Altice Europe — Q3 2020 Earnings Presentation
22 slides from Altice Europe's earnings presentation, Nov 19, 2020
Slide 1: Altice Europe Q3 2020 Results
Altice Europe Q3 2020 Results November 19, 2020
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitatio
Slide 3: Altice Europe Q3 2020 Summary
Altice Europe Q3 2020 Summary Total revenue grew by +3.2% and total EBITDA grew by +5.1% with higher EBITDA margin YoY Subscriber net gains in main geographies and segments Issued €900 million Senior Notes at Altice France to repay Altice Corporate Financing facility Capital structure further simpli
Slide 4: Telecom Commercial Performance – Residential Fixed
Telecom Commercial Performance – Residential Fixed Fibre conversion continues to grow in France & Portugal Residential fixed net adds (‘000) France Portugal Israel Dominican Republic Altice Europe +56 +41 +38 +21 +10 +9 +8 +5 0 -1 +66 +113 +38 +42 +9 +8 - - +113 +163 Q3-19 Q3-20 Q3-19 Q3-20 Q3-19 Q3
Slide 5: Telecom Commercial Performance – Residential Mobile
Telecom Commercial Performance – Residential Mobile Positive subscriber trends maintained Residential postpaid mobile net adds (‘000) France Portugal Israel Dominican Republic Altice Europe +299 +234 +41 +53 +25 +32 +12 +2 +12 -7 Q3-19 Q3-20 Q3-19 Q3-20 Q3-19 Q3-20 Q3-19 Q3-20 Q3-19 Q3-20 Base: 14.6
Slide 6: Altice Europe Revenue Trends
Altice Europe Revenue Trends Residential service revenue growth Total Telecom ex equipment & roaming Components of Q3 2020 revenue trends YoY (€m) +3.2% (€m) +4.4% • Telecom ex equipment and roaming: +4.4% 3,658 3,774 • Residential services: +1.9% 3,290 272 3,150 251 • Business services: +9.2% 229 2
Slide 7: Altice France Revenue Trends
Altice France Revenue Trends Residential service revenue continues to grow Total Telecom ex equipment & roaming Components of Q3 2020 revenue trends YoY (€m) +4.0% (€m) +6.1% • Telecom ex equipment and roaming: +6.1% 2,745 2,458 • Residential services: +3.2% 2,638 74 2,316 80 174 • Business services
Slide 8: Altice International Revenue Trends
Altice International Revenue Trends Negative FX impact, growth in constant currency Total Telecom ex equipment & roaming Components of Q3 2020 revenue trends YoY (€m) -0.4% (€m) -0.3% • Telecom ex equipment and roaming: -0.3% (CC +2.9%) 1,036 1,032 • Portugal: +3.1% 835 832 113 128 • Israel: +0.2% (
Slide 9: Altice Europe Financials
Altice Europe Financials €m Q3-19 Q3-20 Growth YoY Reported Growth YoY Constant FX France 2,638 2,745 +4.0% +4.0% Altice International 1,036 1,032 -0.4% +2.7% Altice TV 58 70 +21.0% +21.0% Corporate and Other, Eliminations -74 -72 - - Total Revenue 3,658 3,774 +3.2% +4.1% Telecom Revenue 3,481 3,575
Slide 10: Pro Forma Capital Structure
Pro Forma Capital Structure Altice Europe N.V. Net Debt €28,517m Capital structure further simplified and direct access to free cash flow Net Leverage 4.9x Adjusted Net Leverage 1 4.7x No significant debt maturities until 2025, WAL of 6.0 years Significant liquidity of €3.5 billion2 Restricted
Slide 11: Q3 2020 Free Cash Flow
Q3 2020 Free Cash Flow Altice Europe Altice Europe excluding TV (€m) 660 (480) (596) (31) (59) 97 7 41 (56) OpFCF Interest Pensions Taxes Change in WC Ex-TV TV Altice Europe & other FCF FCF FCF Altice Europe mid-term full-year organic FCF target1: > €1 billion 1. Excluding spectrum and significant l
Slide 12: Update on Cash Interest Savings Program
Update on Cash Interest Savings Program Altice Europe interest cost evolution Components of lower interest costs (€bn) • FY 2019 (A) 1.84 - €500m • Accrued interest starting point for FY 2019 • FY 2020E (B) 1.56 - €200m 1.34 • Cash interest expected for FY 2020 1.14 • FY 2020E Pro Forma (C) • €422
Slide 13: Outlook Update
Outlook Update Accelerate residential service revenue growth in our key geographies FY 2020 (+1.2% year to date) Revenue Grow Group revenue (+1.8% year to date) The Group continues to assess the COVID-19 pandemic FY 2020 Grow Group EBITDA carefully, especially the EBITDA (+2.1% year to date) impacts
Slide 14: Q&A
Q&A 14 alti
Slide 15: Appendix
Appendix 15
Slide 16: Detailed Financials
Detailed Financials €m Q3-19 Q3-20 Growth YoY Reported Growth YoY Constant FX France 2,639 2,745 +4.0% +4.0% Portugal 536 541 +0.9% +0.9% Israel 245 243 -0.9% +0.9% Dominican Republic 140 119 -15.0% +2.5% Teads 113 128 +12.7% +15.3% Altice TV 58 70 +21.0% +21.0% Corporate and Other, Eliminations -74
Slide 17: Non-GAAP Reconciliation to Unaudited GAAP Measures
Non-GAAP Reconciliation to Unaudited GAAP Measures For the nine months ended €m September 30, 2020 (unaudited) Revenue 10,930.6 Purchasing and subcontracting costs -2,903.1 Other operating expenses -1,976.7 Staff costs and employee benefits -1,103.7 Total 4,947.1 Share-based expense -20.3 Rental exp
Slide 18: Altice Europe Debt Maturity Profile
Altice Europe Debt Maturity Profile1 (€bn) 0.1 0.1 0.1 0.1 0.1 4.6 12.2 5.1 6.5 0.9 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Altice France Altice International 1. Maturity profile excluding leases/other debt (c. €128 million) 18
Slide 19: Q3 2020 Free Cash Flow
Q3 2020 Free Cash Flow Altice Europe Altice Europe excluding TV (€m) 660 (480) (31) 97 (59) 7 41 59 (56) 18 (677) (618) OpFCF Interest Pensions Taxes Change in Ex-TV TV Altice M&A and Net debt Gross debt Change in WC FCF FCF Europe other reduction reduction cash & other FCF 19
Slide 20: Pro Forma Net Debt Reconciliation as of September 30, 2020
Pro Forma Net Debt Reconciliation as of September 30, 2020 €m Actual Pro Forma Altice Europe Reconciliation to Swap Adjusted Debt Total Debenture and Loans from Financial Institutions 29,184 29,184 Value of debenture and loans from financial Institutions in foreign currency converted at closing FX r
Slide 21: Pro Forma Net Leverage Reconciliation as of September 30, 2020
Pro Forma Net Leverage Reconciliation as of September 30, 2020 €m AENV Intra- Altice Altice Altice & Group Europe Altice Europe (Pro Forma) France International Others Eliminations Consolidated Gross Debt Consolidated 22,385 7,463 - - 29,847 Cash -668 -642 -21 - -1,330 Net Debt Consolidated 21,717 6
Slide 22: Additional Footnotes
Additional Footnotes Telecom revenue excludes eliminations Pages 3, 6 Debt repaid since April 2020 consists of the full repayment of the Altice Corporate facility (€668 million on May 19, 2020 and €1,060m on September 21, 2020), the repayment of the Altice Finco S.A. $385m Page 3 7.625%, 2025 notes