Telekom Austria Ag · VIE:TKA
Telekom Austria — Investor Presentation (February 2024)
35 slides from Telekom Austria's investor presentation, February 2024
Slide 1: Investor Presentation February 2024
Investor Presentation February 2024
Slide 2: Cautionary statement
Cautionary statement This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as ›believe‹, ›intend‹, ›anticipate‹, ›plan‹, ›expect‹ and similar expressions or by ›outlook‹. Actual events may differ materially from those anticipate
Slide 3: Promoting a more sustainable way of life through digitalization
Promoting a more sustainable way of life through digitalization • Leading telco across CEE • System-critical infrastructure: fixed-line and mobile networks, data centers • Leverage the potential provided by megatrend digitalization • Strong growth performance, solid balance sheet structure • Well-ba
Slide 4: Regional coverage
Regional coverage Inhabitants GDP/capita Mobile subscribers RGUs (million; market position) (million; market position) (million) (in $) Austria 9.0 67,900 5.2 #1 2.9 #1 Bulgaria 6.5 33,800 3.8 #1 1.2 #2 Croatia 3.9 40,200 2.0 #2 0.7 #2 Belarus 9.2 22,600 4.9 #2 0.8 #2 Serbia 6.7 23,900 2.4 #3 - Slov
Slide 5: Strategy
Stra tegy 5 Investor presentation | February 2024
Slide 6: Trends that influence telcos and A1's strategy
Trends that influence telcos and A1’s strategy Broadband Competitive rollout is ESG aspects landscape is Data traffic progressing a mandatory expanding growing requirement to strongly compete in the market Sustainability Ecosystems AI and the Telcos enable a factor in are future analytical use acces
Slide 7: Key performance drivers
Key performance drivers IT services e.g., applications, data centers, analytics Security data/mobile/object security Communication e.g., private branch exchange, healthcare Unified B2B Integrated sector solutions Brand Digital e.g., smart metering, IoT Commercial One One to all approach Upselling th
Slide 8: Strategy follows the vision: Empowering digital life
Strategy follows the vision: Empowering digital life Evolve the core Explore the new Transparency & Growth & Autonomy Inspiration • From network to • Scaling-up the portfolio connectivity plus Take Learn & • Develop eco-systems and • From product driven to ownership innovate partnerships to enrich c
Slide 9: Financials
Finan cials 9 Investor presentation | February 2024
Slide 10: Recent financial performance
Recent financial performance (Unless otherwise stated, in € mn) Revenues EBITDA Free cash flow* +5% +5% -41% 5,005 5,251 4,748 603 1,838 1,924 1,706 487 354 35.9% 36.7% 36.6% 2021 2022 2023 2021 2022 2023 2021 2022 2023 EBITDA margin * 2023 incl. € 133 mn investments in spectrum (2022: € 10 mn) CAPE
Slide 11: Group revenues
Group revenues Unless otherwise stated, all amounts in € mn Q4 2023 Q4 2022 FY 2023 FY 2022 Service revenues 1,111 1,081 +2.8% 4,348 4,164 +4.4% Equipment revenues 234 235 -0.6% 811 752 +7.9% Other operating income 24 22 +12.7% 92 89 +3.6% Total revenues 1,369 1,338 +2.3% 5,251 5,005 +4.9% Service r
Slide 12: Well-balanced performance across geographic footprint
Well-balanced performance across geographic footprint Revenue split (FY 2023) Growth driver CEE EBITDA split (FY 2023) Bulgaria 14% Bulgaria 16% Croatia 10% Croatia 10% +8.7% Belarus 8% Belarus 10% International Slovenia 5% Slovenia 3% Serbia +1.7% Serbia 7% Austria 7% Austria N-Macedonia Austria N-
Slide 13: Sustainable growth and strong free cash flow development
Sustainable growth and strong free cash flow development (Unless otherwise stated, in € mn) Revenues consistently growing EBITDA increased significantly Robust free cash flow CAGR CAGR Avg. 3.4% 4.4% € 446 mn/yr 5,005 5,251 1,838 1,924 4,435 4,565 4,549 4,748 1,549 1,561 1,577 1,706 603 504 487 384
Slide 14: A1 has decreased net debt significantly
A1 has decreased net debt significantly (Unless otherwise stated, in € mn) Robust free cash flow Sustainable dividend policy Net debt reduction 0.95 0.97 EPS Avg. 0.76 € 446 mn/yr 0.73 0.91 0.58 0.58 0.68 0.52 FCF/ 2.3 603 0.48 0.58 share 2.0 504 487 0.36 0.49 0.53 0.36 1.7 384 0.32 1.3 1.3 344 354
Slide 15: The share
The share 15 Investor presentation | February 2024
Slide 16: Shareholder structure
Shareholder structure Two strong shareholders ÖBAG (Österreichische Beteiligungs AG) • ÖBAG: independent holding company of state assets. ÖBAG Mission is to preserve and grow its investments for 28.4% generations. Retail • Investment portfolio includes also: OMV, Verbund, 3.3% Post, Casinos Austria,
Slide 17: Syndicate agreement between América Móvil and ÖBAG
Syndicate agreement between América Móvil and ÖBAG On February 6, 2023, both parties agreed on a new syndicate agreement with a term of 10 years. The publicly known cornerstones of this agreement are the following: General • Headquarters to remain in Austria • Commitment to the listing at the Vienna
Slide 18: Share price
Share price AT0000720008 Tela.VI TKA AV Institution Rating Price (€) • Shares outstanding: 664,084,841 AlphaValue/Baader Europe Buy 8.55 • Listing: Vienna Stock Exchange Bank Pekao Buy 8.60 160 TKA Barclays Neutral 8.00 Citigroup Neutral 7.00 140 Erste Group Bank Neutral 8.70 120 HSBC Buy 8.00 STOXX
Slide 19: Sustainability
Sustain ability Source Sustainalytics. THE USE BY TELEKOM AUSTRIA OF ANY MSCI ESG Sustainalytics, a Morningstar RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND company, is a leading THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS independent ESG research, OR INDEX NAMES HEREIN, DO NOT CONSTITUTE
Slide 20: New ESG Strategy: raised ambition & extended scope of topics
New ESG Strategy: raised ambition & extended scope of topics CO2 emissions Energy efficiency Recycle / Refurbish Waste reduction Product reuse CO2 Net-Zero goal by 2030 80% goal 20% goal Zero-waste to landfill goal Foster reuse projects Scope 1&2: -90% Increase energy efficiency to Increase percenta
Slide 21: Outlook
Out look 21 Investor presentation | February 2024
Slide 22: Guidance 2024
Guidance 2024 Total revenues +3-4% CAPEX (excl. spectrum) Around € 800 million ▪ Revenues: 3-4 % growth expected to be mainly driven by service revenues, both in CEE and Austria: Value-securing measures, upselling in the retail business, and a strong development of the solutions business, overcompen
Slide 23: A1 ambitions 2024-2026
A1 ambitions 2024-2026 Revenues EBITDA CAPEX 3-4% increase p.a. 4-5% increase p.a. € 2.8 bn plus frequencies Based on current inflation and Based on current inflation and exchange exchange rate expectations rate expectations Dividend baseline € 0.32 per share Based on the Group's operational and fin
Slide 24: Investment Case Telekom Austria
Investment Case Telekom Austria Leading telco across CEE • Among top 2 mobile operators in 6 out of 7 core markets • 29 million customers in Europe • >80% of Group EBITDA in investment-grade rated countries Top performing incumbent telco in Europe • Strong growth rates, high profitability, robust FC
Slide 25: Appendix
App endix 25 Investor presentation | February 2024
Slide 26: Management Board
Management Board Deputy CEO CEO Alejandro Plater (*1967, Argentina) Thomas Arnoldner (*1977, Austria) • Board member since August 2015 • Board member since September 2018 o 2015-2018 as CEO, 2018-2023 as COO o 2018-2023 as CEO • Before A1, senior roles at Ericsson • Before A1, board functions at Alc
Slide 27: Conservative financial policy, investment-grade ratings
Conservative financial policy, investment-grade ratings (data excluding EuroTeleSites) Overview (Sept 30, 2023) Lines of credit (Sept 30, 2023) Creditratings Credit ratings • Total financial debt:€ 808 mn • Total committed lines: € 1,415 mn Moody's S&P Fitch Avg. term to maturity: 2.2 years • Averag
Slide 28: Overview: Restructuring charges and provision vs. FTE
Overview: Restructuring charges and provision vs. FTE Overview restructuring charges (in EUR mn) FTE addressed Overview restructuring provision* (in EUR mn) Provisioned FTEs 28 Investor presentation | February 2024
Slide 29: P&L Revenues Q4 2023
P&L Unless otherwise stated, all amounts in € mn Q4 2023 Q4 2022 FY 2023 FY 2022 Revenues 1,369 1,338 +2.3% 5,251 5,005 +4.9% FY 2023 OPEX (888) (906) –2.0% (3,327) (3,167) +5.1% Revenue increase driven by growth in service Restructuring (32) (23) +38.3% (85) (73) 16.8% revenues. EBITDA 481 432 +11.
Slide 30: Free cash flow
Free cash flow Unless otherwise stated, all amounts in € mn Q4 2023 Q4 2022 FY 2023 FY 2022 EBITDA 481 432 +11.4% 1.924 1.838 4,7% Free Cash Flow was lower vs FY Restructuring charges, cost of 2022, due to payments for spectrum 39 28 +40.0% 92 74 +24.7% labor obligations fee, higher lease payments a
Slide 31: Focus topic Q4 2023: Continued investments in fiber and 5G network expansion in Austria
Focus topic Q4 2023: Continued investments in fiber and 5G network expansion in Austria Current status Way forward Fiber roll-out on track FTTH: ▪ 73,000 km fiber network in Austria ▪ Scale up in the build-out phase, perform Fiber ▪ EUR 234 mn subsidies granted from BBA 2030 optimization in the last
Slide 32: Towers spin-off
Towers spin-off
Slide 33: A1 successfully spun-off tower business in Q3 2023
A1 successfully spun-off tower business in Q3 2023 On September 22, 2023, the former tower business of Telekom Austria AG (Towers business) was listed on the Vienna Stock Exchange under the newly established EuroTeleSites AG. Rationale: Focus on core telecoms business | Efficient budget allocation |
Slide 34: What was included in the Transaction
What was included in the Transaction Passive Infrastructure > Transferred to EuroTeleSites Active Infrastructure > Retained by A1 Site on rooftop Site on the ground Aircraft warning Lightning Protection lights system Electrical Distribution Radio Antennas System Technic RRUs or tower mounted amplifi
Slide 35: Susanne Aglas-Reindl, Head of Investor Relations
Susanne Aglas-Reindl Head of Investor Relations E investor.relations@a1.group M +43 50 664 47500
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