Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q3 2022 Earnings Presentation
42 slides from Cyfrowy Polsat Sa's earnings presentation, Nov 15, 2022
Slide 1: Financial results Q3'22
Financial results Q3’22 15 November 2022
Slide 2: Disclaimer
Disclaimer This presentation may include forward-looking statements, understood as all statements (other than statements of historical facts) regarding our financial results, business strategy, plans and objectives pertaining to our future operations (including development plans related to our produ
Slide 3: Speakers
Speakers MIROSŁAW BŁASZCZYK MACIEJ STEC KATARZYNA OSTAP-TOMANN STANISŁAW JANOWSKI PRESIDENT OF THE MGMT BOARD VICE-PRESIDENT FOR STRATEGY MEMBER OF THE MGMT BOARD, CFO PRESIDENT, TELEWIZJA POLSAT 3
Slide 4: Agenda
Agenda 1. Key events in Q3’22 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q3'22
Key events in Q3’22 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q3'22
Key events in Q3’22 ● We successfully pursue our multiplay strategy targeted at building customer loyalty (churn at the level of only 6.8%) and customer value (contract B2C and B2B ARPU +4% YoY, prepaid ARPU +9% YoY) ● We dynamically support on-shore wind farm projects. Five projects with total capa
Slide 7: Operating results
Operating results
Slide 8: Media segment: TV and online
Media segment: TV and online Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 9: The number of users of our Internet portals increased to almost 21 million
The number of users of our Internet portals increased to almost 21 million ● We are a leading Internet publisher in Poland Average monthly number of users thanks to the acquisition of Interia.pl 19.9 20.5 21.0 22.0 22.3 21.7 17.4 17.9 16.5 17.6 (millions of RU) ● Our leading position in the online m
Slide 10: Viewership of our channels in Q3'22
Viewership of our channels in Q3’22 ● Viewership results of TV Polsat Group Audience shares channels in line with the strategy despite the Main channels Thematic channels negative impact of refarming to the DVB-T2 7.5% 8.0% 6.0% 5.7% 15.0% 15.4% 10.4% standard Polsat TVN TVP1 TVP2 POLSAT (2) Warner
Slide 11: Position on the advertising market in Q3'22
Position on the advertising market in Q3’22 Market expenditures on TV advertising ● Increase of advertising and sponsorship and sponsorship revenue of TV Polsat Group against the -1.2% 948 936 backdrop of a declining market (mPLN) ● As a result, our share in the TV advertising and sponsorship market
Slide 12: Viewership of our channels in 9M'22
Viewership of our channels in 9M’22 ● Our main channel is the viewership leader in Audience shares the commercial group (16-59 age group) Main channels Thematic channels 7.9% 7.9% 16.3% 15.0% 5.9% 5.5% 9.8% Polsat TVN TVP1 TVP2 POLSAT Warner TVP Bros.Discovery(3) Dynamics of audience share results 2
Slide 13: Position on the advertising market in 9M'22
Position on the advertising market in 9M’22 Market expenditures on TV advertising ● Increase of advertising and sponsorship and sponsorship revenue of TV Polsat Group against the -1.5% 3,097 3,051 backdrop of a declining market (mPLN) ● As a result, our share in the TV advertising and sponsorship ma
Slide 14: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 15: Nearly 2.5 million customers of the multiplay offer
Nearly 2.5 million customers of the multiplay offer ● Consistent implementation of our multiplay Number of multiplay customers1 strategy results in a stable increase in the +1% (thous. customers) 3000 65% 2,445 2,460 2,465 number of customers with bundled services 2500 60% 55% 2000 by 20K YoY 1500 4
Slide 16: We provide over 13.3m services to contract B2C customers
We provide over 13.3m services to contract B2C customers ● We maintain a high, stable number of Number of RGUs in the B2C contract segment mobile telephony and Internet services -1% 13.49m 13.35m 13.34m ● At the same time – in line with our earlier 2.0m 2.0m 2.0m statements – we have noted a reducti
Slide 17: ARPU growth in B2C thanks to multiplay strategy and 5G tariffs
ARPU growth in B2C thanks to the consistent implementation of our multiplay strategy and popularization of 5G tariffs 74 3 +3.9% ● 3.9% YoY increase in ARPU resulting from 72 71.3 3 70.2 the consistent building of the value of the 70 68.6 2 existing customer base 68 2 ● Effective upselling of produc
Slide 18: Growing base and ARPU of prepaid services
Growing base and ARPU of prepaid services ● The scale of the mobile telephony RGU base Prepaid RGU positively influenced by the effects of the 2.77m 2.77m 2.83m support action consisting in the distribution of free starters for refugees from Ukraine ● Increase in ARPU thanks to changes in our Q3'21
Slide 19: High base and growing ARPU of B2B customers
High base and growing ARPU of B2B customers ● Polsat Plus Group serves 69.1 thous. B2B Number of B2B customers customers, successfully maintaining the size 68.8k 68.8k 69.1k of this base ● Successively expanded offer of communication and ICT services enables us Q3'21 Q2'22 Q3'22 to increase ARPU fro
Slide 20: Clean energy segment
Clean energy segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 21: Goal #1: leading producer of clean, green energy
Goal #1: We want – jointly with ZE PAK – to become a leading producer of clean, green energy thermal waste biomass solar wind on-shore wind off-shore nuclear treatment Goal: Goal: Goal: Goal: Goal: Goal: 100 MW 600 MW 250 MW 2 installations support support Source: GE Hitachi Nuclear Energy 100 MW 70
Slide 22: Goal #2: leading producer of green hydrogen
Goal #2: We want – jointly with ZE PAK – to become a leading producer of green hydrogen production of storage and distribution of green energy end-user products end-user products green hydrogen transportation green hydrogen Solar energy Goal: Goal: Goal: Goal: Goal: Wind energy Electrolysis plant 10
Slide 23: Rapid implementation of further Clean Energy projects
We are working intensively on the rapid implementation of further Clean Energy projects ● The largest photovoltaic farm in Poland, located on a >100ha plot in Brudzew, produced 69.8 GWh of clean, green energy in 9M'22. Therefore, we are already working on its expansion by another 12.4MWp ● We acquir
Slide 24: Strategic initiatives for production of clean, green energy
We are well advanced in implementing our strategic initiatives related to the production of clean, green energy Drzeżewo BIOMASS SOLAR WIND ON-SHORE THERMAL WASTE 100 MW 280 MW 190 MW TREATMENT Człuchów turbine #1 Brudzew Kazimierz Biskupi Rybnik capacity: 50 MW capacity: 70 MWp capacity
Slide 25: Developing the complete value chain based on green hydrogen
We are dynamically developing the complete value chain based on green hydrogen ● We have been intensively promoting the NesoBus. Our hydrogen- powered bus, a fully ecological means of transport based on a Polish product, was awarded a medal at the 2022 Transexpo Mass Transport Trade Fair in Kielce.
Slide 26: Hydrogen and the global goal: Zero Emissions Economy by 2050
Introducing hydrogen contributes significantly to the implementation of the global goal: Zero Emissions Economy by 2050 26
Slide 27: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 28: Results of the Group in Q3'22
Results of the Group in Q3’22 Revenue Adjusted EBITDA1 +7.9% 3,271 -7.1% 904 840 3,032 Q3'21 Q3'22 Q3'21 Q3'22 LTM FCF Net debt/EBITDA LTM -26.9% 2.64x 1,442 1,054 1.01x Q4'21 Q3'22 Q4'21 Q3'22 Source: Consolidated financial statements for the 9-month period ended 30 September 2022 and internal anal
Slide 29: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue Adjusted EBITDA1 +8% | +239m 4,595 3,271 3,032 +74 -40 +54 +151 -7% | -65m 953 904 840 -3,691 -28 -41 +10 -5 +113 (mPLN) 152% (mPLN) 30% 29% 26% EBITDA margin Revenue B2C and B2B Media Real estate Consolidation Revenue EBITDA One-off Adjusted B2C and M
Slide 30: CF reflects prioritization of our investments
CF reflects the prioritization of our investments and the preparation of cash resources for further investments mPLN Q3’22 9M’22 Adjusted FCF after interest Net cash from operating activities 644 1,090 • UMTS fee • Increased • Decline in • Inflationary • UMTS fee inventory liabilities pressure on (E
Slide 31: CF reflects prioritization of our investments
CF reflects the prioritization of our investments and the preparation of cash resources for further investments FCF 9M’22: PLN 621m -889.8 1,958.2 643.3 -739.0 -481.3 CAPEX1 3,644.3 /revenue -405.3 8.6% -868.0 (mPLN) -838.0 1,596.1 -393.9 -34.4 Cash and Net cash Net cash used Payment of Gain on Acqu
Slide 32: The Group's debt
The Group’s debt Debt structure Carrying amount by instrument type by currency mPLN as at Bonds 30 Sep. 2022 20% SFA (Tranche A and B) 8,201 Banking debt PLN 80% 100% Revolving Credit Facility (RCF) - Bonds 2,070 Leasing and other 525 Gross debt 10,796 Debt maturing profile As at 30 Sept. 2022 Cash
Slide 33: Summary and Q&A
Summary and Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 34: Summary & Q&A
Summary & Q&A ● We are successfully pursuing our multiplay strategy, which translates into very low churn (6.8%) and growing ARPU (71.3 PLN), leading to a stable, recurring growth of retail revenue ● We are dynamically implementing our Strategy 2023+ in the clean energy segment: we have contracts in
Slide 35: Additional information
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Slide 36: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services YoY mPLN Q3’22 change ● Successive building of ARPU across all customer segments translates into stable Revenue 2,744 6% growth of retail revenue. The revenue from sale of equipment has also been growing Operating costs(1) 1,980 9% dynamically ● Inflati
Slide 37: Results of the media segment
Results of the media segment YoY mPLN Q3’22 change ● Revenue under the positive influence of growing advertising revenue, revenue from Revenue 554 11% cable/satellite operators and from sales of licenses, sub-licenses and copyrights Operating costs(1) 475 24% ● We view the area of content production
Slide 38: Results of the real estate segment
Results of the real estate segment mPLN Q3’22 ● The real estate segment mainly focuses on Revenue 74 construction projects but it also includes sale, rental and management of own and leased property Operating costs(1) 64 ● At present, within this segment we have an EBITDA 10 inventory of apartments
Slide 39: Revenue structure
Revenue structure mPLN ● Increase in retail revenue as a result of the successful 1,753 execution of our strategy aimed at building customer value, Retail revenue 1,707 3% which is reflected in high dynamics of ARPU growth from both contract B2C and B2B customers as well as prepaid customers 841 W
Slide 40: Operating costs structure
Operating costs structure mPLN ● Higher technical costs and cost of settlements with Technical costs and cost of settlements 823 telecommunication operators mostly due to the recognition of with telecommunication operators 790 4% significantly higher electricity costs YoY Depreciation, amortizatio
Slide 41: Glossary
Glossary RGU (Revenue Single, active and retail revenue generating service of pay TV provided in all types of access technologies, mobile Generating Unit) or fixed-line Internet access, or mobile telephony provided in the contract or prepaid model. A natural person, legal entity or an organizational
Slide 42: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warszawa Tel.: +48 (22) 426 85 62 +48 (22) 356 65 20 +48 (22) 337 93 14 Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl