Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q1 2021 Earnings Presentation
29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, May 2021
Slide 1: Q1 2021 Results
OTE Hellenic Telecommunications Organization Q1 2021 Results May 2021
Slide 2: Disclaimer
Disclaimer This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to an
Slide 3: Key Developments
Key Developments The announced OTE has entered OTE continues to COSMOTE became OTE renewed for spin-off of Greek into an agreement invest in its the first mobile the 2021 to 2024 frontline to sell its 54% network operator in The voluntary exit seasons rights to operations into stake in Telekom super
Slide 4: Q1 Highlights
Q1 Highlights Further momentum in Greece +1.6% Robust performance in Greece Group Adj. EBITDA (AL) Adjusted EBITDA (AL) margin up, at 38.2% Strong top line: +1.4% Positive Mobile service revenues trajectory Record fiber additions, fueling broadband growth €163mn Adjusted FCF up €55mn compared to Q1’
Slide 5: Financial Review
Financial Review OTE | Q2 2020 RESULTS 5
Slide 6: KPIs and Group Overview
KPIs and Group Overview Revenues €788mn Romania Revenues (yoy -1.2%) Greece, 91% Romania, 9% €301mn Adj. EBITDA (AL) (yoy +1.6%) Adj. EBITDA (AL) Greece €100mn Greece, 99% Adj. Capex Romania, 1% (yoy -33.9%) €163mn Shareholders* OTE Group is the largest telecommunications Adj. FCF provider in the Gr
Slide 7: Capex
Capex Adjusted Capex (€mn) 162 180 25.0% 600 547 544 550 20.0% 160 151 550 19.0% 140 131 20.0% 500 18.0% 450 17.0% 120 19.0% 99 19.1% 100 17.2% 15.0% 100 400 16.0% 350 16.6% 16.7% 15.0% 80 300 14.0% 11.7% 12.7% 10.0% 60 250 13.0% 40 5.0% 200 12.0% 20 150 11.0% 0 0.0% 100 10.0% FY 2019 FY2020 FY 2021
Slide 8: Cashflow
Cashflow Adjusted FCF (€mn) Q4’20: Q1’21:+64.2% +51.2%yoy yoy 1,200 1,125 259 263 1,020 656 575 163 474 108 (547) (544) (550) (100) (151) FY 2019 FY2020 FY 2021 Guidance Q1'20 Q1'21 Adjusted Capex Adj. Net operating CF Adj.FCF Adjusted Capex Adj. Net operating CF Adj.FCF Reported FCF (€mn) Q1’21: +9
Slide 9: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Shareholder Remuneration Policy 0.68 100% 0.55 FCF Distribution through a combination of dividends and share buybacks 0.46 +24% 65%/35% Targeted split between dividends and share buybacks €0.68 FY 2018 FY 2019 FY 2020 The Board of Directors of O
Slide 10: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€mn) (IFRS amounts) 0.7x 0.8x 0.8x 0.8x 0.6x Adjusted Net Debt/EBITDA 2,382 2,039 1,731 1,556 1,534 930 848 1,032 1,034 925 • Adj. Net Debt stood at €925mn (522) (608) • Adj. Net Debt/EBITDA (AL) (700) (1,109) stood at 0.8x (1,534) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 G
Slide 11: Greece
Greece OTE | Q2 2020 RESULTS 11
Slide 12: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn) 2,943 2,940 41.2% 40.8% 840 69000.0% 30.0% 763 778 1,212 790 25.0% 1,199 707 717 41.2% 42.7% 41.6% 40.8% 64000.0% 692 38.6% 740 20.0% 450 690 15.0% 35.0% 400 326 59000.0% 640 10.0% 2.9% 288 300 298 350 590 1.4% 1.4% 5.0% 285 25.
Slide 13: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€mn) 20.0% 936 938 261 15.0% 234 231 237 236 233 10.0% Retail fixed service revenues were down just 0.6%: 211 5.0% 1.3% 0.0% 0.6% o Despite pressure on the TV segment resulting from COVID-19 lockdowns 0.0% 161 -0.9% -0.6% -5.0% o Broadband revenues
Slide 14: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,692k 4,806 4,836 4,829 4,852 4,863 45% 44% 44% 45% 45% 45% 45% 45% 45% 45% 45% 44% 44% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 55% 56% 56% 55% 55% 55% 55% 55% 55% 55% 55% 56% 56% 55% 55% 55% 55% 55% 55% 55% 55% 5
Slide 15: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines Market Penetration at 2,176k 120% 4,134 4,191 4,216 4,263 4,299 87% 87% 88% 88% 100% 86% 80% 51% 50% 50% 50% 49% 60% 77% 78% 79% 80% 81% 40% 49% 50% 50% 50% 51% 20% 0% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q2'20 Q3'20 Q4'20 Q
Slide 16: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) Fiber Subscribers additions (000) 80 1,005 100.0% 945 70 1,000 886 90.0% 59 60 840 787 80.0% 60 53 45 46 800 70.0% 50 60.0% 600 40 50.0% 34.5% 400 30.2% 27.5% 27.4% 27.6% 40.0% 30 30.0% 20 20.0% 200 10 10.0% 0 0.0% 0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20
Slide 17: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 557 563 563 575 578 • +3.8% yoy increase in Customer base 600 80 500 60 400 40 • UEFA Champions League and Europa League TV rights 12 renewed for 2021-2024 300 2 7 3 20 0 200 0 • OTE continues to leverage its new OTT platform to 100 -20 strengthen its
Slide 18: Greece – Mobile KPIs
Greece – Mobile KPIs Total Subscribers (000) Q1'21: Post Paid +2.0% yoy 7,343 7,208 7,112 6,959 6,889 4,672 4,504 4,390 4,245 4,164 2,672 2,705 2,723 2,714 2,725 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Postpaid Prepaid • Another positive quarter for post paid segment, up +2.0% • Focus on strategy to migrate p
Slide 19: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) 90% 80% 75% 75% 76% 76% 77% 70% 60% 50% COSMOTE app was downloaded by 3.2mn users by end of the quarter. It was further boosted during the quarter 40% +2pp 30% and became the major digital contact point with the 20% 10% 0% customer. It includes feat
Slide 20: Strategy
Strategy OTE, THE LEADING DIGITAL TELCO: THE 7 PILLARS OF OUR STRATEGIC PLAN DIGITALIZATION, GROWTH TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN SIMPLIFICATION AND MINDSET AND SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS COST OPTIMIZATION CULTURE • Optical Fiber • Digital Transformation • ICT pro
Slide 21: Digital Transformation
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 Interplay Digitalize Service Processes Simplify Portfolio • One App primary touchpoint • Order2Bill: self-service • Sim
Slide 22: Mobile Network Superiority in Greece
Mobile Network Superiority in Greece Best in Test” certification, for sixth COSMOTE Fastest Mobile Network for 8th consecutive year, for its mobile internet and consecutive time voice services in Greece OPERATOR OPERATOR 51.39 2XSPEED 25.62 in Big Cities 3XSPEED 28.49 On main roads AVERAGE DOWNLOAD
Slide 23: SRI Indices and Ratings
SRI Indices and Ratings OTE, as of December 2020, has been ranked as In 2020, OTE maintained its B- rating and OTE, since 2008, fulfills all requirements and one of the top performers in the Vigeo Eiris Best kept its status as a "Prime" company, a is a member of the FTSE4Good Index Series. Emerging
Slide 24: Environmental Targets 2021
Environmental Targets 2021 OTE Group commits to DT Climate Change Targets: • 90% Reduction for direct and indirect emissions (2017-2030) • 100% Renewable electricity (from 2021) • 25% Emission reduction per customer for value chains emissions (2017-2030) Retain: • 0% use of plastic bottles • 0% use
Slide 25: Romania
Romania OTE | Q2 2020 RESULTS 25
Slide 26: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn) 8.5% 6.7% 17.4% 3.8% 386 7.0% -5.7% 30 4.7% 350 120 25 96 25 16 91 17 100 1.6 84 18 79 77 20 12 80 1.1 8 15 60 7 5 0.6 10 3 40 2 0.1 5 20 -3 -0.4 0 0 FY 2019 FY 2020 -8 -5 -0.9 FY 2019 FY 2020 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'2
Slide 27: Romania – Financial Overview
Romania – Financial Overview Mobile Service Revenues (€mn) 254 90 231 80 70 59 58 57 60 56 55 50 40 30 20 10 FY 2019 FY 2020 0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Mobile Service revenues were down 7.4%, mainly due to: the declining trend in the prepaid segment the lower interconnection revenues due to
Slide 28: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€mn) Data Revenues as % of Service Revenues 30 25 22 23 22 21 21 39.8% 39.2% 37.3% 36.9% 37.4% 20 15 10 5 0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Total Subscribers (000) 3,861 3,758 3,695 3,643 3,550 2,317 2,185 2,092 1,995 1,887 1,544 1,573
Slide 29: Thank you
Thank you OTE | Q2 2020 RESULTS 29
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