Earnings Release • Mar 3, 2022
Earnings Release
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| Table 1. | ||||||
|---|---|---|---|---|---|---|
| 4Q21 Highlights | 4Q20 | 4021 | 4Q21/4Q20 | 2020 | 2021 | 2021 / 2020 |
| Operating Highlights | ||||||
| Homes Passed | 4,806.7 | 5,123.3 | 6.6% | 4,806.7 | 5,123.3 | 6.6% |
| % FttH | 39.5% | 53.1% | 13.6pp | 39.5% | 53.1% | 13.6pp |
| Total RGUs | 9,919.1 | 10,306.4 | 3.9% | 9.919.1 | 10,306.4 | 3.9% |
| Fixed Pay TV RGUs | 1,362.7 | 1,394.2 | 2.3% | 1,362.7 | 1,394.2 | 2.3% |
| Convergent + Integrated Customers | 976.7 | 1,020.6 | 4.5% | 976.7 | 1,020.6 | 4.5% |
| Fixed Convergent + Integrated Customers as % of Fixed Access Customers |
62.4% | 64.4% | 2.0 pp | 62.4% | 64.4% | 2.0 pp |
| Mobile RGUs | 5,007.8 | 5,349.9 | 6.8% | 5.007.8 | 5.349.9 | 6.8% |
| Residential ARPU / Unique Subscriber With Fixed Access (Euros) | 44.3 | 46.0 | 3.8% | 43.5 | 44.8 | 3.0% |
| Financial Highlights | ||||||
| Consolidated Revenues | 354.3 | 385.4 | 8.8% | 1,367.9 | 1,430.3 | 4.6% |
| Consolidated EBITDA | 132.0 | 140.2 | 6.3% | 603.2 | 618.0 | 2.5% |
| Consolidated EBITDA Margin | 37.3% | 36.4% | (0.9 pp ) | 44.1% | 43.2% | (0.9 pp ) |
| Consolidated EBITDA - Consolidated CAPEX Excluding Leasings, Spectrum License & Other Contractual Rights |
16.6 | 28.0 | 68.1% | 218.3 | 195.6 | $(10.4\%)$ |
| Telco Revenues | 350.2 | 372.3 | 6.3% | 1,345.7 | 1.401.5 | 4.1% |
| Telco EBITDA | 123.7 | 126.8 | 2.5% | 573.6 | 574.4 | 0.1% |
| Telco EBITDA Margin | 35.3% | 34.1% | (1.2pp) | 42.6% | 41.0% | (1.6 pp ) |
| Telco EBITDA - Telco CAPEX Excluding Leasings, Spectrum License & Other Contractual Rights |
12.9 | 21.2 | 64.8% | 209.5 | 168.8 | $(19.4\%)$ |
Convergent customers, increased by 14.8 thousand in 4Q21 to 1.021 million customers, with penetration of the fixed access customer base reaching 64.4%;
Fixed pay TV customers grew by 11.3 thousand to 1.394 million; Total Pay TV customers stood at 1.647 million at the end of 4Q21, over 85% of which receiving the service over fixed access technology;
4Q21 was another strong quarter of operational growth for all segments of our telco operation. We ended the year with over 10.31 million services (RGUs), 1.65 million Pay TV subscribers, 5.35 million mobile subscribers, 61.5% of which in post-paid contracts, and 1.486 million broadband subscribers. Total Convergent RGUs grew to 5.23 million and the number of households that take convergent offers grew to 1.021 million. As a percentage of the fixed access customer base, convergent penetration reached 64.4%.
We continued to extend our Gigabit network, reaching 5.123 million households by the end of 4Q21. Our FttH footprint now covers 53% of the network, well on track to reach all homes in Portugal in the coming years.
After winning the 5G auction in October with the acquisition of the most spectrum of any other bidder, on 26 November we became the first operator in Portugal to launch commercial 5G services. NOS customers across the country can now take advantage of the unique features of 5G, benefiting from a superior user experience. 5G is a central pillar for the digital transition of Portuguese society and will reinforce the competitiveness of our economy. For residential and individual customers, 5G means greater quality and speed in connectivity, consumption, sharing of multimedia content and access to immersive experiences. To provide users the opportunity to feel the power of this new technology, in early 2022, we included an array of exciting Cloud Gaming, Virtual Reality and Augmented Reality experiences in our NOS App. For the corporate world, 5G exponentially increases the power of digital technologies, such as Massive IoT, Video Analytics and AR/VR, enabling companies from all sectors and industries to achieve a whole new level of competitiveness, driven by increased efficiency and business model innovation. At launch of this new technology, NOS offers free 5G services to subscribers of specific mobile voice and broadband tariff plans. Also, and to provide as many customers as possible with the opportunity to try the new technology, NOS launched a handset promotion with discounts of up to 150 euros on equipment price and 55GB data allowance. Customers that want to keep their 5G service active after the promotional period can subscribe to a 5G upgrade plan for 5 euros a month. With more potential than any preceding technology, our commitment is to make 5G available to everyone, an invaluable opportunity to address the social, economic and environmental challenges we are facing. NOS is taking the lead in this new era of technological disruption, through an extensive and ambitious investment plan to upgrade our mobile network and lead in quality of service for our customers. Recognition of this commitment was received in 2H21, when NOS became the first operator in Portugal to receive the "Fastest Mobile Network" distinction from Ookla® and after this leading international speedtest platform had already recognized NOS as having the best mobile coverage in Portugal.
The penetration of Pay TV services and continued growth in the customer base reflect the importance consumers place on our TV value proposition. We focus on continuous innovation of features and content line-up, to provide the best entertainment with an integrated viewing experience across all platforms and technologies. In 4Q21, we reinforced our offer with the launch of NVIDIA TV SHIELD, the best Android TV set top box in the market, with faster and more intelligent navigation and search functionalities and a combination of unique features such as a cinema-like sound and image experience using Dolby Vision Atmos and 4KHDR technology. This new set top box is also more sustainable, as it may be installed by the customer without the need for a technician visit and is delivered in NOS' first ecologic self-installation kit in environmentally conscious packaging and eliminating single-use plastics. We further enhanced our TV and content offer in 4Q21 with the launch of the NOS TV+ service enabling access to the NOS TV App over a subscriber's own Apple TV or Android TV box and providing a premium TV experience with simple and fast access to a broad range of channels, many of which in Full HD1 and Videoclub movies in 4K.
NOS' positioning for the B2B segment is to be the leading partner for transformation of Portuguese companies. Focused on developing and implementing IT related services, with emphasis on cloud and SaaS solutions, in 4Q21 we also recorded relevant growth in revenues from project consultancy and license and equipment sales. Reinforcing this commercial proposition and supported by our strong network of strategic partnerships, NOS was awarded Cisco Gold partner status in the last months of the year, and as such is qualified to sell, install, and support Cisco solutions in Portugal. NOS also became the first entity to provide edge computing capabilities with the 3 leading cloud partners, through its strategic partnership with Microsoft. NOS also joined the Microsoft Partner Alliance in Portugal, which aims to ensure that skills and opportunities are channelled to create diversified environments, prioritise sustainable business decisions, and develop responsible and ethical technologies.
In November, NOS and a Portuguese beverage company, SUMOL+COMPAL presented the first 5G enabled factory in Portugal, pioneering the use of AR over 5G in an industrial context. With full 5G coverage, the factory now possesses technological solutions that significantly enhance operational efficiency and productivity. The two partner companies are using 5G to implement innovative approaches, namely, to connect all production lines to obtain real time information about the production process and to use augmented reality applied to preventive maintenance for the machines on the Tetra Pak filling line.
NOS' 5G fund reinforced its collaboration with a Portuguese healthcare start-up, "Knok", which develops end to end integrated telemedicine solutions. The Knok platform integrates video
consultations, tools to support initial triage of patients and remote monitorization over a single system. Patients can explain symptoms, share clinical information with the doctor and hold video appointments with maximum security and over an intuitive, integrated platform. This business model will be a prime beneficiary of 5G technology with high debit data capacity and almost zero latency, thus enabling better access to health care, even in more remote parts of the country.
| Table 2. | ||||||
|---|---|---|---|---|---|---|
| Operating Indicators ('000) | 4020 | 4021 | 4021/4020 | 2020 | 2021 | 2021 / 2020 |
| $Cinema^{(1)}$ | ||||||
| Revenue per Ticket (Euros) | 5.2 | 5.6 | 8.1% | 5.3 | 5.5 | 3.3% |
| Tickets Sold - NOS | 306.6 | 1.631.1 | 431.9% | 2.310.4 | 3.450.7 | 49.4% |
| Tickets Sold - Total Portuguese Market (2) | 505.0 | 2.586.8 | 412.3% | 3.802.7 | 5.468.9 | 43.8% |
| Screens (units) | 208 | 208 | 0.0% | 208 | 208 | 0.0% |
(1) Portuguese Operations
(2) Source: ICA - Portuguese Institute For Cinema and Audiovisuals
As in previous quarters, NOS' cinema exhibition activity recorded a significant increase in box-office sales to 1.631 million tickets, up 432% in comparison with 4Q20, driven by less demanding social distancing rules, a more extensive line-up of blockbuster movies being launched and a return to more normal exhibition times. This was the best quarter since the pandemic first began. The most popular films in 4Q21 were Spider-Man: No Way Home, No Time To Die, Dune, Venom - Let There Be Carnage, Eternals, which together represented almost 60% of overall ticket sales in 4Q21. NOS also launched a number of promotional campaigns to promote loyalty and cinema going with initiative such as a popcorn gift card which entitles customers to free popcorn for the whole season. Of the top 10 blockbusters exhibited during the quarter, 5 were distributed by NOS Audiovisuais, which maintained a leading market position with a more than 50% share of movie distribution. The pipeline of movies for the coming months is encouraging and should be supportive of a continued recovery in this operation.
SBTi target validation - NOS reinforced its commitment to the urgency of fighting climate change by submitting its Science Based Targets for the first time and which were subsequently validated by SBTi in December 2021. With these new targets, NOS has increased the ambition of climate goals to reduce scope 1 and 2 reduction targets to 90% by 2030 (80% by 2025) and to reduce scope 3 emissions by 30% by 2030, both of which with 2019 as a base year. To have GHG reduction
targets validated by this internationally renowned organization is a significant milestone in NOS' strategic ambition to be a leading reference in sustainability in Portugal and across the international telecom sector and an active agent for digital and environmental transition. NOS is currently one of only 4 companies in Portugal to have SBTi validated targets.
NOS also received independent evaluation of its sustainability performance in 4Q21, with the announcement of the most recent of ESG ratings and scores from leading international ESG agencies namely:
CDP - For the second year running, NOS was evaluated by CDP - Disclosure, Insight, Action, maintaining its' A- rating and Leadership status. NOS performance was above that of the average of both European companies and of the Media, Telecommunications and Data Centre Services sector, respectively with B ratings. In 2021, NOS received the maximum score in a number of evaluation parameters, in particular in relation to initiatives to reduce $CO2$ emissions, governance, inventory of value chain emissions, risk management and also business strategy and financial planning.
Moody's ESG Solutions - In the 2021 ESG Assessment, NOS improved its sustainability performance compared to 2020, with an overall score of 63 and an Advanced rating, representing the sixth highest score in the European telecoms sector. NOS' score represents an increase of three points compared to 2020, the highlight being an improvement in performance in the Environmental and Social areas, with scores of 69 and 66 respectively, well above the sector averages of 46 points in both areas, a recognition of the best practices and initiatives implemented across the organization. In the Governance area, NOS received a score of 53, compared to an average for the sector of 48.
S&P Global CSA - NOS was invited to participate for the first time in the S&P Global Corporate Sustainability Assessment (CSA) having achieved an overall score of 53/100. NOS scored higher in all pillars of the Evaluation - Environment, Social and Governance, however it is worth highlighting NOS' result for Environmental performance with a score of 75/100.
Bloomberg GEI - NOS was recognized for excellence in Gender Equality practices and included in the Bloomberg Gender-Equality Index for 2022. This is the first time NOS participated in this index, which evaluates gender equality policies and practices within listed companies, as well as transparency of the responses provided. Out of 400 companies evaluated, NOS achieved a global score of 64.7%.
NOS participated in the "Portugal Smart Cities Summit" in November, a leading event dedicated to showcasing the most relevant developments and use cases for making our urban areas more intelligent, efficient, and sustainable. NOS demonstrated uses cases in a number of areas such as
environmental protection, mobility solutions, energy efficiency, health and education, all areas in which NOS' technological solutions, accelerated by 5G and together with specialist partners in each field, are set to provide significant contributions towards sustainable digital transformation.
NOS continued to reinforce autonomous installation processes for set top boxes and routers with customers no longer needing a technician on premise to set-up equipment and activate services, contributing to carbon footprint reduction across the value chain. In addition, the packaging of the self-installation kits has been redesigned to incorporate 100% recycled paper and colour printed with only the essential product specifications, using eco-design approved water-based inks.
The Consolidated Financial Statements for 2021 have been audited.
| Table 3. | ||||||
|---|---|---|---|---|---|---|
| Profit and Loss Statement | 4Q20 | 4Q21 | 4Q21/4Q20 | 2020 | 2021 | 2021 / 2020 |
| (Millions of Euros) | ||||||
| Operating Revenues | 354.3 | 385.4 | 8.8% | 1,367.9 | 1,430.3 | 4.6% |
| Telco | 350.2 | 372.3 | 6.3% | 1,345.7 | 1,401.5 | 4.1% |
| Consumer Revenues | 253.4 | 257.9 | 1.8% | 982.0 | 1,001.5 | 2.0% |
| Business Revenues | 79.6 | 90.8 | 14.2% | 289.2 | 316.9 | 9.6% |
| Wholesale and Others | 17.3 | 23.5 | 36.1% | 74.5 | 83.1 | 11.5% |
| Audiovisuals & Cinema (1) | 11.9 | 24.9 | 108.5% | 53.8 | 67.0 | 24.6% |
| Others and Eliminations | (7.8) | (11.8) | 50.1% | (31.6) | (38.2) | 20.9% |
| Operating Costs Excluding D&A | (222.3) | (245.1) | 10.3% | (764.7) | (812.3) | 6.2% |
| Direct Costs | (115.2) | (131.6) | 14.2% | (390.1) | (440.2) | 12.8% |
| Non-Direct Costs (2) | (107.1) | (113.5) | 6.0% | (374.6) | (372.2) | $(0.6\%)$ |
| EBITDA (3) | 132.0 | 140.2 | 6.3% | 603.2 | 618.0 | 2.5% |
| EBITDA Margin | 37.3% | 36.4% | (0.9 pp ) | 44.1% | 43.2% | (0.9 pp ) |
| Telco | 123.7 | 126.8 | 2.5% | 573.6 | 574.4 | 0.1% |
| EBITDA Margin | 35.3% | 34.1% | (1.2pp) | 42.6% | 41.0% | (1.6 pp ) |
| Cinema Exhibition and Audiovisuals | 8.3 | 13.4 | 61.4% | 29.6 | 43.6 | 47.1% |
| EBITDA Margin | 69.9% | 54.1% | (15.8 pp ) | 55.1% | 65.0% | 9.9 pp |
| Depreciation and Amortization | (104.6) | (106.7) | 2.0% | (409.8) | (419.5) | 2.3% |
| (Other Expenses) / Income | (2.2) | (2.4) | 12.9% | (56.0) | (9.8) | $(82.4\%)$ |
| Operating Profit (EBIT) (4) | 25.2 | 31.1 | 23.4% | 137.3 | 188.7 | 37.4% |
| Share of profits (losses) of associates and joint ventures | 0.0 | (1.1) | (4017.8%) | (9.1) | 3.6 | (139.6%) |
| (Financial Expenses) / Income | (10.1) | (9.9) | (1.9% | (26.6) | (36.6) | 37.5% |
| Leases Financial Expenses | (6.7) | (6.3) | $(6.0\%)$ | (11.5) | (25.6) | 123.0% |
| Funding & Other Financial Expenses | (3.4) | (3.6) | 6.1% | (15.2) | (11.0) | (27.3%) |
| Income Before Income Taxes | 15.2 | 20.1 | 32.5% | 101.6 | 155.6 | 53.2% |
| Income Taxes | (2.1) | 3.9 | $(288.8\%)$ | (16.3) | (11.8) | (27.9% |
| Net Income Before Associates & Non-Controlling Interests | 13.1 | 25.2 | 92.5% | 94.3 | 140.3 | 48.7% |
| Income From Continued Operations | 13.1 | 24.0 | 83.4% | 85.2 | 143.9 | 68.8% |
| o.w. Attributable to Non-Controlling Interests | (0.2) | 0.1 | (157.9%) | 0.4 | 0.3 | (14.3%) |
| Discontinued Operations | 0.0 | 0.0 | n.m. | 6.4 | 0.0 | $(100.0\%)$ |
| Net Income | 12.9 | 24.1 | 87.4% | 92.0 | 144.2 | 56.7% |
(1) includes cinema operations in Mozambique.
(2) Non-Direct Costs Include Commercial & Customer Related Costs and Operating & Structure Costs
(3) EBITDA = Operating Profit + Depreciation and Amortization + Integration Cos
Consolidated Revenues increased 8.8% in 4Q21 to 385.4 million euros reflecting quarter after quarter improvement in sequential yoy growth rates. This performance was led by ongoing robust performance in underlying telco revenues and strong recovery in Audiovisuals and Cinema Revenues as the year progressed.
In the core Telco division, Revenues grew by 6.3% in the 4Q21 to 372.3 million euros having recorded sequential improvement in yoy growth from -0.8% in 1Q21, 5.3% in 2Q21, and 4.1% in 3Q21, reflecting the clearly resilient nature of telecoms. For the full year, Telco Revenues grew by 4.1% yoy to 1,401.5 million euros and were already 1.5% higher than pre-pandemic levels of 1,381.4 million euros in 2019. In 4Q21, growth of 1.8% in Consumer Revenues was led by strong fixed residential customer revenue growth, more than offsetting the ongoing decline in revenues from legacy satellite (DTH) services which are being progressively replaced with fixed access service due to the continued and extensive deployment of next generation networks. The continued take up of convergent offers and inclusion of additional services in a single residential bill is one of the key drivers behind the good performance in the Consumer segment, combined with a more targeted and proactive management of the value mix and end-to end customer experience. Within the B2B division, revenues posted another strong quarter up by 14.2% yoy to 90.8 million euros, led by continued award of new data and IT contracts which are also generating upfront revenues from equipment and software license sales, primarily in the larger corporate space. Although the latter typically carry lower margins, they are an important element of NOS' integrated commercial approach as the leading partner for business transformation, aggregating all communications, consultancy and integration solutions supported by partnerships with key IT and data suppliers. Although Roaming Revenues, in and out, continued to post yoy improvement of more than 60% yoy in 4Q21 and of 9% for FY21, they are still 43% lower than 2019 levels. However, the impact of Roaming Revenues is marginal in NOS Telco operation weighing a little over 1% of total Telco Revenues in 2021.
In the Cinema and Audiovisuals division, 4Q21 Revenues increased by 108.5% to 24.9 million euros reflecting the return of spectators to cinema theatres after relaxation of social distancing restrictions, the premiere of more block buster movies and the return to normal exhibition hours. Revenues derived from Cinema distribution in our Audiovisuals division also benefitted from the increased cinema activity as it is the leading movie distributor in the Portuguese market, with 5 of the top 10 films distributed by NOS in 4Q21. Full year Revenues for 2021 grew by 24.6% to 67.0 million euros and, although still significantly lower than 2019 (-43.6%), in 4Q21 were just 18% below the levels of 4Q19, reflecting the significant sequential recovery from -62.3% in 1Q21 compared to 1Q19.
Consolidated EBITDA grew by 6.3% in 4Q21 to 140.2 million euros resulting from a 2.5% increase in Telco EBITDA to 126.8 million euros and an increase of 61.4% in Audiovisuals and Cinema EBITDA
driven by the recovery in box-office sales. As in the previous quarter, the percentual increase in Telco EBITDA, although greater than that of underlying customer revenues, was diluted by the high contribution of lower margin sales from software licensing and projects in the Business segment. The costs associated with these revenues are one of the main drivers of the 14.2% increase in Direct Costs to 131.6 million euros together with the increased volume of royalty costs from cinema ticket sales. Non-Direct costs were 6.0% higher in 4Q21, the most important contributor to this increase being higher marketing and publicity spend on the year end Christmas and 5G launch campaigns as well as the close to return to normal in the cinema business. Other operating cost buckets posted a relatively normal trajectory.
Consolidated Net Income increased by 87.5% to 24.1 million euros reflecting the continued improvement in EBITDA, and a relatively normal yoy performance in other cost items below EBITDA, with the exception of income tax provision which had a positive impact in the quarter of 3.9 million euros due to estimated tax incentives booked in the quarter.
| Table 4. | ||||||
|---|---|---|---|---|---|---|
| CAPEX (Millions of Euros) (1) | 4Q20 | 4Q21 | 4Q21/4Q20 | 2020 | 2021 | 2021 / 2020 |
| Total CAPEX Excluding Leasing Contracts, Spectrum license | ||||||
| & Other Contractual Rights | 115.4 | 112.3 | (2.7%) | 384.9 | 422.3 | 9.7% |
| Telco | 110.8 | 105.6 | $(4.7\%)$ | 364.1 | 405.6 | 11.4% |
| % of Telco Revenues | 31.6% | 28.4% | (3.3 pp ) | 27.1% | 28.9% | 1.9 PP |
| o.w. Technical CAPEX | 66.2 | 70.9 | 7.1% | 214.2 | 255.5 | 19.3% |
| % of Telco Revenues | 18.9% | 19.1% | 0.2 pp | 15.9% | 18.2% | 2.3 pp |
| Baseline Telco | 37.7 | 39.4 | 4.5% | 139.7 | 142.6 | 2.1% |
| Network Expansion / Substitution and Integration | ||||||
| Projects and Others | 28.5 | 31.5 | 10.6% | 74.5 | 112.9 | 51.6% |
| o.w. Customer Related CAPEX | 44.6 | 34.7 | (22.3%) | 149.9 | 150.1 | 0.2% |
| % of Telco Revenues | 12.7% | 9.3% | (3.4 pp ) | 11.1% | 10.7% | (0.4 pp ) |
| Audiovisuals and Cinema Exhibition | 4.6 | 6.7 | 46.5% | 20.8 | 16.7 | $(19.9\%)$ |
| Leasing Contracts & Other Contractual Rights | 59.1 | 11.0 | $(81.4\%)$ | 94.5 | 36.2 | (61.7%) |
| Spectrum licenses | 0.0 | 151.3 | n.a. | 0.0 | 151.3 | n.a. |
| Total Group CAPEX | 174.5 | 274.5 | 57.4% | 479.4 | 609.8 | 27.2% |
(1) CAPEX = Increase in Tangible and Intangible Fixed Assets, Contract Costs and Rights of Use
Technological leadership is a key driver of long-term value creation and is a core strategic objective for NOS. As shared in previous quarters, NOS is driving an accelerated and integrated Next Generation network deployment and modernization programme with FttH in fixed and 5G in mobile as a platform for sustained differentiation in customer experience. By the end of 4Q21, our fixed
Gigabit network already covered 5.123 million households and of these, more than 53% covered with FttH. In mobile, we have already launched 5G commercial services with significant populational coverage in main towns. This implies a front-loaded investment schedule, already initiated in 2021, peaking in 2022, and coming down rapidly to normalized levels of technical investment by 2023. Our commitment to coverage, quality, and robustness of our technological infrastructure is being achieved in the fastest, most economically efficient and environmentally sustainable way possible. We are also exploring partnerships and investment-sharing opportunities in addition to own build, as a means of avoiding duplication and waste.
These trends in technical CAPEX are evident in 2021, in particular in the latter half with the launch of 5G deployment. CAPEX related with network expansion, substitution and integration projects in 2021 of 112.9 million euros was 51.6% higher yoy, and in 4Q21 amounted to 31.5 million euros.
Baseline Technical CAPEX amounted to 39.4 million euros in 4Q21 and to 142.6 million euros in full year 2021, up by just 2.1% in comparison with 2020. Customer CAPEX in 4Q21 was down by 22.3% yoy and overall Customer related CAPEX for FY2021 was just 0.2% higher yoy at 150.1 million euros, reflecting more efficient and effective commercial activity and optimization of CPE investments and technical installation costs. Greater weight of digital sales and self-installation processes are also contributing to keep these investments at bay, although still representing a relatively small proportion of sales and installation processes due to the profile of the Portuguese market and consumer preferences. Total Investment was impacted by the 151 million euros cash out related with payment of the spectrum won in 4Q21, with the close of the 5G auction process. NOS paid for the spectrum license in full, benefitting from an up-front payment discount of approximately 8%.
In the Audiovisuals and Cinema division, CAPEX of 16.7 million euros in 2021 was 19.9% below that of 2020 and even lower in comparison with pre-pandemic levels of 29.9 million euros. In 4Q21, CAPEX increased in comparison with previous quarters to 6.7 million euros, and by 46.7% yoy, due to the continued recovery in operating activity.
| Table 5. | ||||||
|---|---|---|---|---|---|---|
| Cash Flow (Millions of Euros) | 4Q20 | 4Q21 | 4Q21/4Q20 | 2020 | 2021 | 2021 / 2020 |
| EBITDA | 132.0 | 140.2 | 6.3% | 603.2 | 618.0 | 2.5% |
| Total CAPEX Excluding Leasings, Spectrum License & Other Contractual Rights |
(115.4) | (112.3) | (2.7%) | (384.9) | (422.3) | 9.7% |
| EBITDA - Total CAPEX Excluding Leasings, Spectrum License & Other Contractual Rights |
16.6 | 28.0 | 68.1% | 218.3 | 195.6 | $(10.4\%)$ |
| % of Revenues | 4.7% | 7.3% | 2.6 pp | 16.0% | 13.7% | (2.3 pp ) |
| Non-Cash Items Included in EBITDA - CAPEX and Change in Working Capital |
(0.4) | (1.5) | 321.1% | (15.0) | (5.9) | $(60.8\%)$ |
| Leasings (Capital & Interest) (1) | (26.4) | (28.4) | 7.8% | (75.7) | (99.0) | 30.8% |
| Operating Cash Flow | (10.1) | (2.0) | $(80.0\%)$ | 127.5 | 90.7 | $(28.9\%)$ |
| Interest Paid | (13.2) | (0.7) | (94.7%) | (11.8) | (10.9) | $(7.9\%)$ |
| Income Taxes Paid | 0.1 | 14.5 | 12120.3% | (33.9) | (0.7) | $(97.9\%)$ |
| Disposals | 0.0 | 0.2 | n.a. | 374.4 | 1.8 | (99.5%) |
| Other Cash Movements (2) | (1.0) | (1.0) | 6.3% | (11.0) | (9.4) | (14.7%) |
| Spectrum licenses | 0.0 | (151.3) | n.a. | 0.0 | (151.3) | n.a. |
| Total Free Cash-Flow Before Dividends, Financial Investments and Own Shares Acquisition |
(24.2) | (140.3) | 480.6% | 445.3 | (79.8) | (117.9%) |
| Financial Investments | 0.2 | (0.6) | (505.2%) | 2.4 | (0.4) | (116.7%) |
| Acquisition of Own Shares | (2.4) | 0.0 | $(100.0\%)$ | (5.7) | (2.1) | $(63.8\%)$ |
| Dividends | 0.0 | 0.0 | (142.5) | (142.4) | $(0.1\%)$ | |
| Free Cash Flow | (26.4) | (141.0) | 434.0% | 299.4 | (224.6) | $(175.0\%)$ |
| Debt Variation Through Financial Leasing, Accruals & Deferrals & Others |
(3.4) | (2.9) | $(14.9\%)$ | (7.7) | (5.0) | (35.1%) |
| Change in Net Financial Debt | 29.8 | 143.9 | 382.8% | (291.7) | 229.7 | (178.7%) |
(1) Includes Long Term Contracts.
(2) Includes Cash Restructuring Payments and Other Cash Movements
In 4Q21, EBITDA - total CAPEX excluding leases, Spectrum License & Other Contractual Rights increased by 68.1% yoy to 28 million euros as a result of higher EBITDA. Other items impacting cash flow variations were a positive cash movement in income taxes in 4Q21 due to a recovery of excessive taxes paid in the previous year, and the payment of the 5G license. With the end of the 5G auction in 4Q21, NOS paid, in full, 151.3 million euros for the spectrum acquired, benefitting from an up-front payment discount of approximately 8%.
For FY21, the yoy decline in Total Free Cash Flow before dividends, Financial Investments and Own Shares should be adjusted of the non-recurrent cash-in of 374.3 million euros, related with the tower sale deal to Cellnex and by the cash-out relating to the license spectrum payment in 4Q21 of 151.3 million euros. After adjusting for these items, Total Free Cash Flow before dividends, Financial Investments and Own Shares increased by 1% yoy to 71.5 million euros for FY21.
| Table 6. | |||
|---|---|---|---|
| Balance Sheet (Millions of Euros) | 2020 | 2021 | 2021 / 2020 |
| Non-current Assets | 2,557.5 | 2,752.9 | 7.6% |
| Current Assets | 615.2 | 506.5 | (17.7%) |
| Total Assets | 3,172.6 | 3,259.4 | 2.7% |
| Total Shareholders' Equity | 956.2 | 963.0 | 0.7% |
| Non-current Liabilities | 1,487.8 | 1,406.4 | $(5.5\%)$ |
| Current Liabilities | 728.6 | 890.0 | 22.1% |
| Total Liabilities | 2,216.4 | 2,296.4 | 3.6% |
| Total Liabilities and Shareholders' Equity | 3,172.6 | 3,259.4 | 2.7% |
| Table 7. | |||
|---|---|---|---|
| Net Financial Debt (Millions of Euros) | 2020 | 2021 | 2021 / 2020 |
| Short Term | 100.8 | 235.7 | 133.9% |
| Medium and Long Term | 854.5 | 806.9 | $(5.6\%)$ |
| Total Debt | 955.3 | 1.042.6 | 9.1% |
| Cash and Short Term Investments | 153.3 | 10.9 | (92.9%) |
| Net Financial Debt (1) | 802.0 | 1,031.7 | 28.6% |
| Net Financial Debt / EBITDA after lease payments (last 4 quarters) (2) | 1.52x | 1.99x | 0.31 pp |
| Leasings and Long Term Contracts | 575.3 | 534.0 | $(7.2\%)$ |
| Net Debt | 1,377.4 | 1,565.7 | 13.7% |
| Net Debt / EBITDA | 2.28x | 2.53x | 0.11 pp |
| Net Financial Gearing (3) | 59.0% | 61.9% | 4.9% |
(1) Net Financial Debt = Borrowings – Leasings - Cash
(2) EBITDA After Lease Payments = EBITDA - Lease Cash Payments (Capital & Interest)
(3) Net Financial Gearing = Net Debt / (Net Debt + Total Shareholders' Equity).
At the end of FY21, Total Net Debt, including Leasings and Long-Term Contracts (according to IFRS16) amounted to 1,565.7 million euros. Net Financial Debt stood at 1,031.7 million euros with a cash and short-term investment position on the balance sheet of 10.9 million euros. At the end of FY21, NOS also had 217.5 million euros in unissued commercial paper programmes.
Net Financial Debt / EBITDA After Lease Payments (last 4 quarters) now stands slightly below 2.0x. NOS targets a leverage ratio in the range of 2x Net Financial Debt / EBITDA after lease payments, which represents a solid and conservative capital structure that NOS is committed to maintain.
The all-in average cost of debt stood at 1.3 % for 4Q21, which compares with 1.6% in 4Q20. For FY21, NOS' all-in average cost of debt stood at 1.4%.
The average maturity of debt at the end of FY21 was 2.2 years. Taking into account loans issued at a fixed rate and interest rate hedging operations in place, as at 31 December 2021, the proportion of NOS' issued debt paying interest at a fixed rate was approximately 100%.
On 3 March 2022, the Board of Directors approved a proposal to the next AGM of a dividend payment of 27.8c per share, in line with last year, representing a dividend yield of approximately 8.1%. Upon payment of this dividend, NOS will still have a very conservative capital structure, remaining close to its target net debt ratio of 2x NFD / EBITDA AL, albeit temporarily higher due to the one-off 5G license payment in 4Q21. NOS remains solidly positioned to meet future investments and committed to distribute an attractive level of dividends whilst maintaining a strategic focus on preserving a strong capital structure to support continued delivery of sustainable value creation for shareholders.
| Table 8. | ||||||||
|---|---|---|---|---|---|---|---|---|
| Operating Indicators ('000) | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 |
| Telco (1) | ||||||||
| Homes Passed | 4,639.5 | 4,689.9 | 4,796.0 | 4,806.7 | 4,909.9 | 4,987.5 | 5,078.5 | 5,123.3 |
| Total RGUs | 9,695.3 | 9,747.4 | 9,871.8 | 9,919.1 | 9,902.2 | 10,000.2 | 10,147.1 | 10,306.4 |
| o.w. Consumer RGUs | 8,212.6 | 8,243.8 | 8,351.9 | 8,390.8 | 8,370.4 | 8,459.8 | 8,591.2 | 8,725.7 |
| o.w. Business RGUs | 1,482.7 | 1,503.7 | 1,520.0 | 1,528.3 | 1,531.7 | 1,540.4 | 1,555.9 | 1,580.7 |
| Mobile | 4,847.1 | 4,869.9 | 4,972.0 | 5,007.8 | 4,992.1 | 5,084.9 | 5,209.9 | 5,349.9 |
| Pre-Paid | 1,983.2 | 1,957.7 | 1,998.1 | 1,991.7 | 1,937.0 | 1,957.5 | 2,004.4 | 2,058.8 |
| Post-Paid | 2,863.9 | 2,912.2 | 2,973.9 | 3,016.1 | 3,055.1 | 3,127.3 | 3,205.5 | 3,291.1 |
| Pay TV Fixed Access (2) | 1,347.8 | 1,351.2 | 1,360.2 | 1,362.7 | 1,363.8 | 1,370.8 | 1,382.9 | 1,394.2 |
| Pay TV DTH | 283.7 | 283.4 | 282.2 | 279.7 | 275.7 | 268.7 | 260.6 | 252.8 |
| Fixed Voice | 1,756.7 | 1,766.7 | 1,769.3 | 1,774.2 | 1,770.9 | 1,770.4 | 1,775.7 | 1,782.5 |
| Broadband | 1,424.5 | 1,439.8 | 1,451.5 | 1,457.6 | 1,461.8 | 1,466.5 | 1,478.2 | 1,485.8 |
| Others and Data | 35.5 | 36.4 | 36.5 | 37.2 | 38.0 | 39.0 | 39.8 | 41.2 |
| 3,4&5P Subscribers (Fixed Access) | 1,206.3 | 1,213.5 | 1,224.9 | 1,230.4 | 1,236.0 | 1,247.7 | 1,270.5 | 1,288.5 |
| % 3,4&5P (Fixed Access) | 89.5% | 89.8% | 90.1% | 90.3% | 90.6% | 91.0% | 91.9% | 92.4% |
| Convergent + Integrated RGUs | 4,754.6 | 4,823.9 | 4,890.7 | 4,956.0 | 5,002.0 | 5,060.5 | 5,146.3 | 5,231.2 |
| Convergent + Integrated Customers | 942.3 | 957.5 | 967.6 | 976.7 | 985.8 | 993.8 | 1,005.8 | 1,020.6 |
| Fixed Convergent + Integrated Customers as % of Fixed Access Customers | 60.8% | 61.6% | 62.0% | 62.4% | 62.9% | 63.3% | 63.8% | 64.4% |
| % Convergent + Integrated Customers | 57.8% | 58.6% | 58.9% | 59.5% | 60.1% | 60.6% | 61.2% | 62.0% |
| Residential ARPU / Unique Subscriber With Fixed Access (Euros) | 44.4 | 42.4 | 43.5 | 44.3 | 43.7 | 44.4 | 45.2 | 46.0 |
| Net Adds | ||||||||
| Homes Passed | 27.0 | 50.4 | 106.1 | 10.7 | 103.2 | 77.6 | 91.0 | 44.7 |
| Total RGUs | 19.2 | 52.1 | 124.4 | 47.3 | (16.9) | 98.1 | 146.9 | 159.3 |
| o.w. Consumer RGUs | 19.2 | 31.2 | 108.1 | 38.9 | (20.3) | 89.4 | 131.4 | 134.5 |
| o.w. Business RGUs | (0.0) | 21.0 | 16.3 | 8.3 | 3.4 | 8.7 | 15.5 | 24.8 |
| Mobile | (4.0) | 22.8 | 102.1 | 35.7 | (15.7) | 92.8 | 125.0 | 140.0 |
| Pre-Paid | (25.0) | (25.5) | 40.4 | (6.5) | (54.7) | 20.5 | 46.9 | 54.4 |
| Post-Paid | 21.0 | 48.4 | 61.7 | 42.2 | 39.0 | 72.3 | 78.1 | 85.6 |
| Pay TV Fixed Access | 3.1 | 3.4 | 9.0 | 2.5 | 1.0 | 7.0 | 12.1 | 11.3 |
| Pay TV DTH | 1.1 | (0.2) | (1.2) | (2.6) | (4.0) | (7.0) | (8.1) | (7.8) |
| Fixed Voice | 8.0 | 10.0 | 2.6 | 4.8 | (3.3) | (0.5) | 5.3 | 6.8 |
| Broadband | 10.2 | 15.3 | 11.8 | 6.1 | 4.2 | 4.7 | 11.7 | 7.6 |
| Others and Data | 0.7 | 0.8 | 0.1 | 0.7 | 0.8 | 1.0 | 0.8 | 1.4 |
| 3,485P Subscribers (Fixed Access) | 5.7 | 7.3 | 11.4 | 5.5 | 5.5 | 11.8 | 22.8 | 17.9 |
| Convergent + Integrated RGUs | 50.1 | 69.3 | 66.8 | 65.3 | 45.9 | 58.6 | 85.8 | 84.9 |
| Convergent + Integrated Customers | 11.6 | 15.2 | 10.1 | 9.1 | 9.0 | 8.1 | 12.0 | 14.8 |
(1) Portuguese Operations.
(2) Fixed Access Subscribes include customers served by the HFC, FTH and ULL networks and indirect access customers.
Note: in 1Q21, 4Q20 Post-Paid mobile subscribers have been restated to adjust
| Table 9. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Profit and Loss Statement | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 2020 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 2021 |
| (Millions of Euros) | ||||||||||
| Operating Revenues | 345.4 | 321.3 | 346.9 | 354.3 | 1,367.9 | 337.4 | 341.0 | 366.5 | 385.4 | 1,430.3 |
| Telco | 332.9 | 319.9 | 342.7 | 350.2 | 1,345.7 | 335.7 | 336.7 | 356.8 | 372.3 | 1,401.5 |
| Consumer Revenues | 244.0 | 236.3 | 248.3 | 253.4 | 982.0 | 244.0 | 247.0 | 252.5 | 257.9 | 1,001.5 |
| Business Revenues | 71.9 | 67.0 | 70.7 | 79.6 | 289.2 | 73.2 | 73.4 | 79.5 | 90.8 | 316.9 |
| Wholesale and Others | 17.0 | 16.6 | 23.7 | 17.3 | 74.5 | 18.5 | 16.4 | 24.8 | 23.5 | 83.1 |
| Audiovisuals & Cinema (1) | 21.8 | 8.9 | 11.1 | 11.9 | 53.8 | 9.7 | 13.4 | 19.1 | 24.9 | 67.0 |
| Others and Eliminations | (9.3) | (7.6) | (6.9) | (7.8) | (31.6) | (8.0) | (9.1) | (9.4) | (11.8) | (38.2) |
| Operating Costs Excluding D&A | (192.7) | (163.4) | (186.4) | (222.3) | (764.7) | (185.3) | (186.6) | (195.3) | (245.1) | (812.3) |
| Direct Costs | (97.7) | (78.2) | (99.0) | (115.2) | (390.1) | (99.6) | (101.6) | (107.3) | (131.6) | (440.2) |
| Non-Direct Costs (2) | (95.0) | (85.1) | (87.4) | (107.1) | (374.6) | (85.6) | (85.0) | (88.0) | (113.5) | (372.2) |
| EBITDA (3) | 152.7 | 157.9 | 160.6 | 132.0 | 603.2 | 152.2 | 154.4 | 171.1 | 140.2 | 618.0 |
| EBITDA Margin | 44.2% | 49.1% | 46.3% | 37.3% | 44.1% | 45.1% | 45.3% | 46.7% | 36.4% | 43.2% |
| Telco | 141.8 | 152.6 | 155.5 | 123.7 | 573.6 | 143.5 | 144.9 | 159.2 | 126.8 | 574.4 |
| EBITDA Margin | 42.6% | 47.7% | 45.4% | 35.3% | 42.6% | 42.8% | 43.0% | 44.6% | 34.1% | 41.0% |
| Cinema Exhibition and Audiovisuals | 10.9 | 5.3 | 5.1 | 8.3 | 29.6 | 8.7 | 9.5 | 12.0 | 13.4 | 43.6 |
| EBITDA Margin | 50.1% | 58.8% | 46.0% | 69.9% | 55.1% | 89.1% | 85.1% | 62.6% | 54.1% | 65.0% |
| Depreciation and Amortization | (100.5) | (101.2) | (103.6) | (104.6) | (409.8) | (101.4) | (103.4) | (108.0) | (106.7) | (419.5) |
| (Other Expenses) / Income | (45.7) | (3.8) | (4.3) | (2.2) | (56.0) | (4.3) | (1.7) | (1.4) | (2.4) | (9.8) |
| Operating Profit (EBIT) (4) | 6.5 | 52.9 | 52.7 | 25.2 | 137.3 | 46.4 | 49.3 | 61.8 | 31.1 | 188.7 |
| Share of profits (losses) of associates and joint ventures | (8.8) | (0.9) | 0.6 | 0.0 | (9.1) | 2.8 | (0.5) | 2.4 | (1.1) | 3.6 |
| (Financial Expenses) / Income | (5.7) | (5.6) | (5.3) | (10.1) | (26.6) | (9.2) | (8.7) | (8.9) | (9.9) | (36.6) |
| Leases Financial Expenses | (1.6) | (1.6) | (1.6) | (6.7) | (11.5) | (6.5) | (6.4) | (6.3) | (6.3) | (25.6) |
| Funding & Other Financial Expenses | (4.1) | (4.0) | (3.7) | (3.4) | (15.2) | (2.7) | (2.2) | (2.5) | (3.6) | (11.0) |
| Income Before Income Taxes | (8.0) | 46.4 | 48.1 | 15.2 | 101.6 | 40.1 | 40.2 | 55.3 | 20.1 | 155.6 |
| Income Taxes | (2.9) | (7.5) | (4.0) | (2.1) | (16.3) | (9.5) | 3.0 | (9.2) | 3.9 | (11.8) |
| Net Income Before Associates & Non-Controlling Interests | (2.0) | 39.9 | 43.5 | 13.1 | 94.3 | 27.7 | 43.7 | 43.7 | 25.2 | 140.3 |
| Income From Continued Operations | (10.9) | 38.9 | 44.1 | 13.1 | 85.2 | 30.5 | 43.2 | 46.1 | 24.0 | 143.9 |
| o.w. Attributable to Non-Controlling Interests | 0.4 | 0.2 | 0.0 | (0.2) | 0.4 | 0.0 | 0.1 | 0.0 | 0.1 | 0.3 |
| Discontinued Operations | 0.1 | 6.3 | 0.0 | 0.0 | 6.4 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Net Income | (10.4) | 45.3 | 44.1 | 12.9 | 92.0 | 30.5 | 43.3 | 46.1 | 24.1 | 144.2 |
| (1) Includes cinema operations in Mozambique |
()) incudes crienta dperations in modarlicique;
(2) Non-Direct Coats include Commercial & Customer Related Costs and Operating & Structure Costs
(3) Non-Direct Coats include Commercial & Customer Related Costs Peter Costs
| Table 10. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| CAPEX (Millions of Euros) (1) | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 2020 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 2021 |
| Total CAPEX Excluding Leasing Contracts & Other Contractual | ||||||||||
| Rights | 88.2 | 83.5 | 97.8 | 115.4 | 384.9 | 96.0 | 104.1 | 110.0 | 112.3 | 422.3 |
| Telco | 81.8 | 79.4 | 92.0 | 110.8 | 364.1 | 93.2 | 101.2 | 105.7 | 105.6 | 405.6 |
| % of Telco Revenues | 24.6% | 24.8% | 26.9% | 31.6% | 27.1% | 27.8% | 30.0% | 29.6% | 28.4% | 28.9% |
| o.w. Technical CAPEX | 48.5 | 48.0 | 51.6 | 66.2 | 214.2 | 49.0 | 65.4 | 70.2 | 70.9 | 255.5 |
| % of Telco Revenues | 14.6% | 15.0% | 15.0% | 18.9% | 15.9% | 14.6% | 19.4% | 19.7% | 19.1% | 18.2% |
| Baseline Telco | 29.8 | 39.8 | 32.4 | 37.7 | 139.7 | 38.6 | 34.0 | 30.6 | 39.4 | 142.6 |
| Network Expansion / Substitution and Integration Projects and Others |
18.7 | 8.2 | 19.2 | 28.5 | 74.5 | 10.4 | 31.4 | 39.6 | 31.5 | 112.9 |
| o.w. Customer Related CAPEX | 33.4 | 31.4 | 40.5 | 44.6 | 149.9 | 44.2 | 35.8 | 35.5 | 34.7 | 150.1 |
| % of Telco Revenues | 10.0% | 9.8% | 11.8% | 12.7% | 11.1% | 13.2% | 10.6% | 9.9% | 9.3% | 10.7% |
| Audiovisuals and Cinema Exhibition | 6.4 | 4.1 | 5.8 | 4.6 | 20.8 | 2.7 | 3.0 | 4.3 | 6.7 | 16.7 |
| Leasing Contracts & Other Contractual Rights | 11.3 | 12.9 | 11.3 | 59.1 | 94.5 | 2.9 | 9.8 | 12.5 | 11.0 | 36.2 |
| Spectrum licenses | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 151.3 | 151.3 |
| Total Group CAPEX (1) CADEX - Increase in Tangible and Intensible Fixed Accets. Contrast Costs and Rights of Lice. |
99.5 | 96.4 | 109.1 | 174.5 | 479.4 | 98.8 | 114.0 | 122.5 | 274.5 | 609.8 |
| Table 11. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow (Millions of Euros) | 1Q20 | 2Q20 | 3Q20 | 4020 | 2020 | 1Q21 | 2Q21 | 3O21 | 4Q21 | 2021 |
| EBITDA | 152.7 | 157.9 | 160.6 | 132.0 | 603.2 | 152.2 | 154.4 | 171.1 | 140.2 | 618.0 |
| Total CAPEX Excluding Leasings & Other Contractual Rights | (88.2) | (83.5) | (97.8) | (115.4) | (384.9) | (96.0) | (104.1) | (110.0) | (112.3) | (422.3) |
| EBITDA - Total CAPEX Excluding Leasings & Other Contractual Rights |
64.5 | 74.3 | 62.8 | 16.6 | 218.3 | 56.2 | 50.3 | 61.2 | 28.0 | 195.6 |
| % of Revenues | 18.7% | 23.1% | 18.1% | 4.7% | 16.0% | 16.7% | 14.7% | 16.7% | 7.3% | 13.7% |
| Non-Cash Items Included in EBITDA - CAPEX and Change in Working Capital |
(4.5) | 5.0 | (15.1) | (0.4) | (15.1) | (3.2) | 9.3 | (10.4) | (1.5) | (5.9) |
| Leasings (Capital & Interest) (1) | (15.6) | (16.9) | (16.8) | (26.4) | (75.7) | (21.1) | (24.3) | (25.2) | (28.4) | (99.0) |
| Operating Cash Flow | 44.4 | 62.4 | 30.8 | (10.1) | 127.5 | 31.9 | 35.2 | 25.6 | (2.0) | 90.7 |
| Interest Paid | (2.6) | (5.3) | (2.9) | (1.0) | (11.8) | (3.5) | (4.4) | (2.3) | (0.7) | (10.9) |
| Income Taxes Paid | (3.6) | (0.3) | (16.7) | 0.1 | (20.5) | (1.5) | 0.1 | (13.8) | 14.5 | (0.7) |
| Disposals | 0.0 | 0.1 | 374.2 | 0.1 | 374.4 | 0.2 | 1.0 | 0.4 | 0.2 | 1.8 |
| Other Cash Movements (2) | (3.6) | (3.3) | (3.3) | (0.8) | (11.0) | (5.9) | (1.9) | (0.4) | (1.0) | (9.4) |
| Spectrum licenses | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (151.3) | (151.3) |
| Total Free Cash-Flow Before Dividends, Financial Investments and Own Shares Acquisition |
34.6 | 53.5 | 382.1 | (11.6) | 458.6 | 21.2 | 29.9 | 9.4 | (140.3) | (79.8) |
| Financial Investments | 0.0 | 1.8 | 0.3 | 0.2 | 2.3 | 0.2 | 0.2 | (0.2) | (0.6) | (0.4) |
| Acquisition of Own Shares | 0.0 | (2.9) | (0.5) | (2.4) | (5.7) | (2.1) | 0.0 | 0.0 | 0.0 | (2.1) |
| Dividends | 0.0 | 0.0 | (142.5) | 0.0 | (142.5) | 0.0 | (142.4) | 0.0 | 0.0 | (142.4) |
| Free Cash Flow | 34.6 | 52.5 | 239.4 | (13.9) | 312.6 | 19.3 | (112.2) | 9.2 | (141.0) | (224.6) |
| Debt Variation Through Financial Leasing, Accruals & Deferrals & Others |
(3.1) | 0.2 | (1.5) | (3.4) | (7.7) | (0.7) | 0.6 | (2.0) | (2.9) | (5.0) |
| Change in Net Financial Debt | (31.5) | (52.7) | (237.9) | 17.3 | (304.9) | (18.7) | 111.6 | (7.2) | 143.9 | 229.7 |
(1) Includes Long Term Contracts.
(2) Includes Cash Restructuring Payments and Other Cash Movements.
| Table 12. | ||||||||
|---|---|---|---|---|---|---|---|---|
| Net Financial Debt (Millions of Euros) | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 |
| Short Term | 23.1 | 134.8 | 97.2 | 100.8 | 249.6 | 187.3 | 169.3 | 235.7 |
| Medium and Long Term | 1,104.4 | 891.6 | 854.6 | 854.5 | 705.0 | 737.1 | 762.0 | 806.9 |
| Total Debt | 1,127.5 | 1,026.4 | 951.8 | 955.3 | 954.6 | 924.4 | 931.2 | 1,042.6 |
| Cash and Short Term Investments | 65.4 | 17.1 | 180.3 | 153.3 | 171.2 | 29.4 | 43.4 | 10.9 |
| Net Financial Debt (1) | 1,062.1 | 1,009.4 | 771.5 | 802.0 | 783.4 | 895.0 | 887.8 | 1,031.7 |
| Net Financial Debt / EBITDA after lease payments (last 4 quarters) (2) | 1.87x | 1.82x | 1.43x | 1.52x | 1.50x | 1.75x | 1.73x | 1.99x |
| Leasings and Long Term Contracts | 249.0 | 210.8 | 576.4 | 575.3 | 560.4 | 551.5 | 543.5 | 534.0 |
| Net Debt | 1,311.1 | 1,220.2 | 1,347.9 | 1,377.4 | 1,343.8 | 1,446.5 | 1,431.3 | 1,565.7 |
| Net Debt / EBITDA | 2.07x | 1.97x | 2.22x | 2.28x | 2.23x | 2.41x | 2.35x | 2.53x |
| Net Financial Gearing (3) | 56.7% | 57.5% | 58.8% | 59.0% | 57.6% | 61.9% | 60.4% | 61.9% |
| (1) Net Financial Debt = Borrowings - Leasings - Cash _________ . |
rry rechnance book – bonomings – ceuangs – cean
(2) EBITDA After Lease Payments = EBITDA – Lease Cash Payments (Capital & Interest)
(3) Net Financial Gearing = Net Debt / (Net Debt + Total Shareholders' Equity).
This presentation contains forward looking information, including statements which constitute forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and assumptions of our management and on information available to management only as of the date such statements were made. Forward-looking statements include: (a) information concerning strategy, possible or assumed future results of our operations, earnings, industry conditions, demand and pricing for our products and other aspects of our business, possible or future payment of dividends and share buyback program; and (b) statements that are preceded by, followed by or include the words "believes", "expects", "anticipates", "intends", "is confident", "plans", "estimates", "may", "might", "could", "would", and the negatives of such terms or similar expressions. These statements are not quarantees of future performance and are subject to factors, risks and uncertainties that could cause the assumptions and beliefs upon which the forwarding looking statements were based to substantially differ from the expectation predicted herein. These factors, risks and uncertainties include, but are not limited to, changes in demand for the company's services, technological changes, the effects of competition, telecommunications sector conditions, changes in regulation and economic conditions. Further, certain forward looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from the plans, strategy, objectives, expectations, estimates and intentions expressed or implied in such forward-looking statements. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to provide reasons why actual results may differ. You are cautioned not to place undue reliance on any forward-looking statements. NOS is exempt from filing periodic reports with the United States Securities and Exchange Commission ("SEC") pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, as amended. Under this exemption, NOS is required to post on its website English language translations of certain information that it has made or is required to make public in Portugal, has filed or is required to file with the regulated market Eurolist by Euronext Lisbon or has distributed or is required to distribute to its security holders. This document is not an offer to sell or a solicitation of an offer to buy any securities.
Chief Financial Officer: José Pedro Pereira da Costa Phone: (+351) 21 799 88 19
Analysts/Investors: Maria João Carrapato Phone: (+351) 21 782 47 25 / E-mail: [email protected]
Phone: (+351) 21 782 48 07 / E-mail: [email protected]
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| Participant Details: http://emea.directeventreg.com/registration/6150538 |
Participant Details: https://edge.media-server.com/mmc/p/fpokkgsd |
| registering, each participant will be provided with Participan and unique Registrant ID. 2. Call reminders will also be sent to registered participants 3. In the 15/20 minutes prior to call start time, Participants r information provided in the email received at the point of re |
1. Participants must register in advance of the conference ca 1. Participants must register for the webcast, using the link pro 2. In the 15/20 minutes prior to call start time, Participants mus provided above. |
| Encore Replay dial-in details: Available as of 04/03/2022 17:30 BST Until 11/03/2022 17:30 BST |
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| Confirmation Code: 6150538 | |
| Standard International: +44 (0) 3333009785 US Local: +1 (917) 677-7532 Toll Free: +1 (866) 331-1332 UK : Local: +44 (0)8445718951 Toll Free: 08082380667 |
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