Empresa Nacional De Telecomunicaciones S.a. · BCS:ENTEL
Empresa Nacional De Telecomunicaciones — Entel — HSBC Latin American Investment Summit 2015
32 slides from Empresa Nacional De Telecomunicaciones's conference presentation, April 2015
Slide 1: HSBC Latin American Investment Summit 2015
HSBC Latin American Investment Summit 2015 April 21st -23th/ 2015 |
Slide 2: Table of Contents
TABLE OF CON. TENTS Entel and the Chilean telecom market Company overview Entel’s plans in Peru Financial overview Notes Financial figures reported under IFRS standards. Value in US$, exchange rate as of December 2014: $606.75 e)
Slide 3: Entel and the Chilean telecom market
Entel and the Chilean telecom market _
Slide 4: Chile and telecommunications sector
* Chile and telecommunications sector_ TELECOMMUNICATIONS GDP / TOTAL GDP 0.50% 0.00% + 19971999 2001.» 2008S 2005S 2007, 2009S 2011 Sourve: Chile Central Bank. MOBILE MARKET SHARE AS OF DECEMBER 2014* Company A 39.1% “* Others: Virgin, VTR Mobite, Nextel. Average Market Share of Active Clients. > —
Slide 5: Telecom Market growth opportunities
* Telecom Market_ growth opportunities SMARTPHONES PENETRATION NEW TARIFICATION (% total) 2012 2013 «2014-2015. 2016 »= 2017'S 2018 Multi devices with charge over exceeded traffic %* Source: ENTEL 4Q14, OVUM, Informa. Entel Group_
Slide 6: Company overview
Company over_view
Slide 7: Entel is one of the largest publicly listed companies in Chile
* Entel is one of the largest publicly listed companies in Chile_ ENTEL SHAREHOLDER STRUCTURE / As of December 2014 All Others, Listed on Santiago Stock Exchange, shares form part of IPSA Index. 36.1% Market Capitalization (2): US$ 2,443 MM. Average Daily Volume (3): US$ 3.7 MM. Alte! Inversiones Lt
Slide 8: Entel Group
Entel Group with @) entel Total 2014 Revenue (*): USD 2,749 MM Total 2014 EBITDA: USD 610 MM CHILE MOBILE: 69% AMP & Call Center: 2% CHILE WIRELINE PERU MOBILE SERVICES SERVICES Revenue: USD 507 MM Revenue: : USD 250 MM Local Telephony Internet Voice Data / IT Mobile Internet Long Distance MBB Netwo
Slide 9: Entel Chile mobile subscribers and market share
Mobile Subscribers 11.8 million 2013 2014 Gren Hes Biss Ber G Continued growth in high value customers. Source: Internal Data. *: Figures as of De Entel Chile_ Market Share Industry Revenue Share 29.7% q Entel Mobile Chile: Revenue Share Serv: 45% Market Share: ~38% TOM: 46% Brand Pref.: 46% Leader
Slide 10: Entel Chile capex, spectrum and infrastructure
Entel CAPEX 20 | Spectrum _| Infrastructure Chile: 150MHz Chile: 5,597 POPs US$ 893 MM Peru: 156.5MHz Peru: 1,713 POPs CAPEX/Revenue Chile 2012 2014 «=2012-—S«- 2014 Total: 30.8% A 2012 2014 30512) = Chile Peru 4,676 80 MHz gp 150 MHz j Pra 4G obligations (non-commercial) Peru) inbuilding coverage d
Slide 11: Entel is committed to Social Responsibility
Entel is committed to Social Responsibility Fourth publication of biannual Sustainability Report prepared under the Global Reporting Initiative (GRI). .. Voluntarily manifesting the ability to listen, understand and meet expectations and interest of the Company's stakeholders... Through the “Barrio
Slide 12: Entel has a solid and growing position in the telecommunications market
Entel has a solid and growing position in the telecommunications market_ 2014 REVENUE DISTRIBUTION BY SERVICES %* Leading provider of a wide range of integrated solutions for telecommunications and IT outsourced services. ay3m 1 p2% * Leadership position in the main markets where the Company partici
Slide 13: Entel is one of the leading brands in the Chilean telecommunications industry
Entel is one of the leading brands in the Chilean telecommunications industry_ For 12 consecutive years, has been ranked first place in mobile services customer satisfaction index We rocanded CAPITAL Strong partnerships positions Entel to be in the leading commercial and technological trends while m
Slide 14: Entel's services are provided through its extensive network and infrastructure
Entel’s services are provided through its extensive network and infrastructure_ tautue — | mobile_ satis network fiber optic saeataee S transport tote network 30 MHz in 700 MHz band. Santiago Rancagua 5,597 POP Talea % FIBER OPTIC TRANSPORT : NETWORK Concepts 3,950 Km. 2G RBS: 5,251+ Temuco 3G RBS:
Slide 15: With presence across the country
* ... with presence across the country_ ® Arica - “mT fixed access network IP / MPLS ACCESS NETWORK la Serena — i Vaparalso. Santiago XDSL ACCESS NETWORK Rancagua >, mary * THE LARGEST DATA CENTER SVEN ACCESS NETWORE INFRASTRUCTURE PROVIDER NGN ACCESS * More than 7,500 m2? in 8 interconnected data N
Slide 16: Our proposition
| Our proposition Aclear and converging offer |The best communication service inthe market best communication service in the market An Bas and unique multichannel experience | VS OOO ee ea
Slide 17: Business segments and the pillars that empower it
sus_ and the pillars that empower it
Slide 18: Business segments
Slide 19: Mobile Services and Consumer Chile Segment
Mobile Services and Consumer Chile Segment_ Top position among high value clients MOBILE SERVICES CONSUMER SEGMENT * 60 MHz in the 1,900 MHz band, 40 MHz in the a ; , 2,600 band, 20 MHz in the 900 band and 30 MHz Leader in high value segments, with an extensive in 700 band, all with nationwide cover
Slide 20: Corporate & SME Chile, with a solid position in mobile, data and IT outsourcing
Corporate & SME Chile, with a solid position in mobile, data and IT outsourcing services _ @ ‘ ‘ CORPORATE & SME SEGMENT Ciudad de los Valles data center is %* Integrated offerings including IT / telco; fixed & mobile connected toa network of eight data convergence; bundling of solutions over IP net
Slide 21: Peru: Entel Peru, Americatel
rPeru_ “We Entel Peru. Americatel_
Slide 22: Entel Peru 2014 had constant challenges
* Entel Peru_ 2014 had constant challenges STRATEGIC FOCUS € In the first year of Entel Peru, the Company reformulated the business strategy in order to become a global mobile entel peran provider. * Entel Pert continued strengthening its technical capabilities by expanding and renovating the entire
Slide 23: Summary of the Entel Peru challenges
>K Entel Group_ Summary of the Entel Peru_ challenges Consolidate a unique experience and increase competitive gap (usage experience, segmentation, multichannel). Continue to successfully build the Entel brand projecting “closeness” and building long term relationships (expanding to lower and mid-se
Slide 24: Americatel Peru: Focus in SWE segment in Lima
* Americatel Peru_Focus in SWE segment in Lima GENERAL VISION %* Provide telecom services via an integrated offering (voice, data, Internet services) in the enterprise segment within the Lima Area, over IP WiMax network. %* Recently incorporating IT services. %* Services offered have moved to Americ
Slide 25: Financial overview: Results and investments
nae over Vi Results and investme
Slide 26: Evolution of results reflect the beginning of the mobile business in Peru
* Evolution of results reflect the beginning of the mobile business in Peru_ CONSOLIDATED FIGURES (US$ Million) REVENUES (*) EBITDA AND EBITDA MARGIN cant ee e RESULTS FROM OPERATING ACTIVITIES PROFIT In January 2014, mobile interconnection rates were reduced approximately 75%. (*) Revenues includes
Slide 27: Consolidated Figures Entel (w/o Mobile Peru)
Consolidated Figures Entel (w/o Mobile Peru)_ CONSOLIDTATED FIGURES (US$ Million) © var. 14/13 Consolidated Figures Proforma Entel (w/o Mobile Peru)(*) 2013 2014 2013 2014 2013 2014 (*) application of handset treatment in both periods as cost, and excludes net impact related to postpaid handsets bas
Slide 28: Chile Mobile service impacted by reduction in access charges
* Chile Mobile service impacted by reduction in access charges _ MOBILE REVENUE (US$ Million) ARPU* (US$) _ tO Cagr 1214 C svar. 14/13 “Average Revenue per user DATA SERVICES PENETRATION™ / (Over Postpaid Base) (%) 66% 2011 2014 “Includes Mobile Intemet, multimedia plans and Blackberry Source: as re
Slide 29: Investment plan driven primarily by expansion of mobile services and Data/IT
Investment plan driven primarily by expansion of mobile services and Data/IT_ CAPEX STRATEGY CAPEX BREAKDOWN AS OF DECEMBER 2014 Focused on maintaining leading technology and service quality in mobile services, to absorb market growth and evolution of mobile - data. 7 TOTAL = US$ 893 MILLION Substan
Slide 30: Cash flow reflects the expansion in the mobile business in Peru
* Cash flow reflects the expansion in the mobile business in Peru_ Cash __ flow (US$ Million) Cash Flow is defined as: + EBITDA - CAPEX - Net financial expenses Entel Group_
Slide 31: Liquidity and debt ratios reflect the company's healthy financial position
Liquidity and debt ratios reflects the company’s healthy financial position and expansion in Peru_ 2012 2013 2014 Liquidity Ratio (Current assets / Current. liabilities) 1.0 1.1 1.5 EBITDA/Finance costs (LTM) 39.2 22.4 6.7 Net Debt/ EBITDA (LTM) 0.69 1.71 2.58 Total liabilities /(Equity+ non control
Slide 32: Thank you
e) thank you ;)