29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, 2023
Slide 1: OTE Group Q2 2023 Results
f } . { a ‘ « 4 a ¥ “ae - = > e 4 OTE Group : Q2 2023 Results
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 7 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 and evaluation of • Accelerate FTTH • Digital Transformation • ICT
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
pappbeetettete: iF Rit Financial Review OTE Group Q2 2023 Results
Slide 9: Highlights
9 Highlights GROUP GREECE Further growth Q2 ’23 +1.1% -1.8% • Positive momentum in Greece +0.9% +40.9% +2.4% REVENUES ADJ.EBITDA (AL) • Lower EBITDA in Romania ADJ. EBITDA (AL) MARGIN MOBILE SERVICE REVENUES ADJ. EBITDA (AL) MARGIN AT 38.3% FTTH FTTH network subscribers 1,051k homes +28k at 194k pas
Slide 10: Group Overview
10 Group Overview Q2 2023 6M 2023 OTE Group is the largest €854.1m €1,657.7m telecommunications provider in the Greek ROMANIA REVENUES (YOY +1.1%) REVENUES (YOY -0.4%) market with presence also in Romania. OTE is €326.8m €648.8m among the largest listed companies in the Athens ADJ. EBITDA (AL) (YOY
Slide 11: Revenues & Adj. EBITDA (AL)
11 Revenues & Adj. EBITDA (AL) Total Revenues (€m) 905 845 885 3,455 804 854 3,336 5.9% 2.6% 1.1% 1.1% -2.0% FY 2021 FY 2022 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 yoy change % Adj. EBITDA (AL) (€m) 40.1% 39.4% 39.6% 38.3% 38.8% 39.0% 37.5% 358 1,348 333 332 327 322 1,296 7.2% 1.6% 0.0% -1.0% -1.8% FY 2021 F
Slide 12: Capex
12 Capex 199 Adjusted Capex (€m) 178 168 167 638 640 559 80 18.5% 22.5% 16.8% 19.9% 19.7% 19.5% 9.9% Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 FY 2021 FY 2022 FY 2023 Guidance As % of sales As % of sales Per Country (€m) Q2 2023 • FTTH footprint at c.1.1million households and businesses as of June 30, 2023 €158
Slide 13: Cashflow
13 Cashflow Adjusted FCF (€mn) Q2’23: -7.5% yoy 1,293 352 1,149 328 309 315 292 654 229 590 160 153 148 114 (80) (559) (638) (199) (168) (178) (167) FY 2021 FY 2022 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Adjusted Capex Adj. Net operating CF Adj.FCF 226 Reported FCF (€m) Q2’23: -8.4% yoy 157 144 597 138 500 48
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 0.4x 0.6x 0.5x 0.4x 0.3x 1,539 Net Debt/EBITDA 1,298 1,317 1,291 1,212 537 506 391 774 Net Debt Net Debt/EBITDA 727 (524) stood at €391m (AL) stood at 0.3x (1,002) (590) (784) (821) Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Gross Debt Cash Net Debt Debt Maturity Profile (€m) (Nominal
Slide 16: Greece
OTE Group Q2 2023 Results Greece
Slide 17: Greece – Financial Overview
17 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 3,155 41.5% 41.6% 40.8% 43.3% 40.9% 830 3,340 30.0% 3,046 25.0% 814 41.5% 41.5% 2,840 768 787 20.0% 736 1,310 346 1,265 332 322 2,340 15.0% 319 319 10.0% 6.1% 1,840 5.0% 1.8% 2.2% 2.4% -0.9% 5.1% 1.0% 3.2% 1.6% 1,340 0.0% 0.9%
Slide 18: Greece – Financial Overview
18 Greece – Financial Overview Retail Fixed Revenues (€m) Retail fixed service revenues decreased by 3.7%: Including revenues from data communications services, retail fixed 951 933 revenues were down 2.9% 236 230 227 229 228 • Lower legacy voice revenues 0.1% • In Broadband, though revenue growth wa
Slide 19: Greece – Fixed & Broadband KPIs
19 Greece – Fixed & Broadband KPIs OTE Fixed Lines Evolution (000) OTE Broadband lines Evolution (000) 2,287 2,298 2,318 2,333 2,342 2,714 2,702 2,701 2,701 2,699 18 20 11 15 9 1 02 0 -3 -12 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 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) 1,415 1,515 1,430 1,448 1,489 207 62% 62% 62% 64% 65% 41 25 15 18 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 yoy change % FTTH Retail Subscribers (000) FTTH Homes Passed 19
Slide 21: Greece – COSMOTE TV
21 Greece – COSMOTE TV Q2’23: +1.0% yoy TV Subscribers (000) 644 643 649 648 642 • UEFA Champions League and Europa League TV rights renewed for 2021-2024 • Renewal of broadcasting rights of Key Greek football teams for 2023- 2025 • 8/14 Greek Superleague football teams • Agreement for the broadcast
Slide 22: Greece – Mobile KPIs
22 Greece – Mobile KPIs Total Subscribers (000) Q2'23: Post Paid +5.3% yoy 7,411 7,370 7,345 7,373 7,322 4,424 4,487 4,420 4,348 4,322 2,899 +4.8% 2,924 +4.7% 2,950 +4.5% 2,997 +5.3% 3,051 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Postpaid Prepaid Avg.Data usage* (GB) 11.1 Q2'23: +45% yoy Another positive “COSM
Slide 23: Greece – Digitalization
23 Greece – Digitalization Smartphone penetration (%) COSMOTE app users at 3.7 million by end of the quarter - the 79% 79% 80% 81% major digital contact point with the customer. 78% Mobile data bundle Remote Wi-Fi router +2pp subscription renewal, bill management, parental control payment, and order
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: OTE Group Q2 2023 Results
OTE Group Q2 2023 Results
Slide 26: Romania – Financial Overview
26 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 316 9.7% 12.4% 306 78 77 17.5% 16.4'% 73 0.0% 5.1% 6.9% 69 69 38 14 31 13 3 5 0 FY 2021 FY 2022 FY 2021 FY 2022 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Adjusted Capex (€m) Adj. EBITDA (AL) yoy change % Marg
Slide 27: Romania – Financial Overview
27 Romania – Financial Overview Mobile Service Revenues (€m) 222 51 51 203 49 48 46 FY 2021 FY 2022 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 • Mobile Service revenues were down 8.3%, partially due to the impact of mobile termination rate (MTR) and certain customer-retention activities • Postpaid subscriber bas
Slide 28: Romania – Mobile KPIs
28 Romania – Mobile KPIs Q2'23: Post Paid +4.3% yoy Data Revenues (€m) Total Subscribers (000) 4,082 4,166 4,062 4,063 3,941 19 20 20 20 18 2,257 2,311 2,205 2,200 2,154 1,787 1,824 1,854 1,857 1,864 Q3'22 Q4'22 Q1’23 Q2’23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 &# Postpaid Prepaid Data Revenues as % o
Slide 29: Thank you.
Thank you.