Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — OTE Group — Q3 2023 Earnings Presentation
29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, 2023
Slide 1: OTE Group Q3 2023 Results
OTE Group Q3 2023 Results GROUP OF COMPANIES
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 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 COST OPTIMIZATION • Introduction of Agile • Accelerate FTTH • Digital Transformation • ICT projects
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 Digital Interplay Simplification Internal Interactions • One App primary tou
Slide 5: 2022 ESG Targets - Performance
5 2022 ESG Targets- Performance 2022 PERFORMANCE CLIMATE CHANGE OTE Group contributes to DT Group Climate Change Targets: • Net Zero for direct and indirect energy consumption including up to 95% reduction by 2025 • Scope 1 & 2: 86% CO2 reduction (vs 2017) • 100% Renewable electricity (2021 onwards)
Slide 6: Sustainability Strategic Priorities: Commitments 2023 onwards
6 Sustainability Strategic Priorities: Commitments 2023 onwards CLIMATE NEUTRALITY- Updated Targets OTE Group1 contributes to DT Group Climate Change Targets: • Net Zero for direct and indirect energy consumption (scope 1 & scope 2), including up to 95% reduction by 2025. • 100% Renewable electricit
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, meets the requirements and is Since 2018,
Slide 8: Financial Review
= Financial Review OTE Group Q3 2023 Results
Slide 9: Highlights
9 Highlights GROUP GREECE Further growth Q3 ’23 €881.0m €352.6m • Continuing growth in Greek REVENUES ADJ.EBITDA (AL) profitability • Lower EBITDA in Romania +0.7% +42.9% +1.4% ADJ. EBITDA (AL) MARGIN MOBILE SERVICE REVENUES (Ex. Roaming) ADJ. EBITDA (AL) MARGIN UP AT 40.0% FTTH FTTH network subscri
Slide 10: Group Overview
10 Group Overview Q3 2023 9M 2023 OTE Group is the largest €881.0m €2,538.7m telecommunications provider in the Greek ROMANIA REVENUES (YOY -2.6%) REVENUES (YOY -1.2%) market with presence also in Romania. OTE is €352.6m €1,001.4m among the largest listed companies in the Athens ADJ. EBITDA (AL) (YO
Slide 11: Revenues & Adj. EBITDA (AL)
11 Revenues & Adj. EBITDA (AL) Total Revenues (€m) 905 885 881 3,455 804 854 3,336 5.9% 1.1% 1.1% -2.0% -2.6% FY 2021 FY 2022 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 yoy change % Adj. EBITDA (AL) (€m) 40.1% 40.0% 39.6% 38.3% 39.0% 37.5% 38.8% 358 353 332 327 1,348 322 1,296 1.6% 0.0% -1.0% -1.8% -1.5% FY 2021
Slide 12: Capex
12 Capex 199 Adjusted Capex (€m) 178 183 167 638 ~620 559 80 18.5% 22.5% 16.8% 19.7% 19.5% 20.8% 9.9% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 FY 2021 FY 2022 FY 2023 Guidance As % of sales As % of sales Per Country (€m) Q3 2023 • FTTH footprint at 1.15 million households and businesses as of Sept 30, 2023 €17
Slide 13: Cashflow
13 Cashflow Adjusted FCF (€mn) Q3’23: -55.5% yoy 1,293 352 1,149 309 315 292 234 654 229 590 153 51 114 148 (80) (559) (638) (178) (199) (167) (183) FY 2021 FY 2022 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Adjusted Capex Adj. Net operating CF Adj.FCF 226 Reported FCF (€m) Q3’23: -66.4% yoy 597 138 144 ~500 483
Slide 14: Shareholder Remuneration Policy
14 Shareholder Remuneration Policy Dividend per Share (€) Shareholder Remuneration Policy 0.68 0.68 0.58 70%-100% 0.55 0.56 FCF Distribution through a combination of dividends and share buybacks 0.46 €425m €250m Dividends; €0.58878 Final Dividend/share (adjusted for own shares) was paid on July 11,
Slide 15: Debt and Liquidity Profile
15 Debt and Liquidity Profile 0.6x 0.5x 0.4x 0.3x 0.5x 1,298 1,317 Net Debt/EBITDA 1,291 1,212 1,191 506 391 774 672 Net Debt Net Debt/EBITDA 727 (524) (519) at €672m (AL) at 0.5x (590) (784) (821) Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Gross Debt Cash Net Debt Debt Maturity Profile (€m) (Nominal amounts) On J
Slide 16: Greece
OTE Group Q3 2023 Results Greece
Slide 17: Greece – Financial Overview
17 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 43,3% 42,9% 3,340 3,046 3,155 30.0% 830 814 812 41,6% 40,8% 40,9% 25.0% 41.5% 41.5% 2,840 787 20.0% 736 1,310 346 348 6.1% 1,265 332 322 2,340 15.0% 319 10.0% 1,840 5.0% 2.2% 2.4% -0.9% 1.0% 3.2% 1.6% 0.0% -2.2% 0.9% 1,340 0.7%
Slide 18: Greece – Financial Overview
18 Greece – Financial Overview Retail Fixed Revenues (€m) 951 933 Significant improvement in Retail Fixed Revenues trends Decreased by- 0.9% 230 227 229 228 228 • Positive momentum in Broadband and TV revenues -0.9% -4.6% -4.3% -3.7% • Lower legacy voice revenues -5.5% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23
Slide 19: Greece – Fixed & Broadband KPIs
19 Greece – Fixed & Broadband KPIs OTE Fixed Lines Evolution (000) OTE Broadband lines Evolution (000) 2,298 2,318 2,333 2,342 2,346 2,702 2,701 2,701 2,699 2,691 20 11 15 9 4 02 0 -3 -12 -8 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Additions Additions OTE BB Penetration on Fixed F
Slide 20: Greece – Fiber KPIs
20 Greece – Fiber KPIs Fiber Subscribers (000) 46% of subs on 100Mbps or more Fiber Penetration (on Broadband) 1,515 1,526 1,430 1,448 1,489 62% 62% 64% 65% 65% 41 25 15 18 11 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Additions FTTH Retail Subscribers (000) FTTH Homes Passed 194 21
Slide 21: Greece – COSMOTE TV
21 Greece – COSMOTE TV TV Subscribers (000) 665 Q3’23: +3.3% yoy 644 643 649 648 • UEFA Champions League & Europa League TV rights for 2021-2024 • Renewal of broadcasting rights of Key Greek football teams for 2023- 2025 • 8/14 Greek Superleague football teams • Agreement for the broadcasting rights
Slide 22: Greece – Mobile KPIs
22 Greece – Mobile KPIs Total Subscribers (000) Q3’23: Post Paid +5.5% yoy 7,411 7,370 7,345 7,373 7,366 4,487 4,420 4,348 4,322 4,279 2,924 +4.7% 2,950 +4.5% 2,997 +5.3% 3,051 +5.5% 3,086 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Postpaid Prepaid Avg.Data usage* (GB) 14.2 Q3'23: +28% yoy 11.1 Another positive
Slide 23: Greece – Digitalization
23 Greece – Digitalization Smartphone penetration (%) 79% 80% 81% 81% 78% Mobile data bundle Remote Wi-Fi router subscription renewal, bill management, parental control payment, and ordering features and management of +3pp functionality for additional short-digit premium value-added OTE services ser
Slide 24: Mobile Network Superiority in Greece
24 Mobile Network Superiority in Greece OOKLA: Umlaut Best in Test certification, for 9th consecutive time, COSMOTE Fastest Mobile Network for 7th consecutive year for its mobile internet and voice services in Greece 130.00 57.07 59.08 AVERAGE DOWNLOAD SPEED (MBPS) AVERAGE UPLOAD SPEED (MBPS) AVERAGE
Slide 25: Romania
OTE Group Q3 2023 Results
Slide 26: Romania – Financial Overview
26 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 316 12.4% 306 9.7% 16.4'% 6.9% 6.5% 77 0.0% 5.1% 73 69 69 71 38 13 31 3 5 5 0 FY 2021 FY 2022 FY 2021 FY 2022 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Adjusted Capex (€m) Adj. EBITDA (AL) Margin % 44 13 40 1
Slide 27: Romania – Financial Overview
27 Romania – Financial Overview Mobile Service Revenues (€m) 222 51 203 49 48 48 46 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 FY 2021 FY 2022 • Mobile Service revenues were down 7.0%, partially reflecting the drop mobile termination rate (MTR) cuts • Postpaid subscriber base posted further growth; +3.2%
Slide 28: Romania – Mobile KPIs
28 Romania – Mobile KPIs Q3'23: Post Paid +3.2% yoy Data Revenues (€m) Total Subscribers (000) 4,166 4,062 4,063 3,899 4,082 20 20 20 21 19 2,257 2,311 2,205 2,200 2,016 1,824 1,854 1,857 1,864 1,883 Q1'23 Q2’23 Q3’23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 &# Postpaid Prepaid Data Revenues as % o
Slide 29: Thank you.
Thank you.