Telefónica O2 Czech Republic – significant achievements
• Telefónica O2 is one of the biggest companies in the Czech Republic with high revenues, OIBDA
and constant growth of customers. Telefónica O2 is one of the most attractive stocks in Central
Europe with the above average dividend yield, strong and stable free cash flow generation and low
• Decision to enter Slovak market as the third operator is turned out into a big business success.
Telefónica O2 Slovakia achieves more than 10 per cent market share in less than three years
• Telefónica has the leading TELCO position in the Czech Republic and in Central Europe.
• Telefónica O2 was the first European incumbent launching naked ADSL propositions to the market.
The speed of ADSL is now four times faster, than 3 years ago, without FUP and any limitations. The
wildest fixed internet connection is used by more than 650 000 customers.
• Telefónica O2 Czech Republic was the first operator launching mobile flat rate tariffs in the Czech
market. Now flat fee tariffs used by more than 500 000 customers.
• Telefónica O2 has the leading position in high-speed 3G mobile data services in CR. It is the first
company offering the most extensive coverage of 3G. The fastest new generation network covers 12
biggest cities in the country. Telefónica O2 also announced the testing of LTE – next generation of
wireless data connection.
• The new ICT business reinforced company’s first position in the corporate segment. Telefónica O2
Czech Republic is the third company focusing on information and communications technologies
products and services (ICT) in the Czech Republic.
• Telefónica O2 is the biggest provider and the strongest player on IPTV Czech market. Number of
O2 TV customers constantly grows – from 15 000 customers in 2006, to more than 130 000
customers in 2009.
• Telefónica O2 introduced completely new way of selling its household services. The O2 Home
concept includes not only new but also current customers improvement of form of offering
convergent services, unique possibility of any combination of services as O2 TV, O2 ADSL Internet,
3G mobile internet and voice services.
• After changes in portfolio of prepaid tariffs, as the first operator, O2 offering customers free
benefits. All prepaid customers using O2 services are now rewarded every time they top up.
Telefónica O2 Czech Republic – share price performance vs. Prague Stock
• Telefónica O2 belongs to Top 4 companies listed on PSE by key criteria
• Market capitalization
o CZK 135.1 billion (EUR 5.2 billion) at 30 November 2009
o #4 on PSE, 10% share
• Trading volumes
o CZK 62.4 billion year-to-date (January to November 2009)
o #2 on PSE, 11% share
o Average daily volumes of CZK 265.4 million
• Above average dividend yield (11.2%) and free cash flow yield (12.8% in 2008)
• Most of the analysts covering our company include Telefónica O2 shares into their Top Picks in
CEE and EMEA region
• Telefónica O2 share price performance from 30 November 2007 till 30 November 2009: -4%
(including CZK 50 dividend paid in 2008 and 2009), while PX: -37%
Telefónica O2 Czech Republic – Awarded Company
• According The 2008 EVA Ranking Czech Republic - Telefónica O2 Czech Republic is the second
most profitable company for it shareholders - generating the highest profit to its owner. The company
reported EVA of almost eight billion representing 149 percent year-over-year increase.
• Employer of the Year – The Czech public has traditionally marked Telefónica O2 as the most
preferred company they would like to work for. In the eyes of the jury, O2 is one of the three
companies offering the best working conditions to its employees in the Czech Republic. Additionally,
Telefónica O2 Czech Republic placed first in the category “Employer of the Year” in the Prague
• Top 10 ICT Companies – In 2009, Telefónica O2 became one of the top ten companies focusing
on information and communications technologies products and services (ICT) in the market.
• In the Czech TOP 100 index, Telefónica O2 placed first in the category Main Telecommunications
Operators. Apart from that, the company also ranks among the ten most important companies in the
• Rhodos Image Award – The company has occupied the first place in the category
Telecommunications Operators for several years now. The company image is assessed by a
representative sample of the top managers based all over the Czech Republic.
• Zlatá Effie, (Gold Effie Award) – In 2008 O2 Foundation was awarded Zlatá Effie 2008 for its
campaign for Minimisation of Bullying – the jury marked it as the most effective social campaign in
the Czech Republic.
• Křesadlo – An award awarded to corporate volunteering programmes – for the engagement of
employees as volunteers in the charitable projects of the O2 Foundation.
• Healthy Enterprise – The prestigious Healthy Enterprise Award is given out every year by the
Ministry of Health of the Czech Republic. Telefónica O2 Czech Republic is the only
telecommunications company in the Czech market that has been presented with this award