Hellenic Telecommunications Organization Sa · ATHEX:HTO

Hellenic Telecommunications Organization Sa — Cosmote — Q1 2006 Earnings Presentation

23 slides from Hellenic Telecommunications Organization Sa's earnings presentation, May 2006

  1. Slide 1: 1st Quarter 2006 Results: Growth in All Markets

    1st QUARTER 2006 RESULTS: GROWTH IN ALL MARKETS May 2006 Visit our website: www.cosmote.com

  2. Slide 2: Overview

    Overview COSMOTE

  3. Slide 3: Q1 2006 highlights

    Q1 2006 highlights ¾ Strong traffic and turnover growth across all markets ¾ Total customer base exceeding 8.8 million subscribers (+25% yoy) ¾ Greece registering 7.4% turnover growth & 9.3% service revenue growth ¾ COSMOTE Romania successfully taking off ¾ GLOBUL maintains market momentum gaining i

  4. Slide 4: The Germanos acquisition: A springboard for future growth

    The Germanos acquisition: A springboard for future growth ¾ Acquiring the strongest distribution platform in S.E. Europe ¾ Enhancing revenue growth potential in four markets ¾ Capturing an increasing share of mobile operations’ value chain ¾ Better control & management of customer base ¾ Reducing ch

  5. Slide 5: Operational & Financial Review: Consolidated Performance

    Operational & Financial Review Consolidated Performance

  6. Slide 6: COSMOTE Group: Q1 2006 Consolidated Financial Results

    COSMOTE Group: Q1 2006 Consolidated Financial Results 6.1 -4.3 496.4 R 73.9 10.8 E 34.4 V COSMOTE Group 375.6 E N U E +30.5% S 496.4 Greece Alb an ia Bu lg aria FYROM Roman ia Elimin ation s Con solid ated 27.5 1.4 -12.3 -0.2 380.3 190.9 20.2 E 154.4 +14.8% B 43.7% 38.5% I 190.9 166.3 T D 74.6 75.2

  7. Slide 7: COSMOTE Group: Summary Income Statement

    COSMOTE Group: Summary Income Statement Income Statement All amounts in million euros Q1 2006 Q1 2005 Change % Total Operating Revenues 496.4 380.3 +30.5% Total Operating Expenses -305.4 -214.0 +42.7% EBITDA 190.9 166.3 +14.8% EBITDA margin 38.5% 43.7% Net Income 75.2 74.6 +0.8% Net Income margin 15

  8. Slide 8: COSMOTE Group: Cash Flow & Balance Sheet

    COSMOTE Group: Cash Flow & Balance Sheet Balance sheet Cash Flow Statement All amounts in million euros Q1 2006 FY 2005 All amounts in million euros Q1 2006 Q1 2005 Total Non Current Assets 1,929.5 1,932.1 EBITDA 190.9 166.3 Cash & cash equivalents 397.2 330.1 CAPEX -64.9 -14.8 Other Current Assets

  9. Slide 9: Operational & Financial Review by Market

    Operational & Financial Review by Market

  10. Slide 10: COSMOTE Greece

    COSMOTE Greece Subscriber market share Q1 2006* Key Developments * Company estimates Market Developments ƒ Competitive environment 35.6% characterized by targeted offerings 37.3% & seasonal promotions ƒ Fully penetrated market, with growing traffic trends 7.6% 19.5% ƒ Reduction of termination rates

  11. Slide 11: COSMOTE Greece

    COSMOTE Greece Q-o-Q • Voice driving revenue growth: Q1 05 +7.4% 375.6 service revenues +9.3% & total revenues 349.6 up by 7.4% 41.1% • Total traffic up by 15% 42.2% 147.5 154.4 • Outgoing traffic accounting for an 67.4 74.4 increasing share of revenues, reducing dependency on interconnection rates

  12. Slide 12: Greece: Regulatory impact

    COSMOTE Greece: Regulatory impact New regulatory environment ¾ New F2M & M2M i/c rates at 0.12 euro (-17%), as of June 1, lower than EU average ¾ Further changes expected in 2007 ¾ Roaming: Overall dependency and potential impact is more limited than industry average Current trends provide a shield

  13. Slide 13: AMC

    AMC Subscriber market share Q1 2006* Key country facts & developments * Company estimates Country and Market ƒ Population: 3.1m ƒ GDP growth 2005: 6% 51% ƒ Inflation 2005: 2.5% 49% ƒ Fixed line penetration: 7% ƒ Penetration picking up ƒ Primarily prepaid market ƒ 3rd license exists, but activation n

  14. Slide 14: AMC

    AMC Q-o-Q • 18% subscriber growth leads to 11% +7.6% traffic increase and 7.6% revenue 34.4 growth 31.9 59.1% 58.9% • EBITDA margin sustained at c. 59% 20.2 18.8 • Net income rising by 10% 9.8 10.8 • Maturing market characteristics, Q105 Q106 sustaining positive growth, increasing FCF generation All

  15. Slide 15: GloBul

    GloBul Subscriber market share Q1 2006* Key country facts & developments * Company estimates Country and Market ƒ Population: 7.8 million ƒ GDP / capita (nominal): $ 3,402 39.3% ƒ GDP growth 2005e: 5.7% 56.1% ƒ Inflation 2005e: 6.5% ƒ EU accession in 2007 or 2008 4.6% ƒ Fixed line penetration: ~40%

  16. Slide 16: GloBul

    GloBul Q-o-Q ƒ Significant traffic & SMS increase (+82% +37% & +17% yoy) 73.9 ƒ Commercial initiatives sustained 53.9 subscriber growth despite third entrant 37.2% 31.5% 27.5 ƒ Network upgrades attracting high-end 17.0 customers, leading to stable ARPU 7.4 2.2 despite price erosion Q105 Q106 All amo

  17. Slide 17: COSMOFON

    COSMOFON Subscriber market share Q1 2006* Key country facts & developments * Company estimates Country and Market ƒ Population: 2.1 million 32% ƒ GDP / capita (nominal): $ 2,570 ƒ GDP growth 2005: 4% 68% ƒ Inflation 2005: 1% ƒ Fixed line penetration: 29% ƒ Significant penetration growth ƒ Stable com

  18. Slide 18: COSMOFON

    COSMOFON Q-o-Q ƒ Usage up by 78% +44.9% ƒ Increasing SMS usage (+51% yoy) 10.8 ƒ Revenues up by 45% 7.5 ƒ Significant profitability 12.8% improvements, with EBITDA 0.1 1.4 reaching 1.4 million Euro on -3.0 -4.0 12.8% margin ƒ Net income at Euro -3.0 million, a Q105 Q106 25% improvement All amounts i

  19. Slide 19: COSMOTE Romania

    COSMOTE Romania Subscriber market share Q1 2006* Key country facts & developments * Company estimates Country and Market ƒ Population: 21.7 million 45% ƒ GDP / capita (nominal): $ 3,260 ƒ GDP growth 2005e: 4.0% ƒ Inflation 2005e: 8.6% 51% ƒ EU accession in 2007 or 2008 ƒ Fixed line penetration: ~25%

  20. Slide 20: COSMOTE Romania

    COSMOTE Romania Income Statement Basic KPIs Q1-06 All amounts in million euros Q1 2006 AMOU, blended (min) 150 Total Operating Revenues 6.1 EBITDA -12.3 ARPU, blended (€) 8 Depreciation -5.6 Financial expenses -1.2 Total Customer base 275,521 Net Income/(loss) -19.1 ƒ Significant market impact with

  21. Slide 21: Conclusion: a sustainable growth profile

    Conclusion: a sustainable growth profile

  22. Slide 22: COSMOTE Group asset portfolio

    COSMOTE Group asset portfolio CURRENT REVENUE COSMOTE Romania GROWTH GloBul CosmoFON >10% Highest growth assets; rapidly increasing turnover & Consistent growth improving profitability and profitability AMC <10% COSMOTE Greece Strong cash generation with stable growth EXPECTED EFFECT OF GERMANOS <40

  23. Slide 23: Note on forward-looking statements

    NOTE ON FORWARD-LOOKING STATEMENTS Some of the statements in this document 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", “targets”, intends","seeks", "

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