Telekom Austria Group Results for the First Nine Months November 27, 2001

Transcription

1 Telekom Austria Group Results for the First Nine Months 20 November 27, 20 1

2 Disclaimer This presentation contains certain forward-looking statements. Actual results may differ materially from those projected or implied in such forward-looking statements. Forward-looking information involves risks and uncertainties that could significantly affect expected results. These risks and uncertainties are discussed in Telekom Austria's SEC filings, including, but not limited to, Telekom Austria's Form 6-K containing the relevant press release and certain sections of the Company's Annual Report on Form 20-F. Figures contained in this presentation are unaudited. 2

3 Agenda Group overview Operational highlights Financial review Outlook 3

4 Group Overview 4

5 Highlights of the Third Quarter 20 Operating improvement in all four business segments Successful headcount reductions drives fixed line cost cutting, declining market share losses stemmed Rising mobile profitability Intra-year turn around in data communications Internet revenues driven by further growing subscriber figures Improved full year outlook for operating earnings 5

6 Telekom Austria Group EBITDA Group EBITDA* Share in EBITDA* Growth EUR million 1,200 1, % 1, , % Q 00* 3Q * 1-9M 1-9M 00* * 3Q vs. 3Q 00 2Q vs. 2Q 00 1Q vs. 1Q % -7.2% -5.0% -15.9% -9.3% -22.6% 11.0% 44.5% 39.3% 48.8% 3.9% 31.0% -60% -40% -20% 0% 20% 40% 60% 80% 100% Fixed line Data Internet Mobile * Adjusted to exclude the impact of early retirement costs 6

7 Operational Highlights by Business Segment 7

8 Fixed Line Highlights Headcount falls by almost 2,000 during 1-9M; progress ahead of schedule Reduction advances operating and personnel cost efficiencies TikTak tariff packages take-off during third quarter Optimization of customer service organization and process EBITDA margin rises above 40% for the first time 8

9 Personnel Reduction Headcount reduction during the first nine months, net of additions: 1,975 Majority of reduction without additional incentives No. of Fixed Line Employees 15,000 14,804 14,375 14,000 13,322 13,000 12,400 12,000 11,000 Reduction by Category 4% 13% 45% 38% 10,000 9,000 8,000 Sep. 30, 00 Dec. 31, 00 June 30, Sep. 30, Assigned to other group entities Early retirement Golden handshakes Natural attrition 9

10 Further Improvement in Cost Reductions Cost Reduction 1-9 M 20 vs Quarterly Development of Employee Costs 0% Material Employee Depreciation Intercon. Other Total expenses* 4% -5% -4.5% 0% -4% 4.4% -10% -8.5% -9.9% -10.3% -8% -15% -15.1% -12% -12.2% -20% -16% -21.8% -20% -18.5% -25% * Excluding costs for idle workforce and early retirement costs 1Q vs. 1Q 00 2Q vs. 2Q 00 3Q vs. 3Q 00 10

11 Voice Market Shares Losses Improve Voice Market Share Losses TikTak Lines in % 0 Jan. Feb. March Apr. May. June July Aug. Sep. Oct. in thous Decline of losses not yet stable March 31, April 30, May 31, June 30, July 31, Aug. 31, Sep. 30, Oct. 30, Note: Voice market shares excluding internet dial-up traffic 11

12 Front Runner in Broadband ADSL Lines European Jet2Web Stream in thous March 31, June 30, Sep. 30, Dec. 31, March 31, 61 June 30, 72 Sep. 30, Jet2Web Internet Wholesale 12

13 Mobile Highlights Austrian ARPU s driven by value customer focus Adjustment for inactive customers lowers Austrian subscriber base Decline in acquisition costs outbalances increase in retention costs Extension of data applications Rising customer volume and profitability in Croatia Relaunch of Slovenian operator 13

14 Profit Drivers in Austria Share of Contract Subscribers ARPU s / SAC / SRC 50.0% 49.0% 48.0% 47.0% 46.0% 45.0% 47.7% 47.8% 48.2% Dec. 31, 00 March 31, June 30, 49.6% Sep. 30, (EUR million) (EUR) ARPU s Q 2Q 3Q Mobilkom contract Mobilkom prepaid Average SAC SRC M M 1-9M M 14

15 Mobilkom - Mobile Data GPRS Customers Data in % of airtime revenues rises from 8.9% in 2Q to 9.4% in 3Q 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, ,000 June 30, 7,000 Sep. 30, > 15,000 Dec. 31, E Encouraging GPRS growth rates, further development depends primarily on availabilty of additional handsets Testing GPRS usage for business applications SMS rises in 3Q 20 after adecline in 2Q Acquisition of a 49% stake in Paybox Austria will drive mobile payment usage (475 partners already available) 15

16 International Mobile Int. Subscribers Vip-Net s ARPU / SI.Mobil s ARPU customers ('000s) Dec. 31, March 31, Vip-Net 874 June 30, Si.Mobil* Sep. 30, (EUR) (EUR) Vip-Net s ARPU Q 2Q 3Q SI.Mobil s ARPU *Acquired in Feb. 8 1Q 2Q 3Q 16

17 EBITDA - Data Communications Quarterly EBITDA s (EUR million) Successful intra-year turn around Revenue growth in 3Q driven by solution business Headcount reduction 0.0 1Q 2Q 3Q 17

18 Jet2Web Internet Co-operations Medienhaus + Partner X-Art SAP Company ORF (Austrian Broadcasting Company) Content Business TV Streaming and Web Design Full Integrated Services for Online Video Applications Bizmarket - Communication and Data Platform for B2B Transactions Delivery of video content for broadband multimedia channel, 2.5% stake in Jet2Web Internet 18

19 Financial Overview 19

20 Telekom Austria Group Figures (EUR million) 3Q 3Q 00 % change1-9m 1-9M 00 % change 4Q 00 FY 00 Total managed operating revenues 1, % 2, , % ,896.2 Total managed EBITDA* % 1, % ,059.9 Total managed EBITDA (adjusted)** % 1, , % ,313.1 Total managed EBIT* n.m % Total managed EBIT (adjusted)** % % Consolid. net result of Telekom Austria, with Mobilkom at-equity n.m n.m Capex % % * excluding costs for idle workforce n.m n.m ** adjusted for early retirement costs n.m n.m EBITDA is defined as operating income excluding depreciation, amortization and costs for idle workforce. See slide

21 Business Segments - 3Q Revenues & EBITDA Revenues EBITDA (adjusted) (EUR million) 995.5* 1,5.2* 1, , Q 00 3Q (EUR million) * * Q 00 3Q -7.3 Fixed line Mobile Data Internet Fixed line Mobile Data Internet * Total managed group figures 21

22 Idle Workforce & Early Retirement Costs (EUR million) 1-9M 00 FY M FY E Costs for idle workforce excluded in reported EBITDA Early retirement costs included in reported EBITDA there of: - fixed line data communications Costs for idle workforce: expenses for employees who have been released or transferred from the work force as well as all cash settlements for civil servants who have agreed to leave with severance packages. Early retirement costs: Accrued costs for early retirement programs, which were finalized in 2000; current costs refer to interest costs 22

23 Mobile - Geographic Breakdown 1-9M Revenues EBITDA (EUR million) 1, , ,271.8* 1,116.6* ,3.4 1,080.7 (EUR million) * * M M M M Mobilkom Austria Vip-Net SI.Mobil Mobilkom Austria Vip-Net SI.Mobil * Total consolidated numbers 23

24 Ongoing Capex Reductions Telekom Austria Group CAPEX (EUR million) 1, E 1-9M M 50% of fixed line capex for extension of broadband activities, primarily ADSL 35% of mobile capex for foreign operations UMTS build-out on track Reduction of full year forecast Mobilkom Austria Telekom Austria 24

25 Net Debt & Equity- Telekom Austria Group Continuing Reduction of Net Debt (EUR million) 4,000 3,500 3,000 2,500 2,000 1,500 3, , % 3, % 3, % , ,6.5 2, , % 2, , , , % 135% 130% 125% 120% 115% 1, % % 0 Dec. 31, 00 March 31, June 30, Sep. 30, 100% Telekom Austria Mobilkom Austria Net debt/equity ratio Equity 25

26 Outlook 26

27 Outlook for Q4 20 Fixed Line EBITDA margins driven by headcount reductions and increased efficiency Declining market share not yet stable Mobile Continuing positive trend in general Seasonal decline of margins impacted in addition by the negative contribution from Slovenia Data Further operating improvement during the rest of the year Internet Increasing operating loss due to the launch of the broadband portal speed.at Group Higher EBITDA margins even if adjusted for early retirement costs Negative net result due to impairment write-offs and lower fourth quarter 27

28 Reorganisation of Fixed Line Business Wholesale Retail Wholesale marketing & sales Strategic Portfolio & Technology Management (PT) Business Solutions Residential/ SOHO Integrate marketing & sales under single leadership Accelerate and support product development Join business customer distribution within Telekom Austria & Datakom Merge Internet access and voice to win back customers Network Customer Care Media Realize cost synergies through concentration of network operations Ensure 100% end-toend customer satisfaction Focus on portal business 28

29 Appendix

30 Fixed Line - Access Channels Access Channels / ADSL Lines Channels in ( 000s) 4,000 3,833 3,842 3,828 3,810 ADSL Lines 90, , ,007 69, ,000 70,000 2,000 54,000 60,000 1,000 2,929 2,865 2,821 39,000 2,785 50,000 40,000 0 Dec. 31, 00 March 31, June 30, Sep. 31, PSTN ISDN ADSL 30,000 30

31 Fixed Line - Minutes (in millions of minutes) 1-9M M 2000 % Change Local 3,348 4, % Long distance % Fixed-to-mobile % Internet dial-up 3,180 2, % Other Calls 3,034 2, % Total fixed line minutes 10,809 11, % International traffic % Carrier services: Incoming international % Outgoing international % 31

32 Fixed Line - Market Shares Market Shares 100% 93.6% 93.5% 93.1% 80% 60% 59.9% 58.5% 57.3% 62.8% 61.6% 60.3% 47.5% 46.4% 45.8% 45.9% 45.5% 45.2% 40% Access channels Total market share* Local* Long distance Internat. *Including internet dial-up traffic March 31, June 30, Sep. 30, 32

33 Fixed Line - Average Tariffs (In EUR for one minute) Average Tariffs in EUR Local Long distance Internetdial up Fixed to mobile Internat. Total average 1-9M M 33

34 Mobilkom s Subscribers Mobile Subscribers Austrian Mobile Market customers ('000s) 4,000 3,500 3,000 2,500 2,000 1,500 1, , ,480 1,482 1, ,354 1,377 1,393 Dec. 31, 00 3, March 31, 3, June 30, 3, Sep. 30, Customers ('000s) 3,000 2,500 2,000 1,500 1, ,834 2,859 2,810 2,120 2,143 2,136 1,252 March 31, ,312 1,363 June 30, 335 Sep. 30, Mobilkom contract Mobilkom prepaid Vip-Net Si.Mobil Mobilkom max.mobil One tele.ring 34

35 Mobilkom s Traffic Development 1-9M M Charged minutes (millions) * 2,347 2,708 Non charged minutes (millions) * 1,998 2,347 Average number of customers ('000s) 2,484 2,839 Minutes per customer per month - charged non charged * Rated MOUs of Mobilkom customers 35

36 Mobilkom - Mobile Data Data Revenues in % of Airtime Revenues No. of SMS per Quarter (in million) 10% 9% 8.3% 9.4% % 7% 6% % 1-9M M 50 March 31, 00 June 30, 00 Sep. 30, 00 Dec. 31, 00 March 31, June 30, Sep. 30, Note: New basis of calculation 36

37 Internet in Austria Internet Subscribers Residental Market Share customers ('000s) Sep. 30, Dec. 31, 00 March 31, June 30, * 575 Sep. 30, * 45% 40% 35% 30% 25% 20% 15% 10% 31 %* 3% 28% March 31, 39%* 3% 4% 36% 38% June 30, 42%* Sep. 30, Dial-up ADSL Jet2Web Internet Mobilkom Austria (A1Net, A1Plus.at) *Including 90,000 subscribers acquired during 2Q * Telekom Austria Group 37

38 Head Count* Development (average of period) 1-9M 1-9M 00 % Change Fixed Line 13,447 15, % Mobile 3,194 2, % Data % Internet % Telekom Austria Group 17,857 18, % (end of period) Sep. 30, Sep. 30, 00 % Change Fixed Line 12,400 14, % Mobile 3,398 2, % Data % Internet % Telekom Austria Group 17,037 18, % * = Full-time-equivalents 38

39 Fixed Line - Key Financial Data (EUR million) 3Q 3Q 00 % change 1-9M 1-9M 00 % change 4Q 00 FY 00 Operating revenues % 1, , % ,654.8 EBITDA* % % EBITDA (adjusted)** % % EBIT* n.m n.m EBIT (adjusted)** % % * Excluding costs for idle workforce n.m n.m ** Adjusted for early retirement costs n.m n.m

40 Fixed Line - Revenue Breakdown (EUR million) 3Q 3Q 00 % change 1-9M 1-9M 00 % change 4Q 00 FY 00 Traffic revenues % % Monthly rental % % Interconnection % % Leased lines % % Equipment % % Other % % Total fixed line operating revenues % 1, , % ,

41 Mobile - Key Financial Data (EUR million) 3Q 3Q 00 % change 1-9M 1-9M 00 % change 4Q 00 FY 00 Operating revenues % 1, , % ,500.1 EBITDA % % EBIT % % Net income* % % * Including the one-off tax effect (EUR 134.4million) resulting from the change of legal structure of Mobilkom Austria 41

42 Mobile - Revenue Breakdown (EUR million) 3Q 3Q 00 % change1-9m 1-9M 00 % change 4Q 00 FY 00 Traffic revenues % % Monthly rental % % Equipment % % Roaming % % Interconnection % % Other % % Discounts % % Total mobile operating communications revenues % 1, , % ,

43 Data - Key Financial Data (EUR million) 3Q 3Q 00 % change 1-9M 1-9M 00 % change 4Q 00 FY 00 Operating revenues % % EBITDA % % EBITDA (adjusted) * % % EBIT % % EBIT (adjusted) * % % * Adjusted for early retirement costs

44 Internet - Key Financial Data (EUR million) 3Q 3Q 00 % change 1-9M 1-9M 00 % change 4Q 00 FY 00 Operating revenues % % EBITDA % n.m EBIT % n.m

45 Operating Revenues by Segment (EUR million) 3Q 3Q 00 % change 1-9M 1-9M 00 % change 4Q 00 FY 00 Fixed line services % 1, , % ,654.8 Data communications services % % Internet % % Intersegmental eliminations % % Consolidated operating revenues % 2,0.0 2, % ,814.4 Mobile communications services % 1, , % ,500.1 Intersegmental eliminations % % Total managed operating revenues 1, % 2, , % ,

46 EBITDA by Segment (EUR million) 3Q 3Q 00 % change 1-9M 1-9M 00 % change 4Q 00 FY 00 Fixed line services % % Fixed line services (ajusted) % % Data communications services % % Data com. services (adjusted) % % Internet % n.m Intersegmental eliminations & other Consolidated EBITDA % % Consolidated EBITDA (ajusted) % % Mobile communications services % % Intersegmental eliminations & other Total managed EBITDA % 1, % ,059.9 Total managed EBITDA (ajusted) % 1, , % ,313.1 Note: Adjusted = Excluding early retirement costs 46

47 EBIT by Segment (EUR million) 3Q 3Q 00 % change1-9m 1-9M 00 % change 4Q 00 4Q 00 Fixed line services n.m n.m Fixed line services (adjusted) % % Data communications services % % Data com. services (adjusted) % % Internet % n.m Intersegmental eliminations & other % % Consolidated EBIT % % Consolidated EBIT (adjusted) % % Mobile communications services % % Intersegmental eliminations & other Total managed EBIT n.m % Total managed EBIT (adjusted) % % Note: Adjusted = Excluding early retirement costs 47

48 Cash Flows - Telekom Austria Group Telekom Austria AG Mobilkom Austria AG (EUR million) 1-9M 1-9M 00 % 1-9M 1-9M 00 % Cash flow from operating activities % % Cash used in investing activities % % Cash from (used in) financing activities % % Effect of exchange rate changes % n.m. Net increase (decrease) in cash and cash equivalents % % 48

49 Net Debt - Telekom Austria Group (in EUR million) Dec. 31, 00 Mar. 31, Jun. 30, Sept. 30, Long-term debt 2, , , ,147.1 Short-term debt , , Cross border lease, included in s/t debt Capital lease obligations Intercompany loans for Mobilkom Austria Cash and cash equivalents and short-term investments Financial instruments, included in other assets Net debt Telekom Austria 2, , , ,534.0 Long-term debt Short-term debt Cross border lease, included in s/t debt Cash and cash equivalents and short-term investments Net debt Mobilkom Austria Net debt of Telekom Austra Group 3, , , ,291.2 Shareholders' equity 2, , , ,605.9 Net debt/equity 131.3% 137.5% 135.5% 126.3% 49

50 Thank you! 50