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Disclaimer
This presentation is provided to persons who are entitled to receive it in accordance with the laws and regulations of appropriate jurisdictions. This presentation is provided for information purposes only and does not constitute an offer or an invitation to buy or sell or subscribe to any securities or a solicitation of an offer to buy or sell or subscribe for any security or instrument or to participate in any trading strategy. No part of this presentation may be construed as constituting investment advice or recommendation to enter into any transaction or as providing the basis for any credit or other evaluation. No representation or warranty is given with respect to the accuracy or completeness of the information, estimations, provisions, future expectations or other data, contained in this presentation, and no claim can be made that any transaction of any security will conform to any terms that may be contained herein. Under no circumstance, should OTE, or any of its directors, officers or employees be held liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any information contained in this presentation. Information contained herein may change without notice and OTE undertakes no obligation to update it.
Before entering into any transaction, investors should determine any economic, trading and financial risks, restrictions and benefits, as well as any legal, tax, accounting consequences of doing so, and their ability to assume such risks, without reliance on the information contained in this presentation. You should consult a professional financial advisor before entering in any transactions in securities mentioned herein.
https://www.cosmote.gr/fixed/en/corporate/ir/financial-results/financial-statements-of-ote-group-and-ote-sa
In addition to figures prepared in accordance with IFRS, OTE also presents alternative performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted free cash flow, net debt, adjusted net debt, Capex and adjusted Capex. These alternative performance measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. The purpose and calculations of all 'Adjusted' data and the Alternative Performance Measures presented are detailed in the Alternative Performance Measures Section in the Quarterly Press Releases.
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Strategy: The 7 Pillars of our Strategic Plan
TECHNOLOGY SUPERIORITY
- Accelerate FTTH Optical Fiber Networks deployment
- Expand coverage and introduce new capabilities in 5G network. Upgrade network to be able to support 5G SA technology
- Construct optical network for UFBB project
BEST CUSTOMER
EXPERIENCE
- Digital Transformation @Customer:
- Omni-channel
- Extended functionalities in apps
- Service enhancements in sales and fault management processes
- Push Online Sales
- Load Reduction in front-line
- Digital predictive maintenance @Network
REVENUE
TRANSFORMATION
- ICT projects
- Public & Private Sectors; EU Projects
- Cloud Solutions
- IoT- Smart
Cities-Verticals
- Develop non-core digital services COSMOTE Insurance, BOX, Payzy and Payzy Pro by COSMOTE Payments
LEAD IN
CORE BUSINESS
- Leverage COSMOTE brand superiority
- Upgrade customers speeds in Fixed Broadband, and offer more data on Mobile
- Enhance FMC propositions
- Enhance COSMOTE TV proposition
- Wholesale fiber monetization
DIGITALIZATION, SIMPLIFICATION & COST OPTIMIZATION
- Lean, efficient and agile operating model; introduction of Agile methodology
- Digital Transformation @Company and @Network
- Cost efficiency programs
- Synergies with Deutsche Telekom Group
GROWTH MINDSET
AND CULTURE
- Introduction and evaluation of new working models (Agile, Work from home)
- Re-skilling /Upskilling in new digital skills of employees
- Establish a culture of growth and innovation
- Continue to drive ESG activities in order to achieve targets
- Adopt policies for improving equality, diversity, and inclusion in our workplace
SUSTAINABLE BUSINESS
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Digital Transformation
Our goal: to be the leader for Digital Transformation in Greece and a role-model in Europe
with superior Customer Experience & Operational Efficiency
DIGITAL @CUSTOMER
Digital Interplay
- One App primary touchpoint for all customer interactions
- Pure digital Mobile Rate plan
- Boost online sales
- Contextual digital campaigns
Digitalize Service Processes
- Order2Bill: self-service ordering
- Fault2Repair: self-service fault handling
Simplify Portfolio
- Simplify Product & Tariff portfolio
- Simplify customer journeys
- Converged & simplified IT stack
DIGITAL @NETWORK
Simplification
- Decommissioning of legacy platforms
Autonomous Network Operation
- Predictive Maintenance
- Artificial Intelligence @ Network
Digitalize Field Service
- Autonomous Field Service
- Field technicians digitalization
DIGITAL @COMPANY
Internal Interactions
- Enterprise Mobile App for employees
- Tools for collaboration
Digital Processes
- Processes simplification & automation
- Digitalized & unified workflows
- Digital Signatures
Digital Culture & Skills
- Growth mindset
- Digital Skills & Learning
- Innovation culture
Digital Workplace
- Agile structure
- Working remotely
- Renovated Workspaces
2023 Sustainability Commitments - Performance
CLIMATE NEUTRALITY
OTE Group contributes to DT Group Climate Targets:
- Climate neutral in terms of own emissions (Scope 1&2) by 2025, including up to 95% reduction by 2025, compared to 2017
- 100% Renewable electricity, from 2021 onwards.
- 55% reduction of emissions across the value chain (scopes 1, scope 2 and scope 3 emissions) by 2030, with respect to 2020 levels
- Net Zero emissions across the value chain by 2040
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2023 PERFORMANCE
- Scope 1 & 2: 13.87 kt CO2
- 100% Renewable Electricity: 354.04 GWh
- Scope 3: 444.62 kt CO2 eq
CIRCULAR ECONOMY
Sustainable Waste Management
- Zero ICT waste to landfill (2022 onwards)
- Take back schemes of mobile devices:
- Ratio (%) of mobile devices collected vs sold in previous year: 12% by 2024
- Reach approx. 400,000 items of mobile devices (2022-2024)
- CPEs' take back schemes: retain sustainable management 2022 onwards
Zeroplastic | Paper Reduction |
• Retain single use plastic culture in | 25% paper reduction |
(2020-2023) | |
major buildings in 2023 | |
Sustainable Packaging
- Own branded newly launched devices (by mid 2022)
- 3rd Party smartphones sold by the company by 2025
Zero ICT waste:
100% of ICT waste sustainably managed
>2,200 t of ICT waste sustainably managed
Mobile devices:
- ~12% mobile devices collected vs sold in 2023
- >162,000 pcs of mobile devices collected for recycling
- ~80% of 2024 target (of pcs) achieved
~985,000. pcs of CPEs collected for sustainable management
- 1.1 mil. pcs of single-use plastic avoided
Sustainable packaging:
- >685,000 pcs of own branded devices
- 89% of sold 3rd party smartphones
Paper Reduction
- >31% reduction of paper consumption vs 2020
- >6,9 mil paper sheets (over 32t of paper) reduced vs 2020
INCLUSION & EQUAL OPPORTUNITIES IN THE WORKPLACE
At least 30% women at top and senior managers' positions by 2024
DIGITAL SOCIETY
Impact ~15 mil. peoples' lives through digital inclusion initiatives by 2024 (from 2021)
>23% women at top and senior managers' positions
- > 16 mil. beneficiaries (direct & indirect) since 2021
- 2024 target achieved
Targets refer to OTE Group Greece
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Sustainability Strategic Priorities: Commitments 2024 onwards
CLIMATE NEUTRALITY
OTE Group1 contributes to DT Group Climate Targets:
- Climate neutral in terms of own emissions (Scope 1&2) by 2025, including up to 95% reduction by 2025, compared to 2017
- 100% Renewable electricity, from 2021 onwards.
- 55% reduction of emissions across the value chain (scopes 1, scope 2 and scope 3 emissions) by 2030, with respect to 2020 levels
- Net Zero emissions across the value chain by 2040
CIRCULAR ECONOMY
Sustainable Waste Management
• Zero ICT waste2 to landfill (2022 onwards) | Zeroplastic |
• Take back schemes of mobile devices3: | |
• Retain single use plastic culture in major buildings | |
• Ratio (%) of mobile devices collected vs sold4 12% by 2024 |
- Reach approx. 400,000 items of mobile devices (2022-2024)
- CPEs' take back schemes: retain sustainable management 2022 onwards
Sustainable Packaging | Paper Reduction |
• Own branded newly launched devices5 (since mid 2022) | • 50% paper reduction1 by 2026 vs 2020 |
- 3rd Party smartphones sold by the company by 2025
INCLUSION & EQUAL OPPORTUNITIES IN THE WORKPLACE
• At least 30% women at top and senior managers' positions by 20256
`
DIGITAL SOCIETY
- Development of new digital inclusion initiative for seniors
Commitments refer to OTE Group Greece | 1. | Companies in scope: OTE, GERMANOS, CTS, COSMOTE E-Value |
2. | Waste generated from telecom & retail network, buildings and datacenters |
3. Smartphones, Mobile Phones, Fixed Phones (wired and cordless), Notebooks/Laptops, Tablets, Chargers/Powerbanks & Accessories
- Sold in previous year
- Eg routers, TV decoders
- Commitment refers to Directors, Ex. Directors, Chief Officers of the companies: ΟΤΕ, GERMANOS, CTS, COSMOTE E-Value, ΟΤΕ Academy
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Sustainability & ESG Indices, Rankings and Ratings
The OTE Group responds to sustainability & ESG analysts' questions and assessments. OTE is included in several national and international sustainability/ESG indices, rankings and ratings.
OTE, since 2008, meets the requirements and is included in the FTSE4Good Index Series, which evaluates and monitors in detail listed companies in terms of their performance on Environmental, Social and Governance issues.
OTE maintained a rating of "A" in the MSCI ESG Ratings assessment, in (August) 2023, according to its ESG performance. MSCI ESG Research provides in- depth research, ratings and analysis of the environmental, social and governance-related business practices of thousands of companies worldwide.
Since 2018, OTE has been awarded with the "Prime" status. This title is awarded to companies if the overall ESG Corporate Rating letter grade meets or exceeds the industry-specific (C+ for Telecommunications) defined by ISS ESG's Industry Classification Matrix.
Since 2010, OTE has been participating in the CDP on Climate Change by communicating the required information to its platform. In the 2023 evaluation, OTE received a "B" (Management) score. Companies that score a "B" have addressed the environmental impacts of their business and ensure good environmental management.
As of January 2023, OTE has been included, for the fourth consecutive year, in the Bloomberg LP Gender- Equality Index (GEI). Bloomberg GEI tracks the performance of public companies committed to disclosing their efforts to support gender equality through policy development, representation, and transparency.
ATHEX ESG Index
OTE is included in the ATHEX ESG Index, since July 2021. Initially, in 2021, 35 companies were included in the Index., which monitors the stock market performance of Athens Stock Exchange listed companies that adopt and promote ESG practices.
Highlights
GROUP
A solid start to the year, ongoing positive momentum in Greece
Q1 '24 | +9.2% | +1.2% |
REVENUES | ADJ. EBITDA (AL) |
Q1 '24 | €127m | €117.5m |
FCF | ADJ. CAPEX | |
Proposed Dividend €0.71/share; up +23%
€450m | •€297m in Dividends |
SHAREHOLDERS REMUNERATION FOR 2024 | •€153m in Share Buy Backs |
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GREECE
Solid operating and financial performance
+10.3% | +1.5% | 39.8% |
REVENUES | ADJ. EBITDA (AL) | MARGIN |
FTTH | +3.3% | FTTH network |
subscribers | mobile service | 1,375k homes |
Record | revenues | passed |
additions:+36k | ||
at 287k |
ROMANIA MOBILE
€66.2m €2.8m
REVENUES | ADJ. EBITDA (AL) |
(Q1'24) | (Q1'24) |
Group Overview
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Q1 2024
€877.6m €117.5m
REVENUES (YOY +9.2%) | ADJ. CAPEX (YOY +47.1%) |
€326.0m €127.1m
ADJ. EBITDA (AL) (YOY +1.2%) | FCF (YOY -43.8 %) |
OTE Group is the largest telecommunications provider in the Greek market with presence also in Romania. OTE is among the largest listed companies in the Athens Stock Exchange.
ROMANIA
GREECE
418,002,013 | €5.7b |
No of Shares | MARKET CAP |
As of 31 March 2024 | As of 31 March 2024 |
REVENUES | ADJ. EBITDA (AL) | SHAREHOLDERS |
DT, 52.77% | ||||
Greece, 92% | Greece, 99% | Hellenic State, 1.16% | ||
Romania, 8% | Romania, 1% | E-EFKA* 6.48% | ||
Freefloat, 38.84%
Own Shares, 0.75%
*The stake of e-E.F.K.A includes 19,606,015 shares transferred by Hellenic Republic in 2009
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Disclaimer
OTE - Hellenic Telecommunications Organization SA published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 07:19:10 UTC.