Telekom Austria Ag · VIE:TKA
Telekom Austria — Q4 2022 Earnings Presentation
20 slides from Telekom Austria's earnings presentation, February 2023
Slide 1: Results for Q4 2022 and FY 2022
Results for Q4 2022 and FY 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: Highlights
A1 Group Highlights • 2022 revenues: +5% passing the € 5 bn mark. Service revenues grew in all markets • 2022 EBITDA: +8% despite rising core OPEX • CAPEX increase mainly driven by accelerated fiber and 5G roll-out activities in Austria • 2022 FCF: +24% demonstrates strong operating performance and
Slide 4: Customer-related information
Customer-related information Mobile subscribers (in thousand) RGUs (in thousand) 2022 ARPU and ARPL (in €) CAGR CAGR 3.0% 0.5% 25.8 25.8 23,897 6,036 6,203 6,148 6,050 6,077 6,204 21,864 22,766 20,658 21,029 21,288 24% 27% 27% 28% 28% 29% 82% 83% 84% 42% 41% 41% 77% 80% 42% 43% 43% 75% 8.1 8.4 35% 3
Slide 5: Segment Austria in Q4 2022
Segment Austria in Q4 2022 Highlights Revenues (€ mn) • Intensified market dynamics before Christmas +4.2% • Mobile: 682 710 − Changed portfolio approach: lower subsidies and lower monthly fees − Solid demand for high-value and SIM-only offers − 5G a standard in all tariffs Q4 2021 Q4 2022 • Fixed:
Slide 6: International segments in Q4 2022
International segments in Q4 2022 Highlights Revenues and EBITDA (€ mn) • All segments with revenue growth − All achieved service revenue growth +22.9% -3.0% (BYN) 187 − All but Belarus and N-Macedonia with equipment revenue growth +5.7% +8.1% 133 +14.1% 122 • Bulgaria: Positive fixed-line and mobil
Slide 7: Group revenues
Group revenues Unless otherwise stated, all amounts in € mn Q4 2022 Q4 2021 FY 2022 FY 2021 Service revenues 1,081 1,012 +6.9% 4,164 3,957 +5.2% Equipment revenues 235 208 +13.1% 752 710 +6.0% Other operating income 22 23 -4.3% 89 82 +8.0% Total revenues 1,338 1,242 +7.7% 5,005 4,748 +5.4% Wireline/
Slide 8: P&L
P&L Unless otherwise stated, all amounts in € mn Q4 2022 Q4 2021 FY 2022 FY 2021 Cost of equipment up due Revenues 1,338 1,242 +7.7% 5,005 4,748 +5.4% to higher equipment sales OPEX (883) (821) +7.5% (3,094) (2,958) +4.6% Electricity costs +21% Restructuring (23) (21) +14.8% (73) (84) -19.5% (FY: +3
Slide 9: Free cash flow
Free cash flow Unless otherwise stated, all amounts in € mn Q4 2022 Q4 2021 FY 2022 FY 2021 Q4 2022 FCF +363% EBITDA 432 400 +8.0% 1,838 1,706 7.7% FY 2022 FCF +24% Restructuring charges, 28 24 +14.8% 74 92 –19.5% cost of labor obligations Despite increased CAPEX Lease paid (principal, (39) (38) +4.
Slide 10: Other financial KPIs
Other financial KPIs (Unless otherwise stated, in € mn) CAPEX (incl. frequencies; € mn) Net debt incl and excl leases (€ mn) Balance sheet (€ mn) +6% -3% 11 00 944 10 00 892 90 0 3,187 80 0 2,832 8,212 8,573 8,345 651 2,400 70 0 2,332 60 0 2,065 50 0 1,719 40 0 2.0x 1.7x 43.0% 30 0 1.3x 34.0% 36.3%
Slide 11: Focus points
Focus points 11 Results presentation: Q4 2022
Slide 12: Focus point: Impact of electricity costs and workforce costs
Focus point: Impact of electricity costs and workforce costs • About 90% of consumed electricity is used for operating the networks. Electricity costs 2022 Electricity costs 2022 Thereof, 60% are used for the mobile network. 2022: 134.2 34.8 2021: 96.4 99.4 • Electricity costs increased by 39% in FY
Slide 13: Focus point: New agreement between main shareholders
Focus point: New agreement between main shareholders • ÖBAG, the Austrian state fund, and América Móvil together hold 79% of Telekom Austria‘s share capital. • A syndicate agreement between the main shareholders would have expired in 2024. • On February 6, 2023, both parties agreed on a new syndicat
Slide 14: Focus point: Status of A1 Towers
Focus point: Status of A1 Towers • Internal separation in all markets excl. Belarus (not in scope) & Austria A1 Towers – geographical overview • Shareholders firmly support spin-off of mobile towers 5.400 • TowerCo to be listed at the Vienna Stock Exchange. − Shareholders will get the same share in
Slide 15: Focus point: Fiber rollout in Austria
Focus point: Fiber rollout in Austria Rollout activities New portfolio • Rollout activities continued • Dedicated organizational unit established − steering of rollout activities under one roof − regional focus • Certain constraints in construction capacity • Within current CAPEX envelope, at around
Slide 16: Outlook
Out look 16 Results presentation: Q4 2022
Slide 17: Guidance '23
Guidance ‘23 Total revenues Around +4% CAPEX (excl. spectrum, M&A) Around € 950 million Dividend proposal of € 0.32/share (previous year: € 0.28) AGM on June 7, 2023 Dividend payment day on June 15, 2023 17 Results presentation: Q4 2022
Slide 18: Appendix
App endix 18 Results presentation: Q4 2022
Slide 19: Financial debt is constantly decreasing
Overview (Dec 31, 2022) Lines of credit (Dec 31, 2022) Financial debt is constantly decreasing Overview (Dec 31, 2022) Lines of credit (Dec 31, 2022) Credit ratings Moody's S&P • Total debt of € 1,869 mn • Total committed lines: € 1,715 mn • Average cost of debt of 2.16% − Average term to maturity:
Slide 20: Hans Lang, Head of Investor Relations
Hans Lang Head of Investor Relations E investor.relations@a1.group M +43 50 664 47500