Telecom Italia S.p.A. · MIL:TIT
Telecom Italia — FY2012 Earnings Presentation
24 slides from Telecom Italia's earnings presentation, Feb 8, 2013
Slide 1: Full-Year 2012 Preliminary Results and 2013-15 Plan Outline
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline February 8th, 2013 Telecom Italia Group Full-Year 2012 Preliminary Results and 2013-15 Plan Outline FRANCO BERNABE’ - PIERGIORGIO PELUSO
Slide 2: Safe Harbour
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Safe Harbour These presentations contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in
Slide 3: Agenda
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Agenda TI Group 2012 Preliminary Results Telecom Italia Plan Key Actions Financial Evolution Appendix FRANCO BERNABE’ PIERGIORGIO PELUSO 2
Slide 4: Full Year 2012 in Line with Group Targets
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Full Year 2012 in Line with Group Targets Organic Data Group Revenues: 29.5 bln € (+0.5% YoY) Top Line Growth despite Tough Macro Ebitda: 11.9 bln € (-2.0% YoY) and Competition Ebitda Margin: 40.2% (-1.0 p.p. YoY) Consi
Slide 5: TI Group 2012 Revenues and Ebitda by Quarters
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline TI Group 2012 Revenues and Ebitda by Quarters Organic Data, Euro mln Revenues EBITDA +151 -246 EBITDA margin +0.5% -2.0% 4Q’ 12: 39.5% 29,374 29,525 12,111 11,865 (+0.3 pp YoY) 4Q 7.647 -2.5% 7.455 4Q 3.000 -2.0% 2.941
Slide 6: Combining High Profitability with Growth
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Combining High Profitability with Growth Euro mln, Organic Data Weight in TI TI Group Domestic LatAm Group FY 2012 % yoy FY 2012 % yoy FY 2012 % yoy Revenues 29,525 +0.5% 17,906 -5.8% 11,261 +12.9% 38% EBITDA 11,865
Slide 7: Net Financial Debt Evolution
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Net Financial Debt Evolution Euro Bln NFP Adjusted vs Year End 2011 35,9 30,4 (6.5) 3,4 28,3 1,0 (0.2) 2007YE 2011YE Operating FCF* Dividends Disposals & Fin. Cash Fin./ Taxes & 2012YE Adjusted Adjusted Investment other
Slide 8: Agenda: Telecom Italia Plan Key Actions
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Agenda TI Group 2012 Preliminary Results Telecom Italia Plan Key Actions Financial Evolution Appendix FRANCO BERNABE’ PIERGIORGIO PELUSO 7
Slide 9: Key Economic and Industry Trends - Italy
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Key Economic and Industry Trends - Italy GPD Trend Consumer Spending YoY % YoY % FY15 FY15 FY14 0.4 FY14 -0.1 -0.4 -0.9 -1.0 -1.3 -1.7 -1.9 -2.3 -2.4 -2.3 -2.9 -3.2 -4.3 -4.8 -4.2 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Slide 10: Key Economic and Industry Trends - LatAm
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Key Economic and Industry Trends - LatAm GDP growth similar, TLC Value mix different Brazil Argentina Source: BaCen Source: INDEC, National Fiscal Budget 2013 Real 1.8 1.4 GDP 2012E 2013E 2014E 2015E 2012E 2013E 2014E 2
Slide 11: 2013-15: Pervasive Innovation in all Countries & Services
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline 2013-15: Pervasive Innovation in all Countries & Services Technology is the Main Enabler Italy: Brazil: Argentina: Leveraging on our Further opportunities in the Enhance our Unique Infrastructure 4th largest Mobile Mark
Slide 12: Domestic UBB Plan: Reshape the Value of Access
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Domestic UBB Plan: Reshape the Value of Access Over the Network Services Beyond-connectivity Rich Communication M2M Remote Computing NFC & M-Payments Video Conferencing Digital Identity Over The Telco Services Digit
Slide 13: Mobile 2G/3G/4G in Brasil
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Mobile 2G/3G/4G in Brasil Brazil: 2015 Targets Lead the Internet Wave 2G Expansion: TRX Customer MoU VAS HH ready Base Revenues to sell Anatel Target 301 >90 Mln >200 min >26% ~2Mln Reached 271 241 Community FMS Interne
Slide 14: Argentina: Retain Leadership
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Argentina: Retain Leadership Mobile - Vas Revenues on Service Revenues 43% 48% 53% 37% 24% 28% 2012-15: Focus on Technology Capex Latam Argentina Personal Source: Merrill Source: OVUMLynch Global Matrix, and Pyramid. Ml
Slide 15: Increase Fixed and Mobile UBB Investments
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Increase Fixed and Mobile UBB Investments Innovative Capex on Network Capex Trend Italy 12% 21% 26% 28% Cum ‘13-15 ~1.3bn € NGAN + LTE related Capex Efficiencies cum. ‘13-15 ~200mln € 2012 2013 2014 2015 Brazil Argentin
Slide 16: Agenda: Financial Evolution
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Agenda TI Group 2012 Preliminary Results Telecom Italia Plan Key Actions Financial Evolution Appendix FRANCO BERNABE’ PIERGIORGIO PELUSO 15
Slide 17: Telecom Italia Today: a Strong Cash Generator
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Telecom Italia Today: a Strong Cash Generator Euro mln, Reported Data Normalized Operating Free Cash Flow* Net Cash Flow Matrix +85 Revenues 29,957 (454) 29,503 Cuba +59 Tim Fiber (9) Hansenet (7) +1,086 Opex (17,78
Slide 18: Current Debt Profile
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Current Debt Profile Euro mln Bonds Loans (of which long-term rent, financial and operating lease payable € 1,364) Drawn bank facility € 8.18 bln Group Liquidity Position + € 7.95 bln Undrawn Portion of Facility/Committ
Slide 19: Broaden Efficiency Plan
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Broaden Efficiency Plan Customer Care Operations Integration of Business & ToP Clients BUs Further Cost Efficiencies in Italy Real Estate, Energy & Industrial Capex Efficiencies and Optimisation One Single Net
Slide 20: Continuing Deleveraging the Company
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Continuing Deleveraging the Company New Dividend Policy Net Debt Adj. and Net Debt Adj./EBITDA target ratio € Bln € Bln Dividend Cashout 0,90 31,5 30,4 28,3 < 27 0,45 0,45 0,45 < 2.0 x 2012 2013 2014 2015 2010 2011 2012
Slide 21: Agenda: Appendix
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Agenda TI Group 2012 Preliminary Results Telecom Italia Plan Key Actions Financial Evolution Appendix FRANCO BERNABE’ PIERGIORGIO PELUSO 20
Slide 22: TI Group - Main Results by BU - Reported Figures
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline TI Group - Main Results by BU - Reported Figures Euro mln 9M Reported IV Quarter Reported Full Year Reported Actual Actual Actual Actual Actual Actual 2012 2011 Abs 2012 2011 Abs 2012 2011 Abs REVEN
Slide 23: TI Group - Main Results by BU - Organic Figures
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline TI Group - Main Results by BU - Organic Figures Euro mln 9M Organic IV Quarter Organic Full Year Organic Actual Actual Actual Actual Actual Actual 2012 2011 Abs 2012 2011 Abs 2012 2011 Abs REVENUES
Slide 24: Well Diversified and Hedged Debt
TELECOM ITALIA GROUP Full-Year 2012 Preliminary Results and 2013-15 Plan Outline Well Diversified and Hedged Debt Total Gross Debt Net of Adjustment: Euro 37,681 mln Maturities and Risk Management Euro mln Op. Leases and long rent Bank & EIB 1,378 5,767 Average debt maturity: 7.13 years (bond only