Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — OTE Group — Q4 2021 Earnings Presentation
30 slides from Hellenic Telecommunications Organization Sa's earnings presentation, February 2022
Slide 1: OTE Group Q4 2021 Results
OTE Group Q4 2021 Results FEBRUARY 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
8 OTE Group Q4 2021 Results Financial Review
Slide 9: Highlights
9 Highlights GROUP GREECE Positive momentum continues Q4 ’21 FY ’21 +5.0% +3.4% • Solid Group Performance • Further growth in Greece +4.5% +7.2% REVENUES REVENUES REVENUES ADJ. EBITDA (AL) yielding a margin +12.4% +5.9% •Strong performances both in Greece and Romania • Strong Margin at 38.5% +2.1% +
Slide 10: Group Overview
10 Group Overview Q4 2021 12M 2021 OTE Group is the largest €892m €3,368m telecommunications ROMANIA REVENUES (YOY +5.0%) REVENUES (YOY +3.4%) provider in the Greek market with presence also in Romania. OTE is €332m €1,296m among the largest listed ADJ. EBITDA (AL) (YOY +12.4%) ADJ. EBITDA (AL) (YOY
Slide 11: Revenues & Adj. EBITDA (AL)
11 Revenues & Adj. EBITDA (AL) Total Revenues (€m) 940 861 892 30. 0% 3,259 3,368 849 828 25. 0% 840 788 20. 0% 15. 0% 740 8.0% 5.0% 10. 0% 1.8% -1.2% 640 5. 0% -2.3% 0. 0% 540 - 5. 0% - 10. 0% 440 - 15. 0% 340 - 20. 0% FY 2020 FY 2021 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 yoy change % Adj. EBITDA (AL) (€m)
Slide 12: Capex
12 Capex Adjusted Capex (€m) 544 620 162 161 161 559 137 19.1% 100 18.7% 18.0% 16.6% 16.7% 16.6% 12.7% FY 2020 FY 2021 FY 2022 Guidance Q4 ‘20 Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 As % of sales As % of sales Per Country (€m) Q4 2021 • FTTH footprint in 2021 at 563k households and businesses • FTTH: 3million
Slide 13: Cashflow
13 Cashflow Adjusted FCF (€mn) Q4’21: -41.7% yoy 1,200 1,149 418 300 277 309 263 656 590 255 163 163 149 116 (100) (137) (544) (559) (162) (161) (161) FY 2020 FY 2021 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Adjusted Capex Adj. Net operating CF Adj.FCF Reported FCF (€m) Q4’21: +15.8% yoy 600 157 483 116 108 413
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 50%/50% Split between dividends and share buybacks €500m FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 €250m D
Slide 15: Debt and Liquidity Profile
15 Debt and Liquidity Profile Leverage (€m) (IFRS amounts) 0.8x 0.8x 0.6x 0.6x 0.6x 1,556 1,678 1,668 Adjusted Net Debt/EBITDA 1,534 1,412 Adj. Net Debt Adj. Net Debt/EBITDA 1,034 925 787 776 stood at €776mn (AL) stood at 0.6x 764 (522) (608) (892) (904) (636) Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Gross Debt
Slide 16: Greece
16 OTE Group Q4 2021 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% 25. 0% 840 790 813 30. 0% 40.8% 41.1% 38.6% 41.6% 40.0% 43.3% 39.6% 2, 840 20. 0% 790 778 759 25. 0% 1, 340 1,265 15. 0% 740 717 20. 0% 1, 240 1,199 ) # % 2, 340 342 ( # & $ % 9.6% 1, 140 ) % 690 15. 0
Slide 18: Greece – Financial Overview
18 Greece – Financial Overview Retail Fixed Revenues (€m) 938 951 20. 0% Retail fixed service revenues up 2.1%: 241 241 15. 0% 261 236 233 236 10. 0% 211 5. 0% • Continuing strong momentum in broadband revenues on strong demand for fiber services 0. 0% 161 0.6% 2.0% 1.8% 2.1% -0.6% - 5. 0% 111 - 10. 0
Slide 19: Greece – Fixed KPIs
19 Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,716k 4,852 4,863 4,870 4,868 4,903 45% 45% 45% 45% 45% 99 55% 55% 55% 55% 55% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 OTE Market Share Competitors Market Share Net Additions (000) 36 OTE additions +17k 23 19 3 12 6 20 4 (2) 17 8 8
Slide 20: Greece – Broadband KPIs
20 Greece – Broadband KPIs Broadband Market Evolution (000) OTE Broadband Lines at 2,256k Market Penetration 4,263 4,299 4,329 4,348 4,402 88% 88% 89% 89% 90% 50% 49% 49% 49% 49% 80% 81% 82% 82% 83% 50% 51% 51% 51% 51% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 OTE Penetration Marke
Slide 21: Greece – Fiber KPIs
21 Greece – Fiber KPIs Fiber Subscribers (000) 23% of fiber subs enjoy speeds of 100Mbps or more Fiber Subscribers additions 1,100 1,149 1,005 1,056 945 59k 60k 51k 44k 49k 27.4% 27.6% 25.7% 24.1% 21.6% Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 yoy change % Fiber Penetration (on Bro
Slide 22: Greece – COSMOTE TV
22 Greece – COSMOTE TV TV Subscribers (000) 575 578 579 600 624 • +8.5% yoy increase in Customer base; Strong additions +24k • UEFA Champions League and Europa League TV rights renewed for 2021-2024 • Broadcasting agreements with eight out of fourteen Greek 21 12 24 Superleague football teams 3 1 •
Slide 23: Greece – Mobile KPIs
23 Greece – Mobile KPIs Total Subscribers (000) Q4'21: Post Paid +3.8% yoy 6,959 6,889 6,988 7,040 7,098 4,245 4,164 4,232 4,250 4,280 2,714 2,714 2,725 2,725 2,756 2,756 2,790 2,790 2,818 2,818 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Postpaid Prepaid *Handsets Internet Data Usage/GB of use per HI subscriber
Slide 24: Greece – Digitalization
24 Greece – Digitalization Smartphone penetration (%) COSMOTE app users at 3.8 million by end of the quarter. It has 76% 77% 77% 78% 78% became the major digital contact point with the customer. It includes features like: +2pp 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
26 OTE Group Q4 2021 Results Romania Mobile
Slide 27: Romania – Financial Overview
27 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 350 9.7% -5.7% 3.8% 9.0% 13.0% 12.6% 316 7.0% 84 81 83 77 75 31 25 11 10 7 3 FY 2020 FY 2021 FY 2020 FY 2021 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 -5 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Adjusted Capex (€m) Adj. EBITDA (AL) Margin % 17 54 14
Slide 28: Romania – Financial Overview
28 Romania – Financial Overview Mobile Service Revenues (€mn) 0.9% 56 55 54 56 56 231 222 FY 2020 FY 2021 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Mobile Service revenues were up 0.9%, marking another quarter of improving trends: Postpaid subscriber base posted further growth; +5.3% *Handsets Internet Data Usa
Slide 29: Romania – Mobile KPIs
29 Romania – Mobile KPIs Data Revenues (€m) Total Subscribers (000) &# 3,643 3,550 3,540 3,602 3,691 !% 22 21 20 20 19 !# 1,995 1,887 1,843 1,885 1,956 "% "# % 1,648 1,664 1,696 1,717 1,735 # Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Postpaid Prepaid Data Revenues as % of Service R
Slide 30: THANK YOU
THANK YOU