Delivering Sustainable

Transcription

1 Delivering Sustainable Growth Milan, Thursday 5 th November Q 2009 Results Presentation

2 Over 10 Years FASTWEB 10 th Anniversary

3 3Q 2009 Results Regulatory Update Back Up enda

4 Results 446Mln Revenues 4% YoY revenue increase Growth coming from Consumer and SME 139 Mln EBITDA 9% YoY EBITDA growth and margin increase to 31% In line with FY target, despite ULL rate increase 13 Mln Net Result Positive net result for the third quarter in a row In line with FY target 44 Mln FCF Proxi EBITDA-Capex equal to 44 Mln and FCF of 8 Mln In line with FY target

5 2009 Broadband Customer Base Evolution BB Customer Base Growth ( 000) BB Italian Market Growth ( 000) Customer Base EoP 2008 Net Adds 9M 2009 Customer Base EoP 3Q 2009 Italian BB Lines EoP 2008 Net Adds 9M 2009 Italian BB Lines EoP 3Q ,482 * 123 1,605 11, ,107 +8% +7% Source: Italian market figures based on actual data reported by operators and on FASTWEB s estimates 123k new broadband subs representing a 15% share of net adds 8% Customer base increase vs 7% for the Italian market in 9M 2009 * Re-stated from 1,483 to 1,482 for rounding difference

6 2009 Mobile Customer Base Evolution Mobile Customer Base Growth ( 000) Customer Base EoP 2008 Net Adds 9M Customer Base EoP 3Q FASTWEB mobile strategy is working... targeting broadband customer base and the high end market segment by leveraging on 1 Post paid subscriptions 2 Mobile Internet k mobile active customers (Consumer + SME) EoP 3Q % are also fixed line customers Targeting to become the 2nd Italian MVNO player in terms of customer number by 2010 and the incidence of post paid subscriptions is over 40%

7 2009 Revenue Trend and Mix - Total FASTWEB Quarterly Revenue Evolution ( Mln) +4% YoY Executive SME SME 22% 40% Execu Consumer 38% Consumer 3Q08 4Q08 1Q09 2Q09 3Q09 Revenue Mix Consumer Business 38% 62% 3Q 2009 revenues grew 4% YoY Increased contribution of consumer customers to total revenues

8 2009 Revenue Trend - BUs BUs Quarterly Revenue Evolution ( Mln) 155 Consumer +10% YoY ,279k customers EoP 3Q % YoY FASTWEB revenue growth supported by Consumer and SME contribution * * 3Q08 4Q08 1Q09 2Q09 3Q09 SME +8% YoY k customers EoP 3Q 2009 Consumer posted a solid 10% YoY growth rate also thanks to ARPU stability SME growth rate at 8% YoY * * 3Q08 4Q08 1Q09 2Q09 3Q09 Executive -3% YoY Executive revenues down 3% YoY due to the lower contribution from Wholesale (-32%) - Corporate revenues up 23% * Pro forma figures reflecting the extension of the SME perimeter to include Micro Business (managed by the Consumer BU until EoP 2008) 3Q08 4Q08 1Q09 2Q09 3Q09

9 ecutive Focus on Revenue Trend and Growth Executive -3% YoY Wholesale revenues -32% YoY 180 Wholesale -32% YoY 175 Managed decrease concentrated in the low margin voice termination business Corporate +23% YoY Corporate revenues +23% YoY 3Q08 3Q09 Another quarter of solid growth supported by: 1 Upselling + Contribution from new contracts 2 Launch of new added-value services

10 P 2009 EBITDA Trend FASTWEB Quarterly EBITDA Evolution ( Mln) +9% YoY Q08 4Q08 1Q09 2Q09 3Q09 3Q 2009 EBITDA increased 9% YoY, despite negative impact of ULL rate increase Margin up to 31% in the quarter

11 2009 Capex Trend and Mix Capex and Capex/Sales Evolution Capex Mix ( 312 Mln = 100%) IT 19% IT 40% 35% 26% 23% Customer Driven Customer driven 60% 10% Others 11% N&S N&S 9M06 9M07 9M08 9M09 CAPEX TO SALE CAPEX TO SALE Further reduction of the Capex-to-Sales ratio to 23% in 9M 2009 High component of success-driven Capex equal to 60% in 9M 2009

12 2009 Industrial FCF Trend EBITDA-Capex Evolution ( Mln) Industrial Free Cash Flow Evolution ( Mln) 92 9M 06 9M M 06 9M M06 9M07 9M08 9M M06 9M07 9M08 9M FCF proxi in 9M 2009 driven by positive Capex trend and EBITDA progression 26 Mln positive industrial FCF in 9M 2009 The difference between EBITDA-Capex and Industrial FCF is due to non cash and to cash items (net working capital, interest, cash taxes) P

13 Contribution to FY Results/Guidance Revenues 9M % weight on FY EBITDA 9M % weight on FY M M M M M M M % 73% 73% 76% 69% 74% 72% 72% FY Actual 1,707 FY Target ~1,800E Y Actual 1,251 FY Actual 1,433 1,365 FY Actual 317 FY Actual 410 FY Actual* 518 FY Target ~560E 895 1,048 1, M06 9M07 9M08 9M09 9M06 9M07 9M08 9M09 9M 2009 revenue contribution to FY target at the highest level over the last four years EBITDA in the top-end range of past performances and in line with FY target o forma figure indicating industrial performance P

14 3Q 2009 Results Regulatory Update Back Up enda P

15 P gulatory Update (1/2) Public consultation currently undergoing on the remedies proposed by the Authority on the retail and wholesale fixed line access market ( ) Proposed remedies New cost model applicable to TI wholesale services (ULL, Bitstream, WLR) based on Long Run Incremental Cost Potential further reduction of competitive space for AltNets See next slide Introduction of Price Test for TI retail prices and removal of Price Cap on TI retail monthly fee TI retail prices including bundles will be subject to Price Test - Removal of Price Cap poses increased risk of price-squeeze and cross-subsidy practices by TI Must offer principle extended to Bitstream services on TI fiber infrastructure ULL on fiber access and cost orientation for access to civil infrastructure currently not included in the remedies

16 gulatory Update (2/2) Any Ground for a ULL Increase? ULL Penetration Over Total Access Lines Length of Local Loop and ULL Price/KM 5.7 Euro 25% 29% 27% 3.7 Euro 3.5 Euro 4.8 Euro 19% 1.5 KM 2.2 KM 2.6 KM 2.2 KM Italy UK France Germany Despite an early start up, ULL penetration in Italy is far below other countries due to: 1 Recent ULL rate increase 2 Deny, delay, degrade strategy pursued by TI in the delivery and assurance processes Italy UK France Spain Italy has the shortest local loop length and the highest LLU price per Km A further ULL rate increase does not seem to be based on solid regulatory ground rce: FASTWEB elaboration based on publicly available data P

17 3Q 2009 Results Regulatory Update Back Up enda P

18 P 2009 Income Statement 3Q 2009 ( Mln) YoY Change 3Q 2008 ( Mln) Revenues % CoS + Opex + Provis. (306.7) (299.3) EBITDA % Dep n + Write Downs (99.2) (99.2) EBIT % 28.6 Net Financials Charges (15.7) (24.7) EBT % 3.9 Tax (11.8) (5.7) Net Result 12.6 NA (1.8)