Altice Europe — Merger or Acquisition (November 2018)
19 slides from Altice Europe's merger presentation, Nov 30, 2018
Slide 1: Creation of a Leading FTTH Wholesaler in France
Creation of a Leading FTTH Wholesaler in France November 30, 2018
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitatio
Slide 3: The Transaction
The Transaction 3 altice
Slide 4: Creation of a Leading Passive FTTH Infrastructure Wholesaler in France
Creation of a Leading Passive FTTH Infrastructure Wholesaler in France ✓ 5 million FTTH homes in medium and low dense areas (AMII1 area + 12 PINs2) awarded to date to SFR ✓ 1 million homes built by year-end and the project to roll-out the additional 4 million homes (passive infrastructure only) are
Slide 5: Altice France – The Largest Very High Speed Fixed Network
Altice France – The Largest Very High Speed Fixed Network Long term partner of French local territories ✓ 100%-owned active network and national backbone ✓ 100%-owned fully modernized FTTB network covering 9 million homes delivering up to 1Gb/s (10 million including 1-play homes to be modernized ) ✓
Slide 6: Creation of SFR FTTH
Creation of SFR FTTH A new open platform dedicated to future infrastructure wholesale business in medium and low dense areas Altice France ✓ 1 million FTTH homes built by year-end and 4 million more awarded Very Medium and low dense areas dense areas ✓ Altice France to provide technical services to
Slide 7: Entry of Financial Infrastructure Partners in SFR FTTH
Entry of Financial Infrastructure Partners in SFR FTTH Attractive valuation terms and fully funded project with non-recourse debt ✓ Value crystallization Altice France Partners Acquisition of a 49.99% stake for €3.6bn1 equity value for infrastructure assets in early stages a €1.8bn cash consideratio
Slide 8: Financial Partners of the Highest Quality
Financial Partners of the Highest Quality Long-term and solid infrastructure experienced partners with a strong track-record ✓ Allianz Capital Partners is a wholly- ✓ AXA IM is a wholly-owned subsidiary ✓ OMERS Infrastructure is the exclusive owned subsidiary of Allianz SE, one of of AXA Group, one
Slide 9: The Industrial Project
The Industrial Project 9 altice
Slide 10: Creation of the Leading Alternative French FTTH Platform
Creation of the Leading Alternative French FTTH Platform With 5 million awarded FTTH homes, SFR FTTH is the leading alternative French FTTH platform in medium and low dense areas AMII1 Existing PINs2 Private Initiative Public Initiative 14 million HPs opportunity 10 million HPs opportunity Exclusive
Slide 11: SFR FTTH Benefits from a Buoyant Retail Market
SFR FTTH Benefits from a Buoyant Retail Market Attractive wholesale business case and potential for rapid asset monetization 1 2 3 Unanimous Demand for Large B2B fibre push from fibre driven by opportunity every retail evolving (public sector, platform once customer businesses, infrastructure usage
Slide 12: Only Wholesale FTTH Operator in its Footprint
Only Wholesale FTTH Operator in its Footprint No business case for “over-builders“ comforting strong expected take-up rate and full return for the infrastructure operator Medium-dense ✓ Orange and Altice France committed to support each other’s FTTH roll-out in their respective areas (AMII) ✓ Reluct
Slide 13: An Independent “Open Network” Approach
An Independent “Open Network” Approach Commercial agreements with retail operators are based on a reference offer providing non-discriminatory terms and conditions and no volume commitments for SFR Reference access offer identical for all retail operators Other B2C / B2B Regional or International Op
Slide 14: Long-term Partnership Secured with Altice France
Long-term Partnership Secured with Altice France Altice France acting as the industrial partner and a strong anchor customer ✓ Altice France will manage the construction, the B2C/B2B end-user connections and the maintenance of SFR FTTH (c.4 million homes to be built over time, 5 million homes passed
Slide 15: The Benefits for Altice
The Benefits for Altice 15 altice
Slide 16: Altice France Will Benefit from Untapped Market Potential
Altice France Will Benefit from Untapped Market Potential Roll-out of new FTTH homes will enable both SFR retail operator and SFR FTTH to grow their revenues Growing number of connectable fibre Larger fibre addressable market for homes passed (+ 4 million homes) SFR (+ 4 million homes) No business c
Slide 17: Altice Europe Delivers on its Commitment to Grow and Deleverage
Altice Europe Delivers on its Commitment to Grow and Deleverage Organic Business Infrastructure High Value Stakes ✓ Positioned for growth in 2019 ✓ Deleveraging from: ✓ 50.01% stake in SFR TowerCo ✓ No new one-off cash-flow items; back ▬ Proceeds €1.8bn (49.99% of €3.6bn ✓ 50.01% stake in SFR FTTH t
Slide 18: Q&A
Q&A 18 altice
Slide 19: Appendix
Appendix 19 altice
Altice Europe — Merger or Acquisition (November 2018) on 6ix