Slide 1: Investor presentation for the year ended December 31, 2014
Investor presentation for the year ended December 31, 2014 Cable Communications Systems (CCS) Parent Company of May 7, 2015
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 (“CCS" or the "Company") and solely for use during t
Slide 3: Group overview
p. 3 Group overview Romania Hungary Others Total Year ended Year ended Year ended Year ended December 31, 2014 December 31, 2014 December 31, 2014 December 31, 2014 Revenues and other income² €471 m €119 m €74 m €662m² EBITDA €177 m €47 m €7 m €231m EBITDA margin¹ 38% 39% 10% 35% Service offering /
Slide 4: Recent Developments
p. 4 Recent Developments On April 30, 2015 we signed a new facility agreement which will refinance our New Senior Facilities Agreement and convert the current EUR exposure into RON. The total amount of this facility is the equivalent in RON of €235 million at the exchange rate of 4.4 RON/EUR (RON
Slide 5: Recent Developments
p. 5 Recent Developments On January 15, 2015 we acquired the rights for the Romanian Football League for the period February 2015 – May 2019. On December 22, 2014 we signed the contract for the acquisition of two radio stations in Romania. In February 2015 the National Audiovisual Council approv
Slide 6: Financial highlights
p. 6 Financial highlights Results from continuing1 operations Revenues increased as a result of increase in sale of equipments to clients and as a Eur. m result of increase in RGUs 700 662 EBITDA margin decreased primarily due to Revenues Adj. EBITDA CAPEX sales of equipments at cost and increas
Slide 7: Highlights Romania – Revenues and Adj EBITDA
p. 7 Highlights Romania – Revenues and Adj EBITDA Results of Operations For the year ended For the three months Results of Operations December 31, % change ended December 31, % change 2013 2014 2013 2014 (euro in millions) (euro in millions) Revenues(1) 417.8 471.1 12.8% 106.8 126.8 18.7% Adjusted E
Slide 8: Highlights Romania - KPIs
p. 8 Highlights Romania - KPIs Subscribers RGUs Period Ended Subscribers (Thousand RGUs) December 31, Net Additions 2013 2014 Last 12 months Last 3 months Cable TV 2,451 2,599 148 40 Fixed internet and data 1,683 1,834 151 50 Fixed-line telephony 1,519 1,470 (49) (15) Mobile telephony 1,089 1,388 29
Slide 9: Highlights Hungary – Revenues and EBITDA
p. 9 Highlights Hungary – Revenues and EBITDA Results of Operations Constant revenues in 2014 For the year ended % For the three months % Results of Operations December 31, change ended December 31, change compared with 2013 and slight 2013 2014 2013 2014 increase in revenues in Q4 (euro in millio
Slide 10: Highlights Hungary - KPIs
p. 10 Highlights Hungary - KPIs Subscribers RGUs Period Ended Subscribers (Thousand RGUs) December 31, Net Additions Steady growth of Triple Play Last 12 Last 3 2013 2014 months months subscribers and increase in Cable TV 404 411 7 6 the penetration of Internet Fixed internet and data 329 347 18 8
Slide 11: Highlights Other Territories
p. 11 Highlights Other Territories For the year ended % For the three months % December 31, change ended December 31, change 2013 2014 2013 2014 Spain: (euro in millions) (euro in millions) Revenues • Steady growth in RGUs Spain1 48.5 54.8 13.0% 12.4 15.4 23.9% • We have negotiated the Czech Repub
Slide 12: Group Financial Profile
p. 12 Group Financial Profile Maturity profile Term Loan & Notes Financial liabilities as of December 31, 2014 as of December 31, 2014 (EUR millions) Amount Facility (EUR millions) 500 450 Senior Secured Notes* 450.0 Term loan (5y) 250.0 400 Financial leases 7.0 Other short term debt 5.0 300 Hedging
Slide 13: Group Financial Profile (continued)
p. 13 Group Financial Profile (continued) Pro forma Maturity profile Loan & Notes On April 30, 2015 we signed a new facility (EUR millions) agreement which will refinance our New 500 473 Senior Facilities Agreement and convert the current EUR exposure into RON. Loan Bond The total amount of this
Slide 14: Group Financial Profile (continued)
p. 14 Group Financial Profile (continued) Gross / Net Debt (EUR millions) 800 730 628 668 54 13 50 Total net debt as of December 31, 2014 is 600 €675 million 400 Net Leverage is 2.9x and Gross Leverage is 615 617 675 3.2x. 200 Undrawn Portion of Financial Debt: €50 million, - 2012 2013 2014 Net
Slide 15: Financial Calendar
p. 15 Financial Calendar You can find us on: Web: investors.rcs-rds.ro Email: investor.relations@rcs-rds.ro Agenda Report Call Q1 2015 Results 12-Jun-15 Thursday 18-Jun-15 Q2 2015 Results 11-Sep-15 Thursday 17-Sep-15 Q3 2015 Results 11-Dec-15 Thursday 17-Dec-15 FY 2015 Results 29-Apr-16 Thur
Slide 16: Q&A Session
p. 16 Q&A Session CCS / RCS & RDS
Slide 17: Appendices
p. 17 Appendices CCS / RCS & RDS
Slide 18: Revenue streams
p. 18 Revenue streams 2014 revenue split by product 2014 revenue split by country Czech Other Republic Italy revenues 2% 1% 10% Spain 8% DTH Cable TV 13% 29% Hungary 18% Mobile telephony 11% Romania Mobile 71% internet and Fixed-line Fixed data telephony internet and 4% 6% data 27% CCS / RCS & RDS
Slide 19: Group Results (P&L)
p. 19 Group Results (P&L) For the year ended For the three months December 31, % change ended December 31, % change 2013 2014 2013 2014 (euro in millions) (euro in millions) Revenues Romania 415.1 469.7 13.1% 106.1 127.3 19.9% Hungary 119.0 119.1 0.0% 30.0 30.5 1.4% Spain 47.6 54.0 13.4% 12.2 15.2 2
Slide 20: Cash Flow
p. 20 Cash Flow Summary Cash Flow Year ended December 31, 2013 2014 (euro in millions) Cash flows from operations before working capital changes 271.0 232.0 Cash flows from changes in working capital (18.9) (5.7) Cash flows from operations 252.1 226.3 Interest paid (29.6) (46.7) Income tax paid (15.
Slide 21: FOREX development
p. 21 FOREX development RON/EUR Exchange Rate 2013 – 2014 HUF/EUR Exchange Rate 2013 – 2014 4.70 320 4.60 310 312 4.50 308 308 300 306 4.50 4.40 4.44 4.45 297 298 298 4.43 4.41 4.43 290 296 4.39 4.40 4.30 280 4.20 4.10 270 4.00 260 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2013 2013 2013 2013
Slide 22: Summary corporate and financing structure
p. 22 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% DIGI T.S. Kft DIGI Spain DIGI Telec