Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q4 2019 Earnings Presentation
25 slides from Hellenic Telecommunications Organization Sa's earnings presentation, February 2020
Slide 1: OTE Hellenic Telecommunications Organization Q4 2019 Results
OTE Hellenic Telecommunications Organization Q4 2019 Results February 2020
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 Q4’2019 €1,041mn €356mn €175mn €159mn Market Cap €6.6bn Revenues Adj. EBITDA Adj. Capex Adj. FCF 12M’2019 €3,908mn 1,364mn €662mn €488mn Revenues Adj. EBITDA Shareholders* Greece: Greece: DT: 75% 88% 46% Romania: Romania: Hellenic State: 25
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 • Continue Optical Fiber • Data services monetization @Customer: • COSMOTE brand superiority Networks deployment - Οmni-channel • Inn
Slide 5: Digital Transformation
Digital Transformation Our goal: to be the leader for Digital Transformation in Greece and a role–model in Europe with superior Customer Experience & Operational Efficiency Digitalize Service Digital Interactions Simplify Portfolio Processes Digital One App primary touchpoint for Order2Bill: sel
Slide 6: Best Mobile Network in Greece
Best Mobile Network in Greece “Best in Test” certification, for sixth consecutive 2XSPEED in Big Cities year, for its mobile internet and voice services in 3XSPEED on Main Roads Greece compared to the nearest ranked operator Speed Score COSMOTE Fastest Mobile Network for 2017,2018 and 2019 42.09 Dow
Slide 7: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Estimated 2020 Payout (€mn) 0.56 0.55 0.54 0.52 Total Renumeration 400 0.50 0.48 0.46 Share Buy Back 0.46 141 +19.6% 0.44 0.42 Dividends 259 0.40 FY 2018 FY 2019 Dividend per Share (€) Shareholder Remuneration Policy 100% FCF Distribution throug
Slide 8: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€ mn) (IFRS amounts) 0.8x 0.6x 0.4x 0.2x 0.6x 0.6x 0.5x 0.6x 0.5x Net Debt/EBITDA 0.0x 2,069 1,829 1,733 1,731 1,713 On September 24, 2019, OTE PLC issued a , 739 732 602 773 Euro 500.0 mn, 7-year bond, with an annual 649 coupon of 0.875%. (1,090) (1,001) (1,129)
Slide 9: Cash Flow
Cash Flow Adjusted FCF* (€ mn) Q4’19: +€48mn yoy 1,150 1,210 1,051 337 334 308 25% growth 273 in Adjusted FCF 610 174spectrum & restructuring) (ex 148 175 159 488 111 345 expected in 2020 95 50 9 (11) (28) (662) (600) (185) (176) (167) (175) (706) (223) (213) (226) FY 2018 FY 2019 FY 2020 Q1'17 Q2'1
Slide 10: Capex
Capex Adjusted Capex (€ mn) FY2019: -€44mn or -6.3% yoy 706 250 226 707 26.0% 200 176 178 175 687 200 26.0% 180 176 178 26.0% 662 165 167 667 156 23.2% 160 21.0% 150 21.0% 140 133 647 21.0% 627 120 19.4% 18.8% 18.2% 17.7% 16.0% 18.6% 600 100 100 19.4% 607 16.0% 16.0% 18.8% 16.0% 587 16.9% 80 16.8% 1
Slide 11: Greece
Greece OTE | Q4 2019 Results| 11
Slide 12: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 50.0% 48.0% 46.0% 44.0% 40.9% 41.5% 50.0% 2,943 42.0% 48.0% 44.0% 3,000 2,888 40.0% 38.0% 46.0% 44.0% 40.8% 40.6% 40.3% 1,000 35.0% 36.0% 1,181 1,220 42.0% 40.0% 1,200 FY 2018 FY 2019 38.0% 36.0% 450 2,500 771 289 75
Slide 13: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 1,000 916 936 400 955 1,000 926 900 350 289 35.0% 900 400 289 300 100.0% 300 100.0% 35.0% 244 800 231 300 80.0% 25.0% 800 350 231 244 80.0% 700 250 217 231 233 237 23460.0% 250 217 250 700 300 265 25.0% 60.0% 19.
Slide 14: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,646k 4,766 4,766 4,759 4,779 4,785 4,782 4,771 4,795 45% 44% 44% 45% 45% 45% 45% 45% 55% 56% 56% 55% 55% 55% 55% 55% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 OTE Market Share Competitors Market Share Net Additions (00
Slide 15: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) Market Penetration OTE Broadband Lines at 2,006k 3,955 3,987 4,017 4,042 4,095 3,841 3,865 3,887 120% 100% 81% 82% 83% 83% 84% 85% 85% 81% 80% 53% 53% 52% 52% 52% 51% 51% 51% 60% 72% 73% 74% 75% 76% 68% 69% 70% 40% 47% 47% 48% 48% 48% 49% 49%
Slide 16: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) 742 Penetration of high-speed Fiber Broadband service at 750 695 650 586 646 100.0% 37.0% of retail broadband base 531 483 At December 31, total number of VDSL/Vectoring 550 80.0% 449 450 405 350 60.0% activated cabinets amounted to 16.0k 60.6% 60.
Slide 17: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 700 100 534 542 540 544 549 555 600 528 526 80 500 60 400 40 Cosmote TV launched personalized OTT service 300 20 200 0 8 8 6 +2.4% y-o-y Increase in Customer base 3 3 5 100 (2) (2) -20 0 -40 Champions League , Europa League and Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q
Slide 18: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€ mn) Avg.Data usage* (GB) 41% of Service Revenues 96 97 3.5 3.1 3.2 100 45.0% 90 86 3.0 79 76 40.0% 2.4 74 2.3 70 80 2.5 35.0% 2.0 2.1 70 64 1.8 30.0% 2.0 1.7 60 32.1% 25.0% 1.5 50 20.0% 1.0 +63% 22.2% 40 20.4% 21.4% 15.0% 30 18.6% 17.8% 18.8% 0.5 20 15.9% 10.0%
Slide 19: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) COSMOTE Apps Active users penetration* (%) 90% 90% 80% 76% 80% 70% 70% 71% 72% 73% 65% 66% 67% 66% 67% 68% 70% 64% 70% 60% 56% 60% 47% 50% 50% 50% 40% 40% 30% +3pp 30% +12pp 20% 20% 10% 10% 0% 0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'18
Slide 20: Romania
Romania OTE | Q4 2019 Results| 20
Slide 21: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 15.0% 14.9% 14.8% 14.7% 25.0% 17.9% 1,200 14.6% 20.0% 14.8% 14.7% 200 12.1% 12.9% 933 980 14.6% 180 60 15.0% 1,000 14.5% 10.0% 289289 160 14.4% 136 144 5.0% 60 52 260.0% 300 100.0% 300 100.0% 50 800 231 244 231 244
Slide 22: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 300 247 350 322 310 250 229 70 289 90 76 79 80 120.0% 59 75 300 58 56 55 100.0% 120.0% 300 80 100.0% 200 60 231 244 80.0% 100.0% 70 250 217 50 60.0% 80.0% 250 60 80.0% 150 200 19.3% 40.0% 60.0% 60.0% -7.3% 40 7.
Slide 23: Romania – Fixed KPIs
Romania – Fixed KPIs Voice Lines* (000) Broadband Lines* (000) TV Subscribers (000) Q4’19: -3.4% yoy Q4’19: -6.6% yoy Q4’19: -8.5% yoy 3,000 3,000 Broadband lines 3,000 TV Subscribers 2,500 2,094 2,097 2,112 2,142 2,137 2,115 2,093 2,069 2,500 2,500 2,000 2,000 2,000 1,464 1,463 1,454 1,443 1,409 1,
Slide 24: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 30 60% Data Revenues 26 24 80.0% 25 50% 20 21 41% 19 19 60.0% 36% 20 17 18 40% 29% 29% 31% 40.0% 28% 15 30% 24% 24% 41.5% 34.8% 35.0% 20.0% 10 20% 22.2% 15.2% 5 9.3% 10.6% 0.0% 10% 5.9% 0 -20.0% 0% Q1'18 Q2'18 Q3'18 Q4
Slide 25: 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 2019 Results| 25
Hellenic Telecommunications Organization (OTE) — Q4 2019 Earnings Presentation on 6ix