United Group BO Q1 2019 financial results presentation 29 May 2019 - PowerPoint PPT Presentation

United Group BO Q1 2019 financial results presentation 29 May 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 three months ended March 31, 2019. The statement of financial position for Adria Midco B.V. and its subsidiaries as at 31 March 2019 and as at 31 March 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 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. 2

Agenda Introduction Operational review Financial review Appendices 3

Introduction to United Group South-East Europe’s leading multi-play telecommunications and United Group B.V. Senior Notes *  media provider Issuer United Group B.V. Listed International Stock Exchange (Guernsey) 3.8 million cable and satellite TV, broadband, fixed-line and mobile  RGUs across the six countries of former Yugoslavia Governing Law State of New York 2022 Fixed Rate Notes Operating in a market characterized by growing pay-TV and  broadband that is currently underpenetrated relative to other CEE €575 million Outstanding notes and Western European markets Coupon 4.375% Maturity 01-Jul-22 Broad reach via cable and direct-to-home platforms across the  region, and ethnically targeted over-the-top content platforms Coupon dates 15 January & 15 July internationally 2024 Fixed Rate Notes  Reputation for providing the most attractive content in our €325 million Outstanding notes respective markets, available across all devices and formats Coupon 4.875% Maturity 01-Jul-24 Group strategy leverages established proven strengths  Coupon dates 15 January & 15 July – extensive network, Floating Rate Notes – differentiated content offerings, and €550 million Outstanding notes – loyal customer base Three-month EURIBOR (subject to a zero floor) Coupon to further strengthen market leadership in the region and to plus 4.125% target the region’s expat community with best in class local Maturity 15-May-25 content delivered through the internet February 15, May 15, August 15 Coupon dates and November 15  Owned by funds affiliated with BC Partners, KKR and the *On May 17, 2019, United Group B.V. issued €550 million in aggregate principal amount management of Floating Rate Senior Secured Notes due 2025 (the “Floating Rate Notes”). The proceeds of the Floating Rate Notes were used (i ) to redeem in full United Group B.V.’s existing €450 million in aggregate principal amount of floating rate senior secured notes due 2023, plus accrued and unpaid interest, (ii) to repay a portion of the borrowings under United Group B.V.’s Existing Revolving Credit Facility, and (iii) to pay transaction costs associated with the foregoing. 4

Agenda Introduction Operational review Financial review Appendices 5

Network expansion Homes passed across key markets Key developments SBB Serbia  Homes passed up 1% driven by organic network expansion Telemach Slovenia  Additional 3k homes passed due to organic growth Telemach BH  Increase of 2% due to organic network expansion Telemach MNE  Increase of 17% driven by organic network expansion 6

Increasing subscribers and RGUs Key developments RGUs vs. Unique cable subscribers  Increasing cable subscribers as a Our 1,167k unique cable subscribers order on average between 2.1x result of organic network growth and 2.7x different services Faster growth in RGUs per unique  cable subscriber driving overall performance SBB Serbia, Telemach BH & Telemach MNE  Cross-selling of multi-play packages to 1-Play subscribers in all three entities RGU per subscriber growth in Serbia  and Bosnia to 2.2x, and in Montenegro to 2.1x Telemach Slovenia Cross-selling of 3-Play packages to 1-  Play subscribers – Mobile offering supporting take up RGUs vs. Unique cable subscribers Q1 2018* Q1 2019 of multi-play packages SBB Serbia 2.1x 2.2x  Upgrading existing customers to Telemach Slovenia 2.6x 2.7x premium products Telemach BH 2.1x 2.2x Telemach MNE 2.0x 2.1x * 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 Key developments RGUs by service  Healthy YoY RGU growth across nearly all services Cable pay TV growth due to organic growth   Broadband internet RGUs increased by 5% as a result of higher number of multi-play subscribers  DTH pay-TV RGUs decreased by 2% YoY OTT subscribers decreased by 3% YoY   Fixed line telephony RGUs up 14% YoY due to continued growth of this service  Mobile services up 11% due to high organic growth at Telemach Slovenia Other service RGUs increased by 32% as a  result of 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