Hellenic Telecommunications Organization S.A.

Ladies and gentlemen, thank you for standing by. I am your chorus call operator. Welcome and thank you for joining the conference call and live webcast to present and discuss the fourth quarter and full year 2025 financial results. All participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mr. Kostas Nebis, CEO of OTEG Group, Mr. Babis Mazarakis, Chief Financial Officer, Mr. Panagiotis Avrilidis, Chief Marketing Officer, Consumer Segment, OTEG Group, and Mr. Evrikos Sarzentis, Head of IR and M&A. Mr. Nebis, you may proceed.

Thank you, and we welcome everyone. Thank you for joining OTEG's fourth quarter and full year 2025 results call. 2005 was another successful year for Rotet. We achieved solely the results that highlight the effectiveness of our strategy and the dedication of our teams. Revenues increased and profitability growth gathered pace, with positive momentum visible both in our fixed and mobile businesses. Throughout the year, our performance has accelerated, and in the final quarter of the year, this momentum became even more pronounced. In the fixed segment, we have seen a return to retail growth after four years, marking a significant inflection point. We accelerated the transition to fiber-to-the-home, leveraging on the ongoing expansion of our FTTH network. In 2025, we delivered record-high FTTH customer additions, and this strong momentum continued throughout the fourth quarter. We have also seen increased utilization of our fiber infrastructure, which is essential for maximizing the returns on our investments. Additionally, the introduction of the new regulatory framework, ending the sale of FTTC products in buildings already connected with FTTH, will further support the shift to fiber connections. This will bring increased customer satisfaction, lower churn, and meaningful cost savings. we remain by a long way the largest fiber network provider in Greece. And the recent strategic acquisition of Sterna Fiber for the USPB project will allow us to extend the F88 coverage in the coming years. At the same time, as the project becomes commercially available, we anticipate it will accelerate the fiber transition process of our customer base. We are particularly pleased that our fiber investments are delivering measurable national impact. In 2025, Greece improved its global fixed broadband ranking by 18 positions based on OUCLAS Speed Test Global Index, primarily driven by our accelerated rollout. This progress is fully aligned with our vision to elevate Greece to the forefront of digitization in Europe. Our RWA service, launched in 2025 to bridge fiber connectivity gaps, has gained strong momentum and is supporting our fixed retail policy trajectory. I would also like to highlight the outstanding performance of our pay-to-view business over the past year. We delivered robust double-digit growth, fueled by our strategic partnership for sports content sharing and the enhanced anti-piracy measures. Additionally, the recent removal of the 10% special tax starting this year supports our confidence for continued momentum as the product becomes even more affordable. Turning to our mobile segment, we continue to deliver outstanding results, further solidifying our market leadership. In the fourth quarter, our mobile business achieved particularly robust growth, accelerating further from the positive performance that we had achieved throughout the year. The ongoing transition from prepaid to postpaid plans, rising demand for high data allowances, and higher adoption of 5G-enabled devices have all contributed to this performance. We are especially proud to operate the only commercially available 5G standalone network in Greece, setting us apart from the competition. Through our 5G SA deployment, Greece now runs fourth globally and first in Europe in 5G standalone speeds. once again based on Ookla Global 5G standalone footprint, reinforcing a structural advantage in mobile. Our commitment to delivering top-quality network performance was further validated this year, as we once again received certifications from both Ookla and Umlaut. These recognitions underscore our ongoing dedication to providing the best network experience in the country. In B2B, OTEN played a pivotal role in advancing digitization. Our ITT business achieved robust double-digit growth and expanded to deliver international projects as well, further reinforcing our leadership in digital transformation and underscoring our commitment to Greece's digital future. We have expanded our services to private and international segments outside Greece to fill the gap once the EU RRF dries out next year. We continue to invest in our core competencies while strengthening at the same time our market differentiation and reinforcing the value that we deliver to our customers. Our non-com services continue to grow, and our energy partnership with Proteria brought new value-added benefits to our households. We introduced the Magenta AI platform, bringing the power of AI to the hands of our customers. a value-enhancing offering that fosters innovation, drives diversification, and further strengthens our commitment to customer satisfaction. Finally, I would like to say a few words about our shareholder remuneration. In 2025, we streamlined our portfolio by selling our Romanian operations, and this has significantly enhanced our annual cash flow generation and enabled us to deliver additional value to our shareholders. Today, we announced our new remuneration policy, which from now on will be based on the actual free cash flow of the previous year instead of the projected free cash flow, marking a significant step forward and towards enhancing visibility, transparency, and flexibility. We are proposing a 22% increase in the dividend and a 16% increase in our sell-by-back program. Our payout is virtually 100% of Africa's flow, clearly demonstrating our commitment to returning value to our shareholders. Beyond our financial performance in 2025, we continue to pursue responsibly our growth. Our strong commitment to sustainability continues to deliver positive results, as reflected in our sustainability statement. marked a major climate milestone since we achieved greenhouse gas neutrality in the group's own operation. Looking ahead, we remain steadfast in our ambition to accelerate growth, drive digital and AI-led transformation, leading gigabit networks with a clear aspiration to become Europe's top digital telco. We are committed to enhancing our operating and production model by leveraging innovative technologies, notably AI, to boost efficiency and performance. We are confident that we will meet the evolving needs of our customers, creating lasting value for all and position Greece among the leaders in digitization in Europe. It is a strong market positioning that gives us the confidence to target a further growth acceleration this year to approximately 3% in EBITDA, despite the challenges in the markets. I will let Babis provide the details for the last quarter of the previous year. Briefly, I would like to emphasize that we continue that growth acceleration, boosted from all angles of our key revenue streams. Babis, to you.

Thank you, Kostas, and welcome to everyone on the call from me as well. Before moving on to the details of the quarter, let me briefly walk you through our new shareholder policy. which we consider a significant step towards delivering attractive and sustainable returns to our shareholders. And this reflects our strengthened financial position and reinforces our clear commitment to delivering value to our shareholders. So, following the completion of Romania's disposal, we distributed an extraordinary dividend of 40 million euros in December 2025. And now, we adopt our new shareholder remuneration policy to usual market practice by basing it on the actual free cash flow generated in the previous year, we call it ex-post free cash flow, instead of the projected free cash flow, the extended free cash flow. This approach provides greater visibility and transparency on performance and remuneration while maintaining the flexibility required to ensure a smooth and sustainable remuneration trajectory. In 2026, we intend to distribute virtually 100% of the actual 2025 free cash flow, including the funds used to undertake the procession of the UNB2 project. Overall, this translates into total shareholder remuneration of €532 million, comprising €355 million in dividends, equivalent to 87.77 euros per share, and 177 million allocated to share buybacks. This represents a 22% year-on-year increase in dividends and a 16% increase in share buybacks compared to 2024. Now, turning on the quarterly analysis. In Greece, we achieved a robust 8.7% increase in revenues, supported by strong performance, efficient solutions, positive trajectory in fixed retail, and accelerated growth in mobile. Retail fixed service revenues increased by 2.6% this quarter, with higher FTTH uptake, the main engine of our fixed retail growth, alongside strong TV growth and rising fixed wireless access adoption. Turning to our FTTH, We had an excellent fourth quarter, adding a record of net 58,000 additions, bringing our total FETH customer base to 567,000. Retail FETH represents 34% of our total broadband base, compared to only 17% a year ago. This continued momentum, together with sustainable wholesale demand for our infrastructure, is driving higher network digitalization, which has increased to 34%, highlighting both the strong demand of our FTTH network and the resilience of our wholesale partnerships. Furthermore, the recently adopted regulatory framework allowing to stop selling FTTC in buildings already connected with FTTH is accelerating the transition to fiber and improving the monetization of our network investments. During the quarter, we continue to make strong progress in the deployment of our fiber to the home network, reaching 2.1 million home paths, in line with our plan and targeting 2.4 million homes paths by 2026. Our fixed retail trends continue to be supported by our FWUA fixed wireless access service, which continues to gain strong momentum with total subscribers reaching 55,000, highlighting the growing contribution of FWA to our broadband business. Our TV segment delivered another robust quarter, with revenue growth maintaining its double-digit momentum. Our customer base continued to expand, increasing by 7.1%, with 19,000 net additions in quarter 4 of 2025, exceeding the same quarter last year, a nice achievement more than a year after the agreement's implementation. We have now reached the anniversary of the benefit from the art to increase. However, the anti-piracy legislation in place and the recent removal of the 10% special tax on pay TV as of January 2026 gives us confidence in further adoption for legitimate platforms. During cloud mobile operations, service revenues grew by 5.2%, accelerating further and delivering the strongest quarterly performance of the year. Our prospect segment continues its cloud growth trajectory, with the customer base expanding by 7.2%, making the ninth consecutive year of growth. This performance was supported by ongoing pre-to-post migrations, and record postpaid customer additions of 60,000 in the quarter. Postpaid customers account for 43% of the total mobile base, compared to 40% a year ago. We are also seeing convenient progress in the adoption of unlimited packages, while 5G device penetration has now increased to 42.2%, compared to only 33.5% in 2024. The slow growth in our mobile operations is underpinned by our network literacy, which continues to be a key one of our competitive strengths. As Jose mentioned, this was once again validated this year by our performance across key metrics. 5G now covers over 99% of the population, while 5G+, nearly 78%. Data usage continues its strong growth, with average monthly consumption per user rising to 18.3 gigabytes, representing a 30% decrease year-on-year. In our wholesale segment, revenue declined by 5% in the quarter, reflecting the natural drop in national streams and the anticipated drop in almost zero margin in the national wholesale activities, which began phasing out and are expected to decline significantly over the next few years with an estimated impact of approximately 170 million euros in 26 and a further 130 million euros in 27 in revenues with no impact in EBITDA. On the national wholesale front, we continue to see a steady decline while at the same time experiencing increasing volumes on our infrastructure as a result of wholesale agreements. Indicatively, we added 135,000 wholesale net additions in 2025 compared to 60,000 a year ago. Our revenues grew by 26.7% during the quarter, driven by solid performance across our ICT portfolio. In particular, our system solution segment delivered an exceptional performance, recording a 57.5% year-on-year increase, reflecting strong demand and continued execution momentum in this area. As the Recovery and Resilience Facility, RRF, gradually reaches its conclusion, its direct contribution is expected to taper off. However, nationally funded projects are anticipating to continue supporting activity levels, while our strategic focus has increasingly shifted towards the private sector and our EU presence. Total operating expenses, excluding depreciation and amortization in one of the items, increased by €65 million in the quarter, driven solely by costs directly linked to top-line growth, most notably higher third-party fees recorded within other operating expenses, reflecting the strong momentum in our ICT. We are also continuing to incur operating expenses related to the expanding FETH adoption particularly costs associated with the final phase of customer connections. At the same time, we remain firmly focused on our cost discipline across the organization with savings most visible in personnel expenses supported by the ongoing benefits of our voluntary exit programs. In parallel, as part of our transformation of our model, we selectively deploy AI-driven automation to structurally improve efficiency supporting a fair improvement in our indirect cost-to-service revenue ratio. As a result, adjusted EBITDA asset leases increased by 2.3% in the quarter 4 of 2025, marking our strongest quarterly growth rate of the year. This performance provides a solid foundation as we look ahead to 2036, where we expect to accelerate EBITDA growth to approximately 3%. Now let's have a look at the capex and cash flow. Firstly, capex in the fourth quarter amounted to $174.5 million, bringing full-year capex to $612 million up, nearly 9% compared to 2024. The increase primarily reflects the continued expansion of our FTPH footprint, as well as the ongoing rollout of our 5G standard loan network, further supporting our FWA growth. For 2026, we expect capex to be around 600 million euros. Precast low after leases from continuing operations reached 168 million euros in the quarter, up from 145 million in the same period last year. The increase was mainly driven by a higher EBITDA in the quarter and improved working capital performance, which more than offset higher capex. For the full year, of 2025, free cash flow stood at 543 million. Turning now to our outlook for 2026, we expect free cash flow to amount to approximately 750 million. This estimate is based on the assumption that the upcoming Spectrum Auction takes place in 2027. As we know, a public consultation process is currently underway, and the final timing and costs have not yet been confirmed. Excluding the one-off tax benefits, which are coming from the Romanian disposal and the resulting lower tax repayments, the underlying organic forecast flow for 2026 is estimated to be in the range between 570 and 580 million euros. With that, we conclude our speech, and we are happy to take your questions. Thank you, operator.