See presentation

Empresa de
Telecomunicaciones
de Bogotá - ETB
Corporative presentation
www.etb.com.co/inversionistas/
1
Disclosure
This disclosure contains future projections relating to the probable development of the
business and the estimated results of the Company. These future projections include
information based on Company estimates, approximations and current plans with regard
to its financial future and its operational results. Please note that this information is not in
itself an assurance of actual performance and 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.
2
Schedule
1.
2.
3.
4.
5.
6.
General information
TMT Market information
Strategic approach
Business lines information
Financial information
Contact information
3
General information
Organization Chart, June 2016
(5)
(50)
(11)
(74)
(11)
4
(97)
(148)
(86)
(1658)
(127)
(321)
(102)
(85)
General information
Company Shareholder Structure, June 2016
MV, GM,
EAAB,
FPECP,
IDU, LB
U. Distrital
Foreigners
1.77%
9.96%
0.04%
Individuals
47.21%
Bogotá D.C.
Ordinary
Public
Shareholders
88.40%
Ordinary
Private
Shareholde
rs
11.60%
86.59%
Local
Institutions
42.82%
Total shares on the market: 3,550,553,412
Total dematerialized shares - Floating: 413,382,675
5
Municipality of Villavicencio: MV
Meta Governor's Office: GM
Empresa de Acueducto y Alcantarillado de Bogotá: EAAB
Fondo de Prestaciones Económicas Cesantías y Pensiones: FPECP
Instituto de Desarrollo Urbano de Bogotá: IDU
Lotería de Bogotá: LB
General information
Top 10 shareholders, June 2016
Ordinary shareholders
1 DISTRITO CAPITAL
No. of ETB
Shares
% of outstanding
shares
3.074.421.943
86,59%
2 UNIVERSIDAD DIATRITAL
62.743.304
1,77%
3 BLCKWELL PARTNERS LL-C MEXICO
43.328.403
1,22%
4 AMBER GLOBAL OPPORTUNITIES MASTER FUND LTD*
23.430.379
0,66%
5 GLOBAL X/INTERBOLSA FTSE COLOMBIA 20 ETF
13.087.000
0,37%
6 ALLIANCEBERNSTEIN NEXT 50 EMERGING MARKETS (MASTER*
11.996.040
0,34%
7 FONDO BURSATIL ISHARES COLCAP
9.305.920
0,26%
8 INVERSIONES MANANTIAL S.A.
7.160.236
0,20%
9 BARCLAYS CAPITAL INC
7.000.000
0,20%
10 THE HUMAN DEVELOPMENT INVESTMENT FUND, L.P.
5.648.890
0,16%
6
General information
ETB Subsidiaries
88,16%
Colvatel S.A. E:S:P:
39,99%
Americas Business
Process Services
75%
Skynet de Colombia
S.A. E:S:P:
7
General information
Current Certifications
For the third consecutive year, ETB received the Investor Relations (IR) Award
issued by the Colombian Securities Exchange.
Corporación Transparencia por Colombia recognized ETB for its good practices
in Strengthening Investor Relations at the Sixth Roundtable of Good Corporate
Transparency Practices.
The Superintendence of Industry and Commerce granted ETB an invention
patent for friction cups and the systems that provide them with safety. This
invention contributes to the fight to end copper wire theft in the city.
Recertification in ISO Quality Management Systems
9001: 2008, ISO 27001:2005, GP 1000: 2009 and ISO 14001:200
ETB 4G mobile phones won the Accenture National Award for Innovation in its
third version for innovative and disruptive commercial offer, awarded by the
public.
8
General information
Debt ratings
Domestic
corporate debt
rating was lowered
to
AA+
CASH FLOW
generation
1
March 2016
2
First company in
Colombia to
obtain an
international
INVESTMENT
GRADE credit
rating
CONSERVATIVE
FINANCIAL
MANAGEMENT policy
DEBT PROFILE
Local and
foreign
currency
BBB-
3
4
LOW LEVEL OF DEBT
Strong debt service coverage
margins
Bonded debt
International scale
Ba1
Ba1
Stable outlook
August 2015
Stable outlook
August 2015
9
General information
Corporate Social Responsibility
ICT Mass
Availability
Program



10 years operating in the
communities
More than 750 thousand
people trained
More than 100 interactive
portals in Bogotá and around
the country
Corporate
Responsibility
Management



It is intended to promote the
understanding of corporate
responsibility at ETB through ethical
and transparent management with our
Stakeholders
Search for economic, social and
environmental balance to increase the
Company's value
Main lines of action:
 Stakeholder relations
 Ethics and transparency
management
 Value generation
Environmental
Management
System




It is intended to promote, improve
and maintain corporate
environmental performance
High level of commitment to
regulatory applicability for
sustainable development
Adopt initiatives through the
adequate ICT use
Environmental performance based
on the principles of the Global
Compact and ISO 14001:2004
requirements.
ETB supports
initiatives in
Colombia and
the world



Participation in external initiatives to
increase the Company's compliance
skills.
Mercosur region and Colombia:
Program led by the Global Compact
Colombia along with the German Global
Compact Network and support from the
German Chamber of Commerce in
Argentina.
Other initiatives:
 The United Nations Global Compact
 FTTH – Fiber to the Home Council
Americas
 Te Protejo – An initiative to
effectively protect children and
adolescents in Colombia through the
Internet.
10
Schedule
1.
2.
3.
4.
5.
6.
General information
TMT Market information
Strategic approach
Business lines information
Financial information
Contact information
11
TMT Market information
ETB's Market share
Market share 1Q 2016
Bogotá
ETB’s market
share variation
4Q 2015 – QT 2016
Colombia
TV
TV
TV
Market Units
(000)
2.333
1.647
1.271
7.078
5.481
5.190
8.041
57.293
Annual Var.
-1%
8%
4%
-2%
9%
4%
29%
2%
54%
34%
6%
20%
11%
2%
2%
1%
-5%
10%
444%
-5%
9%
216%
407%
490%
32%
47%
62%
25%
37%
42%
55%
49%
7%
8%
3%
24%
22%
9%
27%
23%
Annual Var.
TV
7%
Others
10%
7%
24%
22%
20%
13%
20%
-
-
16%
-
-
19%
-
-
0%
1%
8%
7%
3%
7%
6%
8%
+1,1 pp
Bogotá
+0,3 pp
Bogotá
+0,3 pp
Colombia
-0,1 pp
Colombia
-0,5 pp
Bogotá
12
Source: MinTIC
Schedule
1.
2.
3.
4.
5.
6.
General information
TMT Market information
Strategic approach
Business lines information
Financial information
Contact information
13
Strategic approach
Main focus
Main focus
What is it about?
• Obtain revenues from the infrastructure
• Increase commercial activity
• Emphasis on FTTH, TV, mobile services
1
Business
new approach
2
Operating
efficiency
• Improve profitability and reduce costs
3
Customer
service
• Prioritizing customer service
14
Strategic approach
Customer service
Customer service
metrics
Customer
Service
Pomise
Service
Channels
PROGRAM SERVICE
CULTURE
Teamworking
ETB –
Subsidiaries
Ongoing
Comunication
Processes
15
Schedule
1.
2.
3.
4.
5.
6.
General information
TMT Market information
Strategic approach
Business lines information
Financial information
Contact information
16
Business lines information
FTTH - FTTC
1,266 thousand homes
connected
Speeds up to:
2016
June
Only operator using
FTTH on a large scale in
Colombia
FTTH
+
FTTC
Making Bogotá
one of the best cities
with Internet
connection in LATAM
75
150
150
MB/Sec
Upload
150
MB/Sec
Download
612 thousand connectable
homes
153 thousand connected
homes
63% of the households in Bogotá
17
Business lines information
Television
2016
June
Recording up to 5
channels at a time
Option to rewind
up to 60 minutes
IPTV
Television
Less than 1
second to change
channels
Allows the pausing of
live channels for later
viewing
"Unique
functionalities of
digital TV
on the market"
The best platform in
Colombia via FTTH
95 thousand
customers
Some of our channels
On-line:
Capacity of:
102 High Definition channels
126 Standard Definition channels
Implementation
of VOD (Video
on Demand)
Implementation of
OTT: live channels
on mobile devices
18
Business lines information
4G mobile
2016
June
490 thousand
customers
47% post-pay
53% pre-pay
Positioning of the
offer in Data:
Without deducting from the
data bag in all the pre- and
post-pay plans.
Facebook
Whatsapp
4G LTE
mobile
4G coverage: 121
municipalities, as of
June-16
Spotify Premium
Exclusive for Colombia
Commercial
partnerships to
consolidate data
positioning
National Commercial
Expansion:
Bucaramanga, Cúcuta, Santa
Marta, Barranquilla,
Cartagena, Medellín,
Cali, Popayán, Villavicencio,
Girardot, Pereira, Armenia and
Manizales
19
Business lines information
Corporate Services
Dedicated
infrastructure
Business Applications
and Outsourcing
Managed Services and
ICT Platforms
Cloud
Services
Solutions through ITO / BPO
Unified
Communications
and Cooperation
Security, WiFi
areas and LAN
DRP, XaaS
Networks and
Infrastructure
Telephone Line
Direct portfolio of services
Connectivity
Direct portfolio of
services
Comprehensive solutions using ICT
Partners
20
Business lines information
Infrastructure
Network with national coverage
Bogotá coverage
Coverage of 63% of Bogota with the only fiber network
optics to the home.
The biggest WiFi coverage - 187 points.
21
Schedule
1.
2.
3.
4.
5.
6.
General information
TMT Market information
Strategic approach
Business lines information
Financial information
Contact information
22
Financial information
Balance sheet $MM - COP
Liabilities
y-o y Var.%
Assets
Total
liabilities
+31%
2340
Total Assets
2619
2480
2436
2437
1.697
1.625
1860
y-o y Var.%
-1,2%
1.650
1.610
1.690
1.270
4630
3.180
4880
4720
3.610
3.330
4890
3.780
4654
4576
595
696
875
922
739
812
1T 2015
2T 2015
3T 2015
4T 2015
1T 2016
2T 2016
Current Liabilities
Equity
3.792
3.781
Non-Current Liabilities
y-o y Var.%
-22,5%
1.440
1.380
1.260
1.110
863
795
2T 2015
3T 2015
4T 2015
1T 2016
2T 2016
2.760
1T 2015
Current Assets
2.370
2.390
2.278
2.218
2.139
23
Non-Current Assets
1T 2015
2T 2015
3T 2015
Equity
4T 2015
1T 2016
2T 2016
Financial information
Declared Dividends
$MM - COP
450
400
350
300
250
404
200
320
150
100
162
50
180
178
164
131
105
148
129
80
53
0
0
67
0
2016
2015
2015Extraordinarios
Extraordinary
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
62
2015
81
2014
84
24
Financial information
Income Statement $M – COP
Item
(M)
Annual Evolution
1S 2016 Vs. 1S 2015
1S 2015
1S 2016
Var. $
% Var.
TOTAL REVENUES
713.526
732.098
18.572
3%
TOTAL COST AND EXPENSES
501.380
556.138
54.758
11%
EBITDA
212.147
30%
175.961
24%
-36.186
-17,1%
215.634
273.597
57.963
27%
-3.487
-97.637
-94.149
2.699,8%
4.487
-8.431
-12.918
-288%
1.000
-106.068
-66.931
6.956
73.888
-110%
67.931
-113.024
-180.955
-266,4%
EBITDA Margin
NO GESTIONABLES
RECURRING OPERATING INCOME
NET FINANCIAL STATEMENT AND OTHERS
PROFIT BEFORE TAX
Total taxation expense
PROFIT / LOSS
Other Comprehensive Income ( Income +
Expenses)
TOTAL COMPREHENSIVE INCOME
-107.068 -10.708,3%
25
0
22
22
N.D
67.931
-113.002
-180.934
-266,3%
Financial information
Income by business lines
$MM – COP
1S 2015
2S 2015
1S 2016
Business
Business
income
% Revenue
Op.
Business
income
% Revenue
Op.
Business
income
% Revenue
Op.
TOTAL
680
100%
708
100%
703
100%
Copper
417
61%
386
55%
379
54%
Fiber
19
3%
48
7%
79
11%
Mobile Services
22
3%
45
6%
54
8%
Corporate
221
33%
229
32%
191
27%
26
Financial Information
Operating Income
$MM - COP
23
3%
33
27
23
14
10
19
703
680
jun-15
Jun
2016
Variation (%)
Absolute Variation
Local´+
Local
+ LD
Long Distance
Corporate
Soluciones
solutions
Corporativas
Enterprise
Datos
Datos
Data
Empresariales
Televisión
Television
Internet
Internet
Móviles
Mobiles
jun-16
Jun 2016
27
Financial information
Total Cost and Expenses
MM – COP
55
11%
58,7
16,7
1,5
0,5
0,1
3,5
11,1
556
501
Jun 2016
2015
Jun
Variation (%)
Absolute Variation
Comercial Administrativos
Commercial
Administratives
Otros
Others
Regulatorios
Regulatory
Customer
Servicio
al
Services
Cliente
Personal
Personnel
Producción
Production
Jun
Jun 2016
2016
28
Financial Information
EBITDA and EBITDA margin
$MM – COP
60%
800
53%
140
700
50%
47%
45%
100
500
28%
400
756
634
615
30%
600
40%
300
555
20%
30%
120
39%
30%
35%
403
10%
25%
23%
23%
21%
80
20%
60
200 40
15%
119
82
84
72
92
100 20
0%
0
2011
2012
EBITDA
2013
2014
EBITDA Margin
2015
25%
10%
5%
-
0%
2T 15
3T 15
EBITDA
4T 15
1T 16
2T 16
EBITDA Margin
29
Financial information
Capex
$MM – COP
-33%
900
800
60%
300
700
46%
47%
836
500
400
620
31%
660
238
181
40%
200
138
150
138
150
30%
89
16%
100
20%
500
200
100
252
50%
250
600
300
328
70%
350
57%
121
10%50
219
-
0% -
(E)
2012
2013
CAPEX
2014
2015
2T 14
2016
3T 14
1T 15
Fiber
CAPEX / Income
2T 15
Tradicional
3T 15
4T 15
1T 16
2T 16
Mobilel
CAPEX levels towards the industry standards
100%
80%
82%
69%
50%
60%
40%
20%
4T 14
37%
25%
34%
0%
1T 15
2T 15
3T 15
4T 15
CAPEX / Revenues
1T 16
2T 16
30
Financial information
0
7E+10
1.000
6/30/2016
3/31/2016
12/31/2015
9/30/2015
6/30/2015
3/31/2015
12/31/2014
9/30/2014
6/30/2014
3/31/2014
12/31/2013
9/30/2013
6/30/2013
3/31/2013
12/31/2012
9/30/2012
6/30/2012
3/31/2012
12/31/2011
9/30/2011
6/30/2011
3/31/2011
9/30/2010
12/31/2010
6/30/2010
3/31/2010
12/31/2009
9/30/2009
6/30/2009
3/31/2009
9/30/2008
12/31/2008
6/30/2008
3/31/2008
12/31/2007
9/30/2007
6/30/2007
3/31/2007
12/31/2006
9/30/2006
6/30/2006
3/31/2006
12/31/2005
9/30/2005
6/30/2005
3/31/2005
12/31/2004
9/30/2004
6/30/2004
3/31/2004
12/31/2003
ETB Average Price/Year
ETB Closing Price
Stock
Transaction
Volume
31
9/30/2003
-
1E+11
1.400
ETB Stock, 2003 - 2016
9E+10
1.200
8E+10
800
6E+10
5E+10
600
4E+10
400
3E+10
2E+10
200
1E+10
Financial Information
Global ETB Bond, 2014 - 2016
Issuer:
Empresa de Telecomunicaciones de Bogotá S.A E.S.P
Value issued:
COP 530,180,000,000
16
120
14
13,624
100
93,857
12
80
Maturity date:
January 17, 2023
10
72,46
8,033
8
Placement date:
January 9, 2013
60
6
40
Issue date:
January 17, 2013
0
7/1/2016
6/1/2016
5/1/2016
4/1/2016
3/1/2016
2/1/2016
1/1/2016
12/1/2015
11/1/2015
ETBCB 7 01/17/23 YLD_YTM_MID
10/1/2015
9/1/2015
8/1/2015
7/1/2015
6/1/2015
5/1/2015
4/1/2015
3/1/2015
2/1/2015
1/1/2015
12/1/2014
Date of annual interest payment:
January 17 each year
0
11/1/2014
COP – USD exchange rate on January 17, 2013: COP
1,775.15
20
2
10/1/2014
Interest:
7.00% annual. Calculated in Colombian pesos and
payable in US dollars
4
ETBCB 7 01/17/23 PX_LAST
32
Schedule
1.
2.
3.
4.
5.
6.
General information
TMT Market information
Strategic approach
Business lines information
Financial information
Contact information
33
Contact information
Investor Relations Direction
Investor Relations Area
Costumer Service Center: Carrera 7 # 20 – 99. Primer Piso. Phone:
01 8000 12 00 77
Mail: inversionistas@etb.com.co
Web contact: www.etb.com.co/inversionistas/
Investor Relations team
Eugenia Londoño Vallejo
Eugenia
Londoño
Vallejo
Investor
Relations
Director
eugenia.londonov@etb.com.co
Director of Investor Investor
Relations
eugenia.londonov@etb.com.co
Maria Alejandra Rubio
Chaustre
Maria Bruny Fajardo
maria.fajardo@etb.com.co
maria.rubioc@etb.com.co
34
Thanks,
35