9M 2019 Financial results presentation 26 November 2019
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 unaudited condensed financial information for Adria Midco B.V. and its subsidiaries for the nine months ended September 30, 2019. The statement of financial position for Adria Midco B.V. and its subsidiaries as at 30 September 2019 and as at 30 September 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 nine 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
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
3 United Group: Proven cable growth & sustainable leadership through media The leading multi-play communications and media Revenue* by category (LTM 9M 2019) provider in South-East Europe . LTM 9M 2019 Revenues: €737m Other revenues 6% . LTM 9M 2019 Adjusted EBITDA: €289m Cable Pay-TV United Group is a well-diversified business with leading 23% market positions in Serbia, Croatia, Slovenia, Bosnia Media Herzegovina, Montenegro and, with the signing of the 25% Vivacom acquisition, Bulgaria . 5m households watching United Group channels . Over 1.8m homes using broadband and telecoms services, attracted by better service and increased 18% choice 4% Broadband Internet OTT Operating in a market characterized by continued 11% growth in Pay-TV and broadband, that remains 4% Mobile service 8% underpenetrated relative to other CEE and Western Telephony Fixed-line European markets DTH Pay-TV Reputation for providing the most attractive content in our respective markets, available across all devices and formats Led by a dynamic and entrepreneurial founder with an experienced home-grown management team
A significant private employer in the region * External revenue (not including Inter-segment revenue) 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: an outstanding track record of growth
Compound annual growth rates from 2015- Revenue 2018 CAGR . Revenue: 19% +19% €737m €725m . Adjusted EBITDA: 17% €636m €518m €459m Completed more than 100 successful €377m acquisitions since 2000
Owned by funds affiliated with BC Partners and KKR, EBRD and by management 2015 2016 2017 2018 LTM L2QA* Biggest PE / FDI investment in South Eastern 9M 19 9M 19 Europe Adjusted EBITDA CAGR First regional company to raise foreign debt €365m +17% €289m €297m €261m First to attract investment from EBRD €223m €190m €161m
2015 2016 2017 2018 LTM L2QA* PF L2QA* 9M 19 9M 19 9M 19
Outstanding track record of growth resulting from organic growth and acquisitions
* As reported L2QA performance of United Group. 5 ** Pro Forma L2QA Adjusted EBITDA includes adjustment for Tele2 acquisition and United Media 2018 acquisitions. United Group‘s integrated business model is a key differentiator
Pan regional platform Cable & Mobile Leading integrated media #1 multi-play operator platform
Large, well-invested network . 15,600km of fiber optic cable . Fully upgraded to EuroDOCSIS 3.0 . Market leading broadband speeds Virtuous First in the region with OTT (2103) and 4G (2015) circle of Major local producer of quality content World first EONTV / Google partnership growth across genres: Differentiated by excellence in customer . Supports growth, increased choice service reflected in: and innovation . Consistently high customer . Provides predictable carriage fees satisfaction scores Independent news – CNN / N1 partnership . Low customer churn of Distribution partner of choice for premium approximately 10% per annum 3rd party content such as world class sports Differentiation
6 Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
7 Strong organic growth across all key services
RGUs +4% CAGR 3.87m +10% 3.79m 3.74m 3.61m
3.15m 2.85m
2015 2016 2017 2018 9M 2018* 9M 2019 RGUs by service
+1% +4% 1.16m 1.17m +9% +7% 0.81m 0.84m 0.68m -4% 0.62m 0.54m 0.50m -3% +37% 0.47m 0.45m 0.12m 0.12m 0.05m 0.07m
9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 2018* 2019 2018* 2019 2018* 2019 2018* 2019 2018* 2019 2018* 2019 2018* 2019 Broadband Fixed-line Mobile Cable Pay-TV DTH pay-TV OTT Other services internet telephony services Successful record of upselling and cross-selling multi-play packages
* 2018 restated – Following a change in RGU classification methodology at the start of 2019, 2018 figures have been restated to facilitate like-for-like comparison. As a result of the new approach, OTT 8 users on our network are now classified as Cable and Cable services users on other networks, which are in turn reported under Other Services. Besides RGU and subscriber figures, this change also had an immaterial effect on ARPU. All 2018 operational figures are restated in line with the new approach. Continued ARPU increase across all subgroups
Group Blended cable ARPU +3% CAGR €22.7 +6% €22.1 €21.9 €20.6 €19.4 €18.3
2015 2016 2017 2018 9M 2018* 9M 2019 Blended cable ARPU by subgroup
+3% +6% +4% €35.6 €36.7 +4% €21.0 €18.9 €19.5 €19.7 €17.5 €18.2
9M 2018* 9M 2019 9M 2018* 9M 2019 9M 2018* 9M 2019 9M 2018* 9M 2019 SBB Serbia Telemach Slovenia Telemach BH Telemach MNE
ARPU growth through up-sell, cross-sell and price increases
* 2018 restated – Following a change in RGU classification methodology at the start of 2019, 2018 figures have been restated to facilitate like-for-like comparison. As a result of the new approach, OTT 9 users on our network are now classified as Cable and Cable services users on other networks, which are in turn reported under Other Services. Besides RGU and subscriber figures, this change also had an immaterial effect on ARPU. All 2018 operational figures are restated in line with the new approach. Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
10 Revenue up 23% YoY
Revenue Drivers of revenue growth: CAGR +19% • price increases and cross-selling +23% • growth in the number of +13% €737m +23% +22% €636m subscribers €518m €542m • increase of CableTV and €459m €440m €377m NationalTV carriage fees • increased advertising and media selling • improved performance of acquired companies 2015 2016 2017 2018 LTM 9M 9M 2018 9M 2019 Revenue by subgroup (YTD 19) 2019 +79% +5% +5% €200m €170m €179m €163m €171m +7% €112m -32% €51m €55m +7% €33m €10m €11m €23m
9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 SBB Serbia Telemach Telemach BH Telemach MNE United Media Other Slovenia Continued revenue growth across all subgroups
11 Maintaining strong track record of profitable growth
Adjusted EBITDA and Adj. EBITDA margin Drivers of Adj. EBITDA growth:
39% 41% 43% 41% 43% 41% 44% 41% • price increases and cross-selling CAGR • growth in the number of 400 0.06subscribers +17% +15% €289m €297m •0.04increase of CableTV and 300 €261m €223m €221m NationalTV carriage fees €190m €192m 0.02 200 €161m • increased advertising and 0.00media selling 100 +18% +17% +17 • improved performance of vs vs % vs -0.02 2016 2016 2017 acquired companies 0 •-0.04cost discipline 2015 2016 2017 2018 LTM 9M L2QA 9M 2018 9M 2019 Adjusted EBITDA by subgroup 2019
+3% +62% +4% €85m €87m +14% €60m €56m +15% €53m €37m €17m €19m -76% €2m €3m
9M 9M 9M 9M 9M 9M 9M 9M 9M 9M €-2m €-3m 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 9M 9M 2018 2019 Telemach SBB Serbia Slovenia Telemach BH Telemach MNE United Media Other
Adjusted EBITDA margin decrease due to newly acquired media business
12 Sustained investment underpins high growth
Capex (as % of revenue)
40% 29% 26% 29% 27% 30% 27%
Drivers of CAPEX growth: CAGR +7% €185m €198m +10% • effect of acquisitions • higher network investment €150m €144m €133m €137m €131m • higher investment in customer premises equipment • investment into producion of new exclusive content • increased cost of sports rights 2015 2016 2017 2018 LTM 9M 9M 2018 9M 2019 Capex by subgroup 2019 +21% -8% +29% €49m €44m +2% -25% -33% €40m €40m €40m €31m €11m €11m €4m €3m €1m €1m
9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 9M 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 SBB Serbia Telemach Telemach BH Telemach MNE United Media Other Slovenia Majority of investments are related to purchase of new programming rights, customer premise equipment, network expansion, IP equipment and investment in mobile infrastructure 13 Positive momentum in cash conversion*
Cash conversion CAGR +90% +26% €87m €92m €76m €77m €57m €61m
€11m
2015 2016 2017 2018 LTM 9M 2019 9M 2018 9M 2019 Cash conversion by subgroup
-13% +241% €45m €39m +63% +34% €19m
€15m €9m €9m €6m +91% €6m -31%
9M 9M 9M 9M 9M 9M €0m 9M 9M €-1m €-3m €-4m 2018 2019 2018 2019 2018 2019 2018 2019 9M 9M 9M 9M 2018 2019 2018 2019 Telemach SBB Serbia Telemach BH Telemach MNE United Media Slovenia Other Cash conversion up on a YoY basis across all subgroups with the exception of SBB Serbia and Other
14 * Adjusted EBITDA less CAPEX Net leverage broadly stable compared to prior quarter
Net debt Cash** Leverage Adj. Gross debt***
+25% €1,697m
€1,358m 4.81x 4.74x 4.64x 4.65x €1,753m €1,416m
Gross Net Gross Net €-58m €-56m leverage leverage* leverage leverage* 9M 2018 9M 2019 H1 2019 9M 2019 per PF L2QA EBITDA
* Annualized Adjusted Pro Forma EBITDA is calculated as two times Q2 2019 + Q3 2019 Adjusted ** Cash figure does not include transaction costs related to bond issuance and 15 EBITDA plus €4.2 million of expected synergies with Nova Croatia and €12.4 million of expected consideration for Tele2 synergies with DM & PINK plus Tele2 annualized Q2 2019 + Q3 2019 Adjusted EBITDA (€51.6m) *** Gross debt figure does not include transaction costs related to bond issuance Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
16 Mergers & Acquisitions
Last twelve months mergers & acquisitions Mergers & Acquisitions (2014 – present)
Year Company Business Country
2019 Telecoms fixed •The Group agreed to acquire Vivacom, the largest telecoms operator in Bulgaria. The transaction is 2019 Telecoms fixed expected to close in the second quarter of 2020, subject 2018 Media to certain conditions including receipt of applicable antitrust approvals 2018 Media 2018 Media
2018 BH OTT TV OTT Worldwide
2018 Kabel Group Telecoms fixed
•Skyline kabel d.o.o. merged with Telemach Slovenia 2017 Media d.o.o. 2017 Telecoms fixed
2017 Media
2017 Media
2017 Telecoms fixed
•The Group agreed to acquire Tele2 d.o.o. Croatia for an 2016 Telecoms fixed enterprise value of €220m. The transaction is expected to close before the end of 2019 and is subject to regulatory 2016 Telecoms fixed approvals 2015 Telecoms fixed
2015 Telecoms mobile
2014 Telecoms fixed 2015
2014 Media •Netlogic d.o.o. Serbia merged with SBB d.o.o., Serbia 2014 Media
2014 Telecoms fixed
2014 OTT Worldwide
17 Mergers & Acquisitions: Vivacom – Company Overview
• Vivacom is the leading integrated telecom operator in Bulgaria with the highest market share (35% of revenue, 2018A), and a leading position in mobile telephony, broadband and pay TV • Established in 1992 as the state-owned telecom incumbent, Vivacom was privatised in 2004 • Within 15 years of private ownership, Vivacom has been successfully transformed from a fixed line focused incumbent to a mobile challenger, and has significantly outperformed its local competitors, as evidenced by increased market shares, and strong and growing operational and financial performance
• L2QA EBITDA (as of H1 2019) EUR 199m • Growing top line on the back of increasing ARPUs has led to EBITDA growth and margin expansion to over 40%, and delivered even stronger cash conversion
18 * Source: Vivacom information Mergers & Acquisitions: Vivacom – Market Positioning
• Vivacom and A1 are the only two fully converged telecom operators in Bulgaria, with Telenor predominantly offering mobile services and Bulsatcom offering DTH services • Vivacom has gained significant market share since 2014 in mobile (as the third entrant) through an aggressive pricing strategy through 2017 (the three key operators are now of equal size and have shifted to a value for money strategy), while solidifying its presence in broadband and pay-tv by offering bundled services via its IPTV and fibre offering
19 * Source: Phora Capital Mergers & Acquisitions: Vivacom – Investment Rationale
Market-leading integrated • Vivacom is the first operator in the Bulgarian market to offer fully integrated 4-play services: mobile, BB, pay TV, and fixed telephony offered to c.1.8m unique customers telecom operator in Bulgaria • Leading operator with growing market share across all segments: #1 in fixed and the #3 in mobile (the fastest growing, 3rd entrant in the market)
• Fully owned and integrated fibre backbone and most extensive FTTH/FTTB network (limited capex for further Strong technical and roll-out required) commercial platform with own • Fastest LTE network covering 99.7% of Bulgarian population network • Network quality, implementation of operational efficiencies and consolidation of services under one brand have driven customer satisfaction (leading NPS in both fixed and mobile) and decreasing churn rates
• EU member country with currency pegged to EUR and population of 7m as of 2018 Expansion to neighbouring EU • Strong real GDP growth: 3.4% in 2016-19 vs EU average of 1.9% country with strong • Low debt to GDP: 22.6% in 2018 vs EU average of 46.6% macroeconomic fundamentals* • GDP/capita (PPP) of $22K (2018) is 50% of EU average but growing 2x faster • Favourable business environment with low tax rate
Strong and accretive financial • Growing revenue denominated in €-pegged currencies • With c. 50% cash conversion (OpFCF/EBITDA as of 2018), Vivacom will significantly improve the cash flow profile generation of UG
• Expansion in Bulgaria will increase UG’s reach by c.35% in terms of population / addressable market • 1.8m Vivacom unique subs will more than double UG customer base and significantly expand our operations • Currently Vivacom has not focused on product bundling: UG to implement best practices in product bundling Significant potential for and cross-selling to drive pricing optimisation and further improve financial performance business optimisation and • Significant potential synergies: development by leveraging UG • Implementation of EON pay TV technology platform competences • Cost synergies due to economies of scale and implementation of UG best practices • Significant consolidation potential in a fragmented telco and media market • Proven ability to drive optimisation: EBITDA in Slovenia tripled within a decade from EUR 23.9m in 2008 to EUR 71.4m in 2018 following the acquisition of Telemach Slovenia
20 * Source: Bulgarian Central Bank, EIU, Oxford Economics, Bulgarian Ministry of Finance Mergers & Acquisitions: Vivacom – Shareholders Disputes
• The current owners acquired InterV Investment, a parent company of Vivacom, in a public auction in 2016 following an enforcement procedure pursued by lenders against the former shareholders • The former shareholders initiated claims against the current owners in the United Kingdom and in Luxembourg disputing the enforcement and sale of InterV Investment • Claims in the United Kingdom started in 2016 and were substantially resolved in favour of the current owners by July 2019; claims in Luxembourg were initiated in July 2019 and are ongoing • These shareholder disputes are a matter between the current owners and the former shareholders with respect to the enforcement and sale in 2016 which is unrelated to United Group and concern the shares of InterV Investment which are not the object of the United Group acquisition • The United Group acquisition has been entered into on an arm’s length basis for fair market value in a public auction conducted by reputable financial advisors; the shareholder disputes are at a level above the level of the United Group acquisition and are fundamentally unrelated
21 Agenda
01 Introduction
02 Operational review
03 Financial review
04 Mergers & Acquisitions
05 Appendices
22 ARPU by service
SBB Serbia Telemach SLO Telemach BH Telemach MNE
ARPU 9M 2018* 9M 2019 9M 2018* 9M 2019 9M 2018* 9M 2019 9M 2018* 9M 2019
Cable pay-TV €10.3 €10.5 €18.7 €19.1 €9.6 €10.5 €11.1 €11.3
Broadband internet €10.2 €10.6 €17.7 €18.3 €9.5 €9.8 €8.2 €8.2
Fixed-line telephony €4.1 €3.6 €3.4 €3.2 €7.4 €6.8 €3.2 €2.8
Mobile services - - €10.3 €10.8 - - - -
DTH pay-TV €9.8 €10.6 €17.5 €18.4 €8.4 €9.3 €10.5 €11.9
Blended cable €18.9 €19.5 €35.6 €36.7 €19.7 €21.0 €17.5 €18.2
ARPU growth in 9M 2019 mainly from price increases, upselling and cross-selling
* 2018 restated – Following a change in RGU classification methodology at the start of 2019, 2018 figures have been restated to facilitate like-for-like comparison. As a result of the new approach, OTT 23 users on our network are now classified as Cable and Cable services users on other networks, which are in turn reported under Other Services. Besides RGU and subscriber figures, this change also had an immaterial effect on ARPU. All 2018 operational figures are restated in line with the new approach. Bond
United Group B.V. Senior Notes
Issuer United Group B.V.
Listed International Stock Exchange (Guernsey)
Governing Law State of New York
2022 Fixed Rate Notes
Outstanding notes €575 million
Coupon 4.375%
Maturity 01-Jul-22
Coupon dates 15 January & 15 July
2024 Fixed Rate Notes
Outstanding notes €525 million
Coupon 4.875%
Maturity 01-Jul-24
Coupon dates 15 January & 15 July
2025 Floating Rate Notes
Outstanding notes €550 million Three-month EURIBOR (subject to a zero floor) Coupon plus 4.125% Maturity 15-May-25 15 February, 15 May, 15 August Coupon dates and 15 November
24 Income statement in €000 9M 2018 9M 2019 Revenue 439,965 541,753 Other income 13,170 7,520 Content costs (69,015) (89,347) Satellite capacity costs (3,615) - Link and interconnection costs (30,884) (29,280) Material costs (32,715) (34,853) Staff costs (66,402) (79,404) Media buying (4,020) (28,413) Impairment loss on trade and other receivables, including contract assets (6,957) (5,390) Impairment loss on other financial assets - (17) Other operating expenses (84,228) (86,557) IFRS EBITDA 155,299 196,012 Depreciation (71,251) (77,767) Depreciation (right-of-use assets) - (13,574) Amortization of intangible assets (47,542) (59,321) Results from operating activities 36,506 45,350 Finance income 5,178 4,717 Finance costs (52,757) (64,923) Net finance costs (47,579) (60,206) Profit/(loss) before tax (11,073) (14,856) Income tax (expenses)/benefit 1,240 (4,810) Minority share Profit/(Loss) for the period (9,833) (19,666)
Currency translation differences (2,183) 1,324 Other comprehensive income (loss) for the period (2,183) 1,324 Total comprehensive income (loss) for the period (12,016) (18,342)
(Loss)/profit attributable to: Owners of the Company (12,016) (22,238) Non-controlling interests 2,183 2,572 (Loss)/profit for the period (9,833) (19,666)
Total comprehensive (loss)/income attributable to: Owners of the Company (14,199) (20,914) Non-controlling interests 2,183 2,572 Total comprehensive (loss)/income for the period (12,016) (18,342)
25 Statement of financial position
in €000 9M 2018 9M 2019 Assets Property, plant and equipment 394,467 416,700 Goodwill 764,285 765,276 Intangible assets 307,333 296,798 Investment property 349 297 Right-of-use assets - 108,101 Loans to related parties 30,000 - Other financial assets 9,738 7,526 Non current prepayments 172 134 Contract assets 4,649 5,598 Deferred costs 3,945 5,538 Deferred tax assets 9,210 3,757 Non-current assets 1,524,148 1,609,725
Inventories 24,615 21,508 Trade and other receivables 147,626 149,001 Short term loans receivables and deposits 4,837 7,681 Prepayments 35,424 32,842 Contract assets 16,102 23,009 Income tax receivables 7,417 8,445 Cash and cash equivalents 58,305 262,356 Current assets 294,326 504,842 Total assets 1,818,474 2,114,567
26 Statement of financial position - continued
in €000 9M 2018 9M 2019 Equity Issued and fully paid share capital 125 125 Share premium 337,557 352,557 Capital reserves 19,636 54,468 Translation reserves (16,209) (13,718) Accumulated losses (deficit) (260,636) (368,358) Equity attributable to owners of the Company 80,473 25,074 Non-controlling interests 10,498 9,530 Total equity 90,971 34,604
Liabilities Loans and borrowings 57,404 71,403 Other financial liabilities 1,332,807 1,637,161 Long term liabilities 253 3,510 Long term provisions 23,005 21,512 Deferred income 4,437 3,621 Contract liabilities 2,064 1,877 Lease liabilities 970 91,266 Deferred tax liabilities 34,236 27,539 Employee benefits 596 618 Non-current liabilities 1,455,772 1,858,507
Trade and other payables 242,904 150,455 Current tax liabilities 7,082 8,698 Loans and borrowings 3,172 27,801 Deferred income 7,454 3,994 Contract liabilities 9,309 10,664 Lease liabilities 1,810 19,844 Current liabilities 271,731 221,456 Total liabilities 1,727,503 2,079,963 Total equity and liabilities 1,818,474 2,114,567
27 Consolidated statement of cash flows
in €000 9M 2018 9M 2019 in €000 9M 2018 9M 2019
Cash flows from operating activities Cash flows from investing activities (Loss)/profit for the period (9,833) (19,666) Adjustments for: Acquisition of property, plant and equipment (93,794) (89,637) Depreciation 71,251 91,341 Acquisition of intangible assets (45,764) (51,245) Amortization 47,542 59,321 Acquisition of subsidiaries, net of cash acquired (132,651) (52,769) Impairment of trade and other receivables 6,464 4,819 207,756 (1,969) Impairment of contract assets 493 571 Short term loans receivable and deposits inflows Impairment of other financial assets - 17 Change in other non-current financial assets 1,856 30,000 Impairment of subscriber costs 991 - Other (outflows)/inflows - 389 Impairment of property, plant and equipment 904 - Net cash (used in)/provided by investing activities (62,597) (165,231) Impairment of inventories - 626 Income tax (benefit)/expense (1,240) 4,810 Long term provisions (402) (1,183) Cash flows from financing activities Share based payment 19,635 21,659 Proceeds from share premium - 15,000 Gain on sale of subsidiary (7,654) - Proceeds from bond issue - 757,000 Net finance cost 47,579 60,206 Repayment of bond - (450,000) Operating cash flows before WC changes 175,730 222,521 Proceeds from borrowings 164,000 216,920 Repayment of borrowings (189,040) (190,834) Changes in working capital: Trade and other receivables (5,535) 11,243 Transaction costs related to loans and borrowings - (6,373) Deferred revenue (5,714) (3,527) Acquisition of non-controlling interest (3,799) (1,095) Deferred cost (2,047) (1,153) Repayment from lease liabilities (4,471) (15,754) Contract assets (9,819) (12,104) Dividends paid (1,470) (51,764) Contract liabilities 3,580 3,034 (34,780) 273,100 Employee benefits (43) (13) Net cash (used in)/provided by financing activities Inventories (1,147) 69 Prepayments (5,910) 2,794 Net increase in cash and cash equivalents 25,739 218,925 Trade and other payables 35,188 (41,633) Cash generated from operating activities 184,283 181,231 Cash and cash equivalents at 1 January 32,560 43,430 Interest paid (56,463) (60,946) Effect of movements in exchange rate on cash in hands 6 1 Income tax paid (4,704) (9,229) Net cash from operating activities 123,116 111,056 Cash and cash equivalents at 30 September 58,305 262,356
28