Digi Communications NV · BVB:DIGI
Digi Communications NV — Investor Presentation (September 2019)
26 slides from Digi Communications NV's investor presentation, September 2019
Slide 1: DIGI Communications N.V.
DIGI COMMUNICATIONS N.V. (“the Company” or “DIGI”) September 2019 Private & Confidential 1 Private & Confidential
Slide 2: Disclaimer
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 Digi Communications N.V., (the "Company“ or “DIGI”) and solely for use during the pres
Slide 3: Summary
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 H1 2019 Financial Results 3 Private Private&&Confidential Confidential
Slide 4: Summary: DIGI Group Profile
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 H1 2019 Financial Results 4 Private Private&&Confidential Confidential
Slide 5: Overview of Digi Communications
Group Overview of Digi Communications H1 2019 RGUs Digi Group: 15,485k 100% 100% 100% Romania Hungary Spain & Italy H1 2019 RGUs: 11,116k H1 2019 RGUs: 2,476k H1 2019 RGUs: 1,893k RGU breakdown (H1 19) RGU breakdown (H1 19) RGU breakdown (H1 19) Fixed-line DTH DTH Fixed telephony 5% Fixed-line inter
Slide 6: Long Track Record of Sustained Growth and Market Innovation
Group Long Track Record of Sustained Growth and Market Innovation Digi history Invitel’s RGU1 acquisition in Majority FTTB Hungary (m) Launch of Launch of Nationwide 4G upgrade internet & MVNO in launch of launch Founded by Network completed data services Spain 1Gbps speeds Zoltán Teszári upgrade to
Slide 7: Translating into Financial Performance
Group Translating into Financial Performance Group Revenue (€ m) ✓ 15.5m RGUs as of June 30, 2019 offering cross & upsell potential +13.3% – €575.2m revenues and €199.4m Adj. EBITDA1 for the 6 month period 1,038 917 – 4.9m Pay-TV, 3.4m Internet, 1.8m Fixed telephony and 5.3m Mobile +18.3% RGUs2 575
Slide 8: Summary: DIGI Core Markets
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 H1 2019 Financial Results 8 Private Private&&Confidential Confidential
Slide 9: Market Leader in Romanian Fiber and Challenger in Mobile
Market Leader in Romanian Fiber and Challenger in Mobile Uniquely positioned 2 growth pillars Romanian market share estimation (RGUs, Q4 18) Romania revenues (€ m)2 Internet Others +3.8% 16% TV 1 1 377 392 19% +9.0% Fiber 12% network 12% 50% 50% 19% 22% 194 211 2017 2018 H1 2018 H1 2019 +9.7% 12% 2
Slide 10: State-of-the-art Fiber-Based Infrastructure
State-of-the-art Fiber-Based Infrastructure • GPON network: high fiber share − Very dense; taking fiber into the home or its immediate vicinity − Early adopter of Ethernet as main technology in 2006, using GPON since 2010 − Nationwide last-mile 1Gbps − Multiple 100Gbps capacities and multiple redund
Slide 11: Own mobile network
Own mobile network Newly built network in place • Own 3G network: ~99.5%1 population coverage − ~ 4,5001 mobile towers − Leading equipment suppliers (Ericsson, Huawei, Nokia) • Successful 4G launch to promote high speeds − ~ 3,1001 base stations − Current coverage ~65% of population1 • Dense fiber n
Slide 12: Hungary Market Overview
Hungary Market Overview Top market position Growth pillars Hungarian market share1 (RGUs, Q4 18) Hungary RGUs (‘000)2 1 17% DIGI 30% Magyar Telekom Cable TV 25% UPC Hungary Others 28% 757 696 691 18% 2 25% DIGI Magyar Telekom Fixed 22% Int UPC Hungary 276 35% Others 56 Cable TV Fixed internet Fixed
Slide 13: Overview of Spain and Italy
p. 13 Overview of Spain and Italy Spain Solid ethnic operator becoming a refence for value for money Spanish customers Highlights Brand Network DIGI mobile subscribers (‘000s) 1,634 ◼ Advancing to new segments of value for 1,124 Mobile money oriented towards Spanish telephony customers ◼ Main operat
Slide 14: Digi Group Investment highlights
Digi Group Investment highlights 1 At forefront of technology 2 Leading convergent player Seizing business development opportunities & growth in own 3 markets 4 Robust financial performance 14 Private & Confidential
Slide 15: Summary: H1 2019 Financial Results
Summary 1 DIGI Group Profile 2 DIGI Core Markets 3 H1 2019 Financial Results 15 Private Private&&Confidential Confidential
Slide 16: Group overview
Group overview Romania Hungary Spain & Other4 €m Total3 Total3 3 months 6 months 3 months 6 months 3 months 6 months 3 months 6 months June 30, June 30, June 30, June 30, June 30, June 30, June 30, June 30, 2019 2019 2019 2019 2019 2019 2019 2019 Revenues2 €187.5 m €368.8 m €55.4 m €110.4 m €52.3 m
Slide 17: Financial highlights
Financial highlights Results from continuing operations Key considerations • Revenues in Romania increased mainly as a result of the price increase across all residential services €m starting with March 2019 and the increase in our 1 cable TV and fixed internet and data RGUs. Revenues Adj. EBITDA CA
Slide 18: Group: Capex profile
Group: Capex profile Capex Key considerations • Disciplined capex approach €m − Focused on highest value projects − Flexible and agnostic approach 279 • Main investment projects: 243 • Fixed network has largely been upgraded in Romania and Hungary 160 138 • Most mobile capex invested in Romania • In
Slide 19: Leverage stable and conservative vs peers
Leverage stable and conservative vs peers Net Debt to Adj. EBITDA stable Conservative net debt to adj. EBITDA compared to peers Q2 2018 Net Leverage1 2 3.8x 5.8x 3.5x 3.3x 3.0x 2.8x 2.8x 3 3.0x 2.8x 5.3x 2.9x 2.5x 2.8x 2.8x 2.3x 2.0x 4.9x 1.8x 1.5x 4 1.3x 1.0x 3.8x Q2 2018 2018 Q2 2019 Gross Leverag
Slide 20: Contact
Contact ◼ You can find us on: ◼ Web: ◼ www.digi-communications.ro ◼ Email: ipo.relations@digi-communications.ro 20 Private Private&&Confidential Confidential
Slide 21: Appendix
APPENDIX 21 Private Private&&Confidential Confidential
Slide 22: Romania: RGU & ARPU
Romania: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions June 30, Thousand RGUs Last 12 Last 3 2018 2019 months months Cable TV 3,148 3,447 299 56 Fixed internet and data 2,384 2,636 252 46 Mobile telecommunications services1 3,367 3,383 16 (21) ▪ Steady growth in Cable TV
Slide 23: Hungary: RGU & ARPU
Hungary: RGU & ARPU Subscribers Key considerations RGUs Period Ended Net Additions June 30, Thousand RGUs Last 12 Last 3 2018(2) 2019 months(2) months Cable TV 684 696 12 4 Fixed internet and data 730 757 27 4 Mobile telecommunications services1 17 56 39 42 Fixed-line telephony 718 691 (27) 2 ▪ The
Slide 24: Other Territories: RGU
Other Territories: RGU Subscribers RGUs Period Ended Net Additions June 30, Thousand RGUs Last 12 Last 3 2018 2019 months months Spain Mobile telecommunications services 1,124 1,634 510 138 Fixed internet and data - 33 33 14 Fixed-line telephony - 13 13 6 Italy Mobile telecommunications services 209
Slide 25: Group Financial Profile
Group Financial Profile Debt structure Key considerations €m 917.2 920.2 950.4 16.9 21.0 13.8 ▪ Total preliminary net debt1 as of June 30, 2019 is €933.5 million. ▪ Preliminary Net Leverage2 is 2.7x and Preliminary Gross 933.5 Leverage is 2.8x. 896.2 906.4 Q2 2018 2018 Q2 2019 Net Debt Cash 1. Gross
Slide 26: Group Financial Profile
Group Financial Profile Maturity profile Long term loans & Notes Financial liabilities as of June 30, 20191 (Mil €) Amount 620 Facility (Mil €) Senior Secured Notes 550.0 2016 Senior Facility 222.0 2018 Senior Facility 75.0 Financial leases 8.4 Other long term debt 47.4 Other short term debt 47.6 16
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