Digi Communications NV · BVB:DIGI
Digi Communications NV — Investor Presentation (September 2018)
28 slides from Digi Communications NV's investor presentation, Sep 7, 2018
Slide 1: Digi Communications N.V.
DIGI COMMUNICATIONS N.V. (“the Company” or “DIGI”) Bucharest Private & Confidential 6-7 September 2018 Private & Confidential 1
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 H1/Q2 2018 Preliminary Financial Results 3 Private & Confidential
Slide 4: Summary: DIGI Group Profile
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 H1/Q2 2018 Preliminary Financial Results 4 Private & Confidential
Slide 5: Overview of Digi Communications
Group Overview of Digi Communications Q2 18 RGUs Digi Group (excl Invitel): 13,707k Invitel: 762k 14,469k 100% 100% 100% Romania Hungary Spain & Italy Q2 18 RGUs: 10,688k Q2 18 RGUs: Q2 18 RGUs: 1,333k Digi HU: 1,686k Invitel2: 762k RGU breakdown (Q2 18) RGU breakdown (Q2 18) 2,448k RGU breakdown (Q
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 14m RGUs as of 30 June 18 offering cross & upsell potential Group Revenue (€ m) – €475.8m revenues and €153.0m Adj. EBITDA1 for the 6 +8.8% month period 917 (Invitel’s results as per local Hungarian GAAP for the 6 month 843 period3: €41.4m revenues and
Slide 8: European Fiber and Convergence Champion
Group European Fiber and Convergence Champion Top 3 European operator Total RGUs of public European cable operators, Q2 2018 (m) 1 35 2 32 Top European operator 14 Local convergence champion 9 8 State of the art fixed fiber network 4 2 Note: RGU’s as at 30 June 2018, unless otherwise stated 1. Al
Slide 9: Summary: DIGI Core Markets
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 H1/Q2 2018 Preliminary Financial Results 9 Private & Confidential
Slide 10: 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, Q2 18) Romania revenues (€m)2 Internet Others +4% 14% TV 364 377 1 1 Fiber 12% 17% +4% network 13% 50% 50% 20% 187 194 24% 2016 2017 H1 2017 H1 2018 +35% 12% 164 +14%
Slide 11: 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 12: Own mobile network
Own mobile network Newly built network in place • Own 3G network: ~99%1 population coverage − ~ 4,1001 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 13: Overview of Hungarian Operations
Overview of Hungarian Operations Invitel Acquisition • On 21 July 2017, Digi HU, acting as purchaser, signed a share-purchase agreement to acquire close to 100% of the share capital and voting rights of Invitel Távközlési Zrt (“Invitel”) • In May 2018 the Regulatory Authority from Hungary approved,
Slide 14: Hungary Market Overview
Hungary Market Overview Top market position Growth pillars Hungarian market share1 (June 18) Hungary Homes passed (m)2 1 18.3% 25.4% UPC Telekom Cable 1.2 DIGI 7 1.1 TV 30.0% 26.3% Others Digi HU Invitel 2 17.8% Telekom Hungary RGU (‘000)3 35.4% UPC Fixed 7 DIGI Int 24.8% 247 Others 175 325 22.0% 9
Slide 15: Overview of Spain and Italy Operations
Overview of Spain and Italy Operations Overview RGU • ~2m1 Romanian expatriates in Spain & Italy +51% − Leading MVNO for phoning home 1,124 Spain − Well-known Digi brand 742 • Highly synergistic to Romanian business − Cross-sell Digi services in Romania H1 2017 H1 2018 • MVNO in Spain with Telefónic
Slide 16: Summary of Investment Highlights
Summary of Investment highlights 1 Attractive markets with structural growth 2 Market leader in pay-TV, internet and convergence Advanced infrastructure: nationwide fiber and mobile 3 network 4 Leading commercial proposition 5 Strong growth driven by diversified sources 6 Robust financial performanc
Slide 17: Summary: H1/Q2 2018 Financial Results
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 H1/Q2 2018 Financial Results 17 Private & Confidential
Slide 18: Group overview
Group overview Romania Hungary5 Spain & Other4 ‘Mil € Total3 Total3 3 months 6 months 3 months 6 months 3 months 6 months 3 months 6 months June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2018 2018 2018 2018 2018 2018 2018 2018 Revenues2 €171.2 m €335.2 m €36.6 m €73.9 m €36.
Slide 19: Financial highlights
Financial highlights Results from continuing operations Key considerations • Revenues in Romania variation- mainly as a result of: EUR m • Increase in mobile telephony ARPU. • 1 Revenues Adj. EBITDA CAPEX Increase in our fixed internet RGUs 300.0 and cable Tv 250.0 232.5 232.8 243.0 • Decrease in Ot
Slide 20: Group: Capex profile
Group: Capex profile Capex Key considerations €m • Disciplined capex approach − Focused on highest value projects 243 216 − Flexible and agnostic approach • Main investment projects: 138.3 120.5 • Fixed network has largely been upgraded in Romania and Hungary • Most mobile capex invested in Romania
Slide 21: 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 1 peers Q2 2018 Net Leverage 2 5.8x 3.8x 3 3.5x 5.3x 3.3x 3.0x 2.9x 2.8x 2.7x 2.8x 4.9x 2.8x 2.8x 2.5x 2.7x 2.3x 4 2.0x 3.8x 1.8x 1.5x 5 1.3x 3.6x 1.0x Q2 2017 2017 Q2 2018 Gross
Slide 22: Contact
Contact You can find us on: Web: www.digi-communications.ro Email: ipo.relations@digi-communications.ro 2 22 Private & Confidential 2
Slide 23: Appendix
APPENDIX 23 Private & Confidential
Slide 24: Romania: RGU & ARPU
Romania: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs June 30, Last 12 Last 3 2017 2018 months months Cable TV 2,924 3,148 224 73 Fixed internet and data 2,180 2,384 204 56 Mobile telecommunications services1 3,381 3,367 (14) (6) Fixed-line telephony 1,301
Slide 25: Hungary (Digi HU): RGU & ARPU
Hungary (Digi HU): RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs June 30, Last 12 Last 3 2017 2018 months months Cable TV 485 509 24 4 Fixed internet and data 447 482 35 6 Mobile telecommunications services1 13 11 (2) - Fixed-line telephony 366 394 28 7 DTH
Slide 26: Hungary (Invitel): RGU & ARPU
Hungary (Invitel): RGU & ARPU Results of Operations One month ended ‘Mil € June 30, 2018 Revenues €7.0 m Adjusted EBITDA €2.0 m • Stand-alone statutory revenues, as extracted from Margin % 28.3% the statutory financial accounts prepared in accordance with the Hungarian GAAP. • EBITDA estimated based
Slide 27: Other Territories: RGU
Other Territories: RGU Subscribers & ARPU RGUs Period Net Additions Ended Thousand RGUs June 30, Last 12 Last 3 20171 20181 months months Spain 742 1,124 382 124 Italy 139 209 70 14 Total 881 1,333 452 138 1 Includes mobile telephony and mobile data RGUs 27 Private & Confidential
Slide 28: Group Financial Profile
Group Financial Profile €m Debt structure Key considerations Total net debt1 as of June 30, 2018 is €896 917 million Q2 2018 896 Net Leverage2 is 2.8x and Gross Leverage is 2.8x. 780 2017 764 For the purpose of the Financial Indebtedness and leverage computation as at 30 June 2018, as per the def
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