Slide 1: Investor presentation for the year ended December 31, 2013
Investor presentation for the year ended December 31, 2013 Cable Communications Systems N.V. (CCS NV) Parent Company of May 8, 2014
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 Cable Communications Systems N.V. (“CCS NV" or the "Company") and solely for use
Slide 3: Group overview
p. 3 Group overview Divested in 2013 Discontinued Romania Hungary Others operations Total Year ended Year ended Year ended Year ended Year ended December 31, December 31, December 31, December 31, December 31, 2013 2013 2013 2013 2013 Revenues and other income² €419m €119m €72m €19m €624m EBITDA €19
Slide 4: 2013 Highlights
p. 4 2013 Highlights In 2013 we sold our subsidiaries in Croatia, Serbia and Slovakia. In aggregate, the total revenues generated from these countries was €18.8 million and the EBITDA generated from these subsidiaries was €6.7 million in the year ended December 31, 2013. In 2013 we received €40.9
Slide 5: Recent Developments – Mobile Telephony Romania
p. 5 Recent Developments – Mobile Telephony Romania The license of 5 MHz of bandwidth in the 900 MHz frequency spectrum that we won in September 2012 has become operational on April 6, 2014. In December 2013 ANCOM has announced a reduction in mobile interconnection tariffs to 0.96 eurocents / mi
Slide 6: Recent Developments - Other
p. 6 Recent Developments - Other We concluded a coupon swap for the next three years for full amount of the Proceeds Loan’s (€450 million). An annual 1.5% tax on special purpose constructions (networks) was introduced in Romania starting with 2014. We estimate the impact to be of approximately 1
Slide 7: Financial highlights for the year December 31, 2013
p. 7 Financial highlights for the year December 31, 2013 Lower CAPEX and Margin Improvement 700 Stable revenue development in 625 624 Revenues and other core markets. Revenue 32 19 income decreased primarily due to sale of 600 subsidiaries (Slovakia, Serbia and 593 605 Adj. EBITDA Croatia) 500
Slide 8: Highlights Romania – Revenue and Adj EBITDA
p. 8 Highlights Romania – Revenue and Adj EBITDA Revenue growth of 3.8% (3.1% in constant currency terms) driven Results of Operations1 by Cable TV and Internet services For the year ended % For the three months % Higher in EBITDA margin mainly December 31, change ended December 31, change due t
Slide 9: Highlights Romania - KPIs
p. 9 Highlights Romania - KPIs Subscribers Steady growth in Cable TV Subscribers (Thousand RGUs) Subscribers Period Ended Net Additions and Internet subscribers Last 12 Last 3 2012 2013 months months Slower pace in DTH Cable TV 2,336 2,451 115 38 decrease in Q4 2013 Fixed internet and data 1,564
Slide 10: Highlights Hungary – Revenue and Adj EBITDA
p. 10 Highlights Hungary – Revenue and Adj EBITDA Revenue growth of 2.3% in 2013 (5% in constant currency terms) driven by Triple Play Bundles. Results of Operations Improvement in EBITDA margin For the year ended % For the three months % mainly due improvement in December 31, change ended Decem
Slide 11: Highlights Hungary - KPIs
p. 11 Highlights Hungary - KPIs Subscribers Subscribers (Thousand RGUs) Subscribers Period Ended Net Additions Steady growth Triple Play December 31, subscribers and increase in the Last 12 Last 3 penetration of Internet and Fixed 2012 2013 Months Months Telephony subscribers Cable TV 385 404 19 7
Slide 12: Highlights Other Territories
p. 12 Highlights Other Territories For the year ended For the 3 months December 31, % change ended December 31, % change 2012 2013 2012 2013 Spain: Renegotiation of (euro in millions) (euro in millions) MVNO agreement starting Revenues with June 2013 and decrease 1 Spain 51.4 48.5 -5.7% 12.9 12.4
Slide 13: CAPEX
p. 13 CAPEX CAPEX evolution 2013 (EUR millions) 300 Capex has decreased in 2013 to €216 275 million as compared to €275 million in 216 200 2012 (the lowest in the last 4 years) and has decreased in Q4 2013 to €44 million 89 100 44 as compared to €89 million in Q4 2012. - Q4 2012 Q4 2013 2012 2013
Slide 14: Refinancing of financial liabilities
p. 14 Refinancing of financial liabilities CCS NV issued €450 million bonds on November 4, 2013 In the same time, RCS&RDS obtained a €300 million loan from a syndicate of banks led by Citibank and ING Bank of which €205 million were drawn. Financial liabilities Maturity profile Term Loan & Notes
Slide 15: Group Financial Profile
p. 15 Group Financial Profile Gross / Net Debt (EUR millions) 800 The November 4, bond issue and bank 668 refinancing extended our maturities. 601 628 50 13 600 527 75 Total net debt upon refinancing is €617 33 million 400 615 617 Net Leverage is and 2.4x and Gross 525 200 494 Leverage is 2.6x.
Slide 16: Financial Calendar
p. 16 Financial Calendar 2013 You can find us on: Web: investors.rcs-rds.ro Email: investor.relations@rcs-rds.ro Agenda for 2014 Report Call FY 2013 Results 30-Apr-14 Thursday 08-May-14 Q1 2014 Results 13-Jun-14 Thursday 19-Jun-14 Q2 2014 Results 12-Sep-14 Thursday 18-Sep-14 Q3 2014 Results
Slide 17: Q&A Session
p. 17 Q&A Session CCS NV / RCS & RDS
Slide 18: Appendices
p. 18 Appendices CCS NV / RCS & RDS
Slide 19: Revenue streams
p. 19 Revenue streams 2013 revenue split by product 2013 revenue split by country Other revenues Czech Republic Slovakia¹ 3% 3% 3% Other² DTH Spain 1% 19% 8% Cable TV 30% Mobile Hungary telephony 19% 11% Romania Mobile 66% internet and data Fixed-line Fixed internet 3% telephony and data 7% 27% Cont
Slide 20: Group Results (P&L) 2013
p. 20 Group Results (P&L) 2013 For the year ended For the three months December 31, ended December 31, % Change % Change 2012 2013 2012 2013 (EUR millions) (EUR millions) Sales Romania 398.2 413.9 3.9% 99.5 105.1 5.6% Hungary 116.4 119.0 2.3% 31.2 30.0 -3.6% Spain 50.1 47.6 -5.0% 12.7 12.2 -3.8% Oth
Slide 21: Cash Flow
Cash Flow p. 21 Summary Cash Flow For the year ended December 31, 2012 2013 (EUR millions) Cash flows from operations before working capital changes 254.0 271.0 Cash flows from operations 223.5 252.1 Interest paid (38.5) (29.6) Income tax paid (5.5) (15.3) Cash flows from operating activities 179.5
Slide 22: FOREX development
p. 22 FOREX development RON/EUR Exchange Rate 2012 – 2013 HUF/EUR Exchange Rate 2012 – 2013 5.50 340 5.00 320 297 294 297 296 298 298 4.52 4.52 300 4.42 4.40 4.44 4.45 283 283 4.50 4.35 4.39 280 4.00 260 240 3.50 220 3.00 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2012 2012 2012 2013 2
Slide 23: Summary corporate and financing structure
p. 23 Summary corporate and financing structure RCS Management, S.A. (Romania) 63% Cable Communication New Senior Systems N.V.² Secured Notes (The Netherlands) €450m 96%¹ Proceeds loan €300m New Senior RCS & RDS S.A.² Facilities Agreement` (Romania) 100% 100% 100% 100% DIGI T.S. Kft DIGI Spain DIGI