Digi Communications NV · BVB:DIGI
Digi Communications NV — Investor Presentation (February 2020)
25 slides from Digi Communications NV's investor presentation, February 2020
Slide 1: Investor presentation February 2020
Investor presentation February 2020 1
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: Agenda
p. 3 Agenda 1. Overview of Digi 2. Digi’s Operations 3. FY 2019 preliminary financial results 3
Slide 4: Overview of Digi
OVERVIEW OF DIGI 4
Slide 5: Strong domestic market and complementary International presence
Group Strong domestic market and complementary International presence Revenue breakdown1 (preliminary Dec- 19) 17% 64% Romania 18% Hungary Spain & Italy Preliminary Dec-19 Financials Preliminary Dec-19 Financials Preliminary Dec-19 Financials Revenue1: €757m Revenue1: €217m Revenue1: €217m Adj. EBIT
Slide 6: DIGI strategy
DIGI strategy Infrastructure & scale Convergence Leverage advanced fiber Cross-sell mobile network Drive penetration Complement with mobile Economies of scale network Focus on Maximise speed advantage leadership in core markets Value for money M&A High quality service Undertaking fut
Slide 7: Highlights Preliminary Results FY 2019
Highlights Preliminary Results FY 2019 Revenues and Adj EBITDA (excl IFRS 16) increased with ~ 14% and 17% respectively for FY 2019 vs FY 2018 Revenues EBITDA EUR 1,186.0 million group +14 % consolidated revenues for EUR 380.1 million Adj EBITDA FY 2019 (+14,2% compared (excl IFRS 16) for FY 2019 (+
Slide 8: DIGI snapshot: Overview
Group DIGI snapshot: Overview The Group Top 3 European cable operator European leader in geographically-focused telecommunications Total RGUs of public European cable operators, 3Q 2019 (m) solutions – €1.2bn revenues and €446 m Adj. EBITDA1 7 – 16.1m2 RGUs offering material cross and upsell poten
Slide 9: Long track record of sustained growth and market innovation
Group Long track record of sustained growth and market innovation… DIGI history RGU1 (mm) Founded by Launch of Majority FTTB 4G Invitel’s Launched Zoltán own sports upgrade launch acquisition mobile Reached Teszári and channel completed in Hungary services in 3m mobile others +900MHz DIGI Hungary su
Slide 10: Digi's Operations
DIGI’S OPERATIONS 10
Slide 11: Credit highlights
Credit highlights 1 Attractive local markets with stable structural growth Market leadership in core business lines and robust RGU 2 growth Advanced fixed and mobile infrastructure in Romania and 3 Hungary 4 Leading commercial proposition for customers Robust financial performance underpinned by a p
Slide 12: Romania and Hungary: attractive and growing markets
‘17 – 20 1 Romania and Hungary: attractive and growing markets... Large and dynamic economies… ... with superior growth profile... ... and sound macro fundamentals Population (mm) as of Jan-19 Real GDP CAGR1 (%) • Low and stable unemployment (4.2% in 38.0 Romania and 3.7% in Hungary respectively)2 C
Slide 13: FMC market leader in Romania
2 FMC market leader in Romania… Romanian market shares Telekom Romania Other 2 Pay-TV3 1 51% 18% 1 12% 19% Fixed 1 2 internet and4 1 52% 22% 12% 14% data Fixed-line telephony 35% 41% 20% 3% Post-paid 27% 19% 26% 29% mobile Multiple 1 - play % of Group 64% 5 1.2% 2.7% 1.6% - revenue
Slide 14: With strong commercial momentum
2 … with strong commercial momentum Consistent RGU1 growth Stable fixed and growing mobile ARPU2 (‘000) Expansion of fiber network roll-out (€/month) Price increases in 2019 across customer base Penetration growth and cross-sell RGU growth YoY (%) 5.2 5.0 +4% Total RGUs (mm) 4.8 -2% 4.8 4.8 20
Slide 15: Leading challenger in Hungary replicating model in Romania
2 Leading challenger in Hungary replicating model in Romania Cable TV(1) Fixed internet and data(1) Fixed telephony(1) 2 2 2 Strong #2 position across segments OthersCable TV Others Others 17% 17% 8% 30% 37% 23% 48% 24% 29% 25% 22% 21% RGUs (‘000) Total revenue (€m)2 Cable TV Fixed-line telephony •
Slide 16: Strong commercial success in Spain
2 Strong commercial success in Spain Significant growth beyond initial market niche of Romanian community in Spain and successful diversification into fixed services Fixed internet and data & Mobile fixed telephony DIGI RGUs DIGI RGUs (‘000s) (‘000s) Fixed Internet and Data 9.4 9.3 20.8 24.5 +41% 1,
Slide 17: Well invested fixed line network in Romania and Hungary
3 Well invested fixed line network in Romania and Hungary • Very dense, nationwide network ~100% owned • Nationwide last-mile 1Gbps connection with multiple Modern, 100Gbps capacities and multiple redundancies resilient fiber- based • ~6.1m homes passed, covering all major cities and infrastructure
Slide 18: Romanian mobile network well positioned to benefit from 5G
3 Romanian mobile network well positioned to benefit from 5G DIGI Population coverage 3G 4G 2 • ~4,900 base stations (approximately 4,300 of which are 4G) 99.5% 2 Newly built • Dense fiber network ideal for potential future small cell 5G 80.0% own mobile rollout network, coverage increasing in • Lau
Slide 19: Robust financial performance
5 Robust financial performance… Group revenue Group adjusted EBITDA1 Group capex³ (€m) (€m), margin (%) (€m), % total revenues 1,186 IFRS 16 impact on Adj. EBITDA +14% • Fiber network: low maintenance capex and no large 31.3% scale upgrades required1 37.6% • Mobile network in Romania significantly u
Slide 20: Underpinned by a prudent capital structure
5 …underpinned by a prudent capital structure Group net debt1 to adjusted EBITDA2 Peer net debt to adj. EBITDA As of Q3 2019 reported numbers Pre-IFRS 16 Post-IFRS 16 5.9x 5.7x 4.0x 3.6x Median: 3.8x 2.8x 2.6x 2.6x 2.1x 4 5 6 7 8 9 2018 2019 3 Notes: 1. Net debt as excerpted from the consolidated fi
Slide 21: FY 2019 Preliminary Financial Results
FY 2019 Preliminary Financial Results 21
Slide 22: Group overview
Group overview ‘Mil € Romania Hungary Spain & Other4 Total3 Dec 31, Dec 31, Dec 31, Dec 31, 2019 2019 2019 2019 Revenues2 €756.6 m €217.0 m €216.8 m €1,186.0 m Adj. EBITDA €345.9 m €60.9 m €39.6 m €446.3 m Adj EBITDA margin¹ 45.7% 28.1% 18.2% 37.6% Impact of IFRS 16 adoption (€41.7)m (€22.5)m (€2.0)
Slide 23: Group overview
Group overview Total Romania Hungary Spain & Other Service offering / RGUs Dec 31, 2019A (‘000s) CATV 3,590 694 - 4,284 Fixed internet and data 2,775 750 81 3,606 Mobile telecommunication services 3,442 99 2,136 5,677 Fixed-line telephony 1,091 681 31 1,803 DTH 507 265 - 772 Total RGUs 11,405 2,489
Slide 24: Financial highlights
Financial highlights Preliminary results from operations Key considerations Eur. m 1,186 Revenues Adj. EBITDA CAPEX 1,200 1,038 Revenues in Romania increased mainly as a result of 1,000 price increase across all residential services starting with March 2019 as well as increase in our cable TV and
Slide 25: Group Financial Profile (1/2)
Group Financial Profile (1/2) Financial liabilities as of Dec 31, 20191 Maturity profile Long term loans & Notes (Mil €) Amount Facility 619 Before Bond issuance 2020 (Mil €) Senior Secured Notes 550.0 2016 Senior Facility 232.9 2018 Senior Facility 73.9 181 9 Financial leases 11.5 - - - - - Other l
Digi Communications — Investor Presentation (February 2020) on 6ix