Presentation 2Q

Empresa de
Telecomunicaciones de Bogotá
Reporting financial results
2Q 2014
01
August 2014
Disclosure
This disclosure contains future projections relating to the probable
development of the business and the estimated results of the Company.
Said future projections include information based on estimates,
approximations and current plans of the company with regard to its
financial future and its operational results.
It should be noted that said information is not in itself an assurance of
actual performance and any of it may be modified at a later date.
Real results may fluctuate with regard to the future projections of the
company due to various factors that are not within the control of the issuer.
The Company is under no responsibility for the information contained
herewith, nor has it any obligation to revise the projections established in
this document, nor is it obliged to update, modify or supplement it in the
light of actual occurrences taking place after its publication.
The information disclosed herein the present document is of an informative
and descriptive nature, and may not be divulged to third parties, nor
reproduced, copied, distributed, used or marketed without the prior
written authorization of the Company.
02
August 2014
Participating
Board Members
03
August 2014
Chairman
ETB
Vice Chairman of
Finance and
Administration
Vice Chairman of
Strategy and Business
Development
Saúl Kattan Cohen
Hernando Chica
Zuccardi
Pablo Gómez Mora
Agenda
1. Relevant facts
2. Financial statements
3. Strategic plan
04
August 2014
Relevant facts
for the Conversion
1Q 2013
Placement of
bonds of external
public debt of 300
million dollars.
Supply was
exceeded by
demand eight (8)
times over.
2Q 2013
Awarding of the
LTE [Long Term
Evolution]
spectrum with
the ETB-Tigo
merger, for the
AWS band on
open block, for
an amount of
$195 billion.
FTTH [Fiber To
The Home]
deployment
begins (N-Play
Program).
3Q 2013
Wi-Fi availability
in public
telephones
implemented
(forty points).
4Q 2013
Accenture a la
Innovación in
Colombia 2013
Prize, appointed
winner by the
public for the
category of
Corporate Social
Responsibility.
Acquisition of 75%
of Skynet.
Agreement for
the sale of
Colombia Móvil
shares (24.99%)
to Une-EPM, for
240 million
dollars.
Winner of the
Evaluamos a la
Innovación
Tecnológica Prize
for the ETB Fiber
To The Home
(FTTH) program.
Merger with the
company
Ingelcom.
05
August 2014
1Q 2014
2Q 2014
Deployment of
fiber optic cable to
over 500,000
homes in Bogota
(homes passed).
First trial call on
our 4G LTE mobile
network.
Completion and
delivery of Fiber
Optic Rings in
Medellin,
Bucaramanga and
Tunja, to
strengthen our
regional presence.
Creation of the
post Vice Chairman
of Customer
Experience
Sector Evolution
Telecommunications
Mobile Internet service surpasses Fixed Internet service in subscriber numbers for a second consecutive quarter, and what's more it
recorded the highest quarterly variation over market services at 41.3%.
TOTAL SUBSCRIBERS PER SERVICE
9
60
8
50
CAGR –
ANUAL
1Q13 - 1Q14
QUARTERLY
VARIATION
4Q13- 1Q14
11,3%
2,6%
1,2%
0,2%
13,9%
4,2%
41,3%
5,8%
6
40
5
30
4
3
20
2
10
No. of cellphone subscribers
(Millions)
No. of subscribers for other services
(Millions)
7
1
-
Cellphone
06
7,5%*
-
Service Basic line
Internet Dedicated
Internet Mobile
2,4%*
TV
Source: Information, MinTIC [Ministério de Tecnologias de la Información y las Comunicaciones (Ministry of Information Technologies and Communication)] 2014. File: informetrimestral1t2014.xlsx.
http://colombiatic.mintic.gov.co/602/w3-article-5550.html
Note:The basic lines (TPBC [Telefonía Pública Básica Conmutada (Public Switched Basic Telephone Service)]) , published by MinTIC in 2012 corresponded to billing lines, while during the other periods
service lines have been published. *ANTV [Autoridad Nacional de Televisión (Television National Authority)] over the course of 2014 did not report any information on TV Paga. 1Q14 Information for
BNamericas. Telecom Stats.
August 2014
Relevant facts
Basic Line - Bogota and Soacha*
ETB maintained leadership in this service for 1Q2014, with almost 60% of market share
Basic Line Subscribers
(Thousands)
2.422
2.422
2.422
150
183
194
.601
1.473
1.432
204
562
208
587
Q-13
4Q-13
1Q-14
CLARO
MOVISTAR
ETB
1Q- - 2013
-2,8%
6,2%
1,8%
4,4%
66,1%
Total Annual Subscribers
CAGR
ANNUAL
Household
Penetration
Quarterly Net
Income
(Thousands)
-
92,8%
-
4Q12 - 4Q13
4Q - 2013
1Q - 2014
7,5%
8,0%
6,5%
UNE
1Q12 - 1Q13
07
0%
MOVISTAR
CLARO
ETB
UNE
192
480
Basic Line Shares
(%)
Variation %
4Q13 - 1Q14
19,8%
7,9%
23,2%
8,4%
24,2%
8,6%
59,1%
60,8%
1Q13 - 1Q14
-
0,02%
96,3%
96,2%
-2
0
Net Profit
4Q13– 1Q14
(Thousands)
25
4
-41
12
* MinTIC publishes service lines again for 2013, unlike 2012 when they were billing lines.
Note: The DANE [Departamento Administrativo Nacional de Estadística (National Administrative Department of Statistics)] report is used to calculate penetration in homes: Hogares_viviendas_19852020.xls
Source: Developed by GEC. Information, SIUST [Sistema de Información Unificado del Sector de Telecomunicaciones ] (MinTIC 2014), file: informetrimestral1t2014.xlsx
August 2014
1
Relevant facts
Dedicated Internet - Bogota and Soacha*
CLARO maintained market leadership with 44%, followed by ETB with 34%. The growing competition in this market is noted.
4Q - 2013
Dedicated Internet Subscribers
(Thousands)
1.392
1.458
Variación %
4Q13 –
1Q14
1,4%
12,2%
4,7%
19
35,7%
9,0%
534
618
640
104
120
127
532
498
493
120
138
178
1Q-13
4Q-13
1Q-14
ETB
MOVISTAR
3,6%
MOVISTAR
6,0%
ETB
UNE
-1,0%
- CLARO
33,8%
8,7%
8,6%
Net Profit
4Q13 – 1Q14
(Thousands)
40
-5
7
CLARO
OTROS
Total Suscriptores Año
1Q12 - 1Q13
CAGR
ANNUAL
Household
Penetration
4Q12 - 4Q13
1Q13 - 1Q14
Number of internet users grows by 10,347 during the quarter
1
15,7%
12,0%
11,4%
52,0%
55,3%
57,9%
1
Annual
Net Profit
(Thousands
4Q-13
178
149
149
Note: The DANE report is used to calculate penetration in homes: Hogares_viviendas_1985-2020.xls
Source: Developed by GEC. Information, SIUST (MinTIC 2014), file: informetrimestral1t2014.xlsx
08
August 2014
22
28,8%
498
UNE
43,9%
21
19
545
1.309
1,4%
Dedicated Internet Shares
(%) 1Q-2014
9,9%
2Q-14
Total number of ETB users
2
Agenda
1. Relevant facts
2. Financial statements
3. Strategic plan
09
August 2014
Financial Statements
Balance Sheet
(COP billions)
Assets
2Q 2014
1.212
1Q 2014
1.233
Liabilities 2Q 2014
976
1Q 2014
977
Equity
2Q 2014
1Q 2013
August 2014
4.692 100%
3.459
627
Short Term
Long Term
Total
1.603 34,1%
641
1.618 34,5%
3.102
3.073
2Q 2014
Liquidity Ratio 1.93
10
4.705 100%
3.493
65,9%
65,5%
1Q 2014
Liquidity Ratio 1.92
Financial Statements
Quarterly Comparisons
(COP billions)
2Q 2013
2Q 2014
11
August 2014
337.860
145.522
331.289
134.454
Revenue
Ebitda
Financial Statements
2Q 2014
(COP billions)
Results
Operating Revenue
Companies
Completed 106%
Statement of results
Costs and Expenditure
132.808
Homes
Completed 89%
7.973
Access fees
Completed 102%
Depreciation,
amortization and
provisions
Completed 97.8%
173.242
Infrastructure
25.239
Completed 101%
Manageable costs
Completed 91.6%
Total
12
August 2014
331.289
109.108
188.863
Total
306.016
Results
2Q 2014
(COP billions)
Revenues
666.266
June 2013
666.920
Junio 2014
Income
Junio 2013
Operating income
Net income
49.592
26.660
Junio 2014
60.947
64.369
Ebitda
13
August 2014
Junio 2013
294.563
Junio 2014
284.754
Profit margin 44,21%
Profit margin 42.70%
Results
2Q 2014
(COP billions)
Local
Special Business Ventures
2013 $300.455
2014 $270.560
Variación -10%
2013 $68.446
2014 $83.486
Variación 22%
Internet
2013 $164.469
2014 $170.126
Variación 3%
LD
2013 $52.308
2014 $52.311
Variación -2%
Data
2013 $76.572
2014 $86.391
Variación 13%
Total
14
August 2014
2013
2014
Variation
$666.266
$666.920
0,1%
Agenda
1. Relevant facts
2. Financial statements
3. Strategic plan
15
August 2014
Strategic Plan
Strategic programs on achievements and challenges
Program
N-Play
services
Achievements

Market
launch of TV service in March 2014.
Deployment of fiber optic cable to over 500,000 homes (homes passed).
Over 90,000 connectable homes.
Challenges 2014
Market launch of value added services
Positioning of LTE service, High speed Broadband and interactive TV in the Bogota
market.
Targets achieved for connectable homes and Revenue.
16
August 2014
Strategic Plan
Strategic programs on achievements and challenges
Program
Cellphone
services
Achievements
First demo call with real-time valuation
New website defined, designed and now in implementation phase

Integration
of Core LTE and IT platforms
Second call using automatic supply and production equipment from CRM
Agreements with online partners
Communications campaign for the final launch
Scheme for sharing network with Colombia Móvil closed
Selection of partners for collections, logistics and technical service, in & out call
center, recharge operators
International roaming service provision broker.
Challenges 2014
Market launch of LTE supply and stabilization
17
August 2014
Strategic Plan
Strategic programs on achievements and challenges
Program
Reinforcement
of Regions
Achievements
Currently constructing Fiber Optic Rings in Zona Franca (Barranquilla), Tunja (Rings
2 and 3) and Bucaramanga (Ring 2)
Construction of other regional developments, such as:
Tramo Pelú (Barranquilla), Ring
Puerta Norte (Medellin), Tramo Barrancabermeja.
Completion of negotiations with suppliers for use of infrastructure in Cities Phase I
Completion of pilot migrations (Barranquilla, Bucaramanga and Medellin) and start
of migrations plan.
Challenges 2014
Continued construction on planned Rings.
Continue migrations plan
18
August 2014
Strategic Plan
Strategic programs on achievements and challenges
Program
Wifi
Achievements
Receipt
and installation of the Wi-Fi controller.

Alterations to the infrastructure for holding Wi-Fi equipment.
Internet transportation carried out in 7 ETB and Corabastos service centers.
Wi-Fi access points installed in 6 ETB service centers.
Positive feasibility for Codensa to provide Wi-Fi coverage to 23 business areas.
Challenges 2014
Market launch in the second quarter
19
August 2014
Strategic Plan
Strategic programs on achievements and challenges
Program
Excellence in
Service
Achievements
Reinforcement of 25 Self-service kiosks.
Installation
of touch-screen customer service panels in current stores

Start of the Certification of Service Experience process
Creation of the post Vice Chairman of Customer Experience
Advances made in Open Office
Administrative headquarters Center facade.
Challenges 2014
Implementation of the new customer experience concept in the new Culminar stores,
conversion of the physical facilities, in a manner consistent with ETB's image and
positioning.
Re-design of the (prioritized) interactions that the customer has with ETB
Strengthen the Service skills of ETB personnel.
20
August 2014
Strategic Plan
Strategic programs on achievements and challenges
Program
Strategic
Customer
Management
Achievements
Operational
consolidation of Strategic Business Units (SBU), Identification and

Labeling of customers per Strategic Business Unit (SBU) and Siebel Segment
Financial information consolidation by SBU to improve follow-up
Challenges 2014
Implementation and production start-up of Strategic Customer Information reports.
21
August 2014
Thank you,
inversionistas@etb.com.co
www.etb.com.co/inversionistas
+ (571) 242 3029
01 8000 120077
22
August 2014