Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — OTE Hellenic Telecommunications Organization — Q3 2018 Earnings Presentation
29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, November 2018
Slide 1: OTE Hellenic Telecommunications Organization Q3 2018 Results
OTE Hellenic Telecommunications Organization Q3 2018 Results November 2018
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: OTE Group Overview
OTE Group Overview Revenues Adj. EBITDA Adj. Capex Adj. FCF Q3’2018 €992mn €365mn €150mn €133mn Market Cap €5.2bn Revenues Adj. EBITDA Adj. Capex Adj. FCF 9M’2018 €2,872mn €999mn €486mn €236mn Revenues Adj. EBITDA Greece: Greece: Shareholders 74% 88% DT: 45% Romania: Romania: 25% 11% Hellenic State:
Slide 4: Our Strategy
Our Strategy The 6 Pillars of our strategic plan Best Customer Revenue Lead in Technology Superiority Experience Transformation Core Business • ICT / Systems Solutions for • FTTC Vectoring / Super Digital @Customer • COSMOTE brand superiority Business customers Vectoring – rollout completion • Cloud
Slide 5: Digital Transformation
Digital Transformation Simplify, Digitalize, Accelerate for superior Customer Experience & Operational Efficiency Digital @Customer Digitalize Service Digitalize Businesses Digital Interactions Simplify Portfolio Processes & Public Sector One App primary touchpoint Simplify Product & Tariff for
Slide 6: Number 1 in TRI*M in all our markets
Number 1 in TRI*M in all our markets COSMOTE Greece succeeds in remaining #1 in Customer satisfaction (TRI*M index) Strong BRAND “One world better for all” new brand promise Innovative “UFixIt app”: innovative digital care based on devices as interactive service tools with video CUSTOMER CARE co
Slide 7: Best Mobile Network in Greece
Best Mobile Network in Greece COSMOTE Fastest Mobile Network for 2017 Download Speed Score 45.53 COSMOTE is named the 2018 Award winner for Fastest 41.31 Upload Carrier By OOKLA in recognition of providing the Fastest 12.51 speeds for the Q1-Q2 award period Download Speed (Mbps) Upload Speed (Mbps)
Slide 8: Capex
Capex Adjusted Capex (€ mn) Q3’18: -€26mn or -14.8% yoy 900 798 27% 250 223 213 700 800 27.0% 25% 700 250 627 223 200 185 250 223 176 25.0% 213 27.0% 23% 213 167 169 27.0% 600 185 185 25.0% 150 23.0% 176 25.0% 500 200 176 167 21% 150 200 23.8% 167 21.0% 23.0% 23.0% 400 150 23.8% 20.7% 21.0% 19% 150
Slide 9: Cash Flow
Cash Flow Adjusted FCF (€ mn) Q3’18: +€161mn yoy 1,086 1,050 903 273 308 283 459 264 350 174 308 175 273 148 105 95 95 133 174 148 (11) 50 175 (28) 9 Positive impact mainly from: 95 Capex slowdown 50 (11) (28) 9 Lower income tax and (185) (176) (167) (169) (150) interest expenses (223) (213) (62
Slide 10: Debt and Liquidity Profile
Debt and Liquidity Profile 0.8x 0.7x Leverage (€ mn) 0.6x 0.5x 0.8x 0.4x 0.7x 0.3x 0.2x 0.6x 0.5x 0.6x 0.6x 0.5x 0.6x Net Debt/EBITDA 0.1x 0.5x 0.4x 0.0x 0.3x 0.4x 0.4x 0.2x 0.5x 0.6x 0.6x 0.5x 0.1x 0.0x 0.4x 0.4x 2,062 2,062 2,042 2,042 1,951 2,0412,041 1,951 1,825 1,514 1,5141,515 1,515 On July 18
Slide 11: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Estimated 2018 Payout (€mn) 0.40 0.35 0.35 Total 0.30 262 Remunaration 0.25 0.20 0.16 Share Buy 91 0.15 Back 0.10 +119% 0.05 Dividends 171 0.00 FY 2016 FY 2017 Dividend per Share (€) Shareholder Remuneration Policy 100% FCF Distribution through
Slide 12: Greece
Greece OTE | Q3 2018 Results| 12
Slide 13: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€ mn) Adj. EBITDA (€ mn) 4 3 .0% 41.0% 40.9% 42.5% 4 2 .0% 40.5% 4 1 .0% 39.3% 39.2% 4 0 .0% 38.6% 3 9 .0% 400 740 723 754 800 690 693 686 711 3 8 .0% 350 321 700 3 7 .0% 303 293 3 6 .0% 300 266 273 280 279 600 250 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
Slide 14: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 300 300 250 227 233 259 257 250 200 200 150 150 -0.7% 100 +2.6% 100 50 50 0 0 Q3'17 Q3'18 Q3'17 Q3'18 Fixed Service Revenues Mobile Service Revenues Excluding the IFRS 15 impact at +3.0% Excluding the IFRS 15 imp
Slide 15: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed-Line Market Evolution (000) OTE Fixed Lines at 2,642k 4,748 4,743 4,739 4,757 4,766 4,766 4,759 44% 45% 45% 45% 45% 44% 44% Retail Customers +0.5% y-o-y 56% 55% 55% 55% 55% 56% 56% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 OTE Market Share Competitors Market Share Net Addit
Slide 16: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) Market Penetration* OTE Broadband Lines at 1,857k 120% 3,739 3,790 3,841 3,865 3,887 3,675 3,706 100% 77% 78% 79% 80% 81% 81% 82% 80% 55% 55% 54% 54% 53% 53% 52% 60% 67% 68% 69% 70% 63% 64% 65% 40% 45% 45% 46% 46% 47% 47% 48% 20% 0% Q1'17 Q2'1
Slide 17: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) 483 449 Penetration of high-speed Fiber Broadband service at 500 450 405 100.0% 400 354 26.0% of retail broadband base 350 311 80.0% 280 300 250 252 60.0% At September 30, total number of VDSL/Vectoring 61.6% 60.6% 60.5% activated cabinets amounted
Slide 18: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 600 517 525 528 526 534 80 505 504 500 60 +3.3% y-o-y Increase in Customer base 400 40 300 20 COSMOTE TV added 8k in the quarter 200 0 13 8 8 3 100 2 (1) (2) -20 Champions League & Europa League 2018-2021 0 -40 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'1
Slide 19: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€ mn) Avg. Data usage* (GB) 31% of Service Revenues 2.5 2.4 90 81 45.0% 1.9 2.0 1.8 80 70 40.0% 1.6 1.7 67 64 70 63 35.0% 58 1.3 60 55 30.0% 1.5 1.1 50 25.0% 1.0 40 20.0% +25% 22.8% 21.5% 30 20.8% 20.4% 15.0% 18.7% 17.7% 0.5 20 15.9% 10.0% 10 5.0% 0.0 0 0.0% Q1'17
Slide 20: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) COSMOTE Apps Active users (mn) 90% 2 .5 80% 2.1 64% 66% 67% 67% 70% 63% 2 .0 59% 59% 60% 1 .5 1.4 50% 40% 1 .0 30% +4pp +52% 20% 0 .5 10% 0% 0 .0 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q3'18 Smartphone penetration 56% App Active users penet
Slide 21: Romania
Romania OTE | Q3 2018 Results| 21
Slide 22: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€ mn) Adj. EBITDA (€ mn) 2 0 .0% 16.1% 16.6% 18.0% 15.3% 14.6% 15.7% 18.2% 1 8 .0% 300 266 1 6 .0% 500 1 4450 .0% 400 60 266 273 303 293 280 80.0% 60.0% 350 40.0% 1 2300 .0% 20.0% 230 236 240 238 250 200 1 0150 .0% 0.0% -20.0% -40.0% 250 227 227 100 50 8
Slide 23: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 100 100 90 85 82 90 80 80 71 70 70 60 60 60 50 50 40 -3.8% 40 -16.0% 30 30 20 20 10 10 0 0 Q3'17 Q3'18 Q3'17 Q3'18 Retail Fixed Service Revenues Mobile Service Revenues Excluding the IFRS 15 impact at -14.6% Exc
Slide 24: Romania – Fixed KPIs
Romania – Fixed KPIs Voice Lines* (000) Broadband Lines* (000) TV Subscribers (000) Q3’18: +0.5% yoy Q3’18: -2.8% yoy Q3’18: -1.4% yoy Fixed lines Broadband lines 2,500 TV Subscribers 3,000 2,500 2,128 2,500 2,118 2,101 2,098 2,094 2,097 2,112 2,000 2,000 2,000 1,457 1,471 1,473 1,470 1,464 1,463 1,
Slide 25: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 35 80.0% 30 60.0% 25 20 40% Data Revenues 20 18 18 17 18 35% 40.0% 13 28% 15 13 37.0% 41.5% 30% 24% 32.2% 34.8% 24% 24% 20.0% 25% 22% 10 18% 18% 20% 0.0% 5 9.3% -0.6% 0.2% 15% 0 -20. 0% 10% Q1'17 Q2'17 Q3'17 Q4'17 Q1'1
Slide 26: Albania
Albania OTE | Q3 2018 Results| 26
Slide 27: Albania – Financial Overview
Albania – Financial Overview Service Revenues (€ mn) 3 5 .0% Adjusted EBITDA (€ mn) 3 0 .0% 2 5 .0% 19.8% 19.2% 5.0% 20 2 0 .0% 13.9% 15.1% 17 17 17 17 12.2% 17 Adjusted EBITDA10.8% 1 5 .0% 15 15 0.0% 6 500 266 273 303 293 280 80.0% 0.6% 450 400 60.0% 5.1% 40.0% 1 0 .0% 350 -0.6% 20.0% 15 300 0.7% -
Slide 28: Albania – Mobile KPIs
Albania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 7 90.0% 50% as % of Service Revenues 6 6 80.0% 5 45% 5 5 70.0% 5 4 40% 60.0% 35% 31% 31% 32.1% 4 28% 26% 4 50.0% 3 54.7% 30% 3 40.0% 25% 20% 22% 46.0% 45.5% 42.0% 30.0% 20% 2 37.6% 35.7% 15% 20.0% 1 23.6% 10.0% 10% 5%
Slide 29: Thank you
Thank you For more information please contact OTE Group Investor Relations: Tel: +30 210 611 1574 Fax: +30 210 611 1030 E-mail: iroffice@ote.gr or visit: https://www.cosmote.gr/fixed/en/corporate/ir OTE | Q3 2018 Results| 29
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