Hellenic Telecommunications Organization Sa · ATHEX:HTO
Hellenic Telecommunications Organization Sa — Cosmote — 9M 2005 Earnings Presentation
23 slides from Hellenic Telecommunications Organization Sa's earnings presentation, November 2005
Slide 1: Delivering on Challenges
Delivering on Challenges November 2005 Visit our website: www.cosmote.com
Slide 2: Strategy
Strategy COSMOTE
Slide 3: Our business commitments
Our business commitments We deliver on our key targets 9 Enhance Greek operations’ EBITDA margin in Greece rising to 44.7% profitability on a quarterly basis AMC’s revenue +15.8% in Q3; EBITDA 9 Sustain strong performance in margin at 61.7% Albania GloBul’s & COSMOFON’s market share 9 Increase
Slide 4: COSMOTE Group: An attractive growth profile
COSMOTE Group: An attractive growth profile COSMOTE Mature operation with strong cash flows Greece & improving profitability Continuing fast growth, high margins & AMC positive cashflows Sustainable Strong turnover & profit growth, with GloBul significant further potential profitable growth outlook
Slide 5: Our footprint
Our footprint COSMOTE Greece •Greek population: 11.0 mn •Market penetration*: >109% COSMOTE Romania •Subscribers: 4.5 mn •Romanian population: 21.7 mn •Market share*: 37.6% •Market penetration*: c.55% •Share of net adds*: 40% Romania •Market subscribers: 12 mn •Market share: <1% AMC •Re-launch: Dece
Slide 6: Sustainable growth & scale benefits
Sustainable growth & scale benefits Fast growth of international markets adding to Group prospects 24% 65- 30- 92% 8% 76% 70% 35% Greek revenues International 2004A Q3-2005 pro-forma 2007E Revenues Synergies & Scale economies Commercial Synergies Management , CAPX & OPEX Procurement Synergies •Addre
Slide 7: COSMOTE in Greece: Focusing on improvements
COSMOTE in Greece: Focusing on improvements Enhancing usage, profitability & cashflow generation 9 Enhance market position Focus on subscriber loyalty, enhance distribution & brand perception 9 Increase usage Continuous commercial initiatives 9 Maximize operational efficiencies & Maximize elas
Slide 8: COSMOTE in the Balkans: Growth opportunities
COSMOTE in the Balkans: Growth opportunities Increasing penetration, market shares & profits 9 Fast growing economies, to benefit from EU entry Strong growth driven by penetration & 9 Comparatively low penetration – fast market share gains growing telecom markets EBITDA margins rising towards Gr
Slide 9: International assets: Clear targets, Clear strategy
International assets: Clear targets, Clear strategy Applying our experience to secure success Build an extended and high capacity ¾ Network quality network in all countries Attract residential & corporate ¾ Mass market offerings customers. Exploit the Greek corporate presence ¾ Extended distribution
Slide 10: Group Financial Results & Outlook
Group Financial Results & Outlook
Slide 11: COSMOTE Group: 9m05 Financial Results
COSMOTE Group: COSMOTE Group: 9m05 9m05 Financial Financial Results Results 54 6 2 -11 1,292 102 R E 1,139 V E N COSMOTE Group U E S +7.5% Greece Alb an ia Bu lg aria FYROM Roman ia Elimin ation s Con solid ated 1292.3 23 1 -1 -6 570 1202.3 62 491 E B I T 42.8% +10.6% 44.1% D 569.7 A 515.0 +9.0% Gre
Slide 12: COSMOTE Group: 9m05 Financial Results
COSMOTE Group: 9m05 Financial Results COSMOTE Greece GloBul AMC +2.0% +15.8% 1,116.1 1,138.6 +58.4% 197.6 102.2 88.3 60.4% 124.7 57.2% 61.7 41.6% 43.1% 50.5 36.3% 490.6 71.6 464.8 23.4% 25.9 32.2 214.9 237.9 29.2 22.7 -10.3 9m04 9m05 9m04 9m05 9m04 9m05 COSMOFON COSMOTE Romania Revenues +66.3% 27.9
Slide 13: Group Outlook: Delivering results – Setting the new targets
Group Outlook: Delivering results – Setting the new targets 2005 3 – year Leverage P&L estimates 2005E 2007E expectations CAGR estimates Revenue growth 13 – 15% 12 – 15% Net debt 1.0-1.1 0.7-0.8 (bn, €) EBITDA margin over 40% c. 40% Net debt / 1.35-1.45x 0.8-0.9x EPS growth 3 – 7% 8 - 12% EBITDA Com
Slide 14: 2006: A new era for the COSMOTE Group
2006: A new era for the COSMOTE Group ¾ Full year consolidation of GloBul, COSMOFON and COSMOTE Romania ¾ Significant revenue & profit growth in the Balkan markets ¾ Mature market revenue growth rate in Greece, combined with efforts for continuous margin enhancement ¾ First contribution from COSMOTE
Slide 15: Conclusion
Conclusion COSMOTE
Slide 16: Our commitment to shareholders
Our commitment to shareholders We deliver on our commitments to shareholders 9 Maximize profitable growth Corporate transactions enhancing potential in all group operations shareholder value 9 Pursue investment opportunities Recent expansion offers to enhance prospects increasing returns – looki
Slide 17: Appendix: Review of Operations
Appendix Review of Operations • Greece: COSMOTE • Albania: AMC • Bulgaria: GLOBUL • FYROM: COSMOFON • Romania: COSMOTE Romania
Slide 18: Greece: COSMOTE
Greece: COSMOTE Subscriber market share 9m 2005* Key country facts * Company estimates Population: 11.0 million GDP / capita (nominal): $18,036 GDP growth: 3.7% 37.6% 35.7% Mobile penetration: >109% 7.3% 19.4% COSMOTE subscriber evolution (‘000) COSMOTE facts & figures 9m 2005 * Company esti
Slide 19: Albania: AMC
Albania: AMC Subscriber market share 9m 2005* Key country facts * Company estimates Population: 3.1 million GDP / capita (nominal): $ 2,230 GDP growth 2005e : 6% Inflation 2005e: 3.1% 52% 48% Fixed line penetration: 7% Mobile penetration*: 47% AMC subscriber evolution (‘000) AMC facts &
Slide 20: Bulgaria: GLOBUL
Bulgaria: GLOBUL Subscriber market share 9m 2005* Key country facts * Company estimates Population: 7.8 million GDP / capita (nominal): $ 3,059 GDP growth 2005e: 6% 40% Inflation 2005e: <4% 60% Fixed line penetration: ~40% Mobile penetration: 69% GloBul subscriber evolution (‘000) GloBul
Slide 21: FYROM: COSMOFON
FYROM: COSMOFON Subscriber market share 9m 2005* Key country facts * Company estimates Population: 2.1 million GDP / capita (nominal): $ 2,554 GDP growth 2005e: 3.5% 30% Inflation 2005e: 1.5% 70% Fixed line penetration: 29% Mobile penetration: 57% CosmoFON subscriber evolution (‘000) Cos
Slide 22: Romania: COSMOTE Romania
Romania: COSMOTE Romania Subscriber market share 9m 2005* Key country facts * Company estimates Population: 21.7 million GDP / capita (nominal): $ 3,336 GDP growth 2004 : 8.0% 46% Inflation 2004: 9.3% Fixed line penetration: ~21% Mobile penetration (9m-05): ~55% 51% Average ARPU € 11 M
Slide 23: Note on Forward-Looking Statements
NOTE ON FORWARD-LOOKING STATEMENTS Some of the statements in this presentation are "forward-looking statements". Forward-looking statements are derived from information that we currently have and assumptions that we make. Words such as "believes", "anticipates", "expects", "intends", "seeks", "will"