Telefonica Sa · BME:TEF
Telefonica Sa — Q1 2022 Earnings Presentation
24 slides from Telefonica Sa's earnings presentation, May 12, 2022
Slide 1: Telefónica Results Jan-Mar 2022
3° Telefonica RESULTS JAN | MAR 2022
Slide 2: Disclaimer
Disclaimer This document and any related conference call or webcast (including any related Q&A session) may contain forward-looking statements and information (hereinafter, the “Statements”) relating to the Telefónica Group (hereinafter, the "Company" or "Telefónica"). These Statements may include f
Slide 3: Q1 22 Results
Q1 22 Results Mr. Ángel Vilá COO
Slide 4: Strategy execution whilst delivering growth
Strategy execution whilst delivering growth Another quarter of Reinforced position Shaping sustainable revenue in core markets the opportunities growth… • New miMovistar offer launched to accelerate B2C • T. Infra, ongoing conversations with …allowing to manage growth; DAZN agreement in Spain allows
Slide 5: Sustained growth momentum delivers strong start to the year
Sustained growth momentum delivers strong start to the year Revenue OIBDA CapEx/Sales FCF y-o-y organic y-o-y organic organic +3.2% +2.1% 12.0% €513m Steady growth Accelerating growth CapEx prioritisation Net debt €27.5bn Resilient across all business lines Stable OIBDA margin Investing in growth So
Slide 6: Key financial metrics
Key financial metrics Q1 22 Q1 22 Reported + 50% Organic Reported Reported € in millions € in millions VMO2 JV y-o-y y-o-y Revenue 9,410 (9.0%) Revenue 10,883 3.2% OIBDA 3,199 (6.4%) OIBDA Underlying 3,071 (12.1%) OIBDA 3,753 2.1% Net Income 706 (20.3%) FCF (incl. leases principal 513 n.s. payments)
Slide 7: A stronger Telefonica for uncertain times, beating rising inflation
A stronger Telefonica for uncertain times, beating rising inflation T. Tech increased contribution to Germany revenue growth (+80.6% y-o-y) T. Infra; growing base of Reported y-o-y Q4 21 Q1 22 inflation-beating asset class UK CPI (avg.) 5.5% 6.1% Reported y-o-y Q4 21 Q1 22 Revenue +1.6% +5.2% CPI (a
Slide 8: Well on track for 2022 guidance
Well on track for 2022 guidance 2022 guidance organic and including 50% of the JV in 2022 and 2021 Targets 2021 Base 2022 Q1 22 “Low single digit Revenue €42,452m growth” 3.2% “Low single digit OIBDA €14,127m growth” 2.1% CapEx/Sales (ex spectrum) 14.7% Up to 15% 12.0% Shareholder remuneration 2022
Slide 9: Progress towards ambitious sustainability goals
Progress towards ambitious sustainability goals Environmental Social Governance 1 (*parity defined o Net-zero by 2040; Zero-waste by 2030; Avoid 90-97% MBB rural coverage by 2024 ; 33% female >€10bn sustainable financing; Zero-tolerance of 12m tCO2 emissions p.a. for customers by 2025 executives by
Slide 10: Spain
Spain Convergent KPIs Revenue & OIBDA growth (y-o-y organic) ARPU (€) Churn (%) Revenues OIBDA 89.7 87.4 89.6 90.4 91.1 0.6% 0.4% 0.5% 0.9% Revenue growth acceleration (0.9%) (3.4%) (4.6%) (4.4%) (4.9%) Convergent ARPU y-o-y growth, 1.5% 1.4% 1.4% 1.4% lowest churn in 5 years, 1.3% (8.9%) record hig
Slide 11: Germany
Germany Mobile accesses (m) Revenue & OIBDA organic growth Revenue OIBDA 45.3 45.7 45.9 44.4 45.0 10.3% Delivering sustained 5.7% 5.7% 5.1% 5.2% 7.0% operational and financial 3.5% 1.6% momentum 0.2% (2.2%) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Contract net adds +30% y-o-y Netw
Slide 12: Virgin Media O2
Virgin Media O2 Lightning build (k) Revenue & OIBDA growth (y-o-y organic) Revenue OIBDA 101 89 93 5.8% 78 4.4% Focus on innovation, 67 2.6% network investment and 0.7% synergy realisation (0.1%) (0.1%) (0.9%) (0.7%) (1.1%) Implemented price rises (4.7%) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3
Slide 13: Brazil
Brazil Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH Revenue OIBDA 41% 41% 39% 36% Strong reported growth 8% 9% 8% 29% 4.6% at stable CF margins 7% 3.2% 3.0% 3.0% 2.8% 6% 2.2% 1.7% 1.6% 0.2% +18.1% revenue / +14.6% OIBDA (€) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 (0.4%) Stable
Slide 14: Oi mobile assets acquisition completed
Oi mobile assets acquisition completed ✓ Acquired Oi mobile assets for a total price of ~€1.0bn (R$5.4Bn) -including earn out- • 43 MHz in 1,800 MHz, 2,100 MHz and 900 MHz with nationwide coverage • 12.5m accesses (37% contract; 63% prepaid) • 2.7k sites • ~€1.0bn synergies NPV (R$5.4Bn), mainly net
Slide 15: Tech build-up
Outstanding Global Capabilities Tech build-up Acquiring a strong player in DACH & Reinforcing tech capabilities in Spain Nordics 5.5m 1 DOC Altostratus (SP) Geprom (SP) BE-terna (GER) Telefónica Digital Operation Center A Google Cloud expert Engineering company focused A leading European Cloud Group
Slide 16: Tech, outperforming its market
Tech, outperforming its market 166 203 229 346 299 T. Tech Revenue 80.6% (€ in mill; y-o-y) 50.3% 25.1% 26.6% 24.9% >30% constant perimeter Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 T. Cloud & Cyber Tech T. IoT & Big Data Tech • Cyber performance above expectations • All services’ revenue (IoT connectivity, IoT
Slide 17: Infra, driving value creation
Infra, driving value creation • 50% Allianz / 50% TEF (40% T. Infra / 10% T.DE) New Fibre JVs Processes • Accelerated rollout & commercials Signed MOUs; c.250k PPs • Target: >2m PPs in 6yrs • 50% Investor / 50% TEF - LG • 45% Investor / 55% TEF 7m greenfield PPs by 2027 ~5m PPs brownfield + greenfie
Slide 18: Q1 22 Results
Q1 22 Results Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 19: Hispam
Hispam Accesses Growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH Revenue OIBDA 28% 25% 26% 25% 11.6% 22% 9.5% 9% Growing while 8% 8% 6.2% 6.0% 6% 4.0% 4.3% improving cash margins 2.3% 3% 0.3% (0.2%) (1.4%) Revs +9.7% & OIBDA +6.7% (€)(1) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q
Slide 20: Strong Balance Sheet, prudent management
Strong Balance Sheet, prudent management Debt Portfolio de-risked & well positioned Robust liquidity Liquidity Cushion, Mar-22 (€bn) €6.4bn(1) financing 81% 3.96% activity ytd Current liquidity 12.9 yrs Total debt Total Interest 12.0 22.3 exceeds maturities Avg. debt life payment cost 10.3 fixed bey
Slide 21: Conclusions
Conclusions Mr. Ángel Vilá COO
Slide 22: Strong start to the year
Strong start to the year Sequential improvement in organic and reported growth across whole Group Beating inflationary pressure, worst should be behind FX tailwinds, Brazil and Hispam growing double-digit in € terms Synergies materialisation in VMO2; sizeable Oi synergies to start flowing through Go
Slide 23: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 12 May at 10:00 AM (CET), 9:00 AM (BST), and 4:00 AM (EST) Participants from Telefónica • Ángel Vilá l COO • Eduardo Navarro l Chief Corporate Affairs & Sustainability Officer • Laura Abasolo l CFCO & Head T. Hispam
Slide 24: For further information, please contact: Investor Relations
For further information, please contact: Investor Relations FOLLOW US: Adrián Zunzunegui (adrian.zunzunegui@telefonica.com) Isabel Beltrán (i.beltran@telefonica.com) Torsten Achtmann (torsten.achtmann@telefonica.com) Tel. +34 91 482 87 00 ir@telefonica.com www.telefonica.com/investors