United Group BO H1 2019 financial results presentation 27 August - PowerPoint PPT Presentation

United Group BO H1 2019 financial results presentation 27 August 2019

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 six months ended June 30, 2019. The statement of financial position for Adria Midco B.V. and its subsidiaries as at 30 June 2019 and as at 30 June 2018, 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 six 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. 2

Agenda Introduction Operational review Financial review Mergers & Acquisitions Appendices 3

Introduction to United Group South-East Europe’s leading multi-play United Group B.V. Senior Notes § telecommunications and media provider Issuer United Group B.V. 3.8 million cable and satellite TV, broadband, fixed-line § Listed International Stock Exchange (Guernsey) and mobile RGUs across the six countries of former Governing Law State of New York Yugoslavia 2022 Fixed Rate Notes Operating in a market characterized by continued § growth in pay-TV and broadband and remains Outstanding notes €575 million underpenetrated relative to other CEE and Western Coupon 4.375% European markets Maturity 01-Jul-22 Broad reach via cable and direct-to-home platforms § across the region, and ethnically targeted over-the-top Coupon dates 15 January & 15 July content platforms internationally 2024 Fixed Rate Notes * Reputation for providing the most attractive content in § Outstanding notes €325 million our respective markets, available across all devices and formats Coupon 4.875% Maturity 01-Jul-24 Strategy leverages the Group’s established and proven § strengths Coupon dates 15 January & 15 July extensive network, – Floating Rate Notes differentiated content offerings, and – Outstanding notes €550 million loyal customer base – Three-month EURIBOR (subject to a zero floor) Coupon to reinforce market leadership in the region and to plus 4.125% target the region’s expat community with best in class Maturity 15-May-25 local content delivered through the internet 15 February, 15 May, 15 August Coupon dates Owned by funds affiliated with BC Partners, KKR, EBRD and 15 November § and management * On 04 July 2019 the Group issued an additional €200 million in aggregate 4 principal amount of Senior Secured Fixed Rate Notes due 2024 to finance the acquisition of Tele2 Croatia.

Agenda Introduction Operational review Financial review Mergers & Acquisitions Appendices 5

Network expansion Homes passed across key markets Key developments Homes passed (k) SBB Serbia 1,075 1,067 § Homes passed up 1% driven by organic network expansion +1% Telemach Slovenia § Homes passed remained stable Telemach BH § Increase of 1% due to organic network expansion Telemach MNE § Increase of 10% driven by organic network expansion 335 330 334 334 +1% 0% +10% 86 77 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 SBB Serbia Telemach Slovenia Telemach BH Telemach MNE 6

Increasing subscribers and RGUs RGUs vs. Unique cable subscribers Key developments Rising number of cable subscribers as § Our 1,166k unique cable subscribers order on average between 2.2x a result of organic network growth and 2.7x different services Faster growth in RGUs per unique § cable subscriber driving overall Unique cable subs (k) RGUs (k) performance 3,844 1,166 1,147 +2% SBB Serbia, Telemach BH & +5% Telemach MNE Cross-selling of multi-play packages to § 3,671 1-Play subscribers in all three entities RGU per subscriber in Serbia and § Montenegro up to 2.2x, while in Bosnia remained stable at 2.2x H1 2018* H1 2019 H1 2018* H1 2019 Telemach Slovenia Cross-selling of 3-Play packages to 1- § Play subscribers Mobile offering supporting take up – of multi-play packages RGUs vs. Unique cable subscribers H1 2018* H1 2019 SBB Serbia 2.1x 2.2x Existing customers upgrading to § Telemach Slovenia 2.6x 2.7x premium products Telemach BH 2.2x 2.2x Telemach MNE 2.0x 2.2x * 2018 restated – OTT users on our network reclassified to Cable and Cable services users on other networks reclassified to Other Services from Cable. 7

Increasing RGUs RGUs by service Key developments Healthy YoY RGU growth across nearly all n services Cable pay TV growth due to organic growth n Broadband internet RGUs increased by 5% n YoY as a result of multi-play subscriber growth Fixed line telephony RGUs up 11% YoY due to n an increase in multi-play subscriptions and continued growth of this service Mobile services up 10% YoY due to high n organic growth at Telemach Slovenia DTH pay-TV RGUs decreased by 4% YoY n OTT subscribers decreased by 4% YoY n Other service RGUs increased by 36% YoY n owing to organic growth * 2018 restated – OTT users on our network reclassified to Cable and Cable services users on other networks reclassified to Other Services from Cable. 8