29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, 2024
Slide 1: OTE Group Q4 2023 Results
OTE Group Q4 2023 Results
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 • Accelerate FTTH COST OPTIMIZATION • Introduction and evaluation of Optical Fiber • Digital Transf
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: 2023 Sustainability Commitments - Performance
5 2023 Sustainability Commitments - Performance CLIMATE NEUTRALITY 2023 PERFORMANCE OTE Group contributes to DT Group Climate Change Targets: • Climate neutral in terms of own emissions (Scope 1&2) by 2025, including up to 95% reduction by 2025, compared to 2017 • 100% Renewable electricity, from 20
Slide 6: Sustainability Strategic Priorities: Commitments 2024 onwards
6 Sustainability Strategic Priorities: Commitments 2024 onwards CLIMATE NEUTRALITY OTE Group1 contributes to DT Group Climate Change Targets: • Climate neutral in terms of own emissions (Scope 1&2) by 2025, including up to 95% reduction by 2025, compared to 2017 • 100% Renewable electricity, from 20
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, meets the requirements and is Since 2018,
Slide 8: Financial Review
praygenesttt: 28888: Financial Review OTE Group Q4 2023 Results
Slide 9: Highlights
9 Highlights GROUP GREECE Strong performances driven by both Greece and Romania Solid rebound: Sharp revenue growth Q4 ’23 +5.1% +2.8% +5.0% +1.6% 39.4% REVENUES ADJ. EBITDA (AL) REVENUES ADJ. EBITDA (AL) MARGIN FY 2023 €501m €621m FTTH subscribers +4.1% mobile service FTTH network 1,331k homes FCF
Slide 10: Group Overview
10 Group Overview Q4 2023 12M 2023 OTE Group is the largest €930.2m €3,468.9m telecommunications provider in the Greek ROMANIA REVENUES (YOY +5.1%) REVENUES (YOY +0.4%) market with presence also in Romania. OTE is €341.1m €1,342.5m among the largest listed companies in the Athens ADJ. EBITDA (AL) (Y
Slide 11: Revenues & Adj. EBITDA (AL)
11 Revenues & Adj. EBITDA (AL) 930 Total Revenues (€m) 885 881 3,469 804 854 3,455 5.1% 1.1% 1.1% -2.0% -2.6% FY 2022 FY 2023 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 yoy change % Adj. EBITDA (AL) (€m) 37.5% 40.1% 40.0% 36.7% 38.3% 39.0% 38.7% 353 341 332 327 1,348 1,343 322 2.8% 0.0% -1.0% -1.8% -1.5% FY 2022
Slide 12: Capex
12 Capex Adjusted Capex (€m) 199 192 183 167 638 621 610-620 18.5% 80 17.9% 22.5% 19.5% 20.8% 20.6% 9.9% FY 2022 FY 2023 FY 2024 Guidance Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 As % of sales As % of sales Per Country (€m) Q4 2023 • FTTH footprint at 1.331 million homes and businesses as of Dec 31, 2023 • FTT
Slide 13: Cashflow
13 Cashflow Adjusted FCF (€mn) Q4’23: -23.9% yoy 1,293 352 1,165 309 315 308 234 229 116 654 51 544 153 148 (80) (638) (621) (199) (167) (183) (192) FY 2022 FY 2023 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Adjusted Capex Adj. Net operating CF Adj.FCF 226 Reported FCF (€m) Q4’23: -24.5% yoy 597 138 144 501 104 ~
Slide 14: Shareholder Remuneration Policy
14 Shareholder Remuneration Policy Shareholder Remuneration Policy 70%-100% Proposed Dividend Total Shareholders payout at €0.71 up +23% at €450m up +5% FCF distribution through a combination of dividends and share buybacks 70%-100% Starting from 2023, the cash dividend will account for at least 50%
Slide 15: Debt and Liquidity Profile
15 Debt and Liquidity Profile 0.5x 0.4x 0.3x 0.5x 0.5x 1,317 1,291 1,212 1,191 1,099 727 506 672 635 Net Debt/EBITDA 391 (464) Net Debt Net Debt/EBITDA (590) (519) (784) (821) at €635m (AL) at 0.5x Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Gross Debt Cash Net Debt ➢ On July 19 2023, S&P upgraded OTE to “BBB+” wi
Slide 16: Greece
OTE Group Q4 2023 Results Greece
Slide 17: Greece – Financial Overview
17 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 855 43.3% 42.9% 39.4% 3, 340 3,155 3,189 30. 0% 814 812 40.8% 40.9% 25. 0% 41.5% 41.6% 2, 840 787 20. 0% 736 1,326 348 1,310 332 322 337 2, 340 15. 0% 5.0% 319 10. 0% 1, 840 5. 0% 2.2% 2.4% -0.9% 3.2% 1.6% 0. 0% -2.2% 0.9% 1.6%
Slide 18: Greece – Financial Overview
18 Greece – Financial Overview Retail Fixed Revenues (€m) 933 915 Retail fixed service revenues up by 1.2%: 229 228 228 230 227 • Positive momentum in Broadband and TV revenues 1.2% • Lower legacy voice revenues -4.3% -3.7% -0.9% • Favorable comparison base due to transition from traditional voice -5
Slide 19: Greece – Fixed & Broadband KPIs
19 Greece – Fixed & Broadband KPIs OTE Fixed Lines Evolution (000) OTE Broadband lines Evolution (000) 2,342 2,346 2,359 2,318 2,333 2,701 2,701 2,699 2,691 2,693 20 15 13 9 4 2 02 0 -3 -8 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Additions Additions OTE BB Penetration on Fixed FMC
Slide 20: Greece – Fiber KPIs
20 Greece – Fiber KPIs Fiber Subscribers (000) 47% of subs on 100Mbps or more Fiber Penetration (on Broadband) 1,546 1,515 1,526 1,448 1,489 62% 64% 65% 65% 66% 41 25 21 18 11 Q4'22 Q1'23 Q2'23 Q3'23 Q4’23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Additions FTTH Retail Subscribers (000) 251 FTTH Homes Passed 19
Slide 21: Greece – COSMOTE TV
21 Greece – COSMOTE TV TV Subscribers (000) 678 665 Q4’23: +5.5% yoy 643 649 648 • UEFA Champions League & Europa League TV rights for 2021-2024 • Broadcasting rights of Key Greek football teams for 2023- 2025 • 8/14 Greek Superleague football teams 17 13 • Greek Football Cup broadcasting rights 6 •
Slide 22: Greece – Mobile KPIs
22 Greece – Mobile KPIs Total Subscribers (000) Q4’23: Post Paid +6.1% yoy 7,370 7,345 7,373 7,366 7,168 4,420 4,348 4,322 4,279 4,039 2,950 +4.5% 2,997 +5.3% 3,051 +5.5% 3,086 +6.1% 3,129 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Postpaid Prepaid Avg.Data usage* (GB) 14.2 Q4'23: +32% yoy 12.6 Another positive
Slide 23: Greece – Digitalization
23 Greece – Digitalization Smartphone penetration (%) 79% 80% 81% 81% 81% Mobile data bundle Remote Wi-Fi router subscription renewal, bill management, parental control payment, and ordering features and management of +2pp functionality for additional short-digit premium OTE services value-added ser
Slide 24: Mobile Network Superiority in Greece
24 Mobile Network Superiority in Greece OOKLA: Umlaut Best in Test certification, for 9th consecutive time, COSMOTE Fastest Mobile Network for 7th consecutive year for its mobile internet and voice services in Greece 116.59 56.08 61.28 MEDIAN DOWNLOAD SPEED (MBPS) MEDIAN UPLOAD SPEED (MBPS) MEDIAN LA
Slide 25: Romania
OTE Group Q4 2023 Results
Slide 26: Romania – Financial Overview
26 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 306 12.4% 287 5.9% 78 38 6.9% 6.5% 73 0.0% 5.1% 5.3% 69 69 71 17 3 5 5 4 0 FY 2022 FY 2023 FY 2022 FY 2023 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Adjusted Capex (€m) Adj. EBITDA (AL) Margin % 40 13 38 10 1
Slide 27: Romania – Financial Overview
27 Romania – Financial Overview Mobile Service Revenues (€m) 203 185 49 48 48 46 43 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 FY 2022 FY 2023 • Romania operations continue to be impacted by mobile termination rate (MTR) cuts, and an additional 50% reduction has been in place since the beginning of 2024 • Consis
Slide 28: Romania – Mobile KPIs
28 Romania – Mobile KPIs Q4'23: Post Paid +3.3% yoy Data Revenues (€m) Total Subscribers (000) 4,166 4,062 4,063 3,899 3,798 20 20 20 21 20 2,311 2,205 2,200 2,016 1,882 1,854 1,857 1,864 1,883 1,916 Q1'23 Q2’23 Q3’23 Q4’23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 &# Postpaid Prepaid Data Revenues as % o
Slide 29: Thank you.
Thank you.