Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Magyar Telekom — FY2009 Earnings Presentation

22 slides from Magyar Telekom Telecommunications's earnings presentation, 2010

  1. Slide 1: Magyar Telekom Full Year 2009 results

    Presentation Magyar Telekom Full Year 2009 results Economic environment continues to affect top-line performance; strong market positions maintained amidst intense competition

  2. Slide 2: Overview – Magyar Telekom Group at a glance

    Overview – Magyar Telekom Group at a glance International presence Customer segment-focused organization Ukraine Consumer Business Technology HQ Moldova Hungary Slovenia Croatia Croatia Romania BiH Serbia Macedonia Montenegro Serbia Kosovo Bulgaria Bulgaria Montenegro Macedonia Albania Greece Integr

  3. Slide 3: Our strategy

    Our strategy 3SCREEN ICT SERVICE REGIONAL COMPANY LEADER INNOVATION PRESENCE ƒ TV, PC, and ƒ Integrated IT- ƒ Improved service ƒ Utilize synergies mobile screens telecommunication quality and portfolio within DT group ƒ Technological offerings ƒ Attractive 3Screen ƒ Seeking value- leadership – ƒ App

  4. Slide 4: Hungarian market – infrastructure based-competition

    Hungarian market – infrastructure based-competition Wireline voice traffic trends Mobile subscriber trends 100% Penetration 122% 121% 119% 118% 118% 8% 7% 7% 7% 7% 100% 9% 10% 11% 15% 18% 80% 80% 61% 60% 59% 58% 57% 60% 60% 40% 83% 83% 82% 78% 75% 40% 20% 20% 40% 41% 42% 43% 39% 0% 0% Q4 2008 Q1 200

  5. Slide 5: Strong positions across all segments of the Hungarian market

    Strong positions across all segments of the Hungarian market TV market shares Mobile voice market shares* 100% 100% 13% 13% 13% 13% 13% 7% 6% 6% 6% 6% 21% 21% 22% 22% 23% 80% 80% 24% 24% 24% 24% 23% 60% 60% 34% 34% 33% 33% 33% 40% 33% 33% 33% 32% 32% 40% 20% 20% 45% 45% 44% 44% 44% 23% 24% 24% 25% 2

  6. Slide 6: 3Play as growth engine & retention tool in the residential segment

    3Play as growth engine & retention tool in the residential segment Fixed voice access Strong focus on triple play on all networks (fixed Subscribers line, cable and mobile) -9% 2,000,000 +37% 1,800,000 ƒ new, simple and competitive offers launched under the +62% 1,600,000 T-Home brand in September 2

  7. Slide 7: Changing trends require continued efficiency improvements

    Changing trends require continued efficiency improvements Change in revenue mix Underlying TWM expense in Hungary Annual wage 100% SI/IT: 1% increase 5.5% 5.6% 1.5% New HUF billion revenue SI/IT >10% 80% New 150 sources -5% < 20% revenue 121 114 sources 60% > 30% 100 Voice 40% revenues > 70% Voice 5

  8. Slide 8: Dividend policy

    Dividend policy Historical dividend payments Usage of free cash flow Net debt ratio* DPS (HUF) % of the generated free cash 50% 73 74 74 74 80 70 70 125% 6% 36% 38% 40% 100% 1% 33.2% 60 16% 31.7% 31.0% 29.7% 30.8% Target 17% 30% 13% 1% 1% 75% 40 14% 20% 50% 91% 74% 78% 79% 20 59% 10% 25% 0% 0 0% 200

  9. Slide 9: Economic environment – still a drag on Magyar Telekom

    Economic environment – still a drag on Magyar Telekom Group revenues and Hungarian GDP Economic indicators influence telecommunication 0% spending in different ways ƒ in 2009 all components of economic activity suffered a -2% meaningful decline in Hungary -4% ƒ telecommunication spending lags GDP tr

  10. Slide 10: Public targets for 2009 and 2010

    Public targets for 2009 and 2010 2009 public targets and results 2010 public targets Revenue ~2% decline compared to 2008 -3.1% 8 5-7% decline „ decreasing consumer spending „ continued recessionary impacts „ stronger HUF compared to average „ rationalization in the business sector „ usage and churn

  11. Slide 11: 2009 results – Business Unit analysis

    2009 results – Business Unit analysis Revenue development Underlying EBITDA development HUF million HUF million 280 000 680 000 273,745 664,531 660 000 12,321 270 000 5 888 643,989 262,808 640 000 -6,907 -16,181 -2,815 -2,430 -2,381 -9,055 260 000 -1,995 -4,889 620 000 -2,659 -376 250 000 600 000 58

  12. Slide 12: Consumer Services Business Unit (CBU) - Financials

    Consumer Services Business Unit (CBU) - Financials Fixed line revenues Mobile revenues HUF million HUF million 150,000 140,500 -5% 133,042 198,017 -4% 189,294 200,000 -6% no ch. +19% +4% 150,000 100,000 -8% 100,000 50,000 -6% -10% 50,000 0 0 2008 2009 2008 2009 Voice* Internet TV Other Voice Non-voi

  13. Slide 13: CBU – mobile operations

    CBU – mobile operations ARPU MOU Mobile internet development HUF min „ leading market position with 49% market share 4,000 150 „ number of subscribers exceeded 428,000 at end of 3,397 3,164 127 126 3,000 -7% -1% 2009 100 „ 3G/HSDPA network covering ~74% of population 2,000 50 1,000 0 0 Mobile termin

  14. Slide 14: CBU KPIs

    CBU KPIs Fixed Fixed & mobile broadband Voice ARPA Broadband ARPU Customer growth Subscribers +29% HUF HUF 1 000 000 4,500 6,000 3,650 3,630 5,103 4,427 750 000 +79% -1% -13% 3,000 4,000 500 000 +20% 1,500 2,000 250 000 +9% 0 0 0 2008 2009 2008 2009 end-2008 end-2009 ADSL Cable Mobile Mobile T-Mobil

  15. Slide 15: Regulatory snapshot

    Regulatory snapshot Regulation in line with EU recommendations in all three countries „ Hungary: fully in line with the EU Regulatory Framework „ Macedonia: liberalization of fixed line market in progress, regulated mobile termination rates „ Montenegro: new telecommunication law adopted in 2008 – f

  16. Slide 16: Business Services Business Unit (BBU) - Financials

    Business Services Business Unit (BBU) - Financials Revenues Falling voice revenues HUF million 173,804 -2% 170,989 „ rationalization and cost cutting initiatives at our key 180,000 corporate clients lead to reduction in their telecom spending +12% „ both private and public sector affected by economi

  17. Slide 17: BBU KPIs

    BBU KPIs Fixed voice access DSL connections Subscribers Subscribers 420,000 404,764 -7% 375,383 228,581 -15% 193,628 240,000 180,000 280,000 -6% -18% 120,000 140,000 -21% 60,000 -9% +2% 0 0 end-2008 end-2009 end-2008 end-2009 Business lines Managed leased lines ISDN channels Retail DSL customers Who

  18. Slide 18: Macedonia

    Macedonia Revenues Results supported by significant FX impact „ HUF weakened on average by 11.7% to the Macedonian HUF million 90,000 76,097 +8% 82,312 Denar in 2009 „ excluding FX impact, revenues were down by 3%; underlying +13% EBITDA down by 6% 60,000 +16% Declining traditional fixed line voice

  19. Slide 19: Montenegro

    Montenegro Revenues Results supported by significant FX impact HUF million +4% 34,442 „ HUF weakened on average by 11.9% to the Euro in 2009 33,148 40,000 „ excluding FX impact, revenues were down by 7%; underlying -4% EBITDA down by 3% 30,000 20,000 +1% Fixed voice revenues under pressure +27% „ de

  20. Slide 20: International KPIs Macedonia Montenegro

    International KPIs Macedonia Fixed voice access ADSL/IPTV customer growth Mobile subscribers Subscribers 111% Penetration 116% 20.9% Penetration 18.5% Subscribers 150,000 Subscribers 14,150 2,500,000 500,000 +625% 12% 16% 2,000,000 400,000 100,000 1,952 -13% 29% 28% 1,500,000 300,000 128,368 +30% 1,

  21. Slide 21: Abbreviations

    Abbreviations: 3G: third generation, ARPU: average revenue per user, BB: broadband, CBC: call-by-call, CPS: carrier pre-selection, HQ: headquarters, HSDPA: high-speed downlink packet access, IC: interconnection, IP: internet protocol, IT: information technology, LTO: local telecommunication operator

  22. Slide 22: For further questions please contact the IR department

    For further questions please contact the IR department: Investor Relations Phone: +36 1 458-0423 Fax: +36 1 458-0443 e-mail: investor.relations@telekom.hu 22

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