Digi Communications Nv · BVB:DIGI
Digi Communications Nv — Investor Presentation (December 2023)
40 slides from Digi Communications Nv's investor presentation, December 2023
Slide 1: Investor Presentation
Investor Presentation December 2023
Slide 2: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by Digi Communications N.V., (the "Company“ or “DIGI”) and solely for use during the pres
Slide 3: Table of Contents
Table of Contents 1. Who we are 2. Why invest in DIGI 3. Development vectors 4. Historical financial data 5. Q3 2023 financials 6. Investor Relations contact
Slide 4: Who we are
DiGi Who we are
Slide 5: Our goal: superior communication services at affordable prices
At Digi Communications, our goal is to harness cutting- edge technology to provide superior communication services to a large customer base at the most affordable prices 5
Slide 6: Our services
Our services Pay TV (DTH & Fixed telephony Cable TV) Mobile telephony Fixed and mobile Data Media content internet communications 6
Slide 7: Media holdings
Media holdings DIGI was the first Romanian electronic communications company to offer convergent services and transmedia content, by bundling phone, internet and TV together. The TV channels launched in July 2009, while in May 2015, the Radio stations were added to the line-up. TV channels: Radio: O
Slide 8: Key markets
Key markets Consolidated, yet still Growth Future Growth Moderate Growth growing Portugal Romania Spain Italy • Fixed (FTTH) and mobile network (4G/5G) in construction, after Single play: acquisition of spectrum Multiple play: Multiple play: licenses • Mobile • CATV, satellite/DTH • Fixed internet c
Slide 9: DIGI in numbers
DIGI in numbers* 5 growth markets: +15.5mn homes 2 core markets: Romania, Spain, Italy, Romania & Spain covered by DIGI’s fiber Portugal & Belgium network in core markets €3.1bn CAPEX 21K+ employees in 20.8m RGUS between 2007-2022 4 key markets *All data as of 31.12.2022 unless otherwise stated. 9
Slide 10: Key financial data
Key financial data Revenues by market EBITDA by market RGUs (’000) by business line Total revenues in 2022: Total Adjusted* EBITDA in 2022: 20,782 €1.492,8bn (+17% vs. 2021) €505.6m (+7.3% vs. 2021) +15% 1,212 Fixed-line 18,013 telephony 1,149 9,091 1.8% +21% Mobile telecommunication 7,473 services
Slide 11: Our evolution
Our evolution Note: On January 3, 2022 the Group successfully closed the sale of Digi Hungary and its 11 subsidiaries to 4iG Plc (“the Hungarian operations”) for a total consideration of €625 million.
Slide 12: Board of Directors
Board of Directors Digi Communications applies a one-tier board structure comprising of two Executive Directors and five Non-executive Directors, of which two are considered to be independent. The Board of Directors was appointed on April 20th, 2020, and it consists of the following members: Valenti
Slide 13: Awards and recognition
Awards and recognition #1 #1 #1 #9 #5 #1 The most powerful Player in telecom sector First prize in the Largest employer in Out of Top 50 Most Spain’s fastest fibre-optic Romanian group in the in Romania and #23 in “Employee Support” Romania according to ZF Valuable Romanian network according Ookla,
Slide 14: Why invest in DIGI
DiGi Why invest in DIGI
Slide 15: DIGI on BVB
Listing venue: DIGI on BVB Digi Communications share capital consists of Class A and Class B shares. Class B shares Research coverage: are listed on the Bucharest Stock Exchange (BVB) as of May 16th, 2017. The Company’s shares (BVB: DIGI) are included in the main reference indices of BVB, including
Slide 16: Bonds
Bonds Romanian subsidiary of Digi Communications, RCS & RDS, issued in 2020 notes totalling €850 million. Particularly in the current context, the financial cost of the notes is extremely attractive therefore confirming Face value: €450 million the right strategy of the Group to access financing in
Slide 17: Key investment highlights
Key investment highlights State of the art Robust RGU growth Strong mobile Focused Proven growth telecom networks across all business infrastructure and geographical driven by robust lines coverage expansion CAPEX • Currently cover 99.5% of • Primary focus on the • Solid performance in • More than 9
Slide 18: ESG
impact pozitiv materiality ESG matrix i material topics: 1. Climate change 11. Personal data privacy 2. Energy consumption 12. Fair working environment 3. Materials and waste 13. Occupational health and 4. Biodiversity safety 2 1 1 2 2 5. Businessethicsand 14. Digital inclusion and responsibility ac
Slide 19: Development vectors
DiGi Development vectors
Slide 20: Growth strategy: European operator in five markets
From its origins as a Romanian entrepreneurial venture, DIGI has evolved into a pivotal European operator in infrastructure and electronic communications, now present in five major markets. Our growth strategy focuses on asserting leadership in core regions – Romania & Spain – and expanding our foot
Slide 21: 4-pillar strategy
4-pillar strategy Accelerated growth Superior infrastructure • Leverage advanced fiber network • Explore acquisition and expansion based • Top coverage with 4G mobile network on market opportunities with 5G in active deployment • Cross-sell fixed/mobile services to • Maximise advantage in speed and
Slide 22: Key markets
Key markets Consolidated, yet still Growth Moderate Growth growing Romania Spain Italy Top European telecom operator #1 internet operator #1 Mobile Virtual 362K RGUs (mobile) Network Operator on #1 CATV operator portability sector Target customer is the large Romanian 20.8mn RGUs #1 National mobile
Slide 23: Romania: DIGI as a market leader
Romania: DIGI as a market leader Key financial data1 Key highlights Revenue: €964.9m • #1 CATV operator with 69% market share Adj. EBITDA2 margin: 43.5% • #1 internet operator with 66.9% market share • Performance of DIGI’s fixed internet network Competition places Romania in the global ranking spee
Slide 24: Romania: DIGI as a market leader
Romania: DIGI as a market leader 15.5m RGUs1 Key highlights Fiber infrastructure: Fixed telephony • 100% owned nationwide network 6% • Nationwide last-mile 1Gbps connection with multiple Pay TV 100Gbps capacities and multiple redundancies • ~9.1 million homes passed, covering all major cities 35% an
Slide 25: Spain: DIGI as an important player
Spain: DIGI as an important player Key financial data1 Key highlights Revenue: €500.4m • September 2018: Launch of FTTH fixed Adj. EBITDA2 margin: 16.0% broadband and fixed telephony; currently provides these services in 50 regions • August 2021: Launch of 10 Gbps fixed broadband service • Indirect
Slide 26: Italy: DIGI as a niched player
Italy: DIGI as a niched player Key financial data1 Key highlights Revenue: €27.5m • Utilize Vodafone’s mobile telecommunications network under the Italian MVNO Agreement • Primarily target the extensive local Romanian community in Italy 362k RGUs 100% 1 All data as of 31.12.2022 unless stated otherw
Slide 27: Portugal, Belgium: potential growth for DIGI
Portugal, Belgium: potential growth for DIGI Portugal Belgium • Acquisition of mobile spectrum at 2021 • Secured mobile spectrum in 2022 5G 5G auction AUCTION in collaboration with Citymesh Mobile (Cegeka Group) • Long-term strategic partnership with Cellnex, reaching 3,000 mobile towers • Agreement
Slide 28: Historical financial data
DiGi Historical financial data
Slide 29: Financial KPIs evolution
Financial KPIs evolution Revenues by market* (€m) 1,493 28 Adjusted EBITDA 1,278 evolution* 1,107 24 500 Adjusted EBITDA is defined as EBITDA (consolidated operating profit or 969 23 loss plus charges for depreciation, amortisation and impairment of assets) adjusted for the effect of non-recurring a
Slide 30: RGUs evolution
RGUs* evolution 20,782 1,212 RGUs CAGR of 15% for 18,013 2019-2022 1,149 15,631 9,091 Fixed-line 1,116 13,653 telephony 1,122 7,473 6,265 Mobile telecommunication services 5,578 5,047 3,517 4,262 Fixed internet and data 2,856 5,432 5.129 Pay TV (Cable & 4,097 4,733 DTH) 2019 2020 2021 2022 *Excludin
Slide 31: Q3 2023 financials
DiGi Q3 2023 financials
Slide 32: Continued execution of 2023 strategy
Continued execution of 2023 strategy Sustained RGU growth Continued network Preparations for launch across core markets expansion in Portugal, progress in Belgium • Sustained market share growth • Romania: expanding the mobile • On-track with preparation for the in Romania and Spain network and roll
Slide 33: 9M 2023 Results overview
9M 2023 Results overview REVENUES 12% up to €1,250.9 million and other income RGU 15% YoY increase up to 23.2m (+3.1m RGUs Q3’23/Q3’22) EBITDA excl. IFRS 16 17% up to €367.9 million Romania RGU +10% Spain RGU +33% Mobile: 5.6m RGU (+19% YoY) Mobile: 4.5m RGU (+24% YoY) Pay TV: 5.6m RGU (+5% YoY) Bro
Slide 34: Key developments in Q3'23 and Q4'23
Key developments in Q3’23 and Q4’23 Belgium: agreement with Proximus • On August 27, 2023 Digi Communications Belgium N.V. and InSky N.V. concluded with Proximus Plc a series of wholesale agreements for national roaming services in Belgium for a minimum period of 5 years and purchasing of approx. 40
Slide 35: Q3 2023 Highlights
Q3 2023 Highlights ‘m€ 3 months ending Italy and Group September 30, 2023 Romania Spain Total4 operations2 Revenues3 €257.2 €166.1 €7.7 € 429.5 Other income €4.2 - - € 4.2 Adjusted EBITDA1 €99.3 €31.9 € (1.9) €129.3 excluding IFRS 16 RGUs (‘000) # 16,653 # 6,113 # 409 # 23,175 Source: Company data 1
Slide 36: Q3 2023 Financial highlights
Q3 2023 Financial highlights Group revenue and other income2 • Revenues and other income % CAPEX/revenues (€m) 434 up 13% based on strong 385 +13% 36% 46% 35% 36% 8 customer growth in Spain and Italy 7 Romania. +30% 166 128 Spain Revenues & other income Adj. EBITDA CAPEX • Sales in Spain grew by 30%
Slide 37: Q3 2023 RGU growth
Q3 2023 RGU growth RGUs (‘000) per business line RGUs (‘000) per market 23,175 Fixed-line telephony 23,175 +15.4% 1,303 +15.4% 409 20,074 Italy 20,074 1,197 +9% 359 +14% 6,113 Spain 10,503 Mobile services 4,609 +21% +33% 8,688 Broadband +19% 5,729 4,829 16,653 Romania 15,106 +10% Pay TV +5% 5,640 5,
Slide 38: Q3 2023 Portability
Q3 2023 Portability Portability in Romania Portability in Spain +702.048 mobile portability January to +719.563 mobile portability Jan-Sept 2023; 15 October 2023 Net portability gain 468.540 +20.968 fixed telephony portability +135.664 fix portability Jan-Sept 2023; Net January to 15 October 2023 po
Slide 39: Q3 2023 Financial profile
Q3 2023 Financial profile Financial liabilities as of September 30, 20231 Maturity profile long-term loans & notes Amount (mil €) Facility (Mil €) 606.1 Senior Secured Notes 850.0 2021 Senior Facility (term loan & revolver) 341.9 400.0 Export Credit Arrangements 105.6 Financial leases 42.9 130.6 109
Slide 40: Contact
Contact Investor Relations Department investor.relations@digi-communications.ro www.digi-communications.ro
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