Slide 1: Investor presentation for the year ended December 31, 2016
DIGI COMMUNICATIONS N.V. (“the Company” or “DIGI”) Investor presentation for the year ended December 31, 2016 Parent Company of
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 which has changed its name to Digi Communication
Slide 3: Group overview
Group overview ‘Mil € Romania Hungary Spain & Other3 Total Year ended Year ended Year ended Year ended Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Revenues2 €615.4 m €137.9 m €94.3 m €842.8 m EBITDA €202.3 m €51.3 m €9.7 m €263.3 m Adj EBITDA margin¹ 32.9% 37.2% 10.2% 31.2% Service offering
Slide 4: Recent developments (1/2)
Recent developments (1/2) Business • On April 11, 2017 Cable Communications Systems N.V changed its name to Digi Communications N.V. (“the Company”, “DIGI”). • On April 11, 2017, DIGI announced its intention to launch an initial public offering (the "IPO" or the "Offering") of class B ordinary share
Slide 5: Recent developments (2/2)
Recent developments (2/2) Legislative Romania Several changes to the Romanian tax legislation enacted by the Romanian Parliament entered into force starting January 2017. Some of the changes are: • VAT decrease from 20% to 19%. • Tax on special constructions (including networks) was discontinued. Hu
Slide 6: Financial highlights
Financial highlights Results from continuing operations Key considerations • Revenues in Romania increased mainly as a result of: 2 Eur. m Revenues Adj. EBITDA CAPEX • Increase in mobile telephony RGUs, 900 843 ARPU and related sales of equipment. 800 746 • Increase in our cable Tv and fixed interne
Slide 7: Highlights Romania (1/2)
Highlights Romania (1/2) Revenue and Adj EBITDA Results of Operations1 Three months Twelve months ended % ended % ‘Mil € December 31, change December 31, change 20152 2016 20152 2016 Revenues 144.8 165.1 14.0% 541.8 615.4 13.6% Adjusted EBITDA 49.53 51.5 4.0% 179.63 202.3 12.6% Margin % 34.2% 31.2%
Slide 8: Highlights Romania (2/2)
Highlights Romania (2/2) Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs December 31, Last 12 Last 3 2015 2016 months months Cable TV 2,733 2,865 132 44 Fixed internet and data 1,976 2,115 139 50 Mobile telecommunications services1 2,698 3,213 515 154 Fixed-line telephon
Slide 9: Highlights Hungary (1/2)
Highlights Hungary (1/2) Revenue and Adj EBITDA Results of Operations Three months ended % Year ended % ‘Mil € December 31, change December 31, change 2015 2016 2015 2016 Revenues 32.2 37.6 16.8% 125.9 137.9 9.5% Adjusted EBITDA 12.4 12.0 -3.2% 49.4 51.3 3.8% Margin % 38.4% 31.9% 39.2% 37.2% Key con
Slide 10: Highlights Hungary (2/2)
Highlights Hungary (2/2) Subscribers Key considerations RGUs Period Ended Net Additions Thousand RGUs December 31, Last 12 Last 3 2015 2016 months months Cable TV 437 473 36 6 Fixed internet and data 382 428 46 11 Mobile telecommunications services1 16 14 (2) (1) Fixed-line telephony 327 353 26 6 DT
Slide 11: Highlights Other Territories
Highlights Other Territories Revenue and Adj EBITDA Three months Year ended ended ‘Mil € December 31, % change December 31, % change 2015 2016 2015 2016 Revenues Spain1 20.0 21.3 6.5% 73.8 84.7 14.8% Other 2.1 2.7 28.6% 7.5 9.6 28.0% Czech Republic2 - - N.M 3.8 0.0 -100.0% 22.1 24.0 85.1 94.3 Adj EB
Slide 12: Group Financial Profile (1/2)
Group Financial Profile (1/2) Financial liabilities as of Maturity profile Long term loans & Notes December 31, 20161 (Mil €)2 Amount 400 Facility (Mil €) 350 2016 Senior Secured Notes2 350.0 2016 Senior Facility2 336.9 300 Financial leases 5.8 Other long term debt 52.0 200 Other short term debt 11.
Slide 13: Group Financial Profile (2/2)
Group Financial Profile (2/2) 800 713 710 773 15 54 50 Key considerations 600 758 659 661 400 Total net debt1 as of December 31, 2016 is €757.9 million Net Leverage2 is 2.9x and Gross Leverage is 200 2014 2015 2016 3.0x. Net Debt Cash 3.8x 3.5x 3.3x 3.1x 3.0x 3.0x 3.0x 2.8x 2.8x 2.9x 2.5x 2.8x 2.
Slide 14: Contact
Contact You can find us on: Web: investors.rcs-rds.ro Email: investor.relations@rcs-rds.ro 14 DIGI
Slide 15: Q&A
Q&A 15 DIGI
Slide 16: Appendices
Appendices 16 DIGI
Slide 17: Revenue streams
Revenue streams 2016 revenue split by product 2016 revenue split by country Other revenues 13% Cable TV Italy Spain 1% DTH 26% 10% 8% Fixed-line Hungary telephony 16% 4% Mobile Fixed telecommun internet and ications data Romania services 24% 73% 25% 17 DIGI
Slide 18: Group Results (P&L)
Group Results (P&L) For the three months For the twelve months ‘Mil € ended ended December 31, % change December 31, % change 20153 2016 2015 3 2016 Revenues1 Romania 144.4 164.4 13.9% 540.1 612.7 13.4% Hungary 32.2 37.6 16.8% 125.9 137.9 9.5% Spain 19.7 20.8 5.6% 72.7 83.0 14.2% Italy 2.1 2.6 23.8%
Slide 19: Cash Flow
Cash Flow Summary of Cash flows Year ended ‘Mil € December 31, 2015 2016 Cash flows from operations before working capital changes 237.2 266.6 Cash flows from changes in working capital 4.2 (11.3) Cash flows from operations 241.5 255.3 Interest paid (44.2) (44.0) Income tax paid (5.1) (7.8) Cash flo
Slide 20: Forex development
Forex development RON/EUR Exchange Rate 2016 HUF/EUR Exchange Rate 2016 4.50 310 313 312 313 312 311 4.49 4.50 4.49 311 4.45 308 309 4.46 4.47 4.45 4.44 306 4.40 4.43 4.43 300 4.35 4.30 290 4.25 4.20 280 4.15 4.10 270 4.05 4.00 260 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q4 14 Q1 15 Q2
Slide 21: Summary corporate and financial structure
Summary corporate and financial structure RCS Management, S.A. (Romania) 63% Cable Communication New Senior Systems N.V.² Secured Notes (The Netherlands) €350m3 96%¹ Proceeds loan RON 1,530 M Senior RCS & RDS S.A. Facilities Agreement3 (Romania) 100% 100% 100% DIGI T.S. Kft DIGI Spain DIGI Telecom H