Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — OTE Group — Q3 2022 Earnings Presentation
30 slides from Hellenic Telecommunications Organization Sa's earnings presentation, November 2022
Slide 1: OTE Group Q3 2022 Results
OTE Group Q3 2022 Results November 2022
Slide 2: Disclaimer
2 Disclaimer This presentation is provided to persons who are entitled to receive it in accordance with the laws and In addition to figures prepared in accordance with IFRS, OTE also presents alternative performance measures, regulations of appropriate jurisdictions. This presentation is provided for
Slide 3: Strategy: The 7 Pillars of our Strategic Plan
3 Strategy: The 7 Pillars of our Strategic Plan TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN DIGITALIZATION, GROWTH MINDSET SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS SIMPLIFICATION AND CULTURE AND COST • Accelerate Optical • ICT projects OPTIMIZATION Fiber Networks • Digital Transformation • L
Slide 4: Digital Transformation
4 Digital Transformation Our goal: to be the leader for Digital Transformation in Greece and a role–model in Europe with superior Customer Experience & Operational Efficiency DIGITAL @CUSTOMER DIGITAL @NETWORK DIGITAL @COMPANY Internal Interactions Digital Interplay Simplification • Enterprise Mobile A
Slide 5: 2021 Environmental Targets
5 2021 Environmental Targets CLIMATE CHANGE STATUS 2021 PERFORMANCE OTE Group contributes to updated DT Group Climate Change Targets: • Scope 1 & 2: 85% CO2 reduction (vs 2017) • Net Zero for direct and indirect energy consumption including up to 95% reduction by 2025 vs 2017 (Scope 1 & 2) • Electri
Slide 6: 2022 ESG Targets
6 2022 ESG Targets CLIMATE CHANGE OTE Group contributes to DT Climate Change Targets: • Net Zero for direct and indirect energy consumption including up to 95% reduction by 2025 • 100% Renewable electricity (2021 onwards) • 25% Emission reduction per customer for value chains emissions (2017-2030) •
Slide 7: Sustainability & ESG Indices, Rankings and Ratings
7 Sustainability & ESG Indices, Rankings and Ratings The OTE Group responds to sustainability & ESG analysts’ questions and assessments. OTE is included in several national and international sustainability/ESG indices, rankings and ratings. OTE, since 2008, fulfills all requirements and is a member
Slide 8: Financial Review
OTE Group Q3 2022 Results Financial Review
Slide 9: Highlights
9 Highlights GROUP GREECE Further Group Revenue growth Further growth in Greek operations key operational and financial metrics up +5.9% +1.6% +6.1% +1.0% REVENUES ADJ. EBITDA (AL) REVENUES ADJ. EBITDA (AL) Positive Greece and Romania FTTH +5.2% TV growth FTTH network subscribers mobile service 733k
Slide 10: Group Overview
10 Group Overview Q3 2022 OTE Group is the largest telecommunications €905m €114m provider in the Greek ROMANIA REVENUES (YOY +5.9%) ADJ. FCF (YOY -1.6%) market with presence also in Romania. OTE is among the largest listed companies in the Athens Stock Exchange. €358m €6.6b GREECE ADJ. EBITDA (AL)
Slide 11: Revenues & Adj. EBITDA (AL)
11 Revenues & Adj. EBITDA (AL) Total Revenues (€m) 854 875 905 820 845 3,259 3,368 5.9% 5.0% 4.7% 2.6% 1.8% FY 2020 FY 2021 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 yoy change % Adj. EBITDA (AL) (€m) 41.3% 39.7% 39.4% 39.6% 37.5% 38.5% 37.9% 353 358 1,296 332 325 333 1,224 12.4% 8.0% 7.2% 3.2% 1.6% FY 2020 FY
Slide 12: Capex
12 Capex Adjusted Capex (€m) &!! $!!" # 178 %!* 161 161 ( !"$# 168 %)! ( !" # 544 559 640 %(! ' !"$# %!& ' !" # %!! 93 &!"$# *! &!!" # 16.7% 16.6% 19.9 19.7 18.9% )! %!"$# 18.3% (! %!" # &! 11.3% $!"# ! ! !"# FY 2020 FY 2021 FY 2022 Guidance Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 As % of sales As % of sales
Slide 13: Cashflow
13 Cashflow Adjusted FCF (€mn) Q3’22: -1.6% yoy 1,200 1,149 309 321 328 277 292 656 228 590 149 160 116 114 (93) (544) (559) (161) (161) (168) (178) FY 2020 FY 2021 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Adjusted Capex Adj. Net operating CF Adj.FCF Reported FCF (€m) 222 Q3’22: -25.6% yoy 600 157 483 108 413 1
Slide 14: Shareholder Remuneration Policy
14 Shareholder Remuneration Policy Total Payout (Guidance) (€m) Shareholder Remuneration Policy 480 500 70%-100% FCF Distribution through a combination of dividends and share buybacks 400 350 260 €500m €250m Dividends; €0.558 Dividend/share paid on July 07, 2022 €250m in Share Buybacks - €210m had a
Slide 15: Debt and Liquidity Profile
15 Debt and Liquidity Profile Leverage (€m) (IFRS amounts) 0.6x 0.6x 0.5x 0.4x 0.6x 1,668 1,539 Adjusted Net Debt/EBITDA 1,412 1,393 1,298 616 532 Adj. Net Debt Adj. Net Debt/EBITDA 764 776 769 stood at €532m (AL) stood at 0.6x (904) (636) (777) (529) (1,007) Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Gross Debt
Slide 16: Greece
OTE Group Q3 2022 Results Greece
Slide 17: Greece – Financial Overview
17 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 3,340 2,940 3,078 30.0% 830 43.7% 40.4% 42.2% 41.5% 41.6% 25.0% 783 796 40.8% 41.1% 2,840 20.0% 743 768 1,265 1,199 342 346 2,340 15.0% 321 314 319 10.0% 6.1% 1,840 5.0% 3.5% 4.5% 4.3% 1.8% 7.2% 0.0% 5.0% 5.1% 5.1% 1,340 - 5.0%
Slide 18: Greece – Financial Overview
18 Greece – Financial Overview Retail Fixed Revenues (€m) 938 951 20. 0% Retail fixed service revenues decreased by 4.6%: 241 241 240 15. 0% 236 10. 0% 230 5.0% 1.8% 2.1% 0.0% 2.8% • Voice - switch from traditional services to data communication -5.0% 0.1% - 10.0% -4.6% • Broadband - doubling of broa
Slide 19: Greece – Fixed KPIs
19 Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,702k 4,868 4,903 4,906 4,905 4,878 45% 45% 45% 45% 45% 99 55% 55% 55% 55% 55% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 OTE Market Share Competitors Market Share Net Additions (000) 36 OTE additions -12k 19 3 6 1 (3) (3) (2) 17 (1) Q
Slide 20: Greece – Broadband KPIs
20 Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines at 2,298k Market Penetration 4,423 4,441 4,446 4,348 4,402 89% 90% 90% 91% 91% 49% 49% 49% 49% 48% 82% 83% 84% 84% 85% 51% 51% 51% 51% 52% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 OTE Penetration Marke
Slide 21: Greece – Fiber KPIs
21 Greece – Fiber KPIs Fiber Subscribers (000) 44% of fiber subs enjoy speeds of 100Mbps or more Fiber Subscribers additions 1,415 1,430 1,208 1,100 1,149 44k 49k 59k 207k 15k 34.0% 30.1% 24.1% 21.6% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 20.2% Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 yoy change % Fiber Penetration (on
Slide 22: Greece – COSMOTE TV
22 Greece – COSMOTE TV TV Subscribers (000) Q3’22: +7.3% yoy 642 644 637 600 624 • UEFA Champions League and Europa League TV rights renewed for 2021-2024 • 8/14 Greek Superleague football teams • Agreement for the broadcasting rights of the leading football 21 24 team of the Greek league, Olympiako
Slide 23: Greece – Mobile KPIs
23 Greece – Mobile KPIs Total Subscribers (000) Q3'22: Post Paid +4.8% yoy 7,411 7,322 7,181 7,040 7,098 4,424 4,487 4,250 4,280 4,311 2,790 2,818 2,899 2,924 2,869 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Postpaid Prepaid Avg.Data usage* (GB) 11.1 Q3'22: +35% yoy Another positive “COSMOTE Neo” the 8.2 7.1 qua
Slide 24: Greece – Digitalization
24 Greece – Digitalization Smartphone penetration (%) COSMOTE app users at 3.7 million by end of the quarter - the 78% 78% 77% 78% 77% major digital contact point with the customer. Mobile data bundle Remote Wi-Fi router -1pp subscription renewal, bill management, parental control payment, and order
Slide 25: Mobile Network Superiority in Greece
25 Mobile Network Superiority in Greece OOKLA: Best in Test certification, for 8th consecutive time, for its COSMOTE Fastest Mobile Network for 6th consecutive year mobile network services in Greece 130.03 50.16 50.63 AVERAGE DOWNLOAD SPEED (MBPS) AVERAGE UPLOAD SPEED (MBPS) AVERAGE LATENCY (MS) COSM
Slide 26: Romania Mobile
OTE Group Q3 2022 Results Romania Mobile
Slide 27: Romania – Financial Overview
27 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 350 9.7% 13.0% 12.6% 14.9% 17.5% 16.4% 316 7.0% 81 83 78 78 77 31 14 25 11 12 13 10 FY 2020 FY 2021 FY 2020 FY 2021 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Adjusted Capex (€m) Adj. EBITDA (AL) yoy change %
Slide 28: Romania – Financial Overview
28 Romania – Financial Overview Mobile Service Revenues (€mn) 56 56 231 222 52 51 51 FY 2020 FY 2021 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 • Mobile Service revenues were down 8.7%, due to the reduction in MTR, as well as recent offerings privileging retention initiatives, thereby shifting part of the revenu
Slide 29: Romania – Mobile KPIs
29 Romania – Mobile KPIs Q3'22: Post Paid +6.2% yoy Data Revenues (€m) Total Subscribers (000) 4,082 3,602 3,691 3,821 3,941 !% 20 19 19 18 19 2,257 !# 1,885 1,956 2,072 2,154 "% "# 1,787 1,824 % 1,717 1,735 1,749 # Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 &# Postpaid Prepaid Data
Slide 30: Thank You
THANK YOU