Telekom Austria Ag · VIE:TKA
Telekom Austria — Investor Presentation (June 2025)
37 slides from Telekom Austria's investor presentation, June 2025
Slide 1: Investor Presentation June 2025
Draft for internal discussion Investor Presentation June 2025 1 1
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 or by ›outlook‹. Actual events may differ materially from those anticipate
Slide 3: A1 at a glance: Former Austrian incumbent and a platform for growth in Eastern Europe
A1 at a glance: Former Austrian incumbent and a platform for growth in Eastern Europe Belarus 5.4 bn 2.0 bn 37 % Total revenues EBITDA EBITDA margin Austria Slovenia Croatia 27.1 mn 6.4 mn 40 EurC Serbia Bulgaria Fixed RGUs Dividend North Wireless subscribers Macedonia ~12% CAGR last 6 years #1 #3 0
Slide 4: Well-balanced performance across geographic footprint
Well-balanced performance across geographic footprint Revenue split (FY 2024) Growth driver CEE EBITDA split (FY 2024) Bulgaria 15% YoY Growth rate 2024 Bulgaria 17% Croatia Croatia 11% 11% 5.6% Belarus +7.7% Belarus 8% 10% CAGR Slovenia Slovenia 4% 3% +1.7% Serbia CAGR Serbia 0.3% 7% 7% Austria N-M
Slide 5: Market Shares
Market Shares Austria Bulgaria Croatia Belarus Serbia Slovenia N.-Macedonia 41% 28% 28% Mobile 35% 37% 43% 52% #1/3 #2/3 #2/3 #2/3 #3/3 #2/4 #1/2 1% 8% 55% 32% 10% 34% 30% Fixed #1/3 #2/2 #2/3 #2/2 3/3 #4/4 #2/3 Mobile and fixed market positions both based on Service Revenues Market Shares per Q4 20
Slide 6: Financials
Financials
Slide 7: Financial performance
Financial performance (Unless otherwise stated, in € mn) Revenues EBITDA Free cash flow +3% +5% +62% 5,005 5,251 5,413 1,924 2,021 603 575 1,838 354 36.7% 36.6% 37.3% 2022 2023 2024 2022 2023 2024 2022 2023 2024 EBITDA margin CAPEX (incl frequencies) Net debt Balance sheet & equity ratio -21% 9,557
Slide 8: Sustainable growth and strong free cash flow
Sustainable growth and strong free cash flow Revenues consistently growing EBITDA increased significantly Robust free cash flow CAGR CAGR Avg. 4.4% 6.4% € 505 mn/yr 5,251 5,413 1,924 2,021 4,748 5,005 1,838 4,549 1,577 1,706 603 575 504 487 354 35% 36% 37% 37% 37% 11% 12% 11% 10% 7% 2020 2021 2022 2
Slide 9: Sustainably rising dividend and strong deleveraging as solid foundation for future growth
Sustainably rising dividend and strong deleveraging as solid foundation for future growth Sustainable dividend policy Net debt reduction Dividend per share, in EURc >12% 0.95 0.94 EPS CAGR 0.97 0.80 0.76 0.73 0.91 0.58 0.52 0.53 0.68 FCF/ 0.58 share 2.0 0.36 0.4 1.7 0.49 0.28 0.32 0.36 1.3 1.3 40 DP
Slide 10: Strong growth performance within peer group
Strong growth performance within peer group Revenues, CAGR EBITDAaL adj., CAGR Standard & Poor’s rating 2020-2024 2022-2024 2020-2024 2022-2024 A1 Group 4.4% 4.0% 5.9% 3.5% Proximus AA+ OTE AA AA- Telia A+ A Telenor A- A1 Group Telenor + Swisscom + KPN BBB+ Orange DT OTE Telia Proximus + BBB KPN Ora
Slide 11: Performance full year 2024
Performance full year 2024 5,413mEUR 4,502mEUR 2,021mEUR 575mEUR +3.1% +3.5% +5.1% +62.5% Total revenues Service Revenues EBITDA Free cash flow Service revenue growth drivers, YTD Total revenue growth – Group and International, YTD +3.5% +7% in CCY +10% in CCY 5.6% 9.5% 8.6% 4,502 3.9% 0.3% 1.6% 4,3
Slide 12: Strategy
Strategy
Slide 13: Strategy follows the vision: Empowering digital life
Strategy follows the vision: Empowering digital life Evolve the core Explore the new Transparency & Growth & Autonomy Inspiration • From network to • Scaling-up the portfolio connectivity plus Take Learn & • Develop eco-systems and • From product driven to ownership innovate partnerships to enrich c
Slide 14: Accelerating growth from B2B Digital Services
Accelerating growth from B2B Digital Services Growth pillars Total Revenues Gross, mEUR Since 2021… … with Potential CAGR +19% Cloud +30% SME 466 479 Security +33% ~99% 58% Doubled 370 Enterprises Level of Global cyber in Europe digitalisation attacks in 4 yrs 285 enabled by Capabilities for SME ena
Slide 15: Unfolding our business opportunities
Draft for internal discussion Unfolding theopportunities Unfolding our business opportunities Evolve the CORE Evolve Extend Expand Enable Push Scale CORE B2B SME SME Financial Financial the #1 to #1 Digital Services (ICT) Business Services Services 15 15 15
Slide 16: Unfolding our business opportunities: Evolve the CORE to #1
Unfolding our business opportunities Evolve the CORE to #1 From Product to From Network to Customer Journey Connectivity @Scale Plus 16
Slide 17: Gain scale to further grow
Gain scale to further grow … investments in the markets are needed with a standardized delivery AT BLR BLG CRO A1D MAC SLO SRB • Build on our local sales Customer facing Sales asset LOCAL ALONG CUSTOMER JOURNEYS Product Ideation & Marketing • Investments in the markets Customer Service & Field Servi
Slide 18: Sustainability
Sustainability ‘eo usc! @® oe EUROPEAN GREEN ccc] 8 | 98 | eee EWN AA [AAA DIGITAL COALITION >I Ton SH, ecovadis ‘SEP 2024 18 oS JAC COOPERATION Al
Slide 19: 2025-2030 ESG Strategy
2025-2030 ESG Strategy CO2 emissions Energy efficiency Circularity E-Waste Net-Zero goal by 2030 80% goal 50% goal Zero-equipment to landfill Scope 1&2: -90% Increase energy efficiency to By 2030, the takeback of devices* Sustainable treatment* of 100% of Scope 3: -60% reduction 80% by 2030 (BY 2019
Slide 20: The share
The share
Slide 21: Shareholder structure
Shareholder structure Two strong shareholders ÖBAG (Österreichische Beteiligungs AG) ÖBAG • ÖBAG: independent holding company of state 28.4% assets. Mission is to preserve and grow its investments for generations. • Investment portfolio includes also: OMV, Retail Verbund, Post, Casinos Austria, etc.
Slide 22: Syndicate agreement between América Móvil and ÖBAG
Syndicate agreement between América Móvil and ÖBAG On February 6, 2023, both parties agreed on a new syndicate agreement with a term of 10 years. The publicly known cornerstones of this agreement are the following: General • Headquarters to remain in Austria • Commitment to the listing at the Vienna
Slide 23: Share price
Share price AT0000720008 Tela.VI TKA AV • Shares outstanding: 664,084,841 • Listing: Vienna Stock Exchange 180 Institution Rating Price (€) AlphaValue/Baader Europe Buy 10.70 TKA 160 Bank Pekao Hold 9.70 Bernstein Buy 10.80 ATX 140 STOXX Citigroup Hold 8.30 Europe 600 Telecoms Erste Group Bank Buy 9
Slide 24: Outlook
Outlook
Slide 25: Revenues and CAPEX outlook
Revenues CAPEX +2-3% ~ € 800 mn p.a. CAPEX ex. spectrum 25 15
Slide 26: Capital allocation follows conservative financial policy for long-term value creation within rating framework
Capital allocation follows conservative financial policy for long-term value creation within rating framework Conservative Sustainable Value-accretive financial policy dividend policy M&A Developing in line with operational I. In market consolidation Ambition on leverage on and financial performance
Slide 27: Investment Case Telekom Austria
Draft for internal discussion Investment Case Telekom Austria Leading telco across CEE • Among top 2 mobile operators in 6 out of 7 core markets • 30 million customers in Europe • >80% of Group EBITDA in investment-grade rated countries Top performing incumbent telco in Europe • Strong growth rates,
Slide 28: Appendix
Appendix
Slide 29: Management Board
Management Board Deputy CEO CEO Alejandro Plater (*1967, Argentina) Thomas Arnoldner (*1977, Austria) • Board member since August 2015 • Board member since September 2018 o 2015-2018 as CEO, 2018-2023 as COO o 2018-2023 as CEO • Before A1, senior roles at Ericsson • Before A1, board functions at Alc
Slide 30: Conservative financial policy and investment-grade ratings
Conservative financial policy and investment-grade ratings As of March 31, 2025 Overview (March 31, 2025) Lines of credit (March 31, 2025) Credit ratings • Total financial debt: EUR 749 mn • Total committed lines: EUR 1,315 mn • Average cost of debt: 1.50% o Average term to maturity: A3/A- 1.71 year
Slide 31: P&L Q1 2025
P&L Unless otherwise stated, all Q1 2025 Q1 2025 Q1 2024 Δ amounts in EUR mn Revenues 1,314 1,267 +3.7% Core OPEX excl. restructuring OPEX (837) (813) +2.9% decreased by 1.6% EBITDA 478 454 +5.2% • Supported by lower costs for network Margin 36.4% 35.9% +0.5pp maintenance and lower total one-off eff
Slide 32: Free Cash Flow
Free Cash Flow Q1 2025 Unless otherwise stated, all amounts Q1 2025 Q1 2024 Δ in EUR mn EBITDA 478 454 5.2% Free Cash Flow in Q1 2025 higher due Restructuring charges, cost of labor 37 22 64.6% to obligations Lease paid (principal, interest, (104) (97) 7.5% • Higher operational result, prepayments)
Slide 33: Focus Topics
Focus Topics
Slide 34: A1 Austria | Multi-technology strategy and diligent CAPEX spend
A1 Austria | Multi-technology strategy and diligent CAPEX spend Fragmented market High rollout costs Mobile substitution Reinforced partnering Reprioritized rollout Fixed wireless access Targeted partnering with Lower rollout costs and Provide ‘fixed-like’ mobile selective networks increase take-rat
Slide 35: A1 Austria | Prioritizing sustainable growth over rapid deployment
A1 Austria | Prioritizing sustainable growth over rapid deployment Fibre 5G • Fixed | Monetizing investments by improving connect/pass ratio • Mobile | 5G | From pop coverage to capacity increase FTTP Homes passed YE24 Pop. Coverage YE24 Growth in advanced BB RGUs & ARPL X- & Up-selling € 38 ARPL BB
Slide 36: AT Restructuring | long term transformation with mid-term positive impact on FCF
AT Restructuring | long term transformation with mid-term positive impact on FCF Constant decrease of civil servant … and lower EWFs, slowing down …resulting in mid-term share driven by social plans … inflation-driven TWC increase free cash flow upside Inflation 2.0% 8.6% 7.8% -21% 7.625 2.7% 2,014
Slide 37: Contacts
Draft for internal discussion Contacts Susanne Aglas-Reindl Head of Investor Relations Telekom Austria AG Lassallestraße 9 1020 Wien M +43 664 66 39420 T +43 50 664 39420 @ susanne.aglas-reindl@A1.group 37 37