Telecom Italia S.p.A. · MIL:TIT
Telecom Italia — H1 2011 Earnings Presentation
23 slides from Telecom Italia's earnings presentation, Aug 5, 2011
Slide 1: Telecom Italia 1H 2011 Results
TELECOM ITALIA GROUP 1H 2011 Results Milan, August 5th, 2011 Telecom Italia 1H 2011 Results FRANCO BERNABE’
Slide 2: Safe Harbour
TELECOM ITALIA GROUP 1H 2011 Results Safe Harbour These presentations contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements re
Slide 3: Agenda
TELECOM ITALIA GROUP 1H 2011 Results Agenda TI Group 1H11 Results Telecom Italia Core Markets Results Italy Brazil Argentina Appendix FRANCO BERNABE’ 2
Slide 4: TI Group 1H11 Key Achievements
TELECOM ITALIA GROUP 1H 2011 Results TI Group 1H11 Key Achievements Operating Free Cash Flow: 2.5 bln € (+360 mln € YoY, +16.7%YoY) Group Reported Revenues: 14.5 bln € (+10.0% YoY, Org. +1.0% YoY) Group Reported Ebitda: 6.0 bln € (+4.3% YoY) Focus on Group Organic Ebitda: 6.0 bln € (-2.0% YoY) Core
Slide 5: Strong Free Cash Flow Generation
TELECOM ITALIA GROUP Italy Enhance 1H 2011 Results Brazil Free Cash Flow Strong Free Cash Flow Generation Generation Argentina Euro mln, Reported Data Operating Free Cash Flow Net Cash Flow before dividends +288 +20.8% +1,320 14,543 Etecsa Cuba: 386 Economic Interest TA (155) Revenues 13,223 Hansene
Slide 6: TI Group: Revenues & Ebitda
TELECOM ITALIA GROUP Italy Enhance 1H 2011 Results Brazil Free Cash Flow TI Group: Revenues & Ebitda Generation Argentina Euro mln, % Reported Revenues Organic Revenues +1,320 M€ +137 M€ +10.0% 14,406 +1.0% 14,543 14,543 13,223 +660 +152 IIQ +9.7% IIQ +2.1% +660 -15 IQ +10.3% IQ -0.2% Reported EBITD
Slide 7: TI Group - Main Results by Core Markets
TELECOM ITALIA GROUP 1H 2011 Results TI Group - Main Results by Core Markets Euro mln, Organic Data TI Group Domestic Brazil Argentina 1 Half Δ% yoy 1 Half Δ% yoy 1 Half Δ% yoy 1 Half Δ% yoy Revenues 14,543 1.0% 9,356 -6.7% 3,499 16.8% 1,511 27.8% Weight on TI Group* 64% 24% 10% 34% EBITDA 6,021 -2.
Slide 8: Net Income Evolution
TELECOM ITALIA GROUP Italy Enhance 1H 2011 Results Brazil Free Cash Flow Net Income Evolution Generation Argentina Euro mln, Reported Data o/w Equity (51) Brazil (119) o/w Income from inv. +13 Argentina (86) Brazil (96) Net Fin. Charges +37 Dom. +106 Argentina (124) 250 (1) (95) (227) 1,396 1,211 31
Slide 9: Net Debt
TELECOM ITALIA GROUP Italy Enhance 1H 2011 Results Brazil Free Cash Flow Net Debt Generation Argentina Euro mln, Reported Data Net Debt Dynamics Net Financial Position Adjusted (2,460) (349) EBITDA (5,977) CAPEX +2,037 Δ WC & Others +1,428 Operating FCF (2,512) (349) * Argentina: (243) FRANCO BERNAB
Slide 10: Agenda
TELECOM ITALIA GROUP 1H 2011 Results Agenda TI Group 1H11 Results Telecom Italia Core Markets Results Italy Brazil Argentina Appendix FRANCO BERNABE’ 9
Slide 11: Italy: Revenues & Ebitda Trend
TELECOM ITALIA GROUP Italy Enhance 1H 2011 Results Brazil Free Cash Flow Italy: Revenues & Ebitda Trend Generation Argentina Euro mln, Organic Data, % Revenues Improvement in Core Markets -673 M€ 10,029 -6.7% Mobile Top Line improving vs 1Q11 9,356 -304 Good Ebitda performance with margin improving
Slide 12: Agenda
TELECOM ITALIA GROUP 1H 2011 Results Agenda TI Group 1H11 Results Telecom Italia Core Markets Results Italy Brazil Argentina Appendix FRANCO BERNABE’ 11
Slide 13: Brazil: Revenues & Ebitda Trend
TELECOM ITALIA GROUP Italy Enhance 1H 2011 Results Brazil Free Cash Flow Brazil: Revenues & Ebitda Trend Generation Argentina Euro mln, Organic Data, % Revenues Size +503M€ +16.8% 3,499 TIM Brasil filled the gap vs #2 operator in M/S 2,996 Active Data Users expansion: +303 +600k Infinity Web users v
Slide 14: Agenda
TELECOM ITALIA GROUP 1H 2011 Results Agenda TI Group 1H11 Results Telecom Italia Core Markets Results Italy Brazil Argentina Appendix FRANCO BERNABE’ 13
Slide 15: Argentina: Revenues & Ebitda Trend
TELECOM ITALIA GROUP Italy Enhance 1H 2011 Results Brazil Free Cash Flow Generation Argentina Argentina: Revenues & Ebitda Trend Euro mln, Organic Data, % Revenues Size +328 M€ 1,511 +27.8% Fixed Business: solid performance in BB acquisitions (+6% Accesses vs YE10) 1,183 Strong growth in Mobile Mark
Slide 16: Agenda
TELECOM ITALIA GROUP 1H 2011 Results Agenda TI Group 1H11 Results Telecom Italia Core Markets Results Italy Brazil Argentina Appendix FRANCO BERNABE’ 15
Slide 17: TI Group – Revenues Evolution
TELECOM ITALIA GROUP 1H 2011 Results TI Group – Revenues Evolution Euro mln +1,320 (+10.0%) Brazil +121 Domestic (7) Argentina + 1,183 Domestic (20) Other & Elim. (59) Organic Variation 1H11 +137 (+1.0%) * Average Exchange rate (Real/Euro): 2.29 in 2011, 2.38 in 2010 * * Average Exchange rate (Peso/
Slide 18: TI Group – Ebitda Evolution
TELECOM ITALIA GROUP 1H 2011 Results TI Group – Ebitda Evolution Euro mln +244 (+4.3%) Brazil +34 Domestic (2) Argentina +409 Domestic (4) Other & Elim. (8) Organic Variation 43.4% 42.6% 1H11 41.4% 41.1% -122 (-2.0%) * Average Exchange rate (Real/Euro): 2.29 in 2011, 2.38 in 2010 * * Average Exchang
Slide 19: TI Group – Ebit Evolution
TELECOM ITALIA GROUP 1H 2011 Results TI Group – Ebit Evolution Euro mln -2,932 (n.m.) Brazil +7 o/w Domestic (1) GW Writedown (3,182) Argentina +181 Other&Elim +3 Organic Variation 21.8% 21.2% 1H11 21.8% 21.5% +122 (+4.0%) * Average Exchange rate (Real/Euro): 2.29 in 2011, 2.38 in 2010 * * Average E
Slide 20: Even and Back-Loaded Maturities
TELECOM ITALIA GROUP 1H 2011 Results Even and Back-Loaded Maturities Euro mln Bonds Loans (of which € 1,623 long-term rent, financial and operating lease payable) Drawn bank facility € 5.06 bln Group Liquidity Position + € 7.83 bln Undrawn Portion of Facility/Committed = € 12.89 bln Group Liquidity
Slide 21: TI Group 1H11 Results - P&L
TELECOM ITALIA GROUP 1H 2011 Results TI Group 1H11 Results - P&L Euro mln, Reported Data I Half 2011 2010 Δ Abs Δ% Euro mln REVENUES 14,543 13,223 1,320 10.0 Other Operating Income 108 104 4 3.8 TOTAL REVENUES & OTHER INCOME 14,651 13,327 1,324 9.9 Total Purchases of materials and external services
Slide 22: Main Results by BU – Reported Data
TELECOM ITALIA GROUP 1H 2011 Results Main Results by BU – Reported Data I Quarter II Quarter I Half Reported Actual 2011 Actual 2010 Δ Abs Δ% Actual 2011 Actual 2010 Δ Abs Δ% Actual 2011 Actual 2010 Δ Abs Δ% REVENUES Domestic 4,596 4,974 -378 (7.6) 4,760 5,117 -357 (7.0) 9,356 10,091 -735 (7.3) Wire
Slide 23: Main Results by BU – Organic Data
TELECOM ITALIA GROUP 1H 2011 Results Main Results by BU – Organic Data I Quarter II Quarter I Half Actual 2011 Actual 2010 Δ Abs Δ% Actual 2011 Actual 2010 Δ Abs Δ% Actual 2011 Actual 2010 Δ Abs Δ% REVENUES Domestic 4,596 4,965 -369 (7.4) 4,760 5,064 -304 (6.0) 9,356 10,029 -673 (6.7) Wireline Domes