4ig Nyrt. · BET:4IG
4ig Nyrt — Q3 2023 Earnings Presentation
25 slides from 4ig Nyrt's earnings presentation, Dec 1, 2023
Slide 1: Forward Looking Statements and Data Processing
FORWARD LOOKING STATEMENTS THIS INFORMATION SHEET WAS PREPARED BY 4IG NYRT. (HEADQUARTERS: BUDAPEST 1013, KRISZTINA KÖRÚT 39.). THIS INVESTOR PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS ABOUT OUR BELIEFS AND EXPECTATIONS, ARE FORWA
Slide 2: Investor Presentation Q3 2023 Results
INVESTOR PRESENTATION Q3 2023 RESULTS 1 DECEMBER 2023
Slide 3: Q3 2023 Results (Unaudited)
Q3 2023 RESULTS (UNAUDITED)
Slide 4: 2023 Key Events to Date: Update Since Q2 Earnings Call
2023 KEY EVENTS TO DATE: UPDATE SINCE Q2 EARNINGS CALL 9th Nov ’23: Memorandum of Understanding Concluded with the Government of H Hungary to Strengthen the Role of 4iG U in the National Digitalization Strategy N G 2nd Oct ’23: 13th Nov ’23: A Establishment of the Drone Announcement of a comprehensi
Slide 5: Current Shareholder Information
CURRENT SHAREHOLDER INFORMATION KEY SHAREHOLDERS SHARE PRICE PERFORMANCE AS OF 30TH SEPTEMBER 2023 (HUF) *KZF Vagyonkezelő 52.34% 25.12% *iG COM Magántőkealap *Manhattan Magántőkealap *Manhattan Invest 5.72% 1.53% Treasury Shares 13.95% 1.34% Employee Stock Option Plan Free Float Market Cap (21th No
Slide 6: Financials: Q3 & 9M 2023
FINANCIALS: Q3 & 9M 2023 ▪ In the first three quarters of 2023, the Group achieved 4iG Group Q3 2022 9M 2022 outstanding net revenues of HUF 421.3 billion, a significant Q3 2023 % change 9M 2023 % change (HUF Mn) (modified) (modified) increase compared to the same period last year, primarily due to
Slide 7: Financials: 9M 2023 PPA Adjusted P&L
FINANCIALS: 9M 2023 PPA ADJUSTED P&L 4iG Group 9M 2023 PPA1 9M 2023 (HUF Mn) (actual) adjustment (adjusted) Net Revenues 421,277 - 421,277 Purchase price allocation adjustments (non-cash): Other operating income 27,671 1 7,236 34,906 1▪ Other operating income: purchase price allocation (PPA) Total i
Slide 8: Financials: 9M 2023 Normalized Proforma EBITDA Bridge
FINANCIALS: 9M 2023 NORMALIZED PROFORMA EBITDA BRIDGE Note: -proforma means: the respective companies acquired would have been part of 4iG Group from 1st Jan 2023 -normalized means: eliminating non-recurring, extraordinary, and irregular or non-core expenses and income -PPA means: Purchase Price All
Slide 9: Breakdown by Segments: Q3 2023
BREAKDOWN BY SEGMENTS: Q3 2023 Net Revenue Split (HUF Mn) Net Revenue Split4 (% of total) Q3 2022 Q3 2022 Q3 2023 Q3 2023 Net Revenues Q3 2022 Q3 2023 Q3 2023 (actual)1 (actual) (proforma) (HUF Mn) (actual) 1 (proforma) (actual) (proforma) 10% 10% 25% IT 18,553 18,553 15,225 15,225 Telco 56,305 125,
Slide 10: Breakdown by Segments: 9M 2023
BREAKDOWN BY SEGMENTS: 9M 2023 Net Revenue Split (HUF Mn) Net Revenue Split4 (% of total) 9M 2022 9M 2022 9M 2023 9M 2023 Net Revenues 9M 2022 9M 2023 9M 2023 1 (actual)1 (actual) (proforma) (HUF Mn) (actual) (proforma) (actual) (proforma) 12% 11% 26% IT 51,749 51,749 49,313 49,313 Telco 144,960 378
Slide 11: Breakdown by Segments: Q3 & 9M 2023
BREAKDOWN BY SEGMENTS: Q3 & 9M 2023 HUNGARY ▪ Vodafone's Q3 results saw substantial revenue enhancement, anchored by a significant Net Revenue Split (HUF Mn) uptick in the B2C and B2B mobile segments, alongside B2C fixed services, mainly due to the implemented CPI-adjusted price increase. Additional
Slide 12: Q3 2023 B/S – Financial Debt and Capitalisation
Q3 2023 B/S – FINANCIAL DEBT AND CAPITALISATION FINANCIAL DEBT HUF Mn CAPITALISATION as of 21 NOV 2023 (30 SEPT 2023) Credits & loans & bonds 755,637 Share Price (HUF) 800 (long-term) Other long-term liabilities 6,625 Total Number of Shares 299,074,974 Finance lease liabilities MARKET CAP 115,273 23
Slide 13: Memorandum of Understanding with Telecom Egypt: Subsea Cable
Memorandum of Understanding with Telecom Egypt: Construction of a high-capacity subsea cable between Egypt and Albania
Slide 14: Memorandum Signed with Telecom Egypt: Intercontinental Connectivity
MEMORANDUM SIGNED WITH TELECOM EGYPT ON THE 4TH OF OCTOBER MARKING AN ENTRY INTO A NEW AND STRATEGICALLY IMPORTANT BUSINESS FIELD: INTERCONTINENTAL CONNECTIVITY Context: ▪ With a vast expertise in subsea international connectivity and unique georgraphical position, Telecom Egypt is the partner-of-ch
Slide 15: Memorandum of Understanding with the Government of Hungary
Memorandum of Understanding concluded with the Government of Hungary
Slide 16: 4iG Will Contribute to the 4th Industrial Revolution
MEMORANDUM SIGNED ON THE 9TH of NOVEMBER: 4IG WILL CONTRIBUTE TO THE 4TH INDUSTRIAL REVOLUTION 4iG Group’s commitments: ▪ Mobile and fixed network investments worth HUF 150 billion by 2028 ▪ Gigabit-capable networks available in an additional 1.1 million households (fixed or high-capacity 5G wireles
Slide 17: Overview of the Transformation Programme
Overview of the transformation programme
Slide 18: 4iG Group's Unique Consolidation Story Since 2018
4IG GROUP’S UNIQUE EXECUTIVE CONSOLIDATION STORY SINCE 2018: SUMMARY STRATEGIC PORTFOLIO BUILDING WITH STRONG SYNERGY EXECUTION Since the ownership change in 2018, as a result To fully unlock the potential for value creation, a transformation of of strategic portfolio building, the Group has the cur
Slide 19: Transformation Rationale
TRANSFORMATION RATIONALE Drivers Benefits Several international examples support 4iG Group can serve as an international success the success of commercial and story in the transformation of companies infrastructure separation The new model will help realize the full Significant growth in the enterpr
Slide 20: Operating Model Restructuring Targets Next Level Value Creation
VIA OPERATING MODEL RESTRUCTURING WE TARGET NEXT LEVEL VALUE CREATION FURTHER GROWTH HUF ~400* bn increase in EV based on preliminary estimations OPPORTUNITIES Target state TRANSFORMATION rgies syne w Ne ities po rtun ion op rmat on sfo nsi ran pa g al t ent er ex Le lopm th pme nt e ve ur velo al d
Slide 21: Indicative Valuation: Minimum HUF 400 bn Further Value Creation
INDICATIVE VALUATION: MINIMUM OF HUF 400 BN FURTHER VALUE CREATION IN ENTERPRISE VALUE (EV) EXPECTED Network synergies FTTx investments in 1.1 mn households, 5G upgrades, wholesale capabilities EBITDA improvement via more ✓ efficient operations Commercial synergies Complex B2C & B2B value propositio
Slide 22: Additional Growth Opportunities: Albania, Subsea Cable, Rheinmetall
ADDITIONAL GROWTH OPPORTUNITIES WITH ALBANIAN FIXED AND TOWER ASSETS, THE SUBSEA CABLE PROJECT AND THE RHEINMETALL STRATEGIC PARTNERSHIP TRANSFORMATION IN HUNGARY STRATEGIC PARTNERSHIP WITH RHEINMETALL IN: 1. IT SSC FIXED ACCESS ASSETS IN Rheinmetall-4iG Digital SUBSEA CABLE ALBANIA Services LLC. jo
Slide 23: Q&A
Q&A
Slide 24: Thank You for Your Attention!
THANK YOU FOR YOUR ATTENTION!
Slide 25: Disclaimer
DISCLAIMER WE CAUTION YOU THAT A NUMBER OF IMPORTANT FACTORS COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN ANY FORWARD-LOOKING STATEMENT. IN ADDITION TO FIGURES PREPARED IN ACCORDANCE WITH IFRS, 4IG ALSO PRESENTS OTHER FINANCIAL PERFORMANCE MEASURES, INCLUDING, AMONG OTHERS