Corporate Presentation
December 2013
1
Strategy and Operations
2
0
100
200
300
400
500
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
2008 2009 2010 2011 2012
Fo
rth
net
reve
nu
e (
Mill
ion
s)
Ma
rke
t R
eve
nu
e (
Mill
ion
s)
Market revenue evolution
Total Fixed Telco, Mobile and Pay TV market revenue
Forthnet revenue
• In a challenging macroeconomic and competitive environment Forthnet managed to
outperform
4,7%
5,2%
6,4%
7,1% 7,6%
0%
1%
2%
3%
4%
5%
6%
7%
8%
2008 2009 2010 2011 2012
Forthnet value share
+2.9pp
-29%
+16%
Market revenue declined
Forthnet outperformed
Market environment
3
unique households (~19% of total Greek Households) 778k
households with
3Play services 252k
9 months revenues 287m
Shops all over Greece 130
km of fibre optic network 5.8k
20k SMEs and Corporate accounts
Broadband and
Pay TV subscriptions 1.03m
#1 in 3Play market
#1 in PayTV
#2 in Broadband
#1 in LLU
Key figures 9M 2013
4
• 3Play bundles have continued to gain ground over the years
• The share of 3Play bundles has increased by two percentage points since December 2011,
and 10% since autumn 2007
Source: E-COMMUNICATIONS HOUSEHOLD SURVEY, Special Eurobarometer 396, European Commision
• 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
International market trends
5
• 3Play growth boost both Pay TV and Broadband LLU markets
327 285 263 247 231
83 185 223 302
559 410
470 485
549
790
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012 2013(estimation)
Th
ou
sa
nd
s
Pay TV subs per service
Standalone Pay TV 3Play Total Pay TV
83
185 223
302 559
1.917
2.253 2.464
2.689 2.900
0
500
1.000
1.500
2.000
2.500
3.000
3.500
2009 2010 2011 2012 2013(estimation)
Th
ou
sa
nd
s
BB subs per service
Standalone Broadband 3Play Total Broadband
Greek market impact of 3Play
6
• Addresses the needs of Greek Households for quality entertainment and
communication at an affordable price
• Higher ARPU
• Higher Contribution
Profit
• Lower Churn
than 2play (and combo*
products)
Nova 3Play proposition
7
* Fixed voice, Fixed Broadband and
Mobile voice
• Add-ons are customizable to each Household needs
• Offer significant margin uplift
Nova 3Play can
be combined
with Add-ons
VAS
Unlimited
Mobiles
VDSL Price 10€ Price 10€ Price 15€
Price 5€ Price 15€ Price 19,9€
Nova 3Play add-ons
8
Nova operates the most
comprehensive and the first multi-
channel television service in Greece
with:
• 250+ channels
• 14 Sport channels
• 5 Premium movies channels
• 8 High Definition channels
• First 3D channel in Greece
• Total of 360.000+ hours of linear
program per year
• On demand premier movies
• Hundreds hours of live shows
Content / Multichannel offering
9
Both major European soccer events exclusively
until 2015
Increased games share from 2012
Euroleague until 2017. The most acclaimed Basketball organization with the
participation of Greek teams
Βasket League and Volley League until 2016
Wimbledon, Argentinian League
Major Gulf tournaments, Powerboat, extreme sports
UEFA Champions
League/UEFA &
Europa League
Other Top Events
All games of the Greek Soccer League exclusively
on NOVA until 2017 Greek Football
Superleague
Content / Premium sports
10
Established Studio Relationships
Key TV Rights
Comprehensive Coverage of all Major Studios
Targeted Approach for Popular TV Series Broad Portfolio of Thematic Channels
• Selective acquisitions of
the top paytv drama series
• 1st on TV in Greece,
premier right after USA
• Strong performers The
Game of the Thrones,
Mentalist, NCIS, THE
FOLLOWING, Person of
interest, Burn Notice,
Boardwalk Empire
• All series subtitled
• Hollywood premiers first
on NOVA.
• Output deals with majors
including premiers and
selective library titles
Content / Thematic & premium movies
11
Exclusive 3D content
Live TV at any device /
anywhere / anytime
Nova on demand Nova Επίγεια
54,3 72,1
148,5
0
50
100
150
200
2011 2012 9M 2013
Th
ou
sa
nd
s
HD subs take up
Added value services
12
HotBird Satellite Coverage DTH
100% national coverage
Company currently leases 5 HotBird transponders from Eutelsat (4 from 01/01/2014 onwards)
DTT
Network
2 DVB-T channels
Premium Content offering (sport and movies)
79% population coverage
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
Transmission
Facilities
Five 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
Uplink Facility
Infrastructure / Pay TV network
13
Telecom backhaul and international connectivity • C.5,820km 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
• 76% LLU coverage of total active local loops
• 100% population coverage through SAT BB
• ~10% of active loops can be served with own
VDSL infrastructure
• 100G 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
Athens
Sophia
10 GE
20GE
10GE
10GE
10GE
Frankfurt
30 GE
10GE
Infrastructure / Telco network
14
100% Nationwide Coverage
Supported services (Broadband – Pay TV –
Satellite Internet – Swap point)
Technical Assistance Network No of Points No of technicians
EXCLUSIVE 291 468
SWAP 127
Forthnet Call Centre
• Unified Call Centre
• 500 full-time employees equivalent
Customer Service
15
Company promotes its services through more
than 900 points of presence nationwide
• 130 shops
• covering Athens, Thessaloniki and all major
cities (60 in total)
• selling all product & services of Forthnet in
combination with other technology products
and entertainment tickets.
• bill payments
• 350.000+ visitors per month
• 6 retail chain stores, including the large and well
known retailers (plaisio, kotsovolos, mediamarkt,
ilektroniki etc)
• 550 resellers throughout Greece, includes more
than 250 authorized partners / nova technicians)
• Extrernal call centers
Distribution channels
16
Retail Market
2play 3play Telephony TV
Internet, Telephony and TV,
29.9€ / Month
• Nova 3play plus add-ons
• Nova 3play fLLU
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
• FLLU pack
• Sports pack
• Cinema pack
• Start pack
Professional
services for SMEs
Corporate
services
Internet & Telephony
• Forthnet Professional
TV
• Public & Private view
Bundle services
Data services
• MPLS VPN, ILL, Forthnet
Leased Lines
Datacenter services
• Collocation, Dedicated,
Streaming
Fixed Telephony
• Forthnet my link
Intelligence Networks
• Forthnet 800 & Forthnet 801
SMEs & Corporate Market
Cloud services
• Forthnet domain name,
emails, web hosting,
SasS hosting, SSL
Advertising
Advertising on
Pay TV platform
Advertising
Advertising on
Pay TV platform
Wide range product portfolio
17
KPIs and financial
performance
18
• 1M total subscriptions at the end of September – an all time high
339 383 394 403 358
25
100 135 162 252
325
280 257 235 168
715
863 920
962 1.030
-100
100
300
500
700
900
1.100
2009 2010 2011 2012 2013 Q3
Th
ou
sa
nd
s
Forthnet Unique subs in Greece
Standalone Broadband subs 3Play subs Standalone Pay TV subs
Total Households Total subscriptions in Greece
All time
high in Pay
TV subs
(420K)
Growing customer base
19
Subs = subscribers
• Nova 3Play demand accelerated in Q3 13 with record net adds increasing Telecom and
Pay TV customer base
3,6%
13,1%
17,1%
20,3%
32,4%
0%
5%
10%
15%
20%
25%
30%
35%
0
50
100
150
200
250
300
2009 2010 2011 2012 2013 Q3
Thousands
Nova 3Play HH evolution
Nova 3Play Households
Forthnet's Households with Nova 3Play Services (%)
0,6%
2,4%
3,2%
3,8%
5,9%
0%
1%
2%
3%
4%
5%
6%
7%
2009 2010 2011 2012 2013 Q3
Nova 3Play as % of Total Greek HH
3Play customer base evolution
20
• Forthnet’s LLU net additions market share in Q3 13 at 183% and overall LLU market
share at 30.7%
28,3%
28,6%
29,6% 29,7%
30,7%
28%
29%
29%
30%
30%
31%
31%
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Forthnet’s LLU market share
Forthnet LLU market share
4,8
40,7
32,7
21,4
11,9
-0,5
17,1
28,0
7,9
21,8
-5
0
5
10
15
20
25
30
35
40
45
Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Th
ou
sa
nd
s
LLU market vs. Forthnet net adds
Market LLU net adds Forthnet LLU net adds
+2.4pp
Forthnet’s LLU market share
21
• Revenue for 9M 2013 was lower against 9M 2012 mainly impacted by pricing pressure, a result of
the adverse macro environment and strong competition, and by MTRs drop in corporate
• Company’s successful revenue diversification strategy continues (i.e. advertising and SMEs)
237,9
38,0
10,1 6,7
223,2
30,9 12,0 7,1
-30
20
70
120
170
220
270
Telco & Pay TVRetail
TelcoCorporate
Pay TVBusiness
Advertising
Total Retail, Telco business, Pay TV business and Advertising
9M 2012 9M 2013
306,6 287,4
0
50
100
150
200
250
300
350
9M 2012 9M 2013
Total Revenue
In M
illio
ns
In M
illio
ns
Revenue preservation & diversification
22
• The increased Nova 3Play customer base is starting to impact Retail Revenue with Q3
showing the lowest revenue decline for the year so far
76,3 75,6 73,1 73,3
-7,8%
-8,9%
-7,3%
-3,6%
-10%
-9%
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
0
10
20
30
40
50
60
70
80
90
Q4 2012 Q1 2013 Q2 2013 Q3 2013
Mil
lio
ns
Retail revenue change y-o-y
Revenue Total retail Total Retail revenue y-o-y change
Revenue trends in retail segment
23
11,4
9,7
4
5
6
7
8
9
10
11
12
9M 2012 9M 2013
Milli
on
s
Advertising and promotion
32,6
30,3
20
22
24
26
28
30
32
34
9M 2012 9M 2013
Mil
lio
ns
Payroll and related costs
44,3
42,9
30
32
34
36
38
40
42
44
46
9M 2012 9M 2013
Milli
on
s
Sundry expenses
• The company is continuously optimizing its cost structure (i.e. 10,5% payroll cost of
total revenue). Furthermore, a reduction in the cost of transmission is expected from
2014 due to legacy Pay TV decoders swap.
Cost optimization
24
• Increased customer acquisition, pricing pressure as was as the cost of swapping previous
generation PayTV decoders, lead to a decrease in EBITDA compared to 9M 2012
In M
illio
ns
In M
illio
ns
* One-off and Non cash adjustments
56,3 50,0
18,4% 17,5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
10
20
30
40
50
60
9M 2012 9M 2013
Adjusted EBITDA*
Adjusted EBITDA* Adjusted EBITDA margin
42,8 41,3
0
5
10
15
20
25
30
35
40
45
9M 2012 9M 2013
Reported EBITDA
Operational profitability
25
Recent Developments
• Successful 3play launch
• Continued cost optimization
• Sport rights expansion with focus on local content – Super League up to 2017
– Euroleague up to 2017
– Basket League up to 2016
– Volley League up to 2016
• Replacements of older generation of decoders
Next Steps
• Capital increase
• Continue 3play growth
• Innovation (novago, Cloud, HotSpots, Nova 3Play SAT etc.)
• Refinancing of existing debt
Highlights
26
• 15 new shares for every 2 existing
• 97,144,575 new shares
• Issue price of 0.30€
• Total amount to be raised up to 29.1m
• Rights Trading Period 10-17 December
• Subscription Period 10-24 December
Capital Increase
27
Thank You for Your
Attention
www.forthnet.gr
28