Hrvatski Telekom d.d. · ZSE:HT
Hrvatski Telekom d.d — Hrvatski Telekom — FY2013 Earnings Presentation
18 slides from Hrvatski Telekom d.d's earnings presentation, Feb 14, 2014
Slide 1: Business and Financial Review January – December 2013
BUSINESS AND FINANCIAL REVIEW JANUARY – DECEMBER 2013 14 FEBRUARY 2014
Slide 2: Disclaimer
Disclaimer These materials and the oral presentation do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company nor should they or any part of them or the fact of their distribution form the
Slide 3: Challenging environment due to prolonged recession in Croatia
Challenging environment due to prolonged recession in C ti Croatia Real GDP growth Percent Comments -0.2 Credit rating of sub-investment grade -1.0 set by all three major rating agencies Croatia entered Excessive Deficit -1.9 Procedure – EU supervision -2.3 mechanism due to fiscal imbalance Unem
Slide 4: Fixed and mobile voice market in Croatia is shrinking
Fixed and mobile voice market in Croatia is shrinking… Annual change Revenue Number of subscribers HRK million Million Penetration % Comments 13 active operators in the market (incl. those providing -14% fixed line over VOIP) Fixed -3% voice Minutes of use decreased 789 682 1.49 1.45 by 17.7% in
Slide 5: Partly offset by growth in fixed Broadband and PayTV
…partly offset by growth in fixed Broadband and PayTV Annual change Revenue Number of subscribers HRK million Million Penetration % Comments +5% +10% +34% Broadband lines at 916k in Q3 2013 ((+4% yyoy) y) Fixed Low fixed line BB Broad- 615 644 1.25 1.38 67.0 band household penetration vs. 50.0 W
Slide 6: Decrease in revenue led by fixed and mobile services, partially offset by ICT
Decrease in revenue led by fixed and mobile services, partially ti ll offset ff t by b ICT HRK million R Revenue b kd breakdown C Contribution ib i to revenue change h 7,555 -6.8% 7,042 Down due to Other1 572 general 641 IP 1,527 usage trends -218 1,565 Wholesale 639 567 From July 2013 mobile & whol
Slide 7: T-HT's financial results reflect market conditions
T-HT’s financial results reflect market conditions – Margin % All in HRK million, except where stated differently EBITDA before except. items1 CAPEX2 Fall in profitability due to change in product mix 46.6 -12.9 % 43.5 +20.8 % (increasing share in revenues of lower-margin products, such as ICT) 3,
Slide 8: In residential segment, decrease in voice partially offset by non-voice
In residential segment, decrease in voice Miscellaneous Terminal equipment partially ti ll offset ff t by b increase i in i non-voice i Non voice revenue Voice revenue Revenue break-down break down HRK million Comments 4,160 -4.0% Revenue down mainly as a result of 11.7% 11 7% lower 3 992 3,992 13
Slide 9: In business segment, strong growth in ICT softened decrease in voice revenue
In business segment, strong growth in ICT Miscellaneous Terminal equipment softened ft d decrease d iin voice i revenue Other service Non voice revenue Voice revenue Revenue break-down break down1 HRK million Comments 3,396 -10.2% 25.4% lower voice revenue, in fixed and mobile, 167 in both retail
Slide 10: T-HT maintained market share in mobile
T-HT maintained market share in mobile Market share by subscribers1 Number of subscribers Other mobile Thousands-1.0% Prepaid Postpaid Data operators 2,326 2,303 +2.7% 2 7% T-HT 1,315 1,232 53.5% 53.4% 1,303 1,269 46.5% 46.6% 1,011 1,070 End-2012 End-2013 End-2012 End-2013 End-2012 End-2013 ARPU A
Slide 11: Number of fixed lines and ARPA decreased in 2013
Number of fixed lines and ARPA decreased in 2013 Number of mainlines1 ARPA Thousands HRK -4.6% Wholesale -10.1% 1,312 1,251 Retail 115 104 103 118 1,208 1,133 End 2012 End-2012 End 2013 End-2013 2012 2013 Number of ULL Th Thousands d + 6.7% Substitution of fixed traffic with mobile and IP 162 173
Slide 12: Number of BB and TV customers continues to grow
Number of BB and TV customers continues to grow No. of broadband access lines1 Broadband retail ARPA1 Thousands +1.8% Wholesale HRK 658 670 Retail +1.4% 25 41 633 628 126 127 End-2012 End 2012 End-2013 End 2013 2012 2013 Number of TV customers2 MaxADSL “double speed” promotion launched in Thousand
Slide 13: HT will retain 48.5% of 2013 net profit to intensify investments
HT will retain 48.5% of 2013 net profit in order to intensify i investments t t iin infrastructure i f t t andd regional i l expansion i HT will pay 51.5% of 2013 net profit (HRK 737 million) to shareholders via dividend, or HRK 9 per share HT will re-invest 48.5% of 2013 net profit (HRK 694 mil
Slide 14: Appendix
Appendix c | : Hrvatski aie fe a LIFE IS FOR SHARING. Telekom
Slide 15: Consolidated income statement
Consolidated income statement HRK millions illi Percent of change Percent of change Jan-Dec 2013 Jan-Dec 2012 13/ 12 Oct-Dec 2013 Oct-Dec 2012 13/ 12 Mobile1 2,839 3,168 -10.4% 712 763 -6.8% Fixed Telephony 1,431 1,649 -13.2% 13.2% 336 391 -14.2% 14.2% Wholesale 567 639 -11.3% 140 148 -5.4% IP Reven
Slide 16: Consolidated balance sheet
Consolidated balance sheet HRK millions illi Percent of change At Dec 31, 2013 At Dec 31, 2012 13/12 Intangible assets 11,358 358 11,142 142 18.8% 18 8% Property, plant and equipment 5,570 5,734 -2.8% Non-current financial assets 594 897 -33.7% Receivables 126 21 499.9% Deferred tax asset 60 65 -8.1
Slide 17: Consolidated cash flow statement
Consolidated cash flow statement HRK millions illi Percent of change Jan-Dec, 2013 Jan-Dec, 2012 13/ 12 Profit before tax 11,629 629 22,092 092 -22.1% 22 1% Depreciation and amortization 1,366 1,326 3.0% Increase/decrease of current liabilities 55 105 -47.5% Increase/decrease of current receivables
Slide 18: Investor relations contact
Investor relations contact Erika Kašpar Tel: + 385 1 4912 000 Elvis Knežević Tel: + 385 1 4911 114 Anita Marić Šimek Š Tel: +385 1 4911 884 e-mail: il ir@t.ht.hr i @t ht h www.t.ht.hr/eng/investors/ LLondon d St Stockk EExchange h GDR ttrading di symbol: b l THTC Zagreb Stock Exchange Shar