Altice SA

Altice SA — Q1 2013 Earnings Presentation

25 slides from Altice SA's earnings presentation, May 15, 2013

  1. Slide 1: Investors Call Presentation First Quarter 2013 Results

    INVESTORS CALL PRESENTATION First Quarter 2013 Results May 15th , 2013

  2. Slide 2: Safe Harbor

    “Safe Harbor” NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO PURCHASE SECURITIES This presenta9on does not cons9tute or form part of, and should not be construed as, an offer or invita9on to sell securi9es of Al9ce Finco S.A. or Al9ce Financing S.A. (collec9vely the “Al9ce Issuers”) or the solic

  3. Slide 3: Highlights

    Highlights Cable Mobile Liquidity & Other o First effect of the o Successful UMTS launch o On track with plan to reorganiza9on plan in May 2012 -­‐ 482,000 expand restricted group o Cable EBITDA up 17% UMTS subscribers as of with Coditel (Belgium Q1 2013 and Luxemburg) and Q1 2013 vs Q1 2012 o UMTS n

  4. Slide 4: Q1 2013 Cable & Mobile Operating Performance

    Q1 2013 Cable & Mobile OperaLng Performance May 15, 2013 Page 4

  5. Slide 5: First Quarter 2013 Dashboard – Cable

    First Quarter 2013 Dashboard – Cable Q1 2013 Q4 2012 Q1 13 vs. Q4 12 Q1 2012 Q1 13 vs. Q1 12 Cable Customers 1,188 1,198 (1%) 1,235 (4%) Cable RGU ('000) 2,356 2,343 1% 2,320 2% Cable RGU per Customer 1.98 1.96 1% 1.88 6% Cable Revenue (mnis) 841 839 0.2% 840 0.1% Cable ARPU per Customer (nis) 223 2

  6. Slide 6: Cable Growth in RGUs driven by Triple Play services

    Cable Growth in RGUs driven by Triple Play services RGU (‘000) RGU per subscriber 4.6% 5.3% 2,343 2,356 1.98 2,294 36% 2,253 1.96 34% RGU 1.93 28% 223 1.91 24% 3play % 220 1.88 211 ARPU 202 2010 2011 2012 Q1-13 Q1-­‐12 Q2-­‐12 Q3-­‐12 Q4-­‐12 Q1-­‐13 • Increase in ARPU is resul9ng from higher number

  7. Slide 7: Subscribers Net Adds by Product

    Subscribers Net Adds by Product Cable Subscribers (#) TV Subscribers (#) 1,280 1,245 1,198 Market share 61% 1,188 891 891 896 898 + 2 K 2010 2011 2012 Q1-13 2010 2011 2012 Q1-13 Telephony Lines(#) Internet Subscribers (#) Market share 20% Market share 50% ¹ 684 771 774 676 768 635 752 610 + 3 K +8 K

  8. Slide 8: Cable – Internet Product Exploiting bandwidth advantage

    Cable – Internet Product Exploi9ng bandwidth advantage More Speed Average Bandwidth (Mega) 10% 10% 20.7 M 32% 16.7 M 15.4 M 18% 21% 13.1 M 42% 9.4 M 9.6 M 10.4 M 8.3 M 9.0 M 7.5 M 45% 38% 42% Q1-­‐12 Q2-­‐12 Q3-­‐12 Q4-­‐12 Q1-­‐13 HOT BEZEQ 51% 22% 27% 27% 7% • Approximately 70% of gross adds conne

  9. Slide 9: First Quarter 2013 Dashboard – Mobile

    First Quarter 2013 Dashboard – Mobile UMTS Successfully Launched Q1 2013 Q4 2012 Q1 13 vs. Q4 12 Q1 2012 Q1 13 vs. Q1 12 I-­‐DEN Subs ('000) 276 325 (15%) 437 (37%) UMTS Subs ('000) 482 441 9% 0 TOTAL Subs ('000) 758 766 (1%) 437 74% Mobile Revenue -­‐ Services (mnis) 188 196 (4.1%) 148 26.8% Mobile

  10. Slide 10: Q1 2013 Financial Results Performance

    Q1 2013 Financial Results Performance May 15, 2013 Page 10

  11. Slide 11: Revenues & EBITDA

    Revenues & EBITDA Revenues (mnis) ¹ EBITDA (mnis) ¹ 1,027 1,065 189 232 39 425 840 841 364 (26) Q1-­‐12 Q1-­‐13 Q1-­‐12 Q1-­‐13 Cable Mobile Cable Mobile • Cable EBITDA grew 17% Q1-­‐13 vs Q1-­‐12, Cable EBITDA margin reached 51% in Q1-­‐13 • Mobile EBITDA impacted by an increase in roaming and inte

  12. Slide 12: Quarterly EBITDA Progression

    Quarterly Ebitda Progression 39% 37% • Stable Cable 36% 33% 33% EBITDA growth TOTAL 403 372 355 349 399 • Cable EBITDA Q1-­‐12 Q2-­‐12 Q3-­‐12 Q4-­‐12 Q1-­‐13 margin grew from 43% 43% 44% 44% 51% 43% to 51% margin Q1-­‐13 vs Q1-­‐12 Cable 372 370 425 364 364 Q1-­‐12 Q2-­‐12 Q3-­‐12 Q4-­‐12 Q1-­‐13 •

  13. Slide 13: Cable EBITDA Bridge Q1 2013 vs Q1 2012

    Cable EBITDA Bridge Q1 2013 vs Q1 2012 500 Cable EBITDA grew 17% Q1-­‐13 vs Q1-­‐12: 450 425 61 mNIS 5 • Reduc9on personnel 6 400 9 (30mNIS), 11 mNIS 364 • Termina9on royal9es 30 payments (11mNIS) 350 Q1 13 EBITDA • Decrease in network & Q1 12 STB maintenance costs 300 EBITDA (9mNIS) • Decrease in o

  14. Slide 14: CAPEX Accrued

    CAPEX Accrued CAPEX Accrued – Cable (mnis) CAPEX Accrued – Mobile (mnis) 300 210 87 75 122 55 Q1-12 Q4-12 Q1-13 Q1-12 Q4-12 Q1-13 • UMTS network has already reached 46% country coverage • The Capital Expenditure decrease derived mainly from the accrued capital intensity in the first quarter 2012 main

  15. Slide 15: Liquidity & Leverage March 31, 2013

    Liquidity & Leverage March 31, 2013 (mnis) Hot Group Altice Combined Unsecured Bonds Hot (4) 1,389 1,389 Senior Secured Notes Altice (1) 2,655 2,655 Senior Notes Altice (2) 1,547 1,547 Total Altice Restricted Group Bonds 1,389 4,202 5,591 Total Cash 46 277 323 Net Annualized Leverage (L2QA) (3) 3.5x

  16. Slide 16: Cabovisão & Coditel

    Cabovisão & Coditel May 15, 2013 Page 16

  17. Slide 17: Overview of Cabovisão

    Overview of Cabovisão Overview A State of the Art Network Passing 906k Homes ■ # 3 provider of television (digital and analogue), high speed internet and fixed line telephony services via its Viana do cable network across several regions of Portugal Castelo Vila Braga Real Bragança − 261k cable custo

  18. Slide 18: Overview Portuguese Triple play market

    Overview Portugese Triple play market Pay TV Operators Pay TV Plaeorms Others Cabovisao 3% 9% 36.8% IPTV 29% Cable Zon 47% PT 52% 36% DTH 23% Penetration: 81.2% Broadband Operators Broadband Plaeorms Others 10% Cabovisao FTTP 8% 14% 30.3% DSL PT 45% 50% Cable Zon 32% 41% Cabovisão market share in fo

  19. Slide 19: Cabovisão's Historical KPIs and Financials Since Acquisition

    Cabovisão’s Historical KPIs and Financials Since AcquisiLon Quarterly KPIs and Financials Comments ■ In February 2012, acquisi9on thesis focused based on a clear turn-­‐ Key KPIs Q1'12 Q2'12 Q3'12 Q4'12 Q1'13³ around strategy Homes Passed ('000) 906 906 906 906 906 ■ Fully restructured cost base by

  20. Slide 20: Overview of Coditel Belgium & Luxembourg

    Overview of Coditel Belgium & Luxembourg Overview A State of the Art Network With No Overlap Brussels Luxembourg ■ A leading provider of cable triple-­‐play services in Brussels and Luxembourg ■ Offers digital-­‐TV (including HD, VoD and catch-­‐up TV), high-­‐speed broadband access and fixed line ser

  21. Slide 21: Overview Belgium Triple play market

    Overview Belgium Triple play market Pay TV Operators Pay TV Plaeorms Coditel Others 2% 5% 62.6% IPTV 25% VOO 22% Telenet 46% DTH Cable 4% 71% Belgacom 25% Penetration: 94.6% Broadband Operators Broadband Plaeorms Flanders Flanders Coditel Other 1% 16% 41.6% Belgacom Cable DSL 45% 49% 51% Wallonia Te

  22. Slide 22: Coditel's Historical KPIs and Financials

    Coditel’s Historical KPIs and Financials Quarterly KPIs and Financials Comments ■ Uninterrupted growth in ARPU as 2010A-12E well as in RGUs per unique Key KPIs 2010A 2011A 2012E CAGR customer over the last 3 years Homes Passed ('000) 214 214 215 0,3 % more than offset the decrease in Unique Customers

  23. Slide 23: Summary Rationale for inclusion into Altice Restricted group

    Summary RaLonale for inclusion into AlLce Restricted group Folding in considered in 2013 1 CreaLon of a diversified infrastructure/network based collecLon of assets 2 Applying best operaLonal pracLces across the footprint of assets 3 Leveraging suppliers and creaLon of economies of scale 4 Plaeorm fo

  24. Slide 24: Q&A

    Sattice Q&A

  25. Slide 25: Thank you

    Thank you Q2 Results August 12th 2013

Altice — Q1 2013 Earnings Presentation on 6ix