Cyfrowy Polsat Sa · GPW:CPS
Cyfrowy Polsat Sa — Q2 2022 Earnings Presentation
41 slides from Cyfrowy Polsat Sa's earnings presentation, Aug 18, 2022
Slide 1: Financial results Q2'22
Financial results Q2’22 18 August 2022
Slide 2: Disclaimer
Disclaimer This presentation may include forward-looking statements, understood as all statements (other than statements of historical facts) regarding our financial results, business strategy, plans and objectives pertaining to our future operations (including development plans related to our produ
Slide 3: Speakers
Speakers MIROSŁAW BŁASZCZYK MACIEJ STEC KATARZYNA OSTAP-TOMANN STANISŁAW JANOWSKI PRESIDENT OF THE MGMT BOARD VICE-PRESIDENT FOR STRATEGY MEMBER OF THE MGMT BOARD, CFO PRESIDENT, TELEWIZJA POLSAT 3
Slide 4: Agenda
Agenda 1. Key events in Q2’22 2. Operating results 3. Financial results 4. Summary and Q&A
Slide 5: Key events in Q2'22
Key events in Q2’22 Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 6: Key events in Q2'22
Key events in Q2’22 ● We have acquired Port Praski – an exceptional real estate development project located in the strict center of Warsaw – and we have signed a JV agreement with a highly experienced European developer – HB Reavis with whom we would like to build office towers. ● We have acquired t
Slide 7: Operating results
Operating results
Slide 8: Media segment: TV and online
Media segment: TV and online Stanisław Janowski President of the Management Board, Telewizja Polsat
Slide 9: The number of users of our Internet portals increased to 21 million
The number of users of our Internet portals increased to 21 million ● We are a leading Internet publisher in Poland Average monthly number of users thanks to the acquisition of Interia.pl 20.3 20.8 21.8 21.8 21.7 21.7 17.6 17.9 16.7 17.7 (millions of RU) ● Our leading position in the online media: −
Slide 10: Viewership of our channels in Q2'22
Viewership of our channels in Q2’22 ● Viewership results of TV Polsat Group Audience shares channles in line with the strategy despite the Main channels Thematic channels 16.6% negative impact of refarming to the DVB-T2 7.7% 7.7% 6.1% 15.1% 5.3% 9.6% standard Polsat TVN TVP1 TVP2 POLSAT (2) Warner T
Slide 11: Position on the advertising market in Q2'22
Position on the advertising market in Q2’22 Market expenditures on TV advertising ● Stable level of advertising and sponsorship and sponsorship revenue of TV Polsat Group against the 1,193 -3.3% 1,154 backdrop of a declining market (mPLN) ● As a result, our share in the TV advertising and sponsorshi
Slide 12: Viewership of our channels in H1'22
Viewership of our channels in H1’22 ● Our main channel is the viewership leader in Audience shares the commercial group (16-59 age group) Main channels Thematic channels 8.0% 7.8% 16.8% 15.0% 5.9% 5.4% 9.6% Polsat TVN TVP1 TVP2 POLSAT (2) Warner TVP Bros.Discovery(3) Dynamics of audience share resul
Slide 13: Position on the advertising market in H1'22
Position on the advertising market in H1’22 Market expenditures on TV advertising ● Stable level of advertising and sponsorship and sponsorship revenue of Telewizja Polsat Group against the 2,149 -1.6% 2,114 backdrop of a declining market (mPLN) ● As a result, our share in the TV advertising and spo
Slide 14: B2C and B2B services segment
B2C and B2B services segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 15: Almost 2.5 million customers of the multiplay offer
Almost 2.5 million customers of the multiplay offer ● Consistent implementation of our multiplay Number of multiplay customers1 strategy results in a stable increase in the +2% (thous. customers) 3000 2,462 65% 2,415 2,460 number of customers with bundled services 2500 60% 55% 2000 by 45K YoY 1500 4
Slide 16: Our B2C customers use an increasing number of contract services
Our B2C customers use an increasing number of contract services ● Increase in the number of contract services Number of RGUs in the B2C contract segment by 161K YoY +1% 13.19m 13.38m 13.35m ● Growth of mobile services driven by the 2.0m 2.0m 2.0m successful implementation of our strategy of cross-se
Slide 17: ARPU growth in B2C thanks to the consistent implementation of our multiplay strategy
ARPU growth in B2C thanks to the consistent implementation of our multiplay strategy and popularization of 5G tariffs 74 3 ● 3.5% YoY increase in ARPU resulting from 72 +3.5% 3 70.2 the consistent building of the value of the 70 69.8 2 existing customer base 68 67.8 2 ● Effective upselling of produc
Slide 18: Growing base and ARPU of prepaid services
Growing base and ARPU of prepaid services ● The scale of the mobile telephony RGU base Prepaid RGU positively influenced by the effects of the 2.60m 2.83m 2.77m support action consisting in the distribution of free starters for refugees from Ukraine ● Increase in ARPU thanks to changes in our Q2'21
Slide 19: High base and stable ARPU of B2B customers
High base and stable ARPU of B2B customers ● Polsat Plus Group serves 68.8 thous. B2B Number of B2B customers customers, successfully maintaining the size 68.3k 68.9k 68.8k of this base ● Successively expanded offer of communication and ICT services enables us Q2'21 Q1'22 Q2'22 to maintain ARPU from
Slide 20: Clean energy segment
Clean energy segment Maciej Stec Vice President of the Management Board, Cyfrowy Polsat
Slide 21: Goal #1: leading producer of clean, green energy
Goal #1: We want – jointly with ZE PAK – to become a leading producer of clean, green energy thermal waste biomass solar wind on-shore wind off-shore SMR treatment Goal: Goal: Goal: Goal: Goal: Goal: 100 MW 600 MW 250 MW 2 installations support support Source: GE Hitachi Nuclear Energy In operation
Slide 22: Goal #2: leading producer of green hydrogen
Goal #2: We want – jointly with ZE PAK – to become a leading producer of green hydrogen production of storage and distribution of green energy end-user products end-user products green hydrogen transportation green hydrogen Solar energy Goal: Goal: Goal: Goal: Goal: Wind energy Electrolysis plant 10
Slide 23: Clean Energy activities starting to impact financial results
Our activities in the area of Clean Energy are starting to have a positive impact on the financial results of Polsat Plus Group ● The biggest photovoltaic farm in Poland, located in Brudzew, has produced 42.9 GWh of clean, green energy in H1’22 ● We have doubled the scale of our on-shore wind invest
Slide 24: Executing Strategy 2023+ in clean energy and green hydrogen
We are dynamically executing the Strategy 2023+ in the segment of clean energy and green hydrogen Construction of foundations for a wind trubine in Miłosław Second biomass turbine in Konin 24 Hydrogen compressor | Electrolyzer Hydrogen trailer with the capacity of 1000 kg
Slide 25: NesoBus – Polish hydrogen bus
NesoBus – Polish hydrogen bus DESIGN POLISH PROTOTYPE
Slide 26: Financial results
Financial results Katarzyna Ostap-Tomann CFO, Cyfrowy Polsat
Slide 27: Results of the Group in Q2'22
Results of the Group in Q2’22 Revenue EBITDA adjusted for IC delta adjusted, excl. NetCo result1 +5.8% 3,228 -5.9% 949 893 3,052 Q2'21 Q2'22 Q2'21 Q2'22 LTM FCF Net debt/EBITDA LTM 1,442 -7.1% 1.39x 1.01x 1,340 Q4'21 Q2'22 Q4'21 Q2'22 Source: Consolidated financial statements for the 6-month period
Slide 28: Revenue and EBITDA – change drivers
Revenue and EBITDA – change drivers Revenue EBITDA adjusted, excl. NetCo result1 +6% | +176m (excl. IC delta) 1,141 +2% | +68m (incl. IC) 3,228 3,160 +37 +44 -23 949 -6% | -56m -107 +117 -192 893 -11 -47 +4 -2 (mPLN) (mPLN) 36% 30% 28% EBITDA margin Revenue reduction in increase in Consolidation R
Slide 29: High cash generation despite unfavorable macroeconomic factors
High cash generation despite unfavorable macroeconomic factors Adjusted FCF after interest mPLN Q2’22 6M’22 Switch to the capex light model • EBITDA Net cash from operating activities -133 446 growth • UMTS fee Increased • Decline in • Inflationary • Asseco inventory liabilities • Increased pressure
Slide 30: In H1'22 acquisition projects, RES support and NetCo tax settlement
In H1'22, we carried out acquisition projects and provided cash support for the development of RES proejcts under the Strategy 2023+ and we settled a one-time tax on NetCo disposal FCF 6M’22: PLN 532m -518.7 1,313.8 -296.7 3,644.3 CAPEX1 /revenue -729.8 9.4% -426.0 -868.0 (mPLN) -638.0 -393.9 1,062.
Slide 31: The Group's debt
The Group’s debt Debt structure Carrying amount by instrument type by currency mPLN as at Bonds 30 June 2022 19% SFA (Tranche A and B) 8,376 Banking debt PLN 81% 100% Revolving Credit Facility (RCF) - Bonds 2,054 Leasing and other 542 Gross debt 10,972 Debt maturing profile As at 30 June 2022 Cash a
Slide 32: Summary and Q&A
Summary and Q&A Mirosław Błaszczyk President of the Management Board, Cyfrowy Polsat
Slide 33: Summary & Q&A
Summary & Q&A ● We successfully implement our multiplay strategy, which translates into a very low churn rate (6.8%) and growing ARPU (PLN 70.2), leading to a stable, recurring growth of retail revenue ● We are dynamically executing the Strategy 2023+ in the segment of clean energy: we have contract
Slide 34: Additional information
Additional information
Slide 35: Results of the segment of B2C and B2B services
Results of the segment of B2C and B2B services YoY ● Successive building of ARPU translates mPLN Q2’22 into the stable growth of retail revenue, change which - together with dynamically growing Revenue 2,671 0% revenue from the sale of smartphones – compensates the loss of wholesale Operating costs(
Slide 36: Results of the media segment
Results of the media segment YoY ● Revenue under the positive impact of mPLN Q2’22 change growing revenue from online advertising, Revenue 607 6% from cable TV / DTH operators and from the sale of licenses, sub-licenses and Operating costs(1) 465 22% property rights ● We have decided to maintain our
Slide 37: Results of the real estate segment
Results of the real estate segment ● The real estate segment covers mainly mPLN Q2’22 the execution of construction projects, as Revenue 44 well as the sale, lease and management of our own and leased real estate Operating costs(1) 43 properties ● Currently, this segment has a pool of Adjusted EBITD
Slide 38: Revenue structure
Revenue structure mPLN ● Increase in retail revenue as a result of the successful 1,726 execution of our strategy aimed at building customer value, Retail revenue which is reflected in high dynamics of ARPU growth, as well 1,665 4% as the consolidation of the results of Premium Mobile from July 20
Slide 39: Operating costs structure
Operating costs structure mPLN ● Higher technical costs and cost of settlements with Technical costs and cost of settlements 808 telecommunication operators mostly due to the recognition of costs with telecommunication operators 633 28% resulting from the agreement on using the mobile infrastructu
Slide 40: Glossary
Glossary RGU (Revenue Single, active and retail revenue generating service of pay TV provided in all types of access technologies, mobile Generating Unit) or fixed-line Internet access, or mobile telephony provided in the contract or prepaid model. A natural person, legal entity or an organizational
Slide 41: Investor Relations
Investor Relations Cyfrowy Polsat S.A. Konstruktorska 4 02-673 Warszawa Tel.: +48 (22) 426 85 62 +48 (22) 356 65 20 +48 (22) 337 93 14 Email: ir@cyfrowypolsat.pl https://grupapolsatplus.pl