Eurotelesites Ag · VIE:ETS
Eurotelesites — Investor Day (2023)
32 slides from Eurotelesites's investor day presentation, 2023
Slide 1: EuroTeleSites
EuroTeleSites bal EuroTeleSltes
Slide 2: Today's Presenters
Today’s Presenters Ivo Ivanovski Lars Mosdorf EuroTeleSites EuroTeleSites CEO CFO 2
Slide 3: Introduction to EuroTeleSites
1. Introduction to EuroTeleSites
Slide 4: EuroTeleSites: Leading European TowerCo
EuroTeleSites: Leading European TowerCo Strong Footprint: 13.2k Operating Sites in 6 Countries • Leading European TowerCo providing leasing of antenna and equipment space as well as power backup 6.1k Additional c.1,000 Sites • Headquarters: Vienna, Austria; 173 employees(1) From A1 BTS(4) Programme
Slide 5: EuroTeleSites will Enjoy the Support of Two Strong Shareholders
EuroTeleSites will Enjoy the Support of Two Strong Shareholders Ownership: 56.55% Ownership: 28.42% Ratings: A- / Baa1 / A- Ratings: AA+ / Aa1 / AA+ (Govt of Austria) • Overview: America Movil (AMX) is Latin America’s leading integrated • Overview: ÖBAG is an Austrian state-owned holding company. It
Slide 6: Attractive Market, Robust Business and a Strong Platform
Attractive Market, Robust Business and a Strong Platform Attractive Market Robust Business and Financials Strong, Well-Positioned Platform ✓ Attractive Economic ✓ Leading TowerCo in Austria and ✓ Highly Experienced Environment in Austria and CEE Management CEE, a Strong Economic Region with 31 Milli
Slide 7: Strong Growth Trajectory Driven by both A1 and Third-Party Tenants
Strong Growth Trajectory Driven by both A1 and Third-Party Tenants Revenue Long-term Management Targets (In €mn) Revenue Contribution by Tenant: Growing Diversification CAGR 4-6% c.95% 2 c.5% 1 2022 Long Term 232 A1 Third Party 1 Anchor Tenant A1 ~2/3 of growth from A1 + Additional c.1,000 new BTS S
Slide 8: Key Investment Highlights
2. Key Investment Highlights
Slide 9: Clear Drivers of Growth for the Mobile Telco Sector
1 Clear Drivers of Growth for the Mobile Telco Sector Secular Tailwinds and Surging Mobile Data Usage ▪ Driven by a growing consumer base with significantly greater demand for data, mobile data traffic is expected to grow at a CAGR of 18% from 2022-2028 in Europe ▪ Demand for faster connection speed
Slide 10: Future Growth Potential
Future Growth Potential Digital Maturity Smart Cities EDGE Data Centres IoT Business Not Related to the MNOs Regional Industrial 5G networks 5G mmWave Rollout MNO 5G Upgrades OpenRAN MNO Coverage and Network DAS and Indoor Systems for 5G 5G Rollout of New Entrants Densification Short Term (2-3 years
Slide 11: Favourable Macro Development Across EuroTeleSites' Footprint
Favourable Macro Development Across EuroTeleSites’ Footprint 90% of EBITDAaL in IG-Rated Countries Positive Economic Growth Across Footprint (EBITDAaL contribution; S&P Country Credit Rating) (Real GDP Growth 2022-2025 CAGR) % of Weighted Average(1): 1.6% EBITDAaL(1): 63% 5% 11% 11% 8% 2% AA+ 2.7% 2
Slide 12: Leading Tower Operator Across Austria and CEE
Leading Tower Operator Across Austria and CEE EuroTeleSites is present in 6 European markets, 88% of which are in countries where EuroTeleSites is first or second in the market. Towers by Geography Towers by Type Towers by Market Position (# towers, % of towers as of 30 June 2023) (# towers, by type
Slide 13: Highly Experienced Management Team
Highly Experienced Management Team Ivo Ivanovski Lars Mosdorf Gernot Rasch Gerhard Partl Country Manager Austria, Group Finance Lead, CEO, EuroTeleSites CFO, EuroTeleSites EuroTeleSites EuroTeleSites ▪ 19 years’ industry experience ▪ 16 years’ infrastructure experience ▪ 19 years’ industry experienc
Slide 14: Business Overview
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Slide 15: Focused Strategy Permeates Through the Core
Focused Strategy Permeates Through the Core Our journey: From legacy telco cost center towards a customer-orientated business Finance ▪ Sustainable revenue growth ▪ Opex and Capex optimisation ▪ Operating as One Finance Team Boost Market Core ▪ Organic market share growth ▪ Leverage new technology a
Slide 16: Split of Responsibilities between EuroTeleSites and Tenants
Split of Responsibilities between EuroTeleSites and Tenants Example: Rooftop Example: Greenfield System Technic Aircraft warning lights Lightning protection system Electrical Distribution Railing Work Platforms Radio antennas Roof Outlet Microwave system RRUs or tower mounted amplifiers Steel struct
Slide 17: Example Structure: EuroTeleSites and A1
Example Structure: EuroTeleSites and A1 Site Lease Agreements (Ground and Rooftop) Owns site lease Site sharing ARGE agreements agreements(1) agreements Towers Master Long-term contractual A1 MNOs Lease Agreement Other tenants agreements providing (MLA) additional revenues AT SI HR • Long-term shari
Slide 18: Strong Anchor Tenant with Market Leadership Position
Strong Anchor Tenant with Market Leadership Position A1 is the leading telecoms provider in Austria and CEE, serving c.27mn customers with largely converged services. Highly Valuable Long Term Partnership with A1 Long-term Contract • An attractive, market-standard and arms-length MLA will regulate t
Slide 19: MLA Between EuroTeleSites and A1 Group MNOs
MLA Between EuroTeleSites and A1 Group MNOs • 3 x 8 years with automatic renewal, automatically extended after years 8 and 16 if • Blended fixed rent, subject to CPI- not terminated by the A1 Group MNOs linked indexation (85% of annual • EuroTeleSites can terminate at the earliest adjustment but not
Slide 20: Diversified Customer Base Outside of MNOs
Diversified Customer Base Outside of MNOs Non-MNO portfolio % total • Expected to experience significant growth in Countries tenancies(1) non-MNO market by bringing new potential customers Government use or 67% public radio systems • Approx. 70% of EuroTeleSites non-MNO portfolio is in Austria, a ke
Slide 21: Towers and Tenancy Evolution: Targeting a Tenancy Ratio of 1.44x
Towers and Tenancy Evolution: Targeting a Tenancy Ratio of 1.44x Towers Development Tenancy Development(1) Tenancy 1.20x 1.21x 1.22x Ratio(2) 15,957 16,136 15,592 13,225 2,911 13,162 2,606 2,795 12,986 5,892 5,945 5,962 12,986 13,162 13225 7,094 7,217 7,263 2021 2022 H1 '23 2021 2022 H1 '23 Rooftop
Slide 22: Snapshot of Our Unwavering Commitment to ESG
Snapshot of Our Unwavering Commitment to ESG Ecology Supply Chain HR and Diversity Governance Work Safety • Reduce the ecological impact via • Introduction of sustainable and efficient • Diversity is our everyday lifestyle • Top-rated Supervisory Board with 10 • Regular risk assessment infrastructur
Slide 23: Financial Overview
4. Financial Overview aon] EuroTeleS tes
Slide 24: EuroTeleSites – an Attractive Investment with Value Creation From Day 1
EuroTeleSites – an Attractive Investment with Value Creation From Day 1 and Growth Potential in the Medium and Long-term Revenue EBITDAaL Capex (€mn) (€mn) (€mn) EBITDAaL 55% 53%(2) Capex / 19% 19% Margin Revenue 232 43 121 127 (2) 65 22 2022 H1 '23 2022 H1 '23 2022 H1 '23 Revenue Split EBITDAaL Spl
Slide 25: Austria: Key Operating & Financial Metrics
Austria: Key Operating & Financial Metrics # of Towers # of Tenants Operating Metrics Tenancy 1.26x 1.27x Ratio 6,104 6,098 7,680 7,725 1,576 1,627 3,045 3,050 6,104 6098 3,059 3,048 2022 H1 '23 2022 H1 '23 Rooftop Greenfield A1 Tenants Other MNOs Revenue EBITDAaL (€mn) (€mn) 141 59% 57% 73 3 83 2 4
Slide 26: International: Key Operating & Financial Metrics
International: Key Operating & Financial Metrics # of Towers # of Tenants Operating Metrics Tenancy 1.17x 1.18x Ratio 7,127 8,277 8,411 7,058 1,219 1,284 2,900 2,912 7,058 7,127 4,158 4,215 2022 H1 '23 2022 H1 '23 Rooftop Greenfield A1 Tenants Other MNOs Revenue EBITDAaL (€mn) (€mn) 90 54% 54% 48 7
Slide 27: Financial Policy: Focus on Deleveraging in the First Four Years
Financial Policy: Focus on Deleveraging in the First Four Years • EuroTeleSites is fully committed to a prudent financial policy focusing on liquidity risk management • Debt of €1bn currently held by A1 to be refinanced via a mix of instruments: ‒ €500mn 5-year bullet loan issued on 9 June 2023 and
Slide 28: Medium Term Guidance Supported by Highly Visible, Predictable and Stable Cash Flows
Medium Term Guidance Supported by Highly Visible, Predictable and Stable Cash Flows Revenue Growth Free Cash Flow • Expected to be 4-6% each year • Positive for the next four years and beyond • Two thirds is expected to come from A1 and the remaining one • Working capital outflows are expected to be
Slide 29: Conclusion
5. Conclusion EuroTeleS tes
Slide 30: Key Takeaways
Key Takeaways 1 ▪ Source: Company Information. 2 3 ▪ Notes: (1) Pro Forma information for 2022 and H1 2023 prepared as if the Group had existed on a stand-alone basis before the various spin-offs. • Surging demand for data • As market leader, • EuroTeleSites is already highly in Austria and CEE driv
Slide 31: Q&A
Q&A
Slide 32: Thank You
Thank You Hans Lang Head of Investor Relations Telekom Austria AG E: hans.lang@a1.group M: +43 50 664 37216 Copyright EuroTeleSites. All rights reserved. The information contained in this document may not be published, broadcasted or otherwise distributed without prior written authority. Moritz Palm