Telekom Austria AG · VIE:TKA
Telekom Austria — Investor Day (2015)
15 slides from Telekom Austria's investor day presentation, 2015
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Slide 2: Cautionary statement
TELEKOM AUSTRIA GROUP ene —___________, 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. Actual events may differ materially
Slide 3: Telekom Austria Group - Key Facts
Telekom Austria Group - Key Facts 7 <7, * Employees as of Customers in year-end 2014 seven countries 16,240 23M Revenues as of year-end 2014 4.02BN (4.09 BN”) REVENUE BY SEGMENT! EBITDA COMPARABLE BY SEGMENTUY Bulgaria Croatia Austria Austria Belarus Additional markets (b) Bulgaria Croatia Belarus A
Slide 4: Telekom Austria Group - Revenues and EBITDA
TELEKOM AUSTRIA GROUP Telekom Austria Group - Revenues and EBITDA Y-o-y change L_] [| “1.2% (0.2%*) ~4.0% (-2.2%*) 2014 1-9M2015 Y-o-y change 3.1%") 1.7% a 0.1% (3.9%*) 2014 1-9M2015 * Clean of FX translation and o MAIN CHALLENGES ° Personnel costs driven by civil servants & protected workforce in A
Slide 5: Telekom Austria Group - Consolidated Financial Indicators
TELEKOM AUSTRIA GROUP Telekom Austria Group - / Consolidated Financial Indicators > ae > EUROS 2014 1-9 M 2015 Revenues 4.02 Bn 2.95 Bn 4.09 BN* 3,02 BN* EBITDA 1.29Bn 1.05 Bn 1.34 BN* 1.07 BN* EBITDA Margin 32.0% 35.6% Operating Free Cash Flow 0.16 Bn 0.37 Bn Capex 0.76 Bn 0.45 Bn Net Debt** 2.69 B
Slide 6: Cash-use policy: Strengthening of the financial position, fibre roll-out and growth projects
TELEKOM AUSTRIA GROUP Cash-use policy: Strengthening of the financial position, fibre roll-out and growth projects A) Fibre roll-out in Austria ° |nvestments of EUR 400 mn in 2015-2018 * Target: Bandwidths of 30 Mbps for over 70% of households BD Flexibility for M&A activities |. Market consolidatio
Slide 7: The leading regional communications player providing convergent telecommunication services
TELEKOM AUSTRIA GROUP The leading regional communications player / providing convergent telecommunication services Austria Al Belarus veicom Mobile subscriber: 5,408 (Q3 2014: 5,448) Mobile subscribers: 4,937 (Q3 2014: 4,949) Fixed access lines: 2,284 (Q3 2014: 2,276) 8 tel Croatia vie? Bulgaria 7)
Slide 8: Full 2G and 3G coverage in all markets, LTE roll-out ongoing
Full 2G and 3G coverage in all markets, LTE roll-out ongoing Population coverage (%) by technology Technology 2G 3G 4G Jointly with Ericsson, Telekom Austria Group has presented LTE Carrier Austria 100% 93% 76% Aggregation for the first time in the Bulgaria 100% 100% 35% world based on two 20 MHz fr
Slide 9: Target household coverage 2018
Target household coverage 2018
Slide 10: Telekom Austria Group Strategy
Telekom Austria Group Strategy Enhance sales execution via ° improved cross-/ upselling (convergence) ° Improve customer service Infrastructure leadership 7 <7, * FOCUS GROWTH AREAS Enterprise into cloud Market consolidation Wholesale services & * Convergence international sales New markets Expand r
Slide 11: Austria — Challenges and Initiatives
TELEKOM AUSTRIA GROUP Austria — Challenges and Initiatives Millions of Euros, y-o-y %-change * Mobile competition increasing (MVNOs) * — Continuous fixed voice decline 2,472 * ICT growth 7.0% * — Cost structure affected by protected employees, 1,862 including civil servants +2.2% * — Enhance stickin
Slide 12: Bulgaria - Challenges and Initiatives
TELEKOM AUSTRIA GROUP Bulgaria - Challenges and Initiatives Millions of Euros, y-o-y %-change ° Shrinking revenue in a flat market * Challenging business segment * Capitalise on growth opportunities in fixed and 371 convergence -7.1% * New local management board * — Focus on sales; increase cross/up
Slide 13: Belarus — Challenges and Initiatives
TELEKOM AUSTRIA GROUP Belarus — Challenges and Initiatives Millions of Euros, y-o-y %-change 355 +7.0% FY 2014 1-9M 2015 Mi Revenues** EBITDA comparable** * EBITDA comparable margin 13 Accelerated devaluation (27.8% yoy), Reduced purchasing power (10-15%) Smartphone push and focus on data monetizati
Slide 14: Croatia and Republic of Macedonia — Challenges and Initiatives
TELEKOM AUSTRIA GROUP Croatia and Republic of Macedonia — ; Challenges and Initiatives Millions of Euros, y-o-y %-change * EU roaming regulation * Tripled annual spectrum fee 378 275 ° RAN roll-out -2.8% -2.7% * Organic fixed growth & fierce mobile competition * Multiple integrations (Blizoo, One) *
Slide 15: Slovenia and Republic of Serbia — Challenges and Initiatives
TELEKOM AUSTRIA GROUP Slovenia and Republic of Serbia — ; Challenges and Initiatives Millions of Euros, y-o-y %-change * Simobil shrinking faster than market, promotions in Q4 2014 * Still limited own fixed line infrastructure in Slovenia 213 * Residential decline & business segment performance 200