Altice SA

Altice SA — Q3 2013 Earnings Presentation

30 slides from Altice SA's earnings presentation, Nov 12, 2013

  1. Slide 1: Investor Call Presentation 3rd Quarter 2013 Results

    November 12, 2013 Investor Call Presentation 3rd Quarter 2013 Results 1

  2. Slide 2: Agenda

    Agenda 1 Key Highlights 2 Group Financials 3 Q&A 2

  3. Slide 3: An International Cable Operator in Attractive Markets

    An International Cable Operator in Attractive Markets  7 Territories Belgium Luxembourg  3.6m Homes Passed Switzerland Portugal / Belgium & Luxembourg  1.5m Cable Customer Rel. Portugal  3.2m Cable RGUs Recently signed Israel  acquisition in DR Dominican Republic1 Guadeloupe & Overseas Martiniq

  4. Slide 4: Altice Group Key KPIs September 2013

    Altice Group Key KPIs 30 September 2013 Cable Homes Cable 3P Cable-based RGUs Service Mobile In ‘000 Passed Customers Customers Pay TV Broadband Telephony Total ARPU Subs Israel 2,272 1,145 448 881 755 680 2,316 € 47.6 773 Belgium & Luxembourg 233 115 51 130 56 53 239 € 41.1 3 Portugal 906 240 136 2

  5. Slide 5: 9M 2013 Overview

    Altice Group 9M 2013 Overview Operations Strategic Initiatives Liquidity & Capital  PF Revenue growth of 2.4% vs. 9M  OMT and ONI acquisitions closed in  All cable assets consolidated into the 2012 (0.4% at constant exchange Q3 Restricted Group in Q2 and Q3 as rate) to €1,102m driven by HOT and p

  6. Slide 6: 9M 2013 Key Operational Highlights

    Altice Group 9M 2013 Key Operational Highlights Israel Belgium & Luxembourg  Reorganization program finished  Positive growth despite negative year-on-year one-off impact of police camera contract in 9M 2012  Growth in cable revenues driven by focus on multiple-play offerings and increase in ARPU

  7. Slide 7: Integration and Turnaround of OMT and ONI Under Way

    Operations Integration and Turnaround of OMT and ONI Under Way Cost savings by reducing duplicative Positive mix effect from a greater weight cost structures of data services vs. voice Leverage a combined distribution and Certain activities to be combined with customer care network Cabovisão (IT, ca

  8. Slide 8: Smaller Bolt-on Content Acquisitions Completed

    Strategic Initiatives Smaller Bolt-on Content Acquisitions Completed We acquired MCS and SporTV and announced the acquisition of Mobius in October 2013 Overview of MCS Overview of Mobius  Independent sport channel established in 2007  Telecommunications operator in La Reunion providing — Available

  9. Slide 9: Acquisition of Dominican Republican Cable Operator Tricom

    Strategic Initiatives Acquisition of Dominican Republican Cable Operator Tricom Acquisition Rationale 2012 Key Financials  Dominican Republic has attractive population demographics, strong GDP Operating Adj. EBITDA growth, a growing middle class and low penetration of broadband and Pay TV Revenues

  10. Slide 10: Network and Site Sharing Agreement at HOT Mobile

    Strategic Initiatives Network and Site Sharing Agreement at HOT Mobile  HOT Mobile has signed a network and site sharing agreement with Partner with a duration of 15 years — Includes sharing of antennas, sites and frequencies — Maintains operating core network separately, as well as marketing and s

  11. Slide 11: Agenda

    Agenda 1 Key Highlights 2 Group Financials 3 Q&A 11

  12. Slide 12: Historical Consolidated Financials

    Altice VII Historical Consolidated Financials 1,092 Revenues (€m) 928 784 813 2011 2012 9M 2012 9M 2013 EBITDA 38.0% 36.9% 37.5% 40.6% Margin 298 403 377 EBITDA (€m) 305 2011 2012 9M 2012 9M 2013 Cash 32.7% 4.3% 11.5% 50.5% Conversion2 Operating Free Cash Flow 191 (€m)1 97 17 35 2011 2012 9M 2012 9M

  13. Slide 13: Pro Forma Consolidated Revenue

    Altice VII Pro Forma Consolidated Revenue Pro Forma Consolidated Revenue In €m 9M 2012 9M 2013 Growth Israel 635 669 5.4 % Belgium and Luxembourg 53 53 0.5 % Portugal 175 160 (8.5)% Overseas Territories 163 166 1.9 % Other 51 53 5.7 % Total 1,076 1,102 2.4 %  Total revenue growth of 2.4% (0.4% reba

  14. Slide 14: Pro Forma Consolidated EBITDA

    Altice VII Pro Forma Consolidated EBITDA Pro Forma Consolidated EBITDA In €m 9M 2012 9M 2013 Growth Israel 229 270 17.7 % Belgium and Luxembourg 35 35 0.3 % Portugal 32 45 41.4 % Overseas Territories 57 62 8.5 % Other 18 18 (2.9)% Total 375¹ 430 14.5 %  Total PF EBITDA growth of 14.5% (12.2% rebase

  15. Slide 15: Pro Forma Consolidated Capex

    Altice VII Pro Forma Consolidated Capex Pro Forma Combined Adjusted Capex In €m 9M 2012 9M 2013 Growth Israel 230 136 (40.9)% Belgium and Luxembourg 12 15 26.5 % Portugal 20 20 (0.5)% Overseas Territories 22 27 25.5 % Other 13 13 (0.4)% Total 297 211 (28.8)% Total EBITDA - Capex 78 218 178.8 %  Low

  16. Slide 16: Israel HOT 9M 2013 Dashboard

    Israel HOT 9M 2013 Dashboard 9M 2013 9M 2012 9M 2013 vs. 9M 2012 Cable Customers (‘000) 1,207 1,145 (5)% Cable RGUs (‘000) 2,333 2,316 (1%) Cable Cable RGUs per Customer (x) 1.93 2.02 5% Cable Revenue (€m) 509.6 527.0 3% Cable ARPU per Customer (€) 44.2 47.6 8% iDEN Subs ('000) 371 234 (37%) UMTS Su

  17. Slide 17: Growth in Cable RGUs Driven by Triple-Play Services

    Israel Growth in Cable RGUs Driven by Triple-Play Services RGUs (‘000) RGU per Subscriber 2.8% 4.8% 2,343 1.96 1.98 2.01 2.02 2,253 2,294 2,316 1.93 39% 34% 24% 28% 183.6 184.7 187.7 182.1 2010 2011 2012 Q3 2013 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 RGU ARPU 3play %  Increase in ARPU resulting fr

  18. Slide 18: Israel Cable KPIs

    Israel Cable KPIs Cable Subscribers (‘000) TV RGUs (‘000) 1,282 1,245 Market Share: 61% 1,198 1,145 891 891 896 881 2010 2011 2012 9M 2013 2010 2011 2012 9M 2013 Telephony RGUs (‘000) Internet RGUs (‘000) Market Share: 20% Market Share:50%1 676 680 752 768 771 755 610 635 2010 2011 2012 9M 2013 2010

  19. Slide 19: Israel Mobile ARPUs Are Stabilising

    Israel Mobile ARPUs Are Stabilising Subscribers (‘000) Revenue (NISm) 233 232 228 223 221 766 758 761 773 687 92 116 514 539 133 137 482 144 441 371 141 316 326 116 95 276 247 234 84 79 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 iDEN UMTS Total iDEN UMTS ARPU (NI

  20. Slide 20: Israel Financials

    Israel Financials Cable Mobile 635 669 Revenues 125 142 (€m) 510 527 9M 2012 9M 2013 EBITDA Margin 36.1% 40.3% 270 229 EBITDA1 (€m) 9M 2012 9M 2013 Cash NM 49.6% Conversion3 Operating Free Cash Flow (€m) 1,2 134 (1) 9M 2012 9M 2013 Source: Company Information Notes: 1 The network sharing agreement r

  21. Slide 21: Portugal B2C KPIs

    Portugal B2C KPIs Cable Customer Relationships (‘000) Cable-basedChurn Breakdown (‘000) RGUs Rates 2.5x 2.5x 2.5x 264 255 669 240 648 609 110 108 251 243 104 226 162 159 156 154 147 136 256 245 227 2011 2012 9M 2013 2011 2012 9M 2013 3P Others RGUs per Cable Customer Relationships Pay TV Broadband I

  22. Slide 22: Portugal Financials

    Portugal Financials B2C B2B 175 160 Revenues (€m) 86 76 89 83 9M 2012 9M 2013 22.3% Cabovisão 40.4% EBITDA Margin 14.1% ONI 14.7% EBITDA (€m) 45 32 9M 2012 9M 2013 Cash 36.0% 55.0% Conversion2 25 Operating Free Cash 11 Flow (€m)1 9M 2012 9M 2013 Source: Company Information Notes: 1 Defined as EBITDA

  23. Slide 23: Belgium & Luxembourg KPIs

    Belgium & Luxembourg KPIs Cable Customer Relationships1 (‘000) Cable-basedChurn Breakdown (‘000) RGUs Rates 2.1x 2.0x 2.1x 241 244 240 117 120 115 52 53 53 70 54 55 56 68 64 135 136 130 49 50 51 2011 2012 9M 2013 2011 2012 9M 2013 3P Others RGUs per Cable Customer Relationships Pay TV Broadband Inte

  24. Slide 24: Belgium & Luxembourg Financials

    Belgium & Luxembourg Financials 53 53 Revenues (€m) 9M 2012 9M 2013 EBITDA Margin 66.8% 66.7% EBITDA (€m) 35 35 9M 2012 9M 2013 Cash 67.2% 58.6% Conversion3 Operating 24 21 Free Cash Flow (€m)1 9M 2012 9M 2013 Source: Company Information Notes: 1 Defined as EBITDA – Capex. 2 Defined as (EBITDA – Cap

  25. Slide 25: Overseas Territories KPIs

    Overseas Territories KPIs Cable Customer Relationships1 (‘000) RGUs Churn Rates2 (‘000) Breakdown 1.4x 1.6x 1.8x 206 203 203 41 39 38 98 95 95 32 27 23 67 69 70 12 15 9 41 39 38 2011 2012 9M 2013 2011 2012 9M 2013 3P Others RGUs per Cable Customer Relationships Pay TV Broadband Internet Fixed-Line T

  26. Slide 26: Overseas Territories Financials

    Overseas Territories Financials Cable Mobile 163 166 Revenues (€m) 95 99 68 67 9M 2012 9M 2013 EBITDA Margin 34.8% 37.1% EBITDA (€m) 57 62 9M 2012 9M 2013 Cash 62.0% 56.1% Conversion3 Operating 35 35 Free Cash Flow (€m)1 9M 2012 9M 2013 Source: Company Information Notes: 1 Defined as EBITDA – Capex.

  27. Slide 27: Our Capital Structure

    Our Capital Structure Existing Capitalisation (Sep-2013)1 Amount Amount (local currency) (€m equivalent) Coupon / Margin Maturity HOT Unsecured Notes NIS 1.3bn 278 3.90 - 6.90% 2018 Unsecured Coditel Mezzanine € 106m 106 8.50% / 5.25% PIK 2017 Green Data Center Debt CHF 29m 24 L+1.700% 2022 Senior S

  28. Slide 28: Restricted Group Pro Forma Leverage September 30th, 2013

    Restricted Group Pro Forma Leverage September 30th, 2013 Pro Forma Leverage (Sep-2013) In €m Q2-2013 Q3-2013 L2QA Total Adjusted EBITDA 145 149 587 Green Data Center EBITDA (Unrestricted Sub) (3) (3) (11) Total EBITDA excl. Green Data Center 142 146 576 Synergies ONI / OMT¹ 13 HOT Mobile Network Sha

  29. Slide 29: Agenda

    Agenda 1 Key Highlights 2 Group Financials 3 Q&A 29

  30. Slide 30: Thank You

    Thank You 30

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