Digi Communications Nv · BVB:DIGI
Digi Communications Nv — Investor Presentation (June 2024)
41 slides from Digi Communications Nv's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by Digi Communications N.V., (the "Company“ or “DIGI”) and solely for use during the pres
Slide 3: Table of Contents
Table of Contents 1. Who we are 2. Why invest in DIGI 3. Development vectors 4. Historical financial data 5. Q1 2024 financials 6. Investor Relations contact
Slide 4: Who we are
DiGi Who we are
Slide 5: Our goal: superior communication services at affordable prices
At Digi Communications, our goal is to harness cutting- edge technology to provide superior communication services to a large customer base at the most affordable prices 5
Slide 6: Our services
Our services Pay TV (DTH & Fixed telephony Cable TV) Mobile telephony Broadband (fixed Data Media content and mobile) communications 6
Slide 7: Media holdings
Media holdings DIGI was the first Romanian electronic communications company to offer convergent services and transmedia content, by bundling phone, internet and TV together. The TV channels launched in July 2009, while in May 2015, the Radio stations were added to the line-up. TV channels: Radio: O
Slide 8: Key markets
Key markets Consolidated, yet still Growth Future Growth Moderate Growth growing Portugal Romania Spain Italy • Fixed (FTTH) and mobile network (4G/5G) in construction, following the Single play: acquisition of spectrum Multiple play: Multiple play: licenses • Mobile • Pay TV, satellite/DTH • Broadb
Slide 9: DIGI in numbers
DIGI in numbers 5 growth markets: 18m+ homes covered 2 core markets: Romania, Spain, Italy, Romania & Spain by DIGI’s fiber network Portugal & Belgium in core markets* €4bn CAPEX between 22K+ employees in 25m RGUS** 2007-Q1 2024 4 key markets* *All data as of 31.12.2023. 9 **All data as of 31.03.202
Slide 10: Key financial data
Key financial data Revenues by market EBITDA by market RGUs (’000) by business line Total revenues and other income in Total Adjusted* EBITDA in 2023: 23,864 2023: +15% €591.2m (+17% vs. 2022) €1,706.6bn (+12% vs. 2022) 20,782 1,335 Fixed-line telephony +10% 1,212 1.7% 10,903 +20% Mobile telecommuni
Slide 11: Our evolution
Our evolution Note: On January 3, 2022 the Group successfully closed the sale of Digi Hungary and its 11 subsidiaries to 4iG Plc (“the Hungarian operations”) for a total consideration of €625 million.
Slide 12: Board of Directors
Board of Directors Digi Communications applies a one-tier board structure comprising of two Executive Directors and five Non-executive Directors, of which two are considered to be independent. The Board of Directors was appointed on April 20th, 2020, and it consists of the following members: Valenti
Slide 13: Awards and recognition
Awards and recognition #1 #1 #4 #5 #17 #39 European Major Telecom Top Company in Most Valuable Romanian Top Employer in Romania Top Company according Top 100 Most Valuable Player Award at Capital Bucharest, awarded by Brand, according to Brand in 2023 according to to Capital Magazine Top Companies i
Slide 14: Why invest in DIGI
DiGi Why invest in DIGI
Slide 15: DIGI on BVB
Listing venue: DIGI on BVB Digi Communications share capital consists of Class A and Class B shares. Class B shares Research coverage: are listed on the Bucharest Stock Exchange (BVB) as of May 16th, 2017. The Company’s shares (BVB: DIGI) are included in the main reference indices of BVB, including
Slide 16: Bonds
Bonds Romanian subsidiary of Digi Communications, Digi Romania, issued in 2020 notes totalling €850 million. Particularly in the current context, the financial cost of the notes is extremely attractive therefore confirming Face value: €450 million the right strategy of the Group to access financing
Slide 17: Key investment highlights
Key investment highlights State of the art Robust RGU growth Strong mobile Focused Proven growth telecom networks across all business infrastructure and geographical driven by robust lines coverage expansion CAPEX • Currently cover 99.5% of • Primary focus on the • Solid performance in • More than 9
Slide 18: ESG
impact pozitiv materiality ESG matrix i material topics: 1. Climate change 11. Personal data privacy 2. Energy consumption 12. Fair working environment 3. Materials and waste 13. Occupational health and 4. Biodiversity safety 2 1 1 2 2 5. Businessethicsand 14. Digital inclusion and responsibility ac
Slide 19: Development vectors
DiGi Development vectors
Slide 20: Growth strategy: from Romanian venture to European operator
From its origins as a Romanian entrepreneurial venture, DIGI has evolved into a pivotal European operator in infrastructure and electronic communications, now present in five major markets. Our growth strategy focuses on asserting leadership in core regions – Romania & Spain – and expanding our foot
Slide 21: 4-pillar strategy
4-pillar strategy Accelerated growth Superior infrastructure • Leverage advanced fiber network • Explore acquisition and expansion based • Top coverage with 4G mobile network on market opportunities with 5G in active deployment • Cross-sell fixed/mobile services to • Maximise advantage in speed and
Slide 22: Key markets
Key markets All data as of 31 December 2023. Consolidated, yet still Growth Moderate Growth growing Romania Spain Italy Top European telecom operator #1 internet operator #1 Mobile Virtual 420K RGUs (mobile) Network Operator on #1 Pay TV operator portability sector Target customer is the large Roman
Slide 23: Romania: DIGI as a market leader
Romania: DIGI as a market leader Key financial data1 Key highlights Revenue: €260.3m • #1 CATV operator with 72.7% market share Adj. EBITDA2 margin: 47.6% (+4.0pp YoY) • #1 internet operator with 70% market share • Performance of DIGI’s fixed internet network places Romania in the global ranking spe
Slide 24: Romania: DIGI as a market leader
Romania: DIGI as a market leader 17.2m RGUs1 Key highlights Fiber infrastructure: Fixed telephony • 100% owned nationwide network 5% • Nationwide last-mile 1Gbps connection with multiple Pay TV 100Gbps capacities and multiple redundancies • ~9.1 million homes passed, covering all major cities 33% an
Slide 25: Spain: DIGI as an important player
Spain: DIGI as an important player Key financial data1 Key highlights Revenue: €177m • September 2018: Launch of FTTH fixed broadband Adj. EBITDA2 margin: 22.3% (+3.4pp YoY) and fixed telephony; currently provides these services in 50 regions • August 2021: Launch of 10 Gbps fixed broadband service
Slide 26: Italy: DIGI as a niched player
Italy: DIGI as a niched player Key financial data1 Key highlights Revenue: €7.6m • Utilize Vodafone’s mobile telecommunications network under the Italian MVNO Agreement • Primarily target the extensive local Romanian community in Italy 435k RGUs Mobile 100% 1 All data as of 31.03.2024 unless stated
Slide 27: Portugal, Belgium: potential growth for DIGI
Portugal, Belgium: potential growth for DIGI Portugal Belgium • Secured mobile spectrum in 2022 5G auction in collaboration with Citymesh • Acquisition of mobile spectrum at 2021 Mobile (Cegeka Group) 5G auction • Agreement concluded in August 2023 • Long-term strategic partnership with with Proximu
Slide 28: Historical financial data
DiGi Historical financial data
Slide 29: Financial KPIs evolution
Financial KPIs evolution Revenues by market* (€m) 1,690 1,493 29 Adjusted EBITDA 1,278 28 evolution* 642 1,107 24 Adjusted EBITDA is defined as EBITDA (consolidated operating profit or 500 loss plus charges for depreciation, amortisation and impairment of assets) 969 23 adjusted for the effect of no
Slide 30: RGUs evolution
RGUs* evolution 24,728 23,864 1,335 1,212 RGUs CAGR of 12% for 20,782 2020-2024 1,149 18,013 9,091 10,903 Fixed-line 1,116 15,631 telephony 1,122 7,473 6,265 Mobile telecommunication 5,578 services 5,944 5,047 3,517 4,262 Fixed internet and 2,856 data 5,682 5,432 4,733 5,129 4,097 Pay TV (Cable & DT
Slide 31: Q1 2024 financials
DiGi Q1 2024 financials
Slide 32: Q1 2024 Results overview
Q1 2024 Results overview REVENUES 12% up to €447 million and other income RGU 14% YoY increase up to 24,7m (+3m RGUs Q1’24/Q1’23) EBITDA excl. IFRS 16 23% up to €140 million Romania RGU +9% Spain RGU +32% Mobile: 6.0m RGU (+16% YoY) Mobile: 5.0m RGU (+24% YoY) Pay TV: 5.7m RGU (+4% YoY) Broadband: 1
Slide 33: Continued strategy execution in 2024
Continued strategy execution in 2024 Sustained RGU growth Continued network Preparations for launch across core markets expansion in Portugal, progress in Belgium • Sustained market share growth • Romania: expanding the mobile • On-track with preparation for the in Romania and Spain. network; rollin
Slide 34: Key developments in 2024 YTD
Key developments in 2024 YTD Spain: sale of FTTH network in 12 provinces • On 4 April 2024, Digi Spain, entered into an asset sale and purchase agreement for the sale of its FTTH network in 12 provinces across Spain. The agreement was finalized with Sota Investments Spain OpCo, S.L.U., which is cont
Slide 35: Key developments in 2024 YTD
Key developments in 2024 YTD Romania: New financing agreement signed • Digi Romania, as borrower, and Citibank Europe Plc., as lender, completed on 14 May 2024 the signing of two export credit facility agreements in the total amount of EUR 117,158,657.37 intended to finance the acquisition of goods
Slide 36: Q1 2024 Market highlights
Q1 2024 Market highlights ‘m€ March 31, 2024 Italy and Group Romania Spain Total4 operations2 Revenues and other €262.1 €177.5 €7.6 €446.7 income3 Adjusted EBITDA1 €108.3 €34.4 €(2.8) €140.0 excluding IFRS 16 RGUs (‘000) # 17,266 # 7,027 # 435 # 24,728 Source: Company data 1Adjusted EBITDA excluding
Slide 37: Q1 2024 Financial highlights
Q1 2024 Financial highlights Group revenue and other income2 • Revenues and other income % CAPEX/revenues (€m) 399 447 up 12% based on strong +12% 37% 43% 40% 38% 8 customer growth in Spain and Italy 7 Romania. +24% 177 While the revenues in Spain 143 Spain grew by a whopping 24% and Revenues & othe
Slide 38: Q1 2024 RGU growth
Q1 2024 RGU growth RGUs (‘000) per business line RGUs (‘000) per market 24,728 Fixed-line telephony 24,728 +14.3% +14.3% 21,626 1,375 21,626 +11% 435 Italy +18% 1,242 368 Mobile services +19% 7,027 +32% Spain 11,464 5,342 9,595 Broadband +17% 6,171 Romania 5,282 +8% 17,266 15,916 Pay TV +4% 5,507 5,
Slide 39: Q1 2024 Financial profile
Q1 2024 Financial profile Financial liabilities as of March 31, 20241 Maturity profile long-term loans & notes Amount (mil €) Facility (Mil €) Senior Secured Notes 850.0 616 2021 Senior Facility (term loan & revolver) 333.3 401 Export Credit Arrangements 94.0 Financial leases 46.4 139 Other long-ter
Slide 40: 2024 Prospects
2024 Prospects Consolidation in core markets New markets launch In Romania, target is to continue The strategic acquisition of spectrum licenses Digi's strategic entry into Portugal organic growth by expanding its and the signing of the option for the national and Belgium with planned network infras
Slide 41: Contact
Contact Investor Relations Department investor.relations@digi-communications.ro www.digi-communications.ro
Digi Communications — Investor Presentation (June 2024) on 6ix