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Corporate Presentation 2019YE Disclaimer This presentation - PowerPoint PPT Presentation

Corporate Presentation 2019YE Disclaimer This presentation (Presentation) has been prepared by Forthnet S.A. (the Company) for informational purposes only. The information in this Presentation includes forward-looking statements, which


  1. Corporate Presentation 2019YE

  2. Disclaimer This presentation (“Presentation”) has been prepared by Forthnet S.A. (the Company”) for informational purposes only. The information in this Presentation includes forward-looking statements, which are based on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. Many of these risks and uncertainties relate to factors that are beyond the Company’s ability to control or estimate precisely. You a re cautioned not to place undue reliance on these forward-looking statements, which speak only as the date of this Presentation. The Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. Neither the Company, its affiliates nor their respective directors, officers, employees or agents (the “Group”) gives any rep resentation or warranty, express or implied, as to (i) the achievement or reasonableness of future projections, management targets, estimates, prospects, returns, business data or property described in this Presentation, if any or (ii) the accuracy or completeness of any information contained in this Presentation, any other written information or oral information provided in connection therewith or any data that any of them generates. Furthermore, and without prejudice to liability for fraud, no member of the Group accepts or will accept any liability, responsibility or obligation (whether in contract, tort or otherwise) in relation to these matters. Any prospective investor should make its own investigation on the Group and all information provided. This Presentation: (i) does not constitute an offer, invitation or solicitation by any member of the Group to subscribe for or purchase or sell any securities or assets in the United States or in any other jurisdiction, nor any form of commitment or recommendation by any member of the Group; (ii) will not, and nor will any other oral or written information made available to a prospective investor, other than a definitive and binding agreement, form the basis of any contractual or other agreement and (iii) does not contain all the information that a prospective investor may wish to have in connection with entering into any transaction. Neither this Presentation nor the information contained herein shall form the basis of any contract or commitment. The provision of this Presentation: (i) does not place any member of the Group under any obligation to provide any further information in relation to any transaction or to update this Presentation or any additional information or to correct any inaccuracies in any such information which may become apparent and (ii) does not place any member of the Group under any obligation to consider or accept any offer, irrespective of whether such offer is the only offer or one of a number of offers representing the highest price. Without prejudice to liability for fraud, each member of the Group disclaims any liability which may be based on this Presentation or any other written or oral information provided in connection therewith and any errors therein and/or omissions therefrom. The distribution of this Presentation in certain jurisdictions may be restricted by law and, accordingly, recipients of this Presentation represent that they are able to receive this Presentation without contravention of any unfulfilled registration requirements or other legal restrictions in the jurisdiction in which they reside or conduct business. Forthnet S.A. is a public company with shares listed on the Athens Stock Exchange since 2000. This Presentation should be read with, and in light of, all of the information made publicly available by the Company (including the Company's interim and annual financial statements) in the English language through its ordinary course communications on the Athens Stock Exchange, and all such information is expressly incorporated by reference in this Presentation. (2/31)

  3. Agenda 1. General Information & Financial Highlights 2. Key Developments & Milestones 3. Shareholder Structure, Bank Debt & adjusted EBITDA 4. Appendix a) Financials & KPIs b) Business Overview c) Infrastructure (3/31)

  4. Our History Forthnet: the market pioneer that brought Internet and Pay TV in Greece Enhanced bundling; Nova Energy launch Key Milestones 2018 (4/31)

  5. Company Overview  Leading innovation for 20 years: Forthnet introduced internet and pay-tv to Greece  With over 893K subscriptions , it is the second largest provider of bundled home entertainment and communication services in the country  Under the brand name NOVA , one of the most recognized in Greece, Forthnet offers a wide range of fixed telephony, broadband and Pay-TV services to:  661,000 unique customers  40,000 corporate customers and SMEs  The Government through the SIZEFXIS I network  Operators such as VOD, Wind, Cyta etc. through wholesale agreements in Greece and Cyprus  It owns the exclusive Pay-TV rights for:  The most popular sports content  The best movies and entertainment Company data as 2019 ΥΕ (5/31)

  6. Company Market Shares PAY-TV MARKET BROADBAND MARKET MOBILE MARKET 13% 37% 31% 48% 47% 24% 51% 11% 15% 22% Forthnet (Retail & Wholesale) Forthnet Vodafone Others Vodafone Wind Cosmote Wind Cosmote Cosmote Forthnet has a strong franchise Due to its premium in the retail and business BB / content, Forthnet commands A market ripe for MVNO telephony market more than 40% value share in launches Greece has become a 4-player the Pay-TV market market Sources: Companies’ financial results Estimated market data as 2019YE (6/31)

  7. Company Strengths & Opportunities  Forthnet has a leading position in the Greek 3Play market with a very strong, relevant to the local audience, Sports & Film TV product offering combined with a high quality telecom offering  The company is run by a very experienced management team and has proven its resilience under the most adverse conditions  The company has already created new revenue streams with the Novasports channels wholesale product for MNOs and the Universal Service provision contract  There are significant prospects for leveraging the company’s strengths and increasing profitability through service offering enhancement (MVNO, OTT, SIZEFXISII project etc.)  Reduction of DTH transmission cost could significantly enhance EBITDA  A release from the present cash constraints would enable the company to improve significantly its performance and market position Company data as 2019 ΥΕ (7/31)

  8. Company Key Facts & Figures *2018 Adjusted for Forth-CRS Revenues and EBITDA in 2018  Forthnet offers Pay-TV services through DTH & OTT platforms and Telco services through a fiber backbone network plus ULL  Its 6,100km fiber optic network spans the whole country, covering 94% of its customers  Forthnet’s distribution network consists of ~95 fully franchised shops across Greece, an e- shop , dedicated call centers , plus independent resellers  Since 2017 the company is the fixed telephony Universal Service Operator (USO) in the country Company data as 2019YE (8/31)

  9. FY 2019 Results at a glance • EBITDA reaches 37,1M with margin at 14,1% • Revenues at 262,8M impacted by 3Play revenue decline and CRS sale, partially offset by LLU, advertising and wholesale revenue growth • Costs decline by 16,4M following extensive cost reduction efforts in all categories • The company’s working capital constraints, affects the company’s capacity to compete on equal basis with other market players • Forthnet is preparing for the launch of mobile services (9/31)

  10. FY 2019 P&L vs. Prior Year ( € million) • 2019 EBITDA decreasing by (In millions of €) 2019 2018 Δ Revenues 262,8 285,2 -7,9% 12,4% reaching € 37.1m Total Retail 179,2 196,7 -8,9% Total Business 47,5 49,8 -4,5% • Cost savings across the Advertising 9,9 9,3 5,8% board PayTV Wholesale 13,5 11,9 13,7% Other 9,9 13,8 -28,8% • Other income 2,8 3,6 -23,0% Retail revenues pressure on 3play and paytv partly offset Telecommunications costs -76,8 -78,6 -2,2% by broadband market Royalties and licenses -65,3 -69,8 -6,5% Cost of sales of inventory and consumables -1,8 -1,8 -3,9% gains, advertising & Advertising and promotion costs -4,4 -5,1 -14,1% wholesale revenue growth. Payroll and related costs -31,5 -33,8 -6,8% Sundry expenses -45,0 -52,8 -14,7% minus Subsidies -0,9 -0,9 -2,6% EBITDA (incl. IFRS 16 effect) 37,1 42,3 -12,4% -54,7 -61,5 -11,1% Depreciation and amortisation plus Subsidies 0,9 0,9 -2,6% EBIT -16,7 -18,2 -8,4% Net financial expenses -14,6 -16,0 -9,1% EBT -31,2 -34,2 -8,7% Taxes 2,7 4,8 -43,6% Net Result -28,5 -29,4 -3,0% (10/31)

  11. OPEX Historical Evolution -26.1%  OPEX savings of € 78,5mn since FY 2015  More than 33% of the decline comes from content cost reduction (11/31)

  12. Agenda 1. General Information & Financial Highlights 2. Key Developments & Milestones 3. Shareholder Structure, Bank Debt & adjusted EBITDA 4. Appendix a) Financials & KPIs b) Business Overview c) Infrastructure (12/31)

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