Empresa Nacional De Telecomunicaciones S.a. · BCS:ENTEL
Empresa Nacional De Telecomunicaciones — Entel — Citi 23rd Annual Latin America Conference 2015
34 slides from Empresa Nacional De Telecomunicaciones's conference presentation, March 2015
Slide 1: Citi 23rd Annual Latin America Conference
Citi – 23nd Annual Latin America Conference Host by Citi New York, USA / March 12th -13th / 2015 Entel Chile_
Slide 2: Table of Contents
TABLE OF CON_ TENTS Entel and the Chilean telecom market Company overview Entel´s plans in Peru Financial overview Notes Financial figures reported under IFRS standards. Value in US$, exchange rate as of December 2014: $606.75 Entel Group_
Slide 3: Entel and the Chilean telecom market
Entel and the Chilean telecom market_ Entel Group_
Slide 4: Chile and telecommunications sector
Chile and telecommunications sector_ TELECOMMUNICATIONS GDP / TOTAL GDP 2.50% 2.34% 2.11% 2.24% CHILEAN TELECOM MARKET YEAR 2014 2.00% Telco Market Size (Revenues): 1.68% 1.73% US$ 8.3 bn (-3% vs 2013) 1.42% 1.50% 1.15% 0.99% 1.00% Pay TV, 13% (+11% vs 2013) 0.50% IT Services, 8% 0.00% (+3% vs 2013)
Slide 5: Telecom Market growth opportunities
Telecom Market_ growth opportunities SMARTPHONES PENETRATION NEW TARIFICATION (% total) World USA Chile 80% 80 63% 67% 60 44% 47% 40 33% Tablet 20 0 2012 2013 2014 2015 2016 2017 2018 + Multi devices with charge over exceeded traffic Source: ENTEL 4Q14, OVUM, Informa. Entel Group_ 5
Slide 6: Company overview
Company Company over_view over_view Entel Group Entel Group_ 6
Slide 7: Entel is one of the largest publicly listed companies in Chile
Entel is one of the largest publicly listed companies in Chile_ ENTEL SHAREHOLDER STRUCTURE / As of December 2014 All Others, Listed on Santiago Stock Exchange, shares form part of IPSA Index. 36.1% Market Capitalization (2): US$ 2,443 MM. Average Daily Volume (3): US$ 3.7 MM. Altel Inversiones Ltda
Slide 8: Entel Group: Over 11 million clients with integrated services
Entel Group_Over 11 million clients with integrated services Total 2014 Revenue (*): USD 2,749 MM Total 2014 EBITDA: USD 610 MM CHILE MOBILE: 69% CHILE WIRELINE: 20% AMP & Call Center: 2% PERU MOBILE: 9% CHILE MOBILE CHILE WIRELINE AMERICATEL PERU PERU MOBILE SERVICES SERVICES SERVICES Revenue: : US
Slide 9: Entel Snapshot
Entel “Snapshot”_ Mobile Market Share Data Penetration Subscribers Data over Industry Revenue Subscription base 11.8 million Share 66% 29.7% 11.985 11.840 11% DATA PLANS 1,556 1,738 10.106 • Entel Mobile Chile: (% over subscription base) 1.043 996 861 • Revenue Share Serv: 45% 8% 2,840 4% • Market S
Slide 10: Entel Snapshot
Entel “Snapshot”_ CAPEX 2014 Spectrum Infrastructure Chile: 150MHz Chile: 5,597 POPs US$ 893 MM Peru: 156.5MHz Perú: 1,713 POPs CAPEX/Revenue Chile(1) 2012 2014 2012 2014 Total: 30.8% +20% 4,986 5,597 4,124 4,676 +113% Perú: 10.0 pp 2012 2014 80 MHz 150 MHz 1,645 1,713 805(3) 4G obligations 1.7 pp C
Slide 11: Entel is committed to Social Responsibility
Entel is committed to Social Responsibility_ Fourth publication of Social Responsibility is biannual Sustainability an essential part Report prepared under of Entel’s corporate the Global Reporting management. Initiative (GRI). …In order to ensure …Voluntarily long term sustainability, manifesting t
Slide 12: Entel has a solid and growing position in the telecommunications market
Entel has a solid and growing position in the telecommunications market_ 2014 REVENUE DISTRIBUTION BY SERVICES Leading provider of a wide range of integrated solutions for telecommunications and IT outsourced services. 1% 2% 2% 3% Leadership position in the main markets where the Company 4% particip
Slide 13: Entel is one of the leading brands in the Chilean telecommunications industry
Entel is one of the leading brands in the Chilean telecommunications industry_ TOP OF MIND For 12 consecutive years, has been ranked first place in mobile services customer satisfaction index 46% 29% 23% Strong partnerships positions Entel to be in the leading commercial 2% and technological trends
Slide 14: Entel's services are provided through its extensive network and infrastructure
Entel’s services are provided through its extensive network and infrastructure_ Arica Iquique mobile_ Antofagasta network Copiapó fiber optic 20 MHz in 900 MHz band. 60 MHz in 1,900 MHz band. 40 MHz in 2,600 MHz band. La Serena transport 30 MHz in 700 MHz band. Vaparaíso Rancagua Santiago network 5,
Slide 15: Fixed access network with presence across the country
...with presence across the country_ Arica Iquique fixed Antofagasta access Copiapó network La Serena IP / MPLS ACCESS NETWORK Vaparaíso Santiago XDSL ACCESS NETWORK Rancagua Talca THE LARGEST DATA CENTER GPON ACCESS NETWORK Concepoción INFRASTRUCTURE PROVIDER NGN ACCESS Temuco • More than 7,500 m2
Slide 16: Our value proposition
Our value proposition A clear and converging offer The best communication service in the market An integrated and unique multichannel experience Entel Group_
Slide 17: Business focus and the pillars that empower it
Business focus_ and the pillars that empower it Integrated Solutions Growth in Growth Mobile Data, Home Wireless Fiber-Optic for SMEs IT Services to Transform Offerings Solutions Perú Corporate & SME Contribute to the Client-focused country with Invest in spectrum Product and service People that bel
Slide 18: Business segments
Business_ segments Our organization and business approach Entel Group_ 18
Slide 19: Mobile Services and Consumer Chile Segment
Mobile Services and Consumer Chile Segment_ Top position among high value clients MOBILE SERVICES CONSUMER SEGMENT 60 MHz in the 1,900 MHz band, 40 MHz in the 2,600 band, 20 MHz in the 900 band and 30 MHz Leader in high value segments, with an extensive in 700 band, all with nationwide coverage. off
Slide 20: Corporate & SME Chile
Corporate & SME Chile, with a solid position in mobile, data and IT outsourcing services _ CORPORATE & SME SEGMENT Ciudad de los Valles data center is Integrated offerings including IT / telco; fixed & mobile connected to a network of eight data convergence; bundling of solutions over IP networks. c
Slide 21: Perú
Perú_ Entel Perú_ Americatel_ Entel Group_ 21
Slide 22: Entel Perú: 2014 had constant challenges
Entel Perú_ 2014 had constant challenges STRATEGIC FOCUS In the first year of Entel Perú, the Company reformulated the business strategy in order to become a global mobile provider. Entel Perú continued strengthening its technical capabilities by expanding and renovating the entire network, consider
Slide 23: Summary of the Entel Perú challenges
Summary of the Entel Perú_ challenges • Consolidate a unique experience and increase competitive gap (usage experience, segmentation, multichannel). • Continue to successfully build the Entel brand projecting “closeness” and building long term relationships (expanding to lower and mid-segments in po
Slide 24: Americatel Perú: Focus in SME segment in Lima
Americatel Perú_Focus in SME segment in Lima GENERAL VISION STRATEGIC FOCUS Provide telecom services via an integrated Change in business composition, increasing offering (voice, data, Internet services) in the services on own networks in Lima (WiMax and enterprise segment within the Lima Area, over
Slide 25: Financial overview
Financial over_view Results and investment Entel Group_
Slide 26: Evolution of results reflect the beginning of the mobile business in Peru
Evolution of results reflect the beginning of the mobile business in Peru_ CONSOLIDATED FIGURES (US$ Million) Cagr 12/14 REVENUES (*) EBITDA AND EBITDA MARGIN Var. 14/13 8% 2,709 1% 2,749 2,375 -17% 884 770 -21% 37% 610 28% 22% 2012 2013 2014 2012 2013 2014 RESULTS FROM OPERATING ACTIVITIES PROFIT -
Slide 27: Consolidated Figures Entel (w/o Mobile Peru)
Consolidated Figures Entel (w/o Mobile Peru)_ Impacted by 75% reduction in mobile termination rates CONSOLIDTATED FIGURES (US$ Million) Var. 14/13 REVENUES EBITDA AND EBITDA MARGIN OPERATING INCOME -5% 2,632 2,500 0% 788 791 10% 426 388 32% 30% 2013 2014 2013 2014 2013 2014 Consolidated Figures Prof
Slide 28: Chile Mobile service impacted by reduction in access charges
Chile Mobile service impacted by reduction in access charges_ Cagr 12/ 14 MOBILE REVENUE (US$ Million) ARPU* (US$) Var. 14/13 0% -10% -2% 2,096 1,896 -8% 1,883 14.6 15.2 14.0 2012 2013 2014 2012 2013 2014 *Average Revenue per user DATA SERVICES PENETRATION** / (Over Postpaid Base) (%) 66% 55% 42% 28
Slide 29: Historical Capex
Investment plan driven primarily by expansion of mobile services and Data/IT_ CAPEX STRATEGY CAPEX BREAKDOWN AS OF DECEMBER 2014 Focused on maintaining leading technology and service quality in mobile services, to absorb market growth and evolution of mobile data. TOTAL = US$ 893 Others MILLION Subs
Slide 30: Cash flow
Cash flow reflects the expansion in the mobile business in Peru_ Cash_ flow 239 46 (US$ Million) Cash Flow is defined as: -310 + EBITDA - Capex - Net financial expenses 2012 2013 2014 Entel Group_ 30
Slide 31: Liquidity and debt ratios reflect healthy financial position
Liquidity and debt ratios reflects the company’s healthy financial position and expansion in Peru_ 2012 2013 2014 Liquidity Ratio (Current assets / Current liabilities) 1.0 1.1 1.5 EBITDA/Finance costs (LTM) 39.2 22.4 6.7 Net Debt/ EBITDA (LTM) 0.69 1.71 2.58 Total liabilities /(Equity+ non controll
Slide 32: Debt maturity profile as of December 2014
Debt maturity profile as of December 2014_ Figures in US$ Million 2013 US Bond 400 400 2014 US Bond 2014 CL Bond 333 333 333 Bank Loan Jun-13 Others 283 Dec2014 153 153 June2014 2 2 2 Total Gross Debt = US$ 2,394 million as of December, 2014. During July 2014, Entel placed an international and local
Slide 33: Recent events
Recent events_ An interim dividend of Ch$80 per share was approved based on net profits as of September 30, 2014. A total amount of Ch$ 18.9 billion will be paid December 11, 2014. 2013 Sep-14 Tax reform in Chile was approved in September, main highlights include: The changes in the corporate tax ra
Slide 34: Thank you
thank you ;) cdelacerda@entel.cl Costanera Sur 2760 • Las Condes Santiago • Chile Visit our website www.entel.cl Entel Group_
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