Telekom Austria Ag · VIE:TKA
Telekom Austria — A1 Telekom Austria Group — FY2021 Earnings Presentation
44 slides from Telekom Austria's earnings presentation, Feb 9, 2022
Slide 1: Results for the full year and fourth quarter 2021
Results for the full year and fourth quarter 2021 Vienna, February 9, 2022
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
Slide 3: Operational and financial highlights for the full year 2021
Operational and financial highlights for the full year 2021 3
Slide 4: Highlights for the full year 2021
Highlights for the full year 2021 Group (in EUR million) 2021 2020 % change Total revenues 4,748.3 4,549.4 4.4% Service revenues 3,956.5 3,804.5 4.0% EBITDA before restructuring* 1,790.3 1,661.3 7.8% Net Result 455.0 388.8 17.0% CAPEX 891.5 651.4 36.8% CAPEX ex. spectrum and and acquisitions 826.2 5
Slide 5: Austria and CEE markets in FY 2021
Austria and CEE markets in FY 2021 Total revenues Service revenues EBITDA before restructuring (in EUR mn) (in EUR mn) (in EUR mn) +4.4% +4.0% +7.8% 145.9 4,748.3 4,549.4 55.5 1,790.3 65.8 +178.0 3,956.5 1,661.3 54.1 3,804.5 101.0 52.0 +79.7 excl. FX +123.4 excl. FX excl. FX Revenues Austria CEE mar
Slide 6: Operational and financial highlights for the fourth quarter 2021
Operational and financial highlights for the fourth quarter 2021 6
Slide 7: Q4 2021: Solid service revenue trends remain, operational EBITDA growth in all markets except Slovenia
Q4 2021: Solid service revenue trends remain, operational EBITDA growth in all markets except Slovenia Group (in EUR million) Q4 2021 Q4 2020 % change Total revenues 1,241.8 1,185.6 4.7% Service revenues 1,011.5 961.4 5.2% EBITDA before restructuring* 421.0 387.0 8.8% CAPEX 258.8 202.9 27.5% Group
Slide 8: Austria: Continued strong service revenue trends translated into solid EBITDA growth
Austria: Continued strong service revenue trends translated into solid EBITDA growth Total revenues (in EUR mn) Operational data Δ: 0.0% High and low value tariffs, mobile WiFi routers, indexation as well as increased roaming drove ARPU higher (FY ARPU y-o-y also increased (+4.1%)) 681.5 681.6 A
Slide 9: CEE: Service revenue and EBITDA growth of 10.4% and 8.8% respectively
CEE: Service revenue and EBITDA growth of 10.4% and 8.8% respectively, operational growth in almost all markets Highlights CEE EBITDA (in EUR mn; Q4 21%-change vs. PY) Bulgaria: Strong service revenue increase of 13%; driven by both mobile and fixed-line Δ: +8.8% Δ: -6.9% Δ: +27.2% solid demand
Slide 10: FY 2021: Strong operational performance translated into stable free cash flow despite higher CAPEX
FY 2021: Strong operational performance translated into stable free cash flow despite higher CAPEX after COVID-related cut in 2020 (in EUR million) Q4 2021 Q4 2020 % change 1-12 M 2021 FY 2020 % change EBITDA 399.9 364.5 9.7% 1,706.1 1,576.8 8.2% Restructuring charges and cost of labor obligations 2
Slide 11: Focus Points
V / VZ Focus Points V A -
Slide 12: Accelerated smart fibre roll-out in Austria: ramping up CAPEX in 2022
Accelerated smart fibre roll-out in Austria: Leveraging the changing market and regulatory environment, ramping up CAPEX in 2022 Boost position as the preferred enabler of digitalization Preserving position as a leader in terms of & satisfy customer demand: high-speed products: Customers increasingl
Slide 13: Accelerated smart fibre roll-out in Austria: Creating long-term value for shareholders
Accelerated smart fibre roll-out in Austria: Creating long-term value for shareholders with future-proof products Fibre roll-out so far focused on FTTC subsidized + Fibre FTTB city push as well as FTTH in new buildings % Now accelerating FTTH/FTTB roll-out in multiple Gradual of high- brownfield
Slide 14: Sustainable dividend policy and leverage ratio ensured
Keeping the growth momentum and leverage opportunities: Sustainable dividend policy and leverage ratio ensured EBITDA 5500 35.9% margin 37.00% Continuous dividend 34.2% 34.7% growth 5000 35.00% Revenues 30 25 31.4% 23 4500 close to 33.00% 21 20 20 +3% 5 4000 31.00% 20 FY 2022 est. 2.1x 2.1x 2.0x 1.9
Slide 15: Empowering a Sustainable Future: Highlights in 2021 and focus areas going forward
Empowering a Sustainable Future: Highlights in 2021 and focus areas going forward Climate & Environment People, Society & Corporate Governance Climate neutrality Digital Education Diversity Highlights 2021 CO2 emissions reduced by 20% A1 digital.campus launched with a DEI policy published in 2
Slide 16: Outlook for the full year 2022
Outlook for the full year 2022 16
Slide 17: Outlook for the full year 2022
Outlook for the full year 2022 February 8, 2022 Consensus 2022 Total revenues Close to 3% EUR 4,815 mn CAPEX Approx. 15% y-o-y EUR 825 mn* *CAPEX consensus excl. spectrum Total revenue growth expected to be driven by ongoing solid service revenue trends in basically all markets on the back of stro
Slide 18: Appendix 1: ESG
Vv / Vz Appendix 1 7 ESG A’ |
Slide 19: 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 full year and fourth quarter 2021 19
Slide 20: ESG Strategy – Enabling the potential of digitalization for climate, people and society
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 renewables 1 Increase energy efficiency by 80% 2
Slide 21: The 'E' of ESG
The ‚E‘ of ESG CO2-emission 2030 More than 100 mobile base stations powered by self-generated electricity from wind or Reach net carbon neutrality from own solar power operations by Phase-out of diesel generators decreasing the own carbon footprint and Increase in group-wide share of renewab
Slide 22: The 'S' of ESG
The ‘S’ of ESG Since 2011 over 261,000 participants within 15,000 workshops (group-wide) Digital Education 2023 To address 100,000 people – especially children and young people – as part of the “A1 Internet for All” became the new “A1 digital.campus” in 2021, with a focus on robotics, focus on d
Slide 23: The 'G' of ESG
The ‘G’ of ESG Strong tone-from-the-top Maintain a best-practice and externally The group-wide conducted integrity survey shows a strong compliance and integrity culture certified compliance management 97% of all A1 Group employees completed the group-wide A1 Compliance e-learning system to sa
Slide 24: ESG KPIs
ESG KPIs 2020 2021 Change Environment* CO2-emissions (in t)** 246,990 197,656 -20% E Energy efficiency (in Mwh/Terabyte) 0.14 0.11 -18% 84,880 (only Old devices collected (No.) mobile) 166,038 n.a. Digital Education*** Participations in media literacy trainings (no.) 9,239 33,190 +259% S Number of W
Slide 25: ESG Milestones & Goals
ESG Milestones & Goals Relevant milestones reached ... ... and ambitious goals to achieve Social & Governance Launch Strategy will be extended to Climate targets were Alignment in CO2 “People Sustainability Materiality Analysis to approved by the Science- reporting process & first Strategy” expandin
Slide 26: Appendix 2: Additional information on KPIs and financials
Appendix 2 Additional information on KPIs and financials 26
Slide 27: A1 Telekom Austria Group: The leading regional communications player
A1 Telekom Austria Group: The leading regional communications player providing convergent telecommunication services as of December 31, 2021 (in ‘000) Austria Bulgaria Croatia Mobile market position #1 Mobile market position: #1 Mobile market position #2 Mobile subscribers: Mobile subscribers: Mobil
Slide 28: A1 Telekom Austria Group: Profit and Loss
A1 Telekom Austria Group: Profit and Loss (in EUR million) Q4 2021 Q4 2020 % change Service Revenues 1,011.5 961.4 5.2% Equipment Revenues 207.7 195.7 6.1% Other operating income 22.7 28.5 -20.4% Total Revenues 1,241.8 1,185.6 4.7% Cost of Service -355.2 -346.5 -2.5% Cost of Equipment -203.3 -198.0
Slide 29: Total revenues & costs and expenses per segment
A1 Telekom Austria Group: Total revenues & costs and expenses per segment Total Revenues (in EUR million) Q4 2021 Q4 2020 % change Austria 681.5 681.6 0.0% Bulgaria 151.9 136.9 11.0% Croatia 115.8 115.8 0.0% Belarus 122.7 95.7 28.2% Slovenia 53.3 52.9 0.7% Serbia 86.7 75.7 14.4% North Macedonia 36.0
Slide 30: A1 Telekom Austria Group: Workforce development
A1 Telekom Austria Group: Workforce development FTE (Average Period) Q4 2021 Q4 2020 % change Austria 7,223 7,319 -1.3% International 10,266 10,261 0.1% Corporate 389 371 4.9% A1 Telekom Austria Group 17,878 17,951 -0.4% FTE (End of Period) Q4 2021 Q4 2020 % change Austria 7,180 7,320 -1.9% Internat
Slide 31: A1 Telekom Austria Group: Net debt
A1 Telekom Austria Group: Net debt as of December 31, 2021 Net Debt (excl. Leases) (in EUR million) 31 December 2021 31 December 2020 % change Long-term Debt 1,046.1 1,793.7 -41.7% Short-term Borrowings 1,553.2 749.1 107.4% Cash and Cash Equivalents -534.4 -210.9 -153.4% Net Debt (excl. Leases) of A
Slide 32: Financial debt maturity profile
A1 Telekom Austria Group: Financial debt maturity profile as of December 31, 2021 (in EUR mn) 1,553.2 746.5 749.7* 299.6 0.0 0.0 0.0 2022 2023 2024 2025 2026 2027 EUR 2,599 mn short- and long-term debt as of December 31, 2021 Lines of credit Ratings EUR 800 mn short-term financing partly used fo
Slide 33: Appendix 3: Reconciliation of Free Cash Flow
Appendix 3 Reconciliation of Free Cash Flow 33
Slide 34: FY 2021: Reconciliation free cash flow
FY 2021: Reconciliation free cash flow 1-12 M 2021 FY 2020 % change FCF after social plans new 487.3 503.7 -3.3% Social plans new funded 94.4 96.7 -2.4% Total social plans paid* -96.8 -98.5 -1.7% FCF - previously reported 484.9 501.9 -3.4% *In the previous view all payments for all social plans (old
Slide 35: Appendix 4: Regulatory Topics
Appendix 4 Regulatory Topics 35
Slide 36: Mobile Termination Rates
Mobile Termination Rates Jan Jul Jan Jul Jan Mar Jan April Aug Jul Jan 2016 2016 2017 2017 2018 2019 2020 2020 2020 2021**** 2022 Austria (EUR) 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.008049 0.007 0.0055 Bulgaria (BGN) 0.019 0.019 0.014 0.014 0.014 0.014 0.014 0.014
Slide 37: Upcoming spectrum tenders/prolongations/assignments
Upcoming spectrum tenders/prolongations/assignments* Expected Comments NRA recently confirmed that no spectrum allocation procedure will take place in 2022. AUT Austria 2023 (26 GHz) currently prepares a new “Spectrum Release Plan for Austria”; Preparations for the allocation of 26 GHz will kick off
Slide 38: 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 +
Slide 39: Appendix 5: Personnel restructuring in Austria
Appendix 5 Personnel restructuring in Austria 39
Slide 40: 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 Q3 21 Q4 21 2015 2016 2017 2018 2019 2020 Q1 21 Q2 21 Q3 21 Q4 21 FTE reduction 69,5 95,0 9,1 70,1 100,2 91,3 24,3 23,5 22 24,8 Tra
Slide 41: Appendix 6: Further financial information
Appendix 6 Further financial information 41
Slide 42: FY 2021: EBITDA benefits from strong service revenue growth and well-managed costs
FY 2021: EBITDA benefits from strong service revenue growth and well-managed costs EUR mn Equipment Service revenues OOI OPEX Non-operating effects margin 2.100,0 2.000,0 1.900,0 1.800,0 1.700,0 1.600,0 1,790.3 1,661.3 1.500,0 1.400,0 EBITDA Mobile Fixed Solutions OOI Operative Non Opex Opex One-off
Slide 43: Austria and CEE markets in Q4 2021
Austria and CEE markets in Q4 2021 Total revenues Service revenues EBITDA before restructuring (in EUR mn) (in EUR mn) (in EUR mn) +4.7% +5.2% +8.8% 55.9 1241.8 1185.6 14.4 421.0 8.4 39.5 1011.5 17.4 961.4 387.0 Revenues Austria CEE markets Revenues Service Austria CEE markets Service EBITDA Austria
Slide 44: End of Presentation
V / VZ End of Presentation 7 Al
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