Empresa Nacional De Telecomunicaciones S.a. · BCS:ENTEL
Empresa Nacional De Telecomunicaciones — Entel — 24th Annual Latin America Conference hosted by Citi 2016
34 slides from Empresa Nacional De Telecomunicaciones's conference presentation, March 2016
Slide 1: 24th Annual Latin America Conference
24th Annual Latin America Conference Host by Citi New York / March 10th – 11th / 2016 Entel Chile_
Slide 2: Table of Contents
TABLE OF CON_ TENTS Entel and the Chilean telecom market Company overview Entel´s plans in Peru Financial overview Notes Financial figures reported under IFRS standards. Value in US$, exchange rate as of December 2015: $710.16 Entel Group_
Slide 3: Entel and the Chilean telecom market
Entel and the Chilean telecom market_ Entel Group_
Slide 4: Chile and telecommunications sector
Chile and telecommunications sector_ TELECOMMUNICATIONS GDP / TOTAL GDP 3.00% 2.60% CHILEAN TELECOM MARKET YEAR 2015 2.47% 2.50% 2.29% 2.21% Telco Market Size (Revenues): 1.98% 1.73% US$ 7.3 bn (+3% vs 2014) 2.00% 1.65% 1.72% 1.42% 1.50% 1.15% 0.99% Pay TV, 14% 1.00% (+10% vs 2014) 0.50% IT Services
Slide 5: Telecom Market growth opportunities
Telecom Market_ growth opportunities SMARTPHONES & DATA PLANS PENETRATION NEW TARIFF STRUCTURE (% total subscribers) 89% 84% 79% 73% 66% 55% 53% 63% 51% 42% 40% 52% 30% 40% 24% 25% 15% 8% 2011 2012 2013 2014 2015 Multi devices with Entel postpaid smartphones penetration charge over Mobile data penet
Slide 6: Company overview
Company Company over_view over_view Entel Group Entel Group_ 6
Slide 7: Entel is one of the largest publicly listed companies in Chile
Entel is one of the largest publicly listed companies in Chile_ ENTEL SHAREHOLDER STRUCTURE / As of February 2016 All Others, Listed on Santiago Stock Exchange, shares part of IPSA Index. 33.2% Market Capitalization (2): US$ 2,019 MM. Average Daily Volume (3): US$ 2.1 MM. Altel Inversiones Ltda.(1),
Slide 8: Entel Group reaching 13 million clients with integrated services
Entel Group_reaching 13 million clients with integrated services Total 2015 Revenue (*): USD 2,525 MM Total 2015 EBITDA: USD 502 MM CHILE MOBILE: 64% CHILE FIXED LINE: 20% AMP & Call Center: 3% PERU MOBILE: 13% CHILE MOBILE CHILE FIXED LINE AMERICATEL PERU PERU MOBILE SERVICES SERVICES SERVICES Reve
Slide 9: Entel Snapshot
Entel “Snapshot”_ Mobile Total Revenue Mobile Data Subscribers Share Penetration Industry Revenue Data over 12.9 million Postpaid base 79% Share: 29.1% 12,900 11,985 11,840 CHILE DATA PLANS 80% 3,129 (% over postpaid base) 1,556 1,738 996 861 • Entel Mobile Chile: 778 • Revenue Share Serv: 43% 2,840
Slide 10: Entel Snapshot
Entel “Snapshot”_ CAPEX 2015 Spectrum Infrastructure Chile: 150MHz Chile: 5,817 POPs US$ 656 MM Peru: 156.5MHz Peru: 2,586 POPs CAPEX/Revenue Chile(1) 2012 2015 2012 2015 Total: 24% +24% 5,817 4,676 +3x Mobile Peru 8.6 pp 2012 2015 80 MHz 150 MHz 2,586 805 4G Mandatory 2.3 pp Chile Peru Peru(2) • In
Slide 11: Entel has a solid and growing position in the telecommunications market
Entel has a solid and growing position in the telecommunications market_ 2015 REVENUE DISTRIBUTION BY SERVICES Leading provider of a wide range of integrated solutions for telecommunications and IT outsourced services. 1% 1% Leadership position in the main markets where the Company 1% 5% 5% particip
Slide 12: Entel is committed to Social Responsibility
Entel is committed to Social Responsibility_ Fourth biannual Social Responsibility is Sustainability Report an essential part prepared under the of Entel’s corporate Global Reporting management. Initiative (GRI). …In order to ensure Listen, understand and long term sustainability, meet expectations
Slide 13: Entel is a leading brand in the Chilean telecommunications industry
Entel is a leading brand in the Chilean telecommunications industry_ TOP OF MIND For 13 consecutive years, has been ranked first place in mobile services customer satisfaction index. 44% Strong partnerships allows 25% 25% Entel to be in the commercial and 3% technological world class ENTEL COMPANY B
Slide 14: Entel's services are provided through its extensive network and infrastructure
Entel’s services are provided through its extensive network and infrastructure_ Arica Iquique mobile_ Antofagasta network Copiapó fiber optic 20 MHz in 900 MHz band. 60 MHz in 1,900 MHz band. 40 MHz in 2,600 MHz band. La Serena transport 30 MHz in 700 MHz band. Vaparaíso Rancagua Santiago network 5,
Slide 15: Fixed access network with presence across the country
...with presence across the country_ Arica Iquique fixed Antofagasta access Copiapó network La Serena IP / MPLS ACCESS NETWORK Vaparaíso Santiago XDSL ACCESS NETWORK Rancagua Talca THE LARGEST DATA CENTER GPON ACCESS NETWORK Concepción INFRASTRUCTURE PROVIDER NGN ACCESS Temuco • More than 7,500 m2 i
Slide 16: Our value proposition
Our value proposition A clear and convergent fixed & mobile offer The best communication service Entel Group_
Slide 17: Business focus
Business focus_ Revenue Growth. Entel Perú & Fixed Services in SME, Entel Hogar and IT Services in Corporate segment in Chile Revenue Share maintenance in mature markets. Data conversion. CAPEX/OPEX efficiency in mature markets. Cash generation. Key enablers for Experience and market positioning: Hu
Slide 18: Business segments
Business_ segments Our organization and business approach Entel Group_ 18
Slide 19: Mobile Services and Consumer Chile Segment
Mobile Services and Consumer Chile Segment_ Top position among high value clients MOBILE SERVICES CONSUMER SEGMENT 60 MHz in the 1,900 MHz band, 40 MHz in the Leader in high value segments, with an extensive 2,600 band, 20 MHz in the 900 band and 30 MHz offering for mobile data and voice services. i
Slide 20: Corporate & SME Chile
Corporate & SME Chile, with a solid position in mobile, data and IT outsourcing services _ CORPORATE & SME SEGMENT Ciudad de los Valles data center is Integrated offerings including IT / telco; fixed & mobile connected to a network of eight data convergence; bundling of solutions over IP networks. c
Slide 21: Perú
Perú_ Entel Perú_ Americatel_ Entel Group_ 21
Slide 22: Entel is one of the leading brands in Chile and in Perú
Entel is one of the leading brands in the Chilean telecommunications industry....and in Perú we are in the same track_ Entel Perú was awarded by ANDA (Peruvian National Association of Advertisers) the first place in the “Integrated Communication Services” category, for its high-quality service and o
Slide 23: Development of a State of the Art network for Voice and Data
Development of a “ State of the Art “ network for Voice and Data will allow Entel extend the coverage and capacity in the country_ mobile_ network Iquitos Talara 156.5 MHz Piura Cajamarca Trujillo Huaraz +2,586 POP LIMA Puerto Maldonado Ica Cusco Puno Arequipa Tacna POP as of December 2015 Entel Gro
Slide 24: Entel Perú: 2015 continued rolling out its strategy
Entel Perú_ 2015 with continued successfully rolling out its strategy STRATEGIC FOCUS The mobile operation in Peru continued to deliver on its overall strategy with an attractive and value proposition. Continued strengthening its technical capabilities by expanding the network, considered the most m
Slide 25: Summary of the Entel Perú challenges
Summary of the Entel Perú_ challenges • Consolidate a unique experience (usage experience, segmentation, multichannel). • Continue to successfully build the Entel brand projecting “closeness” and building long term relationships. • Consolidate sales growth, enhancing opportunities such as portabilit
Slide 26: Americatel Perú: Focus in SME segment in Lima
Americatel Perú_Focus in SME segment in Lima GENERAL VISION STRATEGIC FOCUS Provide telecom services via an integrated Change in business composition, increasing offering (voice, data, Internet services) in the services on own networks in Lima (WiMax and enterprise segment within the Lima Area, over
Slide 27: Financial overview
Financial over_view Results and investment Entel Group_
Slide 28: Evolution reflects the expansion of the mobile business in Peru
Evolution reflects the expansion of the mobile business in Peru_ CONSOLIDATED FIGURES (US$ Million) Cagr 13/15 REVENUES (*) EBITDA AND EBITDA MARGIN Var. 15/14 4% 7% -13% 2,525 2,315 2,349 -4% 658 521 502 28% 22% 20% 2013 2014 2015 2013 2014 2015 RESULTS FROM OPERATING ACTIVITIES PROFIT -39% 307 -36
Slide 29: Solid performance in Chile (w/o Mobile Peru)
Solid performance in Chile (w/o Mobile Peru)_ CONSOLIDTATED FIGURES (US$ Million) Var. 2015/2014 REVENUES EBITDA AND EBITDA MARGIN OPERATING INCOME 3% 2,136 2,197 10% 740 8% 675 364 395 34% 32% 2014 2015 2014 2015 2014 2015 Entel Group_ 29
Slide 30: Historical Capex
Investment plan driven primarily by expansion of mobile services in Peru & Chile and Data/IT_ CAPEX STRATEGY CAPEX BREAKDOWN AS OF DECEMBER 2015 Bulk of the Capex is determined by demand. Others Continue deploying Mobile Peru network. 7% TOTAL = US$ 656 MILLION Data / IT Entel Perú Focused on mainta
Slide 31: Cash flow reflects the expansion in the mobile business in Peru
Cash flow reflects the expansion in the mobile business in Peru_ Cash_ flow 204 39 (US$ Million) -191 -265 Cash Flow is defined as: + EBITDA - Capex - Net financial expenses 2012 2013 2014 2015 Entel Group_ 31
Slide 32: Liquidity and debt ratios trends
Liquidity and debt ratios trends reflects the expansion in Peru_ 2013 2014 2015 Liquidity Ratio (Current assets / Current liabilities) 1.1 1.5 1.2 EBITDA/Net Financial expenses (LTM)* (>2.5) 31.34 9.19 6.63 Net Debt/ EBITDA (LTM)* (<4.0) 1.71 2.62 3.56 Total liabilities /(Equity+ non controlling int
Slide 33: Debt maturity profile as of December 2015
Debt maturity profile as of December 2015_ Figures in US$ Million 2013 US Bond 400 400 Jun-13 2014 US Bond 2014 CL Bond Dec2014 Bank Loan 333 333 333 Others 253 June2014 150 150 2 3 1 Total Gross Debt = US$ 2,360 million as of December, 2015. Entel Group_ 33
Slide 34: Thank you
thank you ;) cdelacerda@entel.cl Costanera Sur 2760 • Las Condes Santiago • Chile Visit our website www.entel.cl Entel Group_
Entel — 24th Annual Latin America Conference hosted by Citi 2016 on 6ix