Telekom Austria Ag · VIE:TKA
Telekom Austria — A1 Telekom Austria Group — Q1 2022 Earnings Presentation
37 slides from Telekom Austria's earnings presentation, Apr 26, 2022
Slide 1: Results for the first quarter 2022
Results for the first quarter 2022 Vienna, April 26, 2022
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 2022
Operational and financial highlights for the first quarter 2022 3
Slide 4: Highlights for the first quarter 2022
Highlights for the first quarter 2022 Group (in EUR million) Q1 2022 Q1 2021 % change Total revenues 1,166.4 1,135.5 2.7% Service revenues 988.2 955.7 3.4% EBITDA before restructuring* 452.7 419.3 7.9% CAPEX 179.6 204.0 -11.9% Service revenue and EBITDA growth in all markets Inflation: Indexatio
Slide 5: Austria and CEE markets in Q1 2022
Austria and CEE markets in Q1 2022 Total revenues Service revenues EBITDA before restructuring (in EUR mn) (in EUR mn) (in EUR mn) +2.7% +3.4% +7.9% 6.3 24.7 1,166.4 1,135.5 24.6 988.2 955.7 7.4 452.7 16.2 419.3 15.7 Revenues Austria CEE markets Revenues Service Austria CEE markets Service EBITDA Au
Slide 6: Austria: Service revenue increase of 1.3% driven by mobile
Austria: Service revenue increase of 1.3% driven by mobile, additionally, positive equipment margin benefits EBITDA Total revenues (in EUR mn) Operational data Δ: +1.0% Decent performance of mobile core business and growing number of high value tariffs in the portfolio; demand remains solid for mo
Slide 7: CEE: Service revenue and EBITDA growth in all segments
CEE: Service revenue and EBITDA growth in all segments EBITDA Highlights CEE (in EUR mn; Q1 22 %-change vs. PY) Bulgaria: Strong service revenue growth (+8.5%) continued also in Q1 2022 Δ: +6.7% Δ: +6.3% Δ: +12.9% Fixed-line benefited from upselling to higher broadband speeds, demand for Δ in BY
Slide 8: Q1 2022: Increase in free cash flow driven by solid operational performance
Q1 2022: Increase in free cash flow driven by solid operational performance (in EUR million) Q1 2022 Q1 2021 % change EBITDA 431.6 398.3 8.4% Restructuring charges and cost of labor obligations 22.5 21.5 4.6% Lease paid (principal, interest and prepayments) -65.6 -59.8 -9.8% Income taxes paid -16.5
Slide 9: Focus Points
V / VZ Focus Points V A -
Slide 10: Belarus: operational overview and potential FX development amidst Russia-Ukraine conflict
Belarus: operational overview and potential FX development amidst Russia-Ukraine conflict 15.6% 14.4% 13.0% 13.5% 12.2% 11.2% 11.4% Strong operational growth in local currency continued in Q1 2022 9.8% 9.4% 9.6% 10.2% 9.5% 10.2% 8.7% Stable consumer demand for core telco services but recent stag
Slide 11: Indexation of retail tariffs in Austria and Bulgaria; rising energy costs to be mitigated
Indexation of retail tariffs in Austria and Bulgaria as well as increases in Belarus; rising energy costs to be mitigated Inflationary contract clauses Rising energy prices Electricity cost: Total Group • triggered in 2 biggest markets (Austria and Bulgaria) • FY 2022 impact on Group revenues: a
Slide 12: Outlook
Outlook for the full year 2021 12
Slide 13: Outlook for the full year 2022 - confirmed
Outlook for the full year 2022 - confirmed April 26, 2022 Consensus 2022 Total revenues Close to 3% EUR 4,855 mn (+2.2% vs FY ’21) CAPEX Approx. 15% y-o-y EUR 947 mn (+14.6% vs FY ‘21)* *CAPEX consensus excl. spectrum Total revenue growth expected to be driven by ongoing solid service revenue tren
Slide 14: Appendix ESG
Vv / Vz Appendix 1 7 ESG A’ |
Slide 15: 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 2022 15
Slide 16: 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 Increase energy efficiency by 80% 2
Slide 17: The 'E' of ESG
The ‚E‘ of ESG CO2-emission 2030 More than 100 mobile base stations powered by self-generated electricity from wind or Reach net carbon neutrality from own solar power operations by Phase-out of diesel generators decreasing the own carbon footprint and Increase in group-wide share of renewab
Slide 18: The 'S' of ESG
The ‘S’ of ESG Since 2011 over 261,000 participants within 15,000 workshops (group-wide) Digital Education 2023 To address 100,000 people – especially children and young people – as part of the “A1 Internet for All” became the new “A1 digital.campus” in 2021, with a focus on robotics, focus on d
Slide 19: The 'G' of ESG
The ‘G’ of ESG Strong tone-from-the-Top Compliance messages Maintain a best-practice and externally Focus on sanction checks in connection with the Ukraine war certified compliance management Our humanitarian aid for Ukrainian refugees led to an increase in donations system to safeguard the A1
Slide 20: ESG KPIs
ESG KPIs 2020 2021 Change Environment* CO2-emissions (in t)** 246,990 197,656 -20% E Energy efficiency (in Mwh/Terabyte) 0.14 0.11 -18% 84,880 (only Old devices recycled (No.) mobile) 166,038 n.a. Digital Education*** Participations in media literacy trainings (no.) 9,239 33,190 +259% S Number of Wo
Slide 21: ESG Milestones & Goals
ESG Milestones & Goals Relevant milestones reached ... ... and ambitious goals to achieve Social & Governance Launch Strategy will be extended to Climate targets were Alignment in CO2 “People Sustainability Materiality Analysis to approved by the Science- reporting process & first Strategy” expandin
Slide 22: Appendix 2: Additional information on KPIs and financials
Appendix 2 Additional information on KPIs and financials 22
Slide 23: A1 Telekom Austria Group: The leading regional communications player
A1 Telekom Austria Group: The leading regional communications player providing convergent telecommunication services as of December 31, 2021 (in ‘000) Austria Bulgaria Croatia Mobile market position #1 Mobile market position: #1 Mobile market position #2 Mobile subscribers: Mobile subscribers: Mobil
Slide 24: A1 Telekom Austria Group: Profit and Loss
A1 Telekom Austria Group: Profit and Loss (in EUR million) Q1 2022 Q1 2021 % change Service Revenues 988.2 955.7 3.4% Equipment Revenues 155.3 162.1 -4.2% Other operating income 23.0 17.8 29.4% Total Revenues 1,166.4 1,135.5 2.7% Cost of Service -338.1 -323.6 -4.5% Cost of Equipment -147.7 -164.2 10
Slide 25: Total revenues & costs and expenses per segment
A1 Telekom Austria Group: Total revenues & costs and expenses per segment A1 Telekom Austria Group - Total Revenue Split Total Revenues (in EUR million) Q1 2022 Q1 2021 % change Austria 663.7 657.4 1.0% Bulgaria 137.0 132.2 3.7% Croatia 107.5 105.9 1.5% Belarus 98.7 92.4 6.8% Slovenia 52.0 51.4 1.2%
Slide 26: A1 Telekom Austria Group: Workforce development
A1 Telekom Austria Group: Workforce development FTE (Average Period) Q1 2022 Q1 2021 % change Austria 7,115 7,284 -2.3% International 10,288 10,361 -0.7% Corporate 393 374 5.0% A1 Telekom Austria Group 17,795 18,019 -1.2% FTE (End of Period) Q1 2022 Q1 2021 % change Austria 7,121 7,307 -2.5% Interna
Slide 27: A1 Telekom Austria Group: Net debt
A1 Telekom Austria Group: Net debt as of March 31, 2022 Net Debt (excl. Leases) (in EUR million) 31 March 2022 31 December 2021 % change Long-term Debt 1,046.4 1,046.1 0.0% Short-term Borrowings 1,850.0 1,553.2 19.1% Cash and Cash Equivalents -1,006.5 -534.4 -88.3% Net Debt (excl. Leases) of A1 Tele
Slide 28: A1 Telekom Austria Group: Financial debt maturity profile
A1 Telekom Austria Group: Financial debt maturity profile as of March 31, 2022 (in EUR mn) 1,850.0 746.7 299.7 0.0 0.0 0.0 750.0 2022 2023 2024 2025 2026 2027 Long-term Short-term EUR 2,896.3 mn short- and long-term debt as of March 31, 2022 Lines of credit Ratings Average cost of debt of 1.67%
Slide 29: Appendix 3: Reconciliation of Free Cash Flow
Appendix 3 Reconciliation of Free Cash Flow 29
Slide 30: Q1 2022: Reconciliation free cash flow
Q1 2022: Reconciliation free cash flow 1-3 M 2022 1-3 M 2021 % change FCF after social plans new 197.1 174.1 13.2% Social plans new funded 25.4 23.5 7.9% Total social plans paid* -24.7 -25.4 -2.9% FCF - previously reported 197.8 172.2 14.9% *In the previous view all payments for all social plans (ol
Slide 31: Appendix 4: Regulatory Topics
Appendix 4 Regulatory Topics 31
Slide 32: Mobile Termination Rates
Mobile Termination Rates Jul Jan Mar Jan April Aug Jul Jan 2017 2018 2019 2020 2020 2020 2021 2022 Austria (EUR) 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.007 0.0055 Bulgaria (BGN) 0.014 0.014 0.014 0.014 0.014 0.014 0.007 0.0055 Croatia (HRK)* 0.047 0.047 0.047 0.045 0.045 0.045 0.006
Slide 33: Upcoming spectrum tenders/prolongations/assignments
Upcoming spectrum tenders/prolongations/assignments* Expected Comments There’s an ongoing activity on a new “Spectrum Release Plan for Austria”, as well as Austria 2023 (26 GHz) preparatory works later this year for the allocation of 26 GHz in 2023. Bulgaria 2022 (700MHz, 800 MHz) No further info ye
Slide 34: EU Roaming Regulation (Wholesale Tariffs)
EU Roaming Regulation (Wholesale Tariffs) WHOLESALE July- Dec 22 2023 2024 2025 2026 2027 2028 Data (€/per GB) 2.00 1.80 1.55 1.30 1.10 1 1 Voice (€Cents/per minute) 2.20 2.20 2.20 1.90 1.90 1.90 1.90 SMS (€Cents/per SMS) 0.40 0.40 0.40 0.30 0.30 0.30 0.30 Results for the first quarter 2022 34
Slide 35: Appendix 5: Personnel restructuring in Austria
Appendix 5 Personnel restructuring in Austria 35
Slide 36: Quarterly Overview: Restructuring charges and provision vs. FTE
Quarterly Overview: Restructuring charges and provision vs. FTE Overview restructuring charges FTEs addressed (in EUR million) FTEs adressed 2015 2016 2017 2018 2019 2020 2021 Q1 22 2015 2016 2017 2018 2019 2020 2021 Q1 22 FTE reduction 69.5 95.0 9.1 70.1 100.2 91.3 95.1 26.1 Transfer to government
Slide 37: End of Presentation
V / VZ End of Presentation 7 Al
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