Magyar Telekom Telecommunications Plc · BET:MTELEKOM

Magyar Telekom Telecommunications — Q3 2006 Earnings Presentation

12 slides from Magyar Telekom Telecommunications's earnings presentation, December 2006

  1. Slide 1: Presentation: First nine months 2006 results

    Presentation First nine months 2006 results Solid underlying segmental performance; accounting impact of EDR

  2. Slide 2: Agenda

    Agenda Overview and Regulatory snapshot First none months 2006 summary and Segment analysis Public targets Acquisition strategy and dividend policy Abbreviations: IC: interconnection, NRA: National Regulatory Authority, CPI: consumer price index, WS: wholesale, SMP: significant market power, MakTel:

  3. Slide 3: Magyar Telekom Group at a glance

    Magyar Telekom Group at a glance Market leader in all core businesses Stock information Integrated operations in Hungary, Over EUR 3.5bn market capitalization Macedonia and Montenegro „ alternative/wholesale operations in Romania, Stock exchange listing Bulgaria and Ukraine „ listed on NYSE and Buda

  4. Slide 4: Regulatory snapshot: Hungarian regulation in line with new EU framework

    Regulatory snapshot Hungarian regulation in line with new EU regulatory framework Fixed-line Mobile New Electronic Communications Act in effect since January 2004 „ geographic number portability since January 2004 „ mobile number portability since May 2004 IC fees close to EU average „ approx 14% cu

  5. Slide 5: First nine months 2006 summary

    First nine months 2006 summary Revenues EBITDA EBITDA margin Group HUF 494,517m +7.6% HUF 192,620m +0.6% 39.0% Fixed-line* HUF 253,357m +3.5% HUF 90,473m -3.3% 35.7% Hungarian „ growth in broadband connections „ SI/IT opportunities captured 214,275 +0.7% 69,586 -10.9% 32.5% „ continuous fall in traf

  6. Slide 6: Hungarian fixed line operations

    Hungarian fixed line operations Broadly stable underlying financial performance Focus on stabilizing revenues Successful broadband operations Aim to migrate traffic revenues to access Accelerated broadband rollout program revenues with flat rate offers „ number of broadband customers* close to 500,0

  7. Slide 7: Hungarian mobile operations

    Hungarian mobile operations Clear market leadership maintained, EDR-related accounting change, stable ARPU, growing usage Highly competitive environment Solid operational performance Subscribers, market shares and penetration Usage growth helped by price elasticity Subscribers (m) 48% 68% 79% 86% 90

  8. Slide 8: Merger of T-Mobile Hungary and Magyar Telekom

    Merger of T-Mobile Hungary and Magyar Telekom Synergies Benefits Front office /sales /communication Financial impact „ unified shop network Following full implementation, we expect „ integrated call-center significant financial benefits from the following „ unified relationship management factors: t

  9. Slide 9: International fixed line operations

    International fixed line operations Solid results at both subsidiaries Macedonia Montenegro Limited top line opportunities Saturated fixed line market „ decreasing number of RPCs „ fixed line penetration rate at 31% „ higher customer number and usage „ strong mobile substitution, traffic decline „ s

  10. Slide 10: International mobile operations

    International mobile operations Strong top line growth, high margins Macedonia Montenegro Subscribers, market shares and penetration Subscribers, market shares and penetration Subscribers (th) Subscribers (th) 76% 99% 79% 79% 90% 109% Penetration 1,600 44% 51% 59% 62% 66% Penetration 1,400 600 1,200

  11. Slide 11: Public targets for 2006-2007

    Public targets for 2006-2007 2006 2007 Revenue at least 3% CAGR reflecting change in EDR accounting EBITDA maintain 2005 level growth in HUF terms Capex / Sales below 15% below 14% Broadband connections ~ 600,000 Hungarian fixed line operations incl. ADSL, cable broadband, leased line & wireless LAN

  12. Slide 12: Acquisition-driven growth and dividend policy

    Acquisition-driven growth and dividend policy Acquisition-driven growth Dividend policy Growth through value-accretive acquisitions Net debt ratio and dividend yield remains a priority Net debt ratio 50% 7.6% 7.6% Dividend yield* 8% 46.6% 7.9% „ integrated operations in Macedonia and Montenegro 38.8

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