2Q 2001 Results Presentation. August 9, 2001

Transcription

1 2Q 2001 Results Presentation August 9, 2001

2 AGENDA Financial and Operational Highlights Core Business Details Guidance for FY2001 2

3 FINANCIAL HIGHLIGHTS 1H 2001 consolidated revenues of 57.0 mln, up from 37.8 mln in 2H 2000 and 4.6 mln in 1H Q 2001 revenues for FastWeb of 11.3 mln, an increase of 64% from 1Q 2001 and over 240% compared to the same period last year FastWeb s gross margin stands at 70% of revenues, maintaining its position as one of the highest in the sector HanseNet s gross profit grows to 7.3 mln (up from 5.6 mln in 1Q 2001 and 4.4 mln in 4Q 2000) or as a percentage of revenues to 47.6% (up from 33.5% in 1Q 2001 and 26.1% in 4Q 2000) Consolidated capital expenditures in 2Q amounted to mln e.biscom has 1,129 mln in cash & equivalents as of June 30, Consolidated cash burn for 2Q 2001 was 76.1 mln 3

4 OPERATIONAL HIGHLIGHTS Total network in Italy and Germany reaches 5,600 Km, of which 3,400 Km are local access (network reach in Milan: 100% of corporate market and > 25% of homes and SOHOs) FastWeb customer base grew over 70% to 14,500 (of which 3,500 corporate and SOHO and 11,000 residential clients) Telecom FastWeb activated its services in Genoa and Turin and signed up its first cutomers in Rome; market penetration in first areas in downtown Milan at 20% FastWeb s monthly revenues in June were more than double of January s monthly revenues HanseNet customer base grew over 40% to nearly 24,000 (of which: 6,400 businesses, 17,500 residential clients and 35 carriers) 4

5 OPERATIONAL HIGHLIGHTS Media Telco Media & B2C Video on Demand is now fully operational: customers can already enjoy nearly 1,000 titles from Universal, Discovery Networks, RAIClick (the JV with the Italian national broadcaster) and several Italian distributors (including Mikado, BIM, Ripley) confirms its position as one of Italy s leading editorial sites, at 1 mln pageviews/day AP.Biscom in 2Q 2001, its first fully operational quarter, already signed up noteworthy clients such as Italy s largest newspaper Corriere della Sera, the Italian Chamber of Deputies, Alitalia and a Assicurazioni Generali iscom s horizontal marketplace, became fully operational in 2Q with a current offer of over 20,000 available line items Deals were closed with Arkimat and Antex 5

6 DEVELOPMENTS SINCE JUNE 30 Socrate Network An agreement was signed giving FastWeb access to Telecom Italia s Socrate network, which permits FastWeb to reach up to 1.5 million households The contract provides for a right of withdrawal if Telecom Italia cedes control of Cecchi Gori Communications by November 2001 Omnitel Vodafone FastWeb is granting Omnitel Vodafone a 15-year IRU on some fibres in its network The agreement covers 2,500 Km (of which 1,600 Km of long distance and 900 Km of local loops) The agreement encompasses 30 of the most important cities in Central and Northern Italy including Milan, Turin, Genoa, Bologna and Rome 6

7 CONSOLIDATED FINANCIALS Q ( Mln) Q ( Mln) Q ( Mln) Revenues EBITDA (31.1) (26.6) (4.8) EBIT (54.9) (42.8) (7.6) Net Income* (30.5) (30.7) (12.9) Cash & equivalents 1, , ,557.1 Total financial debts Capex in the period** *Net income/loss after minority interests ** These amounts include financial investments and exclude investments made by Metroweb SpA in the corresponding period ( 22.4 Mln in Q2 2001, 14.7 Mln in Q and 11.1 Mln in Q2 2000) 7

8 2Q KEY DATA: OPERATING COMPANIES FastWeb HanseNet Gross revenues 11.3 Gross revenues 15.4 Intra-group EBITDA 0.7 (10.0) Intra-group EBITDA ---- (6.2) EBIT Capex * (20.1) 72.9 EBIT Capex * (11.3) 23.2 iscom Gross revenues Intra-group EBITDA EBIT Capex * (2.6) (4.2) 1.4 B2C and Media Gross revenues Intra-group EBITDA EBIT Capex * (9.2) (11.5) 7.4 * The above-indicated capex figures include tangible and intangible but not financial investments and do not include the capex figures of e.biscom SpA. Reconciliation with overall consolidated capex for 2Q 2001 is as follows: = (e.biscom SpA) = (Financial investments) = million Euro Note: for EBITDA and EBIT the differences between the sum of the values shown and the consolidated figures [EBITDA (3.1); EBIT (7.8)] are attributable to e.biscom SpA as well as to goodwill arising on consolidation 8

9 AGENDA Financial and Operational Highlights Core Business Details Guidance for FY2001 9

10 FASTWEB S IP NETWORK Customer segments Businesses Network 1 Network 2 Network 3 FastWeb s integrated IP network Different networks used by... Incumbents CLECs Residentials Network 1 Network 2 Network 1 Cable TVs FastWeb Voice Data / Internet Video Services 10

11 FASTWEB S REVENUE AND ARPU BREAKDOWN EUR Million % Corporate sales consistently produce the bulk of FastWeb s revenues 2 0 1Q Q 2001 Corporate Sales * Corporate sales include revenues from other companies in the e.biscom group Residential Sales Top & Medium Small SOHOs ARPUs (Eur / year) Residentials 100,000 6,500 1,

12 CORPORATE CUSTOMERS: PRODUCT PORTFOLIO Corporate services INCLUSIVE SERVICE: BroadBand access service for voice, video, data & Internet connectivity, an IP Access for: Voice (ISDN PRI, ISDN BRI; POTS) Internet >10Mbps IP-VPN >10Mbps Extended LAN Server Farm Access MULTISITE CLIENT: Broadband bundle of data, Internet, voice connectivity and Housing, through an entry service of IP-VPN Carriers SDH capacity for Telco Operators & Carriers Dark Fiber lease Local loop & long distance provisioning (Carrier to Carrier, Carrier to ISP, Carrier to Top/Medium customers) Monthly recurrent charge according to distance range Two weeks lead time for on net sites B2E (Business to Employee telework) Voice/Video (A/V telephony among employees) Intranet/Data (VPN IP 10Mbps) E-learning (distance learning with live audio/video/slide show; lessons on demand) Business TV (Top Management A/V broadcasting) VideoConferencing (High quality Multivideo conferencing) Broadband ISP ISP services of full service Hosting, Web development & E-commerce Broadband Video Streaming for live events, TV On PC and A/V Interactivity Broadband Managed Housing up to 100 Mbits connectivity + Bandwidth on Demand Server Farm directly peering international & national carriers (1, ,000 sqm) 12

13 CORPORATE AND RESIDENTIAL CUSTOMERS: KEY DATA Corporate clients Residential clients Carriers Top & Medium Small SOHOs 1Q 2001 (EoP) 2Q 2001 (EoP) % % Q Q Q 2001 Selected corporate customers Highlights 100% of Top, Medium and Small companies in Milan addressed Over 40 IP VPN customers Market share at 20% in first areas served 13

14 ITALIAN NETWORK ROLL-OUT Available infrastructure ,791 Network roll-out out and reach are well on target Km , , Q Q Q 2001 Long distance Local access Buildings reached Households addressed Q Q Q Q Q Q

15 FULLY FUNDED PLAN (MODULE 1 ) Addressable 2010 Market Carriers Top & Medium Business 6,000 25% 1,500 Small Business 27,000 24% 6,500 SoHo 300,000 22% 65,000 Residential 3,100,000 26% 800, Revenues Cumul. Capex EBITDA margin 900 mln 1.8 bln > 55% Peak financial EBITDA breakeven Max leverage 1.5 bln x 15

16 HANSENET: CUSTOMERS GROWTH Customers: 2001 vs Relatively stable during the first 3 quarters of the year st Quarter 2nd Quarter 3rd Quarter 4th Quarter Customers: Q on Q evolution 11,800 16,800 23,951 Corporate & SOHOs Residentials... the number of HanseNet customers has grown steadily since e.biscom took over 0 4Q Q Q

17 REVENUE MIX EVOLUTION Revenues EUR Million Non-core Core Steady increase in core revenues... Favourable evolution of revenue mix Q Q Q Q 2001 Gross margins (as a % of revenues) 50,0% 40,0% 30,0% 20,0% 10,0% 22,0% 26,1% 33,5% 47,6%... lead to significant improvement in gross margin 0,0% 3Q Q Q Q

18 AGENDA Financial and Operational Highlights Core Business Details Guidance for FY

19 STRATEGIC HIGHLIGHTS Current situation 4 Core telecom business on track 4 Financial markets continued weakness 4 Drastical decrease in competitive pressure 4 Global slowdown in and online advertising markets e.biscom actions Fully funded plans thanks to: Unique cash position Modular, scalable plan Conservative D/E ratio (1:1) Focus on core telecom business and lower non- core spending Consolidate technological leadership to be ready for market upturn 19

20 e.biscom: FY2001 TARGETS Company New targets ( Mln) Old targets ( Mln) Clients FastWeb HanseNet , ,000 Metroweb* e.bismedia group iscom ~ 10 ~ ~ * Metroweb is not consolidated but e.biscom has management control 20