Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q4 2021 Earnings Presentation
41 slides from Cyfrowy Polsat Sa's earnings presentation, Mar 24, 2022
Slide 1: Financial results Q4'21 / FY 2021
Financial results Q4’21/ FY 2021 24 March 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 2021 2. Operating results 3. Financial results 4. Summary of 2021 and objectives for 2022
Slide 5: Key events in 2021
Key events in 2021 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in 2021
Connectivity Key events in 2021 ● We announced the Strategy 2023+ of Polsat Plus Group which includes activities related to the development of the key segments of our operations – Connectivity under the Plus brand, Content under the Polsat brand and our new strategic segment – Clean Energy. ● We hav
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 over 20 million
The number of users of our Internet portals increased to over 20 million ● We are a leading Internet publisher in Poland Average monthly number of users thanks to the acquisition of Interia.pl 19.7 20.5 21.8 21.1 21.6 23.3 17.8 17.2 17.7 18.0 (millions of RU) ● Our leading position in the online med
Slide 10: Viewership of our channels in Q4'21
Viewership of our channels in Q4’21 ● Viewership of TV Polsat Group channels in Audience shares line with the strategy Main channels Thematic channels 10.3% 16.0% 9.0% 14.3% 6.0% 5.7% 7.6% Polsat TVN TVP2 TVP1 POLSAT (2) Discovery TVP Dynamics of audience share results 25.0% 23.2% 26.5% 26.3% 22.4%
Slide 11: Position on the advertising market in Q4'21
Position on the advertising market in Q4’21 Market expenditures on TV advertising ● Good results on the advertising and and sponsorship sponsorship market in Q4'21, given the high +3.7% 1,439 1,387 reference point in Q4'20. At the same time, (mPLN) our advertising and sponsorship revenues in FY2021
Slide 12: Viewership of our channels in 2021
Viewership of our channels in 2021 ● Viewership of TV Polsat Group channels in Audience shares line with the strategy Main channels Thematic channels 15.0% 16.1% 9.0% 9.6% 6.0% 5.9% 7.5% Polsat TVN TVP1 TVP2 POLSAT (2) Discovery TVP Dynamics of audience share results 26.6% 25.7% 23.9% 24.0% 20.0% 19
Slide 13: Position on the advertising market in 2021
Position on the advertising market in 2021 Market expenditures on TV advertising ● The dynamics of advertising and sponsorship and sponsorship revenues of TV Polsat Group above market +11.5% 4,454 3,993 trend (mPLN) ● As a result, our share in the TV advertising and sponsorship market increased to 2
Slide 14: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 15: Over 2.4 million customers of the multiplay offer
Over 2.4 million customers of the multiplay offer ● Consistent implementation of our multiplay Number of multiplay customers1 strategy results in a stable increase in the +4% (thous. customers) 3000 65% 2,369 2,445 2,457 number of customers with bundled services 2500 60% 55% 2000 by 88K YoY 1500 39%
Slide 16: Our B2C customers use an increasing number of contract services
Our B2C customers use an increasing number of contract services ● Increase in the number of contract services Number of RGUs in the B2C contract segment by 296K YoY +2% 13.17m 13.49m 13.47m ● Dynamic growth of mobile services driven 2.0m 2.0m 2.0m by the successful implementation of our strategy of
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 72 3 ● 4.4% YoY increase in ARPU resulting from 70 +4.4% 69.1 2 68.6 the consistent building of the value of the 68 existing customer base 66.2 2 66 ● Effective upselling of pro
Slide 18: Stable base and growing ARPU of prepaid services
Stable base and growing ARPU of prepaid services ● Stable prepaid base is the outcome of good Prepaid RGU sales of mobile services, supported by the 2.62m 2.77m 2.67m consolidation of Premium Mobile ● We have been recording growth of revenues from both telecommunication services and Q4'20 Q3'21 Q4'2
Slide 19: High base and stable ARPU of B2B customers
High base and stable ARPU of B2B customers ● Polsat Plus Group serves 68.9 thous. B2B Number of B2B customers customers, successfully maintaining the size 69.3K 68.8K 68.9K of this base ● Successively expanded offer of communication and ICT services enables us Q4'20 Q3'21 Q4'21 to maintain ARPU from
Slide 20: Clean energy segment
Clean energy segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 21: Our support will accelerate the initiated green transformation of ZE PAK Group
Our support will accelerate the initiated "green transformation" of ZE PAK Group ZE PAK's strategic goal #1 Transition towards clean, green energy Energy transition from lignite to RES – from black to green energy The plan assumes switching off coal assets by 2030 ZE PAK's strategic goal #2 Investme
Slide 22: 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 SMR treatment Goal: Goal: Goal: Goal: Goal: Goal: 100 MW 600 MW 250 MW 2 installations support support Source: GE Hitachi Nuclear Energy In operation
Slide 23: 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 Goal: Goal: Goal: Goal: Goal: Solar energy Electrolysis plant Storage and tr
Slide 24: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 25: Results of the Group in Q4'21
Results of the Group in Q4’21 REVENUE EBITDA adjusted for IC delta adjusted, excl. NetCo result1 +2.7% 3,265 -6.2% 950 891 3,179 Q4'20 Q4'21 Q4'20 Q4'21 LTM FCF Net debt/EBITDA LTM +13.2% 1,442 2.80x 1,274 1.01x Q4'20 Q4'21 Q4'20 Q4'21 Source: Consolidated financial statements for the year ended Dec
Slide 26: Results of the Group in 2021
Results of the Group in 2021 REVENUE EBITDA adjusted for the IC delta in H2’21 adjusted, excl. NetCo result1 +5.0% 12,444 +2.4% 3,652 11,848 3,565 2020 2021 2020 2021 LTM FCF Net debt/EBITDA LTM +13.2% 1,442 2.80x 1,274 1.01x 2020 2021 2020 2021 Source: Consolidated financial statements for the year
Slide 27: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA adjusted, excl. NetCo result1 +5% | +596m (excl. IC delta in H2’21) 7,700 +4% | +481m (incl. IC) 12,444 11,963 +367 -115 +257 +339 +3,681 62% 4,192 +2% | +87m (mPLN) 3,565 3,652 (mPLN) -673 +46 +64 +23 35% 30% 29% EBITDA margin Revenue reduction
Slide 28: We consistently generate a strong positive FCF stream
We consistently generate a strong positive FCF stream Adjusted FCF after interest mPLN Q4’21 FY’21 EBITDA EBITDA • EBITDA Switching to the capex light model: growth growth growth Net cash from operating activities 792 3,234 • conversion of CAPEX to OPEX • Asseco • reduced leasing payments 5G network
Slide 29: Strong FCF and NetCo proceeds financed acquisitions, dividends, buybacks and debt reduction
Strong FCF and proceeds from the sale of NetCo financed acquisition projects, record-high dividends, purchase of treasury shares and debt reduction FCF 2021: PLN 1,442m -1,446.4 -1,186.2 7,111.9 (mPLN) -2,464.0 -1,337.6 -1,017.8 3,644.3 3,234.3 -34.6 -581.1 CAPEX1 1,365.8 /revenue 9.3% Cash and Net
Slide 30: The Group's debt
The Group’s debt Debt structure arrying amount by instrument type by currency mPLN as at 31 Dec. 2021 Bonds 19% SFA (Tranche A and B) 8,739 Banking debt PLN 81% 100% Revolving Credit Facility (RCF) 0,0 Series B and C Bonds 2,009 Leasing and other 704 Gross debt 11,452 Debt maturing profile Cash and
Slide 31: Summary of 2021 and objectives for 2022
Summary of 2021 and objectives for 2022 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 32: Objectives for 2021 have been achieved
Objectives for 2021 have been achieved We have built the coverage of our 5G network for over 19m inhabitants of Poland (initial goal: 11m) We have introduced new 5G tariffs, which contribute to the consistent building of ARPU in the segment of mobile services Over 2.4m customers already use ou
Slide 33: Additional initiatives with crucial impact on future development
We have also launched additional initiatives which will have crucial impact on the development of our Group in the future By establishing the strategic partnership with Cellnex Telecom, we switched to the capex light model and at the same time gained funds for the development of new segments our bus
Slide 34: This year we will focus on implementing our Strategy 2023+
This year we will focus on implementing our Strategy 2023+ Jointly with Cellnex, we will continue the roll out of the best and the fastest 5G network We will offer the best 5G services, with data speeds of up to 600Mbps, and we will expand the reach of our fiber-optic offer. For everyone. Everywhere
Slide 35: Additional information
Additional information
Slide 36: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services YoY ● Healthy pace of ARPU growth in all mPLN Q4’21 segments translates into a clear increase in change retail revenue, which compensates for the Revenue 2,651 -1% loss in wholesale revenue resulting from the regulation of MTR / FTR rates Operating cost
Slide 37: Results of the media segment
Results of the media segment YoY ● Revenue positively influenced by growing mPLN Q4’21 change revenue from advertising and sponsorship in our TV channels and web portals Revenue 687 5% ● EBITDA was influenced by the recognition Operating costs(1) 510 14% of higher costs of internal production, the r
Slide 38: Revenue structure
Revenue structure mPLN ● Increase in retail revenue mainly as a result of the successful 1,731 execution of our strategy aimed at building customer value, Retail revenue 1,660 4% which is reflected in high dynamics of ARPU growth from both contract B2C and prepaid customers, as well as the consoli
Slide 39: Operating costs structure
Operating costs structure mPLN ● Higher technical costs and cost of settlements with Technical costs and cost of settlements 802 telecommunication operators mostly due to the recognition of costs with telecommunication operators 615 30% resulting from the agreement on using the mobile infrastructu
Slide 40: 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 41: 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