Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — OTE Hellenic Telecommunications Organization — Q4 2018 Earnings Presentation
26 slides from Hellenic Telecommunications Organization Sa's earnings presentation, February 2019
Slide 1: OTE Hellenic Telecommunications Organization Q4 2018 Results
OTE Hellenic Telecommunications Organization Q4 2018 Results February 2019
Slide 2: Disclaimer
DISCLAIMER This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to an
Slide 3: OTE Group Overview
OTE Group Overview Revenues Adj. EBITDA Adj. Capex Adj. FCF Q4’2018 €973mn €325mn €226mn €111mn Market Cap €5.1bn Revenues Adj. EBITDA Adj. Capex Adj. FCF 12M’2018 €3,799mn €1,317mn €706mn €345mn Revenues Adj. EBITDA Shareholders* Greece: Greece: DT: 76% 90% 46% Romania: Romania: Hellenic State: 24%
Slide 4: Our Strategy
Our Strategy The 6 Pillars of our strategic plan Best Customer Revenue Lead in Technology Superiority Experience Transformation Core Business • Digital Transformation • Data services monetization • Optical fiber networks: @Customer: • Innovative services launch • COSMOTE brand superiority Massive ro
Slide 5: Digital Transformation
Digital Transformation Simplify, Digitalize, Accelerate for superior Customer Experience & Operational Efficiency Digital @Customer Digitalize Service Digitalize Businesses Digital Interactions Simplify Portfolio Processes & Public Sector One App primary touchpoint Simplify Product & Tariff for
Slide 6: Number 1 in TRI*M in all our markets
Number 1 in TRI*M in all our markets COSMOTE Greece succeeds in remaining #1 in Customer satisfaction (TRI*M index) Strong BRAND “One world better for all” new brand promise Innovative “UFixIt app”: innovative digital care based on devices as interactive service tools with video CUSTOMER CARE co
Slide 7: Best Mobile Network in Greece
Best Mobile Network in Greece COSMOTE Fastest Mobile Network for 2018 Speed Score COSMOTE is Greece’s Speedtest Awards Winner for mobile network speed. 44.02 Carrier By OOKLA in recognition of providing the Fastest speeds for the Q3-Q4 award period Download Speed (Mbps) Upload Speed (Mbps) COSMOTE 1
Slide 8: Capex
Capex Adjusted Capex (€ mn) FY2018: -€75mn or -9.6% yoy 900 782 26.0% 250 226 800 706 26.0% 700 650 200 21.0% 170 169 600 150 23.2% 21.0% 150 500 20.6% 400 18.6% 16.0% 18.7% 17.9% 16.0% 100 300 15.4% 11.0% 200 11.0% 50 100 0 6.0% 0 6.0% Q1'18 Q2'18 Q3'18 Q4'18 FY 2017 FY 2018 FY 2019 Guidance Adjust
Slide 9: Cash Flow
Cash Flow Adjusted FCF (€ mn) Q4’18: +€15mn yoy 1,064 1,100 903 342 308 308 450 273 345 92 174 148 175 111 96 95 50 9 (11) (28) (706) (650) (782) (209) (167) (226) (185) (176) (223) (213) FY 2017 FY 2018 FY 2019 Q1'17Guidance Q2'17 Q3'17 Q4'17 Q4'17 Q1'18 Q4'18 Adj. Net Operating CF Adjusted Capex A
Slide 10: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€ mn) 0.8x 0.7x 0.8x 0.7x 0.6x 0.6x 0.5x 0.4x Net Debt/EBITDA 0.5x 0.6x 0.6x 0.3x 0.4x 0.3x 0.2x 0.1x 0.4x 0.6x 0.4x 0.6x 0.5x 0.6x 0.5x 0.6x 0.2x 0.1x 0.0x 0.5x On Feb 07, 2018, OTE PLC 0.0x 2,062 2,042 1,951 2,041 2,041 1,514 1,515 fully repaid at maturity 1,82
Slide 11: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Estimated 2019 Payout (€mn) 0.50 0.46 0.45 Total 0.40 0.35 350 0.35 Remuneration 0.30 0.25 0.20 Share Buy Back 129 0.15 +31% 0.10 0.05 Dividends 221 0.00 FY 2017 FY 2018 Dividend per Share (€) Shareholder Remuneration Policy 100% FCF Distributio
Slide 12: Greece
Greece OTE | Q4 2018 Results| 12
Slide 13: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€ mn) Adj. EBITDA (€ mn) 42.0% 40.9% 41.0% 39.9% 2,846 2,888 40.0% 50.0% 3,000 50.0% 39.0% 48.0% 40.9% 42.5% 40.8% 1,181 46.0% 39.2% 900 754 300 50. 40.0% 38.0% 711 227 736 30.0% 1,135 500 44.0% 2,500 800 686 225 250 233 231 1,200 30.0% 37.0% 42.0% 450 40.
Slide 14: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 1,000 903 916 50.0%1,000 942 926 50.0% 50.0% 50.0% 900 300 40.0% 900 300 40.0% 300 300 257 40.0% 40.0% 225 225 227 227 233 233 231 231 234 800 30.0% 800 700 250 250 30.0% 20.0% 700 250 250 225 213 227 233 222 231
Slide 15: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed-Line Market Evolution (000) OTE Fixed Lines at 2,651k 4,748 4,743 4,739 4,757 4,766 4,766 4,759 4,780 44% 45% 45% 45% 45% 44% 44% 45% Retail Customers +0.4% y-o-y 56% 55% 55% 55% 55% 56% 56% 55% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 OTE Market Share Competitors Ma
Slide 16: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) Market Penetration* OTE Broadband Lines at 1,896k 120% 3,790 3,841 3,865 3,887 3,954 3,675 3,706 3,739 100% 78% 79% 80% 81% 81% 82% 83% 77% 80% 55% 55% 54% 54% 53% 53% 52% 52% 60% 67% 68% 69% 70% 72% 63% 64% 65% 40% 45% 45% 46% 46% 47% 47% 48%
Slide 17: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) 580 531 Penetration of high-speed Fiber Broadband service at 483 100.0% 480 449 28.0% of retail broadband base 405 354 80.0% 380 280 311 At December 31, total number of VDSL/Vectoring 252 60.0% 280 61.6% 60.6% 60.5% activated cabinets amounted to c
Slide 18: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 600 517 525 528 526 534 542 80 505 504 +3.3% y-o-y Increase in Customer base 500 60 400 40 300 20 COSMOTE TV added 8k in the quarter 200 0 13 8 8 2 8 3 100 (1) (2) -20 Champions League & Europa League 2018-2021 0 -40 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'1
Slide 19: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€ mn) Avg. Data usage* (GB) 33% of Service Revenues 2.5 2.3 90 79 45.0% 1.9 2.0 74 40.0% 2.0 1.8 70 80 67 1.6 1.7 70 63 64 35.0% 55 58 1.5 1.3 60 30.0% 50 25.0% 1.1 1.0 40 20.0% 22.8% +23% 30 20.8% 20.4% 15.0% 18.7% 17.7% 18.6% 17.8% 0.5 20 15.9% 10.0% 10 5.0% 0.0
Slide 20: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) COSMOTE Apps Active users penetration*( %) 90% 90% 80% 80% 66% 67% 68% 68% 70% 63% 64% 70% 64% 59% 59% 56% 60% 50% 60% 50% 50% 45% 47% 36% 39% 40% 40% 32% 30% +4pp 30% +19pp 20% 20% 10% 10% 0% 0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'17
Slide 21: Romania
Romania OTE | Q4 2018 Results| 21
Slide 22: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€ mn) Adj. EBITDA (€ mn) 500 450 266 17.0% 273 16.5% 303 293 280 80.0% 400 60.0% 350 300 16.0% 14.6% 40.0% 0.0%15.7% 20.0% 18.2% 972 933 250 200 150 100 50 15.0% 20.0% 18.0% 70 14.6% -20.0% -40.0% -60.0% -80.0% 40.0% 1,000 300 0 50.0% 16.0% -100.0% 242 30
Slide 23: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 100 70.0% 50.0% 350 400 70.0% 50 300 288 90 50.0% 40.0% 335 322 233 100 300 300 225 227 231 30.0% 350 82225 82 227 82 233 50.0% 40 247 80 66 76 231 250 30 250 70 63 60 59 30.0% 20.0% 300 80 250 20 30.0% 200 10.0
Slide 24: Romania – Fixed KPIs
Romania – Fixed KPIs Voice Lines* (000) Broadband Lines* (000) TV Subscribers (000) Q4’18: +2.1% yoy Q4’18: -3.1 % yoy Q4’18: -1.9% yoy Broadband lines Fixed lines 2,500 TV Subscribers 2,500 3,000 2,000 2,000 2,128 2,118 2,101 2,098 2,094 2,097 2,112 2,142 2,500 1,500 1,457 1,471 1,473 1,470 1,464 1
Slide 25: Romania – Mobile KPIs
Romania – Mobile KPIs 35 Data Revenues (€ mn) Data Revenues as % of Service Revenues 80.0% 30 40% Data Revenues 25 60.0% 20 19 35% 29% 20 18 18 17 18 28% 40.0% 30% 24% 24% 24% 15 13 13 41.5% 22% 37.0% 34.8% 25% 32.2% 20.0% 18% 18% 20% 10 0.0% 5 9.3% 5.9% 15% -0.6% 0.2% 10% 0 -20.0% Q1'17 Q2'17 Q3'17
Slide 26: Thank you
Thank you For more information please contact OTE Group Investor Relations: Tel: +30 210 611 1574 Fax: +30 210 611 1030 E-mail: iroffice@ote.gr or visit: https://www.cosmote.gr/fixed/en/corporate/ir OTE | Q4 2018 Results| 26
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