Hellenic Telecommunications Organization SA · ATHEX:HTO
Hellenic Telecommunications Organization SA — Q2 2021 Earnings Presentation
29 slides from Hellenic Telecommunications Organization SA's earnings presentation, August 2021
Slide 1: Q2 2021 Results
OTE Hellenic Telecommunications Organization Q2 2021 Results August 2021
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: Key Developments
Key Developments Spin-off of Greek Agreement to sell The voluntary exit OTE continues to 1st in Greece to • 2021 to 2024 frontline into 54% stake in schemes (VES) invest in its launch 5G services seasons rights to standalone entities Telekom Romania implemented in network following auction broadcast
Slide 4: Q2 Highlights
Q2 Highlights Continuing recovery in Greece +8.0% Strong Greek operations Gradual recovery from the COVID-19 crisis Revenues Strong top line: +9.6% 7.4% increase in mobile service revenues, roaming rebounding +6.9% Adjusted EBITDA (AL) margin at 37.5% Broadband growth supported by demand for higher
Slide 5: Financial Review
Financial Review OTE | Q2 2020 RESULTS 5
Slide 6: Group Overview
Group Overview Revenues €828mn €1,615mn Romania Revenues Revenues (yoy +8.0%) (yoy +3.3%) Greece, 91% Romania, 9% €310mn €612mn Adj. EBITDA (AL) Adj. EBITDA (AL) (yoy +6.9%) (yoy +4.2%) Adj. EBITDA (AL) Greece €137mn €237mn Greece, 98% Adj. Capex Adj. Capex Romania, 2% (yoy +4.4%) (yoy -16.1 %) €163
Slide 7: Capex
Capex Adjusted Capex (€mn) 162 180 25.0% 151 600 20.0% 547 544 550 160 550 19.0% 131 137 20.0% 140 500 18.0% 450 17.0% 120 19.0% 99 19.1% 100 17.2% 15.0% 400 16.7% 16.0% 100 16.6% 350 16.6% 15.0% 80 300 14.0% 11.7% 12.7% 10.0% 60 250 13.0% 40 5.0% 200 12.0% 20 150 11.0% 100 10.0% 0 0.0% FY 2019 FY20
Slide 8: Cashflow
Cashflow Adjusted FCF (€mn) Q4’20: Q2’21:+64.2% -8.9% yoy 1,200 1,125 1,020 310 300 656 575 474 179 163 (547) (544) (550) (131) (137) FY 2019 FY2020 FY 2021 Guidance Q2'20 Q2'21 Adjusted Capex Adj. Net operating CF Adj.FCF Adjusted Capex Adj. Net operating CF Adj.FCF Reported FCF (€mn) Q2’21: +23.5%
Slide 9: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) 0.68 100% 0.55 FCF Distribution through a combination of dividends and share buybacks 0.46 +24% 65%/35% Targeted split between dividends and share buybacks €0.68 FY 2018 FY 2019 FY 2020 Dividend per share paid on July 02, 2021 Total Payout (€mn)
Slide 10: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€mn) (IFRS amounts) 0.8x 0.8x 0.8x 0.7x 0.6x 0.6x 2,382 2,039 1,731 1,556 1,534 1,678 • Adj. Net Debt stood at 930 848 1,032 1,034 €787mn 925 787 • Adj. Net Debt/EBITDA (AL) stood at 0.6x (700) (522) (608) (892) (1,109) (1,534) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
Slide 11: Greece
Greece OTE | Q2 2020 RESULTS 11
Slide 12: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn) 2,943 2,940 41.2% 69000.0% 40.8% 42.7% 40.8% 41.2% 38.6% 41.6% 40.0% 1,212 1,199 840 30.0% 64000.0% 763 778 759 450 790 25.0% 717 35.0% 707 400 740 692 20.0% 326 304 59000.0% 300 298 350 690 9.6% 15.0% 288 285 25.0% 300 2.9% 640
Slide 13: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€mn) 20.0% 936 938 Retail fixed service revenues were up 2%: 15.0% 261 234 231 237 236 233 236 10.0% 211 5.0% o Continuing strong momentum in broadband 0.0% revenues 1.3% 2.0% 161 0.0% 0.6% -0.6% -0.9% o Demand for fiber services is expanding and fu
Slide 14: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,699k 4,806 4,836 4,829 4,852 4,863 4,870 45% 44% 44% 45% 45% 45% 45% 45% 45% 45% 45% 45% 44% 44% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 45% 55% 56% 56% 55% 55% 55% 55% 55% 55% 55% 55% 56% 55% 55% 55% 55% 55% 56% 55%
Slide 15: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines Market Penetration at 2,204k 4,191 4,216 4,263 4,299 4,329 4,134 120% 86% 87% 87% 88% 88% 89% 49% 100% 51% 50% 50% 50% 49% 80% 60% 77% 78% 79% 80% 81% 82% 40% 49% 50% 50% 50% 51% 51% 20% 0% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'
Slide 16: Greece – Fiber KPIs
Greece – Fiber KPIs Fiber Subscribers (000) 20% of fiber subs enjoy Fiber Subscribers additions (000) speeds of 100Mbps or more 80 1,056 1,200 100.0% 1,005 70 945 60 90.0% 1,000 886 59 840 80.0% 60 53 51 787 800 70.0% 50 45 46 60.0% 40 600 50.0% 34.5% 30.2% 40.0% 27.6% 30 400 27.5% 27.4% 25.7% 30.0%
Slide 17: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 557 563 563 575 578 579 • +2.8% yoy increase in Customer base 600 80 500 60 400 40 • UEFA Champions League and Europa League TV rights 12 renewed for 2021-2024 300 7 0 3 20 2 1 200 0 • Italian Lega Serie A rights up to 2023-2024 period 100 -20 • OTE c
Slide 18: Greece – Mobile KPIs
Greece – Mobile KPIs Total Subscribers (000) Q2'21: Post Paid +1.9% yoy 7,343 7,208 7,112 6,959 6,889 6,988 4,672 4,504 4,390 4,245 4,164 4,232 2,672 2,705 2,723 2,714 2,725 2,756 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Postpaid Prepaid Avg.Data usage* (GB) Q2'21: +24.0% yoy • Another positive quarter f
Slide 19: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) 90% 80% 75% 75% 76% 76% 77% 77% 70% 60% COSMOTE app was downloaded by 3.4mn users by end of the quarter. It was further boosted during the quarter 50% 40% +2pp and became the major digital contact point with the 30% 20% 10% customer. It includes fea
Slide 20: Strategy
Strategy DIGITALIZATION, GROWTH TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN SIMPLIFICATION AND MINDSET AND SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS COST OPTIMIZATION CULTURE • Optical Fiber • Digital Transformation • ICT projects • Leverage COSMOTE • Digital Transformation • Evaluation of ne
Slide 21: Digital Transformation
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 • One App primary touchpoint • Order2Bill: self-service • Simplify Product & Tariff for all customer ordering portfolio interac
Slide 22: Mobile Network Superiority in Greece
Mobile Network Superiority in Greece COSMOTE Fastest Mobile Network for 8th consecutive time Best in Test” certification, for seventh consecutive time, for its mobile internet and voice services in Greece OPERATOR OPERATOR 51.39 25.62 28.49 AVERAGE DOWNLOAD SPEED (MBPS) AVERAGE UPLOAD SPEED (MBPS) A
Slide 23: SRI Indices and Ratings
SRI Indices and Ratings OTE is included in the Vigeo-Eiris Best Emerging In 2021, OTE kept its status as a OTE, since 2008, fulfills all requirements and is a Market Performers Ranking (the 100 most "Prime" company, a title awarded to member of the FTSE4Good Index Series. OTE is advanced companies i
Slide 24: Environmental Targets
Environmental Targets OTE Group commits to DT Climate Change Targets: • Net Zero for direct and indirect energy consumption including up to 95% reduction by 2025 • 100% Renewable electricity (from 2021) • 25% Emission reduction per customer for value chains emissions (2017-2030) • Net Zero emissions
Slide 25: Romania Mobile
Romania Mobile OTE | Q2 2020 RESULTS 25
Slide 26: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€mn) Adj. EBITDA (AL) (€mn) 386 7.0% 8.5% 6.7% 17.4% 3.8% 9.0% 30 4.7% -5.7% 350 120 25 96 25 100 91 84 79 77 75 20 18 17 16 80 1.6 15 12 60 1.1 8 7 40 10 7 5 0.6 3 5 20 2 0.1 0 0 -3 -0.4 FY 2019 FY 2020 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 FY 2019 FY 2020
Slide 27: Romania – Financial Overview
Romania – Financial Overview Mobile Service Revenues (€mn) 90 254 80 231 70 59 58 57 60 56 55 54 50 40 30 20 10 0 FY 2019 FY 2020 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Mobile Service revenues were down 6.4%, mainly due to: Lower revenue in prepaid and lower interconnection Postpaid segment continu
Slide 28: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€mn) Data Revenues as % of Service Revenues 30 25 22 23 22 21 21 20 20 39.8% 39.2% 37.3% 36.9% 37.4% 35.8% 15 10 5 0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Total Subscribers (000) 3,861 3,758 3,695 3,643 3,550 3,540 2,317 2,185 2,
Slide 29: Thank you
Thank you OTE | Q2 2020 RESULTS 29
Hellenic Telecommunications Organization (OTE) — Q2 2021 Earnings Presentation on 6ix