Telecom Italia S.p.A. · MIL:TIT
Telecom Italia — H1 2013 Earnings Presentation
24 slides from Telecom Italia's earnings presentation, Aug 2, 2013
Slide 1: Telecom Italia Group 1H 2013 Results
TELECOM ITALIA GROUP 1H 2013 Results Milan, August 2nd, 2013 Telecom Italia Group 1H 2013 Results FRANCO BERNABE’
Slide 2: Safe Harbour
TELECOM ITALIA GROUP 1H 2013 Results Safe Harbour These presentations contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements re
Slide 3: Agenda
TELECOM ITALIA GROUP 1H 2013 Results Agenda Key Actions to Stabilize Domestic EBITDA TI Group 1H13 Results and Core Markets Performance Guidance updated, Debt target confirmed Expected Regulatory Timetable related to our Structural Fixed Access Separation Project and Wrap-up Appendix FRANCO BER
Slide 4: What changed in the 2nd Quarter
TELECOM ITALIA GROUP 1H 2013 Results What changed in the 2nd Quarter Adverse Regulation in Italy Economic Slowdown Domestic Mobile Consumer AgCom Proposal 2013* Stronger in Italy… CB Defense Action was needed €/month/line 2012 2013 New 2013 GDP forecast at Competitors price pressure was -1.9% (-
Slide 5: Our Priorities in Italy
TELECOM ITALIA GROUP 1H 2013 Results Our Priorities in Italy Fixed Market Mobile Market Execute our Fiber plan TIM’s repositioning in the Mobile Market Sustain Premium Positioning supported by Willingness Customer Base successful Defense aims at KPI To Pay for Fixed UBB. improvement, leveraging
Slide 6: Agenda: TI Group 1H13 Results and Core Markets Performance
TELECOM ITALIA GROUP 1H 2013 Results Agenda Key Actions to Stabilize Domestic EBITDA TI Group 1H13 Results and Core Markets Performance Guidance updated, Debt target confirmed Expected Regulatory Timetable related to our Structural Fixed Access Separation Project and Wrap-up Appendix FRANCO BER
Slide 7: TI Group 1H13 Results
TELECOM ITALIA GROUP 1H 2013 Results TI Group 1H13 Results Revenues: 13.8 bln € (-7.0% YoY, Organic -2.7% YoY) Reported Ebitda: 5.2 bln € (-10.6% YoY) Focus on Organic Ebitda: 5.4 bln € (-6.8% YoY) Core Markets Net Income before GW Writedown, ante Minorities: 1 bln € Net Income before GW Writedown,
Slide 8: TI Group Main Results
TELECOM ITALIA GROUP 1H 2013 Results TI Group Main Results Euro mln, Organic data, % Revenues EBITDA CAPEX % on Revenues % on Revenues -375 M€ -2.7% 40.7% -1.8 pp 14,135 13,760 38.9% 15.3% +0.6 pp 15.9% -391 M€ -6.8% 5,746 5,355 +33 M€ 1.5% 2,160 2,193 1H12 1H13 1H12 1H13 1H12 1H13 Contribution to Y
Slide 9: TI Group Core Markets Performance
TELECOM ITALIA GROUP 1H 2013 Results TI Group Core Markets Performance Euro mln, Organic data Weight on TI Group TI Group Domestic Brazil Argentina 1H13 % yoy 1H13 % yoy 1H13 % yoy 1H13 % yoy Revenues 13,760 -2.7% 8,104 -10.5% 3,620 +7.1% 1,890 +22.5% ~59% ~26% ~14% ~40% EBITDA 5,355 -6.8% 3,943
Slide 10: Domestic
TELECOM ITALIA GROUP 1H 2013 Results Domestic Euro mln, Organic data, % Revenues EBITDA % on Total -951M€ Revenues 9,055 -10.5% 48.8% -0.1 pp 48.7% 8,104 -480M€ 2Q 4.578 -498M€ 4,423 -10.9% -10.9% 4.080 3,943 2Q 2.205 -262M€ -11.9% 1.943 -453M€ 1Q 4.477 4.024 -10.1% 1Q 2.218 -218M€ 2.000 -9.8% 1H12
Slide 11: Brazil
TELECOM ITALIA GROUP 1H 2013 Results Brazil Euro mln, Organic data, % Revenues EBITDA % on Total +239M€ Revenues +7.1% 3,620 26.5% -1.1 pp 25.4% 3,381 +25M€ +147M€ 1,834 919 2Q 1.687 +8.7%* 894 +2.8% +5M€ 2Q 451 +1.3%* 456 1Q 1.694 +92M€ 1.786 +20M€ +5.4% 1Q 443 +4.4% 463 1H12 1H13 1H12 1H13 Highlig
Slide 12: Argentina
TELECOM ITALIA GROUP 1H 2013 Results Argentina Euro mln, Organic data, % Revenues EBITDA % on Total +347M€ Revenues 1,890 30.2% -1.8 pp 28.4% +22.5% 1,543 973 +72M€ +205M€ 2Q +15.5% 537 768 +26.6% 465 +49M€ 266 2Q 217 +22.3% +142M€ 917 1Q 775 +18.3% +23M€ 1Q 248 +9.2% 271 1H12 1H13 1H12 1H13 Highlig
Slide 13: Agenda: Guidance updated, Debt target confirmed
TELECOM ITALIA GROUP 1H 2013 Results Agenda Key Actions to Stabilize Domestic EBITDA TI Group 1H13 Results and Core Markets Performance Guidance updated, Debt target confirmed Expected Regulatory Timetable related to our Structural Fixed Access Separation Project and Wrap-up Appendix FRANCO BER
Slide 14: New Guidance for 2013
TELECOM ITALIA GROUP 1H 2013 Results New Guidance for 2013 Organic Data* TI Group - 2013 targets Revenues Stable YoY Confirmed EBITDA Mid-single digit decline YoY Revised (from Low-single digit decline YoY) NFP Adj.** < 27 € bln Confirmed TI Domestic - 2013 targets Revenues Mid-single digit decline
Slide 15: FY 2013 Net Financial Position Target is confirmed
TELECOM ITALIA GROUP 1H 2013 Results FY 2013 Net Financial Position Target is confirmed Euro mln 28.813 28.274 < 27 bln Additional Actions: Domestic NFP Brazil NFP Argentina FY ‘12 1H ‘13 FY ‘13 Net Debt Adj/ EBITDA reported ~ 2.4x ~ 2.4x* * Includes contribuiton of further non-organic actions FR
Slide 16: Agenda: Expected Regulatory Timetable and Wrap-up
TELECOM ITALIA GROUP 1H 2013 Results Agenda Key Actions to Stabilize Domestic EBITDA TI Group 1H13 Results and Core Markets Performance Guidance updated, Debt target confirmed Expected Regulatory Timetable related to our Structural Fixed Access Separation Project and Wrap-up Appendix FRANCO BER
Slide 17: Expected Regulatory Timetable for Structural Fixed Access Separation Project
TELECOM ITALIA GROUP 1H 2013 Results Expected Regulatory Timetable in connection with TI’s Structural Fixed Access Separation Project Today 2013 2014 June July August Sept. Oct. Nov. Dec. Jan. Feb. Decision on separation project communicated to AgCom AgCom first screening on Technical Table AgCom TI
Slide 18: Wrap-up: Envisaged Structural Changes
TELECOM ITALIA GROUP 1H 2013 Results Wrap-up: Envisaged Structural Changes Fixed Market Mobile Market Access network Spin-off is still on Consolidation would lead to market repair We welcome AgCom go-ahead for the spin-off and we will Current pricing pressure required a change in strategy to fol
Slide 19: Agenda: Appendix
TELECOM ITALIA GROUP 1H 2013 Results Agenda Key Actions to Stabilize Domestic EBITDA TI Group 1H13 Results and Core Markets Performance Guidance updated, Debt target confirmed Expected Regulatory Timetable related to our Structural Fixed Access Separation Project and Wrap-up Appendix PIERGIORGI
Slide 20: TI Group - Revenues Evolution
TELECOM ITALIA GROUP 1H 2013 Results TI Group - Revenues Evolution Euro mln -1,033 (-7.0%) Matrix & Elim. (16) La7 (17) 14,793 (33) (634) +9 14,135 (951) +347 (14) (6) +10 13,760 0 13,760 +239 Brazil (352) Argentina (280) Domestic (2) Organic Variation -375 (-2.7%) 1H12 Change in Exchange Other
Slide 21: TI Group - EBITDA Evolution
TELECOM ITALIA GROUP 1H 2013 Results TI Group - EBITDA Evolution Euro mln -623 (-10.6%) Matrix +23 Agreements and Transactions (86) La7 +9 Restructuring charges (21) Other net cost (12) 5,859 +32 (179) +34 5,746 (480) +72 (4) (1) (3) 5,355 +25 (119) 5,236 Brazil (93) Argentina (85) Domestic
Slide 22: TI Group - Net Income Evolution
TELECOM ITALIA GROUP 1H 2013 Results TI Group - Net Income Evolution Euro mln -462 (-37.2%) Of which La7 sale (105) 214 1,456 (659) 1,242 (26) 189 960 (180) 780 (2,187) (1,407) Net Income Minorities Income ante Min Income/(Loss) Minorities/ Net Income 1H12 1H12 & Disc. Ops. EBIT Net Interest &
Slide 23: TI Group 1H13 Results - P&L
TELECOM ITALIA GROUP 1H 2013 Results TI Group 1H13 Results - P&L Euro mln – Reported Data I Half 2013 2012 Abs. % REVENUES 13,760 14,793 (1,033) (7.0) Other Operating Income 110 108 2 1.9 TOTAL REVENUES & OTHER INCOME 13,870 14,901 (1,031) (6.9) Total Purchases of materials and external services
Slide 24: TI Group 1H13 - Main Results by BU
TELECOM ITALIA GROUP 1H 2013 Results TI Group 1H13 - Main Results by BU Euro mln I Half I Half Reported Organic 2013 2012 Abs. % 2013 2012 Abs. % REVENUES REVENUES Domestic 8,104 9,048 -944 (10.4) Domestic 8,104 9,055 -951 (10.5) Wireline Domestic 5,961 6,468 -507 (7.8) Wireline Domestic 5,961