euro adhoc: Telekom Austria AG
Strategic management decisions
Telekom
Austria Group Announces an Update of its Cash Use Policy at its Capital Markets
Day (Ad-hoc)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
02.12.2005
Vienna, December 2, 2005: At its Capital Markets Day today, Telekom Austria (VSE: TKA, NYSE: TKA) provided an update on its previously communicated cash use policy. According to todays announcement, Telekom Austria intends to spend about EUR 5 billion on acquisitions, share buybacks and dividends in the period from 2006 to 2009. Cash intended for acquisitions, share buybacks and dividends previously communicated for the period 2005 to 2007 amounted to EUR 3 billion.
Furthermore, Telekom Austria extended its mid-term outlook to include the period until 2009. Telekom Austria expects the compound annual growth rate of Group revenues to be approximately 2% and the compound annual growth rate for Group adjusted EBITDA to be approximately 2.5%. Net Income is expected to grow with a compound annual growth rate of approximately 13%.
The outlook for Full year 2005 announced at the time of the release of the results for the third quarter remains unchanged.
Overview Mid-Term Targets Mid-Term Targets
2005-2009 2003-2007
announced Dec. 2, 2005** announced June 18, 2004
Group Revenue CAGR ~2% >1%
Group adjusted EBITDA CAGR ~2.5% >2%
Net Income CAGR ~13% n.a.
Tangible CAPEX/Revenues <13% <13%
Nebt Debt/Equity <120% <120%
Net Debt/adjusted EBITDA <2.0x <2.0x
Adjusted EBITDA/net
interest expenses >8.0x >8.0x
Average Free
Cash Flow* ~ EUR 1,000 mn ~ EUR 600 mn* Cash Flows from Operations minus CAPEX ** Telekom Austria Group excluding future acquisitions
The full Capital Markets Day presentation, which includes selected historical financial data for Mobiltel for the period Q4 2004 to Q2 2005, is available at: http://www.telekom.at/capital_markets_day
end of announcement euro adhoc 02.12.2005 16:58:00
Further inquiry note:
Peter E. Zydek
Investor Relations Telekom Austria
Tel.: +43 (0) 59059 1-19001
mailto:peter.zydek@telekom.at
Martin Bredl
Public Relations Telekom Austria
Tel: +43 (0) 590591-11001
mailto:martin.bredl@telekom.at
Branche: Telecommunications Equipment
ISIN: AT0000720008
WKN: 555750
Index: WBI, ATX Prime, ATX
Börsen: Wiener Börse AG / official dealing
New York / official dealing