Telekom Austria Ag · VIE:TKA
Telekom Austria — A1 Telekom Austria Group — Q1 2021 Earnings Presentation
39 slides from Telekom Austria's earnings presentation, Apr 27, 2021
Slide 1: Results for the first quarter 2021
Results for the first quarter 2021 Vienna, April 27, 2021
Slide 2: Cautionary statement
Cautionary statement 'This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as 'believe', 'intend', 'anticipate', 'plan', 'expect' and similar expressions. Actual events may differ materially from those anticipated in these forw
Slide 3: Operational and financial highlights for the first quarter 2021
Operational and financial highlights for the first quarter 2021 3
Slide 4: Highlights Q1 2021
Highlights Q1 2021 Internet@Home growth of 4.9%: Strong demand for mobile WiFi routers and high- bandwidth products Mobile contract customer base increase of 5.3% y-o-y with growth in almost all markets Solution & Connectivity business with strong momentum Revenues increased: higher fixed-li
Slide 5: Austria and CEE markets in Q1 2021
Austria and CEE markets in Q1 2021 Total revenues Service revenues EBITDA before restructuring (in EUR mn) (in EUR mn) (in EUR mn) 9.9 -1.7 1,135.5 1,126.0 +24.2 955.7 excl. FX 0.8 3.6 +19.7 +0.8% 949.8 excl. FX +5.7% 11.0 419.3 10.6 +0.6% 396.6 +22.6 excl. FX Revenues Q1 Austria CEE markets Revenue
Slide 6: Q1 2021: Increased EBITDA margin due to higher service revenues and lower operating expenditures
Q1 2021: Increased EBITDA margin due to higher service revenues and lower operating expenditures Group (in EUR million) Q1 2021 Q1 2020 % change Total revenues 1,135.5 1,126.0 0.8% Service revenues 955.7 949.8 0.6% EBITDA before restructuring* 419.3 396.6 5.7% CAPEX 204.0 176.2 15.8% Group total r
Slide 7: Austria: Increasing total revenues and continued cost savings translated into solid EBITDA growth
Austria: Increasing total revenues and continued cost savings translated into solid EBITDA growth in Q1 2021 Mobile service Fixed-line service revenues revenues Operational data (in EUR mn) (in EUR mn) Increased contract subscriber base; driven by strong demand for mobile WiFi Δ: - 0.4% Δ: +1.3% r
Slide 8: CEE: EBITDA growth in all segments apart from FX driven decline in Belarus
CEE: EBITDA growth in all segments apart from FX driven decline in Belarus EBITDA Highlights CEE (in EUR mn; Q1 21 %-change vs. PY) Bulgaria: Strong service revenue growth (+7.3%) continued in Q1 2021 Fixed-line driven by solid demand for high-bandwidth products, exclusive TV Δ: +21.2% Δ: +7.1%
Slide 9: Q1 2021: Strong free cash flow generation
Q1 2021: Strong free cash flow generation (in EUR million) Q1 2021 Q1 2020 % change EBITDA 398.3 380.6 4.7% Restructuring charges and cost of labor obligations 21.5 18.6 16.1% Lease paid (principal, interest and prepayments) -59.8 -63.4 5.7% Income taxes paid -3.8 -13.4 71.6% Net interest paid -1.0
Slide 10: Focus Points
V / VZ Focus Points V A -
Slide 11: A1 brand now in all countries; strong position in CEE
A1 brand now in all countries; strong position in CEE underpinned by recent encouraging delivery on EBITDA growth and further synergies EBITDAal * Fully delivered on One-Brand strategy Launched One entertainment platform C A GR 2 0 1 8 - 2 0 2 0 Serbia last rebranded into A1 as of April 7th 2021
Slide 12: Q1 2021: Update of Covid-19 impact on key financials and KPIs
Q1 2021: Update of Covid-19 impact on key financials and KPIs Roaming Bad debt Demand In Q1 20 roaming traffic volumes Precautionary increase of the Continued for higher speeds as did not decline until March 2020 general allowance in Q1 20 amidst work-from-home, home-schooling the pandemic out
Slide 13: A1 well positioned with ICT portfolio to take advantage from digitalization push
A1 well positioned with ICT portfolio to take advantage from digitalization push and new revenue streams Solutions & Connectivity business Data center & workplace services A1 Group Solution & Connectivity Revenues Analytics & Data Cyber security and CAGR + 7.4 % Value data processing 1Q 18 2Q 18 3Q
Slide 14: Outlook for the full year 2021
Outlook for the full year 2021 14
Slide 15: Outlook for the full year 2021 - unchanged
Outlook for the full year 2021 - unchanged April 27, 2021 Consensus 2021 Total revenues ~ +1% EUR 4,600 mn CAPEX ~ 800 mn EUR EUR 798 mn* *CAPEX consensus excl. spectrum Outlook based on reported figures; assumed depreciation of ~ 10-15% avg. BYN vs. EUR FX rate CAPEX: does not include investmen
Slide 16: Appendix 1: ESG
Vv / Vz Appendix 1 7 ESG A’ |
Slide 17: One.Strategy
One.Strategy “Environmental, Social & Corporate Governance (ESG)” was introduced as Strategy Enabler The A1 Telekom Austria Group aims to foster more efficient, resource- preserving and thus more sustainable ways of working and living. Results for the first quarter 2021 17
Slide 18: ESG Strategy – Enabling the potential of digitalization for climate, people and society
ESG Strategy – Enabling the potential of digitalization for climate, people and society Targets – our ambition Climate & Environment - Ambition 2030 E Reach net carbon neutrality by decreasing the own carbon footprint & switching to energy from renewables 1 (CO2-emissions: +3% yoy) Increase ener
Slide 19: The "E" from ESG
The „E“ from ESG CO2-emission 2030 Approx. more than 100 mobile base stations powered by self-generated electricity from Reach net carbon neutrality by wind or solar power decreasing the own carbon Face-out of diesel generators footprint and Procurement of 100% of renewables in electricity i
Slide 20: The "S" from ESG
The “S” from ESG Digital Education 2023 Since 2011 over 228,000 participants within 14,600 workshops (group-wide) To address 100,000 people – specially children and young people – as part of the focus on digital education. Focus on Digital Education: developing digital skills and the safe usage
Slide 21: The "G" from ESG
The “G” from ESG Strong tone-from-the-top. Maintain a best-practice and externally Revised A1 Group Code of Conduct with an increased focus on ESG, human rights and A1 New Ways certified compliance management system of Working – roll-out in May 2021 to safeguard the A1 Telekom Austria 440 part
Slide 22: ESG KPIs
ESG KPIs 2019 2020 Change Environment CO2-emissions (in t)* 240,909 247,705 3% E Energy efficiency (in Mwh/Terabyte) 0.18 0.14 -22% Mobile phones collected (No.) 64,504 84,880 32% Digital Education** S Participations in media literacy trainings (no.) 35,326 9,239 -74% Number of Workshops 2,217 527 -
Slide 23: ESG Milestones & Goals
ESG Milestones & Goals Relevant milestones reached ... ... and ambitious goals to achieve Alignment in CO2 Raise share of renewables Climate targets Science reporting process & first Launch in electricity and reduce based target approved group-wide CO2 audit ESG Website CO2 emissions Anchor ESG Inte
Slide 24: Appendix 2: Additional information on KPIs and financials
Appendix 2 Additional information on KPIs and financials 24
Slide 25: A1 Telekom Austria Group: The leading regional communications player
A1 Telekom Austria Group: The leading regional communications player providing convergent telecommunication services as of March 31, 2021 (in ‘000) Austria Bulgaria Croatia Mobile market position #1 Mobile market position: #1 Mobile market position #2 Mobile subscribers: Mobile subscribers: Mobile s
Slide 26: A1 Telekom Austria Group: Profit and Loss
A1 Telekom Austria Group: Profit and Loss (in EUR million) Q1 2021 Q1 2020 % change Service Revenues 955.7 949.8 0.6% Equipment Revenues 162.1 158.0 2.6% Other operating income 17.8 18.2 -2.3% T otal Revenues 1,135.5 1,126.0 0.8% Cost of Service -323.6 -326.8 1.0% Cost of Equipment -164.2 -154.3 -6.
Slide 27: Total revenues & costs and expenses per segment
A1 Telekom Austria Group: Total revenues & costs and expenses per segment T otal Revenues (in EUR million) Q1 2021 Q1 2020 % change Austria 657.4 647.5 1.5% Bulgaria 132.2 127.6 3.6% Croatia 105.9 101.2 4.7% Belarus 92.4 109.6 -15.6% Slovenia 51.4 48.6 5.7% Serbia 70.7 68.6 3.0% North Macedonia 31.5
Slide 28: A1 Telekom Austria Group: Workforce development
A1 Telekom Austria Group: Workforce development FTE (Average Period) Q1 2021 Q1 2020 % change Austria 7,284 7,584 -4.0% International 10,361 10,354 0.1% Corporate 374 378 -1.1% A1 T elekom Austria Group 18,019 18,317 -1.6% FTE (End of Period) Q1 2021 Q1 2020 % change Austria 7,307 7,573 -3.5% Intern
Slide 29: A1 Telekom Austria Group: Net debt
A1 Telekom Austria Group: Net debt as of March 31, 2020 Net Debt (excl. Leases) (in EUR million) 31 March 2021 31 December 2020 % change Long-term Debt 1,794.2 1,793.7 0.0% Short-term Borrowings 749.3 749.1 0.0% Cash and Cash Equivalents -370.6 -210.9 -75.7% Net Debt (excl. Leases) of A1 T elekom Au
Slide 30: A1 Telekom Austria Group: Financial debt maturity profile
A1 Telekom Austria Group: Financial debt maturity profile as of March 31, 2021 (in EUR mn) 749.3 748.9 746.0 299.4 0.0 0.0 0.0 2021 2022 2023 2024 2025 2026 2027 EUR 2,543.6 mn short- and long-term Lines of credit Ratings debt as of March 31, 2021 Undrawn committed S&P: BBB+ (stable Average
Slide 31: Appendix 3: Reconciliation of Free Cash Flow
Appendix 3 Reconciliation of Free Cash Flow 31
Slide 32: Q1 2021: Reconciliation free cash flow
Q1 2021: Reconciliation free cash flow Q1 2021 Q1 2020 % change FCF after social plans new 174.1 116.4 49.5% Social plans new funded 23.5 16.4 43.4% Total social plans paid* -25.4 -28.1 -9.6% FCF - previously reported 172.2 104.7 64.4% *In the previous view all payments for all social plans (old = g
Slide 33: Appendix 4: Regulatory Topics
Appendix 4 Regulatory Topics 33
Slide 34: Mobile termination rates by country
Jan Jul Jan Jul Jan Mar Jan April Aug 2016 2016 2017 2017 2018 2019 2020 2020 2020 Austria (EUR) 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 Bulgaria (BGN) 0.019 0.019 0.014 0.014 0.014 0.014 0.014 0.014 0.014 Croatia (HRK)* 0.063 0.063 0.063 0.047 0.047 0.047 0.
Slide 35: Slide 35
Slide 36: EU roaming price regulation
EU roaming price regulation RETAIL (in EURc) July 2014 April 30, 2016 June 15, 2017 Data (per MB) 20 domestic tariff + 5* domestic tariff Voice-calls made 19 domestic tariff + 5* domestic tariff (per minute) Voice-calls received 5 weighted average MTR 0 (per minute) SMS (per SMS) 6 domestic tariff +
Slide 37: Appendix 5: Personnel restructuring in Austria
Appendix 5 Personnel restructuring in Austria 37
Slide 38: Quarterly Overview: Restructuring charges and provision vs. FTE
Quarterly Overview: Restructuring charges and provision vs. FTE Overview restructuring charges FTEs addressed (in EUR million) 2015 2016 2017 2018 2019 2020 Q1 21 FTE reduction 69.5 95.0 9.1 70.1 100.2 91.3 24.3 Servicekom contribution -72.0 -96.9 -27.3 -47.1 -19.4 -9.8 -2.9 Interest rate adjustment
Slide 39: End of Presentation
V / VZ End of Presentation 7 Al
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