Telekom Austria Ag · VIE:TKA
Telekom Austria — Investor Presentation (February 2025)
38 slides from Telekom Austria's investor presentation, February 2025
Slide 1: Investor Presentation February 2025
Investor Presentation February 2025
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 or by ›outlook‹. Actual events may differ materially from those anticipate
Slide 3: Promoting a more sustainable way of life through digitalization
Promoting a more sustainable way of life through digitalization • Leading telco across CEE • System-critical infrastructure: fixed-line and mobile networks, data centers • Leverage the potential provided by megatrend digitalization • Strong market positions, award winning network and top-rated brand
Slide 4: A1 at a glance
A1 at a glance Former Austrian incumbent and a platform for growth in Eastern Europe Belarus 5.4 bn 2.0 bn 37 % Total revenues EBITDA EBITDA margin Austria Slovenia Croatia 27.1 mn 6.4 mn 40 EurC Serbia Bulgaria Fixed RGUs Dividend North Wireless subscribers Macedonia ~12% CAGR last 6 years #1 #3 0.
Slide 5: Well-balanced performance across geographic footprint
Well-balanced performance across geographic footprint Revenue split (FY 2024) Growth driver CEE EBITDA split (FY 2024) Bulgaria 16% YoY Growth rate 2024 Bulgaria 17% Croatia Croatia 11% 11% Belarus 5.6% +7.7% Belarus 9% 10% CAGR Slovenia Slovenia 4% +1.7% 3% Serbia CAGR Serbia 8% 0.3% 7% Austria N-M
Slide 6: Financials
Financials 6
Slide 7: Financial performance
Financial performance (Unless otherwise stated, in € mn) Revenues EBITDA Free cash flow +3% +5% +62% 5,005 5,251 5,413 1,924 2,021 603 575 1,838 354 36.7% 36.6% 37.3% 2022 2023 2024 2022 2023 2024 2022 2023 2024 EBITDA margin CAPEX (incl frequencies) Net debt Balance sheet & equity ratio -21% 9,557
Slide 8: Sustainable growth and strong free cash flow
Sustainable growth and strong free cash flow Revenues consistently growing EBITDA increased significantly Robust free cash flow CAGR CAGR Avg. 4.4% 6.4% € 505 mn/yr 5,005 5,251 5,413 1,924 2,021 4,549 4,748 1,706 1,838 603 1,577 575 504 487 354 35% 36% 37% 37% 37% 11% 12% 11% 10% 7% 2020 2021 2022 2
Slide 9: Sustainably rising dividend and strong deleveraging as solid foundation for future growth
Sustainably rising dividend and strong deleveraging as solid foundation for future growth Sustainable dividend policy Net debt reduction Dividend per share, in EURc >12% 0.95 0.97 0.94 CAGR EPS 0.76 0.80 0.91 0.73 0.58 0.68 0.52 FCF/ 0.58 share 2.0 0.53 0.4 1.7 0.36 0.49 0.36 0.32 1.3 1.3 40 0.25 0.
Slide 10: Strong growth performance within peer group
Strong growth performance within peer group Revenues, CAGR EBITDAaL adj., CAGR Standard & Poor’s rating 2019-2023 2021-2023 2019-2023 2021-2023 A1 Group +3.6% +5.2% +5.0% +5.3% Telia (SEK) AA+ Orange AA AA- Telenor (NOK) A+ A Proximus A- A1 Group Telenor + Swisscom + Telefonica BBB+ Orange DT OTE Te
Slide 11: Performance full year 2024
Performance full year 2024 5,413mEUR 4,502mEUR 2,021mEUR 575mEUR +3.1% +3.5% +5.1% +62.5% Total revenues Service Revenues EBITDA Free cash flow Service revenue growth drivers, YTD Total revenues growth – Group and International, YTD +3.5% +7% in CCY +10% in CCY 5.6% 9.5% 8.6% 4,502 3.9% 0.3% 1.6% 4,
Slide 12: Strategy
Strategy 12
Slide 13: Strategy follows the vision: Empowering digital life
Strategy follows the vision: Empowering digital life Evolve the core Explore the new Transparency & Growth & Autonomy Inspiration • From network to • Scaling-up the portfolio connectivity plus Take Learn & • Develop eco-systems and • From product driven to ownership innovate partnerships to enrich c
Slide 14: Key performance drivers
Key performance drivers IT services e.g., applications, data centers, analytics Security data/mobile/object security Communication e.g., private branch exchange, healthcare Unified B2B Integrated sector solutions Brand Digital e.g., smart metering, IoT Commercial One One to all approach Upselling th
Slide 15: Unfolding our business opportunities
Unfolding our business opportunities Evolve the CORE to #1 From Product to From Network to Customer Journey Connectivity @Scale Plus 15
Slide 16: Market Shares
Market Shares Austria Bulgaria Croatia Belarus Serbia Slovenia N.-Macedonia 40% 28% 28% Mobile 35% 37% 43% 52% #1/3 #2/3 #2/3 #2/3 #3/3 #2/4 #1/2 2% 12% 8% 55% 35% 32% 29% Fix #1/3 #2/2 #2/3 #2/2 2/2 #4/4 #2/3 Mobile and fixed market positions both based on Service Revenues Market Shares per Q3 2024
Slide 17: A1 Austria | Multi-technology strategy and diligent CAPEX spend
A1 Austria | Multi-technology strategy and diligent CAPEX spend 01 Fragmented market 02 High rollout costs 03 Mobile substitution Reinforced partnering Reprioritized rollout Fixed wireless access Targeted partnering with Lower rollout costs and Provide ‘fixed-like’ mobile selective networks increase
Slide 18: A1 Austria | Prioritizing sustainable growth over rapid deployment
A1 Austria | Prioritizing sustainable growth over rapid deployment Fibre 5G • Fixed | Monetizing investments by improving connect/pass 850k 86% ratio • Mobile | 5G | From pop coverage to capacity increase FTTP Homes passed YE24 Pop. Coverage YE24 Growth in advanced BB RGUs & ARPL € 38 X- & Up-sellin
Slide 19: Unfolding the opportunities
Draft for internal discussion Unfolding the opportunities Unfolding our business opportunities Evolve the CORE Evolve Extend Expand Enable Push Scale CORE B2B SME SME Financial Financial the #1 to #1 Digital Services (ICT) Business Services Services 19 19
Slide 20: B2B Digital Services Acceleration
B2B Digital Services Acceleration Accelerate growth in Replicate expertise to Large Business Small/Med Business (SME) 15% standardized 45% modularized ~99% 58% Increase in Enterprises Level of digitalisation* cyber attacks 40% customized & outsourced SME products and services for A1 footprint + DACH
Slide 21: Gain scale to further grow
Gain scale to further grow … investments in the markets are needed with a standardized delivery AT BLR BLG CRO A1D MAC SLO SRB • Build on our local sales Customer facing Sales asset LOCAL ALONG CUSTOMER JOURNEYS Product Ideation & Marketing • Investments in the markets Customer Service & Field Servi
Slide 22: Sustainability
Sustainability THE USE BY TELEKOM AUSTRIA OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND Source Sustainalytics. THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS Sustainalytics, a Morningstar OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A company, is a leading independent SPONSORSHIP,
Slide 23: CO2 emissions, Energy efficiency, Circularity, E-Waste
CO2 emissions Energy efficiency Circularity E-Waste Net-Zero goal by 2030 80% goal 50% goal Zero-equipment to landfill Scope 1&2: -90% Increase energy efficiency to By 2030, the takeback of devices* Sustainable treatment* of 100% of Scope 3: -60% reduction 80% by 2030 (BY 2019) is increased up to 50
Slide 24: The share
The share 24
Slide 25: Shareholder structure
Shareholder structure Two strong shareholders ÖBAG (Österreichische Beteiligungs AG) • ÖBAG: independent holding company of state assets. ÖBAG 28.4% Mission is to preserve and grow its investments for generations. • Investment portfolio includes also: OMV, Verbund, Retail Post, Casinos Austria, etc.
Slide 26: Syndicate agreement between América Móvil and ÖBAG
Syndicate agreement between América Móvil and ÖBAG On February 6, 2023, both parties agreed on a new syndicate agreement with a term of 10 years. The publicly known cornerstones of this agreement are the following: General • Headquarters to remain in Austria • Commitment to the listing at the Vienna
Slide 27: Share price
Share price AT0000720008 Tela.VI TKA AV • Shares outstanding: 664,084,841 • Listing: Vienna Stock Exchange Institution Rating Price (€) AlphaValue/Baader Europe Buy 11.10 Bank Pekao Hold 9.70 Barclays Hold 8.50 Bernstein Buy 10.80 Citigroup Hold 8.30 Erste Group Bank Buy 9.40 HSBC Hold 8.60 JP Morga
Slide 28: Outlook
Outlook Guidance 2025
Slide 29: Guidance 2025
Guidance 2025 Revenues CAPEX ex. spectrum 2-3% increase p.a. Around € 850 million Outlook based on current inflation and exchange rate expectations 29
Slide 30: Capital allocation follows conservative financial policy for long-term value creation
Capital allocation follows conservative financial policy for long-term value creation within rating framework Ambition to be A- rated (currently: A-/A3) Conservative Sustainable Value-accretive financial policy dividend policy M&A Developing in line with operational I. In market consolidation Ambiti
Slide 31: Investment Case Telekom Austria
Investment Case Telekom Austria Leading telco across CEE • Among top 2 mobile operators in 6 out of 7 core markets • 30 million customers in Europe • >80% of Group EBITDA in investment-grade rated countries Top performing incumbent telco in Europe • Strong growth rates, high profitability, robust FC
Slide 32: Appendix
Appendix 32
Slide 33: Management Board
Management Board Deputy CEO CEO Alejandro Plater (*1967, Argentina) Thomas Arnoldner (*1977, Austria) • Board member since August 2015 • Board member since September 2018 o 2015-2018 as CEO, 2018-2023 as COO o 2018-2023 as CEO • Before A1, senior roles at Ericsson • Before A1, board functions at Alc
Slide 34: Conservative financial policy and investment-grade ratings
Conservative financial policy and investment-grade ratings As of December 31, 2024 Overview (December 31, 2024) Lines of credit (December 31, 2024) Credit ratings • Total financial debt: EUR 749 mn • Total committed lines: EUR 1,315 mn A3/A- • Average cost of debt: 1.50% o Average term to maturity:
Slide 35: Free Cash Flow
Free Cash Flow Q4 and full year 2024 Unless otherwise stated, all amounts Q4 2024 Q4 2023 Δ FY 2024 FY 2023 Δ in EUR mn EBITDA 515 481 7.1% 2,021 1,924 5.1% Free Cash Flow in FY 2024 higher due to Restructuring charges, cost of labor 26 39 -32.9% 91 92 -1.4% obligations Lease paid (principal, intere
Slide 36: P&L
Draft for internal discussion P&L Q4 and full year 2024 Unless otherwise stated, all Q4 2024 Q4 2023 Δ FY 2024 FY 2023 Δ amounts in EUR mn Revenues 1,476 1,369 +7.8% 5,413 5,251 +3.1% OPEX increase in Q4: OPEX (961) (888) +8.2% (3,391) (3,327) +1.9% EBITDA 515 481 +7.1% 2,021 1,924 +5.1% • higher eq
Slide 37: AT Restructuring | long term transformation with mid-term positive impact on FCF
AT Restructuring | long term transformation with mid-term positive impact on FCF Constant decrease of civil servant … and lower EWFs, slowing down …resulting in mid-term share driven by social plans … inflation-driven TWC increase free cash flow upside Inflation 2.0% 8.6% 7.8% -21% 7.625 2.7% 2,014
Slide 38: Contacts
Contacts Susanne Aglas-Reindl Head of Investor Relations Telekom Austria AG Lassallestraße 9 1020 Wien M +43 664 66 39420 T +43 50 664 39420 @ susanne.aglas-reindl@A1.group
Telekom Austria — Investor Presentation (February 2025) on 6ix