Telekom Austria : Präsentation PDF (2.32 MB)

Results for the first half and the second quarter 2021

Vienna, July 14, 2021

Cautionary statement

'This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as 'believe', 'intend', 'anticipate', 'plan', 'expect' and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward-looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This presentation does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.'

Alternative performance measures are used to describe the operational performance. Please therefore also refer to the financial information presented in the Consolidated Financial Statements, as well as the reconciliation tables provided in the Earnings Release.

Results for the first half and the second quarter 2021	2

Operational and financial highlights

for the first half and the second quarter 2021

Highlights Q2 2021

• Total revenues up by 6.4%:
• • Service revenues grew by 3.9%, driven by solution and connectivity and mobile business
  • Strong equipment sales as the comparison period was impacted by strict lockdowns
• Internet@home growth of +5.2% yoy due to strong demand for mobile WiFi routers
• Mobile contract subscribers rose by 6.8% due to a higher number of M2M subscribers but also due to growth in mobile WiFi routers and a shift from prepaid to postpaid
• Consecutive strong EBITDA before restructuring growth of +8.1% (excl. FX +9.5%)
• Total CAPEX increased to EUR 238.1 mn after low comparable 2020 due to Covid-related cuts and spectrum auctions in Slovenia and Bulgaria
• Roaming: Travel restrictions lifted in most countries amidst lower infection rates and a steady vaccination progress; roaming revenues and margin increasing in Q2 yoy
• Spectrum auction for bands 700MHz, 3.6 GHz and 26GHz started in Croatia mid-July
• ESG: Executing on strategy with more than 100 initiatives
• Belarus - strong operational trends with certain macro uncertainties ahead
• Outlook 2021raised: 2-3% total revenue growth (prev. approx.+1%)

Results for the first half and the second quarter 2021	4

Q2 2021: Solid operational trends in the entire footprint drive service revenue and EBITDA growth

Group (in EUR million)	Q2 2021	Q2 2020	% change
Total revenues	1,165.8	1,095.7	6.4%
Service revenues	976.4	939.5	3.9%
EBITDA before restructuring*	448.6	415.1	8.1%
CAPEX	238.1	147.3	61.7%

• Steady service revenue growth and equipment sales picking up after lockdown-driven weak comparable
• Service revenues grew on the back of continued high demand for mobile WiFi routers, strong solutions and connectivity business as well as sound mobile core business and roaming slightly returning (Q2: positive impact yoy: < 1% on revenues and approx. 1% of EBITDA)
• Total OPEX rose by 4.6%, driven by equipment. Product-related and roaming costs were also higher, offset by lower bad debt.
• EBITDA before restructuring increased by 8.1% as growing service and equipment revenues more than outweighed the higher cost base. Excluding FX and restructuring, EBITDA rose by 9.5%.
• • In Austria, EBITDA before restructuring charges rose by 4.5% (reported: +6.8%) driven by higher service revenues and improved equipment margin, more than offsetting higher OPEX
  • In CEE, EBITDA grew in all markets with Belarus being flat despite FX

	* Restructuring charges: EUR 20.9 mn (Q2 2020: EUR 25.0 mn)
Results for the first half and the second quarter 2021	Negative FX effects of EUR 13.2 mn in total revenues,	5
EUR 9.7 mn in service revenues and EUR 6.4 mn in EBITDA