Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — FY2019 Earnings Presentation
27 slides from Telecom Argentina Sa Class B's earnings presentation, March 2020
Slide 1: Company Presentation
TELECOM ARGENTINA Company Presentation March 2020
Slide 2: Disclaimer
This presentation may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii) the synergi
Slide 3: Disclaimer: inflation adjustment accounting (Resolution 777/18)
The Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores (“CNV”), which establishes that the restatement for inflation will be applied to the annual financial statements, for intermediate and special periods ended as of Decemb
Slide 4: Agenda
AGENDA 01 02 03 04 MACROECOMIC BUSINESS FINANCIALS Q&A ENVIRONMENT HIGHLIGHTS 3
Slide 5: Agenda
AGENDA 01 02 03 04 MACROECOMIC BUSINESS FINANCIALS Q&A ENVIRONMENT HIGHLIGHTS 4
Slide 6: Macroeconomic environment: FX rate, inflation, interest rate
+59% BNA Ask Rate BCS TEO/TECO2 YoY Average 80,42 73,94 74,91 FX 4Q18: $37.10 FX RATE 61,91 63,50 (EoM) 35,86 37,76 39,75 37,54 39,27 43,42 45,10 44,71 43,01 44,72 59,51 57,59 59,67 59,94 59,89 Average 43,35 44,15 44,76 42,46 43,88 FX 4Q19: 35,95 37,72 37,70 37,35 39,15 $59.34 oct-18 nov-18 dic-18 e
Slide 7: Agenda
AGENDA 01 02 03 04 MACROECOMIC BUSINESS FINANCIALS Q&A ENVIRONMENT HIGHLIGHTS 6
Slide 8: 2019 in Figures
2019 IN FIGURES Revenues EBITDA EBITDA Margin 4.0 U$S BN* 1.3 U$S BN* 32.5% Million mobile 19.1 subscribers in Argentina 3.5 Million Pay TV subscribers Million Million 4.1 broadband subscribers 3.2 fixed subscribers Million Of broadband 1.4 convergent unique clients 40% clients with mobile bundle *
Slide 9: Our vision: Empowering your world
OUR PURPOSE Our vision » Consolidate as leaders in NPS, Revenue Share & Market Share » Provide solutions beyond connectivity » Transform ourselves in a Marketplace » Agile, efficient and digital » The best place to develop and work Empowering your world » In continuous growth 8
Slide 10: We delivered on what we committed
We delivered on what we committed Improving NPS of Speed up Creating a future Keep on leading the our services convergence proof network local Telecom market Dinamically Consolidating Flow adjusting prices as the IP video Increasing market platform share in mobile
Slide 11: Broadband network, Flow services, mobile network
BROADBAND NETWORK FLOW SERVICES MOBILE NETWORK The fastest and best coverage Flow vs Classic HD: network in the country: Positive portability 3x more usage NPS improvement during 2019 -50% Churn Fastest network in the country Flow aims to become a “entertainment marketplace” 50 Mb Best Best Video Av
Slide 12: IT Transformation
IT TRANSFORMATION FAN Configurate FAN in order to Complete allow progressive migration of Full Mobile (BSS Start Mobile MVP clients to CRM Quad Play Transformation) Migration Jan 19 -Oct 19 Dec -19 Jun -20 Jul-20 4UP Configure S 4 Hanna Digital administration Go Live (Backend operation of minor & tr
Slide 13: Going forward with the transformation
Data Inner Core Going forward with the International gateway transformation Program of our Logic Unification Network: Outer Core AMBA & LITO & MEDI in progress 12
Slide 14: Cultural transformation
UNIONS AGREEMENTS Field Service convergence Agreement signed, Commercial branches Implementation in progress NOC convergence and new operation process Call Center Representatives In negotiation convergence THE DIGITAL CHALLENGE Cultural transformation 13
Slide 15: Business evolution
BUSINESS EVOLUTION Accesses ARPU / ARBU 53.8% YoY Inflation (In thousands) ($ per month per user in Prepaid Postpaid +8% historical figures) 267 303 +64% Increase in 11.441 11.382 YoY 237 11.164 10.830 10.964 185 216 YoY postpaid 7.152 7.323 7.445 7.533 7.701 participation QoQ +2% Postpaid 4Q18 1Q19
Slide 16: Drivers of growth
DRIVERS OF GROWTH POSITIVE CLIENTS INFLOW FLOW BOXES Flow for Source: ENACOM In Thousand FTTH and xDSL networks clients 119,3 966 871 65,3 45,8 723 35,8 26,9 550 602 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Personal Claro Movistar MOBILE DATA USAGE BROADBAND SPEEDS PREPAID RECHARGING FRECUE
Slide 17: Agenda
AGENDA 01 02 03 04 MACROECOMIC BUSINESS FINANCIALS Q&A ENVIRONMENT HIGHLIGHTS 16
Slide 18: Revenues and EBITDA evolution
REVENUES EBITDA Million of P$ Million of P$ Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes) Figures -8% +39% -11% 258,518 33,8% 33,2% 33,5% 32,5% +42% 237,024 120 000 35% 42.843 100 000 86,715 30% 121.358 77,084 25% 12.548 8
Slide 19: Revenues breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUES BREAKDOWN Million of P$ Million of P$ -7% 6,1% 0,3% 15,8% 34,7% 238.774 222.586 20,8% FY18 IAS 29 FY19 IAS 29 22,2% REVENUES COMPOSITION Mobile Broadband Pay TV Billion of P$ 88,9 Fixed & Data Handsets Other 82,2 58,1 55,5 52,6 49,4 35,6 37,6 19,7 14,4 0,
Slide 20: IAS 29 EBITDA FY19 – FY18
IAS 29 EBITDA FY19 – FY18 YoY IFRS, Million of P$ Variation -P$9,631;-11% Fees for Programming Ss. Revenues & Handsets services, maint. Commissions & and content EBITDA FY18 other incomes Sales Handsets Costs Labor Costs ITX Costs and materials Taxes Adv Costs Others* EBITDA FY19 86.715 16.188 150%
Slide 21: Consolidated results
CONSOLIDATED RESULTS 9M18 IAS 299M19 IAS 29 ∆$ ∆% D&A $ 33,807 $ 38,820 $ 5,013 15% OPERATING INCOME NET INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes)
Slide 22: Capex
CAPEX INVESTMENTS EVOLUTION* FY19 HIGHLIGHTS Million of P$ +8% Extending solid competitive position in terms of network infrastructure: 65.425 70.865 More than 540 new sites were deployed. Around 2,430 FTTH blocks were enabled, FY18 IAS 29 FY19 IAS 29 and around 1,300 are under construction TECHNICA
Slide 23: Cash flow
CASH FLOW FCF GENERATION FY18 FCF GENERATION FY19 Million of P$ Million of P$ 86,715 65,327 77,084 65,489 21,510 33,105 1,744 31,361 6,357 15,031 9,130 5,901 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF U$S 99 -1,093 553 -29 524 1,448 -1,091 -106 251 -152 1,287
Slide 24: Key figures
KEY FIGURES In P$ Millions FY18 FY19 Revenues 258,518 237,024 Annual Inflation: EBITDA 86,715 77,084 53.8% Gross Debt 122,012 151,996 Cash & Equivalents 21.053 27.171 Net Debt 100,959 124,825 Annual Currency Capex* 65,327 64,489 depreciation: 58.9% EBITDA-Capex* 21,382 11,595 Ratios FY18 FY19 EBITDA
Slide 25: Maturity schedule as of December 2019
Debt Principal as of December 31, 2019 U$S P$ GUA Total (U$S) (million) (million) (million) (million) Class A Bond 2021 465 - - 465 Class I Bond 2026 400 400 Ve n d o r F i n a n c i n g 79 - - 79 IFC Loan 300 - - 300 IFC New Loan 310 - - 310 IIC Loan 75 - - 75 Te r m L o a n d u e 2 0 2 2 250 - - 2
Slide 26: Agenda
AGENDA 01 02 03 04 MACROECOMIC BUSINESS FINANCIALS Q&A ENVIRONMENT HIGHLIGHTS 25
Slide 27: Investor Relations Contact
Investor Relations Contact Telephone: (5411) 4968 3628 E-mail: relinver@teco.com.ar