Corporate Profile - 2020 annual figures - Telefónica
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Corporate Profile 2020 annual figures
Telefónica’s
mission and
Our mission: we want to make our world more
values human by connecting lives.
Values
WE ARE WE ARE WE ARE
OPEN BOLD TRUSTED
About Telefónica
Telefónica is one the largest telecommunications service providers in the world. The company offers fixed and
mobile connectivity as well as a wide range of digital services for residential and business customers.
With 345 million customers, Telefónica operates in Europe and Latin America.
Telefónica is a 100% listed company and its shares are traded on the Spanish Stock Market and on those in
New York and Lima.
Telefónica, almost 100 years of history
2019
Announces 2021
1924 1999 2006 2014 sale of Central Sale
of Telxius’ towers
Telefónica (CTNE) is Telefónica becomes a fully Acquisition of E-Plus in America.
Acquisition of O2 Controlling business to
founded in Madrid, Spain. public company. (UK, Germany stake in Germany. 5-Point Plan
Colombia that will mark a American Towers
and Ireland).
Telecom. new era for
1989 - 2000 2015 Telefónica.
Enters in Mexico: Acquisition of
1990 Bajacel, Movitel, Norcel & Cedetel. 2010 Disposal of
Telecom
Acquisition of
DTS (Canal +) 2020
Enters in Acquisition of controlling Italia stake. in Spain and Liberty Global and
Chile (CTC) and stake in Vivo. GVT in Brazil. Telefónica to merge
Argentina (TASA). 2000 their U.K.
Gains full control in 2012 operations creating
Argentina, Chile, Telefónica 2015 the leading fixed-
Deutschland´s A company of mobile provider in
Peru and Brazil.
IPO the country.
platforms.
1998 2014 2018
Telefónica wins the
2005 Disposal of Telefónica Sale of Telxius stake
to Pontegadea.
2020
tender for Telesp (Brazil). Czech Republic and Creation of JV
Acquisition of Cesky
Ireland.
2003
Telecom. 2016 with Allianz for
1994 2013 Creation of Telxius and sale of fibre rollout in
Telefónica enters
JV with Portugal Telecom in
Brazil: Vivo. Disposal of Telefónica stakes in minority stake to KKR (closing 2017). 2020 Germany
in Peru (TdP). Central America (four countries). Telefónica Brasil
2004 launches, together
2021
1987 Acquisition of Bellsouth‘s
2017
with TIM and Claro, a
bid to acquire Oi's Creation of
LatAm assets. FiBrasil
Listing on New York Telefónica increases stake in Telefónica mobile business for
Stock Exchange. Deutschland to 69.2% via swap 16.5 bn Brazilian
agreement with KPN. reais.
Telefónica at a glance
Telefónica operates in 14 countries* Accesses
by market
Germany
We offer our services in over 170 countries via 48.8m
strategic partner agreements
UK
Telefónica owns the largest fiber network in 36.54m
Europe and Latin America and leads the
deployment of this technology in both regions Spain
41.3m
2%
Brazil
18% 29% Hispam 95.2m
Revenues 108.5m
16% 2020 17% Included: Argentina, Chile, Colombia,
Ecuador, Mexico, Peru, Uruguay and
17% Venezuela.
Spain Germany Brazil UK
Group
345.4m accesses 2020
Hispam Other €43,076m Revenues 2020
* This figure includes operations in Costa Rica and El Salvador. 79% Revenues from
key markets 93% OIBDA from
key markets
4 key markets: Spain, Brazil, Germany and United Kingdom
A leader in telecom infrastructures
#1 in fibre in Europe and
Latin America #1 in network virtualisation
“Única” deployed in 10 countries #1 shutting down
legacy
1.6m km of fibre
135 premises
passed
UBB footprint, 62 million
79%
though own network (2020)
5G
Deployed in UK,
Germany, Brazil
and Spain
4G 99%
Coverage in Europe (77% Lat Am,
Of processes
digitalised
(2020)
2020)
The most
digital telco
(2018-2020) accumulated savings
from digital transformation €750 million as of 2020
Telefónica’s strategy: a sustainable business model
Based on three pillars
Efficiency Growth Trust
Efficiency Growth Trust
SHAREHOLDERS
Leading ESG (Environmental,
Efficient use of scarce resources and Revenues and OIBDA growth for
Sostenibility, Governance) in our
higher returns seven years in a row
industry
Inclusive network deployment and
SOCIETY
90% renewable energy Privacy, security and transparency at
positive environmental impact
(100% in Europe and Brazil) the top of our priorities
services
CUSTOMERS
Customer Experience: radically 67% of revenues from broadband
Higher customer satisfaction
simpler and fully digital connectivity and digital services
(2020)
Making our world more human
by connecting lives
… to deliver long-term stakeholder value responsibly
Leading ESG in our industry
112,349
€44,692
1st
global telco
Our global contribution to Direct employees worldwide
Ranking Digital Rights.
GDP in 2020.
million
2nd global TIC company 38% 11.110
% Women under 35 years-old
Members of Carbon Disclosure
Project (CDP) / List A
Additional amount generated
indirectly (via spending and
4rd year in a row
1st ever green bond issued in
1.26€
•
investments) for every 1€ the sector (Jan'19) Bloomberg Gender-Equality
generated in 9 of the most Index
important countries where we • 1st ever green hybrid bond
operate. issued in the industry (Jan’20)
• 1st ever sustainable hybrid
bond in the sector (Feb’21) Committed to society and education
Total Tax contribution Voluntarios
Telefónica
€5,861m
2020
13,6%
for every €100
19.7 More than Approx.
7,400,000
€8,160 m 18,9 €
Are paid in million 56,000
CapEx/Revenues, registered volunteers
CapEx in 2020 taxes children
students
(ex – spectrum)
*Telefónica has invested €1,501 million in spectrum in 2019
TEF is building a company for the future
The New Telefónica:
5 point-plan to capture growth
4 key markets: Spain, Brazil, Germany
Cutting-Edge Telefónica Telefónica 1 and United Kingdom
Operators Tech Infra
Gradual exposure reduction to
2 Hispam
New operating model 3 Launch of Telefónica Tech
Telefónica Infra, value enhancement and
4 monetisation of infrastructure assets
Telefónica Operating model simplification and
HispAm 5 increased digitisation
Key markets,
With the best technological platforms and advanced digital services
Record NPS in all markets - Praised as the best mobile network in all 4 markets and the best fibre
network in Europe and LatAm.The best offer of digital services Supported by a pioneer model based
for customers and businesses… on AI and data
Total Digital Services Revenues By segment (B2C+B2B) 40 products based on AI and Big Data deployed
Bn€ (y-o-y organic growth) over normalised data capabilities
50 45.4%
Movistar Home Living apps
FY 19 +17.1% 26.5%
25
€7.7bn y-o-y 18%
6%
0
1H20: 3.6 bn €, +2.8% y-o-y Video Cloud Security loT
(Dec’2019)
T. Infra: Maximizing our infrastructures AURA
Virtual Assistant with AI.
m € FY2019 T. Tech: Leading
>20,000 Business services
Towers
842
€2.2bn
21% NPS
(June 20)
> Alliances with the best Customer
504
satisfaction
players in the Tech
+6.4%
+26%
ecosystem (Amazon,
Google, Microsoft, SAP,...)
+8.0% y-o-y organic
(Net Promoter Score) 2019
Ex-IFRS16
Up from 20% in 2018
> Wide recognition from
industry analysts
Revenues OIBDA
1H20: 756 m€ (+18% y-o-y)
1H20: 415 m€ (+7%) / 268m€ (+12.6%)*
*yoy change excludes exceptional capacity sale in the same period of 2019Telefónica Tech,
leader in cutting-edge digital services
Tech companies incorporated
and 100% operatives Double-digit revenue growth, almost three
times the market
Cyber | Cloud | IoT/Big Data
€1,504 M*
Commercial strenght,
new products, new geographies 14%
21%
New solutions 13%
Acquisitions to 5%
1%
Cloud Security IoT &
T Tech Market
> Agreements with 3rd
2,2 Big
technological parties
Mil Mn€ Clientes más Data
partners satisfechos
* T. Tech will define its revenue perimeter once the carve out has been finalised and the transfer of assets has been completed.
% y-o-y organic variation / Market growth source: Gartner
Essential services to transform businesses and economiesAn Open Innovation Model
Based on excellent network connectivity, it combines in-house and third parties’ innovation capabilities
€959m
Core Innovation Connected Open Innovation
R&D Investment1 To identify future business opportunities To promote the entrepreneurial ecosystem
TOP 50
OPEN FUTURE
We apply innovation to our assets,
platforms and services, such as
EU companies connectivity, Data or video platforms, to
R&D Investment2 increase Telefónica´s competitiveness
+800 +130 8
Startups in Startups working Wayra Hubs
portfolio / active with Telefónica in Europe and LatAm
We use Lean Startup method to innovate
>€185 M €2,100M
477
with agility: it accelerates the design and
innovation process, makes it more Invested Third-Party investment
efficient while keeping it client focused
Technological Industrial
Property Righs assets throughout.
1 Data 2020
2 Industrial R&D Investment Scoreboard 2020 Data 2020Telefónica Infra
Maximizing value and growth of our unique infrastructures
TOWERS SUBMARINE FIBRE DATA
CABLE CENTERS
Telxius, a success story Alternative models to
Optionality accelerate deployments
Optionality
Revenues and OibdAL
Marea Fibre in rural areas
Brusa >2 Mn homes in 6 years
Sale to ATC Pacífico
at record multIples SAm-1
Otros 3.5 Mn homes in 2022
>90.000 >5.5 Mn homes in 4 years
kms of cable
Optionality
Optionality in other markets
in UK
142020 Highlights
Robust financials
Data for the first half of 2020 are partially impacted by COVID-19 , which has particularly affected the second quarter of this year.
REVENUES NET PROFIT
Year-on-year organic change Year-on-year reported change
-3.3%
+38.5%
2020 €43,076m 2020
€1,582m
OIBDA OIBDA-CAPEX
Year-on-year organic change
Year-on-year organic change, ex-spectrum
-5.7% -0.9%
2020
€13,498m 2020 €7,763m
Organic criteria: Assumes constant exchange rates of 2019 (average in 2019). Considers constant perimeter of consolidation, does not include capital gains/losses from the sale of companies and assets
sales (material), restructuring costs and other impacts (write-offs, material non-recurring impacts). In addition, excludes contribution to growth from T. Argentina and T. Venezuela and the results from
Central America. CapEx excludes investments in spectrum.Sustained and
Revenues (%)
sustainable growth
path 2.6 3.5
1.3
3.4 2.4 3.2
-2.0
OIBDA (%)
4.7 5.3
3.2 3.5 1.9
0.2
-2.8
Free Cash Flow (FCF) € bn
5.9
4.4 4.9 4.9 4.7
3.8 3.5
2014 2015 2016 2017 2018 2019 2020
Organic criteria: Assumes constant exchange rates of 2019 (average in 2019). Considers constant perimeter of consolidation, does not include capital gains/losses from the sale of companies and assets
sales (material), restructuring costs and other impacts (write-offs, material non-recurring impacts). In addition, excludes contribution to growth from T. Argentina and T. Venezuela and the results from
Central America. CapEx excludes investments in spectrum.Strong FCF generation, with ample Net Debt Reduction driven by strong FCF generation
dividend cover that allows to reduce
net debt organically Approx.
€17 bn
€4.8 bn
euros
Net debt reduction since
June 2016
€2bn in 4Q
52.2
+13.2% year-on-year change 48.6
44.2 41.1
37.7 35.2
Strong FCF generation and
ample dividend cover
June-16 Dec-16 Dec-17 Dec_18 Dec-19 Dec-20
€0.52
Interest
Average debt payment costs
€0.40 Over 2/3 life of
debt in
fixed rates
10.7 3.11%
years
Underlying EPS Dividend
2020 per share
The dividend announced for 2021 amount to 0.30 euros/share and will adopt the voluntary scrip dividend modality. First tranche (0.15 euros/share)
will be paid in December 2021, and second (0,15 euros/share) in June 2022.Spain: Europe’s most advanced telco
Annual REVENUES
Results -3.5%
2020 €12,401m -5.1%
#1 Europe’s largest FTTH network
HIGHER VALUE
Revenues OIBDA ACCESSES
OIBDA
Premises passed:Telefónica UK: The UK’s No1 network for customers
Annual REVENUES
Results -4.4%
2020 €6,708 m -2.4% 36.5 m #1
Mobile Accesses
OIBDA in customer
€2,064 m Revenues OIBDA
loyalty
MARGIN
30.8%
OIBDA - CAPEX
€1,151 m #1 in flexibility and
transparency
The lowest
contract churn in
Flexible the market
+2.7%
Custom 0.9%
2020 2020
Plans
Pionner offer in
the telco
industry The O2:
Best Sponsorship in the
last 25 years.
5G Already available
in
Best Sponsorship Awards
150
cities
#1 Best network coverage*
#1 Best network for reliability*
#1 Best customer experience*
Best network coverage by Uswitch (2018,2019,2020)
The Uk’s most reliable network by Global Wireless Solutions (Feb 2020)
Number 1MNO fot NPS and satisfaction by Ofcom
y-o-y variations in organic termsGermany: The most modern network serving the largest mobile customer base
+1.1%
Annual REVENUES
Results
2020 €7,532 m +0.1%
Mobile Accesses
OIBDA Revenues OIBDA Customer Focus: 44.3 m
€2,326 m
Innovative tariffs: O2
Free, O2 My All in One &
OIBDA - CAPEX O2 DSL, O2 Banking, O2 Employees
€1,214 m
TV, O2 You …
~ 8,200
MARGIN
30.7%
2020
-3.6%
2020
5G Full Operator
The best fixed
30 cities with 5G by
the end of 2021 broadband coverage
Focus in Customer Experience and Digital Transformation in Germany via
Digital4Growth Programme (2019-2022): agreements with DT,
Vodafone and Tele
Columbus.
Deploying the
1st 5G network in the world
for production
vehicles with “Very good" rating in 2021
Mercedes-Benz. Best MNO in Telekom Handel´s
Connect Magazine Fixed Network
reader’s choice awards
SIMPLER FASTER BETTER Test
Year-on-year change in organic terms.Telefónica Brazil: Unmatched quality assets. Leader in high value accesses
Annual REVENUES
€7,422 m
Results
+8.5%
2020 Most recognized and valued brand
-2.6% -1.1%
Total Accesses
OIBDA
95.1 m #1 Sustained Leadership in Mobile
Contract (37.7% of market share)
€3,188 m Revenues OIBDA
% y-o-y organic change
OIBDA -
CAPEX
Mobile Accesses ‣ 5 million UBB accesses (FTTx/Cable).
OIBDA - CAPEX 3.4 FTTH million accesses (+36.39% y-o-y).
€1,815 m
OIBDA Margin 2020
42.9% 78.5 m
Margin
Sustained annual investment Mobile Network:
(CapEx, ex - spectrum)
Accelerating to capture
opportunity in fibre
New fibre expansion
models: Third parties
#1 The largest fibre
deployment in LATAM
Coverage and capacity
agreements and franchises.
Premises passed (FTTx) #1 Biggest mobile coverage 3G/4G
24.5 m
100 new cities in 2020 with FTTH
Wholesale FiberCo
+102 266 Independent & Neutral (March
164 FTTH Home Passed
‣ 5G DSS launch in eight cities in 2020.
2021)
15.7 m ‣ Largest Distribution channel: 1,600 shops
2019 2020
y-o-y variations in organic termsTelefónica in Hispam: Maximizing the value of assets
Annual
Results
2020
REVENUES
€7,922 m Argentina,
Chile,
Colombia,
Mexico,
Ecuador,
Peru,
OIBDA
€990 m Uruguay and
Venezuela.
OIBDA Margin
OIBDA – CAPEX
€157 m Margin
12.5%
Operating Data Datos operativos
New operating model: México
2020 12 m UBB premises passed*
Simplification :
Total Accesses 108.5
5,4 m UBB accesses - Largest Fiber network in the region (9.9m FTTH
Solid growth in: homes passed)
92.2 m mobile UBB (+13.7%) - Fiber expansion strategy: co-investment
108.5 m
agreements**
accesses 22 InfraCo in Chile and PangeCo in Perú.
FTTH (+20.8%)
7.8 5.4 2.8
~24 % mobile contract
Millionaccesses
- Digitalisation process is still on-going. Achieving CapEx
efficiencies
(*) Including Peruvian cable.
(**) In some coutries such as Chile, Argentina, and Colombia with American Tower Company and Andean Tower Partners.Telefónica milestones in the last months
(2020-2021)
30_07 02_03
7_05 28_07 Telefónica
14_12
presents its Telefónica Brasil and Creation of
Liberty Global Telefónica Brazil FiBrasil,
proposal for a its partners win the
and Telefónica launches, together Digital Deal, wholesale
with TIM and Claro, bid for Oi mobile
to merge their which aims to be and neutral
assets
U.K. operations. an offer to acquire
Oi's mobile assets,
the roadmap for
the digitalisation
13_01 fibre provider
worth 16.5 billion of SMEs, the self- Sale of Telxius
employed and tower business to
Brazilian reais.
public American Towers
authorities.
2020 2021
8_06 23_12
Telxius doubles in size Telefónica accelerates the value of its
after reaching a tower 1_09
7_02 infrastructures with the sale of 2,029
Sale of 1,900 towers
purchase agreement Telefónica towers in Ecuador and Colombia. 22_02
with Telefonica switches on 5G FibraCo
in Brazil to Telxius. Deutschland. and 75% of the Chile: - sale
30_07 Spanish
population will
of 60% to
KKR
Telefónica sells its obtain a signal 29_10
27_11 unit in Costa Rica this year. JV with Allianz to
to Liberty Latin deploy fibre in
5 key point-plan that
America for 425 Germany
will mark the new era
million euros.
of the company.the most admired
telco in Europe
and 4 in the world
th
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