Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q2 2020 Earnings Presentation
29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, August 2020
Slide 1: Q2 2020 Results
OTE Hellenic Telecommunications Organization Q2 2020 Results August 2020 GROUP OF COMPANIES 3)
Slide 2: Disclaimer
Disclaimer This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to an
Slide 3: Q2 2020 Highlights
Q2 2020 Highlights -3.0% Group revenues down 3.0% as pandemic weighs on certain revenue lines -3.8% Group revenue* Total revenues* Lockdown drives 8.8% mobile service revenues drop, nearly half of which due to roaming +0.8% Fixed retail down 0.9%, supported by continuing broadband Group Adj. EBITDA
Slide 4: COVID-19 Update
COVID-19 Update Impact • Gradual lifting of lockdown measures took place during May-June with all activities starting with social distancing • Lower Roaming revenues due to travel restrictions • Lower revenues from Postpaid and Prepaid • TV is under pressure due to lack of sports content and rebates
Slide 5: Actions due to Covid-19
Actions due to Covid-19 Employees Society Health OTE Group, fully aware and with a sense of responsibility, • €2mn to hospitals for medical equipment took specific actions: • Supporting the needs of the Ministry of Health: 80% of workforce worked remotely o Contribution in the implementation of pape
Slide 6: Financial Review
Financial Review OTE | Q2 2020 RESULTS 6
Slide 7: KPIs and Group Overview
KPIs and Group Overview Revenues €918mn Romania Revenues Greece, 75% (yoy -3.0%) Romania, 25% €321mn Adj. EBITDA (AL) (yoy +0.8%) Adj. EBITDA (AL) Greece €151mn Greece, 89% Adj. Capex Romania, 11% (yoy -15.2%) €185mn Shareholders* Adj. FCF OTE Group is the largest telecommunications (yoy +7.0%) prov
Slide 8: Capex
Capex Adjusted Capex (€mn) FY2019: -€44m or -6.3% yoy 740 706 20.0% 178 200 25.0% 176 175 690 662 19.0% 180 166 18.0% 151 18.6% 600 160 20.0% 133 640 17.0% 19.4% 140 590 16.9% 18.8% 17.7% 16.0% 16.8% 120 15.0% 540 15.0% 100 16.5% 490 14.0% 80 13.2% 10.0% 13.0% 60 440 12.0% 40 5.0% 390 11.0% 20 340 1
Slide 9: Cashflow
Cashflow Adjusted FCF (€mn) 25% growth in Adjusted FCF (ex spectrum Q2’20: +7.0% yoy & restructuring) expected in 2020 351 334 299 336 254 1,210 212 173 185 1,150 159 1,051 121 133 488 610 36 345 (133) (151) (176) (178) (175) (166) (706) (662) (600) FY 2018 FY 2019 FY 2020 Guidance Q1'19 Q2'19 Q3'19
Slide 10: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Shareholder Remuneration Policy 0.55 0.46 100% FCF Distribution through a combination of dividends and share buybacks 65%/35% Targeted split between dividends and share buybacks FY 2018 FY 2019 €0.555409 Dividend per share paid by Company to its
Slide 11: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€mn) (IFRS amounts) 0.9x 0.9x Adjusted Net Debt/EBITDA 0.8x 0.7x 0.7x 0.6x 2,478 2,382 2,149 2,142 2,110 2,039 1,148 1,182 1,046 1,012 930 848 • Adj. Net Debt stood at €848mn • Adj. Net Debt/EBITDA (AL) stood at 0.6x (1,001) (1,129) (1,064) (1,109) (1,297) (1,534
Slide 12: Greece
Greece OTE | Q2 2020 RESULTS 12
Slide 13: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn)* 840 30.0% 2,943 40.5% 40.3% 43.7% 40.0% 40.8% 41.2% 2,888 771 40.9% 41.5% 790 756 25.0% 1,450 41.8% 450 720 707 740 697 692 20.0% 36.8% 1,181 1,220 400 35.0% 690 15.0% 1,250 337 302 350 31.8% 640 10.0% 1,050 283 290 288 285 25.
Slide 14: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€mn) 20.0% 15.0% 936 261 916 237 234 234 231 233 231 10.0% 211 5.0% 2.8% 2.8% 0.0% • Retail fixed services down by 0.9% supported by 1.8% 1.4% 1.3% 161 -0.9% -5.0% continuing broadband growth -10.0% 111 -15.0% 61 -20.0% FY 2018 FY 2019 Q1'19 Q2'19 Q
Slide 15: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,670k 4,766 4,766 4,759 4,779 4,785 4,783 4,772 4,796 4,806 4,836 45% 44% 44% 45% 45% 45% 45% 45% 45% 45% 55% 56% 56% 55% 55% 55% 55% 55% 55% 55% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 OTE Market Share Co
Slide 16: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines Market Penetration at 2,080k 120% 4,191 100% 83% 83% 84% 85% 85% 86% 87% 3,955 3,987 4,017 4,042 4,095 4,134 81% 81% 82% 3,841 3,865 3,887 80% 75% 76% 77% 78% 70% 72% 73% 74% 53% 53% 52% 52% 52% 51% 51% 51% 51% 50% 68% 69%
Slide 17: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) Fiber Subscribers additions (000) 80 70 840 60 787 54 900 742 140.0% 60 51 53 800 695 49 49 47 646 120.0% 43 45 586 50 700 531 483 34 600 100.0% 449 40 500 405 80.0% 30 400 60.0% 300 20 60.6% 60.5% 55.1% 40.0% 50.0% 200 44.5% 43.9% 44.0% 39.6% 20.0% 10
Slide 18: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 600 528 526 534 542 540 544 549 555 557 563 80 • +3.6% yoy increase in Customer base 500 60 • Champions League, Europa League and English Premier 400 40 League 2018-2021 300 20 • OTE is leveraging its new OTT platform to strengthen its 200 8 8 0 consu
Slide 19: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€mn) +46% of Mobile Service Avg.Data usage* (GB) Q2'20: +60% yoy Revenues 3.8 101 4.0 3.6 96 97 100 105 45% 3.5 3.1 3.2 86 79 76 40% 85 70 74 3.0 2.3 2.4 64 2.1 35% 2.0 2.5 65 30% 1.7 1.8 32% 32% 2.0 25% 45 1.5 20% 25 20% 22% 21% 15% 1.0 19% 18% 19% 18% 16% 0.5 10
Slide 20: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) 90% 72% 74% 75% 75% 80% 68% 70% 70% 71% 70% 66% 67% 60% 50% COSMOTE app was downloaded by 3.2mn users by end of 40% 30% +4pp the quarter. It was further boosted during the quarter 20% 10% and became the major digital contact point with the 0% Q1'18
Slide 21: Romania
Romania OTE | Q2 2020 RESULTS 21
Slide 22: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn)* 980 289 0.14 17.7% 300 100.0% 160 14.6% 14.7% 11.9% 12.5% 14.7% 14.3% 15.8% 933 244 237 80.0% 0.12 231 229 60 250 217 60.0% 150 144 51 160.0% 0.1 50 200 19.3% 40.0% 140 136 110.0% 7.4% 9.5% 0.08 40 36 34 36 -4.4% -2.8% -1.0% 2
Slide 23: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€mn) 247 229 70 58 59 120.0% 60 56 55 57 55 100.0% 80.0% 50 • Retail Fixed Service revenues down 6.6%; Continuing 60.0% 40 40.0% 30 -5.3% -6.0% -5.3% -2.2% -6.6% 20.0% strong broadband performance was offset by pressure -12.2% 20 0.0% on the voice
Slide 24: Romania – Fixed KPIs
Romania – Fixed KPIs Fixed Line Subscribers (000) Broadband Subscribers (000) 1,403 1,347 1,298 1,247 1,191 1,152 1,078 1,055 1,039 1,014 977 959 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 TV Subscribers (000) 3,000 FMC Subscribers (000) Q2'20: +9.4% yoy 2,500 881 849 85
Slide 25: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€mn) Data Revenues as % of Service Revenues 30 26 24 80.0% 25 22 41.2% 21 21 19 60.0% 36.4% 35.8% 35.3% 20 29.2% 30.8% 40.0% 15 35.0% 20.0% 10 22.2% 15.2% 15.2% 5 10.6% 0.0% 3.5% 0 -20.0% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 yoy
Slide 26: Strategy
Strategy OTE, THE LEADING DIGITAL TELCO: THE 6 PILLARS OF OUR STRATEGIC PLAN DIGITALIZATION, GROWTH TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN SIMPLIFICATION AND MINDSET AND SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS COST OPTIMIZATION CULTURE • Optical Fiber • Digital Transformation • ICT Sol
Slide 27: Digital Transformation
Digital Transformation Our goal: to be the leader for Digital Transformation in Greece and a role–model in Europe with superior Customer Experience & Operational Efficiency Digital Interplay Digitalize Service Processes Simplify Portfolio • One App primary touchpoint • Order2Bill: self-service • Sim
Slide 28: Mobile Network Superiority in Greece
Mobile Network Superiority in Greece Best in Test” certification, for sixth COSMOTE Fastest Mobile Network for 4th consecutive year, for its mobile internet and consecutive year voice services in Greece OPERATOR OPERATOR 2XSPEED in Big Cities 3XSPEED On main roads DOWNLOAD SPEED (MBPS) UPLOAD SPEED
Slide 29: Thank you
Thank you OTE | Q2 2020 RESULTS 29
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