Telekom Austria Ag · VIE:TKA
Telekom Austria — Corporate Update (October 2013)
11 slides from Telekom Austria's corporate update, Oct 21, 2013
Slide 1: Results of the Austrian Spectrum Auction
Results of the Austrian Spectrum Auction Vienna, 21 October 2013 1
Slide 2: Cautionary Statement
Cautionary Statement “This document 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 from those anticipated ti i t d iin th t
Slide 3: Telekom Austria Group Acquires 50% of Spectrum for EUR 1,030 Million
Telekom Austria Group Acquires 50% of Spectrum for EUR 1,030 Million > 2 x 30 MHz of the new 800 MHz spectrum as well as 2 x 35 MHz and 2 x 75 MHz of the existing 900 MHz and 1800 MHz spectrum was auctioned via a combinatorial clock auction > No new entrant was present at the auction thus all reserv
Slide 4: A Combinatorial Clock Auction Format Was Chosen for the Austrian Multiband Auction
A Combinatorial Clock Auction Format Was Chosen for the Austrian Multiband Auction > All new 800 MHz spectrum as well as existing 900 MHz and 1800 MHz spectrum was auctioned > No new entrant was present at the auction, thus all reserved spectrum was available to the existing operators > Licenses wil
Slide 5: The Combinatorial Clock Auction Format is Highly Complex and Creates Partly Undesired Incentives
The Combinatorial Clock Auction Format is Highly Complex and Creates Partly Undesired Incentives S l t d Characteristics Selected Ch t i ti off th the C Combinatorial bi t i l ClClock kAAuction ti (CCA) > A bidder does not pay what he bids > Instead, Instead a bidders bidders' price is determined by
Slide 6: Austria - Internationally Unique Intransparency Paired with High Reserve Prices and Increments
Austria - Internationally Unique Intransparency Paired with High Reserve Prices and Increments > The aggregated demand of all bidders between clock rounds was not Internationally communicated – this is a unique rule change to the CCA system unique q > Only O l once the th total t t l exposure reache
Slide 7: EUR 2 Billion Total Exposure After Clock Phase – TAG Defensive With Only 2 x 50 MHz
EUR 2 Billion Total Exposure After Clock Phase – TAG Defensive With Only 2 x 50 MHz Exposure Development Clock Phase > In an attempt to reduce price in EUR million aggressiveness Telekom Austria Group Category Reserve price Final price Increase targeted a 2 x 50 MHz – 2 x 60 MHz spectrum range durin
Slide 8: Telekom Austria Group – 50% of Total Spectrum and 54% of Low Frequency Spectrum
Telekom Austria Group – 50% of Total Spectrum and 54% of Low Frequency Spectrum Auction Result Package* 4-3-7 2-3-4 0-1-4 MHz 2 x 70 2 x 45 2 x 25 Spectrum Total spectrum 50% 32% 18% Low frequency 54% 38% 8% High frequency 46% 27% 27% Final price [m€] 1,030 654 330 Price Price/MHz [m€] 14 7 14.7 14
Slide 9: Significant Increase of Spectrum for Telekom Austria Group Compared to Before the Auction
Significant Increase of Spectrum for Telekom Austria Group Compared to Before the Auction Before After Before After Before After Band abs. in % abs. in % abs. in % 800 MHz - 2 x 20 67% - 2 x 10 33% - - 0% 2 x 20.2 2 x 12.8 2 x 0.8 900 MHz 2 x 15 43% 2 x 15 43% 2x5 14% (until 2015/2017) (until 2015)
Slide 10: Network Strategy and Competitive Position Significantly Strengthened
Network Strategy and Competitive Position Significantly Strengthened > Premium provider position via the fastest network with the highest capacity secured for 20 years > 67% share of the particularly valuable 800 MHz low frequency spectrum (immediately available) > Viability of a mass market mobile
Slide 11: Financing via Cash and Debt – Deleveraging via Operational Cash Flows to Support Target Rating
Financing via Cash and Debt – Deleveraging via Operational Cash Flows to Support Target Rating > Total cost for acquired spectrum: EUR 1,030 mn > Financing: cash* and additional debt Approx. 3.0x net debt/EBITDA comparable expected per year-end 2013 Rating target BBB (stable) Via operational remains
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