Q1 2020 Financial Results Presentation 28 May 2020 Strictly - PowerPoint PPT Presentation

Q1 2020 Financial Results Presentation 28 May 2020 Strictly Confidential

Disclosure regarding forward-looking statements and the presentation of certain financial information This presentation contains forward-looking statements, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words “targets”, “believes”, “expects”, “aims”, “intends”, “may”, “anticipates”, “estimates”, “would”, “will”, “could”, “should” or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond our control that could cause our actual performance or achievements to be materially different from future performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding our present and future strategies and the environment in which we will operate in the future. These forward-looking statements speak only as at the date of this Presentation. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any of such statements are based. This Presentation contains summary unaudited condensed financial information for Adria Midco B.V. and its subsidiaries for the three months ended March 31, 2020. The statement of financial position for Adria Midco B.V. and its subsidiaries as at 31 March 2020 and as at 31 March 2019, as well as the condensed consolidated interim statements of profit or loss and cash flows for Adria Midco B.V. and its subsidiaries for the three months periods then ended have been prepared in accordance with IFRS, but have not been reviewed by our independent auditors. As a consequence, the summary condensed financial information presented is subject to potential change. If in connection with any review there is any material change to such summary condensed financial information, we intend to present a supplemental report detailing such change. Certain financial measures and ratios related thereto in this Presentation, including EBITDA, Adjusted EBITDA, Adjusted EBITDA minus capital expenditure, RGUs and ARPU (collectively, the ‘‘Non -IFRS Measures’’) are not specifically defined under IFRS or any other generally accepted accounting principles. These measures are presented here because we believe that they and similar measures are widely used in our industry as a means of evaluating a company’s operating performance and financing structure. Our management believes this information, along with comparable IFRS measures, is useful to investors because it provides a basis for measuring the operating performance in the periods presented. These measures are used in the internal management of our business, along with the most directly comparable IFRS financial measures, in evaluating the operating performance. These measures may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, and you should not consider such items as alternatives to net income (loss), operating income or any other performance measures derived in accordance with IFRS, and they may be different from similarly titled measures used by other companies. Adria Midco B.V. is providing this information voluntarily, and the material contained in this announcement is presented solely for information purposes and is not to be construed as providing investment advice. As such, it has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. None of Adria Midco B.V., or any of its directors, officers, employees, affiliates, direct or indirect shareholders, advisors or agents, accepts any liability for any direct, indirect, consequential or other loss or damage suffered by any person as a result of relying on all or any part of this information, and any liability is expressly disclaimed. 2

Agenda Introduction 01 Operational review 02 Financial review 03 Mergers & Acquisitions 04 Appendices 05 3

United Group: Proven cable growth & sustainable leadership through media Revenue* by category (LTM Q1 2020)  The leading multi-play communications and media provider in South-East Europe  LTM Q1 2020 Revenues: € 756m Other revenues  7% LTM Q1 2020 Adjusted EBITDA: € 301m Cable Pay-TV  United Group is a well-diversified business with leading 23% market positions in Serbia, Croatia, Slovenia, Bosnia Media Herzegovina, Montenegro and, with the signing of the 24% Vivacom acquisition, Bulgaria  5m households watching United Group channels  Over 1.86m homes using broadband and telecoms services, attracted by superior service and range 18% 4% of offering OTT Broadband Internet  Operating in a market characterized by continued 12% 4% growth in Pay-TV and broadband, that remains 8% Mobile service underpenetrated relative to other CEE and Western Telephony Fixed-line DTH Pay-TV European markets  Reputation for providing the most attractive content in our respective markets, available across all devices and formats  Led by a dynamic and entrepreneurial founder with an experienced home-grown management team  A significant private employer in the region * External revenue (not including Inter-segment revenue)  Large and growing integrated media business well-positioned across the media value chain  Regional platform delivers strategic scale for monetisation of content investments 4

United Group: an outstanding track record of growth Revenue € 1,479m  Compound annual growth rates from 2015- CAGR 2019 +18%  € 788m Revenue: 18% € 756m € 742m € 636m  Adjusted EBITDA: 16% € 518m € 459m € 377m  Completed more than 100 successful acquisitions since 2000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 LTM Q1 L2QA* PF 2020 Q1 2020 L2QA**  Owned by funds affiliated with BC Partners Adjusted EBITDA Q1 2020 and KKR, EBRD and by management  Biggest PE / FDI investment in South Eastern € 547m Europe CAGR +16%  First regional company to raise foreign debt € 301m € 305m € 295m € 261m € 223m € 190m € 161m  First to attract investment from EBRD FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 LTM Q1 L2QA* PF 2020 Q1 2020 L2QA** Q1 2020 Outstanding track record of growth resulting from organic growth and acquisitions * As reported L2QA performance of United Group. 5 ** Pro Forma L2QA Adjusted EBITDA includes adjustment for Tele2 acquisition contribution before closing (Oct19-Feb20), United Media 2018 acquisitions synergies and PF adjustment for Vivacom acquisition.

United Group ‘s integrated business model is a key differentiator Pan regional platform Cable & Mobile Leading integrated media #1 multi-play operator platform Croatia  Large, well-invested network  15,600km of fiber optic cable  Fully upgraded to EuroDOCSIS 3.0  Market leading broadband speeds Virtuous  First in the region with OTT (2103) and 4G circle of (2015)  Major local producer of quality content  World first EONTV / Google partnership growth across genres:  Differentiated by excellence in customer  Supports growth, increased choice service reflected in: and innovation  Consistently high customer  Provides predictable carriage fees satisfaction scores  Independent news – CNN / N1 partnership  Low customer churn of  Distribution partner of choice for premium approximately 10% per annum 3rd party content such as world class sports Differentiation 6

Agenda Introduction 01 Operational review 02 Financial review 03 Mergers & Acquisitions 04 Appendices 05 7

High growth of mobile RGUs mainly as a result of Tele2 acquisition RGUs +28% CAGR 4.90m +8% 3.92m 3.82m 3.79m 3.61m 3.15m 2.85m 2015 2016 2017 2018* 2019 Q1 2019 Q1 2020 RGUs by service +187% 1.50m 0% +5% +7% 1.17m 1.17m Tele2 0.87m 0.83m 0.94m -1% 0.70m 0.66m +20% +5% 0.52m 0.46m 0.45m 0.13m 0.12m TM SLO 0.08m 0.07m 0.56m Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 Broadband Fixed-line Mobile DTH pay-TV Other services Cable Pay-TV OTT internet telephony services Successful track record of up-selling and cross-selling multi-play packages 8

Steady ARPU growth at Group level for consecutive years Group Blended cable ARPU +4% CAGR +6% € 23.5 € 22.8 € 22.5 € 22.0 € 20.6 € 19.4 € 18.3 2015 2016 2017 2018* 2019 Q1 2019 Q1 2020 Blended cable ARPU by subgroup 0% +10% € 36.5 € 36.5 +5% +6% € 22.4 € 20.4 € 20.4 € 19.5 € 19.0 € 18.0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Telemach MNE SBB Serbia Telemach Slovenia Telemach BH ARPU growth through up-selling, cross-selling and price increases 9

Agenda Introduction 01 Operational review 02 Financial review 03 Mergers & Acquisitions 04 Appendices 05 10