Digi Communications NV · BVB:DIGI
Digi Communications NV — Individual Investors Forum, Bucharest Stock Exchange 2018
27 slides from Digi Communications NV's conference presentation, June 2018
Slide 1: Investors presentation - Individual Investors Forum
DIGI COMMUNICATIONS N.V. Investors presentation Individual Investors Forum Bucharest Stock Exchange June, 2018
Slide 2: Disclaimer
p. 2 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
Slide 3: Summary
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q1 18 Financial Results
Slide 4: DIGI Group profile (1/3)
Group DIGI Group profile (1/3) 13.5m RGUs as of 31 March 18 offering cross & upsell potential – €232.8m revenues and €77.5m Adj. EBITDA1 Revenue breakdown (Q1 2018) – 4.4m Pay-TV, 2.8m Internet & 4.6m mobile RGUs2 – Synergistic Romanian and Hungarian operations Spain Italy 2% 12% Leader in Pay-T
Slide 5: DIGI Group profile (2/3)
DIGI Group profile (1/3) Romania Hungary Spain & Other 4 ‘Mil € Romania Hungary Spain & Other4 3 months ended 3 months ended 3 months ended Total3 March 31, 2018 March 31, 2018 March 31, 2018 Revenues2 €164.0 m €37.3 m €32.7 m €232.8 m EBITDA €64.2 m €7.9 m €5.3 m €77.5 m Adj EBITDA margin¹ 39.2% 21
Slide 6: DIGI Group profile (3/3)
Group DIGI Group profile (3/3) Diversified revenue growth profile Stable EBITDA Revenue1 by country (€m) (€m), Adj. EBITDA2 margin +8.8% 31.2% 31.4% 28.7% 33.3% 843 917 18 9 93 83 Italy 150 288 Spain 138 263 21 10 Hungary +2.7% 40 51 227 233 613 655 Romania 4 6 227 65 78 21 27 202 37 37 5 5 8 11 165
Slide 7: Summary
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q1 18 Financial Results
Slide 8: Romania: State-of-the-art Fiber-Based Infrastructure with Growing Own Mobile Network
Romania Romania: State-of-the-art Fiber-Based Infrastructure with Growing Own Mobile Network Newly built own mobile network, coverage Modern, resilient fiber-based infrastructure increasing • Nationwide, ~100% owned • 3G: 99% population coverage • 4G: 58% population coverage • ~ 90% FTTB/H • GPON Ne
Slide 9: State-of-the-art Fiber-Based Infrastructure
State-of-the-art Fiber-Based Infrastructure • GPON network: high fiber share − Very dense; taking fiber into the home or its immediate vicinity − Early adopter of Ethernet as main technology in 2006, using GPON since 2010 − Nationwide last-mile 1Gbps − Multiple 100Gbps capacities and multiple redund
Slide 10: Own Mobile Network
Own Mobile Network Newly built network in place • Own 3G network: ~99%1 population coverage − ~ 4,1101 mobile towers − ~ 70%2 of towers connected by fiber allowing high flexibility in providing high data usage per user − Leading equipment suppliers (Huawei, Nokia, Ericsson) • Successful 4G launch to
Slide 11: Market Leader in Romanian Fiber and Challenger in Mobile
Market Leader in Romanian Fiber and Challenger in Mobile 2 growth pillars Romania revenues (€m)1 +4% 1 364 377 Fiber +3% network 93 96 2016 2017 Q1 2017 Q1 2018 +35% 2 164 Mobile +18% 122 MNO 37 44 2016 2017 Q1 2017 Q1 2018 Note: 1. Revenues on the fiber network includes Cable TV, Internet & Fixed T
Slide 12: Hungary: Growth, benefiting from Romanian best practice
Hungary Hungary: Growth, benefiting from Romanian best practice Key facts Sizeable fiber operator in Hungary • Entered the highly attractive RGUs (‘000) Hungarian market Y-o-Y growth in 1998 by acquiring Cable TV cable networks in Budapest and the +6% +5.2% surrounding areas 500 505 473 480 • Subseq
Slide 13: Hungary: Acquisition
Hungary Hungary: Acquisition Overview of Invitel Acquisition • On 30 May 2018 the share-purchase agreement (“SPA”) signed on 21 July 2017 between DIGI Távközlési és Szolgáltató Kft. (“Digi HU”), as the purchaser, and Ilford Holding Kft. and InviTechnocom Kft. acting as sellers, referring to the acqu
Slide 14: Hungary: Acquisition - Key metrics
Hungary: Acquisition Key metrics € €m Digi HU Invitel Revenues EBITDA 150 138 85 83 51 40 23 24 2016 2017 2016 2017 RGUs (‘000) 1 1,667 2 695 1. Data as at 31 March 2018; 2. Data as at 30 April 2018 Source: Company data
Slide 15: Spain & Italy
Spain & Italy Overview of Spain and Italy Operations Overview RGU • ~2m1 Romanian expatriates in Spain & Italy +47% +57.5% − Leading MVNO for phoning home 1,000 Spain 896 635 − Well-known Digi brand 609 • Highly synergistic to Romanian business 2016 2017 Q1 2017 Q1 2018 − Cross-sell Digi services in
Slide 16: Summary of Investment Highlights
Summary of Investment Highlights 1 Attractive markets with structural growth 2 Market leader in pay-TV, internet and convergence Advanced infrastructure: nationwide fiber and mobile 3 network 4 Leading commercial proposition 5 Strong growth driven by diversified sources 6 Robust financial performanc
Slide 17: Summary
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q1 18 Financial Results
Slide 18: Financial highlights
Financial highlights Results from continuing operations Key considerations • Revenues in Romania variation- mainly as a result of: EUR m • Increase in mobile telephony ARPU. Revenues Adj. EBITDA 1 CAPEX • Increase in our cable Tv and fixed 300.0 internet RGUs. 250.0 226.7 227.3 230.1 232.5 232.8 • D
Slide 19: Highlights Romania (1/2)
Highlights Romania (1/2) Revenue and Adj EBITDA Results of Operations1 Three months ended ‘Mil € March 31, % change 2017 2018 Revenues 165.3 164.0 -0.8% Adjusted EBITDA 48.5 64.2 32.4% Margin % 29.4% 39.2% Key considerations Revenue growth from the mobile telecommunication services, cable TV and f
Slide 20: Highlights Romania (2/2)
Highlights Romania (2/2) Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs March 31, Last 12 Last 3 2017 2018 months months Cable TV 2,893 3,075 182 45 Fixed internet and data 2,149 2,328 179 44 Mobile telecommunications services1 3,305 3,373 68 (18) Fixed-line telephony 1
Slide 21: Highlights Hungary (1/2)
Highlights Hungary (1/2) Revenue and Adj EBITDA Results of Operations Three months ended ‘Mil € March 31, % change 2017 2018 Revenues 37.5 37.3 -0.5% Adjusted EBITDA 11.5 7.9 -31.3% Margin % 30.6% 21.2% Key considerations Revenue growth from the cable TV and fixed internet and data business lines
Slide 22: Highlights Hungary (2/2)
Highlights Hungary (2/2) Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs March 31, Last 12 Last 3 2017 2018 months months Cable TV 480 505 25 5 Fixed internet and data 439 476 37 9 Mobile telecommunications services1 13 11 (2) (1) Fixed-line telephony 361 387 26 8 DTH 30
Slide 23: Highlights Other Territories
Highlights Other Territories Revenue and Adj EBITDA Three months ended ‘Mil € March 31, % change 2017 2018 Revenues1 Spain 21.7 27.1 24.9% Other 3.6 5.6 55.6% 25.3 32.7 29.2% Adj EBITDA 5.1 5.3 3.9% Subscribers & ARPU RGUs Period Ended Net Additions Thousand RGUs March 31, Last 12 Last 3 20172 20182
Slide 24: Group Financial Profile (1/2)
Group Financial Profile (1/2) Financial liabilities as of Maturity profile Long term loans & Notes March 31, 20181 (Mil €) Amount 400 Facility (Mil €) 350 2016 Senior Secured Notes 350.0 2016 Senior Facility 337.6 300 Financial leases 5.3 Other long term debt2 47.7 200 148 Other short term debt3 44.
Slide 25: Group Financial Profile (2/2)
Group Financial Profile (2/2) 1,000 Key considerations 769 780 790 800 15 9 16 600 Total net debt1 as of March 31, 2018 is €774.9 760 764 775 million 400 Net Leverage2 is 2.6x and Gross Leverage is 2.6x. 200 Q1 2017 2017 Q1 2018 Net Debt Cash 3.8x 3.5x 3.3x 2.9x 3.0x 2.7x 2.6x 2.8x 2.9x 2.5x 2.7x
Slide 26: Contact
Contact You can find us on: Web: www.digi-communications.ro Email: ipo.relations@digi-communications.ro 26
Slide 27: Q&A
DIGcI Q&A
Digi Communications — Individual Investors Forum, Bucharest Stock Exchange 2018 on 6ix