20Q4
- Cost savings total EUR 278m; invested EUR 34m in working capital in 2020; book gain on sale of INS & Argeweb 29m; DTA (deferred tax asset) EUR 560m (no cash tax payment), lowers effective tax rate (with Innovation box from 25% corporate rate to theoretically 14%)
- FTTH roll-out in 97 areas, total announced & under construction HP 650k; currently 70% of new FTTH subs buy 100 Mb/s
- 5G-700 pops coverage 70%
- Corona virus impact on 2020
- adj rev 24-28m lower, indirect costs 10-15m lower, adj EBITDA AL 6-10m lower
- revenues: no roaming income, delayed IT projects, phasing in Professional Services, currently 30 shops of 110 are open
- costs: savings on travel, leased car fleet, potentially office space
- Maintains outlook & strategy [see 20112]
Outlook 2021
- Adj EBITDA AL EUR 2.345b (+1%)
- Capex EUR 1.200b (450-500m for FTTH, 700-750m for other); no current plan for mobile network densification
- Opex savings from indirect costs EUR 100m
- FCF 765m, div 13.6c (+4.6%)
- B2C SR grow in 2021, SME SR to stabilise end 2021, Mass Market rev to grow by end 2021; overall B2B rev decline 70-80% of 2020 decline (-5.7%) i.e. c -4.5%
- Leverage currently declines by 0.1-0.2 pp per year (leverage nearing 2.0 is less efficient)
- Cash tax EUR 50-60m over 2022
Ambitions 2023
- Adj EBITDA AL 2.450b
- Capex 1.1-1.2b
- FCF >870m, progressive div (CAGR 3-5%)
3 Strategic Pillars
- Leverage & expand superior networks
- Grow & strengthen customer footprint
- Simplify & streamline operating model
- Focus Consumer remains FMC, focus in ICT with partners (no interest in becoming the largest IT player)
ESG targets
- 30% women in sr mgt by 2023
- 100% circular by 2025
- Carbon neutral by 2030, 50% CO2 emission in supply chain by 2040
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