Digi Communications NV · BVB:DIGI
Digi Communications NV — Investor Presentation (December 2019)
26 slides from Digi Communications NV's investor presentation, December 2019
Slide 1: Digi Communications N.V.
DIGI COMMUNICATIONS N.V. (“the Company” or “DIGI”) December 2019 Private & Confidential 1 Private & Confidential
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: Highlights
Highlights Revenues and Adj EBITDA (excl IFRS 16) increased with ~ 16%, for 9 month period ended 30 Sept 2019 compared with the similar previous period from 2018 Revenues EBITDA +16 % EUR 874.6 million group consolidated revenues for the 9 +15.6 % EUR 279.6 million Adj EBITDA (excl IFRS 16) for the
Slide 4: Summary
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q3 2019 Financial Results 4 Private Private&&Confidential Confidential
Slide 5: DIGI Group Profile
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q3 2019 Financial Results 5 Private Private&&Confidential Confidential
Slide 6: Overview of Digi Communications
Group Overview of Digi Communications Q3 2019 RGUs Digi Group: 15,764k 100% 100% 100% Romania Hungary Spain & Italy Q3 2019 RGUs: 11,242k Q3 2019 RGUs: 2,499k Q3 2019 RGUs: 2,023k RGU breakdown (Q3 19) RGU breakdown (Q3 19) RGU breakdown (Q3 19) Fixed-line DTH DTH Fixed telephony 5% Fixed-line 11% i
Slide 7: Long Track Record of Sustained Growth and Market Innovation
Group Long Track Record of Sustained Growth and Market Innovation Digi history Invitel’s RGU1 Majority FTTB acquisition in (m) Launch of Launch of Nationwide upgrade 4G Hungary internet & MVNO in launch of Founded by Network completed launch data services Spain 1Gbps speeds Zoltán Teszári upgrade to
Slide 8: Translating into Financial Performance
Group Translating into Financial Performance Group Revenue (€ m) ✓ 15.8m RGUs as of September 30, 2019 offering cross & upsell potential – €874.6m revenues and €326.9m Adj. EBITDA1 for the 9 month +13.3% period 1.038 +15.6% – 5m Pay-TV, 3.5m Internet, 1.8m Fixed telephony and 5.4m Mobile 917 875 RGU
Slide 9: DIGI Core Markets
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q3 2019 Financial Results 9 Private Private&&Confidential Confidential
Slide 10: Market Leader in Romanian Fiber and Challenger in Mobile
Market Leader in Romanian Fiber and Challenger in Mobile Uniquely positioned 2 growth pillars Romanian market share estimation (RGUs, Q4 18) Romania revenues (€ m)2 Internet Others +3.8% 16% TV 1 1 392 +9.9% 377 Fiber 19% 12% 321 network 12% 50% 293 50% 19% 22% 2017 2018 9m 2018 9m 2019 +9.7% 12% +9
Slide 11: 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 12: Own mobile network
Own mobile network Newly built network in place ▪ Own 3G network: ~99.5%1 population coverage − ~ 4,5001 mobile towers − Leading equipment suppliers ▪ Successful 4G launch to promote high speeds − ~ 3,1001 base stations − Current coverage ~74% of population1 ▪ Dense fiber network ideal for potential
Slide 13: Hungary Market Overview
Hungary Market Overview Top market position Growth pillars Hungarian market share1 (RGUs, Q3 19) Hungary RGUs (‘000)2 1 17% DIGI 29.40% Magyar Telekom Cable 24.60% UPC Hungary TV 29.70% Others 757 704 691 17% 2 24% DIGI Magyar Telekom Fixed 22% Int UPC Hungary 275 37% Others 72 Cable TV Fixed intern
Slide 14: Overview of Spain and Italy
p. 14 Overview of Spain and Italy Spain Solid ethnic operator becoming a refence for value for money Spanish customers Highlights Brand Network DIGI mobile subscribers (‘000s) +42.5% ◼ Advancing to new segments of value for Mobile money oriented towards Spanish customers 1.728 telephony 1.213 ◼ Main
Slide 15: Digi Group Investment highlights
Digi Group Investment highlights 1 At forefront of technology 2 Leading convergent player Seizing business development opportunities & growth in 3 own markets 4 Robust financial performance 15 Private & Confidential
Slide 16: Q3 2019 Financial Results
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 Q3 2019 Financial Results 16 Private Private&&Confidential Confidential
Slide 17: Group overview
Group overview ‘Mil € Romania Hungary Spain & Other4 Total3 Total3 3 months 9 months 3 months 9 months 3 months 9 months 3 months 9 months Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, 2019 2019 2019 2019 2019 2019 2019 2019 Revenues2 €190.9 m €559.7 m €53.1 m €163.6 m €56.
Slide 18: Financial highlights
Financial highlights Results from operations Key considerations ‘MIL € ▪ Revenues in Romania increased mainly as a result of 294.1 299.4 the price increase across all residential services 281.7 281.2 270 starting with March 2019 as well as increase in our fixed internet and data and cable TV RGUs; ▪
Slide 19: Group: Capex profile
Group: Capex profile Capex Key considerations ▪ Disciplined Capex approach ‘Mil € − Focused on highest value projects − Flexible and agnostic approach 279 ▪ Main investment projects: 243 • Fixed network has largely been upgraded in Romania and Hungary • Most mobile capex invested in Romania 81.4 61.
Slide 20: Contact
Contact ◼ You can find us on: ◼ Web: ◼ www.digi-communications.ro ◼ Email: ipo.relations@digi-communications.ro 20 Private Private&&Confidential Confidential
Slide 21: Appendix
APPENDIX 21 Private Private&&Confidential Confidential
Slide 22: Romania: RGU & ARPU
Romania: RGU & ARPU Subscribers Key Considerations RGUs Period Ended Net Additions Sept 30, Thousand RGUs Last 12 Last 3 2018 2019 months months Cable TV 3,234 3,523 289 76 Fixed internet and data 2,459 2,701 242 65 Mobile telecommunications services1 3,379 3,396 17 13 Fixed-line telephony 1,207 1,1
Slide 23: Hungary: RGU & ARPU
Hungary: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions Sept 30, Thousand RGUs Last 12 Last 3 2018 2019 months months Cable TV 685 704 19 8 Fixed internet and data 741 757 16 - ▪ Increase in Fixed Internet and Cable TV subscribers Mobile telecommunications services1 16 72
Slide 24: Other Territories: RGU
Other Territories: RGU Subscribers RGUs Period Ended Net Additions Sept 30, Thousand RGUs Last 12 Last 3 2018 2019 months months Spain Mobile telecom. services(2) 1,213 1,728 515 94 Fixed internet and data - 49 49 16 Fixed-line telephony - 19 19 6 Italy Mobile telecom. services(2) 202 227 25 14 Tota
Slide 25: Group Financial Profile
Group Financial Profile Debt structure Key considerations 2,9x ▪ Total preliminary net debt1 as of Sept 30, 2019 is €943.1 2,8x 2,7x million. 2,9x 2,8x ▪ Preliminary Net Leverage2 is 2.6x and Preliminary Gross 2,6x Leverage is 2.7x. Q3 2018 2018 Q3 2019 Gross Leverage Net Leverage 1. Gross debt/ Net
Slide 26: Group Financial Profile
Group Financial Profile Maturity profile Long term loans & Notes Financial liabilities as of September 30, 20191 (Mil €) Amount 618 Facility (Mil €) Senior Secured Notes 550.0 2016 Senior Facility 227.5 2018 Senior Facility 73.5 Financial leases 8.9 Other long term debt2 57.3 170 Other short term de
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