Altice Europe — Q2 2020 Earnings Presentation
22 slides from Altice Europe's earnings presentation, Jul 30, 2020
Slide 1: Altice Europe Q2 2020 Results
Altice Europe Q2 2020 Results July 30, 2020
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS Certain statements in this presentation constitute forward-looking statements. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitatio
Slide 3: Altice Europe Q2 2020 Summary
Altice Europe Q2 2020 Summary Subscriber net gains in all geographies and all segments despite shops closed in April and May Telecom revenue ex equipment and roaming grew by +4.2% Telecom EBITDA grew by +1.0% with higher EBITDA margin Total OpFCF grew by +14.1% Fastfiber transaction in Portugal clos
Slide 4: Telecom Commercial Performance – Residential Fixed
Telecom Commercial Performance – Residential Fixed Fibre conversion is accelerating in France Residential fixed net adds (‘000) France Portugal Israel Dominican Republic Altice Europe +53 +37 +40 +31 +7 +6 +7 +1 +1 +2 +71 +100 +35 +29 +6 +7 -1 +2 +112 +139 Q2-19 Q2-20 Q2-19 Q2-20 Q2-19 Q2-20 Q2-19 Q
Slide 5: Telecom Commercial Performance – Residential Mobile
Telecom Commercial Performance – Residential Mobile Positive subscriber trends despite majority of shops closed in April and May Residential postpaid mobile net adds (‘000) France Portugal Israel Dominican Republic Altice Europe +155 +105 +110 +99 +31 +17 +14 +5 +5 -10 Q2-19 Q2-20 Q2-19 Q2-20 Q2-19
Slide 6: Altice Europe Revenue Trends
Altice Europe Revenue Trends Residential service revenue continues to grow Total Telecom ex equipment & roaming Components of Q2 2020 revenue trends YoY (€m) (€m) +4.2% • Telecom ex equipment and roaming: +4.2% 3,583 3,540 277 202 • Residential services: +1.5% 3,202 231 175 3,073 • Business services
Slide 7: Altice France Revenue Trends
Altice France Revenue Trends Residential service revenue continues to grow Total Telecom ex equipment & roaming Components of Q2 2020 revenue trends YoY (€m) (€m) +6.4% • Telecom ex equipment and roaming: +6.4% 2,590 2,595 • Residential services: +2.2% 104 56 2,390 131 2,246 181 • Business services:
Slide 8: Altice International Revenue Trends
Altice International Revenue Trends Total Telecom ex equipment & roaming Components of Q2 2020 revenue trends YoY (€m) (€m) • Telecom ex equipment and roaming: -1.9% 1,013 -1.9% • Portugal: -2.8% 951 116 • Israel: +6.9% (CC +2.3%) 88 827 812 141 118 • Dominican Republic: -13.3% (CC -5.8%) 126 109 •
Slide 9: Altice Europe Financials
Altice Europe Financials €m Q2-19 Q2-20 Growth YoY Reported Growth YoY Constant FX France 2,590 2,595 +0.2% +0.2% Altice International 1,014 951 -6.2% -6.3% Altice TV 57 58 - - Corporate and Other, Eliminations -76 -64 - - Total Revenue 3,583 3,540 -1.2% -1.2% Telecom Revenue 3,383 3,402 +0.6% +0.6%
Slide 10: Altice Europe Capital Structure
Altice Europe Capital Structure Altice Europe N.V €28,589m ✓ Capital structure simplified with direct access to free cash flow Net Debt Net Leverage 5.2x ✓ No significant debt maturities until 2025, WAL of 6.1 years ✓ Significant liquidity of €3.7 billion 100% 100% Altice Corporate Altice TV Financi
Slide 11: Q2 2020 Free Cash Flow
Q2 2020 Free Cash Flow Altice Europe Altice Europe excluding TV (€m) 773 (303) (25) (205) (596) (93) 146 115 (31) OpFCF Interest Pensions Taxes Change in WC Ex-TV TV Altice Europe & other FCF FCF FCF Altice Europe mid-term full-year organic FCF target1: > €1 billion 1. Excluding spectrum and signifi
Slide 12: Update on Cash Interest Savings Program
Update on Cash Interest Savings Program Lower interest costs to drive higher FCF generation Altice Europe interest cost evolution Components of lower interest costs (€bn) • FY 2019 (A) - €470m • Accrued interest starting point for FY 2019 ✓ 1.84 1.56 • FY 2020E (B) - €230m 1.37 • Cash interest expec
Slide 13: FY 2020 Outlook Update
FY 2020 Outlook Update Maintaining 2020 guidance Accelerate residential service revenue growth in our key geographies (+1.5% year to date) Revenue Grow Group revenue Main negative financial impacts include: (+1.2% year to date) • Sale of equipment while shops were closed • Roaming • Advertising Grow
Slide 14: Q&A
Q&A 14 altice
Slide 15: Appendix
Appendix 15 altice
Slide 16: Detailed Financials
Detailed Financials €m Q2-19 Q2-20 Growth YoY Reported Growth YoY Constant FX France 2,590 2,595 +0.2% +0.2% Portugal 522 499 -4.2% -4.2% Israel 235 246 +4.5% +0.1% Dominican Republic 141 118 -16.1% -8.8% Teads 116 88 -24.3% -24.9% Altice TV 57 58 - - Corporate and Other, Eliminations -76 -64 - - To
Slide 17: Non-GAAP Reconciliation to Unaudited GAAP Measures
Non-GAAP Reconciliation to Unaudited GAAP Measures1 For the six months ended €m June 30, 2020 (unaudited) Revenue 7,165.5 Purchasing and subcontracting costs -1,883.7 Other operating expenses -1,337.9 Staff costs and employee benefits -712.5 Total 3,231.4 Share-based expense -23.9 Rental expense ope
Slide 18: Altice Europe Debt Maturity Profile
Altice Europe Debt Maturity Profile1 (€bn) 0.1 0.1 0.1 1.2 0.1 4.9 12.3 5.1 6.5 2020 2021 2022 2023 2024 2025 2026 2027 2028 Altice France Altice International Altice Corporate Financing 1. Maturity profile excluding leases/other debt (c. €147 million) 18
Slide 19: Q2 2020 Free Cash Flow
Q2 2020 Free Cash Flow Altice Europe Altice Europe excluding TV 7 (€m) 39 (39) (1,423) 773 2,118 2,200 777 (303) (25) (205) (93) 146 115 (31) OpFCF Interest Pensions Taxes Change in Ex-TV TV Altice M&A Other Net debt Gross debt Change WC FCF FCF Europe investing reduction1 reduction1 in & other FCF
Slide 20: Pro Forma Net Debt Reconciliation as of June 30, 2020
Pro Forma Net Debt Reconciliation as of June 30, 2020 €m Actual Pro Forma Altice Europe Reconciliation to Swap Adjusted Debt Total Debenture and Loans from Financial Institutions 32,619 30,619 Value of debenture and loans from financial Institutions in foreign currency converted at closing FX rate -
Slide 21: Pro Forma Net Leverage Reconciliation as of June 30, 2020
Pro Forma Net Leverage Reconciliation as of June 30, 2020 €m Altice Telecom Perimeter Altice Altice Intra-Group Altice Altice Altice TV ACF Others Europe Altice Europe (Pro Forma) Telecom Eliminations France International Consolidated Perimeter Gross Debt Consolidated 21,503 7,619 29,122 - 1,060 - 3
Slide 22: Additional Footnotes
Additional Footnotes Telecom revenue excludes eliminations Page 3, 6 Sale of 49.99% of Fastfiber: €1,573 million cash proceeds received at closing on April 17, 2020. In addition, €750 million earn-out consisting of €375 million in December 2021 and €375 million in December Page 3 2026 Debt repaid si