Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q4 2022 Earnings Presentation
47 slides from Cyfrowy Polsat Sa's earnings presentation, Apr 20, 2023
Slide 1: Financial results Q4'22 / FY 2022
Financial results Q4’22/ FY 2022 20 April 2023
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 2022 2. Operating results 3. Financial results 4. Summary of 2022 and objectives for 2023
Slide 5: Key events in 2022
Key events in 2022 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in 2022
Key events in 2022 Connectivity Content Clean Energy • We effectively implement our multiplay • We invest in attractive content: • We dynamically develop our wind farm strategy while building value and loyalty – exceptional Disney+ offer projects – almost 300 MW already under of our customer base co
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: We effectively build our position on the market of Internet portals
We effectively build our position on the market of Internet portals ● We are a leading Internet publisher in Poland Average monthly number of users thanks to the acquisition of Interia.pl 20.5 21.2 21.1 22.6 23.3 22.1 18.0 18.5 17.2 18.6 (millions of RU) ● Our leading position in the online media: −
Slide 10: Viewership of our channels in Q4'22
Viewership of our channels in Q4’22 ● Good viewership results of TV Polsat Group Audience shares channels in Q4'22 despite the negative Main channels Thematic channels 8.3% 8.2% impact of refarming to the DVB-T2 standard 7.8% 6.0% 13.8% 14.1% 9.7% and the UEFA World Cup broadcast on public TV channe
Slide 11: Position in the advertising market in Q4'22
Position in the advertising market in Q4’22 Market expenditures on TV advertising ● Growing advertising and sponsorship and sponsorship revenue of TV Polsat Group against the -0.3% 1,450 1,446 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 2022
Viewership of our channels in 2022 ● Good viewership results of TV Polsat Group Audience shares channels in 2022 despite the negative impact Main channels Thematic channels of refarming to the DVB-T2 standard 7.9% 8.0% 6.5% 5.7% 14.7% 15.8% 9.8% Polsat TVN TVP1 TVP2 POLSAT (2) Warner TVP Bros.Discov
Slide 13: Position on the advertising market in 2022
Position on the advertising market in 2022 Market expenditures on TV advertising ● Growing advertising and sponsorship and sponsorship revenue of TV Polsat Group against the -1.1% 4,547 4,497 backdrop of a declining market (mPLN) ● As a result, our share in the TV advertising and sponsorship market
Slide 14: We invest in state-of-the-art production facilities in the media segment
We invest in state-of-the-art production facilities in the media segment 14
Slide 15: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 16: Nearly 2.5m customers of the multiplay offer
Nearly 2.5m customers of the multiplay offer ● High, stable multiplay customer base despite Number of multiplay customers1 unfavorable market conditions (thous. customers) 3000 65% 2,457 2,465 2,462 60% ● 2500 As a result of the consistent implementation 2000 55% 50% 41% 41% 41% of the multiplay str
Slide 17: We provide nearly 13.3m services to contract B2C customers
We provide nearly 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% 13.47m 13.34m 13.28m ● At the same time – in line with our earlier 2.0m 2.0m 2.0m statements – the number of provide
Slide 18: 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 +3.8% 71.7 ● 3.8% YoY increase in ARPU resulting from 72 71.3 3 the consistent building of the value of the 70 69.1 2 existing customer base despite unfavorable 68 market condit
Slide 19: High base and growing ARPU of prepaid services
High base and growing ARPU of prepaid services ● Stable base of mobile telephony RGUs under Prepaid RGU the temporary positive effect of the support 2.67m 2.83m 2.69m action consisting in the distribution of free starters for refugees from Ukraine ● Increase in ARPU thanks to changes in our Q4'21 Q3
Slide 20: 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 68.9k 69.1k 69.1k of this base ● Successively expanded offer of communication and ICT services enables us Q4'21 Q3'22 Q4'22 to increase ARPU fro
Slide 21: Clean energy segment
Clean energy segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 22: Goal #1: become a 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 70 MW in
Slide 23: Goal #2: become a 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 green hydrogen transportation green hydrogen Solar energy Goal: Goal: Goal: Goal: Goal: Wind energy Electrolysis plant 100 MW Storage and t
Slide 24: Advanced implementation of strategic clean energy initiatives
We are very advanced in the implementation of our strategic initiatives related to the production of clean energy ENERGY FROM BIOMASS SOLAR ENERGY ON-SHORE WIND ENERGY 100 MW 280 MW >296 MW ENERGY FROM WASTE PROCESSING Turbine #1 Brudzew Miłosław Rybnik Installed capacity: 50 MW Installed ca
Slide 25: Building the full value chain of an economy based on green hydrogen
We are building the full value chain of an economy based on green hydrogen GREEN HYDROGEN STORAGE AND TRANSPORT GREEN HYDROGEN PRODUCTS FOR END-USERS PRODUCTION DISTRIBUTION First 2.5 MW electrolyzer Hydrogen trailer with H2 refueling station in We won the tender for 100 H2 cars are in use
Slide 26: Our Strategy 2023+ is an investment in the future
Our Strategy 2023+ is an investment in the future Reduction of CO2, SO2 Cleaner air New, profitable operations and harmful particle emissions Better health Development of relations with Accelerated transformation of our B2B and B2C customers Polish energy sector Better quality of life Green hydrogen
Slide 27: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 28: Results of the Group in Q4'22
Results of the Group in Q4’22 Revenue Adjusted EBITDA1 +5.0% 3,430 -8.2% 891 818 3,265 (mPLN) (mPLN) Q4'21 Q4'22 Q4'21 Q4'22 LTM FCF Net debt/EBITDA LTM -46.7% 1,442 2.86x 768 (mPLN) 1.01x Q4'21 Q4'22 Q4'21 Q4'22 Source: Consolidated financial statements for the year ended December 31, 2022 and inte
Slide 29: Results of the Group in 2022
Results of the Group in 2022 Revenue Adjusted EBITDA1 adjusted for the IC delta in H1’21 +5.5% 12,915 -8.2% 3,652 3,352 12,246 (mPLN) (mPLN) 2021 2022 2021 2022 LTM FCF Net debt/EBITDA LTM -46.7% 1,442 2.86x 768 (mPLN) 1.01x 2021 2022 2021 2022 Source: Consolidated financial statements for the year
Slide 30: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue Adjusted EBITDA1 +5% | +669m (excl. IC delta in H1’21) +4% | +471m (incl. IC) 7,700 12,444 12,915 +160 +183 -99 -198 +425 -8% | -300m -3,681 3,652 3,471 -367 3,352 +153 -189 -34 (mPLN) 62% -123 +17 -5 (mPLN) 27% 29% 26% EBITDA margin Revenue reduction
Slide 31: FCF affected by rising interest rates and pressure on OPEX
FCF affected by rising interest rates and pressure on OPEX mPLN Q4’22 2022 Adjusted FCF after interest Net cash from operating activities 672 1.762 • Increased • Decline in • Inflationary • UMTS fee • Increase in inventory liabilities pressure on (EUR 31m) Net cash from/used in investing activities
Slide 32: CF reflects prioritization of investments in green energy assets
CF reflects the prioritization of our investments in green energy producing assets FCF 2022: PLN 768m -1,171.1 2,629.7 60.1 -745.2 -724.1 757.4 CAPEX1 -414.4 3,644.3 /revenue 8.6% -868.0 -363.4 (mPLN) -903.9 -660.8 -393.9 817.8 -28.9 Cash and cash Net cash Net cash used Payment of Proceeds One-off p
Slide 33: The Group's debt
The Group’s debt Debt structure As at 31 Dec. 2022 Carrying amount by instrument type by currency mPLN as at Bonds 31 Dec. 2022 20% SFA (Tranche A and B) 7,997 Banking debt PLN 80% 100% Revolving Credit Facility (RCF) 134 Bonds 2,076 Leasing and other 531 Gross debt 10,738 Debt maturing profile As a
Slide 34: We issued sustainability-linked bonds worth PLN 2.67bn
We issued sustainability-linked bonds worth PLN 2.67bn Debt maturing profile Debt structure As at 19 Apr. 2023 As at 19 Apr. 2023 by instrument type by currency Bonds 28% PLN 100% 6,208 Bank debt 72% (mPLN) 2,670 Our environmental goals 2025 2030 800 1,000 308 164 KPI 1 Reduction by Reduction by Red
Slide 35: We invest in the future
We invest in the future Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 36: Strategy 2023+: we invest in innovations, we invest in the future!
Strategy 2023+: we invest in innovations, we invest in the future! CONNECTIVITY CONTENT CLEAN ENERGY More than 20m people in Poland within the coverage Studio TV area of Plus’s 5G network 36
Slide 37: Summary of 2022 and objectives for 2023
Summary of 2022 and objectives for 2023 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 38: Objectives for 2022 have been achieved
Objectives for 2022 have been achieved We consistently and effectively build the value and loyalty of our customer base despite unfavourable macroeconomic and geopolitical conditions We invest in attractive content and rich portfolio of sports broadcasting rights for our viewers We offer the b
Slide 39: 2023 is the year of dynamic implementation of Strategy 2023+
2023 is the year of dynamic implementation of our Strategy 2023+: we are investing in innovations, we are investing in the future • Consistent implementation of our • Investments in attractive content: • Dynamic development of multiplay strategy TV series and sports RES projects • Further building o
Slide 40: Additional information
Additional information
Slide 41: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services mPLN Q4’22 YoY change ● Successive building of ARPU across all Revenue 2,741 3% customer segments translates into stable retail revenue growth. Revenue from the sale of equipment is also growing dynamically Operating costs(1) 2,117 11% ● Inflation press
Slide 42: Results of the media segment
Results of the media segment mPLN Q4’22 YoY change ● Revenue under the positive impact of growing Revenue 731 6% advertising revenue, revenue from cable/satellite operators and sales of licenses, sub-licenses and copyrights Operating costs(1) 539 6% ● Content production is our competitive edge EBITD
Slide 43: Results of the real estate segment
Results of the real estate segment mPLN Q4’22 ● The real estate segment mainly focuses on Revenue 65 construction projects but it also includes sale, rental and management of own and leased property Operating costs(1) 65 ● At present, within this segment we have started EBITDA 3 selling apartments i
Slide 44: Revenue structure
Revenue structure mPLN ● Increase in retail revenue as a result of the successful 1,751 execution of our strategy aimed at building customer value, Retail revenue 1,731 1% which is reflected in high dynamics of ARPU growth from both contract B2C and B2B customers as well as prepaid customers 998 W
Slide 45: Operating costs structure
Operating costs structure mPLN ● Higher technical costs and cost of settlements with Technical costs and cost of settlements 831 telecommunication operators mostly due to the recognition of with telecommunication operators 802 4% significantly higher electricity costs Depreciation, amortization, i
Slide 46: 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 47: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warszawa Tel.: +48 (22) 337 93 14 Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl