28 slides from Hellenic Telecommunications Organization Sa's earnings presentation, August 2018
Slide 1: OTE Hellenic Telecommunications Organization Q2 2018 Results
OTE Hellenic Telecommunications Organization Q2 2018 Results August 2018
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 Market Cap Q2’2018 €959mn €319mn €169mn €95mn €5.4bn Revenues Adj. EBITDA Greece: Greece: Shareholders 74% 88% DT: 45% Romania: Romania: 25% 12% Hellenic State: 5% Albania: Albania: 2% 1% OTE Group is the largest telecommunications provider
Slide 4: Our Strategy
Our Strategy The 6 Pillars of our strategic plan Best Customer Revenue Lead in Technology Superiority Experience Transformation Core Business • ICT / Systems Solutions for • FTTC Vectoring / Super Digital @Customer • COSMOTE brand superiority Business customers Vectoring – rollout completion • Cloud
Slide 5: Digital Transformation
Digital Transformation Simplify, Digitalize, Accelerate for superior Customer Experience & Operational Efficiency Digital @Customer Digitalize Service Digitalize Businesses Digital Interactions Simplify Portfolio Processes & Public Sector One App primary touchpoint Simplify Product & Tariff for
Slide 6: Number 1 in TRI*M in all our markets
Number 1 in TRI*M in all our markets COSMOTE Greece succeeds in remaining #1 in Customer satisfaction (TRI*M index) Strong BRAND “One world better for all” new brand promise Innovative “UFixIt app”: innovative digital care based on devices as interactive service tools with video CUSTOMER CARE co
Slide 7: Capex
Capex Adjusted Capex (€ mn) Q2’18: -€54mn yoy 900 798 27% 800 250 700 223 250 223 213 213 27.0% 27.0% 25% 700 627 185 185 176 200 25.0% 176 25.0% 600 200 23% 167 167 169 23.0% 23.0% 21% 500 150 23.8% 150 23.8% 21.0% 21.0% 20.7% 19% 400 21.4% 19.0% 21.4% 19.0% 300 100 19.9% 17% 100 19.9% 17.0% 17.0%
Slide 8: Cash Flow
Cash Flow Adjusted FCF (€ mn) Q2’18: +€45mn yoy 1,086 1,050 903 459 273 308 350 264 273 174 308 148 175 105 95 95 Positive impact from Capex 174 (11) 50 175 (28) 9 148 slowdown 95 50 9 (11) (28) (627) (185) (176) (167) (169) (700) (223) (213) (798) FY 2016 FY 2017 (185) FY 2018 (176) (167) (223) (21
Slide 9: Debt and Liquidity Profile
Debt and Liquidity Profile Leverage (€ mn) 0.8x 0.7x 0.6x 0.5x 0.4x 0.8x 0.3x 0.6x 0.6x Net Debt/EBITDA 0.2x 0.1x 0.0x 0.7x 0.6x 0.5x 0.4x 0.4x 0.5x 0.5x 0.4x 0.6x 0.6x 0.3x 0.2x 0.1x 0.4x 0.4x 0.5x 0.5x 0.0x 2,062 2,042 1,951 2,041 2,062 2,042 2,041 1,514 1,515 1,951 1,514 1,515 On July 18, 2018, O
Slide 10: Shareholder Remuneration Policy
Shareholder Remuneration Policy Dividend per Share (€) Estimated 2018 Payout (€mn) 0.40 0.35 Total 0.35 262 0.30 Remunaration 0.25 0.20 0.16 Share Buy 90 0.15 +119% Back 0.10 0.05 0.00 Dividends 172 FY 2016 FY 2017 Dividend per Share (€) Shareholder Remuneration Policy 100% FCF Distribution through
Slide 11: Greece
Greece OTE | Q2 2018 Results| 11
Slide 12: Greece – Financial Overview
Greece – Financial Overview Total Revenues (€ mn) Adj. EBITDA (€ mn) 41 .5% 41.0% 40.5% 40.9% 41 .0% 40 .5% 40 .0% 39.3% 39.2% 39 .5% 38.6% 39 .0% 800 740 723 711 400 38 .5% 690 693 686 38 .0% 350 700 37 .5% 303 293 600 37 .0% 300 266 273 280 279 500 250 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 200 400 +
Slide 13: Greece – Financial Overview
Greece – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 300 300 250 224 227 250 232 234 200 200 150 150 100 +1.2% +0.8% 100 50 50 0 0 Q2'17 Q2'18 Q2'17 Q2'18 Fixed Service Revenues Mobile Service Revenues Excluding the IFRS 15 impact at +1.4% Excluding the IFRS 15 imp
Slide 14: Greece – Fixed KPIs
Greece – Fixed KPIs Fixed-Line Market Evolution (000) OTE Fixed Lines at 2,646k 4,748 4,743 4,739 4,757 4,766 4,766 44% 45% 45% 45% 45% 44% Retail Customers +0.5% y-o-y 56% 55% 55% 55% 55% 56% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 OTE Market Share Competitors Market Share Net Additions (000) 18 17 7 9
Slide 15: Greece – Broadband KPIs
Greece – Broadband KPIs Broadband Market Evolution (000) Market Penetration OTE Broadband Lines at 1,833k 120% 3,706 3,739 3,790 3,841 3,865 100% 3,675 78% 79% 80% 81% 81% 77% 80% 55% 55% 54% 54% 53% 53% 60% 69% 64% 65% 67% 68% 63% 40% 45% 45% 46% 46% 47% 47% 20% 0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'
Slide 16: Greece – Fiber Services
Greece – Fiber Services Fiber Subscribers (000) 500 449 Penetration of high-speed Fiber Broadband service at 450 405 100.0% 400 354 24.5% of retail broadband base 350 311 80.0% 280 300 252 60.0% At June 30, total number of VDSL/Vectoring activated 250 200 55.1% 61.6% 60.6% 60.5% 40.0% cabinets a
Slide 17: Greece – COSMOTE TV
Greece – COSMOTE TV TV Subscribers (000) 70 0 100 528 60 0 505 504 517 525 526 80 50 0 60 +4.3% y-o-y Increase in Customer base 40 0 40 30 0 20 Q2 is a traditionally low performance quarter 13 20 0 0 2 8 3 10 0 (1) (2) -2 0 0 -4 0 Champions League & Europa League 2018-2021 Q1'17 Q2'17 Q3'17 Q4'17 Q1
Slide 18: Greece – Mobile KPIs
Greece – Mobile KPIs Data Revenues (€ mn) Avg.Data usage* (GB) 29% of Service Revenues 2.0 1.9 1.8 1.6 1.7 80 70 45.0% 1.5 1.3 67 64 70 63 40.0% 1.1 58 60 55 35.0% 1.0 30.0% 50 +37% 25.0% 0.5 40 20.0% 30 22.8% 20.8% 15.0% 20 18.7% 17.7% 15.9% 20.4% 0.0 10.0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 10 5.
Slide 19: Greece – Digitalization
Greece – Digitalization Smartphone penetration (%) COSMOTE Apps Active users (mn) 80% 2.0 1.8 64% 66% 67% 1.8 70% 63% 59% 59% 1.6 60% 1.4 50% 1.2 1.2 1.0 40% 0.8 30% +8.0pp 0.6 +56% 20% 0.4 10% 0.2 0.0 0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q2'18 Smartphone penetration 50% App Active users pen
Slide 20: Romania
Romania OTE | Q2 2018 Results| 20
Slide 21: Romania – Financial Overview
Romania – Financial Overview Total Revenues (€ mn) Adj. EBITDA (€ mn) 20.0% 16.1% 16.6% 18.0% 15.3% 14.6% 15.7% 18.0% 16.0% 14.0% 12.0% 60 300 266 10.0% 250 230 236 240 227 238 8.0% 6.0% 50 4.0% 43 41 2.0% 37 39 37 200 0.0% 40 33 150 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 30 Adj. EBITDA margin % 0.8% 1
Slide 22: Romania – Financial Overview
Romania – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 100 100 90 80 73 90 80 82 70 63 80 70 60 60 50 50 40 -14.0% 40 30 20 30 +3.1% 20 10 10 0 0 Q2'17 Q2'18 Q2'17 Q2'18 Retail Fixed Service Revenues Mobile Service Revenues Excluding the IFRS 15 impact at -11.5% Exc
Slide 23: Romania – Fixed KPIs
Romania – Fixed KPIs Fixed Lines* (000) Broadband Lines* (000) TV Subscribers (000) Q2’18: -1.0% yoy Q2’18: -2.0% yoy Q2’18: -0.5% yoy Broadband lines Fixed lines 2,500 2,500 TV Subscribers 3,000 2,000 2,000 2,500 2,128 2,118 2,101 2,098 2,094 2,097 1,457 1,471 1,473 1,470 1,464 1,463 2,000 1,500 1,
Slide 24: Romania – Mobile KPIs
Romania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 35 30 80.0% 40% Data Revenues 35% 25 60.0% 30% 20 18 18 17 18 24% 24% 24% 40.0% 25% 22% 15 13 13 41.5% 18% 18% 37.0% 34.8% 20% 32.2% 20.0% 10 15% 0.0% 5 10% -0.6% 0.2% 5% 0 -20.0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 0%
Slide 25: Albania
Albania OTE | Q2 2018 Results| 25
Slide 26: Albania – Financial Overview
Albania – Financial Overview Service Revenues (€ mn) 35.0% Adjusted EBITDA (€ mn) 30.0% 25.0% 20 5.0% 19.8% 17 17 17 15.1% 17 20.0% 13.9% 15 15 0.0% 15.0% 12.2% 10.8% 15 0.6% 0.7% -5.0% 10.0% 5.1%266 273 303 293 280 0.0% 500 450 400 350 300 80.0% 60.0% 40.0% 20.0% 5.0% 250 0.0% 200 -20.0% -40.0% -7.
Slide 27: Albania – Mobile KPIs
Albania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 7 90.0% 6 80.0% 50% as % of Service Revenues 5 45% 5 5 70.0% 5 4 40% 60.0% 35% 31% 31% 4 4 26% 28% 50.0% 3 30% 22% 3 54.7% 40.0% 25% 20% 46.0% 45.5% 20% 42.0% 30.0% 2 37.6% 35.7% 15% 20.0% 10% 1 10.0% 5% 0% 0 0.0% Q1'1
Slide 28: 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 | Q2 2018 Results| 28