Altice SA — FY2012 Earnings Presentation
19 slides from Altice SA's earnings presentation, Mar 28, 2013
Slide 1: Investors Call Presentation Full-year 2012 Results
INVESTORS CALL PRESENTATION Full-‐year 2012 Results March 28th , 2013
Slide 2: Safe Harbour
“Safe Harbour” NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES This presenta9on does not cons9tute or form part of, and should not be construed as, an offer or invita9on to sell securi9es of Al9ce Finco S.A., Al9ce Financing S.A. or Cool Holdings Limited or any of their subsid
Slide 3: Highlights
Highlights Cable Mobile Liquidity & Other o Con9nued growth in o Successful UMTS launch in o Take private completed Cable EBITDA for the last May 2012 on Dec 27th 2012 3 years o 441,000 UMTS subscribers o Liquidity of 745mln and o Pay TV market share o UMTS network is covering 90% of debt due beyond
Slide 4: Cable & Mobile Operating Performance
2012 Cable & Mobile OperaMng Performance March 27 , 2013 Page 4
Slide 5: Year-End 2012 Dashboard – Cable
Year-‐End 2012 Dashboard – Cable 2012 2011 YoY Change Cable Customers 1.198 1.245 (4%) Cable RGU ('000) 2.343 2.294 2% Cable RGU per Customer 1,96 1,84 6% Cable ARPU per Customer (nis) 220 211 4% Cable Revenue (mnis) 3.361 3.308 1,6% Cable EBITDA (mnis) 1.467 1.388 5,7% Cable Capex Accrued (mnis) 9
Slide 6: Cable Growth in RGUs driven by Triple Play services
Cable Growth in RGUs driven by Triple Play services RGU (‘000) RGU per subscriber 7% 6.5% 2,343 2,294 1.96 2,253 34% 1.93 28% 1.91 RGU 2,189 24% 220 1.88 3play % 19% 211 1.84 202 ARPU 191 2009 2010 2011 2012 Q4-‐11 Q1-‐12 Q2-‐12 Q3-‐12 Q4-‐12 • Increase in ARPU is resul9ng from higher number of
Slide 7: Subscribers Net Adds by Product
Subscribers Net Adds by Product Cable Subscribers (#) TV Subscribers (#) 1,315 1,280 Market share 61% 1,245 1,198 908 891 891 896 + 5 K yoy 2009 2010 2011 2012 2009 2010 2011 2012 Telephony Lines(#) Internet Subscribers (#) Market share 20% Market share 50% ¹ 676 768 771 635 752 610 719 562 + 3 K yo
Slide 8: Cable Exploiting bandwidth advantage
Cable Exploi9ng bandwidth advantage More Speed Average Bandwidth (Mega) 16.7 M 15.4 M 6% 13.1 M 16% 17% 9.4 M 41% 54% 6.0 M 6.6 M 9.7 M 5.5 M 9.0 M 37% 4.9 M 7.5 M 8.3 M 6.7 M 6.0 M 45% 4.8 M 5.3 M Q1-‐11 Q2-‐11 Q3-‐11 Q4-‐11 Q1-‐12 Q2-‐12 Q3-‐12 Q4-‐12 40% 58% HOT Bezeq 44% 32% 7% Q4-‐11 Q
Slide 9: Triple Play Opportunity
Triple Play Opportunity ARPU Breakdown – New vs Churning Bundling Opportunity 1.2M ARPU (nis) DOUBLE subscribers SINGLE New Customer 250 0.2M 0.6M Churning Customer 180 TRIPLE 0.4M Current Product Offering Price per Month ¹ Package Services Offered (VAT included) Television : 77 s ta nda rd cha nnel
Slide 10: Year-End 2012 Dashboard – Mobile
Year-‐End 2012 Dashboard – Mobile UMTS Successfully Launched 2012 2011 YoY Change I-‐DEN Subs ('000) 325 444 (27%) UMTS Subs ('000) 441 0 TOTAL Subs ('000) 766 444 73% Mobile Revenue -‐ Services (mnis) 683 722 (5%) Mobile Revenue -‐ Handsets (mnis) 172 177 (3%) TOTAL Mobile Revenue (mnis) 855 89
Slide 11: Synergies and reorganization on track
Synergies and reorganizaMon on track n Management team aligned for future growth, Hertzel Ozer/Patrice Giami are heading up the opera9ons n Cost efficiencies analysed in detail, execu9on plan in place n Structural Separa9on is expected to end by the end of 2013, full integra9on of Cable and Mobile
Slide 12: Financial Results Performance
2012 Financial Results Performance March 27 , 2013 Page 12
Slide 13: Revenues & EBITDA
Revenues & EBITDA Revenues (mnis) ¹ EBITDA (mnis) ¹ 4,203 4,192 1,616 1,477 899 855 218 3,319 3,361 1,398 1,467 2011 2012 2011 2012 Cable Mobile Cable Mobile • Cable EBITDA grew 5% YoY, Cable EBITDA margin reached 43.6% in 2012 • I-‐DEN EBITDA reinvested into UMTS launch • UMTS revenue amounts to N
Slide 14: Quarterly EBITDA Progression
Quarterly EBITDA Progression 39% 35% 36% 33% 33% • Stable Cable EBITDA growth TOTAL 359 402 371 352 352 • Cable EBITDA Q4-‐11 Q1-‐12 Q2-‐12 Q3-‐12 Q4-‐12 margin grew from 43% 43% 44% 44% 40% 40% to 44% margin during 2012 Cable 333 363 363 369 372 Q4-‐11 Q1-‐12 Q2-‐12 Q3-‐12 Q4-‐12 • Mobile
Slide 15: Capital Expenditures
Capital Expenditures CAPEX Accrued – Cable (mnis) CAPEX Accrued –Mobile (mnis) 971 61 99 580 85 344 415 34 178 128 235 63 91 75 43 276 198 288 116 2011 2012 2011 2012 Installation & Network End-‐user e quipment Headend Info. systems and Software Infrastructures Info. systems and Software Capitaliza
Slide 16: Liquidity & Leverage 2012
Liquidity & Leverage 2012 (mnis) !(NIS!in!millions)! As!of!December!31,!2012! HOT! Altice! Combined! Group! Unsecured)bonds)HOT)(4)) 1,451) ) 1,451) Senior)Secured)Notes)Altice)(1)) ) ))))))2,755) 2,755) Senior)Notes)Altice)(2)) ) 1,588) 1,588) Total!Altice!Restricted!Group!Bonds! 1,451! 4,343! 5,79
Slide 17: Guidance 2013
Guidance 2013 EBITDA growth 8-10% EBITDA – CAPEX ≈ 700m Cable capital intensity to normalize Reduction of UMTS avg roaming expenses to ≈ 50% March 27 , 2013 Page 17
Slide 18: Q&A
Sattice Q&A
Slide 19: Thank you
Sattice Thank you