Altice Europe — Altice France — Q4 2020 Earnings Presentation
18 slides from Altice Europe's earnings presentation, Mar 1, 2021
Slide 1: Altice France Q4 2020 Results
Altice France Q4 2020 Results March 1, 2021
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: Q4 2020 Summary
Q4 2020 Summary Subscriber net additions across segments, launch of 5G commercial offers in Q4 2020 80MHz of spectrum secured as part of the 5G spectrum auction Residential revenue and EBITDA growth continued in Q4 2020: • Total residential revenue ex roaming grew by +3.3% YoY • Telecom EBITDA grew
Slide 4: Hivory Transaction
Hivory Transaction Value crystallization at an €5.2 billion enterprise value at 100% for non-strategic infrastructure asset attractive multiple vs. €3.6 billion based on 2018 transaction, with comparable EBITDA €2.65 billion in cash expected at closing (sale of 50.01%) Immediate cash proceeds Intend
Slide 5: Significant Premium Proprietary Infrastructure Retained
Significant Premium Proprietary Infrastructure Retained Wholly-owned, fully modernized FTTB network delivering up to 1Gb/s (10m HP) Wholly-owned FTTH network in very dense areas (1m HP) 50.01% in SFR FTTH / Covage (3m HP growing to c.7m HP in the mid-term) Nationwide fibre backbone (88,000 k
Slide 6: FY 2020 Corporate Highlights
FY 2020 Corporate Highlights Customers Employees Infrastructure Investment Environment • Ensured reliable access to • Focus on safety of all • Continued rapid expansion of • Ongoing focus on developing critically important connectivity employees, new protocols such proprietary infrastructure, with r
Slide 7: Commercial Performance: Residential and B2B Bases Growing
Commercial Performance: Residential and B2B Bases Growing Residential fixed net adds Residential postpaid mobile net adds (‘000) (‘000) +76 +196 +44 +37 +99 +79 +70 +21 +8 +25 +98 +71 +100 +113 +152 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Total Fibre Residential fixed base: 6.5m
Slide 8: Revenue Trends
Revenue Trends Total Telecom ex roaming Q4 2020 revenue trends YoY (€m) (€m) +0.2% • Telecom ex roaming: +0.2% 2,978 2,937 • Residential services ex roaming: +3.3% 123 97 2,804 2,809 • Business services ex roaming: -7.9% (-1.1% adjusted for RAN sharing accounting 1,097 1,002 980 benefit in Q4 2019)
Slide 9: Summary Financials
Summary Financials Q4-19 Q4-20 Growth YoY FY-19 FY-20 Growth YoY €m Residential services 1,538 1,578 +2.6% 6,044 6,159 +1.9% Residential equipment 220 260 +18.3% 704 700 -0.6% Business services 1,097 1,002 -8.6% 3,597 3,739 +3.9% Telecom 2,855 2,840 -0.5% 10,345 10,597 +2.4% Media 123 97 -21.1% 402
Slide 10: Q4 2020 Free Cash Flow
Q4 2020 Free Cash Flow (€m) 1,155 (813) 402 342 (596) (194) 280 (27) Adjusted Accrued OpFCF Interest Taxes Change in WC FCF EBITDA Capex & other For footnotes see slide 18 10
Slide 11: Capital Structure and Debt Maturity
Capital Structure and Debt Maturity Altice France Restricted Group (€bn) Net debt €21,852m WAL 5.7 years 0.2 0.1 0.1 0.1 3.2 9.1 5.1 3.6 0.9 WACD 4.7% Fixed interest 91% Net leverage 4.9x Liquidity €2.1bn Altice France Holding Net debt €4,282m WAL 6.7 years WACD 6.5% Fixed interest 100% Altice Franc
Slide 12: FY 2020 Achievements and Guidance
FY 2020 Achievements and Guidance • Residential service revenue growth ex roaming of +2.8% YoY supporting total telecom revenue growth of +2.4% YoY 2020 achievements • Total telecom EBITDA growth of +3.0% YoY and telecom OpFCF growth of +2.0% YoY • Altice France ending net leverage of 4.9x • FY 2021
Slide 13: Q&A
Q&A 13 alti
Slide 14: Appendix
Appendix 14
Slide 15: Net Debt Reconciliation as of December 31, 2020
Net Debt Reconciliation as of December 31, 2020 €m Altice France Reconciliation to Swap Adjusted Debt Restricted Group Total Debenture and Loans from Financial Institutions 21,319 Value of debenture and loans from financial Institutions in foreign currency converted at closing FX rate -31,131 Value
Slide 16: Pro Forma Net Leverage Reconciliation as of December 31, 2020
Pro Forma Net Leverage Reconciliation as of December 31, 2020 Altice France €m Restricted Group Gross Debt Consolidated 22,393 Cash -542 Net Debt Consolidated 21,852 LTM Standalone 4,277 Eliminations - LTM EBITDA Consolidated 4,277 Pro Forma L'Express / Libération 6 LTM EBITDA Consolidated Pro Forma
Slide 17: Non-GAAP Reconciliation to Unaudited GAAP Measures
Non-GAAP Reconciliation to Unaudited GAAP Measures For the twelve months ended €m December 31, 2020 (unaudited) Revenue 10,926.1 Purchasing and subcontracting costs -3,125.5 Other operating expenses -1,700.0 Staff costs and employee benefits -1,022.5 Total 5,078.1 Share-based expense 8.6 Rental expe
Slide 18: Footnotes
Footnotes €2.1 billion liquidity includes €1.6 billion of undrawn revolvers and €0.5 billion of cash Pages 3, 11 All references made to Altice France liquidity is actual liquidity as per December 31, 2020 Full-year organic FCF target excludes spectrum and significant litigation paid and received Pag