Digi Communications NV · BVB:DIGI
Digi Communications NV — Investor Presentation (December 2018)
26 slides from Digi Communications NV's investor presentation, December 2018
Slide 1: DIGI Communications N.V.
DIGI COMMUNICATIONS N.V. (“the Company” or “DIGI”) December 2018 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 Q3 2018 Preliminary Financial Results 3 Private & Confidential
Slide 4: Summary: DIGI Group Profile
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q3 2018 Preliminary Financial Results 4 Private & Confidential
Slide 5: Overview of Digi Communications
Group Overview of Digi Communications Q3 18 RGUs Digi Group (incl. Invitel): 14,665k 100% 100% 100% Romania Hungary Spain & Italy Q3 18 RGUs: 10,823k Q3 18 RGUs2: 2,427k Q3 18 RGUs: 1,415k RGU breakdown (Q3 18) RGU breakdown (Q3 18) RGU breakdown (Q3 18) Fixed-line DTH DTH telephony 5% 12% 11% Cable
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 Launch of Majority FTTB (m) Launch Nationwide 4G in Hungary internet & upgrade of MVNO launch of launch Founded by data Network completed in Spain 1Gbps Zoltán services upgrade to +900MHz speeds
Slide 7: Translating into Financial Performance
Group Translating into Financial Performance 14.7m RGUs as of 30 Sept 18 offering cross & upsell potential Group Revenue (€ m) – €752.0m revenues and €236.6m Adj. EBITDA1 for the 9 +8.8% month period +9.9% 917 – 4.8m Pay-TV, 3.2m Internet, 1.9m Fixed tel and 4.8m mobile 843 RGUs2 752 (Invitel RGUs
Slide 8: Summary: DIGI Core Markets
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q3 2018 Preliminary 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 +4% 377 +4% 14% TV 364 1 1 12% 17% 282 293 Fiber network 12% 51% 20% 51% 23% 2016 2017 9m 2017 9m 2018 +35% +11% 12% 164
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%1 population coverage − ~ 4,4001 mobile towers − ~ 70%2 of towers connected by fiber allowing high flexibility in providing high data usage per user − Leading equipment suppliers (Huawei, Nokia, Ericsson) • Successful 4G launch to
Slide 12: Overview of Hungarian Operations
Overview of Hungarian Operations Invitel Acquisition • On 21 July 2017, Digi HU, acting as purchaser, • Digi HU’s ownership and control over Invitel is not signed a share-purchase agreement to acquire close affected by the above-mentioned GVH’s to 100% of the share capital and voting rights of decis
Slide 13: Hungary Market Overview
Hungary Market Overview Top market position Growth pillars Hungarian market share1 (Sept 18) 1 17.9% 25.2% UPC Cable Telekom 4 TV DIGI 30.0% Hungary RGU (‘000)2 26.9% Others 2 17.8% Telekom 35.6% 685 741 697 UPC Fixed 4 Int 24.7% DIGI Others 288 16 21.9% Cable TV Fixed int Fixed tel DTH Mobile 3 8.1
Slide 14: Overview of Spain and Italy
p. 14 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) % of Spanish customers in total net adds in 2018 Mobile 1,213 896 Spanish telephony Advancing to new segments of 813 customers ne
Slide 15: Digi Group Investment highlights
Digi Group Investment highlights 1 At forefront of technology 2 Leading convergent player Seizing business development opportunities & growth in 3 own markets 4 Robust financial performance 15 Private & Confidential
Slide 16: Summary: Q3 2018 Financial Results
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q3 2018 Financial Results 16 Private & Confidential
Slide 17: Group overview
Group overview ‘Mil € Romania Hungary5 Spain & Other4 Total3 Total3 3 months 9 months 3 months 9 months 3 months 9 months 3 months 9 months Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, 2018 2018 2018 2018 2018 2018 2018 2018 Revenues2 €177.3 m €512.5 m €54.6 m €135.0 m €39
Slide 18: Financial highlights
Financial highlights Results from continuing operations Key considerations • Revenues in Romania variation- mainly as a result of: • Increase in our fixed internet RGUs and cable Tv 1 EUR. M Revenues Adj. EBITDA CAPEX • Increase in mobile telephony ARPU. 269.8 • Revenues in Hungary variation-mainly
Slide 19: Group: Capex profile
Group: Capex profile Capex Key considerations €m • Disciplined capex approach − Focused on highest value projects 243 216 − Flexible and agnostic approach 200 188 • Main investment projects: • Fixed network has largely been upgraded in Romania and Hungary • Most mobile capex invested in Romania • In
Slide 20: 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 2.8x 2.8x 2.7x 2.8x 2.8x 4.9x 2.5x 2.7x 2.7x 2.3x 4 2.0x 1.8x 3.8x 1.5x 1.3x 5 1.0x 3.6x Q3 2017 2017 Q3 2018 Gross
Slide 21: Contact
Contact You can find us on: Web: www.digi-communications.ro Email: ipo.relations@digi-communications.ro 21 Private & Confidential
Slide 22: Appendix
APPENDIX 22 Private & Confidential
Slide 23: Romania: RGU & ARPU
Romania: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs Sept 30, Last 12 Last 3 2017 2018 months months Cable TV 2,974 3,234 260 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 24: Hungary (Digi HU & Invitel): RGU & ARPU
Hungary (Digi HU & Invitel): RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs Sept 30, Last 12 Last 3 2017 2018 months months Cable TV 495 685 190 176 Fixed internet and data 459 741 282 259 Mobile telecommunications services1 13 16 3 5 Fixed-line telephony 371
Slide 25: Other Territories: RGU
Other Territories: RGU Subscribers • Consistent growth in the past 6 quarters • Approximately 140.000 lines net portability RGUs Period Net Additions gain in the last 3 quarters of 2018 and Ended permanently in the top 3 operator for Thousand RGUs Sept 30, monthly mobile portability Last 12 Last 3 2
Slide 26: Group Financial Profile
Group Financial Profile Debt structure Key considerations €m 921 Q3 2018 Net Leverage2 is 2.8x and Gross Leverage is 904 2.8x. 780 2017 For the purpose of the Financial Indebtedness 764 and leverage computation as at 30 Sept 2018, as per the definitions from the Senior Facilities and Notes Indentu
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