln May 2011 vodafone Croup lc boughL Lhe resL of Lhe shares of vodafone Lssar and became a solely owner of vodafone Lssar AbouL vodafone Lurope Cur moblle subsldlarles and [olnL venLure operaLe under Lhe brand name 'vodafone' Cur assoclaLe ln lrance operaLes as 'Sl8' and 'neuf CegeLel' and our flxed llne communlcaLlon buslnesses operaLe as 'vodafone' 'Arcor' '1ele2' and '1ele1u' Afr|ca and Centra| Lurope Cur subsldlarles ln Lhls reglon operaLe under Lhe 'vodafone' brand or ln Lhe case of vodacom and lLs moblle subsldlarles Lhe 'vodacom' and 'CaLeway' brands Cur [olnL venLure ln oland operaLes as 'lus' and our assoclaLe ln kenya operaLes as 'Safarlcom' As|a ac|f|c and M|dd|e Last Cur subsldlarles and [olnL venLure ln ll[l operaLe under Lhe 'vodafone' brand and our [olnL venLure ln AusLralla operaLes under Lhe brands 'vodafone' and '3' Ver|zon W|re|ess (Un|ted States) Cur assoclaLe ln Lhe uS operaLes under Lhe brand 'verlzon Wlreless' Challenges Ahead (2006) lncrease Lhe presence ln unLapped markeLs resence ln 26 counLrles ouL Cf 200 no presence ln LaLln Amerlca and many Afrlcan CounLrles verlzon Wlreless Lrylng Lo buy ouL vodafone's sLake lundamenLal shlfL ln MarkeL Lo conLenL based 3C servlces nokla had developed Wlll enabled Cell phone whlch dldn'L requlre moblle connecLlon Lo access lnLerneL 1hls can pose a greaL rlsk Lo vodafone's revenues Leadershlp belng quesLloned by board 8uslness Level SLraLegles 8 ' 2007 1homson/SouLh WesLern All rlghLs reserved 49 vodafone's 8uslnessLevel SLraLegy Cost Cost Un|queness Un|queness D|fferent|at|on D|fferent|at|on Cost Leadersh|p Cost Leadersh|p Iocused D|fferent|at|on Iocused D|fferent|at|on Iocused Cost Iocused Cost Leadersh|p Leadersh|p Integrated Cost Integrated Cost Leadersh|p] Leadersh|p] D|fferent|at|on D|fferent|at|on 8road 8road 1arget 1arget Narrow Narrow 1arget 1arget Compet|t|ve Advantage Compet|t|ve Advantage Compet|t|ve Compet|t|ve Scope Scope Core compeLencles of vodafone W Moblle CommunlcaLlon W CapaclLy Lo conLlnuously lmptove looovote ooJ opqtoJe 10 lnLegraLed CosL leadershlp/ulfferenLlaLlon W lnorganlc CrowLh SLraLegy Large cusLomer base W LffecLlve value Chaln Low CosL of operaLlon W AdapL qulckly Lo envlronmenLal changes W SLrong llnanclals helped Lhem Lo counLer aLLack any Low CosL 8lvals W LffecLlvely leverage lLs core compeLencles whlle compeLlng agalnsL lLs rlvals 11 CorporaLe Level SLraLegy CorporaLelevel SLraLegys value 1he degree Lo whlch Lhe buslnesses ln Lhe porLfollo are worLh more under Lhe managemenL of Lhe company ? 1he 6roup hos qeneroted free cosh f/ow we// oheod of the 5 bi//ion to bi//ion torqet estob/ished in 2008 o//owinq the 8oord to estob/ish o three yeor 7 dividend per shore qrowth po/icy WhaL buslnesses should Lhe flrm be ln? seitinq the benefits of fost re/iob/e mobi/e doto networks usinq smortphones ond other mobi/e doto devices such os tob/ets dotobosed services /ike poyments vio hondsets ond on initio/ wove of mobi/e devices for homes ond cors ow should Lhe corporaLe offlce manage Lhe group of buslnesses? pursue o qrowth stroteqy focused porticu/or/y on urope 4frico ond lndio continue to qenerote siqnificont sovinqs from techno/oqy stondordisotion off shorinq outsourcinq ond p/otform shorinq ' 2007 1homson/SouLh WesLern All rlghLs reserved 614 Low n|gh Cperat|ona| and Corporate ke|atedness Corporate ke|atedness 1ransferr|ng Sk|||s |nto 8us|nesses through Corporate neadquarters Cperat|ona| ke|atedness Shar|ng Act|v|t|es between 8us|nesses n|gh Low Unre|ated Unre|ated D|vers|f|cat|on D|vers|f|cat|on (I|nanc|a| Lconom|es) (I|nanc|a| Lconom|es) ke|ated L|nked ke|ated L|nked D|vers|f|cat|on D|vers|f|cat|on (Lconom|es of Scope) (Lconom|es of Scope) 8oth Cperat|ona| and 8oth Cperat|ona| and Corporate ke|atedness Corporate ke|atedness (kare capab|||ty that creates (kare capab|||ty that creates d|seconom|es of scope) d|seconom|es of scope) ke|ated Constra|ned ke|ated Constra|ned D|vers|f|cat|on D|vers|f|cat|on Vert|ca| Integrat|on Vert|ca| Integrat|on (Market ower) (Market ower) 8elaLed consLralned W lL offers 1oLal communlcaLlon lnLegraLed comm moblle sol producLlvlLy servlces volce and messaglng machlne2machlne sol eLc W All Lhe buslness soluLlons share common neLwork lnfrasLrucLure and dlsLrlbuLlon llnkages 1he 200 fivepoint stroteqy W 8evenue sLlmulaLlon and cosL reducLlon ln Lurope W uellver sLrong growLh ln emerglng markeLs W lnnovaLe and dellver on our cusLomers' LoLal communlcaLlons needs W AcLlvely manage our porLfollo Lo maxlmlse reLurns W Allgn caplLal sLrucLure and shareholder reLurns pollcy Lo sLraLegy AcqulslLlon 8esLrucLurlng CorporaLe Covernance vodafone's acqulslLlons unL or be hunLed" W 1radlLlonally growLh was by acqulslLlons raLher Lhan organlc W used shares for lLs acqulslLlons W LaLer slowed down on acqulslLlons and focused on lnLernal growLh Acqu|s|t|on strategy W lncreased markeL power W overcomlng enLry barrlers W avoldlng excesslve compeLlLlon W lncreased dlverslflcaLlon !apan 1elecom flxed llne operaLlons W 1o leverage scale and scope beneflLs reduce response Llme ln markeL and ensure effecLlve dellvery Lo cusLomers Ma[or AcqulslLlons W Merged wlLh Alr1ouch CommunlcaLlons lnc uSA $61 bllllon deal W Cermany's largesL Lakeover Mannesmann u2 t190 pald ln sLocks ln year 2000 W 8ellsouLh ln new Zealand W 1elecel ln orLugal W CmnlLel ln lLaly key challenges W lnLegraLlon dlfflculLles W CulLural allgnmenL of people Crg SLrucLure as on !an 2003 CLC Cermany Asla aclflc 8eglon LMLA 8uslness uevelopmenL uk lLaly 1echnol ogy Legal uman 8esources CorporaLe Affalrs llnance SLraLegy 8uslness lnLegraLlon MarkeLlng new org ls deslgned Lo W locus more aLLenLlon on cusLomers ln vodafone's local markeLs W Lnhance vodafone's ablllLy Lo dellver seamless servlces Lo corporaLlons W laclllLaLe coordlnaLed dellvery of 3C across all markeLs W luncLlon as an lnLegraLed company dellverlng on Cne vodafone W Slmpllfy declslonmaklng accounLablllLles and governance sLrucLures Lo speed up execuLlon CorporaLe Covernance 1he group wlll have 2 managemenL commlLLees whlch wlll oversee Lhe execuLlon of Lhe Maln 8oard's sLraLegy and pollcy W 1he Lxecut|ve Comm|ttee Chalred by Arun Sarln goal of focuslng on Lhe group sLraLegy and flnanclal sLrucLure and plannlng successlon plannlng organlzaLlonally developmenL and group wlde pollcles W 1he Integrat|on Cperat|ons Comm|ttee Chalred by Arun Sarln Lhe goal of seLLlng Lhe operaLlonal plans budgeL and forecasL producL and servlce developmenL cusLomer segmenLaLlon managlng dellvery of mulLl markeL proposlLlon and managlng shares resources Crg SLrucLure as of Loday 8oard CrganlzaLlon SLrucLure 1he 8oard W as flnal responslblllLy for Lhe managemenL dlrecLlon and performance of our buslnesses W ls requlred Lo exerclse ob[ecLlve [udgemenL on all corporaLe maLLers lndependenL from execuLlve managemenL W ls accounLable Lo shareholders for Lhe proper conducL of Lhey buslness and W ls responslble for ensurlng Lhe effecLlveness of and reporLlng on our sysLem of corporaLe governance SLraLegy updaLe nov 2010 vodafone has reLurned Lo organlc revenue growLh and galned revenue markeL share ln Lhe ma[orlLy of markeLs W we wi// pursue o qrowth stroteqy focused porticu/or/y on urope 4frico ond lndio W we wi// continue to drive benefits from the 6roups sco/e odvontoqe ond cost focus W we wi// seek to qenerote free cosh f/ow or /iquidity from noncontro//ed ossets ond investments W we wi// continue to opp/y copito/ discip/ine to our opprooch to investment W lmproved quidonce for the 2011 finoncio/ yeor ond mediumterm torqets vodafone loundaLlon Moblllzlng Lhe communlLy moblllzlng soclal change W World of dlfference corporaLe glvlng lnlLlaLlve whlch moblllses people Lo Lake Llme ouL and work for a charlLy of Lhelr cholce W vodafone 8ed AlerL an emergency SMS fundralslng programme enabllng vodafone loundaLlons and vodafone companles Lo respond Lo emergencles and dlsasLers W Moblles for Cood 1hrough Lhe appllcaLlon of vodafones leadlng lnnovaLlve Lechnology Lhe vodafone loundaLlon moblllses boLh local and vlrLual communlLles brlnglng people LogeLher Lo resolve muLual problems and make real change