Hellenic Telecommunications Organization Sa · ATHEX:HTO

Hellenic Telecommunications Organization Sa — OTE Hellenic Telecommunications Organization — Q3 2019 Earnings Presentation

25 slides from Hellenic Telecommunications Organization Sa's earnings presentation, November 2019

  1. Slide 1: OTE Hellenic Telecommunications Organization Q3 2019 Results

    OTE Hellenic Telecommunications Organization Q3 2019 Results November 2019

  2. Slide 2: Disclaimer

    DISCLAIMER This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to an

  3. Slide 3: OTE Group Overview

    OTE Group Overview Revenues Adj. EBITDA Adj. Capex Adj. FCF Q3’2019 €1,011mn €376mn €133mn €121mn Market Cap €6.5bn Revenues Adj. EBITDA Adj. Capex Adj. FCF 9M’2019 €2,867mn 1,008mn €487mn €329mn Revenues Adj. EBITDA Shareholders* Greece: Greece: DT: 76% 91% 46% Romania: Romania: Hellenic State: 24%

  4. Slide 4: Our Strategy

    Our Strategy The 6 Pillars of our strategic plan Best Customer Revenue Lead in Technology Superiority Experience Transformation Core Business • Optical fiber networks: • Digital Transformation • Data services monetization Massive rollouts of Vectoring; @Customer: • Innovative services launch • COSMO

  5. Slide 5: Digital Transformation

    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 Digitalize Service Digital Interactions Simplify Portfolio Processes Digital  One App primary touchpoint for  Order2Bill: sel

  6. Slide 6: Best Mobile Network in Greece

    Best Mobile Network in Greece “Best in Test” certification, for sixth consecutive 2XSPEED in Big Cities year, for its mobile internet and voice services in 3XSPEED on Main Roads Greece compared to the nearest ranked operator Speed Score COSMOTE Fastest Mobile Network for 2017,2018, H1of 2019 48.94 D

  7. Slide 7: Capex

    Capex Adjusted Capex (€ mn) 900 782 26.0% 800 706 250 226 700 250 650 226 26.0% 26.0% 200 176 178 600 21.0% 165 167 178 200 167 176148 165 156 23.2% 21.0% 500 20.6% 150 23.2% 21.0% 133 400 18.6% 150 16.0% 19.4% 18.8% 18.2% 17.7% 19.4% 16.0% 300 18.2% 100 18.8% 16.0% 100 17.7% 15.2% 200 11.0% 16.0% 5

  8. Slide 8: Cash Flow

    Cash Flow Adjusted FCF (€ mn) Q3’19: -€8mn yoy 1,051 1,100 276 874 254 450 308 345 273 129 121 92 174 175 148 95 50 9 (11) (28) (706) (650) (782) (148) (133) (185) (176) (167) FY 2017 FY 2018 FY 2019 (223) (213) Guidance Q3'18 Q3'19 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Adj. Net Operating CF Adjusted Capex

  9. Slide 9: Debt and Liquidity Profile

    Debt and Liquidity Profile Leverage (€ mn) (IFRS amounts) 0.8x 0.6x 0.4x 0.2x 0.6x 0.5x 0.6x 0.6x 0.6x 0.5x 0.6x Net Debt/EBITDA 0.0x 2,069 1,825 1,829 1,733 1,731 1,514 1,515 748 808 739 732 602 773 692 (766) (823) (1,018) (1,090) (1,001) (1,129) (1,297) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Gr

  10. Slide 10: Shareholder Remuneration Policy

    Shareholder Remuneration Policy Dividend per Share (€) Estimated 2019 Payout (€mn) 0.50 0.46 Total 0.45 350 0.40 0.35 Remuneration 0.35 0.30 Share Buy Back 129 0.25 Special dividend of €0.06 0.20 0.15 +31% deriving from the net proceeds 0.10 of Albania disposal, paid on Dividends 221 0.05 26th of Ju

  11. Slide 11: Greece

    Greece OTE | Q3 2019 Results| 11

  12. Slide 12: Greece – Financial Overview

    Greece – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 50.0% 48.0% 44.0% 46.0% 42.5% 44.0% 40.9% 40.8% 40.8% 40.6% 1,000 42.0% 39.2% 450 40.0% 35.0% 38.0% 900 450 35.0% 36.0% 400 754 771 800 711 736 720 400 Q1'18 Q2'18 Q3'18 321 Q4'18 Q1'19 Q2'19 Q3'19 35.0% 686 697 350

  13. Slide 13: Greece – Financial Overview

    Greece – Financial Overview Retail Fixed Revenues (€ mn) Mobile Service Revenues (€ mn) 350 35.0% 350 35.0% 300 25.0% 300 257 265 225 227 233 231 231 233 237 234 239 25.0% 250 250 213 222 215 15.0% 15.0% 200 200 1.2% 2.6% 1.2% 2.8% 2.8% 1.8% 1.2% 2.0% 3.0% 150 0.5% 5.0% 150 -0.8% 0.8% -0.7% 5.0% 100

  14. Slide 14: Greece – Fixed KPIs

    Greece – Fixed KPIs Fixed Voice Market Evolution (000) OTE Fixed Lines at 2,638k 4,766 4,766 4,759 4,779 4,785 4,782 4,771 45% 44% 44% 45% 45% 45% 45% 55% 56% 56% 55% 55% 55% 55% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 OTE Market Share Competitors Market Share Net Additions (000) 20 11 9 3 6 0 9 9

  15. Slide 15: Greece – Broadband KPIs

    Greece – Broadband KPIs Broadband Market Evolution (000) Market Penetration OTE Broadband Lines at 1,969k 120% 3,955 3,987 4,017 4,042 100% 81% 81% 82% 83% 83% 84% 85% 3,841 3,865 3,887 80% 60% 70% 72% 73% 74% 75% 53% 53% 52% 52% 52% 51% 51% 68% 69% 40% 20% 47% 47% 48% 48% 48% 49% 49% 0% Q1'18 Q2'18

  16. Slide 16: Greece – Fiber Services

    Greece – Fiber Services Fiber Subscribers (000) 700 646 695  Penetration of high-speed Fiber Broadband service at 586 100.0% 35.3% of retail broadband base 600 531 483 500 405 449 80.0%  At September 30, total number of VDSL/Vectoring 400 60.0% activated cabinets amounted to 15.7k up by over 450 3

  17. Slide 17: Greece – COSMOTE TV

    Greece – COSMOTE TV TV Subscribers (000) 700 100 600 528 526 534 542 540 544 549 80 500 60 Cosmote TV will launch its own personalized OTT service in Q4’ 2019 400 40 300 20 +2.7% y-o-y Increase in Customer base 200 0 8 8 3 5 100 3 (2) (2) -20 Champions League , Europa League and 0 -40 English Premie

  18. Slide 18: Greece – Mobile KPIs

    Greece – Mobile KPIs Data Revenues (€ mn) Avg.Data usage* (GB) 36% of Service Revenues 3.5 3.1 100 96 45.0% 3.0 86 2.3 2.4 79 90 40.0% 2.5 74 76 2.0 2.1 80 70 35.0% 1.8 70 64 2.0 1.7 30.0% 60 25.0% 1.5 50 20.0% 40 22.2% 21.4% 1.0 +31% 30 20.4% 18.6% 18.8% 15.0% 17.8% 20 15.9% 10.0% 0.5 10 5.0% 0.0 0

  19. Slide 19: Greece – Digitalization

    Greece – Digitalization Smartphone penetration (%) COSMOTE Apps Active users penetration* (%) 100% 90% 90% 80% 80% 70% 70% 71% 72% 66% 67% 66% 67% 68% 70% 64% 65% 70% 60% 56% 60% 47% 50% 50% 50% 40% 40% 30% 30% +4pp +11pp 20% 20% 10% 10% 0% 0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q1'18 Q2'18 Q3

  20. Slide 20: Romania

    Romania OTE | Q3 2019 Results| 20

  21. Slide 21: Romania – Financial Overview

    Romania – Financial Overview Total Revenues (€ mn) Adj. EBITDA before IFRS 16 (€ mn) 20.0% 14.6% 15.7% 18.2% 14.8% 300 100.0% 18.0% 16.0% 12.1% 12.9% 242 244 14.0% 10.2% 250 227 238 227 231 80.0% 12.0% 60 217 60.0% 10.0% 8.0% 60 50 6.0% 160.0% 200 40.0% 4.0% 41 7.4% 2.0% 0.0% 50 40 37 41 36 -1.7% 0.

  22. Slide 22: Romania – Financial Overview

    Romania – Financial Overview Retail Fixed Revenues (€ mn) 120 Mobile Service Revenues (€ mn) 120 100 100 82 82 82 80. 76 79 80 76 90 82 82 82 80 60. 76 76 79 120.0% 80 100.0%40. 66 60 70 63 60 70 59 58 59 56 120.0% 80.0% 60 100.0% 60 5.4% 3.1% 20. -3.8% -6.6% -4.4% 60.0% 80.0% 50 40 50 0.0 60.0% -18

  23. Slide 23: Romania – Fixed KPIs

    Romania – Fixed KPIs Voice Lines* (000) Broadband Lines* (000) TV Subscribers (000) Q3’19: -0.9% yoy Q3’19: -7.2% yoy 3,000 TV Subscribers Q3’19: -6.9% yoy 3,000 Broadband lines 2,500 3,000 2,500 2,500 2,000 2,094 2,097 2,112 2,142 2,137 2,115 2,093 2,000 2,000 1,464 1,463 1,454 1,443 1,409 1,380 1,

  24. Slide 24: Romania – Mobile KPIs

    Romania – Mobile KPIs Data Revenues (€ mn) Data Revenues as % of Service Revenues 30 60% Data Revenues 24 80.0% 25 50% 20 21 19 19 60.0% 36% 20 17 18 40% 29% 29% 31% 40.0% 28% 15 30% 24% 24% 41.5% 34.8% 20.0% 10 20% 22.2% 15.2% 5 9.3% 10.6% 0.0% 10% 5.9% 0 -20.0% 0% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'

  25. Slide 25: Thank you

    Thank you For more information please contact OTE Group Investor Relations: Tel: +30 210 611 1574 Fax: +30 210 611 1030 E-mail: iroffice@ote.gr or visit: https://www.cosmote.gr/fixed/en/corporate/ir OTE | Q3 2019 Results| 25

OTE Hellenic Telecommunications Organization — Q3 2019 Earnings Presentation on 6ix