25 slides from Hellenic Telecommunications Organization Sa's earnings presentation, August 2019
Slide 1: OTE Hellenic Telecommunications Organization Q2 2019 Results
OTE Hellenic Telecommunications Organization Q2 2019 Results August 2019
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 Q2’2019 €947mn €322mn €178mn €173mn Market Cap €6bn Revenues Adj. EBITDA Adj. Capex Adj. FCF 6M’2019 €1,856mn 633mn €354mn €208mn Revenues Adj. EBITDA Shareholders* Greece: Greece: DT: 76% 91% 46% Romania: Romania: Hellenic State: 24% 9% 5.
Slide 4: Our Strategy
Our Strategy The 6 Pillars of our strategic plan Best Customer Revenue Lead in Technology Superiority Experience Transformation Core Business • Optical fiber networks: • Digital Transformation • Data services monetization Massive rollouts of Vectoring; @Customer: • Innovative services launch • COSMO
Slide 5: 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 Digitalize Service Digital Interactions Simplify Portfolio Processes Digital One App primary touchpoint for Order2Bill: sel
Slide 6: Best Mobile Network in Greece
Best Mobile Network in Greece Speed Score COSMOTE Fastest Mobile Network for 2017,2018, Q1 & Q2 of 2019 48.94 Download Speed (Mbps) Upload Speed (Mbps) COSMOTE 14.49 COSMOTE 54.49 OPERATOR 2 12.53 OPERATOR 2 31.24 OPERATOR 3 9.29 OPERATOR 3 25.84 Latency (ms) OPERATOR 3 34 OPERATOR 2 31 COSMOTE 28 B
Slide 7: Capex
Capex Adjusted Capex (€ mn) 900 782 26.0% 800 706 700 250 650 250 226 226 26.0% 26.0% 21.0% 600 200 200 176 178 176 178 165 167 165 167 500 20.6% 156 23.2% 148 21.0% 23.2% 21.0% 150 400 18.6% 150 16.0% 19.4% 19.4% 18.8% 300 18.2% 18.2% 17.7% 18.8% 16.0% 16.0% 100 17.7% 100 200 11.0% 16.0% 15.2% 11.0
Slide 8: Cash Flow
Cash Flow Adjusted FCF (€ mn) Q2’19: +€81mn yoy 1,051 1,100 351 874 308 259 450 273 173 345 174 175 92 92 148 95 50 9 (11) (28) (706) (650) (167) (178) (782) (185) (176) (167) (223) (213) FY 2017 FY 2018 FY 2019 Guidance Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'19 Adj. Net Operating CF Adjusted Capex
Slide 9: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€ mn) (IFRS amounts) Net Debt/EBITDA 0.8x 0.3x 0.6x 0.6x 0.6x 0.6x 0.5x 0.5x -0.2x 1,825 1,829 1,733 1,731 1,514 1,515 748 692 808 739 732 602 (766) (823) (1,018) (1,090) (1,001) (1,129) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Gross Debt Cash and other financial asse
Slide 10: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Estimated 2019 Payout (€mn) 0.50 0.46 Total 0.45 350 0.40 0.35 Remuneration 0.35 0.30 Share Buy Back 129 0.25 Special dividend of €0.06 0.20 0.15 +31% deriving from the net proceeds 0.10 of Albania disposal, paid on Dividends 221 0.05 26th of Ju
Slide 11: Greece
Greece OTE | Q2 2019 Results| 11
Slide 12: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 50.0% 48.0% 46.0% 42.5% 1,000 44.0% 450 40.9% 40.8% 40.8% 40.6% 900 35.0% 42.0% 39.2% 450 35.0% 40.0% 400 754 736 720 800 686 711 697 38.0% 36.0% 350 400 321 35.0% 25.0% 321 301 284 292 700 280 Q1'18 350 279 Q2'18 Q3
Slide 13: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 350 350 35.0% 35.0% 300 300 257 225 227 233 231 231 233 25.0% 234 239 25.0% 250 250 213 222 215 15.0% 15.0% 200 200 1.2% 2.6% 1.2% 2.8% 2.8% 0.8% 1.2% 2.0% 150 0.5% 5.0% 150 -0.8% -0.7% 5.0% 100 100 -5.8% -5.0% -
Slide 14: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,648k 4,766 4,766 4,759 4,779 4,785 4,783 45% 44% 44% 45% 45% 45% Retail Customers +0.1% y-o-y 55% 56% 56% 55% 55% 55% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 OTE Market Share Competitors Market Share Net Additions (000) 20 11 9
Slide 15: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) Market Penetration OTE Broadband Lines at 1,951k 3,841 3,865 3,887 3,955 3,987 4,017 120% 100% 81% 81% 82% 83% 83% 84% 80% 53% 53% 52% 52% 52% 51% 60% 69% 70% 72% 73% 74% 68% 40% 47% 47% 48% 48% 48% 49% 20% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19
Slide 16: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) 646 Penetration of high-speed Fiber Broadband service at 650 586 531 100.0% 33.1% of retail broadband base 550 483 449 450 405 80.0% At June 30, total number of VDSL/Vectoring activated 350 60.0% cabinets amounted to 15.3k up by over 800 units in t
Slide 17: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 600 528 526 534 542 540 544 80 500 60 Cosmote TV is planning to launch its own personalized OTT service in Q3’ 2019 400 40 300 20 +3.4% y-o-y Increase in Customer base 200 0 8 8 3 100 3 (2) (2) -20 0 -40 Champions League & Europa League 2018-2021 Q1'1
Slide 18: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€ mn) Avg.Data usage* (GB) 35% of Service Revenues 90 85 45.0% 79 2.3 2.4 80 74 75 40.0% 70 2.1 70 64 35.0% 2.0 2.0 1.8 60 30.0% 1.7 1.5 50 25.0% 40 20.0% +32% 22.0% 1.0 30 20.4% 18.7% 15.0% 18.6% 17.8% 20 15.9% 10.0% 0.5 10 5.0% 0.0 0 0.0% Q1'18 Q2'18 Q3'18 Q4'18
Slide 19: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) COSMOTE Apps Active users penetration* (%) 100% 90% 90% 80% 80% 68% 70% 70% 71% 66% 67% 65% 66% 70% 70% 64% 60% 60% 56% 47% 50% 50% 50% 40% 40% 30% +4pp 30% +16pp 20% 20% 10% 10% 0% 0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2'18 Q3'18 Q4'18 Q1'1
Slide 20: Romania
Romania OTE | Q2 2019 Results| 20
Slide 21: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 20.0% 14.6% 15.7% 18.2% 300 100.0% 18.0% 16.0% 12.1% 12.9% 14.0% 10.2% 238 242 231 80.0% 12.0% 60 250 227 227 217 10.0% 8.0% 160.0% 60.0% 50 6.0% 40.0% 60 4.0% 41 110.0% 200 2.0% 37 160.0% -1.7% 0.8% 0.0% 40 33 -5.3
Slide 22: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€ mn) 120 Mobile Service Revenues (€ mn) 120.0% 120 120.0% 100 100 100.0% 120.0% 90 100.0% 100 82 82 82 80.0% 100.0% 76 79 82 82 76 82 80 80 80.0% 76 79 60.0% 66 80.0% 76 63 80 70 60 59 58 59 60.0% 60.0% 40.0% 60 60 40.0% 50 40.0% 60 5.4% 3.1% 20.0
Slide 23: Romania – Fixed KPIs
Romania – Fixed KPIs Voice Lines* (000) Broadband Lines* (000) TV Subscribers (000) 3,000 Q2’19: +0.9% yoy Q2’19: -5.9% yoy Q2’19: -5.7% yoy 3,000 3,000 2,500 2,500 2,500 2,094 2,097 2,112 2,142 2,137 2,115 2,000 2,000 2,000 1,500 1,464 1,463 1,454 1,443 1,409 1,380 1,500 1,170 1,161 1,152 1,143 1,1
Slide 24: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 30 60% Data Revenues 80.0% 25 50% 20 21 18 19 19 60.0% 20 17 40% 29% 29% 31% 40.0% 28% 15 30% 24% 24% 41.5% 34.8% 20.0% 10 20% 15.2% 0.0% 5 9.3% 10.6% 10% 5.9% 0 -20.0% 0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2'1
Slide 25: 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 | Q2 2019 Results| 25