Digi Communications Nv · BVB:DIGI
Digi Communications Nv — Investor Presentation (February 2018)
20 slides from Digi Communications Nv's investor presentation, Feb 28, 2018
Slide 1: DIGI Communications N.V.
DIGI COMMUNICATIONS N.V. (“the Company” or “DIGI”) 28 February 2018 Private & Confidential 1 Private & Confidential
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 FY 17 Preliminary Financial Results 3 Private & Confidential
Slide 4: Summary: DIGI Group Profile
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 FY 17 Preliminary Financial Results 4 Private & Confidential
Slide 5: Overview of Digi Communications Group
Group Overview of Digi Communications Group FY 17 RGUs: 13,273k 100% 100% 100% Romania Hungary Spain & Italy FY 17 RGUs: 10,558k FY 17 RGUs: 1,649k FY 17 RGUs: 1,066k RGU breakdown (FY 17) RGU breakdown (FY 17) RGU breakdown (FY 17) Fixed-line DTH , 6% DTH , 18% Telephony , Cable TV , Cable TV , 12%
Slide 6: Long Track Record of Sustained Growth and Market Innovation
Group Long Track Record of Sustained Growth and Market Innovation Digi history RGU1 (m) Launch of Launch Majority FTTB Nationwide 4G internet & Network upgrade launch of launch Founded by upgrade to of MVNO data in Spain completed 1Gbps Zoltán services FTTB +900MHz speeds in Teszári targeting licenc
Slide 7: Translating into Financial Performance
Group Translating into Financial Performance Group Revenue (€ m) 13.3m RGUs as of 31 December 17 offering cross & +12.9% +8.8% 917 upsell potential 843 746 – €917m revenues and €288m Adj. EBITDA1 – 4.4m Pay-TV, 2.8m Internet & 4.5m mobile RGUs2 – Synergistic Romanian and Hungarian operations Lea
Slide 8: Summary: DIGI Core Markets
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 FY 17 Preliminary Financial Results 8 Private & Confidential
Slide 9: 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 (RGUs, Q4 16) Romania revenues (€m)2 Internet Others +5% +4% 12% TV 349 364 1 1 281 12% 13% 272 Fiber 18% 49% network 49% 20% 27% 2015 2016 9m 2016 9m 2017 +45% 12% +36% 2 122 120 Mobi
Slide 10: 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 11: Growing own mobile network
Growing own mobile network Newly built network in place Adequate spectrum capacity for growth • Own 3G network: ~99%1 population coverage MHz per 1m mobile subs2 − ~ 3,9501 mobile towers − ~ 70%1 of towers connected by fiber allowing high flexibility in providing high data usage per user − National
Slide 12: Overview of Hungarian Operations
Overview of Hungarian Operations Overview of Invitel Acquisition Market share1 • On 21 July 2017, Digi HU, acting as purchaser, signed a share-purchase agreement to acquire close to 100% of Cable TV Fixed internet the share capital and voting rights of Invitel Távközlési Zrt (“Invitel”) for a total
Slide 13: Overview of Spain and Italy Operations
Overview of Spain and Italy Operations Overview RGU • ~2m1 Romanian expatriates in Spain & Italy +7% +47% − Leading MVNO for phoning home 896 569 609 Spain − Well-known Digi brand • Highly synergistic to Romanian business − Cross-sell Digi services in Romania Q4 15 Q4 16 Q4 17 • MVNO in Spain with T
Slide 14: 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 15: Summary: Financial Results
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 FY 17 Preliminary Financial Results 15 Private & Confidential
Slide 16: Romania: RGU & ARPU
Romania: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs December 31, Steady growth in Cable TV and Internet Last 12 Last 3 subscribers 2016 20172 months months Cable TV 2,865 3,030 165 56 Increase YoY in mobile telephony RGUs and Fixed internet and data 2
Slide 17: Hungary: RGU & ARPU
Hungary: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs December 31, Increase in Cable TV, Internet and Fixed Last 12 Last 3 Telephony subscribers 2016 20172 months months Cable TV 473 500 27 5 Increase in Cable TV & DTH ARPU Fixed internet and data 428 46
Slide 18: Other Territories: RGU
Other Territories: RGU Subscribers RGUs Period Ended Net Additions Thousand RGUs1 December 31, Last 12 Last 3 2016 20172 months months Spain 609 896 287 83 Italy 86 170 84 12 Total 695 1,066 371 95 1 Includes mobile telephony and mobile data RGUs 2 FY 17 Preliminary financial results 18 Private & Co
Slide 19: Group: Capex profile
Group: Capex profile Capex Key considerations €m • Disciplined capex approach − Focused on highest value projects 243 − Flexible and agnostic approach 216 198 • Main investment projects: • Fixed network has largely been upgraded in Romania and Hungary • Most mobile capex invested in Romania • Invest
Slide 20: Group Financial Profile
Group Financial Profile €m 1000 779 773 Key considerations 800 710 15 16 50 600 758 763 400 661 Total preliminary net debt1 as of December 31, 2017 is €762.9 million Preliminary Net Leverage2 is 2.7x and 200 2015 2016 2017 Preliminary Gross Leverage is 2.7x. Net Debt Cash 3.8x 3.5x 3.3x 3.0x 3.0x
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