FY 2020 Financial Results Presentation April 27, 2021
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 audited condensed financial information for Adria Midco B.V. and its subsidiaries for the twelve months ended December 31, 2020. The statement of financial position for Adria Midco B.V. and its subsidiaries as at 31 December 2020 and as at 31 December 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 twelve months periods then ended have been audited by our independent auditors in accordance with IFRS.
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
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
3 United Group: Proven cable growth and sustained leadership through media The leading multi-play communications and media provider Revenue** by category (FY 2020) in South-East Europe . FY 2020 Revenues: €1,161m . FY 2020 Adjusted EBITDA: €434m United Group is a well-diversified business with leading market positions in Serbia, Croatia, Slovenia, Bosnia and Other revenues Cable Pay-TV Herzegovina, Montenegro, Bulgaria (following the closing of Sale of end user equipment 3% the Vivacom acquisition) and Greece (following the closing 10% 16% of the Forthnet acquisition) . 5.5m households watching United Group channels Media 14% . Over 3.69m homes using broadband and telecoms 14% Broadband Internet services, attracted by superior service and range of offering United Group operates in a market characterized by 4% continued growth in Pay-TV and broadband that remains Telephony Fixed-line underpenetrated relative to other CEE and Western 7% 27% European markets 4% DTH Pay-TV The Group is expanding its mobile market through organic Mobile service OTT and Out-of Footprint services and inorganic growth (Telemach Croatia and Vivacom acquisitions) United Group has the reputation for providing the most attractive content in its respective markets, available across all devices and formats ** External revenue (not including Inter-segment revenue) Led by a dynamic and entrepreneurial founder with an experienced home-grown management team 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: a strong track record of growth
Revenue €1,934m
€1,493m Compound annual growth rates from 2015- CAGR €1,161m 2020 +25% . Revenue: 25% €742m €636m . Adjusted EBITDA: 22% €518m €377m €459m Completed more than 100 successful acquisitions since 2000 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 L2QA* PF FY 2020 L2QA** Owned by funds affiliated with BC Partners, Adjusted EBITDA FY 2020 EBRD and by management
Biggest PE / FDI investment in South Eastern Europe €704m CAGR €542m First regional company to raise foreign debt +22% €434m €295m €223m €261m First to attract investment from the EBRD €161m €190m
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 L2QA* PF FY 2020 L2QA** FY 2020 Outstanding track record of growth resulting from organic development and acquisitions
* As reported L2QA performance of United Group.
** Pro Forma L2QA Adjusted EBITDA and Revenues includes adjustment for Vivacom acquisition contribution before closing (Jul20) and adjustment for Forthnet acquisition contribution (Jul20-Oct20), 5 L2QA contribution for Nova BG acquisition and other L2QA M&A companies contributions, while Pro Forma L2QA Adjusted EBITDA also includes United Media 2018 acquisitions synergies. United Group’s integrated business model is a key differentiator
Pan regional platform Cable and Mobile Leading integrated media #1 multi-play operator platform
Large, well-invested network . 41,000km of fiber optic cable . Fully upgraded to EuroDOCSIS 3.0, 88% DOCSIS 3.1 ready (50% of the footprint) . GPON on 21% of the footprint and growing fast . XGS 10/10 Gbps speed FTTH access network to be introduced throughout the Group in 2021 Virtuous Major local producer of quality content across genres in SEE: . Market leading broadband speeds (~70% of circle of network gigabit-capable) . Supports growth, increased choice and innovation . Provides predictable carriage fees First in the region to offer OTT (2013) growth World first internally developed content management and Independent news – CNN / N1 partnership and Newsmax TV affiliation distribution system EON TV, in partnership with Google Differentiated by excellence in customer service reflected in: Regional distribution partner of choice for premium third party content such as world class sports . Consistently high customer satisfaction scores . Low customer churn of approximately 9-10% per Regional distribution partner of choice for premium movies by from Hollywood studios WARNER, SONY, MGM annum Differentiation
6 Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
7 Significant growth in total RGUs driven by acquisitions (Vivacom, Forthnet and Telemach CRO)
RGUs CAGR +178% +31% 10.90m
3.92m 3.61m 3.79m 3.15m 2.85m
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
RGUs by service +715%
4.48m +26% TM SLO 0.59m +62% TM CRO +83% 0.94 1.48m +124% +1,390% 1.17m 1.39m 1.27m 0.86m Vivacom +4% 0.69m 2.95m 1.00m 1.15m 0.55m 0.45m 0.12m 0.13m 0.08m FY 2019FY 2020 FY 2019FY 2020 FY 2019FY 2020 FY 2019FY 2020 FY 2019FY 2020 FY 2019FY 2020 FY 2019FY 2020
Broadband Fixed-line Mobile Cable Pay-TV DTH pay-TV OTT Out-of Footprint internet telephony services Successful track record of up-selling and cross-selling multi-play packages
8 Strong ARPU growth at Group level for consecutive years
Group Blended Cable ARPU CAGR +2% -10% €22.7 €21.9 €20.6 €20.5 €19.4 €18.3
FY 2015 FY 2016 FY 2017 FY 2018** FY 2019** FY 2020** Blended Cable ARPU* by subgroup -1%
€35.7 €35.4 +2% +3% €21.2 €21.7 +1% €19.7 €20.3 +4% €18.3 €18.5 €9.9 €10.3
FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 Vivacom** SBB Serbia Telemach SLO Telemach BH Telemach MNE
Group Blended Cable ARPU repositioning driven by inclusion of Vivacom into the Group * Please note tha t due to the acquisition of Vivacom we had to amend certain key operating measures definitions in order to align methodology across the group (Homes Passed, Unique Cable Subscribers and Blended Cable ARPU). Due to this change there was also a minor restatement of blended cable ARPU figures for periods from 2018 forward. No restatement was done for periods before that. 9 ** Prior year figures included for presentation purposes only. Vivacom acquired in August 2020. Excludes results for the period prior to United Group's acquisition of Vivacom. Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
10 Revenue up 57% YoY
Revenue
CAGR +57% Drivers of revenue growth: +25% €1,161m +17% • acquisition of Vivacom, Forthnet +23% and Telemach CRO +22% +13% €742m • growth in the number of €636m subscribers and multi-play €459m €518m €377m packages • cross-selling • price increases • launch of Shoppster platform FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Revenue by subgroup -5% +4% €282m 0% €267m €241m €239m €240m€232m 0% +14% €227m €162m €74m €74m -6% €42m €35m €40m €14m €14m
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 Telemach Telemach Telemach Vivacom* SBB Serbia Telemach Forthnet* United Media Other SLO CRO* BH MNE YoY revenue growth mainly due to Vivacom, Forthnetand Telemach CRO acquisitions
*Excludes results for the period prior to United Group's acquisition of Vivacom, Forthnet and Telemach CRO. Vivacom acquired in August 2020, Forthnet acquired in November 2020, while Telemach CRO acquired in 11 March 2020. Maintaining a strong track record of profitable growth Adjusted EBITDA and Adj. EBITDA margin 43% 41% 43% 41% 40% 37% Drivers of Adj. EBITDA growth:
CAGR • acquisition of Vivacom, Forthnet +47% and Telemach CRO 600 +22% 0.00 • cost discipline €434m • growth in the number of 400 -0.01 €261m €295m subscribers and multi-play €190m €223m packages 200 €161m -0.02 +18% +17% +17% +13% • cross-selling vs vs vs vs • price increases 0 2015 2016 2017 2018 -0.03 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Adjusted EBITDA by subgroup +1% +8% -7% €117m €118m €86m -14% €74m €80m -22% €80m €74m €48m €26m €23m -78% €12m €3m €3m
FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY €-5m €-10m 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 FY FY 2019 2020 Telemach Telemach Telemach Telemach Vivacom* SBB Serbia Forthnet* United Media Other SLO CRO* BH MNE Vivacom, Forthnet and Telemach CRO contribution and operational efficiency keyto maintaining robust EBITDA growth 12 *Excludes results for the period prior to United Group's acquisition of Vivacom, Forthnet and Telemach CRO. Vivacom acquired in August 2020, Forthnet acquired in November 2020, while Telemach CRO acquired in March 2020. Sustained investment underpins high growth Capex (as % of revenue)
40% 29% 26% 29% 25% 23%
CAGR Drivers of CAPEX growth: +12% +43% €270m • acquisitions (e.g. Vivacom, Forthnet and Telemach CRO) €185m €188m • network investment (fixed and €150m €133m €137m mobile) • investment in content and TV equipment • IT projects related investments FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Capex by subgroup -18% +22% -3% €66m €54m +11% €60m €53m €52m -22% €49m +82% €41m €26m €15m €14m €16m €4m €3m €2m €3m FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 Telemach Telemach Telemach Telemach Vivacom* SBB Serbia Forthnet* United Media Other SLO CRO* BH MNE Trend of continuous reduction of CAPEX as % of revenue accelerated by COVID measures in 2020
*Excludes results for the period prior to United Group's acquisition of Vivacom, Forthnet and Telemach CRO. Vivacom acquired in August 2020, Forthnet acquired in November 2020, while Telemach CRO acquired in March 2020. 13 Positive momentum in cash conversion*
Cash conversion
CAGR +53% +71% €165m
€107m €87m €76m €57m €11m
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Cash conversion by subgroup +25%
€64m +34% -54% €51m €45m -43% €28m €31m €21m €22m -23% €14m -79% €12m €7m
FY FY FY FY FY FY FY FY €-2m FY FY €-1m €-1m FY FY 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 €-7m FY FY FY FY €-13m 2019 2020 2019 2020 FY FY 2019 2020 Telemach Telemach Telemach Telemach Vivacom** SBB Serbia Forthnet** United Media Other SLO CRO** BH MNE Stronger Adj. EBITDA growth compared to CAPEX resulted in record high cash conversion in 2020
* Adjusted EBITDA less CAPEX 14 ** Excludes results for the period prior to United Group's acquisition of Vivacom, Forthnet and Telemach CRO. Vivacom acquired in August 2020, Forthnet acquired in November 2020, while Telemach CRO acquired in March 2020. Net leverage decreased compared to FY 2019
Net debt Cash Leverage Adj. Gross debt +21% €3,306m
€2,735m 5.31x 4.97x 4.86x €3,740m 4.70x €2,796m
€-61m €-434m FY 2019 FY 2020* Gross Net Gross Net leverage leverage leverage** leverage** FY 2019 FY 2020
* Gross debt figure includes effect of additional debt for acquisition of Nova BG and other ** Annualized Adjusted Pro Forma EBITDA is calculated as two times Q4 2020 + Q3 2020 companies for which the Group signed agreements for acquisition and are in process of Adjusted EBITDA plus €6.9 million of United Media expected synergies plus €36.6m of Vivacom receiving regulatory approvals, as well as estimated consideration for acquisition of L2QA Adj. EBITDA Contribution (Jul20) plus €50.1 million Forthnet L2QA Adj. EBITDA Contribution minority interest in Grand production d.o.o. and in Forthnet Group, but excludes capitalized (Jul20-Oct20) plus €55.3 Nova BGL2QA Adj. EBITDA plus €13.0 Other M&A L2QA Adj. EBITDA. 15 transaction costs. Cash figure includes net proceeds from bonds issued in January 2021. COVID-19 update
Response
The Group’s main priority has been the health and safety of all employees and stakeholders, and the continuous provision of services to its customers. The Group has adhered to instructions issued by the relevant state authorities, including those relating to travel restrictions and enforced working from home. Management believes that the impact on business is currently limited with no immediate material adverse operational impact. Management intends to continue following the various national and/or state authorities’ policies and, in parallel, intends to do the utmost to continue operations as the situation evolves.
COVID-19 impact on Revenues and Adjusted EBITDA
Minimal impact to organic consolidated revenues (organic revenues -1.2% compared to 2019) Revenue streams most likely affected: advertising, media selling and mobile handsets sales The Group has been able to mitigate such shortfall in revenues primarily through cost optimisation initiatives to record a stable organic Adjusted EBITDA compared to last year (organic Adj. EBITDA +0.1% compared to 2019). The Group has amended its plans for Capex spend during 2020, where possible, without hindering the Group’s ability for future growth and quality of services provided.
The management expects that the Group should be able to mitigate any further impacts of COVID-19 pandemic during 2021 as it did during 2020. As a results, given that the severity and longevity of the pandemic will not materially deviate from that of 2020, the management expects no material and immediate adverse impact to the Group's operations and financial performance.
16 Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
17 Mergers & Acquisitions Ongoing transactions Completed transactions Year Company Business Country
2021 Media
2021 Media
2021 Media
•The Group agreed to acquire 100% of the share 2020 Telecoms f ixed capital of the Serbian transportation company D 2020 Telecoms f ixed express. 2020 Telecoms f ixed
2020 Telecoms f ixed
2020 KRS Štepanjskonaselje Telecoms f ixed
2020 E-commerce •The Group agreed to acquire the remaining part of 2020 Telecoms f ixed Grand Production d.o.o. The transaction completed 2020 E-commerce on March 2, 2021. 2020 Telecoms f ixed
2020 Telecoms mobile 2020 I.R.V. d.o.o Media 2019 Telecoms f ixed
•The Group agreed to acquire 100% of the share 2019 Telecoms f ixed capital of the Bulgarian telco operators Net1 2019 Telecoms f ixed EOOD, ComNet Sofia EAD and Digital Cable 2018 Media Television OOD (N3). 2018 Media 2018 Media 2018 BH OTT TV OTT Worldwide 2018 Kabel Group Telecoms f ixed •The Group increased its stake in Forthnet S.A. Greece to 84.6%. On 27 January 2021 Hellenic 2018 Media Capital Market Commission approved the 2017 Telecoms Fixed Mandatory Tender Offer. As of the date of this 2017 Media presentation, the Group has a 99.4% stake in Forthnet. 2017 Media 2017 Telecoms f ixed 18 Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
19 ARPU by service
Vivacom* Forthnet* SBB Serbia Telemach SLO Telemach CRO* Telemach BH Telemach MNE
ARPU FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020
Cable pay-TV €8.8 €9.0 - - €10.5 €10.5 €19.0 €18.3 - - €10.6 €10.7 €11.4 €11.3
Broadband internet €5.3 €5.2 - - €10.7 €11.0 €18.3 €18.2 - - €9.9 €9.9 €8.2 €8.2
Fixed-line telephony €5.2 €5.3 - - €3.6 €3.6 €3.2 €2.9 - - €6.8 €6.5 €2.8 €2.7
Mobile services €6.5 €7.1 - - - - €10.8 €10.9 €12.7 €13.0 - - - -
DTH pay-TV €8.4 €9.1 €20.3 €17.3 €10.6 €10.0 €18.4 €18.4 - - €9.5 €9.2 €11.8 €10.9
Blended cable** €9.9 €10.3 - - €19.7 €20.3 €35.7 €35.4 - - €21.2 €21.7 €18.3 €18.5
ARPU growth YoY mainly from up-selling, cross-selling and price increases
* Prior year figures included for presentation purposes only. Excludes results for the period prior to United Group's acquisition of Vivacom, Fothnet and Telemach CRO.Vivacom acquired in August 2020, Forthnet acquired in November 20 2020, while Telemach CRO acquired in March 2020. FY 2020 ARPU is for the period after the closing. ** Please note that due to the acquisition of Vivacom we had to amend certain key operating measures definitions in order to align methodology across the group (Homes Passed, Uniq ue Cable Subscribers and Blended Cable ARPU). Due to this change there was also a minor restatement of blended cable ARPU figures. Bonds
United Group B.V. Senior Notes 2026 Floating Senior Secured Notes
Issuer United Group B.V. Outstanding notes €450 million Three-month EURIBOR (subject to a zero floor) Listed International Stock Exchange (Guernsey) Coupon plus 3.25% Governing Law State of New York Maturity 15-Feb-26 15 February, 15 May, 15 August 2024 Fixed Rate Notes Coupon dates and 15 November Outstanding notes €525 million 2028 Refinancing Senior Secured Notes Coupon 4.875% Outstanding notes €625 million Maturity 01-Jul-24 Coupon 3.625% Coupon dates 15 January & 15 July Maturity 15-Feb-28 2025 Floating Rate Notes Coupon dates 15 February & 15 August Outstanding notes €550 million 2027 Fixed Rate Senior Secured Notes Three-month EURIBOR (subject to a zero floor) Coupon Outstanding notes €400 million plus 4.125%
Maturity 15-May-25 Coupon 4.000% 15 February, 15 May, 15 August Maturity 15-Nov-27 Coupon dates and 15 November Coupon dates 15 May & 15 November 2026 Fixed Rate Senior Secured Notes 2027 Fixed Rate Senior Secured Notes* Outstanding notes €600 million Outstanding notes €150 million Coupon 3.125% Coupon 4.000% Maturity 15-Feb-26 Maturity 15-Nov-27
Coupon dates 15 February & 15 August Coupon dates 15 May & 15 November
* In January 2021, the Group issued additional notes in the aggregate amount of €150,000 thousand. 21 Income statement in €000 FY 2019 FY 2020 Revenue 741.812 1.161.270 Other income 8.914 7.406 Content costs (124.212) (130.533) Link and interconnection costs (38.151) (91.557) Cost of end-user equipment and other material cost (50.269) (145.781) Staff costs (102.108) (134.820) Media buying (39.681) (38.168) Net impairment on trade and other receivables, including contract assets (11.140) (12.171) Net impairment on other financial assets (7.036) (166) Other operating expenses (119.402) (199.221) IFRS EBITDA 258.727 416.259
Depreciation (106.828) (161.719) Depreciation (right-of-use assets) (17.972) (42.793) Amortization of intangible assets (82.280) (143.278) Results from operating activities 51.647 68.469 Finance income 4.221 2.909 Finance costs (108.490) (135.914) Net finance costs (104.269) (133.005)
Profit/(loss) before tax (52.622) (64.536) Income tax (expenses)/benefit (7.414) (7.890) Profit/(loss) for the period (60.036) (72.426)
Other comprehensive loss Items that are or may be reclassified subsequently to profit and loss Currency translation differences 339 (1.193) Other comprehensive income/loss for the period 339 (1.193)
Total comprehensive income/loss for the period (59.697) (73.619) Profit/(loss) attributable to: Owners of the Company (64.163) (74.139) Non-controlling interests 4.127 1.713 Profit/(loss) for the period (60.036) (72.426) Total comprehensive income/(loss) attributable to: Owners of the Company (63.824) (75.332) Non-controlling interests 4.127 1.713 Total comprehensive income/(loss) for the period (59.697) (73.619)
22 Statement of financial position in €000 FY 2019 FY 2020 Assets Property, plant and equipment 419.175 1.068.258 Goodwill 766.348 963.999 Intangible assets 288.342 909.752 Investment property 285 70.358 Right-of-use assets 109.474 284.425 Loans to related parties 5.980 6.866 Other financial assets 1.013 54.705 Non-current prepayments 327 5.105 Non-current trade receivables - 17.765 Contract assets 5.513 11.455 Deferred costs 181 178 Deferred tax assets 4.251 19.101 Non-current assets 1.600.889 3.411.967
Inventories 19.138 62.092 Trade and other receivables 154.794 293.250 Short-term loans receivables and deposits 8.115 9.328 Prepayments 34.570 50.153 Contract assets 22.614 64.081 Income tax receivables 9.014 10.415 Assets classified as held for sale - 793 Cash and cash equivalents 250.058 285.405 Current assets 498.303 775.517
Total assets 2.099.192 4.187.484
23 Statement of financial position - continued in €000 FY 2019 FY 2020 Equity Issued and fully paid share capital 125 125 Share premium 352.557 527.046 Capital reserves 54.468 54.468 Translation reserves (12.475) (13.668) Accumulated losses (411.577) (538.100) Equity attributable to owners of the Company (16.902) 29.871 Non-controlling interests 10.138 13.143 Total equity (6.764) 43.014
Liabilities Loans and borrowings 68.206 217 Other financial liabilities - bonds 1.654.900 3.118.441 Long-term liabilities 2.873 10.392 Long-term provisions 24.054 95.788 Deferred operating lease income 4.383 5.685 Contract liabilities 1.859 6.575 Lease liabilities 87.260 231.611 Deferred tax liabilities 27.125 102.472 Employee benefits 794 11.304 Non-current liabilities 1.871.454 3.582.485
Trade and other payables 139.623 399.536 Current tax liabilities 9.762 12.574 Loans and borrowings 24.095 1.941 Interest payables bond 26.323 33.294 Deferred operating lease income 5.055 3.687 Contract liabilities 9.836 49.935 Lease liabilities 19.808 61.018 Current liabilities 234.502 561.985 Total liabilities 2.105.956 4.144.470 Total equity and liabilities 2.099.192 4.187.484
24 Consolidated statement of cash flows
in €000 FY 2019 FY 2020 in €000 FY 2019 FY 2020
Cash flows from operating activities Cash flows from investing activities (Loss)/profit for the period (60.036) (72.426) Acquisition of property, plant and equipment (119.803) (166.639) Adjustments for: Acquisition of intangible assets (65.834) (108.787) Depreciation 124.800 204.512 Acquisition of subsidiaries, net of cash acquired (53.825) (1.080.008) Amortization 82.280 143.278 Receivables assignment - (18.270) Net impairment of trade and other receivables 10.411 11.335 Proceeds from sale of property, plant and equipment Net impairment of contract assets 729 836 - 821 and assets held for sale Net impairment of other financial assets 7.036 166 - (803) Impairment loss of subscriber acquisition costs 325 2.102 Prepayments for right-of-use Impairment loss of goodwill - 890 Short term loans receivable and deposits inflow - 2.840 Impairment of property, plant and equipment 1.209 4.007 Short term loans receivable and deposits outflow (2.404) (654) Impairment of inventories 1.161 1.293 Cash (outflows)/inflow from related party 30.000 (760) Income tax (benefit)/expense 7.414 7.890 Cash outflow other non-current financial assets (4.800) (3.487) Net change on long-term provisions (2.129) 967 Cash inflow other non-current financial assets 69 274 Share based payment 21.659 - Net cash used in investing activities (216.597) (1.375.473) Net finance cost 104.269 133.005 Operating cash flows before WC changes 299.128 437.855 Cash flows from financing activities Proceeds from share premium 15.000 174.489 Changes in: Proceeds from bond issue 757.000 2.075.000 Trade and other receivables (2.176) (6.715) Repayment of bond (450.000) (587.578) Deferred revenue (1.704) 4.389 Proceeds from borrowings 226.920 193.000 (123) 4 Deferred cost Repayment of borrowings (207.833) (602.808) Contract assets (11.782) (2.108) Transaction costs related to loans and borrowings (7.573) (32.582) Contract liabilities 2.188 1.060 Acquisition of non-controlling interest (1.108) (8) Employee benefits 163 - Repayment of derivate 771 - Inventories 1.904 (7.726) (20.810) (48.267) Prepayments (2.342) 7.079 Repayment from lease liabilities Trade and other payables (44.148) (8.011) Dividends paid (51.764) (53.578) Cash generated from operations 241.108 425.827 Net cash from financing activities 260.603 1.117.668 Net increase in cash and cash equivalents 206.627 35.344 (67.093) Interest paid (115.431) Cash and cash equivalents at 1 January 43.430 250.058 Income tax paid (11.394) (17.247) Effect of movements in exchange rate on cash in hands 1 3 Net cash from operating activities 162.621 293.149 Cash and cash equivalents at end of period 250.058 285.405
25