Altice Europe — Q4 2019 Earnings Presentation
22 slides from Altice Europe's earnings presentation, Mar 24, 2020
Slide 1: Altice Europe Q4 2019 Results
Altice Europe Q4 2019 Results March 24, 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 Q4 2019 Summary
Altice Europe Q4 2019 Summary Revenue growth accelerating: +11.2% YoY in Q4 2019 • France: +13.3% with all segments growing and residential growth accelerating • International: +6.9% EBITDA and OpFCF strong growth continues • EBITDA: +14.8% • OpFCF1: +20.8% €4.9 billion refinancing in the last six m
Slide 4: COVID-19 Update
COVID-19 Update Protection of people: the Group’s priority is to ensure the protection and safety of all employees Maintain quality of service: ensure reliable access to critically important connectivity services and real time news and information Closed shops: reduced sales, reduced churn Reduced m
Slide 5: SFR Commercial Performance
SFR Commercial Performance Maintaining subscriber gains while growing gross add ARPU by 20% Residential fixed net adds1 Residential mobile postpaid net adds1 (‘000) (‘000) Residential fixed base 6.4m +2% YoY Residential mobile postpaid base 14.4m +5% YoY of which fibre 45% Churn +234 +194 +196 -15%
Slide 6: MEO Commercial Performance
MEO Commercial Performance Maintaining subscriber gains while growing gross add ARPU by 10% Residential fixed net adds Residential mobile postpaid net adds (‘000) (‘000) Residential fixed base 1.6m +1% YoY Residential mobile postpaid base 3.1m +4% YoY of which fibre 60% Fibre 1 Churn +41 +42 +32 +33
Slide 7: Altice France Revenue Trends
Altice France Revenue Trends All segments growing in Q4 2019 +13.3% YoY Components of Q4 2019 revenue trends YoY (€m) • Total Altice France: +13.3% YoY in Q4 2019 2,987 132 • Residential: +0.8% 2,637 2,646 88 • Business services: +43.0% 127 1,097 • Media: +4.3% 767 876 Revenue growth evolution YoY +
Slide 8: Altice International Revenue Trends
Altice International Revenue Trends All countries growing in Q4 2019 Components of Q4 2019 revenue trends YoY +6.9% YoY (€m) • Total Altice International: +6.9% YoY in Q4 2019 1,097 • Portugal: +3.3% 1,026 1,036 162 • Israel: +10.0% (+0.7% with CC) 129 113 141 • Dominican Republic: -1.5% (+1.1% with
Slide 9: Altice Europe Financials
Altice Europe Financials Q4-18 Q4-19 Growth YoY Growth YoY FY-18 FY-19 Growth YoY Growth YoY €m Pro Forma Reported Constant FX Pro Forma Reported Constant FX France 2,637 2,987 +13.3% +13.3% 10,186 10,782 +5.9% +5.9% Altice International 1,026 1,097 +6.9% +5.2% 3,935 4,113 +4.5% +2.8% Altice TV 50 6
Slide 10: FY 2019 Guidance Achieved, FY 2020 Guidance
FY 2019 Guidance Achieved, FY 2020 Guidance FY 2019 guidance achieved Initial Guidance Revised Guidance Actuals Altice France Revenue Growth YoY 3-5% 5-6% +5.9% Altice France EBITDA €4.0-4.1bn €4.1-4.2bn €4.21bn Altice Europe (ex Altice TV) OpFCF Growth YoY In the 10% area In the 15% area +14.0%
Slide 11: Altice Europe Pro Forma Debt Capital Structure
Altice Europe Pro Forma Debt Capital Structure Restricted Groups €4.9 billion available liquidity Altice Europe N.V Altice France silo Net Debt €28,515m Net Leverage 5.0x Altice International silo Telecom Perimeter net leverage: 4.6x 100% 100% Altice TV 100% Net Debt €(1)m Altice France Altice Inter
Slide 12: Altice Europe Debt Maturity Profile
Altice Europe Debt Maturity Profile1 No material maturities before 2025 Altice maturity profile (€bn) 0.2 1.8 0.1 0.1 0.1 4.9 12.3 5.1 6.4 €4.9 billion available liquidity • WAL of 6.3 years • WACD of 5.0% • 85% fixed interest debt 2020 2021 2022 2023 2024 2025 2026 2027 2028 Altice France Altice In
Slide 13: Update on Cash Interest Savings Program
Update on Cash Interest Savings Program Lower interest costs to drive higher FCF generation Altice Europe interest cost evolution Components of lower interest costs (€bn) • FY 2019 (A) • Accrued interest starting point for FY 2019 1.84 - €422m • FY 2020E (B) 1.51 1.42 - €278m • Cash interest expec
Slide 14: Q&A
Q&A 14 alti
Slide 15: Appendix
Appendix 15 alti
Slide 16: Detailed Financials
Detailed Financials Q4-18 Q4-19 Growth YoY Growth YoY FY-18 FY-19 Growth YoY Growth YoY €m Pro Forma Reported Constant FX Pro Forma Reported Constant FX France 2,637 2,987 +13.3% +13.3% 10,186 10,782 +5.9% +5.9% Portugal 526 543 +3.3% +3.3% 2.075 2,110 +1.7% +1.7% Israel 227 250 +10.0% +0.7% 941 962
Slide 17: Free Cash Flow Generation
Free Cash Flow Generation Q4 2019 Free Cash Flow (FCF) and net change in cash bridge (€m) Altice Luxembourg (Telecom) Perimeter 1,511 603 (909) 120 220 55 (412) (51) (6) (34) (172) (37) 152 (2,353) (2,571) Adjusted Accrued Altice Cash Cash Pension Restructuring Other Altice TV Escrow ACF Gross Finan
Slide 18: Non-GAAP Reconciliation to unaudited GAAP measures
Non-GAAP Reconciliation to unaudited GAAP measures1 For the twelve months ended €m December 31, 2019 (unaudited) Revenue 14,796.2 Purchasing and subcontracting costs -3,948.0 Other operating expenses -2,860.9 Staff costs and employee benefits -1,553.0 Total 6,434.4 Share-based expense 43.1 Rental ex
Slide 19: Pro Forma Net Leverage Reconciliation as of December 31, 2019
Pro Forma Net Leverage Reconciliation as of December 31, 2019 €m Altice Europe N.V. Reconciliation to Swap Adjusted Debt Actual Pro Forma Total Debenture and Loans from Financial Institutions 31,815 31,814 Value of Debenture and Loans from Financial Institutions in Foreign Currency converted at clos
Slide 20: Pro Forma Net Leverage Reconciliation as of December 31, 2019
Pro Forma Net Leverage Reconciliation as of December 31, 2019 €m Altice Luxembourg Consolidated Altice Altice Altice Altice Intra-Group Altice Altice Altice ACF Europe N.V. Altice Europe N.V. (Pro Forma) Eliminations Telecom TV Europe N.V. Eliminations France International Luxembourg Consolidated Pe
Slide 21: IFRS 16: Impact on KPIs
IFRS 16: Impact on KPIs KPI IFRS 16 impact Comments Adjusted EBITDA Income (after operating leases and No Statement impact • Unchanged Adjusted EBITDA definition before financial leases) Cash Flow No • Unchanged Capex definition Adjusted EBITDA - Capex Statement impact • Unchanged Adjusted EBITDA –
Slide 22: Glossary
Glossary Segments are shown on a pro forma standalone reporting basis and Group figures are shown on a pro forma consolidated basis and are shown under IFRS 15 accounting Pages 7, 8, 9, 16 standard Financials exclude the international wholesale voice business (following closing announced on Septembe