Empresa de Telecomunicaciones de Bogotá - ETB

Transcription

1 Empresa de Telecomunicaciones de Bogotá - ETB Corporate Presentation August,

2 Agenda 1. Stability - Corporate Governance 2. ETB and the sector 3. Financial Statements 02

3 Estability Corporate Governance Legal Nature and applicable Legal Framework Empresa de Telecomunicaciones de Bogotá S.A. E.S.P - ETB, in accordance with Article 14.6 of Law 142 of 1994, has been classified according to its legal nature as a Semi Public Public Utility Enterprise which forms part of the decentralized sector s Executive Branch pursuant the provisions set out in paragraph ( g ) of paragraph 2 of Article 38 of Law 489 of In Terms applicable legal framework, The Constitutional Court judgment C of 2007 clarified the way in which these types of companies are subject to the rules of private law and the ordinary jurisdiction. ETB, is a public limited Company organized as a public Utility Company under Colombian law. 03

4 Estability Corporate Governance 130 years of operation Enters the mobile market as a virtual operator (MVNO). Acquires 75% of Skynet satellite services company. Name changed to Empresa de Teléfonos de Bogotá (ETB) and becomes a 100% statal company. New name change to ETB and enters the value-added services market. Enters the long distance services market. Strategic Alliance with DirecTV to offer television services. Buys Ingelcom, a paid television service provider. Launches its LTE - 4G services in october Founded as Colombian Telephone Company, eight years after the patent for the telephone Some market reforms were carried out, allowing ETB to compete in various segments Joins the Colombian stock market, allowing private sector shareholders who own 11.6% of the company An Association of Risk Sharing with EPM is achieved to create Colombia Móvil SA. Enters the carrier market and begins to provide DSl internet services. Consolodates its leading broadband internet market in Bogotá Obtain its LTE license and begins to work on the development of the ETB mobile strategy program. Starts the deployment of Fiber to the Home (FTTH) in Bogotá. Starts the development of the IPTV Project. 04

5 Estability Corporate Governance Shareholding composition 05

6 Estability Corporate Governance Shareholding composition Total Private-Ordinary Shares Private-Ordinary ETB Shareholders No. Of Shares % of Total ,6041% 1 FDO FIDELITY INV.TRUST LATIN AMERICA FUND * ,92% 2 AMBER GLOBAL OPPORTUNITIES MASTER FUND LTD * ,63% 3 ALLIANCEBERNSTEIN NEXT 50 EMERGING MARKETS (MASTER * ,33% 4 MORENO BARBOSA JAIME * ,33% 5 JARA ALBARRACIN MANUEL GUILLERMO * ,33% 6 UBS AG LONDON BRANCH * ,26% 7 FONVAL DINAMICO * ,25% 8 INVERSIONES MANANTIAL S.A. * ,21% 9 BLUE ROCK INVESTMENTS S.A.S. * ,19% 10 FONDO ABIERTO POR COMPARTIMIENTOS VALORES BANCOLOMBIA * ,12% 06 Data up-dated: July 15

7 Estability Corporate Governance Organizational Chart ETB Board Of Directors Chief Executive Officer CEO Saúl Kattan Cohen General Secretary Javier Gutiérrez Afanador Communications and Brand Manager Bianca Gambino Rosero Internal Corporate Auditor Mauricio Vasco Moscovith Network Engeniering Manager Iván Mauricio Montenegro Movility Team Manager Isabel Cristina Martínez Coral Homes and People VP. Enterprises and Government VP. Customer Expereince VP. Infraestructure VP. Chief Financial Officer - CFO dministrative and Human Resources VP. Strategy and Business Development VP. IT VP. Carlos Alberto Gómez García Luis Ignacio Betancur Carlos Eduardo Graham S. Daniel Federico Vásquez L. Carlos Hernández Z. (E) Jaime Andrés García Pablo Gómez Mora Juan Manuel Cortina Investor Relations Officer - IRO Eugenia Londoño 07

8 Estability Corporate Governance Management in contact with Investors SAÚL KATTAN COHEN Chief Executive Officer - CEO CARLOS HERNÁNDEZ ZULUAGA Chief Financial Officer CFO (D) EUGENIA LONDOÑO VALLEJO Investor Relations Officer - IRO 08

9 Estability Corporate Governance ETB Associated Companies 39,99% Americas Business Process Services 88,16% Colvatel S.A. E.S.P. 75% Skynet de Colombia S.A. E.S.P. 09

10 Estability Corporate Governance governance Current Certifications ETB was certified for its time in environmental management - ISO14001:2004. ETB ascender from 57 to 83 points in ETB fue certificada corporate Ascendió de 57 a por primera vez en Transparency 83 puntos en dos sus 130 años de años, en Medición measurement - historia en cuidado Empresarial de Transparencia por medio ambiental. Transparencia por Colombia. Bureau Veritas Colombia. otorgó ISO 14001:2004. For the Second consecutive year Recibió por ETB receives From segundo año the Colombian consecutivo, Security reconocimiento Exchange IR (BVC de Bolsa for de its a acronym Valores in de spanish) Colombia the Investor Recognition. Es reconocida ETB is por contar con buenas prácticas de its good Gobierno Corporativo. corporate acknowledge for gobernence practices. ETB is acknowledge "WORLDCOB-CSR " for its ethnics and transparency gestion and for the consolidation of its Corporate Responsability Management. ETB cuenta con el reconocimiento internacional WORLDCOB-CSR. Se destacó la gestión ética y transparente de la compañía y la consolidación de un sistema de gestión de la responsabilidad social. 10

11 Estability Corporate Governance Strategic Current Certifications Certifications BUREAU VERITAS CERTIFICATION Sistema de Gestión de Calidad y Gestión de Riesgos - ISO 9001:2008 y Quality NTCGP1000:2009: Management System and Risk Management - ISO 9001: 2008 and NTCGP1000: Planificación, 2009 diseño, comercialización, consultoría, implementación, operación, "Planning, mantenimiento, Design, facturación, Marketing, consulting, Tesorería implementation, y gestión en prestación operation, maintenance, de servicios de telecomunicaciones billing, electronic y transport de valor agregado Treasury para Management soluciones de and transporte Provision electrónico of de Telecommunications datos, redes corporativas, and Value canales Added dedicados, Solutions acceso paragraph a Internet data, e corporate integración de soluciones en TIC s en el ámbito nacional. networks, dedicated channels, internet access and integration 'S Solutions ICT nationwide. " Sistema de Gestión Ambiental - ISO 14001:2004: Planificación, diseño, comercialización, implementación, operación, mantenimiento, Environmental Management System - ISO 14001: 2004 facturación, Tesorería y gestión en prestación de servicios de telecomunicaciones y "Planning, Design, Marketing, implementation, operation, maintenance, billing, cash de valor agregado para soluciones de transporte electrónico de datos, redes management and supply Management of Telecommunications and Value Added corporativas, canales dedicados, acceso a Internet e integración de soluciones en Solutions para electron transport data, corporate networks, dedicated channels, TIC s en el ámbito local. Internet access and integration solutions ICT'S in locally ". Sistema Management de Gestión System de Information Seguridad Security de la Información - ISO 27001: ISO 27001:2005: Garantizar "Ensuring the la confidencialidad, confidentiality, integrity integridad and y disponibilidad availability of de Information la información Services de los servicios Hosting, SETUP, de Hosting, remote Colocación, backup and Respaldo storage, y located Almacenamiento Offered in Remoto, CUNI Data ofrecidos Center en los and Data Santa Center Bárbara de CUNI de Bogota". y Santa Bárbara ubicados en Bogotá 11

12 Agenda 1. Stability - Corporate Governance 2. ETB and the sector 3. Financial Statements 12

13 ETB and the sector Relevant Information Colombian company: Colombian Capital Nationwide presence: Presence in 8 cities Company with more than 130 years of expertise Solid, competitive and profitable company Largest telecommunications operator in Bogotá, Colombia s largest city with 7.8 million inhabitants (8 million including Soacha) profits amounted to $ thousand pesos; the highest reached by ETB in more than 20 years. Since 2012 ETB has invested $ *COP, the highest figure reported in more than 20 years, maintaining a positive net debt of $ thousand COP. * Figures as June ,2% market share in Bogotá s fixed line market. 33,6% market share in Bogotá s internet market. Fixed line leading operator company in Colombia, with a wide range of telecommunications services, such as: Broad Band Internet over copper and FTTH, IPTV, Mobile, IT and Data Center Services The equity of the company has grown 33,59% in the last 3.5 years, whereas its liability has decreased in the same time 30,55% The ETB share price has gone up 8,81 % from the 1st of January of Where as the COLCAP index went down 16,44% at the same time. 13 7

14 ETB and the sector Evolution of the Corporate Strategic Plan - PEC: MEGA In 2022, ETB will be a Business Corporation worth US$2.5 billion in revenue, with an EBITDA margin exceeding 45% and with 30% of its income coming from outside Bogota.. N-Play services. 4G - LTE mobile services. Regional and Corporate Services strengthening WIFI. Service Excellency. Client Strategic Management. Total investment for strategic programs USD $ 1.0 billion. 14

15 ETB and the sector Strategic Programs N-Play, ETB convergent With this program, ETB is technologically leading the industry. Due to Fiber to the Home (FTTH), we may offer our clients convergent telecommunications services and top-quality entertainment, constituting an innovation in the Colombian market. ETB s 4G Mobile Services In line with the company s transformation process, ETB, in 2014, went from being a land line operator to a land line-mobile operator nationwide.. The commercial 4G Mobile Service offer is supported on a 4G LTE1 access network, together with Colombia Movil, strategic partner Regional Office strengthening ETB continues to grow nationwide was a year of important efforts to consolidate ETB s regional presence, with quality infrastructure and competitive offers in the corporate Wi Fi ETB builds a smart city for all. ETB acquired most of the infrastructure needed for the implementation, management and control of Wi Fi zones in Bogota. Service Excellence. ETB towards a new experience. Different actions were developed throughout the year in order to achieve a cultural transformation; one of such actions was the process of client experience certification, which looks to improve service skills to positively impact the internal client Client Strategic Management, ETB from information to knowledge As a result of the information government model definition, and of the implemented developments in Data Warehouse,, This allows basic information is obtained by strategic business unit, with timeliness and quality to make decisions. 15

16 ETB and the sector Portfolio 16

17 ETB and the sector Portfolio ETB: Fiber To The Home - FTTH FTTH Fiber To The Home 2014 The first year of operation Only operator using FTTH 855 thousand households pased 40% of the households in Bogotá 242 thousand connectable households Bogotá One of the best cities with Internet connection in LATAM Velocidades hasta de: thousand households passed 65% of the households in Bogotá 140 thousand households connected Development of new value-added services IPBX Provisioning over FTTH 20 thousand connected MB/Sec Upload MB/Sec Download 05 17

18 ETB and the sector Portfolio ETB: Nodos FTTH Bogotá 18

19 ETB and the sector Portfolio ETB: IPTV IPTV Television 2014 Launched in June Customers The best platform in Colombia via FTTH Second IPTV antenna in LATAM Variety of channels: 52 HD channels Recording up to 5 channels at a time Option to rewind up to 2 hours Less than 1 second to switch Channels Allows the pausing of live channels for later viewing thousand customers. Implementation of VOD (Video on Demand) Implementation of OTT: live channels on mobile devices New variety of channels Increase HD channels to 83 HBO go and ESPN play online over the Internet IPTV over copper

20 ETB and the sector Portfolio ETB: Móviles 4G 4G mobile 2014 Launched in October Nationwide coverage Partnership with Tigo: Data: 4G spectrum Voice: 3G network Network leasing Low level of CAPEX 20 thousand customers in two months 62% post-paid 38% post-paid Calls COP$ 3 per second Commercial partnerships: Facebook Spotify Whasapp ,000 customers We keep growing: Presence in the country's major cities: Southwestern and northeastern zones Increase presence: in shopping centers, department stores, mobile units and national collection systems 8 customer experience stores in Bogotá Product development for the SMEs / corporate sector Films festival made using Smartphones in LATAM 05 20

21 ETB and the sector Portfolio ETB: Colombia connects with ETB Empresa colombiana para colombianos. Presencia nacional en 8 Ciudades Colombian company. 100% Colombian capital. National presence in 8 cities. 21

22 ETB and the sector Portafolio ETB: Transmission Network, Internet Outlet and Metro Ethernet Networks Santa Marta Barranquilla Cartagena Tulu Fundacion National Transmission Network Trunk capacity installed: 435 Gbps. ETB Fiber optics: 3,953 km. Optic fiber in IRU: 3,930 km. Monteria Cucuta Bucaramanga Internet Outlet (International Channel) 4 IP Nodes IP of Internet Outlet, two of them located in the city of Bogota, one in Barranquilla and another in Cucuta. Medellin Manizales Pereira Armenia Tunja Sogamoso Yopal Puerto Lopez Metro Ethernet Present in more than 20 cities of the country which has 89 equipments at a national level an 1,129 equipments distributed in Bogota. Providers Huawei and Cisco. Ibague Bogotá Cali Villavicencio Neiva Granada 22

23 Number of subscribers other services (Millions) Number of mobile phone subscribers (Millions) ETB and the sector Telecomunication s Sector Evolution TOTAL SUBSCRIBERS BY SERVICE QUARTERLY CHANGE 4Q14-1Q15 ANNUAL - CAGR 1Q14-1Q ,9 50 0,2% 7,4% 6 5 5,4 40 5,3-4,2% -3,9% 4 5, ,1% 13,3% ,7% 12,1% Mobile Services Basic line Dedicated Internet Mobile Internet TV 1,1% 3,6% 23 Source : Prepared by GEC. Information MinTIC File: informetrimestral4t2014.xlsx. Note : The Basic Lines - TPBC, published by MinTIC in 2012 were Billing, during other periods have been Lines in Service..

24 ETB and the sector Fixed Line TPBC, Bogotá - Soacha Subscribers for fixed line (Thousand) Fixed line market share (%) Variation % 4Q14-1Q ,2% - 9,1% 4Q-14 1Q ,5% -0,8% 8,1% 28,1% 8,0% 29,0% 4Q-14 ETB Claro Total subscribers annual UNE 1Q14-1Q15 1Q-15 Movistar Otros 3,3% -1,0% 55,8% 8,0% 55,1% 7,9% Annual CAGR 1.5 % % Households Penetration 93,1% % ETB Claro UNE Movistar 24 * In 2013 MinTIC republished lines in service, unlike in 2012 where they were billed lines. Note : To calculate the household penetration DANE report used : Hogares_viviendas_ xls Source : Prepared by GEC. Information SIUST ( MinTIC 2014) File : informetrimestral4t2014.xlsx.

25 ETB and the sector Dedícate Internet, Bogotá Soacha ETB focused its efforts to maintain its natural market as second operator with 33.4% market share in subscribers, which allowed to grow 5.6% in the last year Internet subscribers (Thousands) Internet market share (%) Variation % 4Q14-1Q15 2,4% -4,0% 1,6% 4Q-14 1,4% 11,9% 1Q-15 1,4% 11,3% 4Q-14 1Q-15 Claro ETB UNE Movistar Otros -2,4% 1,3% 44,7% 33,4% 45,6% 33,0% Total Suscriptores Año 4,5% 8,7% 8,7% 1Q14-1Q15 Annual CAGR 10,4% 12,9% Claro ETB UNE Movistar Otros Household penetration 45,6% 60,9% 25 Note : To calculate the household penetration DANE report used : Hogares_viviendas_ xls Source : Prepared by GEC. Information SIUST ( MinTIC 2014) File : informetrimestral4t2014.xlsx

26 ETB and the sector Paid Television, Bogotá - Soacha CLARO is the market leader followed by DirecTV. However ETB growth begins to register clients for its IPTV offering. Suscriptores de Servicio TV (Miles) 2,9% Variación % 4Q14-1Q15 Participaciones de Televisión (%) ,0% >100% 4Q-14 1Q Q-14 1Q-15 Claro Direct TV Otros UNE Movistar ETB Total Suscriptores Año ,7% 0,4% 3,8% 2,1% 1,0% 0,3% 17,8% 3,0% 7,5% 5,9% 65,5% 1,0% 17,8% 7,6% 5,8% 2,9% 64,8% 1Q14-1Q15 CAGR Anual 5,8 % 6,2% Claro Direct TV Otros UNE Movistar ETB Penetración Hogares 49,9% 48,9% 26

27 ETB and the sector Market Share Subscribers 4Q14 - Colombia Basic Line Dedicated Mobile Mobile Internet TV Internet Services 21,3% 333% 43,6% 41,0% 53,8% 33,3% 43, 6 % 41,0% 53,8% 24,7% 23,3% 7,9% 35,0% 23,2% 26,1% 27,9% 21,2% 22,8% 17,2% 19,8% 11,2% 0,3% 0,5% 0,04% ,1% ,0% ,6% ,7% - - 0,7% 0,5% Operator with the largest market share Other Total (Thousands) 8,1% 4,3% 6,7% Source: Prepared by GEC. Information SIUST ( MinTIC 2014) File: informetrimestral4t2014.xlsx

28 ETB and the sector Market Share Subscribers 4Q14 - Colombia Bogotá Bogotá/Region (BCM) Fixed Line Dedicated Internet Paid TV Fixed Line Dedicated Internet Paid TV Operator with the largest market share 27,7% 44,5% 66,4% 27,7% 44,6% 63,1% 7,6% 8,6% 2,9% 12,1% 12,6% 4,5% 8,4% 12,4% 6,2% 7,4% 10,4% 4,7% 56,2% 33,6% 0,4% 52,0% 30,4% 0,3% ,7% ,6% Other 0,04% 0,9% 5,3% 0,9% 1,9% 6,8% Total (Thousands)

29 Agenda 1. Estabilidad - Gobierno Corporativo 2. ETB y el Sector 3. Estados Financieros 29

30 Financial Statements Balance Sheet (COP$ thousand million) Current assets Total Assets $1.566 $ ,30% $4.699 $ ,65% 4Q-2014 Non-current assets 1Q Q Q-2015 $3.132 $ ,83% 4Q Q Note : The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change. Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December

31 Financial Statements Balance Sheet (COP$ thousand million) Current liabilities Total liabilities $711 $605 4Q Q ,88% $1.836 $ ,36% Long term debt 4Q Q-2015 $1.124 $ ,97% 4Q Q Note : The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change. Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December

32 Financial Statements Balance Sheet (COP$ thousand million) Shareholders Equity $2.863 $ ,92% 4Q Q-2015 Liquidity Leverage 2,35 2,20 1Q Q-2014 Liquidity ratio 39,1% 1Q ,0% 1Q-2015 Leverage ratio 32 Note : The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change. Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December

33 Financial Statements Income of Statement (COP$ thousand million) Profit Revenue ETB Operating Profit $18 $18 0% $352 $351 0% 1Q-2014 Net Profit 1Q Q Q-2015 $17 $43 1Q % 33 Detail 1Q-2014 Note : The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change. Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December

34 Financial Statements Income of Statement (COP$ thousand million) EBITDA $130 37,04% Margin $124 35,33% Margin 1Q Q Note : The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change. Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December

35 Financial Statements Income of Statement Stable Income $2.530 $ 963 Local Fibra + TV Cucuta $ $ 177,193 Residential $ $ Corporate $ $ Internet $ 21,150 Long Distance $ $ Mobile $ Televisión BUSINESS LINE $ $ $ Data $ Special Business $ $ Q Q Variation Mobile STRATEGIC BUSINESS UNITS $ $ 1,223 Infraestructure $ $ 31,450 35

36 COP$ USD$ 621 COP$ USD$ 658 COP$ USD$ 722 COP$ USD$ 754 COP$ USD$ 666 COP$ USD$ 772 COP$ USD$ 793 COP$ USD$ 747 COP$ USD$ 728 COP$ USD$ 681 Financial Statements Revenue % 8% -3% -1% -3% 2% -2,1% -6,4% 1,3% 0,2% 10% 8% 6% 2% % -2% % -6% 800-8% Current revenue Variation

37 - COP$ 20 USD$ 9 COP$ 81 USD$ 28 COP$ 53 USD$ 23 COP$ 86 USD$ 37 COP$ 84 USD$ 41 COP$ 113 USD$ 54 COP$ 69 USD$ 37 COP$ 80 USD$ 44 COP$ 59 USD$ 33 COP$ 62 USD$ 33 COP$ 11 USD$ 6 COP$ 67 USD$ 34 COP$ 78 USD$ 39 COP$ 62 USD$ 23 COP$ 151 USD$ 53 COP$ 178 USD$ 68 COP$ 144 USD$ 55 COP$ 164 USD$ 70 COP$136 USD$ 58 COP$ 131 USD$ 67 COP$ 131 USD$ 67 COP$ 148 USD$ 69 COP$ 129 USD$ 68 COP$ 128 USD$ 67 COP$ 230 USD$ 92 COP$ 320 USD$ 127 COP$ 404 USD$ 152 Financial Statements Dividends ETB has distributed significant amounts in cash of dividends. Since 2002, COP$ billion has been transfered. Declared Paid Nota: (*) Corresponden a Dividendos Decretados en Asamblea Extraordinaria, del 24 de junio de 2015; se aprobó liberar una parte de las reservas ocasionales de la compañía a solicitud del Distrito, el mayor accionista de la empresa.

38 Financial Statements EBITDA CAPEX CAPEX : the increase in property, plant and equipment + intangible increase cash flow - financial statements ETB 50% COP$ 717 USD$ % 53% COP$ 752 USD$ 396 COP$ 756 USD$ % COP$ 634 USD$ % 41% COP$ 615 USD$ 329 COP$ 564 USD$ 282 COP$ 375 USD$ 173 COP$ 249 USD$ 131 COP$ 279 USD$ 151 COP$ 219 USD$ 121 COP$ 620 USD$ 331 COP$ 660 USD$ 330 COP$ 269 USD$ EBITDA EBITDA margin CAPEX 2015 * Ejecutado hasta Junio Note : The financial statements are prepared under International Financial Reporting Standards have not been audited and are subject to change. Not contain an explicit and unreserved statement of compliance with IFRS since the declaration only be expressed in the first financial statements under IFRS they will be issued on December

39 Financial Statements Combined with Low Leverage Coverage Indicators: Net Debt and Interest Cash avaliable Total financial debt 31 December 2014: Cop$ COP$ thousands 31,4 x 27,0 x 22,1 x 12,8x 14,3x 18,1 x 0,1x 0,2x (0,2) (0,5) (0,8) (1,1) Net Debt/ Adjusted EBITDA EBITDA/ Interest COP$ USD$ COP$ USD$ ,29% Financial Leverage Index Cash on Hand and Debt Repayment Schedule (USD$mm) 11,0 % 3,3 % 10,3 % 10,4 % 3,9 % 9,2 % 14.6 % 13,4 % 469,3 265,0 (*) -5,5% -10.7% % -15,0% $0.2 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $ Cash Total Debt Total Debt/ Capitalization Deuda Total / Capitalización Total Net Debt/ Capitalization Total Deuda Neta / Capitalización *TRM average 2014

40 Financial Statements IFRS Financial Indicators $ $ $ 500 $ Precio ETB COLCAP $ $

41 Thank you, Investor Relations Officer - IRO Eugenia Londoño Vallejo eugenia.londonov@etb.com.co inversionistas@etb.com.co + (57-1) (57)