Empresa Nacional De Telecomunicaciones S.a. · BCS:ENTEL
Empresa Nacional De Telecomunicaciones — Entel — 17th Santander Latam Conference 2019
33 slides from Empresa Nacional De Telecomunicaciones's conference presentation, May 13, 2019
Slide 1: 17th Santander Latam Conference – Entel Group
17th Santander Latam Conference London Entel May 13-14, 2019 Group
Slide 2: Table of Contents
Table Of Contents • Entel and the telecom markets • Company Overview • Entel Perú • Financial Overview Notes Financial figures reported under IFRS standards. Values in US$, exchange rate as of March 31, 2019: $678.53
Slide 3: Entel and the telecom market
Entel and the telecom market
Slide 4: Market highlights
Market highlights_ CHILEAN TELECOM MARKET YEAR 2018 PERUVIAN TELECOM MARKET YEAR 2017 7% 11% Local Telephony & IP Voice Local Telephony & IP voice 11% 7% 13% 7% FBB 11% FBB US$ 8.7 bn Com SME & Corp. Mobile US$ 4.6 bn 13% +1% vs 2017 Mobile Pay TV -5% vs 2017 Pay TV 50% IT Services 71% IT Services i
Slide 5: Company Overview
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Slide 6: 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 2019 Listed on Santiago Stock Exchange, shares part of IPSA Index. 25,9% Market Capitalization (2): US$ 3,066 MM. Average Daily Volume (3): US$ 2.76 MM. 54,9% 19,2% (1): Altel is a wholly-owned
Slide 7: ENTEL 2018 at glance
ENTEL 2018 at glance CHILE PERU 17,1 Postpaid customers Mobile Infraestructure (POP) Postpaid customers • 2G: 4.184 9,3 millions • 3G: 5.194 7,8 millions 2,9% year to year growth • LTE: 2.713 millions of 19,4%. year to year growth RGU Hogar RGU hogar CAPEX USD customers Data centers 193 mil 453 USD
Slide 8: Entel has a leading position in the Chilean telecommunications market
Entel has a leading position in the Chilean telecommunications market… #1 COMPANY IN THE MOBILE MARKET (As of March 2019*) Others Company D 2018 REVENUE DISTRIBUTION BY SERVICES 2% 16% Entel 32% 1% 1% 2% 0% 3% 4% Company C 23% 12% 28% Company B 52% Others: Virgin, VTR Mobile,. Average Market Share o
Slide 9: Based on a strong brand, service quality, customer service
…based on a strong brand, service quality, customer service… “Best Consumer Experience” BCX award in the telecommunications category. 8th consecutive year in Chile and 7th year in LATAM. Entel has been ranked first place in fixed services customer satisfaction index in the Procalidad award. Strong p
Slide 10: State-of-the-art network and infrastructure: mobile network and fiber optic
…state-of-the-art network and infrastructure… Arica mobile_ Iquique network Antofagasta fiber optic 20 MHz in 900 MHz band Copiapó 60 MHz in 1,900 MHz band 40 MHz in 2,600 MHz band 30 MHz in 700 MHz band transport 100 MHz in 3,500 MHz band La Serena network Vaparaíso 5,755 POP Santiago Rancagua Talc
Slide 11: With nationwide coverage: fixed access network
... with nationwide coverage _ Arica fixed Iquique access Antofagasta network Copiapó • IP / MPLS ACCESS NETWORK La Serena • XDSL ACCESS NETWORK Vaparaíso Santiago • GPON ACCESS NETWORK Rancagua Talca • THE LARGEST DATA CENTER INFRASTRUCTURE • NGN ACCESS Concepción PROVIDER • NATION WIDE capacity fo
Slide 12: Entel is committed to Sustainability
Entel is committed to Sustainability _ 27% and 13% of 22 Tons of carbón footprint recycled waste reduced in Chile and recolected per year Peru We develop social We seek to increase digital projects in order to help knowledge, equal opportunities and responsable transform connectivity for all. societ
Slide 13: Our value proposition
Our value proposition Deliver a simple and unique service experience, through top class mobile, fixed and digital IT infrastructure Allowing clients reach endless possibilities Entel Group_ 13
Slide 14: Business focus
Business focus_ Revenue Growth. Entel Perú; in Chile in Data & IT in SME and Corporate; Entel Hogar . Keep revenue share in mature markets. Develop digital businesses models. Cash generation. CAPEX/OPEX efficiencies in mature markets. Key enablers : New operating model– Digital transformation – leve
Slide 15: Business Segments
Business Segments All figures are expressed in Chilean Pesos and are reported according to International Financial Reporting Standards (IFRS) The exchange rate at March 31, 3185 was Ch$ 678,53/US$1
Slide 16: Mobile Services and Consumer Chile Segment
Mobile Services and Consumer Chile Segment_ Top position among high value clients MOBILE SERVICES CONSUMER SEGMENT • 60 MHz in the 1,900 MHz band, 40 MHz in the 2,600 • Leader in high value segments, with an extensive offering for band, 20 MHz in the 900 band and 30 MHz in 700 band mobile data and v
Slide 17: Growing position across all services in Corporate & SME in Chile
Growing position across all services in the Corporate & SME in Chile_ CORPORATE & SME SEGMENT Ciudad de los Valles data center is • Integrated offerings including IT digital / telco; fixed & mobile connected to a network of eight data convergence; bundling of solutions over IP networks. centers • In
Slide 18: Chile Mobile and Fixed services: competitive scenario remained active
Chile Mobile and Fixed services: the competitive scenario remained active_ (US$ Million) -3% Cagr 16/18 2,268 2,224 2,151 -2% -2% REVENUES 511 502 502 2016 2017 2018 3M18 3M19 3M19 (Exc. IFRS16) -5% EBITDA EBITDA% 789 756 EBITDA AND 709 +15% +7% EBITDA MARGIN 168 193 179 35% 34% 33% 33% 38% 36% 2016
Slide 19: Peru Mobile and Fixed
Peru Mobile and Fixed (includes Entel Perú, Direcnet and Americatel Perú operations) Starting in 2019, Entel Peru and Americatel Perú integrated their operations to better address the Peruvian market offering mobile and fixed services.
Slide 20: Entel Peru: Main milestones
Entel Peru: Main milestones GROWTH 2018 2017 ≈22.7% Revenue 2016 BCX:#1 Latam Best Share (7.8 million Customer clients) Experience PREPARATION 2015 4G Ookla: Network Great Place to Work: ≈19.8% Market Share 8th place in Peru 2014 1st place in cataloged as the Deploying fixed Wireless broadband Porta
Slide 21: Entel has consolidated a solid brand in Peru
Entel has consolidated a solid brand in Peru_ POSITIVE RESPONSE IN THE MARKET HIGH SATISFACTION IN THE POSTPAID MOBILE SECTOR Entel Perú commitment to service excellence was recognized in First place, by the BCX award for best customer experience in the telecommunication category. Also was awarded b
Slide 22: Mobile network in Peru
Development of a “State of the Art“ network for 2G/3G/4G Voice and Data services focus on connectivity and experience… mobile_ Iquitos network Talara Piura Cajamarca Trujillo Huaraz Puerto +3,786 POP LIMA Maldonado Ica Cusco Puno Arequipa Tacna Extensive 4G network in Peru_ POP as of March 2019 Ente
Slide 23: That has led to strong performance of key indicators
…that has led to strong performance of key indicators STRATEGIC FOCUS MARKET STRATEGIC FOCUS ON QUALITY OF SERVICE • Attractive value proposition. AND DISRUPTION • Brand awareness at high levels. • Continued strengthening its technical capabilities by expanding the network, the most modern and with
Slide 24: Entel Perú strong revenue growth with EBITDA room for improvement
Entel Perú has shown strong revenue growth …with an EBITDA with ample room for improvements_ +19% (US$ Million) Cagr 16/18 Individuals statements 712 756 537 +8% +8% REVENUES 179 193 193 2016 2017 2018 3M18 3M19 3M19 (Exc. IFRS16) 8 -7 -26 EBITDA -81 -115 -182 2016 2017 2018 3M18 3M19 3M19 (Exc. IFR
Slide 25: Summary of the Entel Perú challenges
Summary of the Entel Perú_ challenges • Consolidate Entel's position in Peru. • Continue with “Entel” Brand development: consideration / preference and top client experience. • Improve brand and market position for “Entel Perú” in regions • Continue capturing market: • Growing revenue share, balance
Slide 26: Financial Overview
Financial Overview All figures are expressed in Chilean Pesos and are reported according to International Financial Reporting Standards (IFRS) The exchange rate at March 31, 2019 was Ch$ 678.5/US$1
Slide 27: Evolution reflects Entel Perú growth
Evolution reflect Entel Perú growth_ Cagr 16/18 CONSOLIDATED FIGURES (US$ Million) EBITDA AND EBITDA MARGIN +1% REVENUES (*) EBITDA 0% 2,782 2,882 2,834 Revenues EBITDA% 626 644 629 +2% +2% +38% +19% 683 700 700 203 174 146 23 22 22 21 29 25 2016 2017 2018 3M18 3M19 3M19 2016 2017 2018 3M18 3M19 3M1
Slide 28: Historical Capex
Investment plan driven by expansion of mobile services, Data/IT and digital transformation_ CAPEX STRATEGY CAPEX BREAKDOWN AS OF DECEMBER 2017 • Historical capex investments supportive of future revenue growth. • Capex mostly driven by demand in Chile. Others 13% Entel Perú • Bulk of network and spe
Slide 29: Cash flow reflects the expansion in the mobile business in Peru
Cash flow reflects the expansion in the mobile business in Peru_ Cash_ 7 -17 -17 flow -36 -119 (US$ Million) Cash Flow is defined as: + EBITDA - Capex - Net financial expenses -303 2016 2017 2018 3M18 3M19 3M19 (Exc.IFRS16) • During July 2016 Entel Peru was awarded a block of 30 MHz in the 700 MHz b
Slide 30: Liquidity and debt ratios trends reflect the expansion in Peru
Liquidity and debt ratios trends reflects the expansion in Peru_ 2017 2018 3M19 Liquidity Ratio (Current assets / Current liabilities) 1,19 1,23 1,14 EBITDA/Net Financial expenses (LTM)* (>2.2) 6,46 6,04 6,82 Net Debt/ EBITDA (LTM)* (<4.5) 3,30 3,84 3,59 Total liabilities /(Equity+ non controlling i
Slide 31: Entel keeps a comfortable debt maturity profile
Entel keeps a comfortable debt maturity profile. Debt maturity profile as of March 2019 Figures in US$ Million 512 446 440 400 377 Jun-13 333 282 333 400 333 149 37 66 73 113 113 44 40 40 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Bond 144A 2014 Bond 144A 20
Slide 32: Recent Events
Recent Events_ • The Annual Shareholders’ Meeting was held on April 25, 2019. • Due to losses reported during 2018, there will be no dividend payment. • The dividend policy was maintained (up to 50% of net income). • The financing policy (no changes), which considers a maximum financial debt level a
Slide 33: Visit our website www.entel.cl
cdelacerda@entel.cl Costanera Sur 2760, Las Condes Santiago de Chile visit our website www.entel.cl