Telefonica Sa · BME:TEF
Telefonica Sa — H1 2022 Earnings Presentation
23 slides from Telefonica Sa's earnings presentation, Jul 28, 2022
Slide 1: Results January-June 2022
*3° Telefonica RESULTS JAN | JUN 2022
Slide 2: Disclaimer
Disclaimer This document and any related conference call or webcast (including any related Q&A session) may contain forward-looking statements and information (hereinafter, the “Statements”) relating to the Telefónica Group (hereinafter, the "Company" or "Telefónica"). These Statements may include f
Slide 3: Key takeaways
Key takeaways Mr. José María Álvarez-Pallete Chairman & CEO
Slide 4: Strategic focus helps improved growth momentum
Strategic focus helps improved growth momentum Accelerated revenue & OIBDA Good performance across markets Opportunities growth (Q2 y-o-y reported and organic) Over-delivery in H1 • Spain; progressively improving OIBDA y-o-y; miMovistar • T. Infra, sale of 45% of Bluevia, fibre wholesale Moving to m
Slide 5: Improving trends, value accretive growth
Improving trends, value accretive growth Q2 Revenue Q2 OIBDA Q2 CapEx/Sales FCF H1 y-o-y organic y-o-y organic organic +5.2% +3.4% 13.9% €1,348m +2 p.p. q-o-q; back to growth in all OBs +1.3 p.p. sequential improvement Q2 CapEx +2.4% y-o-y org Net debt €28.8bn Robust Service revenues (+1.9 p.p. q-o-
Slide 6: Key financial metrics
Key financial metrics H1 22 Q2 22 H1 22 Q2 22 Reported + Organic Reported + Organic € in millions Reported Reported Reported Reported € in millions 50% VMO2 JV y-o-y 50% VMO2 JV y-o-y y-o-y y-o-y Revenue 19,450 (4.2%) 10,040 0.8% Revenue 22,402 4.2% 11,519 5.2% OIBDA 6,345 (62.4%) 3,146 (76.6%) OIBD
Slide 7: Accelerated momentum trends despite challenging macro
Accelerated momentum trends despite challenging macro T. Tech Q2 revenue +64.8% y-o-y Germany Reported y-o-y Q1 21 Q2 22 UK CPI (avg.) 6.1% 8.3% Reported y-o-y Q1 22 Q2 22 Revenue +5.2% +5.8% CPI (avg.) 6.2% 9.2% OIBDA +9.6% +3.4% Revenue +4.3% +1.9% OIBDA +6.5% +7.5% Spain Reported y-o-y Q1 22 Q2 2
Slide 8: Updating 2022 guidance; dividend confirmed
Updating 2022 guidance; dividend confirmed 2022 guidance organic and including 50% of the JV in 2022 and 2021 Initial 2022 Targets 2021 Base Updated 2022 guidance H1 22 guidance Revenue €42,452m “Low single digit growth” “High-end of low single digit growth” 4.2% OIBDA €14,127m “Low single digit gro
Slide 9: Advancing towards our sustainability targets
Advancing towards our sustainability targets Environmental Social Governance 1 Net-zero by 2040 (scopes 1, 2 & 3) 90-97% MBB rural coverage by 2024 Zero-tolerance of corruption Key 2 Zero-waste by 2030 33% female executives by 2024 ~25% financing linked to sustainability by 2024 Targets 3 >50m tCO2
Slide 10: Q2 22 Results
Q2 22 Results Mr. Ángel Vilá COO
Slide 11: Spain
Spain Convergent KPIs Revenue & OIBDA growth (y-o-y organic) ARPU (€) Churn (%) Revenues OIBDA 87.4 89.6 90.4 91.1 90.1 0.6% 0.4% 0.5% 0.9% 1.3% Trading and financials improved (3.4%) (3.4%) (4.4%) (4.9%) Strong market positioning 1.4% 1.4% 1.4% 1.3% 1.1% Best ever NPS and lowest churn in 6 years (8
Slide 12: Germany
Germany Mobile accesses (m) Revenue & OIBDA organic growth Revenue OIBDA 45.9 46.7 45.0 45.3 45.7 10.3% Continued operational traction and strong financial 5.7% 5.1% 5.2% 7.0% 5.8% 3.5% 1.6% 3.1% performance on core business strength (2.2%) Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22
Slide 13: Virgin Media O2
Virgin Media O2 Lightning build (k) Revenue & OIBDA growth (y-o-y organic) Revenue OIBDA 114 101 5.8% Focus on innovation, 89 93 4.8% network investment and 67 2.6% synergy realisation 0.7% 0.2% Improved customer growth (0.1%) (0.1%) (0.9%) (0.7%) (1.1%) 5G in over 600 towns & cities Q2 21 Q3 21 Q4
Slide 14: Brazil
Brazil Accesses growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH Revenue OIBDA 11.1% 41% 39% 8.5% 36% 4.6% Strong y-o-y acceleration 29% 20% 25% 3.2%3.0% in Revenue & OIBDA 3.0% 2.8% 9% 2.2% 7.6%1 8% 8% 1.7% 7% 1.6% 8%1 +34.9% revenue / +17.0% OIBDA (in € terms) Q2 21 Q2 21 Q4 21
Slide 15: Tech, growing at scale ahead of the market
Tech, growing at scale ahead of the market T. Tech Revenue Strong capabilities (€m; y-o-y) Highly Skilled Diversified Team Portfolio 80.6% 64.8% 71.9% LTM €1,209m ~5.5k > 100 (2021: €944m) Professionals >3k Products & Services 634 Certifications Cyber + Cloud + IoT + Big Data + AI > 30 (3rd parties
Slide 16: Infra, developing a leading portfolio of FibreCos
Infra, developing a leading portfolio of FibreCos UK • 45% Vauban & CAA / 55% TEF (25% T. Infra / 30% T. Spain) • Neutral wholesale FTTH network in rural areas (T. Spain anchor client) • Fibre JV process • Target: 5m PPs; 1.5m in the next 2yrs (3.5m brownfield; 13% of TEF’s network in Spain) • 50% I
Slide 17: Q2 22 Results
Q2 22 Results Mrs. Laura Abasolo CFCO & Head of T. Hispam
Slide 18: Hispam
Hispam Accesses Growth (y-o-y) Revenue & OIBDA growth (y-o-y organic) Contract FTTH & Cable Revenue OIBDA 28% 26% 25% 22% 19% 11.6% Progressively improving: 10.2% 8% 9% 8% 9.5% Growing in value and 6% 5% 6.2% 6.0% efficiencies 4.0% 4.3% 4.2% 2.3% 0.3% Revs +18.4% & OIBDA +33.4% (€) Q2 21 Q3 21 Q4 21
Slide 19: Strong Balance Sheet, prudent management
Strong Balance Sheet, prudent management Debt Portfolio de-risked & well positioned Robust liquidity Liquidity Cushion, Jun-22 (€bn) €8.0bn1 Current liquidity financing 76% 4.40% activity ytd exceeds maturities beyond 2024 12.8 yrs Total debt Total Interest 11.6 20.6 Avg. debt life payment cost 9.0
Slide 20: Conclusions
Conclusions Mr. José María Álvarez-Pallete Chairman & CEO
Slide 21: Improved growth momentum
Improved growth momentum Accelerated growth in revenues & OIBDA (reported & organic y-o-y). Return to growth in all business (y-o-y organic) Managing inflationary & macro challenges FX supportive through Q2 y-o-y Commercial progress drives growth (FTTH, 5G); improved customer experience and reduced
Slide 22: Results presentation and Q&A Session
Results presentation and Q&A Session Telefónica’s management will host a webcast on 28 July at 10:00 AM (CET), 9:00 AM (BST), and 4:00 AM (EST) Participants from Telefónica • José María Álvarez-Pallete l Chairman & CEO • Lutz Schüler l CEO Virgin Media O2 • Ángel Vilá l COO • Eduardo Navarro l Chief
Slide 23: For further information, please contact: Investor Relations
For further information, please contact: Investor Relations FOLLOW US: Adrián Zunzunegui ([email protected]) Isabel Beltrán ([email protected]) Torsten Achtmann ([email protected]) Tel. +34 91 482 87 00 [email protected] www.telefonica.com/investors