Published on February 24, 2008
Slide1: November 2005 Delivering on Challenges Visit our website: www.cosmote.com Strategy: Strategy Our business commitments: Our business commitments We deliver on our key targets EBITDA margin in Greece rising to 44.7% on a quarterly basis AMC’s revenue +15.8% in Q3; EBITDA margin at 61.7% GloBul’s & COSMOFON’s market share rising to 40% & 30% - EBITDA margin at 42.1% and 20.8% in consolidated period Significant untapped potential in Romania Special dividend in 2005 – room for further expansion Enhance Greek operations’ profitability Sustain strong performance in Albania Increase market share & profitability of new operations Romania: Fast launch Strong balance sheet Enhancing the profitable growth prospects COSMOTE Group: An attractive growth profile: COSMOTE Group: An attractive growth profile Continuing fast growth, high margins & positive cashflows Mature operation with strong cash flows & improving profitability Start up, with strong growth prospects COSMOTE Greece AMC Sustainable profitable growth outlook GloBul Strong turnover & profit growth, with significant further potential CosmoFON New operation, positive EBITDA, on turnaround path COSMOTE Romania Enhancing long term growth & cashflow generation Our footprint: Bulgarian population: 7.8 mn Market penetration*: c.69% Subscribers: 2.2 mn Market share*: 40% Share of net adds*: 60% Our footprint Romania Bulgaria Albania FYROM Greece COSMOFON AMC GloBul COSMOTE Romania COSMOTE Greece Greek population: 11.0 mn Market penetration*: >109% Subscribers: 4.5 mn Market share*: 37.6% Share of net adds*: 40% Albanian population: 3.1 mn Market penetration*: c.47% Subscribers: 762,095 Market share*: 52% Share of net adds*: >50% FYROM population: 2.1 mn Market penetration*: c.57% Subscribers: 358,342 Market share*: 30% Share of net adds*: >50% Romanian population: 21.7 mn Market penetration*: c.55% Market subscribers: 12 mn Market share: <1% Re-launch: December 2005 Total addressable population ~ 45.6 mn Current customer base ~ 7.9 mn (+5.5% in Q3) Fast customer uptake * Company estimates Sustainable growth & scale benefits: Sustainable growth & scale benefits Fast growth of international markets adding to Group prospects 2004A 2007E Commercial Synergies Address corporate customers with Balkan presence Provide unified commercial offerings Synergies & Scale economies Management , CAPX & OPEX Synergies Know-how transfer in finance, marketing & technology IT & network consolidation Procurement Synergies Centralized purchasing process Scale savings Q3-2005 pro-forma Becoming the leading Balkan operator Greek revenues International Revenues COSMOTE in Greece: Focusing on improvements : COSMOTE in Greece: Focusing on improvements Enhancing usage, profitability & cashflow generation Focus on subscriber loyalty, enhance distribution & brand perception Continuous commercial initiatives Maximize elasticity impact of tariff & termination changes Optimize cost structure & capital expenditure Enhance market position Increase usage Maximize operational efficiencies & enhance profitability Efficient CAPEX management - increase CF generation Meet the challenges with confidence COSMOTE in the Balkans: Growth opportunities : COSMOTE in the Balkans: Growth opportunities Fast growing economies, to benefit from EU entry Comparatively low penetration – fast growing telecom markets Rapid profitability enhancement Sustain growth & high margins in Albania Solid cash flow generation Diversified & sustainable growth outlook Integration of operations Increasing penetration, market shares & profits Strong growth driven by penetration & market share gains EBITDA margins rising towards Group levels All assets FCF positive (except Romania) enhancing Group cash flows Gradual maturity profile offers steady growth outlook Exploit procurement, network, IT, customer and know-how synergies Operating in the most promising European markets International assets: Clear targets, Clear strategy : International assets: Clear targets, Clear strategy Applying our experience to secure success Build an extended and high capacity network in all countries Attract residential & corporate customers. Exploit the Greek corporate presence Use a mix of quality independent distribution dealers and own shops Apply competitive & customer-friendly tariffs Network quality Mass market offerings Extended distribution network Competitive pricing A proven strategy delivering success Group Financial Results & Outlook: Group Financial Results & Outlook COSMOTE Group: 9m05 Financial Results: COSMOTE Group: 9m05 Financial Results COSMOTE Group 42.8% 44.1% +7.5% Revenues EBITDA Net Income All amounts in million euros 1,139 102 54 6 2 -11 1,292 238 32 -1 -11 -13 255 491 62 1 -1 -6 570 23 10 R E V E N U E S E B I T D A N E T I N C O M E +10.6% +9.0% Improving at all levels : 44.1% Group EBITDA margin COSMOTE Group: 9m05 Financial Results COSMOTE Group: 9m05 Financial Results: COSMOTE Group: 9m05 Financial Results GloBul COSMOFON COSMOTE Romania AMC COSMOTE Greece Revenues EBITDA Net Income 41.6% 43.1% +2.0% 10.9% +66.3% 23.4% 36.3% +58.4% 57.2% 60.4% +15.8% All amounts in million euros Strong performance by all operating subsidiaries Group Outlook: Delivering results – Setting the new targets: Group Outlook: Delivering results – Setting the new targets Setting the new targets 2006 revenue growth to exceed 15% Significant decline of Net Debt / EBITDA from 2006 Unchanged dividend policy 8 - 12% 3 – 7% EPS growth c. 40% over 40% EBITDA margin 12 – 15% 13 – 15% Revenue growth 3 – year CAGR 2005 expectations P&L estimates Comfortably within 2005 Guidance Revenue growth within range, despite later than originally anticipated consolidation of acquisitions EBITDA margin to exceed 40% EPS growth at upper end of range Contained CapX: up to € 350 million (pro forma for Group in 2005) Net debt at low end of range Meeting our commitments – setting the future outlook 2006: A new era for the COSMOTE Group: 2006: A new era for the COSMOTE Group Full year consolidation of GloBul, COSMOFON and COSMOTE Romania Significant revenue & profit growth in the Balkan markets Mature market revenue growth rate in Greece, combined with efforts for continuous margin enhancement First contribution from COSMOTE Romania to revenues EBITDA enhancement in all markets except Romania Free cash flow generation in all markets except Romania Confident on our prospects Conclusion: Conclusion Our commitment to shareholders : Our commitment to shareholders We deliver on our commitments to shareholders Corporate transactions enhancing shareholder value Recent expansion offers increasing returns – looking for new opportunities Enhance turnover growth & profitability margins Maintain optimum capital structure & dividend policy Maximize profitable growth potential in all group operations Pursue investment opportunities to enhance prospects Enhance cashflow generation & maintain shareholder returns Maximize shareholder value Striving to maximize value at all times Slide17: Appendix Review of Operations Greece: COSMOTE Albania: AMC Bulgaria: GLOBUL FYROM: COSMOFON Romania: COSMOTE Romania Greece: COSMOTE: Population: 11.0 million GDP / capita (nominal): $18,036 GDP growth: 3.7% Mobile penetration: >109% Subscriber market share 9m 2005* Greece: COSMOTE Revenues: € 1,139m EBITDA margin: 43.1% % of Prepaid: 62.1% Blended ARPU: € 30.1 Net Debt: € 889m CAPEX: € 50m Key country facts COSMOTE subscriber evolution (‘000) COSMOTE facts & figures 9m 2005 * Company estimates * Company estimates 4,509 Albania: AMC: Albania: AMC Population: 3.1 million GDP / capita (nominal): $ 2,230 GDP growth 2005e : 6% Inflation 2005e: 3.1% Fixed line penetration: 7% Mobile penetration*: 47% Revenues: € 102 m EBITDA margin: 60.4% % of Prepaid: 97% Blended ARPU: € 17 No debt CAPEX: € 6m Subscriber market share 9m 2005* Key country facts AMC subscriber evolution (‘000) AMC facts & figures 9m 2005 * Company estimates * Company estimates Bulgaria: GLOBUL: Bulgaria: GLOBUL Population: 7.8 million GDP / capita (nominal): $ 3,059 GDP growth 2005e: 6% Inflation 2005e: <4% Fixed line penetration: ~40% Mobile penetration: 69% Strong market fundamentals Revenues: € 198 m EBITDA margin: 36.3% % of Prepaid: 67% Blended ARPU: € 12 Net Debt: € 246 m Subscriber market share 9m 2005* Key country facts GloBul subscriber evolution (‘000) GloBul facts & figures 9m 2005 * Company estimates * Company estimates FYROM: COSMOFON: FYROM: COSMOFON Population: 2.1 million GDP / capita (nominal): $ 2,554 GDP growth 2005e: 3.5% Inflation 2005e: 1.5% Fixed line penetration: 29% Mobile penetration: 57% Revenues: € 28 m EBITDA: € 3 m % of Prepaid: 91% Blended ARPU: € 10 Net Debt: € 33 m Subscriber market share 9m 2005* Key country facts CosmoFON subscriber evolution (‘000) CosmoFON facts & figures 9m 2005 * Company estimates * Company estimates Romania: COSMOTE Romania: Romania: COSMOTE Romania Penetration levels of c. 55% - below CEE average (c. 70%) & significant percentage of inactive subscribers Attractive market structure Strong GDP Growth (2005e > 5%) EU accession in 2007 Low corporate tax rate (16%) Population: 21.7 million GDP / capita (nominal): $ 3,336 GDP growth 2004 : 8.0% Inflation 2004: 9.3% Fixed line penetration: ~21% Mobile penetration (9m-05): ~55% Average ARPU € 11 Subscriber market share 9m 2005* Key country facts Mobile market evolution* (in million) Market facts & figures 9m 2005 * Company estimates * Company estimates Slide23: NOTE ON FORWARD-LOOKING STATEMENTS Some of the statements in this presentation 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", "intends", "seeks", "will", "plans", "could", "may", "projects" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We cannot assure that anticipated results will be achieved, since results may differ materially because of both known and unknown risks and uncertainties which we face. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this presentation might not occur. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of their respective dates.