4Q2005 financial results. Milan, 14th February 2006

Transcription

1 4Q2005 financial results Milan, 14th February 2006

2 Key 4Q05 results Full year 2005 revenue and DSL customer targets in line, outperformed EBITDA target: 4Q05 revenues at ml (+ YoY), bring FY05 revenues to ml (+ YoY) 4Q05 Gross Operating Result (EBITDA) at 32.9 ml (1 of revenues) bring FY05 Gross Operating Result (EBITDA) at ml (1 on revenues), +51% YoY Outperformed ADSL market growth in 3 markets: +235,000 new ADSL adds in the quarter, +682,000 new adds in 2005, reaching over 1.7 ml ADSL customers Total active customers (including dial-up) at 4.7 ml Continues LLU roll-out and migration: >355,000 LLU customers as of (+2 vs ) Increased LLU network coverage Free Cash Flow continues improving, in line with FY2005 target: - 16 ml in 4Q05 vs - 23 ml in 3Q05. NFP at ml vs ml as of

3 Revenue breakdown and dynamics Geographical breakdown of revenues FY05 Business line breakdown of revenues 4Q05 2 The Netherlands Voice Media and VAS B2B 1% Wholesale DSL 19% BROADBAND 4 5% 44% Narrow band Access 2 ULL 10% Bitstream DSL Note: include Czech Republic, TiNet IP Revenue growth: contribution by country YoY 40% 30% 20% 10% 0% -10% 4Q04 vs 4Q05 FY04 vs FY05 32% 33% 28% 9% 11%* () (3%) Netherlands* Consolidated * Net of the sale of 60K wholesale customers 3

4 Analysis by country Geographical breakdown of EBITDA FY05 Revenues and EBITDA by country 4Q05 4% 5% The Netherlands 2 EUR ml % 33% 28% 23% 22% 35% 30% 25% 20% 10% 5% % on revenues 0 Netherlands Other* 0% Note: includes Czech Republic, TiNet IP 4 Revenues Ebitda (% rev) EBITDA by country FY 2005 vs % 30% 30%* 25% 20% 21% 19% 22% % on revenues 10% 5% 8% (5%) 8% 0% -5% Netherlands Ebitda 2004 Ebitda 2005 * Net of the sale of 60K wholesale customers EBITDA ratio to revenues improves in all countries thanks to revenues growth and lower indirect costs. Note: includes Czech Republic, TINet IP. EBITDA by country does not include corporate costs 4

5 Active users as of Evolution of ADSL users Evolution of ADSL users by country Thousands 2, , * , H04 4Q 04 1Q 05 1H 05 3Q 05 4Q 05 * Net of the sale of 60K wholesale customers ULL Bistream Wholesale Thousands ULL 250 ULL 40 ULL 147 ULL * Netherlands *Following the sale of 60K wholesale customers Geographical breakdown of ADSL users NL 1% Netherlands Geographical breakdown of dial-up users 3 55% 3 5

6 DSL market dynamics Tiscali ADSL growth vs market (number of lines) 2005 Tiscali DSL market share YE 2005 : Growth higher than the market s in 2005 (75% vs 55%) : Growth higher than the market s in 2005 (141% vs 52%) Netherlands: Growth higher than the market s in 2005 (49% vs 23%) : Growth lower than the market s, due to strategic rethinking of market positioning Source: Tiscali, Gartner 30% 25% 20% 21% 21% 10% 10% 8% 5% 5% 2% 0% Netherlands Mkt share Share of gross adds Tiscali ADSL GM evolution 04 vs 05 - Average of 4 countries LLU network coverage and investments 90% 80% 70% 60% 50% 40% 6 75% 80% 78% I QRT 2005 II QRT 2005 III QRT 2005 IV QRT % 39% 38% Country N. of CoLos % of HH Capex ULL ( ml) % 40% % % 28% 2 25% 2 Netherlands % 60% % Test in 10% Frankfurt 0% Gross Margin ULL Gross Margin WS Gross Margin Bitsream 6

7 Sharp improvement in profitability and indirect cost reduction Growth in profitability FY05 vs FY04 Indirect cost reduction FY05 vs FY % 20% 1 1 EUR ml Gross Margin From to 1 of revenues Gross Operating Margin/EBITDA FY04 FY05 +38% EBT (97.3) (157.3) 10% 5% 0% FY2004 FY2005 Marketing Personnel G&A 7

8 Financials 4Q05 vs 4Q04 ml 4Q05 % of rev. 4Q04 % of rev. Delta 04/05 Revenues % 32% % 33% Netherlands * (5%) (3%) 7.8 4% 10.2 (23%) Gross Margin % % Operating costs % % 0% Sales & Marketing costs Personnel costs % G&A costs 8.9 4% 12.6 (29%) Trading Margin (EBITDA) % % 1 Other Operating charges & income -6.6 (1.7) Gross Operating Result (EBITDA) % * Includes revenues of 60K wholesale customers sold in 3Q05 to KPN 8

9 Financials FY05 vs FY04 ml FY05 % of rev. FY04 % of rev. Delta 04/05 Revenues % % % 28% Netherlands () % 40.9 () Gross Margin % % Operating costs Sales & Marketing costs % Personnel costs G&A costs () Trading Margin (EBITDA) % Other Operating charges & income -7.6 (17.7) Gross Operating Result (EBITDA) % 9

10 Financials 4Q05 vs 4Q04 ml 4Q05 % of rev. 4Q04 % of rev. Delta 04/05 Revenues Access % % 11% Voice (3%) B2B Media and VAS % % 0.4 Gross Margin % % Operating costs % % 0% Sales & Marketing costs Personnel costs % G&A costs 8.9 4% 12.6 (29%) Trading Margin (EBITDA) % % 1 Other Operating charges & income (6.6) (1.7) Gross Operating Result (EBITDA) % EBIT (14.5) (45.8) 68% EBT (20.3) (52.9) 62% 10

11 Financials FY05 vs FY04 ml FY05 % of rev. FY04 % of rev. Delta 04/05 Revenues Access % % Voice (5%) B2B % % Media and VAS % % % 4.7 1% 143% Gross Margin % % Operating costs Sales & Marketing costs % Personnel costs G&A costs () Trading Margin (EBITDA) % Other Operating charges & income (7.6) (17.7) Gross Operating Result (EBITDA) % EBIT (68.7) (120.8) 43% EBT (97.3) (157.4) 38% Net result (37.0) (134.2) 72% 11

12 Financials FY05 vs FY04 ml FY05 % of rev. FY04 % of rev. Delta 04/05 Revenues* % % % 28% Netherlands () % 40.9 () Gross Margin % % Operating costs Sales & Marketing costs % Personnel costs G&A costs () Trading Margin (EBITDA) % Other Operating charges & income (7.6) (17.7) Gross Operating Result (EBITDA) % % 72% % % 44% Netherlands % % 85% 7.3 8% (5.2) (5%) (240%) % (44%) *: Revenue breakdown doesn t include Corp. adjustments 12

13 Evolution of capital structure ml 31 December September 2005 Cash Other Financial Assets of which Escrow accounts Tax receivables and other assets Total cash and other financial assets Equity Linked 2006* Total Bonds Long term loans Bank overdraft and short term lines Total Bank Debt Leasing Total Financial Debt** Net Financial Debt * Includes accrued interests **Does not include shareholders loan 13

14 Free cash flow 4Q05 ml OFCF 4Q05 = (16.0) 33 (0.5) (44.5) (4) + = Cash as of EBITDA WC CAPEX Interests Leasing Non operational Cash in / out Cash A positive trend. FCF in 1Q05 was - 46 ml, in 2Q05-20 ml, in 3Q05-23 ml and 4Q05-16 ml 14

15 Free cash flow FY05 ml OFCF FY05 = (105) 117 (37.5) (156) 83 52* 30 + (28) + = Cash as of EBITDA WC CAPEX Interests Leasing Non operational Cash in / out Cash A positive trend: FY05 OFCF at 105 ml. FCF in 1Q05 was - 46 ml, in 2Q05-20 ml, in 3Q05-23 ml, in 4Q05-16 ml *Including cash in from disposed assets and July 05 bond repaiment 15

16 Disclaimer This presentation contains unaudited and/or proforma financial data; it also includes forward-looking information that is subject to risks and uncertainties associated with Tiscali and the Internet sector. This information reflects Tiscali s management expectations, based on currently available information. The forward-looking information reflects certain assumed market parameters and other assumptions, but may differ materially from actual future results. This presentation does not constitute an offer of Tiscali shares. Not for release, publication or distribution, in whole or in part, in or into United States, Canada, Australia or Japan. 16