Full Year 2015 Results 8 March 2016 Confidential Disclaimer This - PowerPoint PPT Presentation

Full Year 2015 Results 8 March 2016 Confidential

Disclaimer This Presentation has been prepared by Zegona Communications plc (the “Company” ) in connection with the financial performance of the Company for the year ended 31 December 2015. The estimated financial information contained herein was prepared expressly for use herein and is based on certain assumptions and management’s analysis of information available at the time that this presentation was prepared. No reliance may be placed , for any purposes whatsoever, on the information contained in this Presentation or on its completeness. While the information provided herein is believed to be accurate, no representation or warranty, express or implied, is given by or on behalf of the Company, or any of its directors, partners, officers, employees, advisers or any other persons as to the accuracy, fairness or sufficiency of the information or opinions contained in this presentation and (to the extent permitted by law) no responsibility is accepted by any of them for the accuracy or completeness of such information or for omissions from the presentation or for any other written or oral information transmitted or made available. Accordingly, save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in such information or opinions. The information and opinions provided in this Presentation are provided as of the date of this Presentation and are subject to change. Certain statements in this Presentation are forward-looking statements. The forward- looking statements include statements typically containing the words “intends”, “expects”, “anticipates”, “targets”, “plans”, “estimates” and words of similar import. These forward -looking statements speak only as at the date of this Presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks, uncertainties and assumptions that could cause actual results, performances and achievements of the Company and its subsidiaries to differ. The forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and environments in which the Company may operate in the future and such assumptions may or may not prove to be correct. No statement in this Presentation is intended, nor may it be construed, as a profit forecast. No one undertakes to update or revise such forward-looking statements.

Agenda Summary 1 Zegona strategy 2 Telecable 2015 results 3 Telecable 2016 outlook 4 Shareholder returns 5 1

Summary Robust 2015 performance with accelerating growth momentum into 2016 Zegona continues to see many attractive investment opportunities in European TMT 1 Telecable acquisition performing well, with strong finish to 2015 2 Results fully in line with Zegona pre-acquisition expectations • • Good progress on pre-identified strategic initiatives Accelerating growth expected in 2016 3 • Nearly 2x 2015 revenue growth rate Double digit cash flow growth • Strong cash returns to shareholders 4 4.5p dividend policy for 2016 confirmed • • Incremental capital return potential Significant shareholder value upside potential 5 2

Zegona Strategy Zegona acquired Telecable in August 2015 for € 640m and continues to see many attractive investment opportunities in European TMT 1 Experienced Team with Proven Track Record Differentiated Buy-Fix-Sell Strategy 2  Significant sector expertise  Compelling, investor friendly Buy-Fix-Sell strategy  Extensive real world senior operational and public company  Focus on businesses that require active change and fundamental management experience improvement to realise full value  Executive leadership over last 10 years in businesses that have  Target significant long term growth in shareholder value created $25bn of shareholder value 3 Attractive Market Opportunity 4 Well Positioned to Access Attractive Deals  Targeting acquisitions in £1-3bn EV range  Changing market dynamics in telecommunications and media industry create multiple investment opportunities  Target size in sweet spot between PE and major strategic buyers  Driven by consumer consumption, industry consolidation and  Management reputation and active change strategy drives deal flow convergence  Very disciplined approach as shareholder value No 1 priority  Over 60 European companies of desired scale identified 3

Telecable - Introduction Leading quad play operator in Asturias, North West Spain Telecable is a Strong Regional Champion Spanish Cable Operators by Region  Leading quad-play telecommunications provider in Asturias Asturias Region  High profile local brand  Advanced HFC network updated to latest DOCSIS 3.0 standard, delivering market-leading speeds  Extensive network covering 73% of households in region  Strong, experienced local management team 450k homes passed Market Share Market Position ONO 1 Pay TV 70% Euskaltel / R Cable 142k Consumer customers 1 Broadband 41% No Cable Operator 2 Fixed Line 32% 21k Business customers 4 Mobile 16% Zegona Improvement Actions Attractive Spanish Market Dynamics  Macro economic rebound  Revenue upsides (pricing, mobile, B2B, premium football)  Favourable industry structure  Service enhancements (Network PVR, BB speeds, mobile data)  Early stages of market price repair  Productivity gains (capex, procurement)  Telecable well positioned for future consolidation 4

Telecable 2015 Financial Results Fully in line with pre-acquisition expectations, with continuing growth in Revenue, EBITDA and Cash flow Q4 Full Year € m Growth € m Growth Revenue 34.4 5.0% 134.4 2.7% EBITDA 16.2 3.3% 65.0 3.3% % Revenue 47% 48% Capex 7.3 3.2% 28.9 4.5% % Revenue 21% 22% Cash flow * 8.9 3.3% 36.1 2.4% % Revenue 26% 27% Note: Telecable results are unaudited and pro forma for the period from 1 January 2014 to 31 December 2015. A reconciliation between Telecable’s unaudited 2015 Pro Forma results and Zegona’s 2015 consolidated financial statements is provided in Appendix C of Zegona’s Earnings Release. * Cash flow is EBITDA minus Capex 5

Telecable 2015 Operational Results Product and service enhancements driving KPI improvements 2014 2015 Growth Consumer * Revenue ( € m) 97.7 99.0 1.3%  Stable, high value customer base Customers (AOP K) 143 144 0.2%  Continuing growth in RGUs RGUs (K) 454 456 0.4%  ARPU growing & will accelerate in 2016 with recent price increase ARPU ( € /mth) 56.8 57.4 1.1% Consumer Mobile Revenue ( € m) 22.3 26.1 17.0%  Double digit growth with further upside given low market share Post paid lines (AOP k) 87.5 101.6 16.1%  Converged customers have lower churn/higher value Postpaid ARPU ( € /mth) 20.9 21.2 1.6% Business ** Revenue ( € m) 32.8 35.1 7.0%  Impressive Business customer and revenue growth Customers (AOP K) 19.1 20.1 5.3%  Growing RGUs per customer RGUs (K) 82.9 91.5 10.3%  Significant further potential given low market share ARPU ( € /mth) 143 145 1.6% Note: Telecable results are unaudited and pro forma for the period from 1 January 2014 to 31 December 2015 6 * Includes Consumer Mobile ** Includes Business Mobile

Significant Progress on Key Strategic Initiatives Enhance Mobile Experience Grow Consumer Revenues 2 1  Doubled mobile data allowances  Doubled minimum BB speed to 200Mbps, launched 500Mbps  Continued Wifisfera rollout, 60% traffic increase in 2015  4% Q4 YoY ARPU growth, now at record high of € 59/mth  20K contract mobile line net additions (+18%) **  Football customers increased by 19K to 31K  Mobile penetration increased to 51%  STB penetration now at record 33% * and growing rapidly  Quadplay penetration now at record 35%  Increased consumer prices by € 2/mth in January Renewed Focus on Business Clients Improve Capex Productivity 3 4  Focus on sales distribution, network maintenance and home install  7% revenue growth in 2015  Reinvest savings into revenue growth initiatives, e.g. STBs  Customers and ARPU both grew 5% YoY in Q4. Record highs  Flat €m’s Capex, but % revenue expected to decline from 22%  Comprehensive management and product changes Improving Industry and Economic Trends  Industry price repair underway . … all major industry players increased prices during 2015 and have announced additional 2016 price rises  Further recovery of Spanish economy . … 2.7% GDP growth forecast vs 1.8% Euro area average *** * STB penetration is defined as the number of Consumer customers with Telecable’s TV Set-Top Box divided by the total Consumer customer base ** Includes Consumer and Business mobile lines. Consumer mobile lines grew 16k (+17%) 7 *** European Commission GDP growth forecasts for 2016

Telecable 2016 Outlook - Accelerating Growth Expected Revenue growing circa twice as fast as 2015 with double digit cash flow growth Backdrop Accelerating Revenue Growth Targeting mid single digit revenue growth in 2016  Strong finish to 2015  Significant progress on key Mid single digit strategic initiatives 2.7% 2015 2016  Industry price repair underway Strong Cash Flow Generation  Further recovery of Spanish Targeting double digit cash flow * growth in 2016 economy Double digit  Moody’s recent B1 rating 2.4% 2015 2016 Note: Telecable 2016 Outlook based on Telecable’s Pro Forma results 8 * Cash flow is EBITDA minus Capex