Altice SA

Altice SA — Q1 2014 Earnings Presentation

17 slides from Altice SA's earnings presentation, May 16, 2014

  1. Slide 1: Q1-14 Results

    May 16, 2014 Q1-14 Results 1

  2. Slide 2: Q1-14 Results - Highlights

    Altice SA Q1-14 Results - Highlights Pro forma Financials1 Recent Strategic Initiatives Liquidity & Capital  Revenue down 2.0% to €828m  Agreed purchase of SFR to combine Pro forma1 with Numericable • down 1.1% constant currency  Consolidated net debt of €6.3bn • mainly due to Portugal & Israel 

  3. Slide 3: Key Operational Highlights

    Altice S.A Key Operational Highlights Israel France  10 point expansion in EBITDA margin to 48%  4.3% cable customer growth  2.7% cable ARPU growth1 driven by strong triple-play /  1.5% ARPU growth high speed broadband growth and selected price rises  La Box selling well  Customer losses slowe

  4. Slide 4: Pro Forma Consolidated Financials

    Altice SA Pro Forma Consolidated Financials Reported Constant €m Q1-13 Q1-14 Growth Currency Growth France 325 326 0.4% 0.4% Revenues International 520 502 (3.6%) (2.0%) Total 845 828 (2.0%) (1.1%) France 151 153 1.2% 1.2% Margin (%) 46.5% 46.9% +0.4pp International 194 215 11% 12% EBITDA Margin (%)

  5. Slide 5: Pro Forma Consolidated Revenue

    Altice SA Pro Forma Consolidated Revenue Reported Constant Currency €m Q1-13 Q1-14 Growth Growth Israel 219 213 (2.8%) (4.9%) Dominican Republic 153 148 (3.4%) 5.7% French Overseas Territories 59 60 1.1% 1.1% Portugal 54 46 (14.1%) (14.1%) Benelux 18 18 - - Other 18 18 (1.1%) (1.4%) Total Internatio

  6. Slide 6: Pro Forma Consolidated EBITDA

    Altice SA Pro Forma Consolidated EBITDA Reported Constant Currency €m Q1-13 Q1-14 Growth Growth Israel 83 102 23% 20% Dominican Republic 56 60 7.0% 17% French Overseas Territories 21 23 11% 11% Portugal 17 15 (12%) (12%) Benelux 12 13 0.9% 0.9% Other 5 3 (46%) (47%) Total International 194 215 11% 1

  7. Slide 7: Pro Forma Consolidated Capex

    Altice SA Pro Forma Consolidated Capex Reported Constant Currency €m Q1-13 Q1-14 Growth Growth Israel 40 46 13% 10% Dominican Republic 15 12 (18%) (10%) French Overseas Territories 8 11 33% 33% Portugal 7 5 (25%) (25%) Benelux 4 4 2.6% 2.6% Other 4 12 205% 204% Total International 79 91 15% 16% Fran

  8. Slide 8: France Cable KPIs

    France KPIs Q1-13 Q1-14 Growth Cable Customers (‘000)1 1,647 1,717 4.3% Cable RGUs2 (‘000) 3,134 3,224 2.9% Cable RGUs per Customer2 (x) 2.45 2.56 4.4% Cable Triple-play Penetration2 61% 63% 2% pts Cable Revenue €215m €219m 1.7% Cable ARPU2 €39.70 €40.30 1.5%  Cable customers and ARPU grew due to s

  9. Slide 9: France Financials

    France Financials B2B & 325 326 Other Cable 109 108 Revenue (€m) 215 219 Q1-13 Q1-14 EBITDA Margin 46.5% 46.9% EBITDA (€m) 151 153 Q1-13 Q1-14 Operating Free Cash Flow (€m) 2.2% 78 76 Q1-13 Q1-14 Note: Revenue chart above does not break out intercompany elimination of €1.9m in Q1-14 9

  10. Slide 10: Israel Cable KPIs

    Israel Cable KPIs Q1-13 Q1-14 Growth Cable Customers (‘000) 1,188 1,116 (6.0%) Cable RGUs (‘000) 2,356 2,291 (2.8%) Cable RGUs per Customer (x) 1.98 2.05 3.5% Cable Triple-play Penetration 36% 41% 5pp Cable Revenue (NISm) 841 816 (2.8%) Cable ARPU (NIS) 224 230 2.7%  Cable customer decline reflecti

  11. Slide 11: Israel Mobile – iDEN and ARPU decline outweighs UMTS subscriber growth

    Israel Mobile – iDEN and ARPU decline outweighs UMTS subscriber growth Subscribers (‘000) Revenue (NISm) 810 848 758 761 773 641 232 231 592 223 227 482 514 539 216 325 247 234 218 207 132 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 136 142 153 iDEN UMTS Total 144 ARPU (NIS) 98 100 100 99 94 82 78 74 10

  12. Slide 12: Israel Financials (Local currency)

    Israel Financials (Local currency) Cable 1,073 1,021 Mobile 232 216 Revenue (NISm) 841 816 Q1-13 Q1-14 EBITDA Margin 37.9% 47.9% EBITDA (NISm) 489 407 Q1-13 Q1-14 Operating Free Cash Flow (NISm) 270 209 Q1-13 Q1-14 Note: Revenue chart above does not break out intercompany elimination of NIS 12m in Q

  13. Slide 13: Dominican Republic Mobile and Cable KPIs

    Dominican Republic KPIs Q1-13 Q1-14 Growth Postpaid Subs 610 667 9.3% Prepaid Subs 2,866 3,039 6.0% Mobile Total Mobile Subs 3,475 3,707 6.7% Mobile Revenue (DOPm) 6,097 6,565 7.8% Mobile ARPU (DOP) 523 527 0.5% Cable Customers (‘000) 106 113 6.3% Cable RGUs (‘000) 144 177 23% Cable Cable RGUs per C

  14. Slide 14: Dominican Republic Financials (local currency)

    Dominican Republic Financials (local currency) 8.12 8.58 Revenue (DOPbn) Q1-13 Q1-14 EBITDA Margin 36.4% 40.3% 3.46 EBITDA 2.96 (DOPbn) Q1-13 Q1-14 Operating 2.76 Free Cash 2.17 Flow (DOPbn) Q1-13 Q1-14 14

  15. Slide 15: Group Net Debt

    Group Net Debt As of Q1-14 PF for DR Acquisitions PF for SFR Acquisition Altice SA Altice SA Gross Debt: € 6,526m Gross Debt1: €19,390m Cash2: €267m Cash3: €426m Net Debt: €6,259m Net Debt: €18,964m HoldCo Net Debt2: €199m HoldCo Net Debt3:€3,797m Un. RCF: €163m Un. RCF: €1,048m 40% 100% 60% 100% Fr

  16. Slide 16: Thank You

    Thank You 16

  17. Slide 17: Not an Offer to Sell or Solicitation of an Offer to Purchase Securities

    NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of Altice S.A. or any of its affiliates (collectively the “Altice Group”) or the solicitation of an

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