Empresa Nacional De Telecomunicaciones S.a. · BCS:ENTEL
Empresa Nacional De Telecomunicaciones — Non-Deal Roadshow (September 2014)
30 slides from Empresa Nacional De Telecomunicaciones's roadshow presentation, September 2014
Slide 1: Non Deal Roadshow
Non Deal Roadshow Host by BofA Merrill Lynch September 10-12 - 2014, New York 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 June 2014: $552.72 Entel Group_
Slide 3: Entel and the Chilean telecom market
Entel and the Chilean telecom market_ Entel Group_
Slide 4: Chile and telecommunications sector in good shape
Chile and telecommunications sector in good shape_ TELECOMMUNICATIONS GDP / TOTAL GDP 2,50% 2,34% 2,24% CHILEAN TELECOM MARKET YEAR 2013 2,11% 2,00% Telco Market Size (Revenues): 1,68% 1,73% US$ 9.0 bn (+8% vs 2012) 1,42% 1,50% 1,15% Local Telephony 0,99% 1,00% & IP Voice, 9% (-2% vs 2012) 0,50% FBB
Slide 5: Telecom Market: growth opportunities
Telecom Market_ growth opportunities SMARTPHONES PENETRATION NEW TARIFICATION (% total) Entel Postpaid 67 Subscribers 72% Sales 84% 52 33 USA Tablet Western Europe Eastern Europe + 2011 2012 2013 2014 2015 2016 Multi devices with charge over Entel Prepaid Market exceeded traffic Subscribers 43% Ente
Slide 6: Company overview
Company Company over_view over_view Entel Group Entel Group_ 6
Slide 7: Entel Group: Over 11 million clients with integrated services
Entel Group_Over 11 million clients with integrated services Total 2013 Revenue (*): USD 2,974 MM Total 2013 EBITDA: USD 845 MM Mobile Subscribers 11,620 th PERU MOBILE SERVICES Chile Prepaid Voice Revenue: USD 83 MM CHILE MOBILE SERVICES 6,357 th EBITDA: USD -20 MM Revenue: USD 2,301 MM WIRELINE SE
Slide 8: 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 August 2014 Listed on Santiago Stock Exchange, shares form part of IPSA Index. All Others, Market Capitalization (2): US$ 2,771 MM. 36.1% Average Daily Volume (3): US$ 4.5 MM. Altel Inversiones Ltda.(
Slide 9: 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 10: Entel has a solid and growing position in the telecommunications market
Entel has a solid and growing position in the telecommunications market_ 2013 REVENUE DISTRIBUTION BY SERVICES Leading provider of a wide range of integrated solutions for 1% 2% telecommunications and IT outsourced services. 2% 3% 3% Leadership position in the main markets where the Company particip
Slide 11: 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 45% satisfaction index 30% 23% Strong partnerships positions Entel to be in the leading commercial 2% and technological trends
Slide 12: 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 Vaparaíso Rancagua Santiago network 5,323 POP Talca FIBER OPTI
Slide 13: 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 7,250 m2
Slide 14: Business segments
Business_ segments Our organization and business approach Entel Group_ 14
Slide 15: Mobile Services and Consumer Chile Segment: Top position among high value clients
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 and 20MHz in the 900 band, all with Leader in high value segments, with an extensive nationwide coverage. offering for voice serv
Slide 16: Corporate & SME Chile, with a solid position in mobile, data and IT outsourcing
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 17: Perú
Perú_ Americatel_ Mobile Peru_ Entel Group_ 17
Slide 18: 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 19: Mobile Perú
Mobile Perú_ On August 19th, 2013, Entel acquired 100% of Nextel Perú’s shares for approximately US$410 million, including U$26.7 million in cash and cash equivalents. This transaction allows Entel to: • Capitalize on an interesting opportunity in Peru. • Build up mobile operations over an existing
Slide 20: Why Nextel Perú?
Why Nextel Perú?_ POPULATION (Million) MOBILE PENETRATION (%) 151 -37% 195 149 140 +72% 103 95 41 46 30 17 Arg Bra Chile Col Peru Argentina Brazil Colombia Chile Peru Source: BCG, Diario el Comercio Source: BofA Merrill Lynch, Global Wireless matrix 2Q14 Telecommunications market in expansion with h
Slide 21: Why Nextel Perú? Mobile Market Share
Why Nextel Perú?_ Technological and business models advancements in the Telecom industry have opened opportunities for market participants. Evolution from voice to data increases business potential. (Data usage traffic to increase 21x in 10 years) SPACE TO GROW AS 3rd OPERATOR SMARTPHONE PENETRATION
Slide 22: Financial overview
Financial over_view Results and investment Entel Group_
Slide 23: Evolution of results reflect the change in accounting treatment and beginning of Peru mobile
Evolution of results reflect the change in accounting treatment and the beginning of the mobile business in Peru_ CONSOLIDATED FIGURES (US$ Million) Cagr 11/13 REVENUES (*) EBITDA AND EBITDA MARGIN Var. 14/13 15% 2,974 2,607 -5% 2,245 7% 932 971 845 -10% 1,400 1,503 439 395 42% 37% 28% 31% 26% 2011
Slide 24: Consolidated Figures Entel (w/o Mobile Peru)
Consolidated Figures Entel (w/o Mobile Peru)_ Impacted by 75% reduction in mobile termination rates CONSOLIDTATED FIGURES (US$ Million) Var. 14/13 REVENUES EBITDA AND EBITDA MARGIN OPERATING INCOME -2% 1,400 1,372 32% 3% 258 439 451 196 31% 33% 6M13 6M14 6M13 6M14 6M13 6M14 Consolidated Figures Prof
Slide 25: Chile Mobile service impacted by reduction in access charges
Chile Mobile service impacted by reduction in access charges_ Cagr 11/ 13 MOBILE REVENUE (US$ Million) ARPU* (US$) Var. 14/13 15% 0,5 -6% 2.301 2.067 16,5 16,1 16,7 16,4 1.749 15,4 -7% 1.118 1.042 2011 2012 2013 6M13 6M14 2011 2012 2013 6M13 6M14 *Average Revenue per user DATA SERVICES PENETRATION**
Slide 26: Historical Capex
Investment plan driven primarily by expansion of mobile services and Data/IT_ CAPEX STRATEGY 2013 CAPEX BREAKDOWN Focused on maintaining leading technology and service quality in mobile services, to absorb market growth and evolution of mobile data. Others Peru* 22% 18% Substantial portion of invest
Slide 27: Cash flow
Cash flow reflects the expansion in the mobile business in Peru_ Cash_ Cagr 11/13 Var. 14/13 flow -57% (US$ Million) 271 262 Cash Flow is defined as: + EBITDA - Capex - Net financial expenses 161 51 -37 2011 2012 2013 6M13 6M14 Entel Group_ 27
Slide 28: Liquidity and debt ratios reflect the company's healthy financial position
Liquidity and debt ratios reflects the company’s healthy financial position_ 2011 2012 2013 Jun-14 Liquidity Ratio (Current assets / Current liabilities) 0.9 1.0 1.1 1.0 EBITDA/Finance costs (LTM) 49.9 39.2 22.4 11.8 Net Debt/ EBITDA (LTM) 0.7 0.7 1.7 2.0 Total liabilities /(Equity+ non controlling
Slide 29: Debt maturity profile as of June 2014
Debt maturity profile as of June 2014_ FIGURES in (US$ Million) 333 333 333 246 Jun-13 Bank Credit Lines Dec2014 Leasing & Others 153 153 Local Bank 131 2013 Bond Club Deal II June2014 4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total Gross Debt = US$ 1,686 million as of June, 2014. Dur
Slide 30: Thank you
thank you ;) cdelacerda@entel.cl Costanera Sur 2760 • Las Condes Santiago • Chile Visit our website www.entel.cl Entel Group_
Empresa Nacional de Telecomunicaciones S.A. (Entel) — Non-Deal Roadshow (September 2014) on 6ix