Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Q1 2022 Earnings Presentation
30 slides from Hellenic Telecommunications Organization Sa's earnings presentation, May 2022
Slide 1: OTE Group Q1 2022 Results
OTE Group Q1 2022 Results MAY 2022
Slide 2: Disclaimer
2 Disclaimer This presentation is provided to persons who are entitled to receive it in accordance with the laws and In addition to figures prepared in accordance with IFRS, OTE also presents alternative performance measures, regulations of appropriate jurisdictions. This presentation is provided for
Slide 3: Strategy: The 7 Pillars of our Strategic Plan
3 Strategy: The 7 Pillars of our Strategic Plan TECHNOLOGY BEST CUSTOMER REVENUE LEAD IN DIGITALIZATION, GROWTH MINDSET SUPERIORITY EXPERIENCE TRANSFORMATION CORE BUSINESS SIMPLIFICATION AND CULTURE AND COST • Accelerate Optical • Digital Transformation • ICT projects • Leverage COSMOTE OPTIMIZATION
Slide 4: Digital Transformation
4 Digital Transformation Our goal: to be the leader for Digital Transformation in Greece and a role–model in Europe with superior Customer Experience & Operational Efficiency DIGITAL @CUSTOMER DIGITAL @NETWORK DIGITAL @COMPANY Digital Interplay Simplification Internal Interactions • One App primary tou
Slide 5: 2021 Environmental Targets
5 2021 Environmental Targets CLIMATE CHANGE STATUS 2021 PERFORMANCE OTE Group contributes to updated DT Group Climate Change Targets: • Scope 1 & 2: 85% CO2 reduction (vs 2017) • Net Zero for direct and indirect energy consumption including up to 95% reduction by 2025 vs 2017 (Scope 1 & 2) • Electri
Slide 6: 2022 ESG Targets
6 2022 ESG Targets CLIMATE CHANGE OTE Group contributes to DT Climate Change Targets: • Net Zero for direct and indirect energy consumption including up to 95% reduction by 2025 • 100% Renewable electricity (2021 onwards) • 25% Emission reduction per customer for value chains emissions (2017-2030) •
Slide 7: Sustainability & ESG Indices, Rankings and Ratings
7 Sustainability & ESG Indices, Rankings and Ratings The OTE Group responds to sustainability & ESG analysts’ questions and assessments. OTE is included in several national and international sustainability/ESG indices, rankings and ratings. OTE, since 2008, fulfills all requirements and is a member
Slide 8: Financial Review
OTE Group Q1 2022 Results Financial Review
Slide 9: Highlights
9 Highlights GROUP GREECE key operational and financial metrics up Positive momentum continues +4.7% +8.0% +4.4% +5.1% REVENUES ADJ. EBITDA (AL) REVENUES ADJ. EBITDA (AL) yielding a margin of 41.9% Favorable comparisons and one-offs in Romania Strong Margin at 39.4%, up 1.2pp +2.8% +4.5% FTTH rollou
Slide 10: Group Overview
10 Group Overview Q1 2022 OTE Group is the largest telecommunications €825m €228m provider in the Greek ROMANIA REVENUES (YOY +4.7%) ADJ. FCF (YOY +39.9%) market with presence also in Romania. OTE is among the largest listed companies in the Athens Stock Exchange. €325m €7.3b GREECE ADJ. EBITDA (AL)
Slide 11: Revenues & Adj. EBITDA (AL)
11 Revenues & Adj. EBITDA (AL) 892 Total Revenues (€m) 828 861 825 3,368 788 3,259 8.0% 5.0% 4.7% 1.8% -1.2% FY 2020 FY 2021 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 yoy change % Adj. EBITDA (AL) (€m) 38.2% 37.5% 40.9% 37.2% 39.4% 37.5% 38.5% 353 1,296 332 325 1,224 301 310 12.4% 6.9% 8.0% 1.6% 3.2% FY 2020 FY
Slide 12: Capex
12 Capex Adjusted Capex (€m) &!! $!"! # 161 161 %*! ( $!"# 620 %)! ( !" # 544 137 559 %!( ' "!$# 100 %!& ' "! # %!! 93 &!"$# *! &!"! # 16.7% 16.6% 18.7% )! % $"! # 16.6% 18.0% (! %!"! # 12.7% 11.3% &! $#!" ! ! #!" FY 2020 FY 2021 FY 2022 Guidance Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 As % of sales As % of s
Slide 13: Cashflow
13 Cashflow Adjusted FCF (€mn) Q1’22: +39.9% yoy 1,200 1,149 300 309 321 263 277 656 590 228 163 163 149 116 (100) (93) (544) (559) (137) (161) (161) FY 2020 FY 2021 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Adjusted Capex Adj. Net operating CF Adj.FCF Reported FCF (€m) 222 Q1’22: +90.4% yoy 600 157 483 116 108
Slide 14: Shareholder Remuneration Policy
14 Shareholder Remuneration Policy Total Payout (Guidance) (€m) Shareholder Remuneration Policy 480 500 70%-100% FCF Distribution through a combination of dividends and share buybacks 400 350 260 €500m €250m Dividends; €0.558 Dividend/share paid on July 07, 2022 €250m in Share Buybacks FY 2018 FY 20
Slide 15: Debt and Liquidity Profile
15 Debt and Liquidity Profile Leverage (€m) (IFRS amounts) 0.8x 0.6x 0.6x 0.6x 0.5x 1,678 1,668 Adjusted Net Debt/EBITDA 1,534 1,412 1,393 Adj. Net Debt Adj. Net Debt/EBITDA 925 787 776 stood at €616m (AL) stood at 0.5x 764 616 (608) (892) (904) (636) (777) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Gross Debt Ca
Slide 16: Greece
OTE Group Q1 2022 Results Greece
Slide 17: Greece – Financial Overview
17 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 3,340 2,940 3,078 30.0% 2,840 25.0% 790 813 30.0% 40.8% 41.1% 41.6% 40.0% 43.3% 39.6% 41.9% 20.0% 759 25.0% 748 1,340 1,265 15.0% 717 20.0% 1,240 1,199 ) %# 2,340 342 ( %$ #& 9.6% 1,140 ) % 15.0% 321 10.0% 1,840 5.0% 3.5% 4.5%
Slide 18: Greece – Financial Overview
18 Greece – Financial Overview Retail Fixed Revenues (€m) 938 951 20. 0% Retail fixed service revenues up 2.8%: 241 241 240 15. 0% 261 233 236 10. 0% 211 5.0% • Continuing growth in broadband revenues 2.8% • Strong performance in TV, ongoing investment in superior 0.0% 161 2.0% 1.8% 2.1% -0.6% -5.0%
Slide 19: Greece – Fixed KPIs
19 Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,713k 4,863 4,870 4,868 4,903 4,906 45% 45% 45% 45% 45% 99 55% 55% 55% 55% 55% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 OTE Market Share Competitors Market Share 36 Net Additions (000) OTE additions -3k 19 3 12 6 6 (3) 4 (2) 17 17 8
Slide 20: Greece – Broadband KPIs
20 Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines at 2,269k Market Penetration 4,299 4,329 4,348 4,402 4,423 88% 89% 89% 90% 90% 49% 49% 49% 49% 49% 81% 82% 82% 83% 84% 51% 51% 51% 51% 51% 51% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 OTE Penetration M
Slide 21: Greece – Fiber KPIs
21 Greece – Fiber KPIs Fiber Subscribers (000) 28% of fiber subs enjoy speeds of 100Mbps or more Fiber Subscribers additions 1,208 1,100 1,149 1,056 1,005 60k 51k 44k 49k 59k 27.6% 25.7% 24.1% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 21.6% 20.2% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 yoy change % Fiber Penetration (on B
Slide 22: Greece – COSMOTE TV
22 Greece – COSMOTE TV TV Subscribers (000) 637 578 579 600 624 • +10.2% yoy increase in Customer base; Additions +12k • UEFA Champions League and Europa League TV rights renewed for 2021-2024 • Broadcasting agreements with eight out of fourteen Greek 21 24 12 Superleague football teams 3 1 • Italia
Slide 23: Greece – Mobile KPIs
23 Greece – Mobile KPIs Total Subscribers (000) Q1'22: Post Paid +5.3% yoy 7,181 6,889 6,988 7,040 7,098 4,164 4,232 4,250 4,280 4,311 2,725 2,756 2,790 2,818 2,869 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Postpaid Prepaid Avg.Data usage* (GB) Q1'22: +37% yoy Another positive “COSMOTE Neo” the 8.2 quarter for
Slide 24: Greece – Digitalization
24 Greece – Digitalization Smartphone penetration (%) COSMOTE app users at 3.7 million by end of the quarter. It has 77% 77% 78% 78% 78% become the major digital contact point with the customer. It includes features like: +1pp Mobile data bundle Remote Wi-Fi router subscription renewal, bill managem
Slide 25: Mobile Network Superiority in Greece
25 Mobile Network Superiority in Greece OOKLA: P3 Best in Test certification, for 7th consecutive time, for its COSMOTE Fastest Mobile Network for 5th consecutive year mobile internet and voice services in Greece 105.64 41.77 46.28 AVERAGE DOWNLOAD SPEED (MBPS) AVERAGE UPLOAD SPEED (MBPS) AVERAGE LAT
Slide 26: Romania Mobile
OTE Group Q1 2022 Results Romania Mobile
Slide 27: Romania – Financial Overview
27 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 1.6% 350 7.0% 9.7% 3.8% 9.0% 13.0% 12.6% 14.9% 316 77 81 83 78 75 31 25 11 10 12 7 3 FY 2020 FY 2021 FY 2020 FY 2021 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Adjusted Capex (€m) Adj. EBITDA (AL) Margin % 54
Slide 28: Romania – Financial Overview
28 Romania – Financial Overview Mobile Service Revenues (€mn) 55 54 56 56 231 222 52 FY 2020 FY 2021 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Mobile Service revenues were down 4.6%, due to sharp cuts in mobile termination rates Postpaid subscriber base posted further growth; +5.1%; FMS proposition launched in
Slide 29: Romania – Mobile KPIs
29 Romania – Mobile KPIs Data Revenues (€m) Total Subscribers (000) 3,550 3,540 3,602 3,688 3,821 !% 21 20 20 19 19 !# 1,887 1,843 1,885 1,956 2,072 "% "# % 1,664 1,696 1,717 1,732 1,749 # Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'21 &# Postpaid Prepaid Data Revenues as % of Service R
Slide 30: Thank You
THANK YOU
Hellenic Telecommunications Organization (OTE Group) — Q1 2022 Earnings Presentation on 6ix