Full Year 2008 and Q4 Results
Media Conference Call Jaime Smith, André Krause, Johannes Pruchnow 26th February 2009
Agenda 1. Telefónica S.A. – Results 2. Telefónica O2 Germany Review 2008 • Priorities 2008 • Financial Performance 3. Outlook
Telefonica S.A. - Results Solid financial performance in 2008
Extensive Extensivebusiness businessdiversification diversification FY 20081) (yoy): • Revenues +6,9% Integrated Integratedoperations operationsin inkey keymarkets markets
• OIBDA +14,7% • Customer base +13,2 %
Financial Financialstrength strength
1)Assuming constant exchange rates and including the consolidation of TVA in Jan-Sept 07 and Telemig in Apr-Dec 07. Excluding the consolidation of Airwave in Jan-March 2007 and Endemol in Jan-Jun 07. In revenues, the impact in Tef Spain of the new model for the public use telephone service (-147,4 mill€) is included. In OIBDA the impact of sales assets (Airwave, Endemol and Sogecable) in both periods is excluded.
Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 3
Agenda 1. Telefónica S.A. – Results 2. Telefónica O2 Germany Review 2008 • Priorities 2008 • Financial Performance 3. Outlook
Priorities 2008 Our path to continuous profitable growth 1 Improve Improvecustomer customersatisfaction satisfaction 2
• Increase total revenues • Full year +1.5% yoy
Expand Expandsales saleschannels channels
• Improvement in each quarter • Increase profit (OIBDA)1)
3 Utilize Utilizepotential potentialof ofmobile mobiledata data
• Full year +6.6% yoy • 4th Quarter +41% yoy
4 Expand Expandown ownnetwork-infrastructure network-infrastructure
• Growth of customer base • O2 +15%
5 Evolve Evolvebroadband broadbandwholesale wholesale(TDe) (TDe)
1)
like for like excluding restructuring 2007
Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 5
• TDe +100%
Improve Customer Satisfaction A cornerstone of our strategy is to differentiate via customer satisfaction Measures 2008
Achievements
Setting Settingnew newstandards standardsin in hotline quality. No hotline quality. No interactive interactivevoice voiceresponse response
“Best hotline”
Further Furtherenhance enhancecustomer customer consultation consultationquality quality
“Best Shops in terms of tariff consultation”
Attractive Attractiveand andeasy easyto to understand understandtariffs tariffs
“Most favourable tariff”
Building Buildingup upour ourown ownvoice voice and anddata datanetwork network Media Conference Call
Telefónica o2 Germany
26th February 2009
Network Test 2008 slide 6
Rating “good”
“Most satisfied customers” rd (3 year in a row)
Expand Sales Channels We increased our shop-network by 25% O2 Sales Channels
Partner Business Existing Partners • Customer base increase by 34%
• Shop coverage increased to 725 shops (+146) • Q1 2009: acquisition of 80 freenetshops • Inauguration of 2nd flag-ship store in Berlin
• Up-selling of products, e.g. surf-stick • Extend Fonic sales channels
• Online becomes important channel New Partners • Start of Schlecker Prepaid in November 2008 • Start of Maxi Mobile in December 2008
Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 7
Utilize Potential Of Mobile Data Mobile internet is taking off Achievements 2008 Non-messaging mobile data revenue development in billion EUR/ CAGR in %
Build Build Network Network
2.3 2,3
45%
1.7 1,7 Offer Offer Access Access
1.1 1,1
2006
2007
2008
Provide Provide Content Content
Source: VATM Analyse Telekommunikationsmarkt; 16.10.2008; Bitkom 15.2.2009; Market Intelligence
Media Conference Call
Telefónica o2 Germany
• HSDPA + EDGE coverage increased by 4 times
26th February 2009
slide 8
• Customers of O2 Internet Packs tripled • Launch of O2 Prepaid and Postpaid surfstick • Cooperation with Jamba on new content portfolio • Launch of new Internet-toGo portal for handsets
Expand Own Network Infrastructure We have accelerated the roll-out and upgrade of our mobile networks Achievements 2008 Voice
Targets 2009
• Outdoor population coverage of 99% with own network infrastructure1)
• Outdoor pop coverage of 99.9% with own network infrastructure
• Mobile broadband population coverage 78%
• Mobile broadband population coverage 99%
• Start of HSUPA roll-out
• Upgrade of HSDPA to 7.2 Mbit/s
Data
• Launch of HSPA+ By Byend endofof2009, 2009,our ournetwork networkwill willbe beon onincumbent incumbentlevel level–– also alsoininrural ruralareas. areas. 1)
99.9% including National Roaming
Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 9
Evolve Broadband Wholesale (TDe) Telefónica Deutschland has evolved to a stable growth contributor Achievements 2008 • Number of ULL lines boosted to 1.3 mio (+100% yoy) Develop Developcustomer customerbase base
• Biggest increase in broadband wholesale market (ADSL2+) • VoIP traffic increased to 3.2 bn minutes (42% yoy)
Expand Expandnetwork network
• IP infrastructure reaches 62% of household coverage
Financial Financialperformance performance
• OIBDA turnaround achieved
Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 10
Agenda 1. Telefónica S.A. – Results 2. Telefónica O2 Germany Review 2008 • Priorities 2008 • Financial Performance 3. Outlook
Kundenbasis 15% mehr Kunden in 2008 Neukunden in Tsd
Postpaid Prepaid DSL TOTAL
Q4-08
2008
Kundenbasis ∆ 2007
Q4-08
∆ Q4-08
86
730
- 3%
6.967
+ 12%
134*
997*
+ 44%
7.231*
+ 16%
17
140
237
1.867
+ 154% + 24%
215 14.413
+ 188% + 15%
davon: Neukunden in Tsd
Partner
Q4-08
2008
272
953
Kundenbasis ∆ 2007 + 34%
Q4-08 2.653
∆ Q4-08 + 56%
Neukunden in Tsd O2 Mobile
24%
1.867
Postpaid
1.502
Prepaid
756
DSL
691 55 2007
730 997* 140 2008
Neue Breitbandanschlüsse in Tsd Telefónica ULL 34%
Neue Breitbandanschlüsse in Tsd
ULL
Q4-08
2008
118
673
*nach Bereinigung von über 240.000 Kunden Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 12
∆ 2007 + 34%
Kundenbasis Q4-08 1. 343
503
673
∆ Q4-08 + 100%
2007
2008
Gesamtumsatz Unternehmensumsatz steigt 2008 um 1,5%
Gesamtumsatz in Mio €
1,5%
• Gesamtumsatz wächst kontinuierlich – 2008 steigt der Umsatz um 1,5% auf 3,6 Milliarden Euro • Der darin enthaltene Umsatz aus Wholesale Festnetz- und Breitbanddienstleistungen erreicht 435 Mio. Euro - ein Anstieg um 44,3% gegenüber dem Vorjahr
Media Conference Call
Telefónica o2 Germany
26th February 2009
3.541
3.595
2007
2008
Ø 2,9%
slide 13
855
894
915
931
Q1
Q2
Q3
Q4
Mobiler Service-Umsatz Turnaround im vierten Quartal – mobiler Serviceumsatz steigt um 0,7%
• Tunraround beim mobilen Serviceumsatz – erstmals seit zwei Jahren konnte im Q4 ein Umsatzanstieg im Vergleich zum Vorjahresquartal erzielt werden
Mobiler Serviceumsatz Veränderung gegenüber Vorjahr in % Mobiler Serviceumsatz
• Positive Faktoren: Umsatzwachstum durch Neukunden, Anstieg mobiler Datendienste sowie der weitgehende Abschluss der Kundenmigrationen in die neuen Tarife
691m€
716m€
732m€
730m€ 0,7%
-0,9%
• Im Gesamtjahr erreicht der mobile Serviceumsatz 2,9 Milliarden Euro
-1,4%
-2,8%
Q1
Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 14
Q2
Q3
Q4
Investitionen O2 hat 2008 fast eine Milliarde Euro in sein Netz und in neue Shops investiert
CAPEX
• Investitionen steigen 2008 um 8,7%
in Mio €
• 26% des Umsatzes reinvestiert 8,7%
• Ausbau der Netzinfrastruktur 924
850
• knapp 3.000 zusätzliche Basisstationen • Mobile Breitbandtechnologien
221
262
• IP Core Netze
304
• Eröffnung 146 zusätzlicher Shops
137
Q1
Media Conference Call
Q2
Q3
Telefónica o2 Germany
Q4
26th February 2009
2007
slide 15
2008
Profitabilität O2 hat sein Ergebnis in 2008 um 6,6*% gesteigert
OIBDA
• OIBDA steigt in 2008 um 6,6*% auf 770m€
in Mio € 20,4*%
21,4% 6,6%
770
OIBDA Marge 19%
19,9%
21%
722*
25,5%
Q1
178
Q2
192
Q3
237
Q4
2007
*2007 bereinigt um Restrukturierungskosten Media Conference Call
Telefónica o2 Germany
26th February 2009
• Positive OIBDA Entwicklung getrieben durch • Gesunkene Akquisitionskosten (SIMOnly Kampagne, mehr direkte Verkaufskanäle)
Ø 13,3% 163
• OIBDA im Q4 um 40,7*% gegenüber Vorjahresquartal gewachsen
slide 16
2008
• Deutliche Reduzierung des National Roamings durch eigenen Netzausbau
Agenda 1. Telefónica S.A. – Results 2. Telefónica O2 Germany Review 2008 • Priorities 2008 • Financial Performance 3. Outlook
Outlook Telefónica O2 Germany will continue its growth in 2009 Further develop leading position in customer satisfaction
Continue high-performance network and shop roll-out
Grab increasing market share of data business Further improve profitability and accelerate growth
Media Conference Call
Telefónica o2 Germany
26th February 2009
slide 18
Thank you
