Telecom Argentina Sa Class B · BCBA:TECO2
Telecom Argentina Sa Class B — Q1 2020 Earnings Presentation
22 slides from Telecom Argentina Sa Class B's earnings presentation, May 2020
Slide 1: Company Presentation
TELECOM ARGENTINA Company Presentation May 2020
Slide 2: Disclaimer
This presentation may contain statements that could constitute forward-looking statements, including, but not limited to (i) the Company’s expectations for its future performance, revenues, income, earnings per share, capital expenditures, dividends, liquidity and capital structure; (ii) the continu
Slide 3: Inflation adjustment under Resolution 777/18 (Disclaimer)
The Company has accounted for the effects of inflation adjustment adopted by Resolution 777/18 of the Comisión Nacional de Valores (“CNV”), which establishes that the restatement for inflation will be applied to the annual financial statements, for intermediate and special periods ended as of Decemb
Slide 4: Agenda
AGENDA 01 02 03 BUSINESS FINANCIALS Q&A HIGHLIGHTS 3
Slide 5: 1Q20 in Figures
1Q20 IN FIGURES Revenues EBITDA EBITDA Margin 974 U$S mm* 342 U$S mm* 35.1% Million mobile 18.8 subscribers in Argentina 3.5 Million Pay TV subscribers Million Million 4.1 broadband subscribers 3.1 fixed subscribers Million Of broadband 1.7 convergent unique clients 41% clients with mobile bundle *
Slide 6: Revenues Breakdown
REVENUES BREAKDOWN SERVICE REVENUES REVENUES BREAKDOWN Million of P$ Million of P$ -3% 5,1% 0,3% 15,1% 36,8% 61.572 59.559 20,9% 1Q19 IAS 29 1Q20 IAS 29 21,8% REVENUES COMPOSITION Mobile Broadband Pay TV Billion of P$ Fixed & Data Handsets Other 23,1 22,0 13,7 15,1 14,2 13,1 9,5 10,2 3,2 4,2 0,2 0,2
Slide 7: Drivers of Growth
DRIVERS OF GROWTH MOBILE DATA USAGE POSITIVE CLIENTS INFLOW (1Q20) In Thousand Source: ADB +11% 304,1 272 3,4 3,8 32,1 Port in Port out Net 1Q19 1Q20 Peer 1 Personal Peer 2 BROADBAND SPEEDS FLOW BOXES Flow for In Thousand FTTH and Of total subscribers with xDSL networks 52% speeds between 50 and 300
Slide 8: Actions Taken Due to COVID-19
ACTIONS TAKEN DUE TO COVID -19 Implementation of the home office system before the local Government decided to do Home-office so. Around 10,500 notebooks were granted to employees. Webex teams is being used to connect among us. Our VPN system has a total of 17,000 units working as of today. Technica
Slide 9: Actions Taken Due to COVID-19
ACTIONS TAKEN DUE TO COVID -19 Digital COVID-19 accelerated the process of converting Telecom into a pure Transformation digital company in a very short time frame. Telecom also implemented several digital payment alternatives that were Digital CLIENTS not in place prior to COVID-19. Our customers a
Slide 10: Actions Taken Due to COVID-19: Regulatory Aspects
ACTIONS TAKEN DUE TO COVID -19 On March 24th, the Executive Power issued Decree No. 311/2020, which determined New for a certain group of clients defined therein, the temporary suspension of the Decree interruption in case of non-payment of fixed and mobile telephony, internet and cable TV services,
Slide 11: Data Traffic Increase After COVID-19
DATA TRAFFIC INCREASE AFTER COVID-19 Distribution Network Broadband to the Home Global Internet Other Suppliers Upload International +40% +75% Connections Download +50% +50% Voice Traffic Cloud Interconnection Network +50% Services Mobile Services +45% Telecom Datacenter Data Traffic +20% 10
Slide 12: Traffic by Service After COVID-19
TRAFFIC BY SERVICE AFTER COVID-19 Gaming Video +12% VPN Streaming +38% +24% Video Conference +1000% Social Networks +1% Storage File Sharing WhatsApp +600% +110% Call Mobile Duration Voice +24% Traffic +17% 11
Slide 13: Inflation Evolution
INFLATION EVOLUTION Weighing within the index Food and non-alcoholic beverages 26.97% YoY Inflation: Transport 10.99% 48.3% Clothes and Shoes 9.91% Housing water, electricity and other fuels 9.40% Restaurants and hotels 8.97% Healthcare 8.00% Recreation and culture 7.25% Quarterly Home furnishing an
Slide 14: Revenues and EBITDA Evolution
REVENUES EBITDA Million of P$ Million of P$ Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes) Figures -5% +53% +3% 62,762 35,8% 35,1% +44% 65,735 400 00 33,7% 32,7% 1.765 35% 22,025 350 00 30% 23.275 21,488 300 00 164 25% 250
Slide 15: IAS 29 EBITDA 1Q20 – 1Q19
IAS 29 EBITDA 1Q20 – 1Q19 YoY IFRS, Million of P$ Variation +P$537 (+2.5%) Ss. Revenues & other Handsets Administrative Commercialization EBITDA 1Q19 incomes Sales Handsets Costs Operative Expenses Expenses Expenses EBITDA 1Q20 150% 29000 1.685 130% 21.488 2.013 693 146 24000 986 22.025 110% 960 90%
Slide 16: Consolidated Results
CONSOLIDATED RESULTS 9M18 IAS 299M19 IAS 29 ∆$ ∆% D&A $ 33,807 $ 38,820 $ 5,013 15% OPERATING INCOME NET INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage Historical Figures Inflation Adjusted Historical Figures Inflation Adjusted (modeling purposes) Figures (modeling purposes)
Slide 17: Capex
CAPEX DEVELOPMENT INCLUDING RIGHTS OF USE 1Q20 HIGHLIGHTS Million of P$ -26% More than 90 new sites were deployed. 13.446 9.985 1,700 FTTH blocks and 590 1Ghz. HFC blocks were enabled. 1Q19 IAS 29 1Q20 IAS 29 TECHNICAL CAPEX BREAKDOWN The capacity plan of the HFC access was redefined due to COVID-19
Slide 18: Cash Flow
CASH FLOW FCF GENERATION 1Q19 FCF GENERATION 1Q20 Million of P$ Million of P$ 21,488 11,926 22,025 8,712 8,067 162 9,400 516 8,884 5,246 427 4,819 EBITDA CAPEX * WK & Others OFCF Taxes FCF EBITDA CAPEX * WK & Others OFCF Taxes FCF YoY Variation IFRS, Million -P$4,065 U$S 138 -135 81 -7 74 333 -185 -
Slide 19: Key Figures
KEY FIGURES In P$ Millions LTM1Q20 FY19 Revenues 252,538 255,511 EBITDA 83,633 83,096 Gross Debt 171,129 163,851 Cash & Equivalents 37,031 29,290 Net Debt 134,098 134,561 Capex* 66,305 69,519 EBITDA-Capex* 17,328 13,577 Ratios LTM1Q20 FY19 EBITDA Margin 33.1% 32.5% Interest Coverage 6.65x 7.2x Gross
Slide 20: Debt Breakdown as of March 2020
DEBT BREAKDOWN AS OF MARCH 2020 U$S P$ GUA Total (U$S) (million) (million) (million) (million) Class A Bond 2021 465 - - 465 Class I Bond 2026 400 400 Ve n d o r F i n a n c i n g 95 - - 95 IFC Loan 250 - - 250 IFC New Loan 310 - - 310 IIC Loan 63 - - 63 Te r m L o a n d u e 2 0 2 2 140 - - 140 Deut
Slide 21: Latest Financing Transactions
LATEST FINANCING TRANSACTIONS • A peso-denominated bilateral loan agreement with Banco Macro was closed for an amount equivalent to U$S 62 million, maturing in September 2021. • A new disbursement from the Finnvera credit facility was received, amounting to US$10.5 million dollars. • A new Series of
Slide 22: Investor Relations Contact
Investor Relations Contact Telephone: (5411) 4968 3628 E-mail: relinver@teco.com.ar