Altice Europe — Q3 2019 Earnings Presentation
20 slides from Altice Europe's earnings presentation, Nov 13, 2019
Slide 1: Altice Europe Q3 2019 Results
Altice Europe Q3 2019 Results November 13, 2019
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitatio
Slide 3: Altice Europe Q3 2019 Summary Review
Altice Europe Q3 2019 Summary Review Revenue growth accelerating: +6.9% YoY in Q3 2019 • France: +7.2%, with all segments growing • International: +5.5% EBITDA and OpFCF strong growth continues • Adjusted EBITDA: +8.8% • OpFCF1: +11% YoY All increased FY 2019 guidance reiterated €2.5bn refinancing l
Slide 4: SFR Commercial Performance
SFR Commercial Performance B2C fixed net adds1 B2C mobile postpaid net adds2 (‘000) (‘000) B2C fixed base 6.3m +2% YoY B2C mobile postpaid base 14.2m +5% YoY of which fibre 44% +391 +52 +51 +41 +28 +31 +234 Churn +194 -15% +117 +105 YoY in Q3-19 +64 +68 +64 +63 +59 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q3-1
Slide 5: MEO Commercial Performance
MEO Commercial Performance B2C fixed net adds B2C mobile postpaid net adds (‘000) (‘000) B2C fixed base 1.6m +1% YoY B2C mobile postpaid base 3.1m +5% YoY of which Fibre 58% Fibre churn <8% +8 +8 +5 In Q3-19 +4 +41 +37 +1 +32 +33 +31 Postpaid +44 +44 churn +41 +35 +38 <9% In Q3-19 Q3-18 Q4-18 Q1-19
Slide 6: Altice France Revenue Trends
Altice France Revenue Trends1 All segments growing in Q3 2019 Components of Q3 2019 revenue trends YoY (€m) +7.2% YoY • Total Altice France: +7.2% YoY in Q3 2019 • Residential2: +0.2% 2,598 2,646 2,469 88 • Business services3: +23.9% 112 83 • Media: +5.2% 817 876 707 Revenue growth evolution YoY +7.
Slide 7: Altice International Revenue Trends
Altice International Revenue Trends1 All countries growing in Q3 2019 Components of Q3 2019 revenue trends YoY (€m) +5.5% YoY • Total Altice International: +5.5% YoY in Q3 2019 • Portugal: +2.1% 1,014 1,036 982 113 • Israel: +6.0% (-1.6% with CC) 85 116 • Dominican Republic: +0.4% (-1.0% with CC) 14
Slide 8: Altice Europe Financials
Altice Europe Financials1 €m Q3-18 Pro Forma Q3-19 Growth YoY Reported Growth YoY Constant FX France 2,469 2,646 +7.2% +7.2% Altice International 982 1,036 +5.5% +3.5% Altice TV 30 58 - - Corporate and Other, Eliminations -51 -74 - - Total Revenue 3,429 3,666 +6.9% +6.3% France 966 1,052 +9.0% +9.0%
Slide 9: FY 2019 Guidance and Mid-Term Outlook Reiterated
FY 2019 Guidance and Mid-Term Outlook Reiterated FY 2019 Guidance Reported results Q1-19 Q2-19 Q3-19 YTD-19 Altice France 5-6% -1.2% +4.0% +7.2% +3.3% Revenue Growth YoY Altice France €4.1-4.2bn €0.96bn €1.08bn €1.05bn €3.09bn Adjusted EBITDA Altice Europe (ex Altice TV) In the 15% area +1.1% +18.4%
Slide 10: Altice Europe Debt Maturity Profile
Altice Europe Debt Maturity Profile1 Successful refinancing of Altice France, lowest coupon ever at 2.5%2 Altice maturity profile (€bn) 0.1 0.1 1.8 0.1 2.9 0.5 5.9 12.2 5.1 2.7 WAL of 6.0 years WACD of 5.4% €3.4 billion available liquidity1,3 85% fixed interest debt 2019 2020 2021 2022 2023 2024 202
Slide 11: Focus on Cash Interest Savings
Focus on Cash Interest Savings Lower interest costs to drive higher FCF generation Altice Europe interest cost evolution Components of lower interest costs (€bn) • FY 2019E (A) 1.84 - €140m • Expected accrued interest for FY 2019E 1.70 - €560m • FY 2019 PF (B) 1.14 • €140m savings locked in from suc
Slide 12: Q&A
Q&A 12 alti
Slide 13: Appendix
Appendix 13 alti
Slide 14: Detailed Financials
Detailed Financials1 €m Q3-18 Q3-19 Growth YoY Reported Growth YoY Constant FX France 2,469 2,646 +7.2% +7.2% Portugal 525 536 +2.1% +2.1% Israel 232 246 +6.0% -1.6% Dominican Republic 140 140 +0.4% -1.0% Teads2 85 113 +34.1% +30.0% Altice TV 30 58 - - Corporate and Other, Eliminations -51 -74 - - T
Slide 15: Free Cash Flow Generation
Free Cash Flow Generation Q3 2019 Free Cash Flow (FCF) and net change in cash bridge1 (€m) Altice Luxembourg (Telecom) Perimeter 1,444 721 (722) (475) 296 (108) (33) (28) 84 (143) (65) (154) (244) (32) (192) Adjusted Accrued Altice Cash Cash Pension Restructuring Other Altice TV Escrow ACF Gross Fin
Slide 16: Pro Forma Debt Capital Structure
Pro Forma Debt Capital Structure1 Altice Europe N.V Gross Debt €31,542m Net Debt €30,655m Gross Leverage 5.8x Net Leverage 5.7x Altice Luxembourg consolidated 3.83%4 Gross Debt €29,814m Altice Corporate Net Debt €29,075m Altice USA Inc. Financing S.à r.l. (ACF) Gross Leverage 5.3x Gross Debt €1,728m
Slide 17: Reconciliation of Non-GAAP Performance Measures to Operating Profit
Reconciliation of Non-GAAP Performance Measures to Operating Profit1 For the three months ended €m September 30, 2019 Revenue 10,763.8 Purchasing and subcontracting costs -2,828.4 Other operating expenses -2,043.3 Staff costs and employee benefits -1,131.6 Total 4,760.4 Share-based expense 33.8 Rent
Slide 18: Pro Forma Net Leverage Reconciliation as of September 30, 2019
Pro Forma Net Leverage Reconciliation as of September 30, 2019 €m Altice Europe N.V. Reconciliation to Swap Adjusted Debt Actual Pro Forma Total Debenture and Loans from Financial Institutions 35,150 35,150 Value of Debenture and Loans from Financial Institutions in Foreign Currency converted at clo
Slide 19: Pro Forma Net Leverage Reconciliation as of September 30, 2019
Pro Forma Net Leverage Reconciliation as of September 30, 2019 €m Altice Luxembourg Consolidated Altice Altice Altice Intra-Group Altice Altice Altice Altice Lux ACF Europe N.V. Altice Europe N.V. (Pro Forma) Eliminations TV Europe N.V. Eliminations France International Luxembourg Conso Consolidated
Slide 20: IFRS 16: Impact on KPIs
IFRS 16: Impact on KPIs KPI IFRS 16 impact Comments Adjusted EBITDA Income (after operating leases and No Statement impact • Unchanged Adjusted EBITDA definition before financial leases) Cash Flow No • Unchanged Capex definition Adjusted EBITDA - Capex Statement impact • Unchanged Adjusted EBITDA –