ANNUAL REPORT 2018 - O2

[Pages:291]ANNUAL REPORT

2018

O2 ANNUAL REPORT 2018

This version of the Annual Report is a translation from the original which was prepared in the Czech language. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the Czech version of the Annual Report takes precedence over this translation.

3

O2 ANNUAL REPORT 2018

Note: O2 Czech Republic a.s., further below also as "O2 CZ" or "Company". O2 Slovakia, s.r.o., further below also as "O2 Slovakia".

4

O2 ANNUAL REPORT 2018

TABLE OF CONTENTS

1. FINANCIAL AND OPERATING HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2.BASIC INFORMATION AS REQUIRED BY THE CAPITAL MARKETS

UNDERTAKINGS ACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3. BOARD OF DIRECTORS' REVIEW OF BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . 21 4. CORPORATE GOVERNANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 5. FINANCIAL PART. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

5.1. CCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

5.2. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION . . . . 142

6. DECLARATION OF PERSONS RESPONSIBLE FOR THE ANNUAL REPORT . . . . . 214 INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS. . . . . . . . . . . . . . . 216 APPENDIX: REPORT ON RELATIONSHIPS BETWEEN THE CONTROLLING PERSON AND THE CONTROLLED PERSON, AND BETWEEN THE CONTROLLED PERSON AND PERSONS CONTROLLED BY THE SAME CONTROLLING PERSON FOR THE ACCOUNTING PERIOD OF 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229

5

1

FINANCIAL AND OPERATING HIGHLIGHTS

O2 ANNUAL REPORT 2018

1. FINANCIAL AND OPERATING HIGHLIGHTS

Financial data is based on the Consolidated Financial Statements for the year ended 31 December 2018 prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

Financials (in CZKm) Revenues1 EBITDA ? Earnings before depreciation and amortization Operating profit Profit before taxes Profit for the period Total assets Property, plant and equipment Intangible assets Total equity Financial debts (long-term and short-term) Capital expenditure (fixed assets additions)2 Retained earnings ? consolidated

? unconsolidated

2018 37,996 11,163

7,108 6,916 5,448 36,130 6,130 17,164 15,225 10,499 4,417 4,529 6,804

2017 37,709 10,513

7,158 7,098 5,587 34,842 5,636 16,815 15,475 10,486 4,405 3,601 6,010

Operating indicators (at end of period) Fixed voice lines (in thousand) xDSL connections ? retail (in thousand) Pay TV ? O2 TV3 (in thousand) Mobile customers in the Czech Republic (in thousand) Mobile customers in Slovakia (in thousand) Number of employees in O2 Group (as at year-end)

514 699 335 5,038 2,028 5,381

613 729 273 4,938 1,937 5,275

Ratios EBITDA margin (EBITDA/Revenues, in %) Profit after taxes /Revenues (in %) Capital expenditure2/Revenues (in %) ROA (Profit after taxes /Total assets, in %)

29.4

27.9

14.3

14.8

11.6

11.7

15.1

16.0

1) Excluding revenues from non-telecommunications services. 2) 2017: including investments in a 3,700 MHz spectrum licence (CZK 203m), renewal of the existing 450 MHz spectrum licence (CZK 210m)

and O2 brand licence extension (CZK 781m). 3) IPTV and OTT, including O2 TV Multi service (second set-top box with any O2 TV tariff).

TRANSLATION FROM THE CZECH ORIGINAL.

7

ROE (Profit after taxes /Equity, in %) Gross gearing (Financial debts/Total equity, in %) Net debt (Financial debt less Cash and cash equivalents)/EBITDA Profit4 per share ? consolidated

? unconsolidated

Macroeconomic indicators5 CZK/EUR exchange rate ? average CZK/EUR exchange rate ? at end of period

O2 ANNUAL REPORT 2018

35.8

36.1

69.0

67.8

0.72

0.61

18.1

18.4

17.8

17.8

25.64 25.73

26.33 25.54

4) Profit attributable to equity holders of the Company. 5) Source: Czech National Bank web page (FX rates of other currencies).

TRANSLATION FROM THE CZECH ORIGINAL.

8

2

BASIC INFORMATION AS REQUIRED BY THE CAPITAL MARKETS UNDERTAKINGS ACT

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download