altice fy 2016 results presentation - .68&&(66)8

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    March 9, 2017

    2016 Results

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    NOT AN OFFER TO SELL OR SOLICITATION OF AN OFFERTO PURCHASE SECURITIESThis presentation does not constitute or form part of, and should not be construed as,an offer or invitation to sell securities of Altice N.V. or any of its affiliates (collectivelythe Altice Group) or the solicitation of an offer to subscribe for or purchase securitiesof the Altice Group, and nothing contained herein shall form the basis of or be relied onin connection with any contract or commitment whatsoever. Any decision to purchaseany securities of the Altice Group should be made solely on the basis of the final termsand conditions of the securities and the information to be contained in the offeringmemorandum produced in connection with the offering of such securities. Prospectiveinvestors are required to make their own independent investigations and appraisals ofthe business and financial condition of the Altice Group and the nature of the securitiesbefore taking any investment decision with respect to securities of the Altice Group.Any such offering memorandum may contain information different from the informationcontained herein.

    FORWARD-LOOKING STATEMENTSCertain statements in this presentation constitute forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. These forward-lookingstatements include, but are not limited to, all statements other than statements ofhistorical facts contained in this presentation, including, without limitation, thoseregarding our intentions, beliefs or current expectations concerning, among otherthings: our future financial conditions and performance, results of operations andliquidity; our strategy, plans, objectives, prospects, growth, goals and targets; andfuture developments in the markets in which we participate or are seeking toparticipate. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms believe, could, estimate, expect,forecast, intend, may, plan, project or will or, in each case, their negative, orother variations or comparable terminology. Where, in any forward-looking statement,we express an expectation or belief as to future results or events, such expectation orbelief is expressed in good faith and believed to have a reasonable basis, but therecan be no assurance that the expectation or belief will result or be achieved oraccomplished. To the extent that statements in this press release are not recitations ofhistorical fact, such statements constitute forward-looking statements, which, bydefinition, involve risks and uncertainties that could cause actual results to differmaterially from those expressed or implied by such statements.

    FINANCIAL MEASURESThis presentation contains measures and ratios (the Non-IFRS Measures), includingEBITDA and Operating Free Cash Flow that are not required by, or presented inaccordance with, IFRS or any other generally accepted accounting standards. Wepresent Non-IFRS or any other generally accepted accounting standards. We presentNon-IFRS measures because we believe that they are of interest for the investors andsimilar measures are widely used by certain investors, securities analysts and otherinterested parties as supplemental measures of performance and liquidity. The Non-IFRS measures may not be comparable to similarly titled measures of othercompanies, have limitations as analytical tools and should not be considered inisolation or as a substitute for analysis of our, or any of our subsidiaries, operatingresults as reported under IFRS or other generally accepted accounting standards.Non-IFRS measures such as EBITDA are not measurements of our, or any of oursubsidiaries, performance or liquidity under IFRS or any other generally acceptedaccounting principles. In particular, you should not consider EBITDA as an alternativeto (a) operating profit or profit for the period (as determined in accordance with IFRS)as a measure of our, or any of our operating entities, operating performance, (b) cashflows from operating, investing and financing activities as a measure of our, or any ofour subsidiaries, ability to meet its cash needs or (c) any other measures ofperformance under IFRS or other generally accepted accounting standards. Inaddition, these measures may also be defined and calculated differently than thecorresponding or similar terms under the terms governing our existing debt.

    EBITDA and similar measures are used by different companies for differing purposesand are often calculated in ways that reflect the circumstances of those companies.You should exercise caution in comparing EBITDA as reported by us to EBITDA ofother companies. EBITDA as presented herein differs from the definition ofConsolidated Combined EBITDA for purposes of any the indebtedness of the AlticeGroup. The information presented as EBITDA is unaudited. In addition, thepresentation of these measures is not intended to and does not comply with thereporting requirements of the U.S. Securities and Exchange Commission (the SEC)and will not be subject to review by the SEC; compliance with its requirements wouldrequire us to make changes to the presentation of this information.

    DISCLAIMER

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    Group Highlights

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    2016 SUCCESSFUL YEAR OF EXECUTIONALL BUILDING BLOCKS IN PLACE FOR CONTINUED PROFITABLE GROWTH

    Successful integration of US businesses and transformation into leading transatlantic operator

    Validation of Altice Model: advanced turnaround in Europe, stronger US performance

    Clear strategy: best talent, best customer experience, best infrastructure, best content

    Completed internal reorganization to leverage scale, expertise and innovation

    All 2016 financial objectives achieved; rapid deleverage and extension of more than 21bn of debt

    Exploring possibility of IPO of a minority interest in Altice USA

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    Q4 2016 KEY TAKEAWAYSACCELERATING MOMENTUM ALL MAJOR MARKETS DRIVING GROWTH

    Altice Group: accelerating revenue growth +2.7% YoY1, expanding margins and cash conversion

    France: return to revenue growth, market leading investment in 4G+ / fiber networks and content

    Altice USA: acceleration in revenue growth and margin improvement, FTTH upgrade announced

    Portugal: positive top-line and accelerated nationwide FTTH rollout

    Robust, long-term capital structure with rapid de-leveraging and continued refinancing benefits

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    1 Reported revenue growth, 2.2% growth in constant currency

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    Revenue Growth (YoY)Group Adj. EBITDA

    Margin

    -3.3%

    +0.6%

    Q4-15 Q4-16

    ALL MAJOR MARKETS BACK TO GROWTHALTICE MODEL VALIDATED

    37.6%

    Q4-16

    33.3%

    Q4-15

    Note: Segments presented on a standalone reporting basis and in local currency. SFR shown including media assets for Q4-16 (i.e. including NextRadioTV and Altice Media Group France) and ex-media for Q4-15. SFR revenue grew 0.6% YoY ex-media assets in Q4-16; Optimum financials shown in this release refer to total company earnings from the business previously known as Cablevision Systems Corporation (e.g. including Lightpath), not just from the Cable segment, excluding Newsday Media Group (75% stake disposed on 7 July, 2016)

    (%)

    5.4x

    Q4-16

    5.9x1

    Q4-15

    Net Debt / L2QA Adj. EBITDA

    1 Pro forma for Cablevision (Optimum) acquisition

    Group Leverage+1.2%

    +5.1%

    -8.7%

    +0.5%

    -2.7%

    +4.1%

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    37.6%

    15.9%

    +4.2 pp

    +15.1%

    POSITIVE MARGIN EVOLUTION BY MAIN MARKETSDRIVING MARGINS HIGHER ACROSS THE GROUP

    Note: Segments presented on a standalone reporting basis. SFR Adj. EBITDA and OpFCF shown including media assets on a pro forma basis (i.e. including NextRadioTV and Altice Media Group France)1 Adj. EBITDA growth rate shown in constant currency for Altice USA and Altice Group2 Financials excluding Newsday

    Q4-16Adj. EBITDAMargin

    Q4-16OpFCFMargin

    YoY Q4-16 Adj. EBITDA margin

    Q4-16Adj. EBITDAGrowthYoY1

    33.0%

    6.2%

    +3.4 pp

    +12.1%

    45.6%

    23.8%

    +3.1 pp

    +7.8%

    40.7%

    26.7%

    +8.3 pp

    +32.0%

    Continuous optimization and investments to drive further growth Peak capex in France for accelerated network investments

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    Balanced Footprint

    44%

    14%

    7%

    34%

    LEADING TRANSATLANTIC CONVERGED COMMUNICATIONS GROUPPOWERFUL VALUE CREATION POTENTIAL

    Full Year 2016 Operating FCF Contribution1

    Rest of the World2

    1 Based on pro forma consolidated Operating FCF (defined as Adj. EBITDA less Capex) contribution, excluding group corporate segment (-88.1m), 44.0m of capitalised exclusive content costs in Portugal for multi-year contracts and 413.8m of capex related to the acquisition of multi-year major sport rights2 Rest of the World includes contribution French Overseas Territories (FOT) and is pro forma for the sale of Altices Belgium and Luxembourg businesses3 Fixed B2C and B2B revenue contribution to total B2C and B2B segments

    (47% of revenue)

    (35% of revenue)

    (10% of revenue)(8% of revenue)

    c.70% fixed / cable revenue3

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    LEADING GLOBAL COMMITMENT TO FIBERSIGNIFICANT AND RAPID FIBER DEPLOYMENTS ACROSS ALTICE GROUP

    1 Q3-15 for Suddenlink and Q1-16 for Optimum2 Up to 350 Mbps for B2B (commercial) customers, 300 Mbps for B2C (residential) customers

    Altice Labs: Global R&D Center

    Pioneering fiber GPON technology including state-of-the-art CPE and 5G

    Pre-Altice2006

    Q4-162022 FTTB/FTTH

    target

    9.3m 22m0

    Fiber (FTTB / FTTH

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