Digi Communications NV · BVB:DIGI
Digi Communications NV — Investor Presentation (April 2019)
25 slides from Digi Communications NV's investor presentation, April 2019
Slide 1: Digi Communications N.V.
DIGI COMMUNICATIONS N.V. (“the Company” or “DIGI”) April 2019 Private & Confidential 1 Private & Confidential
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: Summary
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 FY 2018 Financial Results 3 Private & Confidential
Slide 4: Summary: DIGI Group Profile
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 FY 2018 Financial Results 4 Private & Confidential
Slide 5: Overview of Digi Communications
Group Overview of Digi Communications FY 2018 RGUs Digi Group (incl. Invitel): 14,926k 100% 100% 100% Romania Hungary Spain & Italy FY 18 RGUs: 10,956k FY 18 RGUs2: 2,421k FY 18 RGUs: 1,549k RGU breakdown (FY 18) RGU breakdown (FY 18) RGU breakdown (FY 18) Fixed-line DTH DTH Fixed-line Fixed telepho
Slide 6: Long Track Record of Sustained Growth and Market Innovation
Group Long Track Record of Sustained Growth and Market Innovation Digi history Invitel’s RGU1 acquisition in Launch of Majority FTTB (m) Launch of Nationwide 4G Hungary internet & upgrade MVNO in launch of launch Founded by data services Network completed Spain 1Gbps speeds Zoltán Teszári targeting
Slide 7: Translating into Financial Performance
Group Translating into Financial Performance Group Revenue (€ m) +13.3% ✓ 14.9m RGUs as of Dec. 31, 2018 offering cross & upsell potential +8.8% – €1,038.1m revenues and €324.6m Adj. EBITDA1 – 4.8m Pay-TV, 3.3m Internet, 1.9m Fixed telephony and 5.0m Mobile 1,038 RGUs2 917 843 (Invitel RGUs: 0.2m Pa
Slide 8: Summary: DIGI Core Markets
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 FY 2018 Financial Results 8 Private & Confidential
Slide 9: Market Leader in Romanian Fiber and Challenger in Mobile
Market Leader in Romanian Fiber and Challenger in Mobile Uniquely positioned 2 growth pillars Romanian market share estimation (RGUs, Q3 18) Romania revenues (€m)2 Internet Others +3.8% 14% TV 1 364 +4% 377 392 1 Fiber 12% 17% network 12% 51% 20% 51% 23% 2016 2017 2018 +9.7% 180 12% 164 +35% 2 19% 1
Slide 10: State-of-the-art Fiber-Based Infrastructure
State-of-the-art Fiber-Based Infrastructure • GPON network: high fiber share − Very dense; taking fiber into the home or its immediate vicinity − Early adopter of Ethernet as main technology in 2006, using GPON since 2010 − Nationwide last-mile 1Gbps − Multiple 100Gbps capacities and multiple redund
Slide 11: Own mobile network
Own mobile network Newly built network in place • Own 3G network: ~99.5%1 population coverage − ~ 4,5001 mobile towers − Leading equipment suppliers (Ericsson, Huawei, Nokia) • Successful 4G launch to promote high speeds − ~ 3,1001 base stations − Current coverage ~65% of population1; • Dense fiber
Slide 12: Hungary Market Overview
Hungary Market Overview Top market position Growth pillars Hungarian market share1 (RGUs, Q3 18) 1 17.9% 25.2% UPC Cable Telekom 4 TV DIGI 30.0% Hungary RGU (‘000)2 26.9% Others 747 689 694 2 17.8% Telekom 35.6% UPC Fixed 4 Int 24.7% DIGI 276 Others 15 21.9% Cable TV Fixed internet Fixed DTH Mobile
Slide 13: Overview of Spain and Italy
p. 13 Overview of Spain and Italy Spain Solid ethnic operator becoming a refence for value for money Spanish customers Highlights Brand Network DIGI mobile subs (‘000s) Mobile 1,343 telephony ◼ Advancing to new segments of 896 value for money oriented 609 Mobile towards Spanish customers telephony ◼
Slide 14: Digi Group Investment highlights
Digi Group Investment highlights 1 At forefront of technology 2 Leading convergent player Seizing business development opportunities & growth in own 3 markets 4 Robust financial performance 14 Private & Confidential
Slide 15: Summary: FY 2018 Financial Results
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 FY 2018 Financial Results 15 Private & Confidential
Slide 16: Group overview
Group overview Romania Hungary5 Spain & Other4 ‘Mil € 12 months 12 months 12 months Total3 Dec. 31, Dec. 31, Dec. 31, 12 months 2018 2018 2018 Dec. 31, 2018 Revenues2 €701.2 m €190.9 m €150.8 m €1,038.1 m EBITDA €259.4 m €39.0 m €26.1 m €324.6 m Adj EBITDA margin¹ 37.0% 20.4% 17.3% 31.3% Service off
Slide 17: Financial highlights
Financial highlights Results from continuing operations Key considerations • Revenues in Romania variation - mainly as a result of: • Increase in our fixed internet and cable TV RGUs EUR. M Revenues Adj. EBITDA1 CAPEX • Increase in mobile telephony ARPU 280.6 281.7 • Revenues in Hungary variation -
Slide 18: Group: Capex profile
Group: Capex profile Capex Key considerations €m • Disciplined capex approach − Focused on highest value projects 279 243 − Flexible and agnostic approach 216 • Main investment projects: • Fixed network has largely been upgraded in Romania and Hungary • Most mobile capex invested in Romania • Invest
Slide 19: Leverage stable and conservative vs peers
Leverage stable and conservative vs peers Net Debt to Adj. EBITDA stable Conservative net debt to adj. EBITDA compared to peers Q2 2018 Net Leverage1 2 5.8x 3.8x 3 3.5x 5.3x 3.3x 3.0x 3.0x 2.8x 2.7x 2.8x 2.9x 2.5x 2.8x 4.9x 2.7x 2.3x 2.0x 4 1.8x 3.8x 1.5x 1.3x 5 1.0x 3.6x 2016 2017 2018 Gross Levera
Slide 20: Contact
Contact ◼ You can find us on: ◼ Web: ◼ www.digi-communications.ro ◼ Email: ◼ ipo.relations@digi-communications.ro 20 Private & Confidential
Slide 21: Appendix
APPENDIX 21 Private & Confidential
Slide 22: Romania: RGU & ARPU
Romania: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs Dec 31, Last 12 Last 3 2017 2018 months months Cable TV 3,030 3,305 260 86 Fixed internet and data 2,225 2,459 234 75 Mobile telecommunications services1 3,400 3,379 (21) 12 Fixed-line telephony 1,283 1,
Slide 23: Hungary (Digi HU & Invitel): RGU & ARPU
Hungary (Digi HU & Invitel): RGU & ARPU Subscribers Key considerations RGUs Period Ended Thousand RGUs Net Additions December 31, Last 12 Last 3 2017 2018 months months Cable TV 500 689 189 4 Fixed internet and data 467 747 280 6 Mobile telecommunications services1 12 15 3 (1) Fixed-line telephony 3
Slide 24: Other Territories: RGU
Other Territories: RGU Subscribers & ARPU RGUs Period Ended Net Additions Thousand RGUs December 31, Last 12 Last 3 2017 2018 months months Spain ▪ Over 200,000 lines net portability gain in the last 4 quarters of 2018 and Mobile telecommunications services 896 1,343 447 130 permanently in the top 3
Slide 25: Group Financial Profile
Group Financial Profile Debt structure Key considerations €m 920 2018 ◼Net Leverage 2 is 2.8x and Gross Leverage is 2.8x. 906 780 2017 764 773 2016 758 Gross debt 1 Net debt 1 1 Gross debt/ Net debt is presented as per Notes requirements. 2 The Net Leverage and Gross Leverage are computed using EBIT
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