Corporate Presentation. Sep 2014

Transcription

1 (1/32) Corporate Presentation Sep 214

2 (2/32) Highlights Strong 3Play growth in Greece 3Play products are offered by Forthnet and OTE Company revenue turnaround based on 3Play Strongly positioned in Greek Telco and PayTV sector Increasing market share Continued productivity and cost optimization Emphasis on refinancing of existing debt

3 , Subs (3/32) HH penetration 3Play growth in Greece ,1% 13,4% 51,% 7,2% 5,6% 5,3% 4,4% 53,8% 2,% 54,% 6,5% 4,7% 39,3% 24,3% 24,3% 35,6% Q2 OTE Forthnet Other Total 3Play HH penetration 18% 16% 14% 12% 1% 8% 6% 4% 2% % Forthnet and OTE are growing fast their 3Play customer base

4 , Subs (4/32), Subs Impact of 3Play Pay TV subs per service Q2 Standalone Pay TV 3Play Total Pay TV BB subs per service Q2 Standalone Broadband 3Play Total Broadband 3Play drives growth in Pay TV and Broadband markets

5 (5/32) EU trends The share of 3Play bundles has increased by two percentage points since December 211, and 1pp since autumn 27 Source: E-COMMUNICATIONS HOUSEHOLD SURVEY, Special Eurobarometer 414, European Commisionm Mar 214 Double play has peaked and is actually decreasing 3Play is growing fast and is the most important driver in PayTV and Telco market Quad play is still at a very early stage

6 Market value ( M) (6/32) Forthnet revenue ( M) Domestic market environment Market Revenue Evolution Forthnet value share δ % Market revenue declined δ %* -5.6%* ,% 9,% 8,% 7,% 6,% 5,% 4,% 5,2% 4,7% 6,4% 7,6% 8,% 7,1% 8,7% +4.pp % Forthnet outperformed 1 3,% 2,% 1,% *,% Total market revenue Forthnet revenue * 214 based on actual trends of H1 214 In a challenging macroeconomic and competitive environment Forthnet managed to outperform thanks to 3Play

7 (7/32) Company Key figures Q2 214 #1 in 3Play #1 in PayTV #2 in Broadband #1 in LLU 1.15m 86k 344k 97m 132 2k 5.8k Broadband and Pay TV subscriptions unique households (~2% of total Greek Households) households with 3Play services Q2 214 revenues Shops all over Greece SMEs and Corporate accounts km of fibre optic network

8 (8/32) Nova 3Play proposition Higher ARPU Higher Contribution Profit Lower Churn than 2play products Addresses the needs of Greek Households for quality entertainment and communication at an affordable price

9 Thousands (9/32) Nova 3Play add-ons Nova 3Play can be combined with Add-ons Unlimited Mobiles Price 5 Price 15 Price 19,9 VDSL Price 1 Price 1 Price Mobile addons growth Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 VAS Add-ons are customizable to each Household needs Offer significant margin uplift

10 (1/32) Content / Premium Sports, Movies and Series exclusive Greek Football Superleague Premium Sports All games of the Greek Soccer League exclusively on NOVA until 217 Premium Movies and Series Output deals with major Hollywood studios UEFA Champions League & UEFA Europa League Other Top Events Both major European soccer events exclusively until 215 Increased games share from 212 Euroleague until 217. The most acclaimed Basketball organization with the participation of Greek teams Βasket League and Volley League until 216 OSFP and PAO friendly games Wimbledon, ATP 25 Major Gulf tournaments, Powerboat, extreme sports All major blockbusters and Oscar. Awarded movies of the year, premier exclusively on Νovacinema1 HD! Top pay TV drama series worldwide very close to Us premier!

11 (11/32) Content / Multichannel Offering and Thematic channels Multichannel offering Thematic channels Nova operates the most comprehensive and the first multi-channel television service in Greece with: Series / Entertainment NOVAlife exclusive E! Entertainment FOX FOXlife 25+ channels 14 Sport channels 6 Premium movies channels 13 High Definition channels First 3D channel in Greece Total of 36.+ hours of linear program per year On demand premier movies Hundreds hours of live shows Sports Docs NOVASPORTS 24 HD exclusive Motors TV exclusive Action 24 exclusive Discovery Channel National Geographic Animal Planet History Eurosport Eurosport 2 Eurosport HD Travel Channel Nat Geo Wild / Nat Geo Wild HD Discovery HD Showcase National Geographic HD Kids Boomerang exclusive Disney XD Disney Channel Nickelodeon Music Nova Mad Greekζ exclusive Mezzo exclusive MTV VH1 Nova Mad Music Channels (3) Adult Playboy exclusive Brazzers TV exclusive Hustler HD Dorcel exclusive Plus Greek commercial & International Free To air stations

12 Thousands (12/32) Thousands Added value services Novago evolution HD subs take up Live TV at any device / anywhere / anytime Q3 13 Q4 13 Q1 14 Q Exclusive 3D content Nova on demand Nova Multiview

13 Infrastructure / Pay TV network HotBird Satellite Coverage DTH 1% national coverage Company currently leases 4 HotBird transponders from Eutelsat Content Production HD broadcast infrastructure HD production studios, editing, graphics and recording facilities HD multi-channel play-out, monitoring and continuing rooms HD live coverage of sports events Latest generation tapeless technology OTT facilities to Mobile platforms VOD platform Uplink Facility Transmissi on Facilities 4 digital Multiplexers with uplinks to HotBird Satellite DTH distribution to Greece and Cyprus Optimized picture quality with latest MPEG, statistical multiplex technology IP and MPEG-4 infrastructure Irdeto conditional access 24/7 monitoring and network management (13/32)

14 (14/32) Infrastructure / Telco network Telecom backhaul and international connectivity C.5,82km fibre optic MAN, and WAN infrastructure 495 physical and remote collocations to OTE s local exchanges for providing LLU services, covering Athens, Thessaloniki and the majority of other cities & villages throughout the Greek territory 94% of active customers are served from private network 83% LLU coverage of total active local loops 1% population coverage through SAT BB ~1% of active loops can be served with own VDSL infrastructure 12G international connectivity. Direct IP peering at Amsterdam, Frankfurt & Sofia exchanges & (AMS- IX, DE-CIX, BIX) Proprietary network allows high-speed broadband and telephony as well as further services in the future

15 (15/32) Customer Service 1% Nationwide Coverage Supported services (Broadband Pay TV Satellite Internet Swap point) Technical Assistance Network No of Points No of technicians EXCLUSIVE SWAP 127 Unified Call Centre 5 full-time employees equivalent Forthnet Call Centre

16 (16/32) Distribution channels Company promotes its services through more than 9 points of presence nationwide 132 shops covering Athens, Thessaloniki and all major cities (6 in total) selling all product & services of Forthnet in combination with other technology products and entertainment tickets. bill payments 35.+ visitors per month 6 retail chain stores, including the large and well known retailers (plaisio, kotsovolos, mediamarkt, ilektroniki etc) 55 resellers throughout Greece, includes more than 25 authorized partners / nova technicians External call centers

17 (17/32) Wide range product portfolio Retail products 3play 2play Telephony TV Internet, Telephony and TV, 29.9 / Month Nova 3play Nova 3play plus add-ons New services! Forthnet 2play unlimited unlimited Fixed + mobile unlimited Fixed unlimited On net Telephony Forthnet Telephony unlimited unlimited Fixed + mobile unlimited Fixed unlimited On net TV FULL pack Sports pack Cinema pack Start pack SMEs & Corporate products Professional services for SMEs Corporate services Advertising Advertising Advertising on Advertising on Pay TV platform Pay TV platform Internet & Telephony Forthnet Professional TV Public & Private view Bundle services Cloud services Forthnet domain name, s, web hosting, SasS hosting, SSL Data services MPLS VPN, ILL, Forthnet Leased Lines Datacenter services Collocation, Dedicated, Streaming Fixed Telephony Forthnet my link Intelligence Networks Forthnet 8 & Forthnet 81

18 (18/32) KPIs and financial performance

19 (19/32) Nova 3Play improves KPIs On-line prices of basic entry packages Monthly Churn rate - June Forthnet 2,5% 2,% 1,78% >2,% 25 δ ~1 1,5% ,%,98% Competition,5% 15 H1 213 H2 213 H1 214,% Nova 3Play churn Forthnet 2Play churn LLU competitors churn Nova 3Play has higher ARPUs, higher Contribution profit and lower churn

20 (2/32) Thousands Nova 3Play improves KPIs 4% 35% 3% LLU market share per operator, H1 212 H ,4% 28,6% 29,7% 31,3% +4.1pp H1 12 H ,5% 6 5 LLU net adds per operator, H1 213 H % net adds market share H1 13 H % 4 2% 3 15% 1% 2 5% 1 % H1 212 H2 212 H1 213 H2 213 H1 214 H1 213 H2 213 H1 214 Wind HOL Cyta Forthnet Wind HOL Cyta Forthnet leads to more net adds and increased market share

21 , Subs (21/32) 3Play customer base evolution Nova 3Play HH evolution 35,7% 2,3% 17,1% 13,1% 3,6% 42,7% 45% 4% 35% 3% 25% 2% 15% 1% 5% 9% 8% 7% 6% 5% 4% 3% 2% 1% Nova 3Play as % of Total Greek HH 8,1% 6,7% 3,8% 3,2% 2,4%,6% Q2 % % Q2 Nova 3Play Households Forthnet's Households with Nova 3Play Services (%) Strong Nova 3Play demand continues in Q2 214 increasing Telecom and Pay TV customer base

22 , (22/32) Growing customer base 1.2 Forthnet Unique subs in Greece All time high in Pay TV subs (482K) Q2 Standalone Broadband subs 3Play subs Standalone Pay TV subs Total Households Total subscriptions in Greece 1.15M total subscriptions at the end of Q2 214 an all time high

23 ( in millions) Revenue trends in retail segment Retail revenue change y-o-y 9 2,7% 3% ,6 73,1 73,3 76, 76,,5% 75,1 -,4% 1% -1% ,9% -7,3% -3,6% FTR effect.6m in quarter FTR effect 1.1M in quarter -3% -5% -7% -9% Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q % Revenue Total retail * FTR = Fixed Termination Rate. Phase A 1/214 and Phase B 6/214 Total Retail revenue change y-o-y Q2 214 showing increased revenue for second consecutive quarter, despite the FTR impact. (23/32)

24 Preserving ARPUs FTR effect excluded ,% -1,7% -3,4% -2,4% -2,3% % -2% -4% ,3% -7,4% -6% -8% ,6% -11,6% -1% 22-12% 2 Q2 212 Q3 212 Q4 212 Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q % Blended ARPU * FTR = Fixed Termination Rate. Phase A 1/214 and Phase B 6/214 ARPU change y-o-y Nova 3Play preserves the Total Retail blended ARPU (24/32)

25 ( in millions) Returning to Revenue Growth Total revenue change y-o-y 12 4,2% 5% 1 97,5 93,6 94,3 97, 96,8 97,5 3% 8 -,7% 1% 6 4-5,7% -4,4% FTR effect.6m in quarter FTR effect 1.1M in quarter -1% -3% -5% 2-7,4% -7,7% -7% Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q % Total Revenue * FTR = Fixed Termination Rate. Phase A 1/214 and Phase B 6/214 Total revenue change y-o-y First quarterly Total Revenue increase since Q1 212, that is after 9 quarters, despite the FTR impact (25/32)

26 ( in millions) ( in millions) (26/32) Revenue preservation & diversification Total Revenue Revenue analysis of main categories ,6 97, ,1 73, ,3 1,6 4,8 3,2 3,9 2,8 Q2 213 Q2 214 Telco & Pay TV Retail Telco Corporate Pay TV Business Advertising Q2 213 Q2 214 Revenue for Q2 214 was higher against Q Company s successful revenue diversification strategy continues.

27 ( in millions) ( in millions) (27/32) ( in millions) Cost optimization Telco costs / BB subscriptions Royalties costs / Pay TV subscriptions Personnel costs / Total Households ,1 12,8 12, ,9 21, , , 4,4 4, Q2 212 Q2 213 Q2 214 Q2 212 Q2 213 Q2 214 Q2 212 Q2 213 Q2 214 Telecommunication cost Telco cost / BB subscriptions Royalties cost Royalties cost / Pay TV subscriptions Personnel cost Personnel cost / Total Households The company is continuously optimizing its cost structure and is taking advantage of significant operating leverage

28 ( in millions) (28/32) Operational profitability Adjusted* EBITDA change y-o-y 25 22,5 2% ,7 17,6 17,9-14,9% 16,3-27,8% 15,8 14,6-16,8% 16, 16,3-1,8%,3% 1% % -1% -2% -3% Q2 212 Q3 212 Q4 212 Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q % Adjusted EBITDA Adjusted EBITDA change y-o-y * One-off and Non cash adjustments Nova 3Play improves EBITDA

29 ( in millions) ( in millions) (29/32) Operational profitability Reported EBITDA Adjusted EBITDA* , ,3 16,3 2% 18% , ,4% 16,7% 16% 14% 12% 1% 8% 6% 4% 2 2 2% Q2 213 Q2 214 * One-off and Non cash adjustments % Q2 213 Q2 214 Adjusted EBITDA* Adjusted EBITDA margin In Q2 214 adjusted EBITDA increased by +.3%

30 (3/32) Market Data and Capitalization Market Data Greek Population 11 (in M) Greek Households 4.2 (in M) Forthnet Household Penetration 2% Greek Broadband Penetration 27.5% Forthnet Fixed Market Share 14% OTE Fixed Market Share 58% Greek Pay TV Penetration 2% Forthnet Pay TV Market Share 57% OTE Pay TV Market Share 35% Capital structure 6m 214 Cash Bank Loans (1) 325. Credit lines 1.4 Net Debt 31.2 (2) Equity Capitalization Total Enterprise Value (3) ( in millions) Transponder Lease Liability 75. Transponder yearly cost 14.4 Net Leverage(4) 6.1x (5) Adjusted Net Leverage 6.4x Major Shareholders: Emirates International Telecommunication 44.2% Wind Hellas 19.75% Vodafone 19.75% Public 16.48% Source: Company Filings (1)The current rate of the bank debt is Euribor plus 3.66%. (2)11,97,185 shares at closing price of 1.41 on 31/8/214. (3)Transponder lease payment is 14.4 million in 214. (4)Net Leverage as of June 3, 214 is defined as total debt of million plus estimated transponder leases of 75. million less cash of 16.2 million divided by adjusted LTM EBITDA of (5)Adjusted net leverage is defined as net leverage (excluding transponder leases) of 31.2 million divided by EBITDA after annual transponder cost of 14.4 million. (6)Pro Forma for an option to acquire 13.25% ownership from Wind Hellas which expires on June 4, 215. (6)

31 (31/32) Financial Summary ( in millions) LTM 6/14 Total Revenue Pay TV Revenue Telco Revenue Revenue Analysis: Telco Retail Telco Business Pay TV Retail Pay TV Business Other Total Revenue EBITDA Adjusted EBITDA Capex spent Unique Households (') Total Subscriptions (') Source: Company Filings

32 (32/32) Thank You IMPORTANT NOTE This document may contain forward looking statements, which are based on estimates and assumptions pertaining to expected developments and other factors that affect the Company, These forward looking statements do not constitute neither historical events, nor warranty for future performance of the Company, These forward looking statements contain risks and uncertainties due to the existence of factors that may lead to considerable deviation of the Company s future results from these estimates, Forward looking statements speak only as of the date of this document, and we undertake no obligation to publicly update or revise any forward looking statements in this document to reflect any change in expectations or any change in events, conditions or circumstances on which these forward looking statements are based.