Telefonica Sa · BME:TEF

Telefonica Sa — Q1 2009 Earnings Presentation

22 slides from Telefonica Sa's earnings presentation, May 13, 2009

  1. Slide 1: Investor Relations May 13th, 2009

    Investor Relations May 13th, 2009 1

  2. Slide 2: Disclaimer

    Disclaimer This document contains statements that constitute forward looking statements about the Company including financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations.. These statements appear in a number of places in this do

  3. Slide 3: Q1 09 results key highlights

    GROUP FINANCIALS Q1 09 results key highlights Delivering 2009 Group priorities „ Capturing growth opportunities in expanding businesses: „ Superior organic(1) revenue and OIBDA growth rates, leveraging our highly diversified portfolio „ Strong performance in T. Latam and solid results from T. Europe

  4. Slide 4: Solid Group performance leveraging diversified portfolio

    GROUP FINANCIALS Solid Group performance leveraging diversified portfolio € in millions Jan-Mar Change Change organic(1) 2009 Q1 09/Q1 08 Q1 09/Q1 08 Telefónica Group Accesses Revenues 13,703 -1.4% +2.8% 261.4 198.2 42.4 +11.9% +15.4% Operating Income before D&A 5,354 -0.4% +2.5% -2.4% 12.8 2.3 (OIB

  5. Slide 5: Double digit EPS and FCFS growth

    GROUP FINANCIALS Double digit EPS and FCFS growth € in millions (% change y-o-y) 5,354 +9.8% 3,190 -2,164 5 (-5.0%) (c.s.) -731 1,690 (-4.7%) -744 -31 +1.1% (-46.1%) Q1 09 OIBDA D&A Q1 09 OI Associates Financial results Taxes Minorities Q1 09 Net Income EPS (in €) FCFS (in €) +12.9% +56.9% 0.37 0.28

  6. Slide 6: Fully on track to meet 2009 guidance

    GROUP FINANCIALS Fully on track to meet 2009 guidance Revenue Growth(1) OIBDA Growth(1) +3.3% +2.9% 2009 GUIDANCE 2009 GUIDANCE Revenue growth +1%/+3% % Change Q1 09/Q1 08 % Change Q1 09/Q1 08 CapEx(1) OpCF(1) CapEx 2009 GUIDANCE seasonality < €7,500 m mainly in Brazil 2009 GUIDANCE and Germany +8%/

  7. Slide 7: Delivering our priorities

    GROUP FINANCIALS Delivering our priorities Q1 09 Organic growth(1) (y-o-y growth) Telefónica Group +6.3% +4.5% Capturing growth +3.8% opportunities & +2.8% +2.5% +2.3% 39.1% increasing OpCF in an (+0.6 p.p.) economic downturn Revenues OIBDA OpCF(2) Considering comparable terms (3) in T. España T. Es

  8. Slide 8: OpEx & CapEx discipline & flexibility to ensure OpCF generation

    GROUP FINANCIALS OpEx & CapEx discipline & flexibility to ensure OpCF generation Group CapEx Q1 09 y-o-y (organic(1) growth) „ Lower commercial activity in traditional 2009 committed € 1,200 m -3.7% wireline business CapEx as of March: ~30% of annual 24% -17% „ GSM coverage/capacity already in place

  9. Slide 9: T.España: Successfully managing OpEx and CapEx to maximize OpCF

    TELEFÓNICA ESPAÑA T.España: Successfully managing OpEx and CapEx to maximize OpCF WIRELINE WIRELESS € 1,224 m € 850 m Revenues & 0.3% Q1 09 Q1 09 Q1 09 „ Focus on OpCF maximization OpCF growth across businesses without Q1 09 -0.1% (comparable (1) -3.0% y-o-y change) -7.3% jeopardizing revenue share

  10. Slide 10: Revenue performance impacted by worse trading conditions

    TELEFÓNICA ESPAÑA Revenue performance impacted by worse trading conditions POSITIVES NEGATIVES „ Strong IT revenue growth (+24.5% y-o-y) on sound „ Regulatory actions: 17.4% cut in MTRs; 20% reduction evolution of wireline data revenues (+3.6% y-o-y) in full ULL prices and flat PSTN monthly fee „ Su

  11. Slide 11: KPIs performance

    TELEFÓNICA ESPAÑA KPIs performance ~6,900 „ Strong leadership in a slowing down retail 5,292 wireline Internet Broadband market: 2x 1.6 x „ Market share higher than 56% Broadband +9.4% >1,000 KPIs (Mar-09; „ T. España wireline BB accesses: +9.4% y-o-y ´000) „ Effective BB ARPU: -7.2% y-o-y Wireline

  12. Slide 12: OpEx & CapEx discipline to preserve OpCF generation

    TELEFÓNICA ESPAÑA OpEx & CapEx discipline to preserve OpCF generation Q1 09 Further opportunities „ Focus on growth businesses: mobile data CapEx Q1 09 vs. Q1 08 (€ in millions) „ Enhanced CapEx efficiency: Significant vendors per unit cost reductions 463 -28% „ Benefiting from Group purchasing powe

  13. Slide 13: T.Latam: sustained strong results combining growth & enhanced efficiency

    TELEFÓNICA LATAM T.Latam: sustained strong results combining growth & enhanced efficiency +8.7% 3.8 p.p 0.1 p.p Revenue „ Healthy customer growth across growth +4.8% 1.8 p.p 0.8 p.p businesses: total accesses up 12.6%(4) y- (Q1 09 y-o-y 2.2 p.p o-y driven by mobile (+15.8%(4)) and BB change) (+18.6%

  14. Slide 14: Wireless business: Robust customer growth fully flowing into financials

    TELEFÓNICA LATAM Wireless business: Robust customer growth fully flowing into financials „ Very healthy mobile access growth 84% in GSM (+15 p.p.) despite higher penetration 45.6 „ Average penetration in the region: 83% (+12 15.5 15.0 p.p. vs. Mar-08) Mobile customers 10.8 10.7 9.8 „ 1.3m net adds i

  15. Slide 15: Wireline business: Sustained business transformation

    TELEFÓNICA LATAM Wireline business: Sustained business transformation 6.2 2.7 Retail BB accesses 1.1 „ Outstanding BB accesses growth to (Mar-09; in 0.7 0.7 surpass 6.2m: millions) 0.4 „ Strong push in bundles 19% 25% 23% 10% 75% 21% „ 2P&3P/BB: +14 p.p. y-o-y Y-o-y growth Latam Arg. Brazil Chile Co

  16. Slide 16: Solid performance across major operations

    TELEFÓNICA LATAM Solid performance across major operations Mobile Total Total BB & TV Total Mobile Wireline Q1 09 y-o-y growth revenue service Wireline revenue OIBDA OIBDA OIBDA (in local currency) revenue revenue Brazil(1) +7.8% +10.0%(2) +2.2% +26.0% +4.4% +11.7%(2) -1.8% Argentina +20.6% +23.9% +

  17. Slide 17: T. Europe: Delivering on cash flow generation through a more rebalanced portfolio

    TELEFÓNICA EUROPE T. Europe: Delivering on cash flow generation through a more rebalanced portfolio while maintaining momentum Revenues & OIBDA (Q1 09 vs. Q1 08) „ Solid Q1 09 performance across markets in an increasingly tough trading environment REVENUES OIBDA „ +9.0% y-o-y increase in total custo

  18. Slide 18: T. O2 UK: Sustained outperformance in a slower market

    TELEFÓNICA EUROPE T. O2 UK: Sustained outperformance in a slower market 286.3 Mobile ƒ Simplicity „ Keeping momentum, driving growth: contract ƒ High-end phones net adds +18.4% „ Lowest contract churn in the market at 1.2% ƒ Mobile BB (-0.2 p.p. vs. Q1 08) (´000) Q1 09 Y-o-y growth (%) „ Contract: 4

  19. Slide 19: T. O2 Germany: New commercial approach and innovation

    TELEFÓNICA EUROPE T. O2 Germany: New commercial approach and innovation Total Mobile Contract net adds 14,506 118.2 Mobile +37.6% 85.9 customers +11.5% „ Sustained mobile and fixed BB (´000) performances to reach 3.6% revenue Y-o-y growth (%) growth Mar-09 Q4 08 Q1 09 Q-o-q growth (%) „ Q1 09: Handy

  20. Slide 20: Steady financial profile

    GROUP FINANCIAL EXPENSES AND DEBT Steady financial profile € in millions Seasonal debt reduction 1.95x OIBDA(1) 42,733 +58 +249 42,256 +290 +226 -1,299 Net Fin. Debt FCF Commitments Shareholder Net Financial FX, accruals Net Fin. Debt Dec-08 Post- cancellation remuneration Investments and others Mar

  21. Slide 21: Conclusions

    Conclusions Delivering 2009 Group priorities „ Capturing growth opportunities in expanding businesses „ Increasing OpCF in an economic downturn „ Growing DPS + + Sound EPS growth: Strong financial position +12.9% y-o-y Full commitment to maintain our track record of delivering Group guidance: 2009&2

  22. Slide 22: TELEFONICA S.A. Investor Relations

    TELEFONICA S.A. Investor Relations 22

Telefónica — Q1 2009 Earnings Presentation on 6ix