Telefonica Deutschland Holding AG · LS:A1J5RX
Telefonica Deutschland — Q1 2014 Earnings Presentation
18 slides from Telefonica Deutschland's earnings presentation, May 8, 2014
Slide 1: Preliminary Results January – March 2014
Preliminary Results January – March 2014 Telefónica Deutschland Holding AG Public – Nicht vertraulich
Slide 2: Disclaimer
Disclaimer The financial information contained in this document (in general prepared under International Financial Reporting Standards (IFRS)) contains in respect of the results for the January-March 2014 period only preliminary numbers. The financial information and opinions contained in this docum
Slide 3: Telefónica Deutschland management team
Telefónica Deutschland management team Markus Haas Rachel Empey CSO CFO Joint leadership of the Management Board of Telefónica Deutschland Holding AG 3 Public – Nicht vertraulich
Slide 4: First Quarter 2014: Main Operating & Financial Highlights
First Quarter 2014: Main Operating & Financial Highlights LTE has already emerged as the biggest driver for mobile data monetisation in a very active competitive environment Wireless service revenues showed stabilisation of trends while we continued increasing commercial investments to enhance t
Slide 5: Seizing opportunities in a very active mobile data market
Seizing opportunities in a very active mobile data market O2 position as best Value-for-Money LTE brand in Germany Consumers: SMEs/Corporates: More value in O2 Blue All-in portfolio New disruptive O2 UNITE concept LTE included in all O2 Blue All-in tariffs Common pool of Voice/Data for employees
Slide 6: Increasing focus on data monetisation and LTE uptake
Increasing focus on data monetisation and LTE uptake Evolution of postpaid Net Additions Smartphone penetration In k Within O2 Consumer Customer Base (%) Postpaid share of mobile customer base (%) Prepaid Postpaid 52.8% 53.8% 70.7% 65.0% +5.7 92 78 60 55 21.2% 13.2% +8.0 -30 Q1 ’13 Q2 ’13 Q3 ’13 Q4
Slide 7: Revenue performance in the first quarter of 2014
Revenue performance in the first quarter of 2014 Stability of WSR performance Total Revenue Structure of O2 Consumer Postpaid WSR Year-on-Year in million Euro Quarterly evolution in % -8.8% Incoming 4% 5% 5% 5% 5% -8.7% Voice 8% 7% 6% 6% 5% 1,230 Incoming SMS Other 1 1,123 1,122 24% 22% Out-of-Bundl
Slide 8: Drivers of Wireless Service Revenues
Drivers of Wireless Service Revenues Better sequential performance from Tariff migrations Main drivers for evolution of Wireless Service Revenues in O2 Consumer Postpaid Segment Quarter-on-quarter absolute performance exMTRs Var vs. -40% -21% +14% Q4-Q3 Q4 ’13 Trading Tariff migrations SMS incoming
Slide 9: OIBDA margin y-o-y evolution in line with previous quarters
OIBDA margin y-o-y evolution in line with previous quarters Driven by revenue performance and commercial costs OIBDA evolution Year-on-year in million Euro 22.6% 20.9% Margin -44 (-15.8%) +278 +234 -3 -13 -108 +5 +74 Q1’13 Revenues Other Income Supplies Personnel Other Q1’14 expenses expenses Evolut
Slide 10: Free Cash Flow growth in the first quarter of 2014
Free Cash Flow growth in the first quarter of 2014 Driven by positive impact from Working Capital management Evolution of Free Cash Flow1) Year-on-year in million Euro +1.8% +105 +107 -1 -31 34 CapEx: -9.3% y-o-y ~50% LTE outdoor coverage2) FCF pre dividends OIBDA- Working Capital Others FCF pre div
Slide 11: Solid financial profile
Solid financial profile Successfully positioned in the debt capital markets Strong liquidity position Extended maturity profile In million Euro In million Euro inter-company loan 600 Bond 1 (Nov ’13) 1,896 500 Bond 2 (Feb’14) 710 1,186 225 250 250 0 Cash 31.03.2014 Undrawn RCF 1) Liquidity Cushion 2
Slide 12: Main take-aways and near term expectations
Main take-aways and near term expectations Telefónica Deutschland operating & financial performance is a reflection of a consistent execution of our mobile-data centric strategy We are increasing investments in the market to seize additional opportunities around LTE in both in the Consumer and S
Slide 13: Regulatory topics and E-Plus transaction process update
Regulatory topics and E-Plus transaction process update NGA cooperation agreement with DT approved by German Regulator; ongoing spectrum allocation consultation E-Plus transaction approval by EC proceeding with submission and market test of remedy package Preparation of equity financing measur
Slide 14: Latest regulatory topics of interest
Latest regulatory topics of interest NGA cooperation agreement with DT & Spectrum consultation ‣ The German Federal Network Agency confirmed compliance with the German Telco. Act and finalised the proceeding after further Regulatory approval acknowledgment from EC NGA cooperation ‣ FCO to give final
Slide 15: E-Plus transaction approval proceeding in Q2'14
E-Plus transaction approval proceeding in Q2‘14 Preparing for capital increase after closing by mid‘14 Oct 2, 2013 Oct 31, 2013 Dec 20, 2013 Feb 11, 2014 Q2 2014 Mid 2014 Post-Closing KPN EGM Submission of EC Phase II TDH EGM Regulatory Closure Activities Form CO to EC starts clearance of transactio
Slide 16: Strengthening Telefonica Deutschland core priorities
Strenghtening Telefonica Deutschland core priorities Becoming a Leading Digital Telco 2014 Priorities for Telefonica Early identified strengths from the Deutschland integration with E-Plus Capitalise on multi-brand portfolio & high level Digital Consumer-focused with a challenger of customer satisfa
Slide 17: Q&A session
Telefónica Deutschland Q1 2014 preliminary results Q&A session 17 Public – Nicht vertraulich
Slide 18: ‘Jelefontca
‘Jelefontca Deutschland
Telefónica Deutschland Holding — Q1 2014 Earnings Presentation on 6ix