Altice Europe — FY2018 Earnings Presentation
21 slides from Altice Europe's earnings presentation, Mar 28, 2019
Slide 1: Altice Europe Q4 and Full Year 2018 Results
Altice Europe Q4 and Full Year 2018 Results March 28, 2019
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: Altice Europe Q4 and Full Year 2018 Summary Review
Altice Europe Q4 and Full Year 2018 Summary Review A year of execution on Altice Europe turnaround and deleveraging 1 Separation of Altice USA, simplification of Altice Europe and best management in place 2 Operational turnaround paving the way to growth 3 Enhanced investment in best-in-class infras
Slide 4: SFR Strong Commercial Performance
SFR Strong Commercial Performance Outstanding turnaround in net adds driven by operational improvements B2C fixed net adds B2C mobile postpaid net adds (‘000) (‘000) Fixed B2C base 6.1m +6% YoY B2C mobile postpaid base 13.5m +8% YoY of which Fibre 41% +333 +166 +385 +1,022 +72 +83 +13 +237 +213 +187
Slide 5: SFR Operational Turnaround
SFR Operational Turnaround Year of transition in 2018 paving the way to growth in 2019 Back to Altice basics in 2018 (Q4-18 vs. Q4-17) Paving the way to growth in 2019 • Improvements in infrastructure (4G, fibre, IT) Churn More fibre Higher fibre net adds driving higher ARPU Dropped calls: -15% Yo
Slide 6: MEO Strong Commercial Performance
MEO Strong Commercial Performance Sustained subscriber growth in both fixed and mobile segments B2C fixed net adds B2C mobile postpaid net adds (‘000) (‘000) Fixed B2C base 1.6m +1.7% YoY B2C mobile postpaid base 3.0m +5% YoY of which Fibre 51% +141 +8 +8 +26 +95 +6 +6 +4 +38 +37 +33 +34 +32 +49 +46
Slide 7: Significant Network Investments
Significant Network Investments Continued rapid expansion of premium proprietary infrastructure Fiber Homes Passed 4G Population Coverage (Dec-18) vs. vs. Dec-17 +3m +9m +0.5m +1.3m Dec-17 +3.7pp +1.3pp +0.6pp +36.5pp 22 98.7% 98.3% 99.4% 97.5% 16 8 4 5.3 2 4.5 0.8 0.8 14 10 4.5 3.6 1 1 2 2 3 3 4 4
Slide 8: Optimization of Infrastructure Economics Through Partnerships
Optimization of Infrastructure Economics Through Partnerships €8bn of infrastructure value crystalized and €4bn of cash proceeds1 with material operational benefits French towers French FTTH1 Portuguese towers Dominican towers (50% of SFR total sites) (mid & low dense areas) Enterprise value €3.6bn
Slide 9: France Revenue Trends
Altice France Revenue Trends Positive sequential trends with all segments including residential growing QoQ Components of Q4 2018 revenue trends1 (€m) +0.3% YoY ex VAT (-2.0% YoY reported) +6.7% QoQ • Residential: +3.8% QoQ, -4.9% YoY ex VAT 2,698 2,645 161 2,480 203 244 147 293 • Business services:
Slide 10: Portugal Revenue Trends
Altice Portugal Revenue Trends Telecom business back to growth in Q4 2018 Components of Q4 2018 revenue trends1 (€m) -0.1% YoY +0.2% QoQ • Residential: +0.2% QoQ, -0.3% YoY 527 525 526 42 33 38 Residential 42 50 42 • Business services: +2.3% YoY + Business services: • B2B: +3.0% YoY +0.7% YoY 144 14
Slide 11: Pro Forma Financials
Altice Europe Pro Forma Financials IFRS 15 Financials1 Growth YoY Growth YoY Growth YoY Growth YoY In million Euros Q4-17 Q4-18 Reported Constant FX FY-17 FY-18 Reported Constant FX France 2,698 2,645 -2.0% -2.0% 10,702 10,240 -4.3% -4.3% Portugal 527 526 -0.1% -0.1% 2,142 2,075 -3.1% -3.1% Israel 2
Slide 12: FY 2018 Guidance Achieved and FY 2019 / Mid-Term Outlook
FY 2018 Guidance Achieved and FY 2019 / Mid-Term Outlook FY 2018 Guidance Acheived Guidance Actuals Altice France OpFCF €1.5-1.6bn €1.52bn Altice Europe (ex Altice TV) OpFCF €2.3-2.5bn €2.36bn1 FY 2019 and Target Leverage FY 2019: Revenue growth of between 3% to 5% YoY Altice France FY 2019: Adj
Slide 13: Pro Forma Debt Capital Structure
Altice Europe Pro Forma Debt Capital Structure1 Diversified silos Altice Europe N.V Gross Debt €32,462m Net Debt €28,809m Gross Leverage 6.4x Net Leverage 5.6x Altice Luxembourg consolidated 3.74%4 Gross Debt €30,734m Altice Corporate Net Debt €27,358m Altice USA Inc. Financing S.à r.l. (ACF) Gross
Slide 14: Debt Maturity Profile
Altice Europe Debt Maturity Profile1 Long-dated maturities Altice maturity profile (€bn) 0.2 0.3 1.6 4.3 2.7 2.7 5.3 12.2 2.3 0.7 WAL of 6.0 years WACD of 5.7% €5.8 bn available liquidity1 86% fixed interest debt 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Altice Europe Restricted Groups Altic
Slide 15: Hidden Value
Altice Europe Hidden Value A full set of strategic fixed and mobile infrastructure assets in all geographies and high value stakes 100% 100% FTTB Network (10m HP) FTTH Network (3.6m HP1) Fully modernized FTTB network delivering up to 1Gb/s Leading network operator in Portugal and on track for nation
Slide 16: Q&A
Q&A 16 alti
Slide 17: Appendix
Appendix 17 alti
Slide 18: Reconciliation of non-GAAP performance measures to operating profit
Altice Europe N.V. Reconciliation of non-GAAP performance measures to operating profit1 For the twelve months ended €m December 31, 2018 Revenue 14,255.2 Purchasing and subcontracting costs -4,480.8 Other operating expenses -3,134.5 Staff costs and employee benefits -1,545.7 Total 5,094.2 Share-base
Slide 19: Pro forma net leverage reconciliation as of December 31, 2018
Altice Europe N.V. Pro forma net leverage reconciliation as of December 31, 2018 €m Altice Europe N.V Reconciliation to Swap Adjusted Debt Actual Pro Forma Total Debenture and Loans from Financial Institutions 33,093 33,093 Value of Debenture and Loans from Financial Institutions in Foreign Currency
Slide 20: Pro forma net leverage reconciliation as of December 31, 2018
Altice Europe N.V. Pro forma net leverage reconciliation as of December 31, 2018 €m Altice Luxembourg Consolidated Altice Altice Europe Altice Altice Altice Lux Altice TV ACF Europe N.V Altice Europe N.V (Pro Forma) Altice France Eliminations N.V International Luxembourg Conso Consolidated Gross Deb
Slide 21: IFRS 16: Impact on KPIs
Altice Europe N.V. IFRS 16: Impact on KPIs KPI IFRS 16 impact Comments Adjusted EBITDA Income (after operating leases and No Statement impact • Unchanged Adjusted EBITDA definition before financial leases) Cash Flow No • Unchanged Capex definition Adjusted EBITDA - Capex Statement impact • Unchanged