Pharol Sgps S.a. · EURONEXT:PHR
Pharol Sgps — Investor Presentation (July 2015)
19 slides from Pharol Sgps's investor presentation, Jul 6, 2015
Slide 1: Pharol: Maximum focus on asset optimization and Shareholders' Reward
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 PHAROL: Maximum focus on asset optimization and Shareholders’ Reward Madrid, July 6th 2015 1
Slide 2: Disclaimer
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 DISCLAIMER This document has been prepared by PHAROL, SGPS S.A. (the “Company”), and is being supplied to you for information purposes only. This document does not constitute or form part of, and should not be construe
Slide 3: At Pharol we are focusing work on 3 key strategic guidelines
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 AT PHAROL WE ARE FOCUSING WORK ON 3 KEY STRATEGIC GUIDELINES ■ Maximize performance and ROIC of PHAROL assets ■ Optimize our cost structure following best international practices ■ Increase Shareholders’ value and remu
Slide 4: Our asset portfolio
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 OUR ASSET PORTFOLIO Participation in Rio Forte Cash and other Oi liquid assets Current cash PHAROL is today Rio Forte Debt position exceeding Oi’s major instruments €80mn Shareholder (27.5% (nominal value €897mn) stake
Slide 5: Our strategic priorities for Oi
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 OUR STRATEGIC PRIORITIES FOR OI Strategic Priorities Focus on profitability and cash generation ■ Strengthen Balance Sheet 2015 plan delivery based on 4 key pillars: ■ Maximum financial rigor: back to positive FCF ■ Re
Slide 6: Oi: First quarter 2015 KPIs
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 OI: FIRST QUARTER 2015 KPIS Q1 2015 Performance Net Revenue ($Rbn) EBITDA ($Rbn) Capex ($Rbn) OpFCF ($Rbn) (0.5%) 12.8% (18.5%) 88.3% 0,9 6,9 6,8 1,2 1,9 0,5 1,7 1,0 1Q 14 1Q 15 1Q 14 1Q 15 1Q 14 1Q 15 1Q 14 1Q 15 Serv
Slide 7: Pharol's call option on Oi shares: technicalities
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 PHAROL’S CALL OPTION ON OI SHARES: TECHNICALITIES ■ Option over 47.4m ON shares and 94.9m PN treasury shares ■ Strike prices: R$ 20.104 for ON shares and R$ 18.529 for PN shares (adjusted by CDI + 1.5% p.a.) ■ If exerc
Slide 8: Rio Forte debt instruments
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 RIO FORTE DEBT INSTRUMENTS ■ PHAROL owns €897 mm debt instruments issued by Rio Forte ■ Following Rio Forte insolvency, legal claims have been submitted to recover this debt ■ Rio Forte asset disposal process currently
Slide 9: Uses of cash inflows
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 USES OF CASH INFLOWS ■ PHAROL is today fully immersed in the evaluation of its strategic cash needs to optimize Oi and Rio Forte assets. The final aim of this program is the subsequent analysis of the best options to i
Slide 10: Optimisation of holding cost structure
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 OPTIMISATION OF HOLDING COST STRUCTURE ■ Top Management is also absolutely focus on improving Headquarter cost structure ■ A full cost rationalization program and a good number of outsourcing solutions are under resear
Slide 11: Corporate governance: implementing international best practices
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 CORPORATE GOVERNANCE: IMPLEMENTING INTERNATIONAL BEST PRACTICES ■ New Board of Directors (3 year mandate) ■ Over 1/3rd of independent members ■ New Chairman of the Board was elected by AGM last May ■ Board of Directors
Slide 12: Final remarks
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 FINAL REMARKS ■ At PHAROL we aware of the importance to achieve our two main targets simultaneously: maximize the performance of our assets and improving remuneration to Shareholders ■ Our position as major shareholder
Slide 13: Thank you
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 THANK YOU We are now ready for questions 13
Slide 14: Appendix
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 Appendix PHAROL, SGPS SA Q12015 Financial Statements 14
Slide 15: Consolidated income statement
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 PORTUGAL TELECOM, SGPS, S.A. CONSOLIDATED INCOME STATEMENT THREE MONTH PERIODS ENDED 31 MARCH 2015 AND 2014 1Q15 1Q14 Restated CONTINUING OPERATIONS COSTS, LOSSES AND (INCOME) Wages and salaries 1,005,909 3,182,911 Sup
Slide 16: Consolidated statement of comprehensive income
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 PORTUGAL TELECOM, SGPS, S.A. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME THREE MONTH PERIODS ENDED 31 MARCH 2015 AND 2014 Euro 1Q15 1Q14 Net loss recognised in the income statement (42,992,619) (5,140,099) Income (e
Slide 17: Consolidated statement of financial position
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 PORTUGAL TELECOM, SGPS, S.A. CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 MARCH 2015 AND 31 DECEMBER 2014 31 Mar 2015 31 Dec 2014 ASSETS Current Assets Cash and cash equivalents 104,299,925 109,511,599 Accounts rece
Slide 18: Consolidated statement of cash flows
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 PORTUGAL TELECOM, SGPS, S.A. CONSOLIDATED STATEMENT OF CASH FLOWS THREE MONTH PERIODS ENDED 31 MARCH 2015 AND 2014 Euro 1Q15 1Q14 Restated OPERATING ACTIVITIES Payments to suppliers (3,993,406) (632,572) Payments to em
Slide 19: For further information
PHAROL: MAXIMUM FOCUS ON ASSET OPTIMISATION AND SHAREHOLDERS’ REWARD | 06.07.2015 For further information: ir@pharol.pt/www.pharol.pt 19