Telecom Italia S.p.A. · MIL:TIT
Telecom Italia — Q1 2010 Earnings Presentation
20 slides from Telecom Italia's earnings presentation, May 6, 2010
Slide 1: Telecom Italia 1Q 2010 Results
TELECOM ITALIA GROUP 1Q 2010 Results Milan, May 6th, 2010 Telecom Italia 1Q 2010 Results MARCO PATUANO
Slide 2: Safe Harbour
TELECOM ITALIA GROUP 1Q 2010 Results 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 this presentation and include statements re
Slide 3: Agenda
TELECOM ITALIA GROUP 1Q 2010 Results Agenda The Transformation Journey: 1Q 2010 Main Achievements Reverse Revenues Trend: Mobile Business Fixed Business Integrated Approach Opportunities Excellence in Customer Satisfaction Cash Cost Rationalization & Operating Model MARCO PATUANO 2
Slide 4: Domestic Market: The Transformation Journey - 1Q2010 Key Highlights
TELECOM ITALIA GROUP 1Q 2010 Results Domestic Market: The Transformation Journey - 1Q 2010 Main Achievements 2008 2009 2010-2012 1Q2010 Key Highlights Gross adds rebound “Value for Money” Market Mobile Outgoing traffic growth Proposition Repositioning Share impaired by Recovery Consolidation of Mobi
Slide 5: Domestic Revenues: On the Right Track
TELECOM ITALIA GROUP 1Q 2010 Results Domestic Revenues: On the Right Track Euro mln, Organic Data Domestic Revenues by Technology Domestic Revenues by Customer Segment Domestic 5,354 -7.1% 4,974 TI Sparkle & Nat. Wholesale 910 -0.5% -7.1% 905 Domestic 5,354 Top 893 4,974 -7.2% 829 -7.4% Mobile 2,059
Slide 6: Agenda
TELECOM ITALIA GROUP 1Q 2010 Results Agenda The Transformation Journey: 1Q 2010 Main Achievements Reverse Revenues Trend: Mobile Business Fixed Business Integrated Approach Opportunities Excellence in Customer Satisfaction Cash Cost Rationalization & Operating Model MARCO PATUANO 5
Slide 7: Reverse Revenues Trend - Domestic Mobile Revenues
TELECOM ITALIA GROUP 1Q 2010 Results Reverse Revenues Trend - Domestic Mobile Revenues Change vs. Δ% 4Q 4Q09 1Q09 1Q10 Δ % YoY 09/08 Total 2,059 1,907 (7.4) (19.3) +12 p.p. Services 1,993 1,850 (7.2) (12.9) +6 p.p. Stabilized: o/w Outgoing Voice 1,154 991 (14.1) (14.6) flat price reduction; volumes
Slide 8: Domestic Mobile: Main Evidences
TELECOM ITALIA GROUP 1Q 2010 Results Reverse Revenues Trend - Domestic Mobile: Main Evidences Objectives KPI’s Customer Base Calling - Change yoy (‘000) TIMX Users 1Q09 2Q09 3Q09 4Q09 1Q10 1.5 mln CB Value Stabilized protection -401 -537 -544 -762 Sept09 Apr10 “Tutto Compreso” Gross Adds (‘000)* Out
Slide 9: Agenda
TELECOM ITALIA GROUP 1Q 2010 Results Agenda The Transformation Journey: 1Q 2010 Main Achievements Reverse Revenues Trend: Mobile Business Fixed Business Integrated Approach Opportunities Excellence in Customer Satisfaction Cash Cost Rationalization & Operating Model MARCO PATUANO 8
Slide 10: Reverse Revenues Trend - Domestic Wireline Revenues
TELECOM ITALIA GROUP 1Q 2010 Results Reverse Revenues Trend - Domestic Wireline Revenues Euro mln, Organic Data, % 1Q09 1Q10 Δ% YoY Total 3,674 3,498 (4.8) Services 3,543 3,406 (3.9) Voice 1,744 1,551 (11.1) BB Services Internet 402 432 +7.5 +8.9% Business Data ICT Services 320 294 (8.1) +0.8% Whole
Slide 11: Domestic Fixed: Retail and Wholesale Dynamics
TELECOM ITALIA GROUP 1Q 2010 Results Reverse Revenues Trend - Domestic Fixed: Retail and Wholesale Dynamics Euro mln, Organic Data, % Total Fixed Revenues -4.8% 3,674 3,498 1Q09 1Q10 TI Wholesale TI Retail Lower OLO growth/Reduced Push on Low Margin Itz Revenues Stabilizing Loss on Access National W
Slide 12: Domestic Fixed: TI Access Performance
TELECOM ITALIA GROUP 1Q 2010 Results Reverse Revenues Trend - Domestic Fixed: TI Access Performance Telecom Italia Retail Access Evolution & Line Losses Key Highlights ‘000 16,972 16,621 16,358 16,097 15,901 TI Access Lowest line losses level since first quarter 2009 through successful retention act
Slide 13: Domestic Fixed: Focus on Broadband
TELECOM ITALIA GROUP 1Q 2010 Results Reverse Revenues Trend - Domestic Fixed: Focus on Broadband TI Retail Broadband Accesses Broadband ARPU ‘000 Euro/month/line +3.3% +0.4 +71 18.7 18.3 TI retail accesses 6,843 6,859 6,921 7,000 7,071 Free Flat (%) 79% 81% 81% 83% 84% 1Q09 2Q09 3Q09 4Q09 1Q10 1Q09
Slide 14: Agenda
TELECOM ITALIA GROUP 1Q 2010 Results Agenda The Transformation Journey: 1Q 2010 Main Achievements Reverse Revenues Trend: Mobile Business Fixed Business Integrated Approach Opportunities Excellence in Customer Satisfaction Cash Cost Rationalization & Operating Model MARCO PATUANO 13
Slide 15: Business Main Achievements in 1Q10
TELECOM ITALIA GROUP 1Q 2010 Results Reverse Revenues Trend - Business Main Achievements in 1Q10 Key Activities Key Evidence Net adds (‘000 lines) 1Q09 4Q09 1Q10 Improved TI positioning based on -44 -25 Impresa Semplice brand and higher Fixed -78 -24 -50 April10 Quality of Service Mobile* -52 Fixed
Slide 16: Agenda
TELECOM ITALIA GROUP 1Q 2010 Results Agenda The Transformation Journey: 1Q 2010 Main Achievements Reverse Revenues Trend: Mobile Business Fixed Business Integrated Approach Opportunities Excellence in Customer Satisfaction Cash Cost Rationalization & Operating Model MARCO PATUANO 15
Slide 17: Excellence in Customer Satisfaction and Advertising Awareness
TELECOM ITALIA GROUP 1Q 2010 Results Excellence in Customer Satisfaction and Advertising Awareness Key Activities Key Evidence 40 Spontaneous Advertising Awareness TIM ramps up to the top in 30 Spontaneous Advertising 20 Awareness Reach 10 Vodafone Wind H3G Excellence in 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 18: Agenda
TELECOM ITALIA GROUP 1Q 2010 Results Agenda The Transformation Journey: 1Q 2010 Main Achievements Reverse Revenues Trend: Mobile Business Fixed Business Integrated Approach Opportunities Excellence in Customer Satisfaction Cash Cost Rationalization & Operating Model MARCO PATUANO 17
Slide 19: Domestic: EBITDA Analysis
TELECOM ITALIA GROUP 1Q 2010 Results Domestic: EBITDA Analysis Euro mln, Organic Data, % 1 2 3 4 2,538 -380 +38 +22 -21 +100 +164 2,461 -77M€, -3.0% 1Q09 Revenues Intercon Handset* Cust. Care Advertising Fixed 1Q10 -nection & Other Comm.* & Acq. Costs* Costs** 1 3 Boost on Advertising and Acquisitio
Slide 20: Progress on Domestic Efficiency Plan
TELECOM ITALIA GROUP 1Q 2010 Results Progress on Domestic Efficiency Plan Euro mln, Organic Data, % Delta Cash Cost Δ Δ Δ Netwk Mktg & Org. & Delivery Building Vol. IT COP & 1Q10 vs 1Q09 ITX Driven Efficiency Ops Distrib. Support & Assur. Energy Δ Abs 1Q10 ’10 vs ‘09 Total Opex 2,513 -303 -100 -62 -