second quarter 2020 July 14, 2020, Vienna Cautionary statement - PowerPoint PPT Presentation

Results for the first half and second quarter 2020 July 14, 2020, Vienna

Cautionary statement 'This presentation contains forward-looking statements. These forward-looking statements are usually accompanied by words such as 'believe', 'intend', 'anticipate', 'plan', 'expect' and similar expressions. Actual events may differ materially from those anticipated in these forward-looking statements as a result of a number of factors. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Neither A1 Telekom Austria Group nor any other person accepts any liability for any such forward- looking statements. A1 Telekom Austria Group will not update these forward-looking statements, whether due to changed factual circumstances, changes in assumptions or expectations. This presentation does not constitute a recommendation or invitation to purchase or sell securities of A1 Telekom Austria Group.‘ All figures for 2020 are stated according to IFRS 16 if not stated otherwise. Alternative performance measures are used to describe the operational performance. Please therefore also refer to the financial information presented in the Consolidated Financial Statements, as well as the reconciliation tables provided in the Earnings Release. Results for the first half and second quarter 2020 2

A1 Telekom Austria Group key facts Revenues by segment (a) Bulgaria 10,5% Austria 57,5% 9,4% Croatia 9,2% Belarus 4,5% Slovenia 6,2% 2,7% North Macedonia Serbia EBITDA by segment (a) Bulgaria 11,1% Austria 8,9% Croatia 56,8% 11,8% Belarus 3,6% Slovenia 5,1% 2,7% Serbia North Macedonia Notes: (a) For Full Year 2019. Breakdown does not show corporate, others and eliminations. Results for the first half and second quarter 2020 3

The leading regional communications player providing convergent telecommunication services as of June 30, 2020 (in ‘000) Austria Bulgaria Croatia Mobile market position #1 Mobile market position #2 Mobile market position: #1 Mobile subscribers: Mobile subscribers: Mobile subscribers: 5,004 (Q2 2019: 5,241) 1,872 (Q2 2019: 1,844)  3,759 ( Q2 2019: 3,837)   RGUs: RGUs: RGUs: 3,194 (Q2 2019: 3,284) 676 (Q2 2019: 704)  1,075 ( Q2 2019: 1,045)   Serbia Belarus Slovenia North Macedonia Mobile market position #1 Mobile market position #2 Mobile market position #2 Mobile market position #3 Mobile subscribers: Mobile subscribers: Mobile subscribers: Mobile subscribers:  1,051 (Q2 2019: 1,085) 4,864 (Q2 2019: 4,869) 699 (Q2 2019: 697)  2,273 (Q2 2019: 2,272)   RGUs: RGUs: RGUs: 618 ( Q2 2019: 624)  334 (Q2 2019: 329)  208 (Q2 2019: 190)  Results for the first half and second quarter 2020 4

Shareholder structure as of December 31, 2019 Two strong core shareholders Freefloat by nationality Rest of World Switzerland Employee Rest of Europe 1,6% 0,5% Stocks/Treasury 1,2% Shares 0,8% United Kingdom Free Float 2,7% 20.58% United States Unidentified 34,8% 3,4% Nordics 5,1% América Movil 51.00% France 9,6% * ÖBAG 28.42% Germany 20,9% Austria 19,3% Results for the first half and second quarter 2020 5 * Austrian state fund, formerly ÖBIB

2013-2019: Balance sheet structure significantly improved Debt ratio sharply Equity ratio Rating improved reduced significantly increased Net Debt / EBITDA (pre IFRS 16) Reimbursement Baa1/BBB+ 3.4 of hybrid bond 0.5 26.7 29.2 34.9 38.5 32.6 31.2 2.6 Baa2/BBB 2.2 2.1 2.0 2.0 0.5 1.8 (positive outlook) 0.4 0.4 0.4 19.2 2.9 Baa2/BBB 2.1 2.0 1.8 1.8 1.7 1.7 (stable outlook) Baa3/BBB- 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 Hybrid bond / EBITDA Equity ratio, in % Rating Moody’s Net debt (excl. Hybrid) / EBITDA Rating S&P Stable free cash flow of ~ EUR 380 mn per Continuous improvement of the equity Standard & Poor‘s : Rating upgrade from    year supports deleveraging ratio (2019 impacted by the adoption of BBB to BBB+ (outlook: stable) on IFRS 16 accounting) August 12, 2019 Repayment of EUR 600 mn hybrid bond  2018 underscores financial strength and Hybrid bond classified as equity under Solid financing ratios and ensured liquidity:   reduces future interest payments IFRS, therefore repayment reduces EUR 1bn open credit line facility, 1st bond equity ratio in 2018 repayment in Dec. 2021 (EUR 750 mn) Results for the first half and second quarter 2020 6

Operational and financial highlights for the first half and second quarter 2020

Highlights Q2 2020 Group total revenue decline of -2.4% (excl. FX and one-off effects: -0.2%) and EBITDA  before restructuring growth of 0.5% (excl. FX and one-off effects: +3.9%) Stable service revenues (-0.4%) despite roaming losses and unfavorable FX development  Mobile contract customer base increase of 3.7% y-o-y with growth in almost all markets  RGU decreased by -1.2% y-o-y, TV RGU growth mitigated the decline in fixed-line voice  and low-bandwidth broadband RGUs in Austria New Outlook 2020: ~-2% decline of total revenues, ~-25% capital expenditures  (vs. initial outlook of EUR 770 mn) Some easing of government measures in all markets (except for Belarus and North  Macedonia) starting end of April, but rising number of Covid-19 cases in July and reintroduction of some regional measures Some normalization of traffic volumes and customer behavior in general  Covid-19 impact on Q2 2020 figures:  Roaming losses due to travel restrictions  Decline in equipment revenues resulting from less quantities sold   Capex and Opex cuts to ensure flexibility Results for the first half and second quarter 2020 8

EBITDA growth due to diligent cost savings outweighing roaming losses from travel restrictions and negative FX effects Group (in EUR million) Q2 2020 Q2 2019 % change Total revenues 1,095.7 1,122.6 -2.4% Service revenues 939.5 943.7 -0.4% EBITDA before restructuring* 415.1 413.2 0.5% CAPEX 147.3 256.8 -42.6% Group total revenues decreased by 2.4% mainly due to lower equipment revenues, roaming losses and lower OOI  (one-off effect in Austria in Q2 2019), excluding FX and one-off effects total revenues were stable (-0.2%) Stable service revenues (-0.4%) as higher fixed-line service revenues mitigated lower mobile service revenues  EBITDA before restructuring grew in Q2 2020 as cost savings (e.g. advertising, travel and training expenses) more  than offset roaming losses (~5% of EBITDA), negative FX effects and a positive one-off effect in Q2 2019 In Austria EBITDA before restructuring charges rose by 0.4% (+3.7% excl. one-off effect), due to higher  mobile service revenues despite roaming losses as well as due to OPEX savings Q2 2020 showed a particularly strong free cash flow generation of EUR 158.8 mn (Q2 2019: EUR 34.2 mn), due to  lower capital expenditures paid in Q2 2020 as well as frequencies paid in Q2 2019 as well as better working capital * Restructuring charges: EUR 25.0 mn (Q2 2019: EUR 21.1 mn) Negative FX effects of EUR 16.4 mn in total revenues, EUR 12.2 mn in service revenues and EUR 7.1 mn in EBITDA Positive one-off effects in Q2 2019: EUR 8.2 mn in revenues, EUR 6.8 mn in EBITDA Results for the first half and second quarter 2020 9

Austria and international operations in Q2 2020 Service Revenues EBITDA before restructuring Total revenues (in EUR mn) (in EUR mn) (in EUR mn) -22.6 1.122,6 -10.3 1.095,7 -14.4 excl. one-off +6.1 excl. FX -2.5 943,7 -7.5 939,5 +0.5% -2.4% +4.7 415,1 1.0 -1.6 413,2 excl. FX -0.4% +9.2 +5.5 excl. one-off excl. FX EBITDA before Austria International EBITDA before Revenues Austria International Revenues Service Austria International Service restructuring operations restructuring 2019 operations 2020 Revenues 2019 operations Revenues 2020 2019 2020 Deviation between A1 Group and the sum of Austria and international operations due to Corporate & Eliminations. Restructuring charges: EUR 25.0 mn (Q2 2019: EUR 21.1 mn) Negative roaming impact on EBITDA: about 5% Negative FX effects of EUR 16.4 mn in total revenues, EUR 12.2 mn in service revenues and EUR 7.1 mn in EBITDA Positive one-off effects in Q2 2019: EUR 8.2 mn in revenues, EUR 6.8 mn in EBITDA Results for the first half and second quarter 2020 10