Telekom Austria Ag · VIE:TKA
Telekom Austria — A1 Telekom Austria Group — Q3 2022 Earnings Presentation
29 slides from Telekom Austria's earnings presentation, Oct 18, 2022
Slide 1: Results Presentation Q3 2022 and Q1-Q3 2022
Results Presentation Q3 2022 and Q1-Q3 2022 October 18, 2022
Slide 2: Cautionary statement
Cautionary statement This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as 'believe', 'intend', 'anticipate', 'plan', 'expect' and similar expressions. Actual events may differ materially from those anticipated in these forwa
Slide 3: Operational and financial highlights
Operational and financial highlights 3
Slide 4: Highlights for Q3 2022
Highlights for Q3 2022 Group (in EUR million) Q3 2022 Q3 2021 change Total revenues 1,292 1,205 7.2% Service revenues 1,069 1,013 5.5% EBITDA before restructuring 526 501 4.9% CAPEX 224 191 17.4% Total revenues rose by 7.2%, with service revenue Continued growth in growth in all markets o Mobile
Slide 5: Austria and international markets in Q3 2022
Austria and international markets in Q3 2022 Total revenues Service revenues EBITDA before restructuring (in EUR mn) (in EUR mn) (in EUR mn) +7.2% +5.5% +4.9% 55 1,292 30 1,205 1,069 1,013 6 47 25 526 501 1 Revenues Austria CEE markets Revenues Service Austria CEE markets Service EBITDA Austria CEE
Slide 6: Austria: Top-line growth compensated cost increases; EBITDA growing
Austria: Top-line growth compensated cost increases; EBITDA growing Operational data Total revenues (in EUR mn) Δ: +4.5% Successful upselling in the mobile core business; improved availability of handsets fostered the uptake of high value tariffs 702 673 5G tariffs continued to be sold with a pr
Slide 7: CEE: Service revenue growth successfully converted into EBITDA
CEE: Service revenue growth successfully converted into EBITDA Highlights CEE Total revenues and EBITDA Bulgaria: (in EUR mn; Q3 22%-change vs. PY) Continued upselling to higher broadband speeds in the fixed-line Strong performance of mobile core business and upselling to 5G tariffs +14.1% Fir
Slide 8: Q1-Q3 2022: Free cash flow increased by 7.9% yoy
Q1-Q3 2022: Free cash flow increased by 7.9% yoy (in EUR million) Q3 2022 Q3 2021 change Q1-Q3 2022 Q1-Q3 2021 change EBITDA 517 480 7.8% 1,406 1,306 7.6% Restructuring charges and cost of labor obligations 8 24 -65.8% 46 68 -31.7% Lease paid (principal, interest and prepayments) -38 -37 -3.7% -143
Slide 9: Focus Points
V / VZ Focus Points V A -
Slide 10: Fiber rollout in Austria: A1 plays a key role in enabling secure and sustainable digital infrastructure
Fiber rollout in Austria: A1 plays a key role in enabling secure and sustainable digital infrastructure Biggest fiber network Accelerated smart fiber rollout 68.000km * Plan FY 2022: close to 200k (FTTB+FTTH) units, i.e., doubled Municipalities covered the speed of rollout; good progress so far at l
Slide 11: De-regulation in Austria: Faster, more efficient fiber rollout
De-regulation in Austria: Faster, more efficient fiber rollout Green light for the full, nationwide de-regulation of broadband access markets without obligations Which brings: More pricing flexibility (and price indexation) not only for wholesale broadband access services but also for consumer and
Slide 12: Workforce and electricity costs: First signs of a dynamic increase
Workforce and electricity costs: First signs of a dynamic increase After a long period with hardly any inflation, prices have begun to surge Driven by higher energy prices (Ukraine conflict) and supply chain constraints Most relevant impact for A1 Group: workforce costs and electricity costs W
Slide 13: Belarus: Performance and exposure
Belarus: Performance and exposure No significant changes in business environment in Q3 A1 is the biggest alternative telecommunications company A1 makes a significant contribution to the civil society in Belarus: real-time exchange of information, connection to Western Europe A1 Group, best in class
Slide 14: Outlook for the full year 2022
Outlook for the full year 2022 14
Slide 15: Outlook for the full year 2022
Outlook for the full year 2022 October 18, 2022 Consensus for FY 2022 Total revenues Close to 3% EUR 4,890 mn (+2.9% vs FY ’21) CAPEX Approx. +15% y-o-y EUR 950 mn (+15.0% vs FY ‘21) Total revenue growth expected to be driven by ongoing solid service revenues in basically all markets, strong perfo
Slide 16: Appendix 1
Appendix 1 Additional information on KPIs and financials of A1 Telekom Austria Group 16
Slide 17: Profit and Loss
Profit and Loss (in EUR million) Q3 2022 Q3 2021 change Service Revenues 1,069 1,013 5.5% Equipment Revenues 200 173 15.9% Other operating income 23 19 19.8% Total Revenues 1,292 1,205 7.2% Cost of Service -357 -335 -6.6% Cost of Equipment -193 -168 -14.9% Selling, General & Administrative Expenses
Slide 18: Total revenues & costs and expenses per segment
Total revenues & costs and expenses per segment Total Revenues (in EUR million) Q3 2022 Q3 2021 change Austria 702 673 4.5% Bulgaria 165 145 14.1% Croatia 127 122 4.5% Belarus 123 109 12.8% Slovenia 58 54 7.2% Serbia 94 83 12.8% North Macedonia 36 35 4.1% Corporate & other, eliminations -14 -15 8.5%
Slide 19: Workforce development
Workforce development FTE (Average Period) Q3 2022 Q3 2021 change Austria 6,961 7,231 -3.7% International 10,451 10,266 1.8% Corporate 395 374 5.7% A1 Telekom Austria Group 17,807 17,872 -0.4% FTE (End of Period) Q3 2022 Q3 2021 change Austria 6,946 7,232 -4.0% International 10,647 10,243 3.9% Corpo
Slide 20: Net debt
Net debt Net Debt (excl. Leases) (in EUR million) September 30 2022 December 31 2021 change Long-term Debt 747 1,046 -28.6% Short-term Borrowings 1,240 1,553 -20.2% Cash and Cash Equivalents -172 -534 67.8% Net Debt (excl. Leases) of A1 Telekom Austria Group 1,815 2,065 -12.1% Leverage Ratio 1.1 1.3
Slide 21: Financial debt maturity profile
Financial debt maturity profile as of September 30, 2022 (in EUR mn) 940 747 300 0 0 0 2022* 2023 2024 2025 2026 2027 * Short-term fundings Overview Lines of credit Ratings Undrawn committed S&P: BBB+ Total debt of EUR 1,987 mn credit lines: EUR 1,275 (stable outlook) Average cost of debt of
Slide 22: Reconciliation free cash flow
Reconciliation free cash flow Q1-Q3 2022 Q1-Q3 2021 change FCF after social plans new 502 465 7.9% Social plans new funded 68 65 4.0% Total social plans paid* -72 -74 -2.4% FCF - previously reported 498 457 9.0% * In the previous view, all payments for all social plans (old = granted before January
Slide 23: Appendix 2
Appendix 2 Regulatory Topics 23
Slide 24: Mobile Termination Rates
Mobile Termination Rates Jan Mar Jan April Aug Jul Jan 2018 2019 2020 2020 2020 2021 2022 Austria (EUR) 0.008049 0.007 0.0055 Bulgaria (BGN) 0.014 0.007 0.0055 Croatia (HRK)* 0.047 0.045 0.006 0.0055 MTS 0.025/0.0125 Belarus (BYN)** ВеST 0.018/0.009 Slovenia (EUR) 0.0114 0.00882 0.007 0.0055 Serbia
Slide 25: Upcoming spectrum tenders/prolongations/assignments
Upcoming spectrum tenders/prolongations/assignments* Expected Comments At NRA level there’s preparatory work ongoing for the allocation of 26 GHz Q4 2023/Q1 2024 Austria and the remaining regional licenses of 3,5 GHz in Q4 2023/Q1 2024. A 26 GHz and rest of 3,5 GHz public consultation takes place in
Slide 26: EU Roaming Regulation (Wholesale Tariffs)
EU Roaming Regulation (Wholesale Tariffs) July- Dec 22 2023 2024 2025 2026 2027 2028 Data (€/per GB) 2.00 1.80 1.55 1.30 1.10 1 1 Voice (€Cents/per minute) 2.20 2.20 2.20 1.90 1.90 1.90 1.90 SMS (€Cents/per SMS) 0.40 0.40 0.40 0.30 0.30 0.30 0.30 Results Q3 2022 and Q1-Q3 2022 26
Slide 27: Appendix 3
Appendix 3 Personnel restructuring in Austria 27
Slide 28: Restructuring charges and provision vs. FTE
Restructuring charges and provision vs. FTE Overview restructuring charges FTEs addressed (in EUR million) 2016 2017 2018 2019 2020 2021 Q1 22 Q2 22 Q3 22 2016 2017 2018 2019 2020 2021 Q1 22 Q2 22 Q3 22 Transfer to government 6 3 0 0 0 0 0 0 0 FTE reduction 95 9 70 100 91 95 26 38 19 Social plans 26
Slide 29: End of Presentation
V / VZ End of Presentation 7 Al
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