Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q1 2023 Earnings Presentation
43 slides from Cyfrowy Polsat Sa's earnings presentation, May 16, 2023
Slide 1: Financial results Q1'23
Financial results Q1’23 16 May 2023
Slide 2: Disclaimer
Disclaimer This presentation may include forward-looking statements, understood as all statements (other than statements of historical facts) regarding our financial results, business strategy, plans and objectives pertaining to our future operations (including development plans related to our produ
Slide 3: Speakers
Speakers MIROSŁAW BŁASZCZYK MACIEJ STEC KATARZYNA OSTAP-TOMANN STANISŁAW JANOWSKI PRESIDENT OF THE MGMT BOARD VICE-PRESIDENT FOR STRATEGY MEMBER OF THE MGMT BOARD, CFO PRESIDENT, TELEWIZJA POLSAT 3
Slide 4: Agenda
Agenda 1. Key events in Q1’23 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q1'23
Key events in Q1’23 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q1'23
Key events in Q1’23 ● We signed senior facility agreements with a consortium of Polish and foreign financial institutions for term loans amounting to PLN 7.3 bn and EUR 0.5 bn and a revolving facility loan of PLN 1.0 bn ● We issued sustainability-linked bonds worth PLN 2.67 bn ● We continue the dyna
Slide 7: Operating results
Operating results
Slide 8: Media segment: TV and online
Media segment: TV and online Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 9: We effectively build our position in the market of Internet portals
We effectively build our position in the market of Internet portals ● We are a leading Internet publisher in Poland Average monthly number of users thanks to the acquisition of Interia.pl 21.2 21.2 22.1 23.2 22.5 22.1 18.5 18.5 17.6 18.7 (millions of RU) ● Our leading position in the online media: −
Slide 10: Viewership of our channels in Q1'23
Viewership of our channels in Q1’23 ● Good viewership results of TV Polsat Group Audience shares channels in Q1'23 despite the negative Main channels Thematic channels 8.6% 14.8% impact of refarming to the DVB-T2 standard 8.0% 6.3% 5.6% 13.9% 8.6% Polsat TVN TVP2 TVP1 POLSAT (2) Warner TVP Bros.Disc
Slide 11: Position in the advertising market in Q1'23
Position in the advertising market in Q1’23 Market expenditures on TV advertising ● The dynamics of advertising and sponsorship and sponsorship revenues of TV Polsat Group in line with the +4.0% market trend 970 1,009 (mPLN) ● As a result, our share in the TV advertising and sponsorship market amoun
Slide 12: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 13: We maintain a high, stable base of multiplay customers
We maintain a high, stable base of multiplay customers ● High, stable base of multiplay customer Number of multiplay customers1 despite unfavorable market conditions (thous. customers) 3000 65% 2,462 2,462 2,462 60% ● 2500 As a result of the consistent implementation 2000 55% 50% 41% 41% 42% of the
Slide 14: We provide nearly 13.2m services to contract B2C customers
We provide nearly 13.2m services to contract B2C customers ● We maintain a high, stable number of Number of RGUs in the B2C contract segment mobile telephony and Internet services -2% 13.38m 13.28m 13.16m ● At the same time – in line with our earlier 2.0m 2.0m 2.0m statements – the number of provide
Slide 15: ARPU growth in B2C thanks to multiplay strategy and 5G tariffs
ARPU growth in B2C thanks to the consistent implementation of our multiplay strategy and popularization of 5G tariffs 74 +2.3% 3 ● 2.3% YoY increase in ARPU resulting from 71.7 71.4 72 3 the consistent building of the value of the 69.8 70 existing customer base despite unfavorable 2 68 market condit
Slide 16: High base and stable ARPU of prepaid services
High base and stable ARPU of prepaid services ● YoY decrease in the number of mobile Prepaid RGU telephony RGUs is the effect of a high 2.83m 2.69m 2.69m reference point resulting from the Q1'22 support campaign for newly-arrived refugees from Ukraine, consisting in the distribution of free Plus sta
Slide 17: Stable base and growing ARPU of B2B customers
Stable base and growing ARPU of B2B customers ● Polsat Plus Group has 69.3 thous. B2B Number of B2B customers customers, successfully maintaining the scale 68.9k 69.1k 69.3k of this base ● We successively expand our offer of communication and ICT services which Q1'22 Q4'22 Q1'23 enabled us to increa
Slide 18: Clean energy segment
Clean energy segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 19: We want to become a leading producer of clean, green energy and green hydrogen
We want to become a leading producer of clean, green energy and green hydrogen Goal #1: Goal #2: We want to become a leading We want to become a leading producer of clean, green energy producer of green hydrogen 19
Slide 20: We dynamically implement strategic initiatives related to the production of clean energy
We dynamically implement strategic initiatives related to the production of clean energy ENERGY FROM BIOMASS SOLAR ENERGY ON-SHORE WIND ENERGY 100 MW 280 MW >296 MW ENERGY FROM WASTE PROCESSING Turbine #1 Brudzew Miłosław Rybnik Installed capacity: 50 MW Installed capacity: 70 MWp Installed
Slide 21: We are building the full value chain of an economy based on green hydrogen
We are building the full value chain of an economy based on green hydrogen GREEN HYDROGEN STORAGE AND TRANSPORT GREEN HYDROGEN PRODUCTS FOR END-USERS PRODUCTION DISTRIBUTION First 2.5 MW electrolyzer Hydrogen trailer with H2 refueling station in We won the tender for 100 H2 cars are in use
Slide 22: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 23: Results of the Group in Q1'23
Results of the Group in Q1’23 Revenue Adjusted EBITDA1 +7.1% 3.199 -4.9% 801 761 (mPLN) 2.987 (mPLN) Q1'22 Q1'23 Q1'22 Q1'23 LTM FCF Net debt/EBITDA LTM 768 -49.7% 3.26x 2.86x 386 (mPLN) 2022 LTM 3M'23 Q4'22 Q1'23 Source: Consolidated financial statements for the 3-month period ended 31 March 2023 a
Slide 24: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue Adjusted EBITDA1 +7% | +213m -5% | -40m 3,199 767 801 761 2,987 +34 +45 -15 +34 -41 -4 +7 -2 +149 (mPLN) (mPLN) 26% 27% 24% EBITDA margin Revenue B2C and Media Real Consolidation Revenue EBITDA Costs of Adjusted B2C and Media Real Consolidation Adjusted
Slide 25: FCF under strong pressure from increasing interest costs, installment receivables and inventory
FCF under strong pressure from increasing interest costs, installment receivables and inventory mPLN Q1’23 Adjusted FCF after interest Net cash from operating activities 300 • Decline in • Inflationary • UMTS fee • Increase in • Increase in liabilities pressure on (EUR 31m) installment interest • In
Slide 26: High level of cash due to the issue of bonds
High level of cash due to the issue of bonds -852.2 1,142.1 1,473.4 FCF 3M’23: PLN -222m -83.5 9.6 817.8 299.6 -275.4 665.9 -250.5 (mPLN) CAPEX1 /revenue 9.2% Cash and cash Net cash Net cash used Payment of Net loans and Bonds issue Concessions Net loans Other Cash and cash equivalents at from in in
Slide 27: The Group's debt
The Group’s debt Debt structure As at 31 Mar 2023 Carrying amount by instrument type by currency mPLN as at Bonds 31 Mar 2023 29% SFA (Tranche A and B) 7,822 Bank debt PLN 71% 100% Revolving Credit Facility (RCF) 1,017 Bonds (Series B, C and D) 3,215 Leasing and other 530 Gross debt 12,584 Debt matu
Slide 28: We successfully refinanced the Group's debt
We successfully refinanced the Group’s debt ● On 11 January 2023 we issued series D bonds in a record amount of PLN 2.67 bn ● On 28 April 2023 we entered into a Senior Facilities Agreement with a consortium of Polish and foreign financial institutions, securing PLN 7.3 bn and EUR 0.5 bn in term loan
Slide 29: Key parameters of our new debt
Key parameters of our new debt New Senior Debt Series D bonds PLN 7.26 bn + PLN 1 bn (RCF) Value / Currency PLN 2.67 bn EUR 506 m 5 years, PLN tranche amoritized, EUR tranche – bullet Maturity Date repayment 7 years, bullet repayment Borrowers / Issuer Cyfrowy Polsat, Polkomtel Cyfrowy Polsat WIBOR/
Slide 30: The new debt structure ensures flexibility in financing investments under the Strategy 2023+
The new debt structure ensures flexibility in financing investments under the Strategy 2023+ Debt structure Debt structure after refinancing(2) As at 31 Mar 2023 by instrument type by currency by instrument type by currency EUR(3) Bonds Bonds 18% 29% Banking debt 25% Banking debt(3) PLN 75% 71% 100%
Slide 31: We invest in the future
We invest in the future Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 32: Strategy 2023+: we invest in practical innovations, we invest in the future!
Strategy 2023+: we invest in practical innovations, we invest in the future! CONNECTIVITY CONTENT CLEAN ENERGY The fastest 5G in Poland will accelerate to 1Gb/s 32
Slide 33: Summary & Q&A
Summary & Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 34: Summary update
Summary update ● We have successfully refinanced the Group’s debt on a difficult debt market and we have secured funding for investments under our Strategy 2023+ ● We consistently pursue our multiplay strategy, which is reflected in growing ARPU and a low level of churn ● We are building wind and so
Slide 35: Polsat Q&A
Polsat Q&A
Slide 36: Additional information
Additional information
Slide 37: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services mPLN Q1’23 YoY change ● Increase in revenue supported by very strong Revenue 2,675 6% sales of equipment and growing ARPU per B2C and B2B contract customer Operating costs(1) 2,002 10% ● Inflationary pressure and increase in electricity costs are the ma
Slide 38: Results of the media segment
Results of the media segment mPLN Q1’23 YoY change ● Revenue under the positive impact of growing Revenue 568 6% advertising revenue, revenue from cable/satellite operators and sales of licenses, sub-licenses and copyrights Operating costs(1) 474 9% ● Content production is our competitive edge EBITD
Slide 39: Results of the real estate segment
Results of the real estate segment mPLN Q1’23 ● The real estate segment mainly focuses on Revenue 45 construction projects but it also includes sale, rental and management of own and leased property Operating costs(1) 39 ● The sale of apartments in a new investment stage in Port Praski is underway.
Slide 40: Revenue structure
Revenue structure mPLN 1,734 ● Increase in retail revenue as a result of the successful Retail revenue 1,722 1% execution of our strategy aimed at building customer value, which is reflected in ARPU growth dynamics from contract B2C and B2B customers 792 Wholesale revenue ● Significantly higher re
Slide 41: Operating costs structure
Operating costs structure mPLN Technical costs and cost of settlements 809 ● Increase in the cost of equipment sold mainly as a result of a higher with telecommunication operators 810 0% share of more expensive smartphone models in the sales mix Depreciation, amortization, impairment 463 ● Increase
Slide 42: Glossary
Glossary RGU (Revenue Single, active and retail revenue generating service of pay TV provided in all types of access technologies, mobile Generating Unit) or fixed-line Internet access, or mobile telephony provided in the contract or prepaid model. A natural person, legal entity or an organizational
Slide 43: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warsaw Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl