Poland`s leading telco

Poland’s leading telco
February 2015
Disclaimer
Some of the information included in this material contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors.
For a more detailed description of these risks and factors, please see Netia's most recent financial report and press release. Netia undertakes no obligation to publicly update or
revise any forward-looking statements.
investor.netia.pl
2
Strategy 2020: Vision and Mission
Finished solutions
responsibility
anytime, anywhere
personalized
Netia, us
We deliver the
world on-line
Delivery of services
digital,
all services,
convergence
power, choice,
connectivity,
communication
Netia Group, after profitable transformation, will be the preferred choice for on-line services thanks to:
•
Delivering business customers integrated tele informatics solutions based on data transmission
and data centers
•
Offering residential customers bundled services based on multimedia platforms in own
network
•
Infrastructure and network assets dedicated to business and residential market segments
•
Passionate employees, inspired by the Company’s values
• Strategy 2020 was originally announced in January 2011 and later on updated in November 2014
investor.netia.pl
3
Strategy 2020: Key strategic directions
in the B2B and B2C segments
B2B
• Long term growth by changing product portfolio structure
– Reduction of exposure to voice services
– Dynamic development in ICT segments – data center,
•
•
cloud, possibility of selective acquisitions of
competences / infrastructure
– Partnership in convergent services area
– Use of the wholesale market potential
Reorganisation of the operational model in terms of sales
forces and processes
Looking for the optimal cost models
B2C
• Focus on defending the value, ie.
– Intensive retention activities for existing customer base
– Customer service cost optimization
– SAC optimization (sales channels mix)
• In mid term maximization of the own network value
without additional network upgrades
– Increase of the penetration of 2P/3P packages with TV
and mobile services used for retention purposes (the
target of 2.0x services per customer)
– Geo-approach used to increase penetration of own
network services
– Looking for the optimal cost models
Infrastructure
• Network split B2B/B2C – B2C access infrastructure separation and SLA based co-operation with B2B networks
• Network simplification and modernization to reduce maintenance costs
• IT systems optimization as a support of the vital commercial processes
Organisation
• Development of an effective organization in a new operational model (split to B2C, B2B and infrastructure) and in a new
competence model (B2B – new products and solutions)
investor.netia.pl
4
Investment proposition
Poland’s leading telco
consolidating
the market
• 2014 Revenues at ~ PLN 1.7 bn, Adjusted EBITDA at 30% margin and Adjusted FCF at 17%
• Financial leverage at 0.19x 2014 Adjusted EBITDA1
• Announced distribution policy targeting the pay out to shareholders of PLN 0.42 per
share (7.3% yield)2 from 2014 onwards (PLN 0.42 dividend per share distributed in 2014,
PLN 0.35 per share distributed in form of a share buy-back tender offer in 2013)
Strategic focus on
multi-play services
• Delivering services through 2 commercial divisions for B2B and B2C, supported by
dedicated network assets (separation process is on-going), with single IT systems and
back office units
• 2.3m services in Poland, of which 1,331k fixed voice and 790k fixed broadband at the end
of Q4 2014
• 11.5% market share in fixed broadband and 17.4% market share in fixed voice
• 137k TV services, 46k mobile broadband and mobile voice services combined
Leveraging own network
scale and regulatory
opportunities
• Almost 3m homes passed (~ 21% of Polish households) by own access network with a
further 11m reached by via regulated access through the incumbent
• 8.4k km of fiber backbone and around 16k km of fiber metro rings underpin
all operations
• Synergetic network assets allowing to render services in both B2C and B2B
investor.netia.pl
1 Status as of Q4 2014
2 Versus a three-month average share price of PLN 5.74 on February 19, 2015 (inclusive of block transactions)
5
Netia’s broadband driven transformation
2006 YE
2014 YE
Change
RGUs Fixed voice
~398k
~1,331k
3.3x
RGUs Broadband
~60k
~790k
13.2x
Revenues
PLNm 862
PLNm 1674
+ 94%
Adjusted EBITDA
PLNm 221
PLNm 498
+ 125%
Adjusted EBITDA margin
25.7%
29.7%
+ 4.0 pp
Adjusted Operating FCF
PLNm 48
PLNm 277
6.5x
Brand Awareness
Netia as a provider of
fixed telco services
Netia as a provider of
Broadband 93%
TV 68%
From a business oriented fixed telco subscale altnet operator to become a major, revenue balanced on-line
gateway synergistically leveraging its assets, brand and country wide presence
inwestor.netia.pl
6
Major initiatives and projects in the past 6 years
Play (P4)
• Minority stake sold for EURm 132 in 2008 (66% profit and annualized IRR of 26%)
• Cash proceeds for Netia’s broadband expansion strategy
Non-core
• International Voice Termination to Mediatel, CATV to Vectra and real estate property disposals
Disposals
Acquisitions
Tele2
Polska
•
•
•
•
Acquired in 2008 for EURm 34 (EV/EBITDA of 1.5x with synergies, 2.8x standalone)
+ 502k voice WLR RGUs
+ PLNm 455 revenues, + PLNm 41 EBITDA standalone for 2008
Synergies of PLNm 45 delivered against original PLNm 30 target
Dialog
Crowley
•
•
•
•
•
+ 1,046k RGUs
+ PLNm 640 revenues
+ PLNm 156 EBITDA standalone for 2011
+ PLNm 130 FCF annual synergies by 2014 (including PLNm 120 EBITDA synergies)
Increase in own network footprint, high multi-play and cross-sell potential
ETTH
• + 139k ETTH RGUs acquired since 2007
• High-end technology, easy upgrade to NGA
• A complete Cable TV network covering 446k HPs acquired from UPC Polska in May 2013
• Inclusive of recent CATV acquisitions, Netia expanded its NGA coverage by over 400k to
approximately1.7m homes passed
• PLNm 140 of gross expense annual savings1, +3.5 p.p. EBITDA yoy2 (project ‚Profit’ executed in 2008-2009)
• PLNm 50 of gross expense annual savings (project ‚Netia Lite in i2014-2015)
• More agile organization, downsizing unnecessary resources
Cable
networks
Cost reduction
Klientomania
Company
culture
inwestor.netia.pl
• Improvements along entire value chain driving NPS3
• Huge cultural transformation from a rigid, engineer-driven approach to entrepreneurial-minded teamwork
1 From 2010 onwards
2 Average annual improvement in EBITDA margin in the period 2009-2010
3 Net Promotors’ Score
7
Customer base and market shares
Revenues, EBITDA and OpFCF development
Fixed broadband market share (quarterly)
CAGR 2007 – 2014: Revenues +10%
CAGR 2007 – 2014: Adj. EBITDA+16%
PLN m
Adoption of
broadband-driven strategy
2.500
7.000
2.121
1.876
2.000
1.569
1.506
1.500
5.000
838
500
50%
40%
30%
3.000
171
-74
171
-77
304
57
408
164
359
160
591
334
551
311
493
272
2007
2008
20%
2.000
1.000
5% 6%
3% 3% 4% 5%
0
0
2009
2010
2011
2012
2013
Revenues
2014
OpFCF1
Adjusted EBITDA
10%
14%14%14%13%13%13%
14%
13%13%12%12%12%11%
11%12%12%12%
10%11%11%11%
9%
8%
9%
8%
7%
0%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14
-500
Total market broadband subscribers
Subscriber base
(‘000)
48%49%49%49%
45% 46%46% 46%47%47%47%48%48%
44%44%45%
4.000
1.121
1.000
43%
42%42%
40%41%
38%38%39%
37%
35%
34%35%
32%
29%30%
28%
6.000
1.674
1.619
CAGR Q1 2007 – Q4 2014: Netia +7%
CAGR Q1 2007 – Q4 2014: Total market+2%
(k)
8.000
Netia's market share
Penetration of households
Fixed voice market share (quarterly)
CAGR 2007 – 2014: Broadband subs +20%
CAGR 2007 – 2014: Voice subs +18%
Dialog & Crowley
acquisitions
CAGR Q1 2007 – Q4 2014: Netia +4%
CAGR Q1 2007 – Q4 2014: Total market-1%
(k)
Tele2 Polska
acquisition
2.000
1.745
12.000
1.645
1.489
1.500
1.066
8.000
912
1.000
422
218
875
849
414
120
68
7991
137
46
Broadband services
investor.netia.pl
60%
50%
40%
2009
2010
Fixed voice services
2011
2012
2013
TV services
2014
Mobile services
30%
20%
2.000
0
0
2008
70%
4.000
82
51
2007
80%
6.000
790
690
559
500
1.331
1.219
1.158
10.000
90%
79%78%77%76%77%76%76%
76%75%74%
73%72%71%
69%68%
66%65%65%
64%63%62%
61%60%59%
59%58%57%57%
56%56%55%55%
20%20%20%20%20%19%19%19%19%18%18%18%17%
Total market fixed voice
Netia's market share
Note: For discussion purposes only, more detailed information for reference can be found in Netia Group’s quarterly and annual financial statements and press releases
1 Adjusted OpFCF excluding one-off New Netia integration capex
10%
10%10%11%11% 11%12%12%12% 13%13%13% 13%13%
4% 4% 4% 4% 4% 5%
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14
0%
Penetration of households
Source: Company
8
Financial performance and network assets
Dynamically growing business
Netia’s backbone and access network assets country-wide
1
PLN m
Revenue
Growth (yoy%)
Adjusted EBITDA
Margin (%)
EBITDA
Margin (%)
Adjusted Capex3
Adjusted OpFCF
Acquisition outlays
Total capex
Disposal proceeds
Net Cash / (Debt) at YE
2007A 2008A 2009A 2010A 2011A 1 2012A 2
838
-2,8%
171
20,4%
171
20,4%
244
(73)
37
281
na
(37)
1.121
33,8%
171
15,3%
171
15,3%
248
(77)
178
426
460
193
1.506
34,3%
304
20,2%
313
20,8%
246
58
15,7
262
46
240
1.569
4,2%
359
22,9%
586
37,3%
200
159
14,8
215
24
345
1.619
3,2%
408
25,2%
611
37,7%
244
164
978
1.222
9
(539)
2.121
31,0%
591
27,9%
461
21,7%
257
334
9
279
2
(408)
2013A
2014A
1.876
-11,6%
551
29,4%
533
28,4%
240
311
7
280
1
(291)
1.674
-10,8%
493
29,5%
581
34,7%
221
272
nd
232
nd
(93)
Netia’s own FO
Netia’s leased FO
Asset backed with modest leverage
PLN m
Total assets
Liabilities
Shareholders funds
Net cash / (debt)
Undrawn loan facilities
investor.netia.pl
2007A 2008A 2009A 2010A 2011A1 2012A2
2.071 2.283 2.341 2.568
3.553
3.233
343
355
316
271
1.053
937
1.728 1.928 2.025 2.297
2.500
2.296
(37)
193
240
345
(539)
(408)
208
375
295
81
2013A
2.938
733
2.205
(291)
250
2014A
2.891
648
2.242
(93)
-
Note: For discussion purposes only, more detailed information for reference can be found in Netia Group’s quarterly and annual financial statements and press releases
1 Including 2 weeks of Dialog’s and Crowley’s consolidation in December 2011
2 Including full year of Dialog's and Crowley's consolidation
3 Excluding M&A and integration capex
Source: Company
9
Netia is present in both Business and Residential market segments
B2B1
PLNm
300
80%
•
70%
250
60%
200
42.2%
150
42.0%
42.3%
40.9%
100
50
179
28.6%
24.7%
172
175
50%
40%
29.0%
20.5%
41.4%
24.3%
Revenues
Q2 2014
Q3 2014
Adjusted EBITDA margin %
•
Top line stabilizing for the third quarter in a row
Adjusted EBITDA was PLN 72m with a margin of 41.4% in Q4
2014
•
Capital expenditure at PLN 30m in Q4 2014 resulted in
Adjusted OpFCF at the level of PLN 42m
•
Revenue was PLN 224m in Q4 2014, down by 4% compared to
Q3 2014 and down by 15% y-o-y
0%
Q1 2014
RGUs at 494k (+0% q-o-q, +3% y-o-y)
•
30%
10%
0
Q4 2013
•
20%
173
172
Revenue was PLN 173m in Q4 2014 (+1% q-o-q and -3% y-o-y)
Q4 2014
FCF %
B2C2
PLNm
300
40%
35%
30%
250
26.2%
200
150
24.3%
21.8%
19.2%
18.9%
15.8%
15.4%
100
10.1%
4.0%
50
264
254
244
6.2%
224
234
0
25%
20%
15%
10%
5%
Q1 2014
Revenues
Q2 2014
Q3 2014
Adjusted EBITDA margin %
Other (unallocated expenses and Petrotel)
PLNm
30
7%
5.7%
6%
25
5%
20
4%
15
10
5
2.0%
2.6%
26
2.5%
11
11
11
6
1.9%
1.6%
1.3%
9
2.7%
7
1.7%
1.0%
4
8
7
3%
2%
1%
0%
0
Q4 2013
Opex
Q1 2014
Capex
Q2 2014
Q3 2014
Opex as % of Revenue
Q4 2014
•
Decline in RGUs still concentrated in the area of
regulated access (WLR, BSA, LLU)
Adjusted EBITDA was PLN 43m with a margin of 19.2% in Q4
2014
•
Capital expenditure at PLN 29m in Q4 2014 resulted in
Adjusted OpFCF at the level of PLN 14m
Q4 2014
FCF %
RGUs at1,766k (-3% q-o-q, -12% y-o-y)
•
0%
Q4 2013
•
• Net of Petrotel EBITDA, unallocated costs of support
functions
• Unallocated capex in Q4 2014 mainly related to Petrotel
and CDN integration capex
• As part of the N2 Project most of Other expenses and
Other capex were allocated to either B2B or B2C
(comparatives restated)
Capex as % of Revenue
comprises Business and Carrier customers sub-segments
investor.netia.pl 12 B2B
B2C comprises Residential and SOHO customers sub-segments
10
Network coverage and sales potential in B2B and B2C addressed
with versatile product offering
Office buildings connected by Netia in 10 largest Polish cities1
NGA and TV potential coverage for Netia
With ongoing upgrades12
December 31, 2014
On-net fiber
optic
('000 homes passed)
28%
36%
Cu
ETTH
PON
On-net other
technology
Off-net
(subject to
lease)
36%
Homes passed
(HP)
1,682
662
176
NGA HP
TV ready HP
NGA HP
TV ready HP
897
253
176
1,138
416
176
897
253
176
1,138
416
176
1,730
1,326
1,730
400
400
Total
CATV
Total
Proforma
% of Total on-net HP
LLU
2,520
1,326
446
380
2,966
1,706
2,110
1,726
2,130
4,930
58%
-
71%
2,163
58%
-
72%
2,163
Total
7,896
1,706
4,273
1,726
4,293
380
Note: TV Ready HPs based on ADSL+, LLU and ETTH (with bandwidth +14 Mb/s) come on top of NGA HPs thus
producing the total TV (3play) potential for New Netia’s addressable market (homes passed)
Note: For illustrative purposes only
Acknowledged companies choose Netia as their business partner
Multifunctional TV approach fully in line with Netia’s strategy
Telewizja Polska
Raiffeisen Polbank
Ghelamco Poland
General Directorate
for Environmental
Protection
investor.netia.pl
1 Out of ~800 business locations analysed
1 Adaptation of ex-Aster CATV infrastructure
11
B2C segment in a nutshell
RGUs by access type
Products and offering
• Customers served over own network (copper and Ethernet) and
regulated access (LLU, BSA, WLR)
(’000)
2,500
37%
42%
41%
40%
38%
40%
35%
2,000
2,014
1,959
1,897
30%
1,833
1,776
1,500
25%
20%
1,000
15%
10%
500
751
750
752
744
5%
745
0
0%
Q4 13
Q1 14
Total B2C RGUs
Q2 14
Q3 14
Own Network RGUs
Q4 14
Own Network (%)
Customer Locations and RGUs
• Focus on bundles: 3play services (BB+V+TV) for Residential and 2play
(BB+V) for SOHO
• Fixed broadband offered on the ‚best effort’ basis (highest feasible
transfer speed) and mobile broadband with 2/4 GB download limit
• Netia Spot – an innovative Wi-Fi home router solution with free
access to Fon Spots, a global WiFi network
• Netia Player – a multimedia STB (incl. an IPTV/DTT decoder
functions) with content, widgets and multimedia sharing
• Personal TV including HBO GO content (over-the-top solution)
• E-store and variety of value-added solutions (incl. virtual disc,
antivirus, fax-server, email and other functionalities)
• Unified communications solutions, cloud and P2P solutions for SOHO
Average ARPU per Customer Location
(’000)
2,500
PLN
1.40x
1.40x
1.41x
1.42x
60
1.43x
1.40
2,000
1.20
2,014
1,959
1,897
1,833
1,776
1,500
55
1.00
50
0.80
45
0.60
1,000
40
1,442
1,395
1,344
1,291
500
1,245
0.40
0.20
-
0.00
Q4 2013
Q1 2014
Q2 2014
Customer locations
RGUs
investor.netia.pl
Q3 2014
Q4 2014
35
30
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
RGUs per customer location
Source: Company
12
B2B segment in a nutshell
RGUs by access type
Products and offering
(’000)
600
81%
81%
80%
80%
90%
82%
80%
500
400
70%
494
494
492
484
478
60%
300
401
399
389
380
• Customers served primarily over Netia’s own network (capex driven
end-to-end connection to the client’s premises)
404
50%
40%
200
30%
100
• Offered services dedicated to all main industrial sectors, including
finance & banking, public administration, real estate, FMCG, transport
& logistics, construction, power supply, contact centres and media
• Data transmission (IP VPN, MPLS, MetroEthernet)
• Voice (ISDN/POTS, SIP Trunk)
• Co-location services and intelligent network services
• ICT related solutions (integrated platforms such as NGA, NVA)
• NGN (IntegralNet – virtual PABX)
20%
10%
0
Q4 13
Q1 14
Q2 14
Total B2B RGUs
Q3 14
Own Network RGUs
•
Opportunistic wholesale deals leveraging Netia’s own backbone
network and metro fibre rings in major Polish cities
•
Dedicated services for Internet Service Providers
Q4 14
Own Network (%)
Customer Locations and RGUs1
Revenue by service
(’000)
(’000)
600
6.7x
6.5x
6.7x
6.9x
7.0
200
179
175
172
172
173
42
41
41
42
46
60
58
55
54
52
40
39
39
39
38
37
37
37
37
37
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
180
500
6.0
494
492
484
494
160
140
400
5.0
300
4.0
200
3.0
120
100
80
100
2.0
75
73
73
1.0
Q1 2014
Q2 2014
Customer locations
Q3 2014
RGUs
40
20
72
0
60
0
Q4 2014
RGUs per customer location
1 Analyses B2B broadband and voice revenues. B2B Other Data network revenues and Other Services revenues excluded
investor.netia.pl Source: Company
Broadband
Other Data
Voice
Other services
Source: Company
13
B2B strength balances recent pressure on low-end part
of the B2C segment
Revenue breakdown in 20141,2
Adjusted EBITDA breakdown in 20141,2
B2B 42,0%
B2C 43,3%
B2B 56,7%
B2C 58,0%
- 24.0% on-net
- 34.0% off-net
Comments
Adjusted OpFCF breakdown in 20141,2
B2C 37,0%
B2B 63,0%
investor.netia.pl
Note: For illustrative purposes only
1 Excluding non-allocated Opex of PLN 12.0m and non-allocated Capex of PLN 23.5m in FY2014
•
B2B segment (business customers and carriers)
contributing 42.0% of revenue, but 56.7% of
Adjusted EBITDA and 63.0% of Adjusted OpFCF
•
B2B segment margins supported by higher onnetwork share of RGUs and higher Capex
intensity than the B2C Segment (Residential and
SoHo customers)
•
Residential on-net EBITDA and OpFCF share
much higher than revenue share due to lack of
regulatory access payments
14
2 Excluding Petrotel
Netia leverages own network and regulatory access
opportunites to maximise growth potential in all segments
Own networks
Regulatory access
LLU model offers excellent opportunities
Strong assets base
•
•
•
•
•
•
•
•
•
Backbone fiber network of approximately 10,980km
• Own backbone network of approximately 3,580km
• Leased backbone network of approximately 7,400km
Metro fiber network of approximately 16k km (incl. 13,500 km of own network),
Metropolitan fiber infrastructure in 48 biggest cities of Poland
Over 140 C/DWDM sites in all major cities
SDH network based mainly on Alcatel (Huawei and Lucent also used)
(2,000+ SDH sites with STM -16 and STM -64)
Two independent networks (Ethernet and IP) carrying all packet traffic
• Carrier Ethernet and Metro Ethernet for L2 services
• IP core network for other services
6 VoIP switches, 28 PSTN switches
Access network based on variety of solutions (FTTH, FTTB, ETTH, FITL, VDSL, ADSL)
5 Collocation Centers (Tier III class)
International point of interconnect in Cieszyn (route to Prague and Frankfurt)
2006 pre regulatory access
Households(14.2m)
TP
Netia
•• NETIA
controls
delivered
over
speeds,
Value
Netia bills
2playservices
revenues
for voice
andDSLAM
4Mb/s(i.e.,
Internet
service
atAdded
~ 61 PLN1
likeTP
IPTV,
VOD,monthly
PVR ) line rental fee
• Services
Netia pays
22 PLN
•• At
the margin
end of Q3
2011 Netia served 175k LLU clients (an average of 260 clients
Gross
64%
node)has to invest in its own DSLAM (~200K PLN / node)
• /Netia
• NETIA controls services delivered over DSLAM
LLU roll-out
Speeds 5.0m TP lines with 700 DSLAM in 2008-2011
• Target•to unbundle
• Value Added Services like IPTV, VOD, PVR
Regulated BSA/WLR access strategy
••
••
•
••
••
•
•
1 selling
Single
playVoice
customers
represent
base
forPLN
cross
TP offers
& 2 Mb/s
Internetafor
~76
1
Migration
of
1play
(BSA)
customers
to
higher
margin
LLU services (shared LLU)
Netia bills voice and Internet for ~ 72 PLN
began
in Q2to2009
Netia pays
TP ~26 PLN for Internet and 20 PLN for WLR
Migration
of ~2play
customers to full LLU access from November 2009
TOTAL cost
46 PLN
100k
clients
migrated
Gross margin 36% in total by the end of Q3 2011
Netia does not invest in DSLAM
Netia can only resell services offered by TP i.e. bandwidths
Q4 2014 with regulatory access
SOHO/SME (1.2m)
Corpo (30k)
10.1m Voice + 1.7m Broadband
Households(14.2m)
SOHO/SME (1.2m)
Corpo (30k)
TP2 4.5m Voice + 2.2m Broadband
Netia 584k WLR, 234k BSA, 149k LLU
Other altnets 462k WLR, 46k BSA, 3k LLU
398k Voice + 60k Broadband
Netia 640k Voice + 407k Broadband
Other altnets 1.0m
Other altnets 0.7m
Netia addressable market today is:
• 7m active TP lines plus dormant lines
• 643k Netia own lines (2.4m homes passed)
investor.netia.pl
1 Based on a standard comparable 2play contract, for illustrative purposes only
2 TP lines in retail (excluding wholesale to altnets) Source: Company, TP, UKE, press releases
• WiMax national license
• Ethernet networks acquisitions
Source: Company
15
Network support for B2C and B2B Divisions
DWDM Core Network
Fiber Optic Backbone
Carrier and Metro Ethernet
Carrier Ethernet and Metro Ethernet for
L2 services
• 320+ Ethernet nodes with 10Gbps
uplink
• 120+ Ethernet nodes with 1Gbps uplink
• 1450+ (870+ ADSL and 580+ VDSL)
access nodes with 1Gbps uplink
Over 140 C/DWDM sites in all major
cities
• SDH network based mainly on Alcatel
(Huawei and Lucent is also used)
(2000+ SDH sites with STM -16 and
STM -64)
•
Synergetic approach
• Backbone fiber network of approximately 3,580
km+ 7.,400 km leased
• Own metro fiber networks of
approximately13,500 km
• Metropolitan fiber infrastructure in 48 biggest
cities of Poland
• Copper network of approximately 13k km
•
investor.netia.pl
•
Access network base on variety
solutions: FTTH, FTTB, ETTH, FITL, VDSL,
ADSL . Traffic is aggregated at the
BRAS routers. In Netia Networsk
Juniper and RedBack BRAS are used.
Source: Company
16
Our entrepreneurial culture to support Business Units
IT platforms
•
•
B2B
•
IT platforms are Client oriented
Organisation
•
The platforms are Product and
Service oriented
High usage auto configuration
mechanisms
•
Platforms are highly
configurable
•
Good support for short Timeto-Market indicator
•
Dedicated HR management
systems (SAP, Janus, Flow)
•
•
•
B2C
•
•
Staffing: standardized
recruitment (professional
methodology, Targeted
Selection, AC, tests), qualified
internal recruiters, induction
Performance management:
(MBO and effectiveness
assessments for all employees,
clear roles, job descriptions)
Training & Development: skills
assessment & development
plans for each employee.
Training policy
Compensation & Benefits:
defined compensation policy
based on market, job
evaluation, benefits
management, SOP
Good established relations with
unions
Netia repeatedly recognised as
one of Top Employers in
Poland
Company culture
•
•
•
Agility: people used to change
& open-minded
Constant focus on internal
communication, various media
and forms of communication,
vertical & horizontal
communication streams
Building company culture
based on values (workshops,
trainings, rules of behaviour)
•
Focus on engagement of
employees (employee surveys,
follow-up initiatives,
empowerment)
•
Directness: we direct to each
other by name
•
Open space arrangements
facilitate an efficient
information flow
Values
•
Trust
1.
We respect one another and our work;
we communicate openly and keep our
promises
We act in good faith and trust in the
good intentions of our employees
We share our knowledge and
experience; we care about our own
development and help others to
develop themselves
2.
3.
•
Audacity
1.
We do not rest on our laurels; the
success achieved motivates us to seek
new possibilities and reach for more
Our thought process is non-standard;
we are prepared to take risks; we are
open to new ideas and act with
courage to implement them
We are determined to reach goals and
never give up
2.
3.
•
Excellence
1.
We strive for excellence and set an
example
We delight our customers with the
simplicity and intuitiveness of solutions
We consider the committed mistakes as
an opportunity of self-improvement
and self-development
2.
3.
•
Pride
1.
We create our company and we are its
ambassadors
Our work makes us proud of our job
We celebrate shared success
appreciating contribution of each of us
2.
3.
investor.netia.pl
17
Netia shareholders and stock performance
Share price performance since launch of broadband driven
growth strategy (April 2007)
Shareholder structure1
Ex-dividend Day (PLN 0.42 per share)
Mennica Polska
15,9%
180%
160%
140%
Free float
35,5%
SISU Capital
12,7%
120%
100%
80%
40%
20%
ING OFE
9,6%
Netia
Shareholder
Mennica Polska
SISU Capital
FIP 11 FIZAN
ING OFE
Aviva OFE
PZU OFE
Navicorp Trust Polska
Free float
Total
investor.netia.pl
April-15
October-14
April-14
October-13
April-13
October-12
April-12
October-11
April-11
October-10
April-10
October-09
April-09
April-08
October-08
Last change in shareholder structure:: November 14, 2014
October-07
0%
April-07
Navicorp Trust
Polska
5,0% PZU OFE Aviva OFE
5,5%
5,8%
60%
FIP 11 FIZAN
10,0%
mWIG
Number of shares (m)
% Capital
% Votes
PLN m
EUR m
55,3
15,88%
15,88%
Enterprise value (as of February 23, 2015)
2.094,7
501,6
12,74%
10,02%
9,56%
5,82%
5,53%
5,00%
35,46%
100%
Market capitalisation (as of February 23, 2015)
2.001,5
479,3
Bank debt and accrued interest (as of Dec. 31, 2014)
300,5
72,0
Cash and short term deposits (as of Dec. 31, 2014)
207,3
49,6
Shares outstanding (m)
348,1
348,1
Share price (3m average price as of February 23, 2015)(PLN)
5,75
1,38
Daily volume average (k shares) (as of Feb. 23, 15 YTD incl. block trades)
203
203
4,1763
nm
44,3
34,9
33,3
20,2
19,3
17,4
123,4
348,1
12,74%
10,02%
9,56%
5,82%
5,53%
5,00%
35,46%
100%
PLN/EUR spot rate as of Feb. 24, 2015
1 The above number of shares and % of total capital/total votes reflects the status from notifications provided to Netia by shareholders based on art. 69 of the Public Offer, Terms of Introducing Financial Instruments into an
Organized System of Trade and Public Companies Act.
Source: Company
18
Management team
Management Board
Adam Sawicki
Chief Executive Officer
Paweł Szymański
Chief Financial Officer
Management Team
Tomasz Szopa
Cezary Chałupa
Managing Director - B2C Unit
Managing Director - B2B Unit
Jacek Wiśniewski
Anna Rajtar-Klepuszewska
Head of Technology & Operations
Acting Head of Human Resources
Adam Sawicki,, 43, joined Netia in June 2014. Prior to joining Netia he has
been pursuing independent advisory projects. In 2012 Mr. Sawicki was
appointed to the Management Board of KGHM Polska Miedź SA as Executive
Vice President, Corporate Affairs. In 2011 and 2012 he was President of the
Management Board and Chief Executive Officer of Ruch Internet. From2008 to
2011 he was Chief Executive Officer of GTS Central Europe, creating one
regional telecommunication operator from 5 independently operating entities
in Central and Eastern Europe. He started his professional career in 1996 in Telia Swedtel,
Stockholm. For 12 years he worked in a number of senior management positions in various
companies of the Telia Group (later TeliaSonera). During that time he participated in numerous
projects including, among others, strategic transformation of operators, both on the business
(B2B) and the residential (B2C) markets. He graduated in Business Administration and Economics
from Stockholm University. He also completed the General Manager Program from Harvard
Business School. On January 30, 2015 Adam Sawicki resigned from his position with effect from
July 31, 2015.
investor.netia.pl
Andrzej Kondracki
Head of Strategy, M&A, Investor Relations
& Corporate Development
Marcin Osiecki
Acting Head of Legal &
Corporate Security
Paweł Szymański, 42, joined Netia in September 2014. An experienced CEO
and CFO from the largest domestic and regional concerns. A professional with
wide experience in Finance, he combines managerial skills with sound
knowledge of global financial markets acquired when working for the largest
investments banks both in Warsaw and London. A graduate of Warsaw School
of Economics, from 1997 to 2003 he worked for Schroders and Citigroup in
London. In 2003 he was appointed CEO of Bank Handlowy’s brokerage arm.
From 2004 to 2007, he ran PKN Orlen's Finance Division. From 2007 to 2008, he
worked at CTL Logistics as Vice-President responsible for Finance. Between 2010 and 2013, he
was actively involved in the restructuring of RUCH, initially as Vice-President for Financial Affairs,
and from 2012 to 2013 as CEO. Prior to agreeing to join Netia Mr. Szymański was Vice-President
and CFO in Marvipol SA.
19
investor.netia.pl
20