Transcript Degtinė ULTRA Prekinio ženklo strategija

BEGINNING OF A NEW ROAD
TEO LT, AB
CORPORATE PRESENTATION
October 2006
HISTORY OF THE COMPANY
1992-1997
State-owned
company
October 2006
1998-2002
Privatisation and
modernisation
2003-2005
Market
liberalisation
2006-
Re-branding
TEO LEADERSHIP IN
LITHUANIA
• No. 1 in fixed voice telephony
• No. 1 in broadband internet
• No. 1 in data communication and leased lines
• No. 1 in Call Center services
• No. 1 in the social partnership
• Most liquid share on Vilnius stock exchange
October 2006
BUSINESS OF TEO
VOX - voice services for
residential customers
ZEBRA - internet services
for residential customers
TEO VERSLAS - voice, internet, data
communication and IT services for
business customers
October 2006
GALA – digital television
services
TEO – PART OF TELIASONERA GROUP
• TeliaSonera - largest operator in
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the Baltic region
Consolidated mobile and fixed
business in Estonia and Lithuania
Consolidated mobile business in
Latvia
Minority holding in fixed business
in Latvia
Baltic countries: 10.4% of total
TeliaSonera net sales (2005)
TEO: 2.3% of net sales and 3.3%
of EBITDA (2005)
October 2006
TELIASONERA CUSTOMERS IN THE
BALTICS
• Estonia:
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- 677,000 mobile
- 388,000 fixed voice
- 121,000 datacom & broadband
Latvia:
- 735,000 mobile
- 624,000 fixed voice
- 68,000 datacom & broadband
Lithuania:
- 1,889,000 mobile
- 798,000 fixed voice
- 126,000 datacom & broadband
October 2006
TEO IS A PUBLIC COMPANY
• Amber Teleholding A/S - subsidiary of
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TeliaSonera AB
State of Lithuania reduced its stake
from 10.03% (2003) to below 2% by
giving shares of the Company to the
citizens of Lithuania as a
compensation for realty redeemable by
the State of Lithuania (realty seized
during the Soviet times)
UAB Lintel, a member of TEO Group,
holds the treasury stocks since IPO
More than 12 thousand shareholders
October 2006
Structure of shareholders (30 September
2006)
27.85%
60.00%
4.67%
1.80%
5.68%
Amber Teleholding A/S
East Capital Asset Management AB
State of Lithuania
Treasury Stocks
Other Shareholders
TEO GROUP
TEO LT, AB
(voice, internet, wholesales, data
communication, digital TV
services; Internet portal Zebra)
• In 2006, disposed construction
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business, UAB Comliet
Disposed UAB TietoEnator
Consulting (26%)
Acquired remaining 40% in UAB
Baltic Data Center
100% stake in OOO ComlietKaliningrad (Kaliningrad Region,
Russian Federation)
Dormant Baltic Data Center’s
subsidiary in Latvia, Baltic Data
Center SIA
October 2006
100%
UAB Lintel (directory inquiry 118, contact
center services, treasury stocks)
100%
UAB Baltic Data Center
(IT infrastructure services)
100%
UAB Voicecom
(NMT-450 network)
100%
UAB Kompetencijos Ugdymo Centras
(training and consultancy)
100%
VšĮ TEO Sportas (women’s basketball
team TEO, fitness club ZEBRA SPORT)
TELECOMMUNICATIONS MARKET IN
LITHUANIA (H1 2006)
• Total revenue: LTL 1,289 million
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(LTL 1,148 million in H1 2005)
Growth: 12.32% (y-o-y)
Penetration per 100 residents:
fixed voice – 23.3
mobile voice – 130
internet – 42.1
broadband internet – 8.4
Investments: LTL 214 million
Source: Report of Communications Regulatory Authority
October 2006
Revenue breakdow n by segm ents
45.2%
16.7%
1.0%
3.4%
22.1%
10.0%
1.7%
Mobile telephony
Fixed-line telephony
Leased lines
Internet access
Data communication
Netw ork's interconnection
Cable TV and other
TEO COMPETES IN ALL AREAS EXCEPT
MOBILE VOICE
Market
Market revenue in
H1 2006 (LTL million)
Market growth
y-o-y (%)
Number of
players
Share of TEO
in Q2 2006 (%)
Fixed voice
215
-4.5
47
95.9
Leased lines
12
-7.8
17
51.3
Internet access
129
31.4
115
41.9
Data communication
22
10.4
12
49.6
Network interconnection
284
16.1
4+
19.5
Mobile voice
583
3.0
7
--
• CATV market is very fragmented: 51 players, market revenue LTL 33 million (H1 2006),
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only 2 operators with market share above 10%.
Radio and TV program transmission is dominated by one player. Market revenue LTL 10
million (H1 2006).
Source: Report of Communications Regulatory Authority
October 2006
VOX - VOICE TELEPHONY SERVICES
• Number of main lines in service:
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-2.5% (y-o-y)
Disconnected lines mainly none
revenue generating ones
Stable number of business
customers lines: 175 thousand
Number of subscribed payment
plans: 606 thousand
Total traffic: -2.3%
Number of alternative operators
customers: 52 thousand (Q2 2006)
VoIP services launched in August.
October 2006
Num ber of m ain lines (thou.)
850
800
812
807
802
799
791
786
750
700
650
600
2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2
ZEBRA - INTERNET SERVICES
• Number of broadband internet
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connections: +93.8%
3 major internet payment plans:
- Basic (up to 256 kbps during off-peak
and weekend time for 26 LTL),
- Optimum (up to 1 Mbps without
limitations for 49 LTL),
- Premium (up to 4 Mbps without
limitations for 79 LTL).
More than 600 wireless internet (Wi-Fi)
access points. Connection speed
increased up to 4Mbps. 1,000 access
points by end of 2006.
Number of dial-up internet access users:
16 thousand (30 thousand a year ago).
October 2006
Number of ADSL access points
160,000
135,274
140,000
118,560
120,000
104,798
100,000
84,606
69,804
80,000
61,928
60,000
40,000
20,000
0
2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2
NEW SERVICES
• July 2006: TEO started transmission of
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digital terrestrial television (DVB-T)
signals in Vilnius area
Licence for construction of 2 out of 4
national DVB-T networks for
transmission of 10 TV programs per
network
By 2012 DVB-T should completely
substitute analogue terrestrial
transmission of TV programs in
Lithuania
September 2006: PC maintenance
service for small and medium size
companies
October 2006
GALA – NEW GENERATION TELEVISION
• IP TV launched in October
• Basic package - 38 TV programs
• 4 additional packages: news, cinema,
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leisure and knowledge
Basic monthly fee – 35 LTL
Available for almost all TEO customers
all over the country
Digital video and audio quality
Selection of broadcasting language
Internet and e-mail on TV screen
More IP TV functionalities in spring of
2007
October 2006
MAJOR FINANCIAL INDICATORS
• In 2005:
- revenue +1.5%
- EBITDA +5.7%
- EBITDA margin: 48.6%
- net profit + 149.9%
- investments: LTL 74 million
Revenue, EBITDA and Net Profit (LTL million)
1,200
1,039
1,059
1,000
968
810
800
600
524
564
• In H1 2006:
- revenue +0.3%
- EBITDA +4.2%
- EBITDA margin: 51.1%
- net profit +74.9%
- investments: LTL 29 million
October 2006
240
200
67
-35
2000
Revenue
337
357
182
0
-200
733
504
388
400
723
2001
2002
2003
EBITDA
34
2004
84
2005
Profit
REVENUE
Breakdown of revenue
Revenue by quarters (LTL million)
160
24.0%
140
3.8%
133
137
35
35
130
129
132
37
42
43
44
13
13
15
8
6
2005 Q2
2005 Q3
2005 Q4
2006 Q1
2006 Q2
132
120
100
80
60
72.2%
40
20
Voice telephony
Internet & datacom
Other
October 2006
8
0
2005 Q1
Voice telephony
Internet & datacom
Other
OPERATING EXPENSES AND EMPLOYEES
Breakdown of expenses
Num ber of TEO Group em ployees
3,600
38.7%
33.7%
3,066
3,100
3,023
2,978
3,005
2,826
2,774
2,600
2,100
1,600
27.6%
Employee related
Interconnection
Other
October 2006
1,100
600
2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2
BALANCE SHEET AND CASH FLOW
(H1 2006)
• Total assets: LTL 1,172 million
• Cash and short term financial
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investments: LTL 268 million
Loan granted: LTL 100 million
Borrowings: LTL 12.4 million
Net debt is negative (LTL -255 million)
Gearing ratio: -24.5%
Equity to assets ratio: 9 to 10
ROA: 6.5%
ROE: 6.0%
Paid-out dividends: LTL 124 million
October 2006
Cash Flow
200
158
150
100
123
116
154
165
139
50
0
2004 H1
2005 H1
2006 H1
Net cash from operating activities (LTL million)
Net cash before financing activities (LTL million)
DIVIDEND PAYOUT
Earnings and Dividends per Share
• Dividend payout ratio for 2005 was
also determined by decrease in
retained earnings of parent Company
by LTL 216 million due to changed
subsidiaries accounting policy from
equity method to accounting at
acquisition cost
0.35
0.30
0.30
0.23
0.25
0.20
0.15
0.15
0.13
0.11
0.10
0.09
0.11
0.05
0.00
-0.05
2000
2001
0.06
0.06
2002
2003
-0.05
-0.10
Earnings per share (LTL)
October 2006
0.16
0.04
2004
2005
Dividend paid per share (LTL)
MOST LIQUIDE SHARE ON VILNIUS STOCK
EXCHANGE
• Initial Public Offering (IPO) in June 2000
• Shares listed on Vilnius Stock Exchange
(VSE ticker: TEO1L)
• Global Depository Receipt (GDRs)
program: 1 GDR = 10 shares
• 12.16% of shares are represented by
GDRs (30 June 2006).
• GDRs are listed on London Stock
Exchange (LSE ticker: TEOL).
• Share price:
- all times high: 3.19 LTL (June 2000)
- all times low: 0.75 LTL (October 2002)
October 2006
Market Capitalisation of the Company at the end of
period (LTL million)
2,500
2,000
2,208
1,752
1,907
1,711
1,279
1,500
1,019
1,000
733
500
0
2000
2001
2002
2003
2004
2005
9 month
2006
CORPORATE GOVERNANCE OF TEO
Shareholders’ Meeting
Audit Committee
Board
Remuneration Committee
General Manager
• AGM within 4 month after the end of the financial year
• The Board consist of 7 members elected for a 2 years term
• New Board was elected on 24 April 2006
• Audit and Remuneration Committees consist of 3 Board members each
October 2006
BOARD OF TEO
Erik Hallberg,
TeliaSonera AB
Brita Hanberger,
TeliaSonera AB
October 2006
Gintautas Žintelis,
TEO LT, AB
Matti Hyyrynen,
EBRD, Head of Vilnius
and Riga office
Morgan Ekberg,
TeliaSonera AB
Gert Tiivas,
East Capital Asset
Management AB
Valdo Kalm,
CEO of EMT,
TeliaSonera Group
MANAGEMENT OF TEO
Arūnas Šikšta
(born 1968),
General
Manager
(CEO)
October 2006
Darius
Gudačiauskas
(born 1975),
Chief Sales
Officer and
Deputy General
Manager
Nerijus
Ivanauskas
(born 1970),
Chief Marketing
Officer and
Deputy General
Manager
Darius
Didžgalvis
(born 1969)
Chief Operating
Officer and
Deputy General
Manager
Jan-Erik
Elsérius
(born 1943)
Chief Financial
Officer and
Deputy General
Manager
SOCIAL PARTNERSHIP
• More than LTL 3 million annually spend
for sponsorship and support of:
- educational projects
- local communities
- cultural events
- social projects
- women basketball
• “Swedish Business Awards 2006”
• One of the most attractive employers
October 2006
THANK YOU
FOR YOUR
KIND
ATTENTION
ANY QUESTIONS?
WWW.TEO.LT
October 2006
BEGINNING OF A NEW ROAD
TEO LT, AB
CORPORATE PRESENTATION
October 2006