Digi Communications Nv · BVB:DIGI

Digi Communications Nv — Cable Communications Systems (CCS) — Q3 2014 Earnings Presentation

22 slides from Digi Communications Nv's earnings presentation, Dec 18, 2014

  1. Slide 1: Investor presentation for the three months ended September 30, 2014

    Investor presentation for the three months ended September 30, 2014 Cable Communications Systems (CCS) Parent Company of December 18, 2014

  2. 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

  3. Slide 3: Group overview

    p. 3 Group overview Romania Hungary Others Total 3 months 9 months 3 months 9 months 3 months 9 months 3 months 9 months ended ended ended ended ended ended ended ended September September September September September September September September 30, 2014 30, 2014 30, 2014 30, 2014 30, 2014 30, 20

  4. Slide 4: Recent Developments

    p. 4 Recent Developments  Starting with June 2014 we have launched a campaign aiming to increase our mobile customer base in Romania. The campaign promotes an attractive offer targeted at new and existing clients including a variety of mobile phones for purchase on spot or in installments. The camp

  5. Slide 5: Financial highlights

    p. 5 Financial highlights Results from continuing1 operations  Revenue increased as a result of increase in Revenues & other income sale of equipments to clients and as a result 200 Adj. EBITDA Eur. m of increase in RGUs CAPEX 180 170  EBITDA margin decreased primarily due to 160 sales of equipmen

  6. Slide 6: Highlights Romania – Revenue and Adj EBITDA

    p. 6 Highlights Romania – Revenue and Adj EBITDA Results of Operations1 For the three months For the nine months Results of Operations ended September 30, % change ended September 30, % change 2013 2014 2013 2014 (euro in millions) (euro in millions) Revenues 105.0 122.9 17.0% 311.8 344.3 10.4% Adju

  7. Slide 7: Highlights Romania - KPIs

    p. 7 Highlights Romania - KPIs Subscribers RGUs Period Ended Subscribers (Thousand RGUs) September 30, Net Additions 2013 2014 Last 12 months Last 3 months Cable TV 2,413 2,559 146 24 Fixed internet and data 1,640 1,784 144 31 Fixed-line telephony 1,532 1,485 (47) (14) Mobile internet and data 665 1

  8. Slide 8: Highlights Hungary – Revenue and EBITDA

    p. 8 Highlights Hungary – Revenue and EBITDA Results of Operations  Slight decrease in revenue For the three months % For the nine months % Results of Operations ended September 30, change ended September 30, change and EBITDA in Q3 2014 (1.7% 2013 2014 2013 2014 decrease in revenues and (euro in m

  9. Slide 9: Highlights Hungary - KPIs

    p. 9 Highlights Hungary - KPIs Subscribers RGUs Period Ended Subscribers (Thousand RGUs) September 30, Net Additions  Steady growth of Triple Play Last 12 Last 3 2013 2014 months months subscribers and increase in Cable TV 397 405 8 3 the penetration of Internet Fixed internet and data 319 339 20 6

  10. Slide 10: Highlights Other Territories

    p. 10 Highlights Other Territories For the three months % For the nine months ended September 30, change ended September 30, % change 2013 2014 2013 2014  Spain: (euro in millions) (euro in millions) Revenues • Steady growth in RGUs Spain1 11.5 14.1 22.6% 36.1 39.4 9.1% • We have negotiated the Cze

  11. Slide 11: Group Financial Profile

    p. 11 Group Financial Profile  We concluded a coupon SWAP until the end of September 2016 for the full amount of the Proceeds Loan (€450 million) Financial liabilities as of September 30, 2014 Maturity profile Term Loan & Notes Amount as of September 30, 2014 (EUR millions) Facility (EUR millions)

  12. Slide 12: Group Financial Profile (continued)

    p. 12 Group Financial Profile (continued) Gross / Net Debt (EUR millions) 800 715 638 668 50 76  Total net debt as of September 30, 2014 is 600 13 €639 million 400 Out of the EUR 76 million cash balance, EUR 625 617 639 32 million constituted restricted cash which has 200 been used to pay the new

  13. Slide 13: Financial Calendar

    p. 13 Financial Calendar  You can find us on:  Web: investors.rcs-rds.ro  Email: investor.relations@rcs-rds.ro  Agenda Report Call FY 2014 Results 30-Apr-15 Thursday 07-May-15 Q1 2015 Results 12-Jun-15 Thursday 18-Jun-15 Q2 2015 Results 11-Sep-15 Thursday 17-Sep-15 Q3 2015 Results 11-Dec-15 Thur

  14. Slide 14: Q&A Session

    p. 14 Q&A Session CCS / RCS & RDS

  15. Slide 15: Appendices

    p. 15 Appendices CCS / RCS & RDS

  16. Slide 16: Other Recent Developments

    p. 16 Other Recent Developments  In June 19, 2014 we drew the remaining EUR 45 million from the term loan facility of the New Senior Facilities Agreement.  We concluded coupon swaps for the entire Proceeds Loan’s value (€450 million), all with a termination date of 23 September 2016.  Starting wi

  17. Slide 17: Other Recent Developments – Mobile Telephony

    p. 17 Other Recent Developments – Mobile Telephony  The license of 5 MHz of bandwidth in the 900 MHz frequency spectrum that we won in September 2012 has become operational on April 6, 2014.  In December 2013 ANCOM has announced a reduction in mobile interconnection tariffs to 0.96 eurocents / min

  18. Slide 18: Revenue streams

    p. 18 Revenue streams Q3 2014 revenue split by product Q3 2014 revenue split by country Czech Other Republic Italy revenues 2% 1% 5% DTH Spain 13% 8% Cable TV 28% Hungary 17% Mobile telephony 18% Romania 72% Mobile Fixed internet and Fixed-line internet and data telephony data 4% 5% 27% CCS / RCS &

  19. Slide 19: Group Results (P&L)

    p. 19 Group Results (P&L) For the three months ended For the nine months ended September 30, % change September 30, % change 2013 2014 2013 2014 (euro in millions) (euro in millions) Revenues Romania 104.1 122.4 17.6% 308.8 342.4 10.9% Hungary 29.6 29.1 -1.9% 89.0 88.6 -0.4% Spain 11.4 13.9 22.1% 35

  20. Slide 20: Cash Flow

    p. 20 Cash Flow Summary Cash Flow Three months ended Nine months ended September 30, September 30, 2013 2014 2013 2014 (euro in millions) (euro in millions) Cash flows from operations before working capital changes 68.0 55.1 202.0 175.7 Cash flows from changes in working capital (12.2) (0.3) (8.7) (

  21. Slide 21: FOREX development

    p. 21 FOREX development RON/EUR Exchange Rate 2012 – Q3 2014 HUF/EUR Exchange Rate 2012 – Q3 2014 4.70 320 4.60 310 312 4.50 308 4.52 4.52 300 306 4.50 4.40 4.44 4.45 297 297 296 298 298 4.42 4.43 4.41 290 294 4.39 4.40 4.30 4.35 280 283 283 4.20 270 4.10 4.00 260 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1

  22. Slide 22: Summary corporate and financing structure

    p. 22 Summary corporate and financing structure RCS Management, S.A. (Romania) 63% Cable Communication New Senior Systems N.V.² Secured Notes (The Netherlands) €450m 96%¹ Proceeds loan €300m New Senior RCS & RDS S.A.² Facilities Agreement` (Romania) 100% 100% 100% 100% DIGI T.S. Kft DIGI Spain DIGI

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