C.a. Nacional Telefonos De Venezuela Class D · BVCV:TDV.D
C.a. Nacional Telefonos De Venezuela Class D — Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) — Q4 2005 Earnings Presentation
20 slides from C.a. Nacional Telefonos De Venezuela Class D's earnings presentation, Feb 24, 2006
Slide 1: Fourth Quarter 2005 and Full Year Results
Fourth Quarter 2005 and Full Year Results Conference Call 4Q05 Earnings Release February 24, 2006 Compañía Anónima Nacional Teléfonos de Venezuela (NYSE:VNT)
Slide 2: Safe Harbor Statement
“Safe Harbor” Statement This document contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Actual results could differ materially from those predicted in such forward-looking statements. Factors which may cause actual
Slide 3: Initial Notes
Initial Notes • This presentation includes certain Non-GAAP financial Non-GAAP Non-GAAP measures. We have provided a reconciliation of those measures measures measures to the most directly comparable GAAP measures in this presentation and in our Earnings Press Release • As announced on February 9, 2
Slide 4: Adoption of IFRS summary
Adoption of IFRS summary Million of Bs. Highlighted adjustment Profit and Loss and Cash Flow data summary VenGAAP Adjust. IFRS Total Operating Revenue 3,741.7 (178.9) 3,562.8 Total operating expenses excluding (3,343.9) 178.0 (3,165.9) depreciation and amortization EBITDA 397.8 (0.9) 396.9 EBITDA Ma
Slide 5: Agenda
Agenda • Performance review • Guidance summary 5 4Q05 and Full Year 2005 Results / February 24, 2006 NYSE: VNT
Slide 6: Performance summary
Performance summary Full year 2005 represented for Cantv: 4Q 2005 represented: 9 51%* share of mobile net adds bringing the subscriber base to 5.2 A positive contribution to full year million, a 67% increase over last year performance with 9 Sustained growth in Broadband with 82% increase in ADSL li
Slide 7: Revenue
Revenue Year-over-year growth Billion of Bs. ( ) % of total revenue 1,526 47.3% 197 37.3% ( 13%) 1,111 133 87.9% Broadband ( 12%) 678 ( 45%) 361 Mobile ( 32%) Fixed 651 5.6% excluding 617 Broadband ( 56%) ( 42%) 4Q04 4Q05 Mobile and Broadband significantly contributed to 37.3% revenue growth 7 4Q05
Slide 8: Fixed business - Switched access lines
Fixed business - Switched access lines Year-over-year growth Switched access lines in service Switched access lines revenue Thousands Billion of bolivars 3.5 – 4.5% 5.6% 3,222 7.4% (3) 3,098 9.3% 37 651 2,884 2,638 1 (1) 617 2003 2004 2005 2006G* Net Adds 4Q05 Thousands (2) 4 53 55 4Q04 Local LD IX
Slide 9: Fixed business - Broadband
Fixed business - Broadband Year-over-year growth Broadband Revenue Broadband Subscribers Billion of Bs. Thousands ABA 35.5-45.6% 430 Private Circuits 197 82.3% 290 47.3% 106.9% 159 84 98.2% 77 134 19,0 17,3 17,0 ABA (ADSL) 42 2003 2004 2005 2006G* (1.6%) Broadband ARPU Private Thousand of Bs. 23.9%
Slide 10: Mobile business
Mobile business Year-over-year growth Subscribers Revenue Thousands Billions of Bs. 21.2-22.6% 6.324 67.0% 5.188 87.9% 677 15.9% 3.106 361 2.681 2003 2004 2005 2006G* 4Q04 4Q05 4Q05 Cost per gross add (CPGA) 4Q05 Average revenue per user (ARPU) Thousands of Bs. 3.2% Thousands of Bs. 12.5% 164 92 95
Slide 11: EBITDA variation 4Q05/4Q04
EBITDA variation 4Q05/4Q04 Billion of Bs. EBITDA Margin Pro-forma EBITDA Margin (85) excluding pension liability Favorable / (Unfavorable) (35) 415 (194) (26) 26 (5) 23% 22% 344 248 EBITDA Revenue Labor and IX Cost of Contractors Other Supreme EBITDA 4Q04 benefits Sales Court 4Q05 decision related 2
Slide 12: Capital expenditures - 2005 and Guidance
Capital expenditures - 2005 and Guidance Year-over-year growth Million of US$ % Capital expenditures % of total Capex 2005 revenue** 2006G* Millions of USD. 8-17% Fixed (excl. 147 13% 150 Broadband) Broadband 76 25% 75 85% 500 446 Mobile 201 22% 260 241 Others 22 n.m. 15 2004 2005 2006G* 446 19% 500
Slide 13: Cash flow
Cash flow Billion of Bs. 2004 2004–– Full (518) (160) Fullyear year 330 1,069 (563) Free cash flow 29 Bs. 881 billion 968 781 Beginning cash EBITDA CAPEX Other FCF Net debt Dividend Others Ending cash increase payments 2005 2005–– (174) Full Fullyear year 742 (958) (415) 908 28 Reflects reversal of
Slide 14: Balance sheet summary
Balance sheet summary Year-over-year growth Billion of Bs. Balance sheet structure Net cash As of December 31, 2004 7,290 170 14.0% 93 Total Assets 6,397 3,621 48.7% 968 2,436 705 Total Post-retirement Liabilities 1.579 benefit 752 109.2% obligations Cash ST Debt LT Debt Net Cash Shareholder’s As of
Slide 15: 2005 Guidance – Performance review
2005 Guidance – Performance review Financial Indicators for 2005 Billions of Bs. Guidance (IFRS) Actual Adjusted* Revenue 4,946.0 – 4,959.0 5,088.4 5,088.4 Op. expenses 3,634.0 – 3,558.0 4,346.9 3,652.0 EBITDA 1,312.0 – 1,401.0 741.5 1,436.4 EBITDA margin 27% – 28% 15% 28% Net Income 467.0 – 566.0 2
Slide 16: 2006 Guidance
2006 Guidance Macroeconomic Indicators Lines and subscribers Thousands EOY Growth (%) Switched Total GDP growth 6% - 8% 3,206 - 3,238 3.5 - 4.5 access lines Broadband 400 - 430 45.0 - 49.0 Average oil price US$ 51 - US$ 57 Mobile 6,290 - 6,358 21.2 - 22.6 Communication GDP Financial Indicators 13% -
Slide 17: In closing…
In closing… 9 In 2005 Cantv achieved remarkable operating performance in all businesses, offering a solid growth platform. 9 Financial performance was impacted by a Supreme Court decision on pension matters. 9 Our assessment of this impact has improved over the last seven months. Even though impleme
Slide 18: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures Billions of Bs. For the quarters ended December 31, 2005 and 2004 Bs. Bs. US$ US$ 2005 2004 2005 2004 EBITDA Net Income 137,713 18,009 64 8 Plus / (minus): Total income tax (benefit) 16,525 12,007 8 6 Interest income and exchange gain, net (18,432) (19,9
Slide 19: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures Billions of Bs. For the years ended December 31, 2005 and 2004 Bs. Bs. US$ US$ 2005 2004 2005 2004 Cash Earnings Net income 214,408 425,644 100 198 Plus / (minus): Exchange gain, net (32,843) (3,910) (15) (2) Minority interest (479) (2,181) - (1) Depreci
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Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) — Q4 2005 Earnings Presentation on 6ix