Presentation on theme: "Abcabc Press Conference February 19 th 2004 Oslo Børs 1 Q4/Annual Results 2003."— Presentation transcript:
abcabc Press Conference February 19 th 2004 Oslo Børs 1 Q4/Annual Results 2003
abcabc Press Conference February 19 th 2004 Oslo Børs 2 Q4/Annual Results 2003 Olav Stokke CEO
3 Press Conference February 19 th 2004 Oslo Børs Highlights Q4 2003 / FY 2003 Strong growth compared to 2002 –102 % organic growth in revenue –81 % growth in lines in operation –Strong improvements in gross margin, 54.1 % in Q4 2003. –Strong improvement in EBITDA, 18.1 % EBITDA ratio in Q4 2003. Financially strengthened as part of the IPO-process 19 th December The Company continues its progress towards positive EBIT. Strong player in the Norwegian broadband market, both for residential and corporate customers. –Sustained #2 market position (broadband no. of lines)
5 Press Conference February 19 th 2004 Oslo Børs Balance Sheet significantly strengthened Moderate growth in fixed assets Current assets increased –Financially strengthened due to IPO –Free cash at year end was mNOK 80. –Continuous improvements in DSO (22 days at year-end) Long term debt reduced as instalments exceeds new loans. Net growth in current liabilities due to growth in accruals of income –Significant reduction in trade payables. Equity ratio of 36 %.
6 Press Conference February 19 th 2004 Oslo Børs Financing / covenants per February 2004 NextGenTel has financial covenants related to the balance sheet and performance. The financial covenants are: –Interest bearing debt less free cash divided on 2004 EBITDA less than 3 (measured at 31.12 2004) –Minimum equity ratio of 27.5% (CSFI 25%) to be measured at June 30 th and Dec. 31 st –Minimum cash balance of mNOK 17 (CSFI only) –Covenants to be measured at Group level In NextGenTel’s view the current covenants will not limit the company’s business opportunities/options. Current available unused loan/lease frames for long term financing is mNOK 115. In addition there is an available free cash position and a credit line of approximately mNOK 100.
7 Press Conference February 19 th 2004 Oslo Børs Trade receivables, customer payments and DSO Effective management of debtors –High degree of automation Trade receivables growing slower than the increase in revenue –improving cash flow from operations Recurring Business –customer payments increasing month by month Marginal losses on receivables
8 Press Conference February 19 th 2004 Oslo Børs Cash-flow / Investments 2003 Investments reduced compared to 2002 –mNOK 100,8 invested in 2003 vs. mNOK 238,2 in 2002. Long term loans reduced in 2003. –Instalments on loans mNOK 93,6 in 2003 –New loans in 2003 of MNOK 79,3 compared to new loans in 2002 of mNOK 204,9. Simplified cash flow: (Cash Flow = EBITDA – CapEx) –mNOK -50,4 for 2003 –mNOK –11,9 for Q4-2003.
9 Press Conference February 19 th 2004 Oslo Børs Scalability development
10 Press Conference February 19 th 2004 Oslo Børs Market growth/share vs. Telenor Seasonal market development Steady market share vs. Telenor 26-27% Overall broadband (all technologies) market share of 18 % (July 2003, according to NPT) xDSL is the fastest growing broadband technology
11 Press Conference February 19 th 2004 Oslo Børs 2003 final comments Well positioned in a fast growing strong mass market Recurring revenue Stable ARPU Growing Margin –Economics of scale –Scalable business model Reduced depreciation per line due to reduced marginal investments High financial costs –to be reduced due to strengthened balance sheet and reduced interest rates
12 Press Conference February 19 th 2004 Oslo Børs Largest shareholders registered per February 16th 2004 20 largest shareholders hold 82.5 % 2 largest shareholders hold 47.17 % Currently 496 shareholders, reduced from 865 at December 19 th 2003.
abcabc Press Conference February 19 th 2004 Oslo Børs 13 2004
14 Press Conference February 19 th 2004 Oslo Børs 2004 status 66,000 total subscriber lines per end January 2004 –2,700 net new subscriber lines in January Strengthened financial position –Additional/new financing frames Marginal investments per new subscriber line dropping significantly to a level below NOK 1,000 per line (previously disclosed approx. 1,600 per line in the Prospectus) More focus on wireless solutions in the residential market Reduced prices on the high bandwidth products creating more interest for bandwidth consuming content from e.g. NRK and TV2
15 Press Conference February 19 th 2004 Oslo Børs Market assumptions and expectations Approx. 290,000 DSL subscriber lines per December 31 st 2003 (assessed from Telenor figures) Approx. 140,000 new lines in 2003 (97% DSL growth) Gallup research (Dec. 2003 for NextGenTel) shows a potential of approx. 150,000 new lines next 6 months … NextGenTel assumes between 175,000 and 225,000 new lines (DSL) in total in 2004
16 Press Conference February 19 th 2004 Oslo Børs 2004 Strategic Focus Steady continuous improvements towards profitability –Maintain and increase scalability –Aim to reduce overall size of balance during the year Further sustain the #2 market position Grow the position in the SME segment –VDSL –Efficient, scaleable and automated hosting services Continue focus on market leading and competitive high bandwidth solutions and content Launch commercial public telephony services (based on IP) –Increase ARPU Improve Customer Services (modern CallCentre put in operation in January 2004)
17 Press Conference February 19 th 2004 Oslo Børs Q & A session