23 slides from Telecom Argentina Sa Class B's earnings presentation, November 2019
Slide 1: Company Presentation
TELECOM ARGENTINA Company Presentation November 2019
Slide 2: Forward-looking statements
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 synergi
Slide 3: Disclaimer: inflation adjustment effects
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
MACRO OVERVIEW BUSINESS HIGHLIGHTS AGENDA FINANCIALS Q&A 3
Slide 5: Agenda
MACRO OVERVIEW BUSINESS HIGHLIGHTS AGENDA FINANCIALS Q&A 4
Slide 6: Macro - Evolution So Far and Where We Stand
+40% 3Q18 4Q18 1Q19 2Q19 3Q19 Sep19 vs Sep18 59,51 57,59 FX RATE Average FX 3Q18: (EoM) $31.96 43,35 44,15 44,76 42,46 43,88 41,25 39,15 36,85 35,95 37,72 37,70 37,35 Average 27,41 FX 3Q19: $50.54 jul-18 ago-18 sep-18 oct-18 nov-18 dic-18 ene-19 feb-19 mar-19 abr-19 may-19 jun-19 jul-19 ago-19 sep-1
Slide 7: Macro - Evolution So Far and Where We Stand
3Q18 4Q18 1Q19 2Q19 3Q19 0,6% GDP 3Q18 4Q18 1Q19 2Q19 3Q19e -3,7% (% YoY) -1,7% -6,2% Source : INDEC & Bloomberg Consensus -5,8% 11,0% 10,6% 10,1% 9,0% 9,1% MACRO - UNEMPLOYMENT (% ) EVOLUTION SO FA R A N D W H E R E 3Q18 4Q18 1Q19 2Q19 3Q19e W E S TA N D : Source : INDEC & Bloomberg Consensus ACTIV
Slide 8: Agenda
MACRO OVERVIEW BUSINESS HIGHLIGHTS AGENDA FINANCIALS Q&A 7
Slide 9: 9M19 Highlights
9M19 REVENUES P$ 159.7bn Highlights Margin : EBITDA P$ 53.2bn 33.3% Fixed Voice Broadband ARPU ARBU: $ 390 ARPU: $967 (per month) Pay TV Mobile ARPU: $1,066 ARPU: $ 281 Mobile subs in Argentina : 19.0 mm Broadband : 4.1 mm 13.4mm SUBSCRIBERS Fixed Voice : 3.3 mm 4G Pay TV: 3.5 mm CLIENTS ► The Gener
Slide 10: Initiatives and Projects
Initiatives and Projects #FAN SWITCH 4UP OSS BSS Transformation Digital Experience Workforce Management CRM USER DIGITAL SELF- PROCESSES PLATFORMS FRIENDLY MANAGEMENT STANDARIZATION UNIFICATION CHANNELS PILLARS OF THE CENTRALIZED T R A N S F O R M AT I O N CATALOGUE DIGITALIZATION SIMPLIFIED E-COMME
Slide 11: Telecom Revenues
SERVICE REVENUES REVENUES BREAKDOWN 6,3% 0,3% -9% 15,7% 34,3% TELECOM REVENUES Revenues 164.304 149.641 20,9% coming from 22,5% mobile still the Mobile Broadband Pay TV most prevalent 9M18 IAS 29 9M19 IAS 29 Fixed & Data Handsets Other business of all REVENUES COMPOSITION In P$ Million 61,9 54,8 40,
Slide 12: Mobile: Positive Clients Inflow
MOBILE POSTPAID POSITIVE CLIENTS INFLOW MOBILE ARPU Source: ENACOM In P$ SUBSCRIBERS 2,7% 18.5 19.0 ,025 0 2,1% 450 ,00 400 ,00 65,3 45,8 29,1 35,8 350 ,00 26,9 ,020 0 300 ,00 38% 40% ,015 0 250 ,00 200 ,00 ,010 0 307 281 150 ,00 MOBILE IN 100 ,00 ,005 0 62% 50,0 0 60% ARGENTINA: - - 9M18 9M19 IAS 2
Slide 13: Internet and CATV: Differentiation through Customer Experience
BROADBAND SUBSCRIBERS BROADBAND SPEEDS BROADBAND ARPU In Million In P$ 1.800,00 03% 1.600,00 Of total subscribers with 02% Broadband subscribers +11K compared with 3Q18 58% speeds between 20 and 100 1,5% 1.400,00 Mb 02% 1,3% 1.089,0 1.200,00 34% 967,2 01% INTERNET AND 1.000,00 58% 4,13 4,14 01% C AT
Slide 14: Agenda
MACRO OVERVIEW BUSINESS HIGHLIGHTS AGENDA FINANCIALS Q&A 13
Slide 15: Consolidated Results: Revenues and EBITDA
REVENUES EBITDA -14% -10% +34% +39% 177,898 35,4% 34,9% 34,1% 33,3% 159,699 850 00 35% 21.821 62,143 750 00 53,219 30% 78.404 650 00 25% 26.947 6.238 550 00 450 00 20% 350 00 15% 250 00 35.196 46.981 137.878 C O N S O L I D AT E D 10% 150 00 99.494 05% 500 0 -5000 00% R E S U LT S 9M18 9M19 9M18 IAS
Slide 16: IAS 29 EBITDA 9M19 – 9M18
IAS 29 EBITDA 9M19 – 9M18 IFRS, Million of P$ YoY Variation -P$8,924;-14% Fees for services, Ss. Revenues & Handsets maint. and Programming and EBITDA 9M18 other incomes Sales Handsets Costs Labor Costs ITX Costs materials Taxes Commissions & Adv content Costs Others* EBITDA 9M19 150% 69000 62.143 1
Slide 17: Operating Income and Net Income
OPERATING INCOME NET INCOME IFRS, Million of P$, Percentage IFRS, Million of P$, Percentage 9M18 IAS 29 9M19 IAS 29 ∆$ ∆% In million of P$ 9M18 IAS 29 9M19 IAS 29 ∆$ D&A $ 33,807 $ 38,820 $ 5,013 15% Operating Income $ 28,336 $ 14,399 -$ 13,937 Financial Results -$ 51,520 -$ 14,360 $ 37,160 -49% FX
Slide 18: Capex Evolution
CAPEX EVOLUTION 9M19 HIGHLIGHTS Million of P$ +4% More than 300 new sites were deployed. Additionally several improvement were completed on the network: technology upgrades on 50 sites, adding of spectrum bands in 42.242 43.939 more than 450 sites and refarming to CAPEX: 4G technology over more than
Slide 19: International Operations: Paraguay
REVENUES EBITDA REVENUES BREAKDOWN Million of U$S Million of U$S 8,0% 15,0% 11,0% Browsing 167 Voice 132 60 Data 51 TV 26,0% Others 40,0% 9M18 IAS 29 9M19 IAS 29 9M18 IAS 29 9M19 IAS 29 I N T E R N AT I O N A L O P E R AT I O N S : PA R A G U AY Fixed Network Subscribers Marketshare Capacity Flow su
Slide 20: Key Figures
In Million P$ LTM3Q19 ✓Revenues 213,200(*) ✓ EBITDA 68,695(*) ✓Gross Debt* 146,230 ✓Cash & Equivalents* 40,803(**) ✓Net Debt* 105,427 ✓ Capex 60,192(*) KEY FIGURES ✓ EBITDA-Capex 8,503 Ratios EBITDA / Margin 32.2% Interest Coverage 7.8x Gross Debt / EBITDA 2.13x Net Debt / EBITDA 1.53x (*) The figur
Slide 21: Debt News & Maturity Schedule
Debt Principal as of September 30, 2019 U$S P$ GUA Total (U$S) CV 5 year Bond Class A 465 - - 465 Class I Bond 2026 400 400 Ve n d o r F i n a n c i n g 71 - - 71 IFC Loan 300 - - 300 IFC New Loan 310 - - 310 IIC Loan 75 - - 75 Te r m L o a n d u e 2 0 2 2 300 - - 300 DEBT NEWS & Deutsche Bank Loan
Slide 22: Agenda
MACRO OVERVIEW BUSINESS HIGHLIGHTS AGENDA FINANCIALS Q&A 21
Slide 23: Investor Relations Contact
Investor Relations Contact Telephone: (5411) 4968 3628 E-mail: relinver@teco.com.ar