Magyar Telekom Telecommunications Plc · BET:MTELEKOM
Magyar Telekom Telecommunications — Magyar Telekom — Shareholder Meeting (May 2011)
14 slides from Magyar Telekom Telecommunications's shareholder meeting presentation, May 16, 2011
Slide 1: Annual General Meeting April 12, 2011 - Report of the Board of Directors
Annual General Meeting April 12, 2011 Report of the Board of Directors on the management of Magyar Telekom Plc., on the business operation, on the business policy and on the financial situation of the Company and Magyar Telekom Group in 2010 Christopher Mattheisen Chairman and CEO
Slide 2: Main strategic priorities of MT for 2011-15
2 Main strategic priorities of MT for 2011-15 Based on core beliefs MT set its main priorities for the next strategic timeframe Keep or increase market shares Excel in mobile BB and TV segments Keep positions in high-margin voice segments Innovation to clearly support core business Add new services
Slide 3: Macroeconomic environment
3 Macroeconomic environment New generation access roll-out 5-year plan to cover ~30% of Hungarian households with bandwidth of up to 100 Mbps fiber to ca. 780k & cable Docsis 3.0 to 380k household total investment need of HUF 40 billion Macroeconomic trends Economic indicators influence telecommunic
Slide 4: Infrastructure-based competition and market trends
4 56% 54% 52% 50% 48% 47% 14% 16% 17% 18% 20% 21% 30% 30% 31% 31% 32% 32% 0% 20% 40% 60% 80% 100% Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Analogue CaTV Digital CaTv, IPTV SAT + DVB-T Major determinants – Infrastructure based-competition Pay TV trends Wireline voice traffic trends Broadband s
Slide 5: Strong positions in all segments of the Hungarian market
5 45% 45% 44% 45% 34% 33% 34% 32% 21% 22% 22% 44% 34% 22% 22% 0% 20% 40% 60% 80% 100% 2006 2007 2008 2009 2010 T-Mobile Telenor Vodafone Strong positions in all segments of the Hungarian market Wireline broadband market shares TV market shares 49% 49% 49% 50% 48% 49% 24% 25% 25% 25% 25% 24% 27% 26%
Slide 6: Changing revenue mix and headcount reduction
0% 20% 40% 60% 80% 100% 2005 2009 2012F Fixed voice Mobile voice Fixed BB Mobile non-voice TV SI/IT Other 6 Headcount reduction in 2011 300+ employee redundancies at the parent company by end-2011 severance-related expenses of HUF 3.5bn (majority was accounted in Q4 2010) 4% wage increase for parent
Slide 7: 2010 results – Business Unit analysis
262 808 -1 061 -8 613 -1 821 - 323 -803 -1 883 248 304 240 000 245 000 250 000 255 000 260 000 265 000 643 989 -7 563 -11 718 -3 507 -1 111 -1 664 -8 847 609 579 590 000 600 000 610 000 620 000 630 000 640 000 650 000 7 Underlying EBITDA development Revenue development 2010 results – Business Unit a
Slide 8: New generation access roll-out and infrastructure development
8 New generation access roll-out 5-year plan to cover ~30% of Hungarian households with bandwidth of up to 100 Mbps fiber to ca. 780k & cable Docsis 3.0 to 380k household total investment need of HUF 40 billion 1 200 000 1 400 000 1 600 000 1 800 000 December 2009 December 2010 PSTN lines VoIP VoCab
Slide 9: Consumer Services Business Unit (CBU)
9 Consumer Services Business Unit (CBU) 133,042 125,679 0 50 000 100 000 150 000 2009 2010 HUF million Voice Internet TV Other Fixed line revenues 189,294 189,094 0 50 000 100 000 150 000 200 000 2009 2010 HUF million Voice Non-voice Other Mobile revenues -14% -1% +14% -3% +11% +9% -6% no ch. +8% Re
Slide 10: Business Services Business Unit (BBU) - Financials
10 Business Services Business Unit (BBU) - Financials 170,989 159,271 0 50 000 100 000 150 000 200 000 2009 2010 HUF million Fixed line Mobile SI/IT Revenues -12% -7% -2% -7% 80 307 72 161 0 30 000 60 000 90 000 2009 2010 HUF million EBITDA and margin 47.0% 45.3% -1.7pp -10% Falling voice and data r
Slide 11: International operations
11 International operations Intense competition in the fixed line market competition from altnets, cables and mobile operators positive contribution from revenues related to broadband services number of ADSL lines up by 19% successful launch of IPTV and 2Play/3Play offers Mobile revenue growth thank
Slide 12: Proposal for dividend payment
12 31.6% 32.9% 33.2% 31.7% 29,8% 30,8% 32,7% 70 70 73 70 74 74 74 15% 20% 25% 30% 35% 40% 45% 50% 2004 2005 Q1 2007** 2007 2008 2009 2010 0 20 40 60 80 Net debt ratio Dividend payment Proposal for dividend payment The Board of Directors proposes HUF 50 dividend per share after 2010 earnings for appr
Slide 13: Dividend payment details
13 Dividend payment details The proposed gross dividend is HUF 50 per share with a nominal value of HUF 100 April 22, 2011 detailed announcement will be published on the order of dividend disbursement on the homepage of the Company and the Budapest Stock Exchange May 2, 2011 last day of trading with
Slide 14: Dividend – tax implication
14 Dividend – tax implication Dividends are subject to withholding tax Tax will be deducted before payment Rates and taxes: domestic private individuals: 16% personal income tax foreign private individuals: 16% personal income tax legal entities with Hungarian domicile: 0% legal entities with foreig