Slide 1: Investor presentation for the year ended December 31, 2015
Investor presentation for the year ended December 31, 2015 Cable Communications Systems (CCS) Parent Company of April 21, 2016
Slide 2: Disclaimer
p. 2 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 Cable Communications Systems (“CCS" or the "Company") and solely for use during t
Slide 3: Group overview
p. 3 Group overview Romania Hungary Others 3 Total Year ended Year ended Dec 31, 2015 Year ended Dec 31, 2015 Year ended Dec 31, 2015 Dec 31, 2015 Revenues² €542 m €126 m €85 m €750.1 m EBITDA €179 m €49 m €9 m €237.4 m EBITDA margin¹ 33% 39% 11% 31.6% Service offering / market position / RGUs Decem
Slide 4: Recent Developments
p. 4 Recent Developments Business • First quarter 2016: The national roaming agreement with Vodafone was extended for 1 additional year (initially the agreement was signed in March 2014 for 2 years). Our own network currently covers 94% of the population. December 2015: We have drawn an additional
Slide 5: Recent Developments – Legislative
p. 5 Recent Developments Legislative Several changes to the Romanian tax legislation were enacted by the Romanian Parliament in 2015 and entered into force starting January 2016. Some of the changes are: − VAT progressively decreased from 24% to 20% starting January 2016 and to 19% starting Januar
Slide 6: Financial highlights
p. 6 Financial highlights Results from continuing operations* Revenues in Romania increased mainly as a result of: Eur. m – Increase in mobile telephony RGUs, ARPU and Revenues & other income related sales of equipment 800 746 Adj. EBITDA – Increase in our cable Tv and fixed internet RGUs 700 CAPE
Slide 7: Highlights Romania – Revenue and Adj EBITDA
p. 7 Highlights Romania – Revenue and Adj EBITDA Results of Operations1 For the year ended % For the three months Results of Operations Dec 31, change ended Dec 31, % change 2014 2015 2014 2015 (euro in millions) (euro in millions) Revenues* 471.1 541.8 15.0% 126.8 140.1 10.5% Adjusted EBITDA* 177.0
Slide 8: Highlights Romania - KPIs
p. 8 Highlights Romania - KPIs Subscribers RGUs Period Ended Subscribers (Thousand RGUs) December 31, Net Additions Last 12 Last 3 2014 2015 months months Cable TV 2,599 2,733 134 40 Fixed internet and data 1,834 1,976 142 56 Fixed-line telephony 1,470 1,414 (56) (15) Mobile telephony 1,388 1,906 51
Slide 9: Highlights Hungary – Revenue and EBITDA
p. 9 Highlights Hungary – Revenue and EBITDA Results of Operations For the year ended For the three months % Results of Operations Dec 31, % change ended Dec 31, change 2014 2015 2014 2015 (euro in millions) (euro in millions) Increase in revenue and improved Revenues 119.1 125.9 5.8% 30.5 32.3 5.
Slide 10: Highlights Hungary - KPIs
p. 10 Highlights Hungary - KPIs Subscribers RGUs Period Ended December Subscribers (Thousand RGUs) 31, Net Additions Last 12 Last 3 2014 2015 months months Cable TV 411 437 26 10 Fixed internet and data 347 382 35 12 Fixed-line telephony 301 327 26 8 Mobile internet and data 19 16 (3) (1) DTH 330 31
Slide 11: Highlights Other Territories
p. 11 Highlights Other Territories For the year ended Dec 31, For the three months ended % change Dec 31, % change 2014 2015 2014 2015 (euro in millions) (euro in millions) Revenues Spain1 54.8 73.8 34.7% 15.4 20.0 30.0% Italy 5.1 7.5 47.9% 1.5 2.1 41.4% Discontinued operations2 13.8 3.8 -72.1% 3.3
Slide 12: Group Financial Profile
p. 12 Group Financial Profile Maturity profile Term Loan & Notes Financial liabilities as of December 31, 2015* as of December 31, 2015 (EUR millions) 500.0 474.3 Amount Facility (EUR millions) Loan Bond Senior Secured Notes 450.0 400.0 Senior Facility 229.9 Financial leases 8.76 Other long term deb
Slide 13: Group Financial Profile (continued)
p. 13 Group Financial Profile (continued) Gross / Net Debt (EUR millions) 800 729 710 668 54 50 Total net debt as of December 31, 2015 is 50 600 EUR 660.6 million Net Leverage is 2.8x and Gross Leverage is 400 3.0x. 675 661 617 200 - 2013 2014 2015 Net Debt Cash Leverage 3.5x 3.2x 3.0x 3.0x 2.6x
Slide 14: Financial Calendar
p. 14 Financial Calendar You can find us on: Web: investors.rcs-rds.ro Email: investor.relations@rcs-rds.ro Agenda Report Call Q1 2016 Results 3-Jun-16 Thursday 9-Jun-16 Q2 2016 Results 26-Aug-16 Thursday 1-Sep-16 Q3 2016 Results 25-Nov-16 Tuesday 29-Nov-16 CCS / RCS & RDS
Slide 15: Q&A Session
p. 15 Q&A Session CCS / RCS & RDS
Slide 16: Appendices
p. 16 Appendices CCS / RCS & RDS
Slide 17: Revenue streams
p. 17 Revenue streams FY 2015 revenue split by product FY 2015 revenue split by country Other revenues Italy Other (Czech 12% Spain 1% republic) 10% 0% DTH Cable TV 10% 27% Mobile Hungary internet and 17% data 5% Mobile Fixed telephony internet and 17% data 25% Fixed-line Romania telephony 72% 4% CC
Slide 18: Group Results (P&L)
p. 18 Group Results (P&L) For the three months For the year ended Dec 31, % change ended Dec 31, % change 2014 2015 2014 2015 (euro in millions) (euro in millions) Revenues1 Romania 469.7 540.1 15.0% 127.3 139.7 9.8% Hungary 119.1 125.9 5.8% 30.5 32.2 5.8% Spain 54.0 72.7 34.5% 15.2 19.7 29.8% Italy
Slide 19: Cash Flow
p. 19 Cash Flow Summary Cash Flow Year ended Dec 31, 2014 2015 (euro in millions) Cash flows from operations before working capital changes 232.0 237.2 Cash flows from changes in working capital (5.7) 4.2 Cash flows from operations 226.3 241.5 Interest paid (46.7) (44.2) Income tax paid (4.6) (5.1)
Slide 20: FOREX development
p. 20 FOREX development RON/EUR Exchange Rate 2015 HUF/EUR Exchange Rate 2015 4.70 320 4.60 310 4.50 312 312 313 308 308 309 4.50 300 306 306 4.40 4.45 4.44 4.46 4.43 4.41 4.43 4.43 290 4.30 4.20 280 4.10 270 4.00 260 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2014 2014 2014 2015 2015 2015
Slide 21: Summary corporate and financing structure
p. 21 Summary corporate and financing structure RCS Management, S.A. (Romania) 63% Cable Communication New Senior Systems N.V.² Secured Notes (The Netherlands) €450m 95.75%¹ Proceeds loan RON1,040M Senior RCS & RDS S.A.² Facilities Agreement (Romania) 100% 100% 100% DIGI T.S. Kft DIGI Spain DIGI Tel