Telecom Italia S.p.A. · MIL:TIT
Telecom Italia — Deutsche Bank German & Austrian Corporate Conference 2008
26 slides from Telecom Italia's conference presentation, Jun 5, 2008
Slide 1: Telecom Italia International
TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Telecom Italia International STEFANO MAZZITELLI
Slide 2: Safe Harbour
TLCne-051027-P1 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Safe Harbour This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a
Slide 3: Telecom Italia International Portfolio
TLCne-051027-P2 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Telecom Italia International Portfolio European Broadband HanseNet (Germany) TI France BBNed (The Netherlands) ETECSA Cuba (Fixed and Mobile) Int’l Wholesale Services Entel Bolivia (Fixed and Mobile
Slide 4: International Market scenario
TLCne-051027-P3 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 International Market scenario European Broadband and Latin America Mobile are TI’s areas of strategic presence and focus, and key growth areas for the TLC market Mobile in Emerging Markets represent
Slide 5: European Broadband Market and Telecom Italia presence
TLCne-051027-P4 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 European Broadband Market and Telecom Italia presence Net BB Lines mln 2007 J 2010 Adds Telecom Italia European Broadband Customer base Germany 19.2 25.0 9% 6,0 March 2008 UK 15.9 22.3 12% 5,4 Germa
Slide 6: European Broadband: customer base evolution
TLCne-051027-P5 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 European Broadband: customer base evolution Broadband Portfolio Total customer portfolio: BB+NB ‘000 BroadBand Access ‘000 Access, March 2008 +73 +133 The Netherlands +107 +86 3,512 Total 3,439 189
Slide 7: European Broadband: main results by Country
TLCne-051027-P6 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 European Broadband: main results by Country € Mln,, ‘OOO lines, %, Reported Data Total European BB* of which HanseNet + AOL of which BBNED 1Q ’08 1Q ’07 Δ Abs Δ% 1Q ’08 1Q ’07 Δ Abs Δ% 1Q ’08 1Q ’07
Slide 8: HanseNet: 1Q 08 progress on strategic priorities
TLCne-051027-P7 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 HanseNet: 1Q 08 progress on strategic priorities Market Results Operational Excellence Gross adds continue in line with previous Since March service levels show strong quarter (253k); overall BB net
Slide 9: International Wholesale: Strategic guidelines
TLCne-051027-P8 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 International Wholesale: Strategic guidelines Enlarge structural presence in strategic markets by developing infrastructure and international services, in line with the TI profile Offer a complete s
Slide 10: Growth on MNCs Market
TLCne-051027-P9 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Growth on MNCs Market Develop capabilities and advanced solutions for Italian and Goal European Multinational Customers DRIVERS NETWORK COVERAGE MNCs Proprietary Network TI Sparkle global capabiliti
Slide 11: Focus on Mediterranean Infrastructure growth
TLCne-051027-P10 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Focus on Mediterranean Infrastructure growth Internet demand EU-India (Gbps) CAGR ’07-’11 2.009 US 1.598 +52% US 1.101 622 UK 373 Italy Greece UK Spain Turkey 2007 2008 2009 2010 2011 Source: Inter
Slide 12: Building on current assets for future growth
TLCne-051027-P11 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Building on current assets for future growth Consolidate presence in market where Telecom Italia can sustain a long term profitable position Monitor opportunities in emerging high growing markets a
Slide 13: Telecom Italia HanseNet/Alice in Germany
TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Telecom Italia HanseNet/Alice in Germany CARLOS LAMBARRI
Slide 14: Germany: Broadband Market evolution
TLCne-051027-P13 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Germany: Broadband Market evolution mln lines +6 mln lines +3 bln € CAGR ’07-’10 10% ~ 24 ~ 25 ~ 22 19 15 11 7 2004 2005 2006 2007 2008 2009 2010 BB Access on Fixed Lines (%) 18% 28% 39% 50% 57% 63
Slide 15: Competitive scenario 2008
TLCne-051027-P14 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Competitive scenario 2008 REGULATION: Bitstream-Offer in place since mid of May No add. significant changes expected for 2008 DSL INDUSTRY: Intense competition based on ALTERNATIVE Broadband triple
Slide 16: Alice Germany Market Position
TLCne-051027-P15 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Alice Germany Market Position ADSL customers (Mln) 1Q 2008 M/S ADSL Add Customers Q1/08 9,3 48% 603 k Alice is now clearly positioned among the 2,8 14% 110 k TOP 4 German Players 2,4 13% 23 k Criti
Slide 17: Growth of Hansenet broadband customer base
TLCne-051027-P16 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Growth of Hansenet broadband customer base Residential and Business Broadband Customers EOP (000s) 2.372 2.349 AOL AOL Broadband customer base 820 707 has increased to 2,372,000 +153% in a 23k net
Slide 18: Key elements of success
TLCne-051027-P17 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Key elements of success Brand Awareness in % BB customer base ‘000 BB customers 2.349 2.372 66% = Resale 46% 855 = ULL 950 27% 929 1.517 10 1.399 548 +8% 919 Nov 06 Dec 07 May 08 EOY 05 EOY 06 EOY
Slide 19: HanseNet: main results
TLCne-051027-P18 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 HanseNet: main results Main economic performance drivers € Mln, % Reported Data Organic Growth HanseNet maintained ∼13% market sh. ytd German market in 1Q was characterized by 1Q ’08 1Q ’07 Δ Δ% Δ
Slide 20: Market success: enhancement of existing quadruple play product
TLCne-051027-P19 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Market success: enhancement of existing quadruple play product Fixed voice Internet Access Main offers: National fixed calls Main offers: DSL flatrate at 16 Mbs included in DSL Bundles Portal Porta
Slide 21: Market success: enhancement of existing quadruple play product
TLCne-051027-P20 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Market success: enhancement of existing quadruple play product Brand Dual Play (Basic Offer) Best Offer in The Market: 29,90€ 16Mb Adsl Flat Internet Flat voice (national fix) Best in class e.mail
Slide 22: Operational Excellence: 2008 priority
TLCne-051027-P21 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Operational Excellence: 2008 priority Key elements Reach truly excellent availability for DSL and Telephone Services Improve Quality of (99,99% on own ULL network) existing products Significantly r
Slide 23: Profitability: 2008
TLCne-051027-P22 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Profitability: 2008 Key elements Continue upselling to ULL products – weight of customers on DTs resale network will decrease to 30% (down from >40% EOP 2007) Keep ARPU stable Push options such as
Slide 24: Network Development: 2008-2010
TLCne-051027-P23 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Network Development: 2008-2010 ULL Network Coverage* HanseNet will not extend further ~ 70% own ULL network as development 70% ~ 60% of NGNs might reduce timeframe ~ 75% ~ 75% 60% for usage 50% ~41
Slide 25: Vision
TLCne-051027-P24 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 Vision Key elements Alice will be the contact point not only for all Telecommunication One face for many services (Broadband, Fix, Mobile and TV) but also for the applications needs delivered: secu
Slide 26: HanseNet: 2008 - 2010 Targets
TLCne-051027-P25 TELECOM ITALIA Deutsche Bank German & Austrian Corporate Conference Frankfurt, June 5 HanseNet: 2008 - 2010 Targets 2007 2008 2010 Reported data Actual Targets Targets BB Customer Portfolio 2.3 2.6-2.7 ~ 3.4 (‘mln Access - EoY) Revenues 1.1 Bln € ~ 1.3 Bln € ~ 1.7 Bln € EBITDA margi
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