Cablenet Communication Systems Plc
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Cablenet Communication Systems plc Investor Presentation June 2020 www.cablenet.com.cy Important Information & Disclaimers This presentation contains information about the business of, and the bonds that may be offered by, Cablenet Communication Systems plc. This slideshow and the information contained herein is subject to change at the sole discretion of Cablenet Communication Systems plc. Any offer of bonds by Cablenet Communication Systems plc is subject to a number of conditions including, but not limited to, conversion to a public limited liability company and approvals by the Maltese Listing Authority and the Exchange, and therefore may or may not materialise. Certain information contained in this presentation including, but not limited to, the name and status of Cablenet Communication Systems plc and its board composition do not necessarily reflect the current situation but that proposed as at the date of the prospectus to be issued in relation to the proposed issue and allotment of the bonds, should the proposed issue and allotment take place. Furthermore, any forward-looking statements, including those relating to matters which are not historical facts and which involve projections and assumptions of future circumstances are subject to a number of risks, uncertainties, assumptions and important factors that could cause actual risks to differ materially from the expectations of the Directors. No assurance is given that future results or expectations will be achieved. 2 June 2020 Introduction Cablenet Communication Systems plc (“Cablenet”, “Company” or “Issuer”) 39.74% is a telecommunications company operating in Cyprus majority owned by 60.26% GO p.l.c (60.26%) and Mr. Nicolas Shiacolas (39.74%) The Company is in advanced preparations in respect of a proposed public €40 million issue in Malta of 4% unsecured bonds with an aggregate principal amount of up to €40 million with 10-year maturity and a par value of €1,000 July 2020 Targeted Listing Authority approval 3 June 2020 Ownership Structure 5x other Nicolas GO p.l.c. shareholders Shiacolas (60.26%) majority (one share each in (39.74%) ownership issued share capital1) Cablenet Communication Systems plc (The Issuer) Note1: a minimum of seven (7) shareholders are required for a company to be considered a public company according to Cyprus Regulation 4 June 2020 Governance Issuer’s Board of Directors Mr. Nicolas Shiacolas Non-Executive Chairman Mr. Iosif Iosifakis Executive Director Mr. Periklis Theodoridis Executive Director Mr. Nikhil Patil2 Non-Executive Director Mr. Paul Testaferrata Moroni Viani Non-Executive Director Mr. Samir Saied1 Non-Executive Director Mr. Faker Hnid Non-Executive Director Mr. Michael Warrington1,2 Independent, Non-Executive Director Mr. Neoclis Nicolaou1,2 Independent, Non-Executive Director Dr. Francis Galea Salomone Company Secretary Note1: Will be appointed to the Board prior to the Bond Issue Note2: Member of the Audit Committee of the Board 5 June 2020 Executive Management Issuer’s Senior Management Team Mr. Yiannos Michaelides CEO Mr. Iosif Iosifakis Head of Strategy, Finance and Corporate Affairs Mr. Periklis Theodoridis Head of Operations, Marketing and Content Mr. Thomas Hoplaros Head of Business Ms. Chrystalla Karagiorgi Head of Human Resources Mr. Michalis Perikleous Head of Access Network Mr. Ioannis Michaelides Head of Information 6 June 2020 Section I Business Overview Cablenet Opportunity Quad-play telecoms operator Serving over 76K B2C & B2B customers across Cyprus Robust and resilient infrastructure Owns and operates a high speed fibre and cable network covering 60% of the island Proven Revenue and EBITDA growth Track record in growing revenue and EBITDA by 24% over the last 3 years 100+ years of industry experience Driven by a focused and experienced executive team Large opportunity for future growth Well placed to capitalise on future growth by expanding into the mobile market 8 June 2020 History of Cablenet 2006 2008 2014 2015 Cablenet is acquired Cablenet adds Digital GO invests in Cablenet 100% by Nicolas TV and the first HD Cablenet launches mobile Shiacolas channel in Cyprus services as an MVNO 2003 2007 2011 2015 2019 Cablenet commences Cablenet launches the Cablenet offers the fastest Cablenet offers Cablenet operations upon signing first triple-play package broadband B2C product in broadband speeds acquires the in Cyprus, all through a the market with speeds of contract with the EAC of up to 120 Mbps 4th mobile single connection up to 40 Mbps license (MNO) 9 June 2020 Cablenet Overview Residential Product Overview Selection of fiberpower® Internet with Fixed Telephony service Business Overview Cablenet is a quad-play telecoms service provider in Cyprus offering television, broadband, fixed voice and mobile services to residential and business customers Various TV packages with 85+ SD and HD channels including FOX, Nova, Catch-up TV, View on Demand, and Cablenet Sports Cablenet operates a privately-owned fibre-optic network as well as a pioneering HFC cable network, which is classified as a NGAN, covering approximately 180,000 homes that can reach up to 1Gbps per connection Cablenet launched its first mobile services in Q4 2017 as an MVNO service provider and subsequently acquired the 4th Selection of mobile plans with inclusive minutes, sms and data MNO mobile license in 2019 Cablenet retail operations comprise of 6 shops in 4 major cities (2 in Nicosia, 1 in Larnaca, 2 in Limassol and 1 in Paphos), and also provides services through a number of selected authorized resellers Carefully constructed ready-made, 3-play bundles suitable for families and sports lovers Cablenet has achieved steady growth in its market share and revenue since 2008, largely due to offering “value for money” services with primarily high speed multiplay bundles at competitive prices 10 June 2020 Cablenet Business Overview Cablenet Business Philosophy Business Solutions Overview Cablenet Business provides innovative, tailor- made b2b solutions to all business segments Internet Data Centre in the market by leveraging Cablenet’s Connectivity Services privately-owned network and state-of-the-art Services infrastructure, which is interconnected with Mobile high bandwidth terrestrial fibre optic circuits Telephony Public Cloud Services Services Cablenet has Points of Presence in all cities around Cyprus, interconnected with multiple Network Fixed fibre rings for seamless performance Solution Telephony Services Services Cablenet has modern equipment and backup systems to guarantee high availability Cablenet is interconnected with high international bandwidth via multiple submarine cable systems to various international points including London, Frankfurt, Marseille and Athens that are fully We Serve interconnected with each other with high bandwidth terrestrial fibre optic circuits to ensure a resilient MPLS network Self Employed Small Business Medium Business Large Business Carrier Services 11 June 2020 Fully Resilient All IP Infrastructure National Network Access Cablenet operates a privately owned HFC network covering 180k homes and serving 73K residential subscribers and aver 3K businesses Upgraded to the latest DOCSIS 3.0 cable technology with internet Nicosia KEAD speeds up to 1Gbps JCC Larnaca Network Operations Center Pafos Alambra Major Point of Presence Cablenet has been rolling out its privately owned Fibre Optic network Kofinou Major Transit Point Pentaschinos based on Active Ethernet technology with attainable speeds up to multi- 2x30 GigE Yeroskipos Vasilikos gigabit Limassol 200GE 10 GigE National Backbone International Network Cablenet operates six major PoPs in Cyprus all interconnected with a state-of-the-art multi-100G self healing ring HAWK Cablenet has in place both Ethernet based 200Gbps connections and multiple 10G aggregated links for backhauling its own international links LEV Cablenet has multi-fibre metro rings in urban centres in Cyprus (Nicosia, ALEXANDROS (TEN) Limassol, Larnaca and Paphos), providing redundancy not only to JONAH Cablenet’s data centre but also to its key clients AAE-1 International Network ATHENA EUROPEAN TERRESTRIAL NETWORK Cablenet owns a total submarine capacity of 110 Gbps on multiple cable systems JONAH 12 June 2020 Cablenet Competitive Landscape CYTA EPIC PRIMETEL GO 39.74% Various Ownership private 60.26% Cyprus Monaco CNS 100% 100% shareholders Government Telecom Broadband 22% 73K Broadband 55% 181K Broadband 7% 23K Broadband 15% 49K Market Pay TV 35% 46K Pay TV 44% 57K Pay TV 4% 5K Pay TV 18% 23K Share Fixed Voice 14% 47K Fixed Voice 63% 204K Fixed Voice 7% 23K Fixed Voice 15% 49K Mobile 1% 15K Mobile 53% 657K Mobile 35% 434K Mobile 10% 124K 2019 20181 20171 20161 REVENUE €40 million REVENUE €344 million REVENUE €121 million REVENUE €54 million Profitability EBITDA €15 million EBITDA €110 million EBITDA €39 million EBITDA €13 million Margin 37% Margin 32% Margin 32% Margin 23% Note1: Figures for competitor financial data taken from latest available public figures 13 June 2020 1 Cablenet has the highest NPS driven by Speed and TV contents, followed by Cyta; EpOneic and ofPrimeT theel are Best NPS neg Brandsative in Cyprus NPS FIX E D / TV NPS1 | (index) CYTA EPIC PRIMETEL NPS1 27 31 31 28 22 25 27 25 2 -3 -7 -3 5 2 -12 -13 19% 20% 19% 20% 32% 29% 32% 29% Promoters 42% 44% 42% 38% 38% 40% 41% 40% Passives 50% 47% 50% 47% 40% 45% 40% 45% 46% 43% 43% 48% 52% 46% 44% 46% Detractors 31% 33% 31% 33% 28% 22% 28% 22% 15% 13% 11% 10% 16% 15% 15% 15% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2