Telekom Austria Ag · VIE:TKA

Telekom Austria — A1 Telekom Austria Group — Q2 2021 Earnings Presentation

39 slides from Telekom Austria's earnings presentation, Jul 14, 2021

  1. Slide 1: Results for the first half and the second quarter 2021

    Results for the first half and the second quarter 2021 Vienna, July 14, 2021

  2. 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. Actual events may differ materially from those anticipated in these forw

  3. Slide 3: Operational and financial highlights for the first half and the second quarter 2021

    Operational and financial highlights for the first half and the second quarter 2021 3

  4. Slide 4: Highlights Q2 2021

    Highlights Q2 2021  Total revenues up by 6.4%:  Service revenues grew by 3.9%, driven by solution and connectivity and mobile business  Strong equipment sales as the comparison period was impacted by strict lockdowns  Internet@home growth of +5.2% yoy due to strong demand for mobile WiFi routers

  5. Slide 5: Q2 2021: Solid operational trends drive service revenue and EBITDA growth

    Q2 2021: Solid operational trends in the entire footprint drive service revenue and EBITDA growth Group (in EUR million) Q2 2021 Q2 2020 % change Total revenues 1,165.8 1,095.7 6.4% Service revenues 976.4 939.5 3.9% EBITDA before restructuring* 448.6 415.1 8.1% CAPEX 238.1 147.3 61.7%  Steady servi

  6. Slide 6: Austria and CEE markets in Q2 2021

    Austria and CEE markets in Q2 2021 Total revenues Service revenues EBITDA before restructuring (in EUR mn) (in EUR mn) (in EUR mn) +6.4% +3.9% +8.1% 40.9 1165.8 30.3 21.0 976.4 +54.1 16.5 18.9 448.6 excl. FX 1095.7 939.5 +30.6 11.7 excl. FX 415.1 +25.3 excl. FX Revenues Q2 Austria CEE markets Revenu

  7. Slide 7: Austria: EBITDA growth benefits from strong service revenue trends

    Austria: EBITDA growth continues to benefit from strong service revenue trends which more than outweighed higher OPEX Mobile service Fixed-line service revenues revenues Operational data (in EUR mn) (in EUR mn)  Mobile WiFi routers still a driving force for Internet@Home market Δ: +3.4% Δ: +2.5% 

  8. Slide 8: CEE: Strong operational growth in total revenues and EBITDA

    CEE: Strong operational growth of 11.6% and 14.4% in total revenues and EBITDA driven by service revenue trends Highlights CEE EBITDA (in EUR mn; Q2 21%-change vs. PY) Bulgaria:  Service revenue growth (+9.1%) also in Q2 2021, benefitting from strong solution Δ: +15.2% Δ: +16.4% Δ: -0.2% and connec

  9. Slide 9: 1-6M 2021: Free cash flow increased by 16% yoy

    1-6M 2021: Free cash flow increased by 16% yoy (in EUR million) Q2 2021 Q2 2020 % change 1-6 M 2021 1-6 M 2020 % change EBITDA 427.7 390.1 9.6% 826.0 770.7 7.2% Restructuring charges and cost of labor obligations 22.4 24.8 -9.6% 44.0 43.4 1.4% Lease paid (principal, interest and prepayments) -36.8 -

  10. Slide 10: Focus Points

    V / VZ Focus Points V A -

  11. Slide 11: ESG: Executing on strategy with more than 100 initiatives

    ESG: Executing on strategy with more than 100 initiatives to foster green and digital transformation Targets Execution Examples Green electricity & energy Net carbon neutral by 2030  ESG roadmap launched with more efficiency than 100 initiatives • Increase of 20% yoy of green Increase energy effici

  12. Slide 12: Belarus: Strong operative performance continues; macroeconomic uncertainties ahead

    Belarus: Strong operative performance continues; macroeconomic uncertainties ahead Economic and FX development Operative performance LCY Priorities unchanged growth in % 1H 2021: slight recovery and stable FX 15.9 13.4 11.4  Continuous evaluation and monitoring of  GDP: +3.1% Jan-May ‘21 (partiall

  13. Slide 13: Encouraging developments in the first six months of 2021

    Encouraging developments in the first six months of 2021 …returning to a “normal” Jan 2021 1-6 2021 Dec 2021 Service revenues Continuous evaluation of uncertainties in H2, in particular: + 2.3% Further development of the COVID-19 pandemic +11.6% The pace of roaming traffic rebound Equipment revenues

  14. Slide 14: Outlook for the full year 2021

    Outlook for the full year 2021 14

  15. Slide 15: Outlook 2021 revised: Total revenue growth of 2-3%

    Outlook 2021 revised: Total revenue growth of 2-3% April 27, 2021 July 14, 2021 Consensus 2021 approx. approx. EUR 4,623 mn Total revenues +1% +2-3% (+1.6% yoy) approx. approx. CAPEX EUR 801 mn* 800 mn EUR 800 mn EUR *CAPEX consensus excl. spectrum  New Outlook is based on encouraging start into th

  16. Slide 16: Appendix 1: ESG

    Vv / Vz Appendix 1 7 ESG A’ |

  17. Slide 17: One.Strategy

    One.Strategy “Environmental, Social & Corporate Governance (ESG)” was introduced as Strategy Enabler The A1 Telekom Austria Group aims to foster more efficient, resource- preserving and thus more sustainable ways of working and living. Results for the first half and the second quarter 2021 17

  18. Slide 18: ESG Strategy – Enabling the potential of digitalization

    ESG Strategy – Enabling the potential of digitalization for climate, people and society Targets – our ambition Climate & Environment - Ambition 2030 E  Reach net carbon neutrality by decreasing the own carbon footprint & switching to energy from renewables1 (CO2-emissions: +3% yoy)  Increase energ

  19. Slide 19: The "E" from ESG

    The „E“ from ESG CO2-emission 2030  Approx. more than 100 mobile base stations powered by self-generated electricity from Reach net carbon neutrality by wind or solar power  decreasing the own carbon  Face-out of diesel generators footprint and  Procurement of 100% of renewables in electricity i

  20. Slide 20: The "S" from ESG

    The “S” from ESG Digital Education 2023  Since 2011 over 228,000 participants within 14,600 workshops (group-wide) To address 100,000 people – specially children and young people – as part of the focus on digital education.  Focus on Digital Education: developing digital skills and the safe usage

  21. Slide 21: The "G" from ESG

    The “G” from ESG  Strong tone-from-the-top. Maintain a best-practice and externally  Revised A1 Group Code of Conduct with an increased focus on ESG, human rights and A1 New certified compliance management Ways of Working – roll-out in May 2021 system to safeguard the A1 Telekom  440 participants

  22. Slide 22: ESG KPIs

    ESG KPIs 2019 2020 Change Environment CO2-emissions (in t)* 240,909 247,705 3% E Energy efficiency (in Mwh/Terabyte) 0.18 0.14 -22% Mobile phones collected (No.) 64,504 84,880 32% Digital Education** S Participations in media literacy trainings (no.) 35,326 9,239 -74% Number of Workshops 2,217 527 -

  23. Slide 23: ESG Milestones & Goals

    ESG Milestones & Goals Relevant milestones reached ... ... and ambitious goals to achieve Alignment in CO2 Raise share of renewables Climate targets Science reporting process & first Launch in electricity and reduce based target approved group-wide CO2 audit ESG Website CO2 emissions Anchor ESG Inte

  24. Slide 24: Appendix 2: Additional information on KPIs and financials

    Appendix 2 Additional information on KPIs and financials 24

  25. Slide 25: A1 Telekom Austria Group: The leading regional communications player

    A1 Telekom Austria Group: The leading regional communications player providing convergent telecommunication services as of June 30, 2021 (in ‘000) Austria Bulgaria Croatia Mobile market position #1 Mobile market position: #1 Mobile market position #2 Mobile subscribers: Mobile subscribers: Mobile su

  26. Slide 26: A1 Telekom Austria Group: Profit and Loss

    A1 Telekom Austria Group: Profit and Loss (in EUR million) Q2 2021 Q2 2020 % change Service Revenues 976.4 939.5 3.9% Equipment Revenues 166.8 136.7 22.0% Other operating income 22.6 19.5 15.9% Total Revenues 1,165.8 1,095.7 6.4% Cost of Service -329.2 -322.0 -2.3% Cost of Equipment -162.8 -134.5 -2

  27. Slide 27: Total revenues & costs and expenses per segment

    A1 Telekom Austria Group: Total revenues & costs and expenses per segment Total Revenues (in EUR million) Q2 2021 Q2 2020 % change Austria 666.2 635.9 4.8% Bulgaria 145.1 121.5 19.5% Croatia 108.7 99.3 9.5% Belarus 95.7 98.3 -2.7% Slovenia 51.2 50.8 0.8% Serbia 74.7 68.1 9.7% North Macedonia 32.0 28

  28. Slide 28: A1 Telekom Austria Group: Workforce development

    A1 Telekom Austria Group: Workforce development FTE (Average Period) Q2 2021 Q2 2020 % change Austria 7,319 7,514 -2.6% International 10,315 10,331 -0.1% Corporate 375 376 -0.2% A1 Telekom Austria Group 18,009 18,221 -1.2% FTE (End of Period) Q2 2021 Q2 2020 % change Austria 7,305 7,493 -2.5% Intern

  29. Slide 29: A1 Telekom Austria Group: Net debt

    A1 Telekom Austria Group: Net debt as of June 30, 2021 Net Debt (excl. Leases) (in EUR million) 30 June 2021 31 December 2020 % change Long-term Debt 1,045.6 1,793.7 -41.7% Short-term Borrowings 1,498.7 749.1 100.1% Cash and Cash Equivalents -313.4 -210.9 -48.6% Net Debt (excl. Leases) of A1 Telekom

  30. Slide 30: A1 Telekom Austria Group: Financial debt maturity profile

    A1 Telekom Austria Group: Financial debt maturity profile as of June 30, 2021 (in EUR mn) 749.6 749.1 746.1 299.5 0.0 0.0 0.0 2021 2022 2023 2024 2025 2026 2027  EUR 2,544.3 mn short- and long-term Lines of credit Ratings debt as of June 30, 2021  Undrawn committed  S&P: BBB+ (stable  Average co

  31. Slide 31: Appendix 3: Reconciliation of Free Cash Flow

    Appendix 3 Reconciliation of Free Cash Flow 31

  32. Slide 32: 1-6M 2021: Reconciliation free cash flow

    1-6M 2021: Reconciliation free cash flow 1-6 M 2021 1-6 M 2020 % change FCF after social plans new 297.8 256.7 16.0% Social plans new funded 47.2 57.8 -18.3% Total social plans paid* -49.7 -50.9 -2.5% FCF - previously reported 295.3 263.5 12.1% *In the previous view all payments for all social plans

  33. Slide 33: Appendix 4: Regulatory Topics

    Appendix 4 Regulatory Topics 33

  34. Slide 34: Mobile Termination Rates

    Mobile Termination Rates Jan Jul Jan Jul Jan Mar Jan April Aug 2016 2016 2017 2017 2018 2019 2020 2020 2020 Austria (EUR) 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 Bulgaria (BGN) 0.019 0.019 0.014 0.014 0.014 0.014 0.014 0.014 0.014 Croatia (HRK)* 0.063 0.063 0

  35. Slide 35: Upcoming spectrum tenders/prolongations/assignments

    Upcoming spectrum tenders/prolongations/assignments* Expected Comments The NRA has launched a consultation on a new “Spectrum Release Plan for Austria” over Austria 2021 (No auction) summer 2021. Bulgaria 2021 (700, 800) No further info yet 2021 (700/3.6 GHz, 26GHz) Croatia 5G auction (700MHz, 3.6 G

  36. Slide 36: EU roaming price regulation

    EU roaming price regulation RETAIL (in EURc) July 2014 April 30, 2016 June 15, 2017 Data (per MB) 20 domestic tariff + 5* domestic tariff Voice-calls made 19 domestic tariff + 5* domestic tariff (per minute) Voice-calls received 5 weighted average MTR 0 (per minute) SMS (per SMS) 6 domestic tariff +

  37. Slide 37: Appendix 5: Personnel restructuring in Austria

    Appendix 5 Personnel restructuring in Austria 37

  38. Slide 38: Quarterly Overview: Restructuring charges and provision vs. FTE

    Quarterly Overview: Restructuring charges and provision vs. FTE Overview restructuring charges FTEs addressed (in EUR million) 2015 2016 2017 2018 2019 2020 Q1 21 Q2 21 2015 2016 2017 2018 2019 2020 Q1 21 Q2 21 FTE reduction 69.5 95.0 9.1 70.1 100.2 91.3 24.3 23.5 Transfer to government 49 6 3 0 0 0

  39. Slide 39: End of Presentation

    V / VZ End of Presentation 7 Al

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