Empresa Nacional De Telecomunicaciones S.a. · BCS:ENTEL
Empresa Nacional De Telecomunicaciones — Entel — 5th Annual dbAccess Chile Conference 2015
34 slides from Empresa Nacional De Telecomunicaciones's conference presentation, May 2015
Slide 1: 5th Annual dbAccess Chile Conference
5th Annual dbAccess Chile Conference Host by Deutsche Bank London / May 6th -8th / 2015 Entel Chile_
Slide 2: Table of Contents
TABLE OF CON_ TENTS Entel and the Chilean telecom market Company overview Entel´s plans in Peru Financial overview Notes Financial figures reported under IFRS standards. Value in US$, exchange rate as of March 2015: $626.58 Entel Group_
Slide 3: Entel and the Chilean telecom market
Entel and the Chilean telecom market_ Entel Group_
Slide 4: Chile and telecommunications sector
Chile and telecommunications sector_ TELECOMMUNICATIONS GDP / TOTAL GDP 3.00% CHILEAN TELECOM MARKET YEAR 2014 2.47% 2.50% 2.29% 2.21% Telco Market Size (Revenues): 1.98% 1.73% US$ 8.0 bn (-3% vs 2013) 2.00% 1.65% 1.72% 1.42% 1.50% 1.15% 0.99% Pay TV, 13% 1.00% (+11% vs 2013) 0.50% IT Services, 8% 0
Slide 5: Telecom Market: growth opportunities
Telecom Market_ growth opportunities SMARTPHONES PENETRATION NEW TARIFICATION (% total) World USA Chile 80% 80 63% 67% 60 44% 47% 40 33% Tablet 20 0 2012 2013 2014 2015 2016 2017 2018 + Multi devices with charge over exceeded traffic Source: ENTEL 4Q14, OVUM, Informa. Entel Group_ 5
Slide 6: Company overview
Company Company over_view over_view Entel Group Entel Group_ 6
Slide 7: Entel is one of the largest publicly listed companies in Chile
Entel is one of the largest publicly listed companies in Chile_ ENTEL SHAREHOLDER STRUCTURE / As of March 2015 All Others, Listed on Santiago Stock Exchange, shares form part of IPSA Index. 36.4% Market Capitalization (2): US$ 2,598 MM. Average Daily Volume (3): US$ 3.6 MM. Altel Inversiones Ltda.(1
Slide 8: Entel Group: Over 11 million clients with integrated services
Entel Group_Over 11 million clients with integrated services Total 2014 Revenue (*): USD 2,662 MM Total 2014 EBITDA: USD 591 MM CHILE MOBILE: 69% CHILE WIRELINE: 20% AMP & Call Center: 2% PERU MOBILE: 9% CHILE MOBILE CHILE WIRELINE AMERICATEL PERU PERU MOBILE SERVICES SERVICES SERVICES Revenue: USD
Slide 9: Entel Snapshot
Entel “Snapshot”_ Mobile Market Data Subscribers Share Penetration Industry Revenue Data over ~12 million Subscription base Share: 29.7% 69% 11.985 11.840 DATA PLANS 11.969 13% (% over subscription base) 1.556 1.738 1.960 996 • Entel Mobile Chile: 861 842 • Revenue Share Serv: 45% 2.840 2.962 2.962
Slide 10: Entel Snapshot
Entel “Snapshot”_ CAPEX 2014 Spectrum Infrastructure Chile: 150MHz Chile: 5,597 POPs US$ 893 MM Peru: 156.5MHz Peru: 1,713 POPs CAPEX/Revenue Chile(1) 2012 2014 2012 2014 Total: 30.8% +20% 4,986 5,597 4,124 4,676 +113% Peru 10.0 pp 2012 2014 80 MHz 150 MHz 1,645 1,713 805(3) 4G obligations 1.7 pp Ch
Slide 11: Entel is committed to Social Responsibility
Entel is committed to Social Responsibility_ Fourth publication of Social Responsibility is biannual Sustainability an essential part Report prepared under of Entel’s corporate the Global Reporting management. Initiative (GRI). …In order to ensure …Voluntarily long term sustainability, manifesting t
Slide 12: Entel has a solid and growing position in the telecommunications market
Entel has a solid and growing position in the telecommunications market_ 2014 REVENUE DISTRIBUTION BY SERVICES Leading provider of a wide range of integrated solutions for telecommunications and IT outsourced services. 1% 2% 2% 3% Leadership position in the main markets where the Company 4% particip
Slide 13: Entel is one of the leading brands in the Chilean telecommunications industry
Entel is one of the leading brands in the Chilean telecommunications industry_ TOP OF MIND For 12 consecutive years, has been ranked first place in mobile services customer satisfaction index 46% 29% 23% Strong partnerships positions Entel to be in the leading commercial 2% and technological trends
Slide 14: Entel's services are provided through its extensive network and infrastructure
Entel’s services are provided through its extensive network and infrastructure_ Arica Iquique mobile_ Antofagasta network Copiapó fiber optic 20 MHz in 900 MHz band. 60 MHz in 1,900 MHz band. 40 MHz in 2,600 MHz band. La Serena transport 30 MHz in 700 MHz band. Vaparaíso Rancagua Santiago network 5,
Slide 15: Fixed access network with presence across the country
...with presence across the country_ Arica Iquique fixed Antofagasta access Copiapó network La Serena IP / MPLS ACCESS NETWORK Vaparaíso Santiago XDSL ACCESS NETWORK Rancagua Talca THE LARGEST DATA CENTER GPON ACCESS NETWORK Concepoción INFRASTRUCTURE PROVIDER NGN ACCESS Temuco • More than 7,500 m2
Slide 16: Our value proposition
Our value proposition A clear and converging offer The best communication service in the market An integrated and unique multichannel experience Entel Group_
Slide 17: Business focus
Business focus_ Integrated Solutions Growth in Growth Mobile Data, Home Wireless Fiber-Optic for SMEs IT Services to Transform Offerings Solutions Perú Corporate & SME Entel Group_ 17
Slide 18: Business segments
Business_ segments Our organization and business approach Entel Group_ 18
Slide 19: Mobile Services and Consumer Chile Segment
Mobile Services and Consumer Chile Segment_ Top position among high value clients MOBILE SERVICES CONSUMER SEGMENT 60 MHz in the 1,900 MHz band, 40 MHz in the 2,600 band, 20 MHz in the 900 band and 30 MHz Leader in high value segments, with an extensive in 700 band, all with nationwide coverage. off
Slide 20: Corporate & SME Chile
Corporate & SME Chile, with a solid position in mobile, data and IT outsourcing services _ CORPORATE & SME SEGMENT Ciudad de los Valles data center is Integrated offerings including IT / telco; fixed & mobile connected to a network of eight data convergence; bundling of solutions over IP networks. c
Slide 21: Perú
Perú_ Entel Perú_ Americatel_ Entel Group_ 21
Slide 22: Entel Perú: 2014 had constant challenges
Entel Perú_ 2014 had constant challenges STRATEGIC FOCUS Building up the “Entel Perú” brand after the successful launch in October 2014, leverage by top quality user experience supported by world class infrastructure and attractive marketing plan. Entel Perú continued strengthening its technical cap
Slide 23: Summary of the Entel Perú challenges
Summary of the Entel Perú_ challenges • Consolidate a unique experience and increase competitive gap (usage experience, segmentation, multichannel). • Continue to successfully build the Entel brand projecting “closeness” and building long term relationships (expanding to lower and mid-segments in po
Slide 24: Americatel Perú: Focus in SME segment in Lima
Americatel Perú_Focus in SME segment in Lima GENERAL VISION STRATEGIC FOCUS Provide telecom services via an integrated Change in business composition, increasing offering (voice, data, Internet services) in the services on own networks in Lima (WiMax and enterprise segment within the Lima Area, over
Slide 25: Financial overview
Financial over_view Results and investment Entel Group_
Slide 26: Evolution of results reflects the expansion of the mobile business in Peru
Evolution of results reflects the expansion of the mobile business in Peru_ CONSOLIDATED FIGURES (US$ Million) Cagr 12/14 REVENUES (*) EBITDA AND EBITDA MARGIN Var. 15/14 8% 2.624 2.662 2.300 -17% 856 746 2% 591 -12% 676 37% 185 692 28% 162 22% 27% 23% 2012 2013 2014 3M14 3M15 2012 2013 2014 3M14 3M
Slide 27: Consolidated Figures Entel (w/o Mobile Peru): Solid performance
Consolidated Figures Entel (w/o Mobile Peru)_ Solid performance CONSOLIDTATED FIGURES (US$ Million) Var. 1Q15/1Q14 REVENUES EBITDA AND EBITDA MARGIN OPERATING INCOME -1% 9% 618 614 219 7% 200 117 126 36% 32% 1Q14 1Q15 1Q14 1Q15 1Q14 1Q15 Entel Group_ 27
Slide 28: Chile Mobile service impacted by reduction in access charges
Chile Mobile service impacted by reduction in access charges_ Cagr 12/ 14 MOBILE REVENUE (US$ Million) ARPU* (US$) Var. 15/14 0% -2% 2.030 1% 1.824 1.836 14.7 14.2 13.5 13.7 13.9 -1% 467 462 2012 2013 2014 3M14 3M15 2012 2013 2014 3M14 3M15 *Average Revenue per user DATA SERVICES PENETRATION** / (Ov
Slide 29: Historical Capex
Investment plan driven primarily by expansion of mobile services in Chile & Peru and Data/IT_ CAPEX STRATEGY CAPEX BREAKDOWN AS OF DECEMBER 2014 Focused on maintaining leading technology and service quality in mobile services, to absorb market growth and evolution of mobile data. TOTAL = US$ 893 Oth
Slide 30: Cash flow
Cash flow reflects the expansion in the mobile business in Peru_ Cash_ 231 flow 45 -11 18 (US$ Million) -300 Cash Flow is defined as: + EBITDA 2012 2013 2014 3M14 3M15 - Capex - Net financial expenses Entel Group_ 30
Slide 31: Liquidity and debt ratios
Liquidity and debt ratios reflects the company’s healthy financial position and expansion in Peru_ 2013 2014 Mar-15 Liquidity Ratio (Current assets / Current liabilities) 1.1 1.5 1.6 EBITDA/Net Financial expenses (LTM)* 31.34 9.19 9.08 Net Debt/ EBITDA (LTM) 1.71 2.58 3.00 Total liabilities /(Equity
Slide 32: Debt maturity profile as of March 2015
Debt maturity profile as of March 2015_ Figures in US$ Million 2013 US Bond 400 400 2014 US Bond 2014 CL Bond 333 333 333 Bank Loan Others Jun-13 275 Dec2014 150 150 June2014 1 3 3 2 Total Gross Debt = US$ 2,384 million as of March, 2015. July 2014, Entel placed an international and local bonds amou
Slide 33: Recent events
Recent events_ Annual Shareholders’ meeting was held on April 28, 2015: A total dividend of Ch$ 114 per share was approved related to 2014 profits. Ch$ 34 per share will be paid on May 26, 2015 and Ch$ 80 was paid in December, 2013 as an interim dividend. Appointment of the board took place; 2013 Se
Slide 34: Thank you
thank you ;) cdelacerda@entel.cl Costanera Sur 2760 • Las Condes Santiago • Chile Visit our website www.entel.cl Entel Group_