Hellenic Telecommunications Organization Sa · ATHEX:HTO

Hellenic Telecommunications Organization Sa — Q1 2023 Earnings Presentation

29 slides from Hellenic Telecommunications Organization Sa's earnings presentation, 2023

  1. Slide 1: OTE Group Q1 2023 Results

    Se a 2. : a>,” os ees m : : ‘i ff ie € Bs- =i S . ee ae a OTE Group AN Q12023 Results

  2. 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

  3. 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 COST OPTIMIZATION • Introduction and evaluation of • Accelerate FTTH • Digital Transformation • ICT

  4. 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

  5. Slide 5: 2022 ESG Targets - Performance

    5 2022 ESG Targets- Performance 2022 PERFORMANCE CLIMATE CHANGE OTE Group contributes to DT Group Climate Change Targets: • Net Zero for direct and indirect energy consumption including up to 95% reduction by 2025 • Scope 1 & 2: 86% CO2 reduction (vs 2017) • 100% Renewable electricity (2021 onwards)

  6. Slide 6: Sustainability Strategic Priorities: Commitments 2023 onwards

    6 Sustainability Strategic Priorities: Commitments 2023 onwards CLIMATE NEUTRALITY- Updated Targets OTE Group1 contributes to DT Group Climate Change Targets: • Net Zero for direct and indirect energy consumption (scope 1 & scope 2), including up to 95% reduction by 2025. • 100% Renewable electricit

  7. 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 included in

  8. Slide 8: Financial Review

    “er Supeenees Ttittiiiiiigd ‘Lanes Oh. 2tttt: Financial Review OTE Group Q12023 Results

  9. Slide 9: Highlights

    9 Highlights GROUP GREECE Solid start to the year Q1 ’23 -2% -1% • High Comparable base in Romania +1.6% +43.3% +2.7% REVENUES ADJ.EBITDA (AL) • Solid Greek performance ADJ. EBITDA (AL) MARGIN MOBILE SERVICE REVENUES ADJ. EBITDA (AL) MARGIN AT 40.1% FTTH subscribers FTTH network +29k at 166k 911k ho

  10. Slide 10: Group Overview

    10 Group Overview Q1 2023 OTE Group is the largest €804m €226m telecommunications provider in the Greek ROMANIA REVENUES (YOY -2.0%) FCF (YOY +1.9 %) market with presence also in Romania. OTE is among the largest listed companies in the Athens €322m €5.8b Stock Exchange. MARKET CAP ADJ. EBITDA (AL)

  11. Slide 11: Revenues & Adj. EBITDA (AL)

    11 Revenues & Adj. EBITDA (AL) Total Revenues (€m) 845 905 885 820 3,455 804 3,336 5.9% 4.7% 2.6% 1.1% -2.0% FY 2021 FY 2022 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 yoy change % Adj. EBITDA (AL) (€m) 39.7% 39.6% 40.1% 39.4% 39.0% 37.5% 38.8% 358 1,348 325 333 332 322 1,296 8.0% 7.2% 1.6% 0.0% -1.0% FY 2021 FY

  12. Slide 12: Capex

    12 Capex Adjusted Capex (€m) 199 178 168 638 640 559 93 18.5% 80 22.5% 16.8% 19.9% 19.7% 11.3% 9.9% FY 2021 FY 2022 FY 2023 Guidance Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 As % of sales As % of sales Per Country (€m) Q1 2023 • FTTH footprint at 941k households and businesses as of March 31, 2023 €70m • FTTH:

  13. Slide 13: Cashflow

    13 Cashflow Adjusted FCF (€mn) Q1’23: +0.4% yoy 1,293 352 1,149 321 328 309 292 654 228 229 590 160 153 114 (93) (80) (559) (638) (168) (178) (199) FY 2021 FY 2022 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Adjusted Capex Adj. Net operating CF Adj.FCF 222 226 Reported FCF (€m) Q1’23: +1.9% yoy 157 597 138 500 483

  14. Slide 14: Shareholder Remuneration Policy

    14 Shareholder Remuneration Policy Dividend per Share (€) Shareholder Remuneration Policy 0.68 0.68 0.58 70%-100% 0.55 0.56 FCF Distribution through a combination of dividends and share buybacks 0.46 €425m €250m Dividends; €0.577 Dividend/share paid on July 11, 2023 €175m in Share Buybacks FY 2018 F

  15. Slide 15: Debt and Liquidity Profile

    15 Debt and Liquidity Profile 0.4x 0.4x 0.6x 0.5x 0.4x 1,539 Net Debt/EBITDA 1,393 1,298 1,317 1,291 621 537 506 Net Debt Net Debt/EBITDA 774 727 (AL) stood at 0.4x stood at (772) (524) (590) €506m (1,002) (784) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Gross Debt Cash Net Debt Debt Maturity Profile (€m) (Nominal

  16. Slide 16: Greece

    OTE Group Q12023 Results Greece

  17. Slide 17: Greece – Financial Overview

    17 Greece – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 3,340 3,046 3,155 30.0% 830 814 42.2% 41.5% 41.6% 40.8% 43.3% 25.0% 41.5% 41.5% 2,840 20.0% 743 768 1,310 736 1,265 346 332 2,340 15.0% 314 319 319 10.0% 6.1% 4.3% 1,840 5.0% 1.8% 2.2% 0.0% -0.9% 5.1% 5.1% 3.2% 1,340 1.0% 1.6%

  18. Slide 18: Greece – Financial Overview

    18 Greece – Financial Overview Retail Fixed Revenues (€m) 951 933 Retail fixed service revenues decreased by 4.3%: 240 236 230 227 229 • Lower voice and TV revenues 2.8% 0.1% • Broadband growth affected by speed upgrades implemented in 2022 and competitive offerings, expanding customer base -4.6% -4.

  19. Slide 19: Greece – Fixed & Broadband KPIs

    19 Greece – Fixed & Broadband KPIs OTE Fixed Lines Evolution (000) OTE Broadband lines Evolution (000) 2,269 2,287 2,298 2,318 2,333 2,713 2,714 2,702 2,701 2,701 13 18 20 15 11 24 -3 1 02 0 -12 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Additions Additions OTE BB Penetration on Fix

  20. Slide 20: Greece – Fiber KPIs

    20 Greece – Fiber KPIs Fiber Subscribers (000) 45% of subs on 100Mbps or more Fiber Penetration (on Broadband) 1,415 1,489 1,430 1,448 1,208 207 53% 62% 62% 62% 64% 41 15 18 59 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Additions FTTH Retail Subscribers (000) FTTH Homes Passed 166 9

  21. Slide 21: Greece – COSMOTE TV

    21 Greece – COSMOTE TV TV Subscribers (000) Q1’23: +1.9% yoy 642 644 643 649 637 • UEFA Champions League and Europa League TV rights renewed for 2021-2024 • 8/14 Greek Superleague football teams • Agreement for the broadcasting rights of the leading football team of the Greek league, Olympiakos, for

  22. Slide 22: Greece – Mobile KPIs

    22 Greece – Mobile KPIs Total Subscribers (000) Q1'23: Post Paid +4.5% yoy 7,411 7,370 7,345 7,322 7,181 4,424 4,487 4,420 4,348 4,311 +5.2% 2,899 +4.8% 2,924 +4.7% 2,950 +4.5% 2,997 2,869 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Postpaid Prepaid Avg.Data usage* (GB) 11.1 Q1'23: +67% yoy Another positive “COSM

  23. Slide 23: Greece – Digitalization

    23 Greece – Digitalization Smartphone penetration (%) COSMOTE app users at 3.7 million by end of the quarter - the 78% 79% 78% 78% 78% major digital contact point with the customer. Mobile data bundle Remote Wi-Fi router subscription renewal, bill management, parental control payment, and ordering f

  24. Slide 24: Mobile Network Superiority in Greece

    24 Mobile Network Superiority in Greece OOKLA: P3 Best in Test certification, for 8th consecutive time, for its COSMOTE Fastest Mobile Network for 6th consecutive year mobile internet and voice services in Greece 112.83 45.61 49.41 AVERAGE DOWNLOAD SPEED (MBPS) AVERAGE UPLOAD SPEED (MBPS) AVERAGE LAT

  25. Slide 25: Romania

    OTE Group Q12023 Results

  26. Slide 26: Romania – Financial Overview

    26 Romania – Financial Overview Total Revenues (€m) Adj. EBITDA (AL) (€m) 316 12.4% 306 9.7% 14.9% 17.5% 16.4% 5.1% 78 78 77 0.0% 73 69 38 14 31 12 13 3 0 FY 2021 FY 2022 FY 2021 FY 2022 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Adjusted Capex (€m) Adj. EBITDA (AL) yoy change % Mar

  27. Slide 27: Romania – Financial Overview

    27 Romania – Financial Overview Mobile Service Revenues (€mn) 222 203 52 51 51 49 48 FY 2021 FY 2022 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Mobile Service revenues were down 8.8%, partially due to the impact of mobile termination rate (MTR) Postpaid subscriber base posted further growth; +6.2% and +6.4% incr

  28. Slide 28: Romania – Mobile KPIs

    28 Romania – Mobile KPIs Q1'23: Post Paid +6.2% yoy Data Revenues (€m) Total Subscribers (000) 4,166 4,062 4,082 3,821 3,941 19 19 20 20 2,311 18 2,154 2,205 2,072 2,154 1,824 1,854 1,857 1,749 1,787 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 &# Postpaid Prepaid Data Revenues as % o

  29. Slide 29: Thank you.

    Thank you.

Hellenic Telecommunications Organization (OTE Group) — Q1 2023 Earnings Presentation on 6ix