2Q 2016 Earnings Results Aug 26, 2016
2Q 2016 Earnings Results
Aug 26, 2016
2
Disclaimer
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3
Index
• Operating Results
• Credit Overview
• Company Outlook
• Appendix
4
Latam EuropeArgentina Mexico Italy Spain Panama Uruguay Colombia Brazil
68%
32%33%
23%
21%
11%
7%
3%2%
0%
69%
31%28%
27%
20%
11%
7%
4%2%
0%
1,231 1,241 1,294 1,357 1,398 1,439 1,459 1,471
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
310.1330.9 350.1 365.5 351.7
372.0 369.5 377.6
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Operating Results
Total Revenue (ARS @ Blue Rate) (1)
(1) Figures reflect Company consolidated revenue plus 50% of HRU (unconsolidated joint venture accounted for under equity method) revenue.
Quarter
Geographic Mix
+2.2%
+3.3%
LTM to Jun-15
LTM
+0.8%
+8.4%
LTM to Jun-16
5
80%
20%
40%
30%
10%
10%
5%
3% 2%
82%
18%
32%
37%
10%
8%
6%
3% 3%
190 199214
229 238252 255 259
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
52.2 55.861.4 59.3 61.2
70.064.3 63.5
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Operating Results
Total Adjusted EBITDA (ARS @ Blue Rate) (1)
(1) Figures reflect Company consolidated adjusted EBITDA plus 50% of HRU (unconsolidated joint venture accounted for under equity method) adjusted EBITDA.(2) Figures reflect contribution to total adjusted EBITDA before Corporate Overhead and excluding Brazil and Carrasco Nobile due to negative adjusted EBITDA.
Quarter
Geographic Mix (2)
-1.2%
+7.1%
Argentina Mexico Italy Spain Panama Uruguay (HRU) Colombia Latam Europe
LTM
+1.6%
+13.1%In line with
guidance of
€63 – 66 mm
LTM to Jun-15 LTM to Jun-16
6
13.4%
9.3%10.4% 9.7%
12.8%14.1%
11.2% 11.1%
20.9%
23.3% 22.9%21.7% 21.8%
22.7% 22.9% 22.1%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin
(%)
Margin - Europe Margin - Latam
11.5% 11.4% 10.9% 10.7% 10.6%11.8% 12.0% 12.3%
20.0%20.9% 21.6% 22.2% 22.4% 22.3% 22.3% 22.4%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin
(%)
Margin - Europe Margin - Latam
16.8% 16.8% 17.5% 16.2% 17.4% 18.8% 17.4% 16.8%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin
(%)
15.4% 16.0% 16.5% 16.9% 17.0% 17.5% 17.5% 17.6%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin
(%)
Operating Results
Total Adjusted EBITDA Margin (ARS @ Blue Rate) (1)
Quarter
-0.6 p.p.
+0.6 p.p.
0.1 p.p.
+0.7 p.p.
LTM
+12.0 p.p.+11.0 p.p. +10.1 p.p.
+11.5 p.p.
(1) Figures reflect Company consolidated adjusted EBITDA plus 50% of HRU (unconsolidated joint venture accounted for under equity method) adjusted EBITDA.
7
16.5 18.423.1 24.5 27.5 27.8 31.7 29.9
21.2% 21.4% 22.1%20.7%
24.3% 23.4%25.1%
22.9%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
65.0 67.3 72.4 82.5 93.5 102.9 111.5 116.8
20.4% 21.0% 20.8% 21.3% 22.2% 22.6% 23.4% 23.9%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
77.586.1
104.4118.5 112.9 118.8 126.1 130.7
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
319.2 320.8347.4
386.5421.9
454.6 476.2 488.4
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
Operating Results
Argentina (ARS @ Blue Rate)
Quarter LTM
+3.6%
+10.3% +2.6%+26.4%
-5.7%+22.0%
-2.2 p.p.+2.2 p.p.
+0.5 p.p.+2.6 p.p.
+4.7%+41.6%
Adjusted EBITDA Adjusted EBITDA
8
87.2 92.1 90.9 92.385.3 86.8 81.2 81.1
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
338.1 341.9 354.4 362.6 360.7 355.3 345.5 334.3
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
19.6
25.9 25.0 24.621.8 22.7 21.8 22.2
22.5%
28.1% 27.5% 26.6%25.5% 26.2% 26.8% 27.4%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
72.3 79.388.4 95.0 97.2 94.0 90.8 88.5
21.4%23.2%
24.9%26.2% 26.9% 26.5% 26.3% 26.5%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
Operating Results
Mexico
-0.1%
-12.1%-3.2%
-7.8%
+1.8%
-9.8%
+0.6 p.p.+0.8 p.p.
+0.2 p.p.+0.3 p.p.
-2.2%-6.8%
Quarter LTM
Adjusted EBITDA Adjusted EBITDA
9
1,2841,398
1,528 1,626 1,683 1,651 1,662 1,697
21.4%23.2%
24.9%26.2% 26.9% 26.4% 26.3% 26.5%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
MX
N m
m
341
448 420 417 398 416 431 452
22.5%
28.1% 27.5% 26.6%25.5% 26.2% 26.8% 27.4%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
MX
N m
m
6,006 6,032 6,135 6,203 6,250 6,247 6,329 6,412
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
MX
N m
m
Revenue
1,515 1,594 1,526 1,567 1,563 1,590 1,609 1,650
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
MX
N m
m
Revenue
Operating Results
Mexico (Local Currency)
Quarter LTM
+2.5%
+5,3%+1.3%
+3.4%
+4.9%
+8.4%
+0.6 p.p.+0.8 p.p.
+0.2 p.p.+0.3 p.p.
+2.1%+4.4%
Adjusted EBITDA Adjusted EBITDA
10
37.6 36.7 37.6 37.339.9 41.1 41.6 42.4
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
150.0 149.9 150.0 149.2 151.5 155.9 159.9 164.9
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
5.43.7
5.7 5.47.5 6.7
8.6 7.4
14.4%
10.1%
15.0% 14.6%
18.9%
16.4%
20.7%
17.5%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
18.1 19.0 19.9 20.2 22.325.3
28.3 30.3
12.1%12.7%
13.3% 13.6%14.7%
16.2%
17.7%18.3%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
Operating Results
Spain
+1.9%
+13.7%
+3.1%
+10.5%
-13.9%
+37.0%
-3.2 p.p.
+2.9 p.p.+0.6 p.p.
+4.7 p.p.
+7.1%+50.0%
Quarter LTM
Adjusted EBITDA Adjusted EBITDA
11
3638
36
2925 26
2321
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Mo
nth
s (#
)
Target = 20
10,059 9,892 9,750 9,652 9,521 9,379 9,228 9,197
41.644.2 44.3 43.5
45.950.0 50.4 50.9
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
AW
Ps (#)
EUR
Avg. Installed AWPs (#) Gross Win / AWP/ Day
7.4
6.26.8 6.8
8.79.7
9.09.6
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
0.40.8
2.0
3.9
1.7
1.1
1.8
5.3
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Operating Results
Spain
Gross Win / AWP / Day AWP Capex – Product Investment
AWP Operating EBITDA (1) AWP Units – Average Age
+6.7%
+41.2%
(1) Figures reflect segment Operating EBITDA before business unit (Spain) overheads.
-8.7%
-27.6%
-0.3%-4.7%
+1.0%+17.0%
12
64.771.7 69.2 67.9 69.9
77.281.7 82.8
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
259.6 263.8 268.1 273.5 278.8 284.2 296.7 311.6
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
8.26.4 5.4 4.8
6.69.9
5.2 6.5
12.7%
8.9%
7.9%7.1%
9.4% 12.9%
6.4%
7.8%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
29.0 28.0 25.7 24.8 23.226.7 26.5 28.3
11.2%10.6%
9.6%9.1%
8.3%
9.4%8.9% 9.1%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
Operating Results
Italy
+1.3%
+21.9%
+5.0%
+13.9%
+25.0%+35.4%
+1.4 p.p.
+0.7 p.p.
+0.2 p.p.
0.0 p.p.
+6.8%+14.1%
Quarter LTM
Adjusted EBITDA Adjusted EBITDA
13
17,191
16,789
17,222
17,721
18,336
17,997 17,934
19,007
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
0.6
1.1 1.11.0
1.1
0.7
1.8
2.7
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
7,3387,159
6,998 7,079
7,507
7,792
7,549
7,810
58.362.2 63.9 61.6 59.0
66.6
74.8 76.9
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
AW
Ps (#)
EUR
Avg. Installed AWPs (#) Gross Win / AWP/ Day
Operating Results
Italy
Gross Win / AWP / Day Gross Win / VLT / Day
AWP Maintenance Capex Network Connected Units (AWPs + VLTs)
1,169
1,2571,280
1,3581,407 1,405 1,414
1,437
197.9
219.1 218.3200.3 192.8
218.8 214.6199.9
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
VLTs (#)EU
R
Avg. Connected VLTs (#) Gross Win / VLT / Day
+6.0%+7.3%
14
Operating Results
Italy – Impact of 2016 Stability Law (1)
26.7
16.5
7.1
17.36.2 - 7.8 22.7 - 24.3
2015 A Impact of 2015Stability Law (2)
Impact of 2016Stability Law (3)
2015 PF Steps toMitigate Impact (4)
2015 PFw/ Mitigation
EUR
mm
Adjusted EBITDA
-10.2
Net Impact
(1) Increase in gaming taxes, effective January 1, 2016, including 4,5% on AWP’s (to 17,5%) and 0,5% on VLT’s (to 5,5%).(2) Figure reflects actual impact on 2015 results.(3) Figure reflects proforma impact (ie. as if 2016 Stability Law was in place on January 1, 2015).(4) Figure reflects expected impact on EBITDA from a reduction in machine payout to 70%, from 74%; previous guidance was a range between €4 – 7.3 mm.
15
23.4 24.8 25.8 26.9 25.4 25.323.3 23.1
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
86.3 88.694.2
100.9 103.0 103.4 100.9 97.0
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
4.5 4.0 3.6 3.82.9
3.8 3.4 3.4
19.2% 16.1% 14.0% 14.2% 11.3% 15.1% 14.8% 14.7%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
14.9 14.6 15.1 15.9 14.3 14.1 13.9 13.5
17.3%16.4% 16.0% 15.8%
13.9% 13.6% 13.8% 13.9%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
Operating Results
Panama
-0.9%
-14.1%-3.9%
-3.9%
-1.2%
-10.5%
-0.1 p.p.
+0.5 p.p.+0.1 p.p.
-1.9 p.p.
-2.9%
-15.1%
Quarter LTM
Adjusted EBITDA Adjusted EBITDA
16
8.3 8.27.5 7.5
7.0 6.7
5.4
6.6
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
31.6 31.4 31.8 31.5 30.2 28.726.6 25.7
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
1.6
2.3
1.6 1.71.9
1.6
0.9
1.6
18.7%
28.2%
21.6% 22.2%
27.0%
24.3%
16.6%
24.1%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
6.7 7.1 7.2 7.2 7.5 6.8 6.1 6.0
21.1%22.7% 22.7% 22.7%
24.8%23.7% 22.9% 23.3%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
Operating Results
Colombia
+22.2%
-12.0%
-3.4%
-18.4%
+77.8%
-5.9%
+7.5 p.p.
+1.9 p.p.
+0.4 p.p.
+0.6 p.p.
-1.6%
-16.7%
Quarter LTM
Adjusted EBITDA Adjusted EBITDA
17
4.6 4.5
7.17.7
4.1
9.0
3.34.3
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
19.8 18.220.2
23.8 23.3
27.924.1
20.7
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
-2.4 -2.4-1.6
-0.7
-3.3-2.9
-6.4
-9.2
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
-0.7 -0.5
0.40.1
-3.2
-0.1
-3.2-2.7
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Operating Results
Uruguay (Carrasco Nobile)
+30.3%
-44.2%
-14.1%
-13.0%
Quarter LTM
Adjusted EBITDA Adjusted EBITDA
18
2.1 1.9
2.42.2 2.4 2.3
2.52.3
34.2%
30.6%
34.3%32.8%
36.3%34.3%
38.0%36.6%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
8.0 7.9 8.2 8.5 8.9 9.3 9.4 9.5
33.6%32.9% 33.0% 33.0%
33.6%34.4%
35.3%36.3%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
EUR
mm
23.7 23.9 24.9 25.8 26.4 27.0 26.5 26.1
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
6.0 6.17.0 6.7 6.6 6.7 6.6 6.3
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Revenue
Operating Results
Uruguay (HRU) – Codere 50% Interest
-4.5%
-6.0%
-1.5%
+1.2%
-8.0%+4.5%
-1.4 p.p.+3.8 p.p.
+1.0 p.p.
+3.3 p.p.
+1.1%+11.8%
Quarter LTM
Adjusted EBITDA Adjusted EBITDA
19
Index
• Operating Results
• Credit Overview
• Company Outlook
• Appendix
20
53.7
-0.1
46.8
26.721.8
45.1
16.1
38.1
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
110.9
78.7102.5
127.3
95.4
140.5
109.8121.1
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Credit Overview
Consolidated Free Cash Flow (ARS @ Blue Rate) (1)
Quarter LTM
+137%
+42.7%+10.3%
-4.9%
(1) Consolidated free cash flow, as defined herein, reflects consolidated adjusted EBITDA less i) corporate income taxes paid, ii) total capital expenditures and iii) increases in net working capital.
Figures in EUR mm, except where noted otherwise.
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Adjusted EBITDA 50.1 53.9 59.0 57.2 58.8 67.7 61.8 61.2
(-) Corporate Income Tax Paid (5.3) (7.1) (5.8) (10.4) (7.9) (8.7) (8.3) (18.6)
(-) Maintenance Capex (14.4) (10.2) (8.1) (14.1) (11.3) (12.4) (20.7) (21.0)
(-) Increase in Net Working Capital 25.9 (27.0) 3.8 (0.1) (13.3) 3.0 (12.4) 17.5
FCF before Growth Capex 56.3 9.5 49.0 32.5 26.3 49.6 20.4 39.1
(-) Growth Capex (2.5) (9.6) (2.1) (5.8) (4.5) (4.5) (4.3) (1.1)
FCF 53.7 (0.1) 46.8 26.7 21.8 45.1 16.1 38.1
2015 20162014
21
10.4
18.6
8.6
(0.1) (0.2) (0.1)
2Q 2015 Argentina Mexico Panama Others 2Q 2016
EUR
mm
5.37.1
5.8
10.4
7.98.7 8.3
18.6
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
25.1 25.2 26.328.7
31.3 32.835.4
43.5
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
Credit Overview
Corporate Income Taxes Paid (ARS @ Blue Rate)
Quarter LTM
+124%
+78.8%
+22.9%
+51.6%
28.7
43.5
12.6
3.90.3 (0.0) (1.9)
2Q 2015 Argentina Mexico Spain Corporate Others 2Q 2016
EUR
mm
22
14.4
10.28.1
14.1
11.3 12.4
20.7 21.0
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
36.1 35.838.5
46.843.7 45.8
58.5
65.4
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
EUR
mm
4.7%
3.1%2.3%
3.9%3.3% 3.4%
5.7% 5.7%
28.7%
18.9%
13.6%
24.7%
19.2% 18.3%
33.5% 34.3%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
% EB
ITDA
% R
even
ue
% Consolidated Revenue
% Consolidated Adjusted EBITDA
3.0% 2.9% 3.0%3.5%
3.2% 3.2%
4.1%4.5%
19.8%18.7% 18.8%
21.2%
19.1% 18.9%
23.8%
26.2%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
% EB
ITDA
% R
even
ue
% Consolidated Revenue
% Consolidated Adjusted EBITDA
Credit Overview
Maintenance Capital Expenditures (ARS @ Blue Rate)
Quarter LTM
+1.4%
+48.9%
+11.8%
+39.7%
23
102
46%
12154%
MXN 223 mm
Top 10 Gaming Halls Rest
156.470%
28.413%
37.917%
MXN 223 mm
Main Floor Areas VIP Areas Rest
223
17
240
Gaming Halls (1) Other Installations (2)
128
58%
95
42%
MXN 223 mm
CodCales ICELA
Gaming Halls – Investment (Top 10)
Investment (MXN mm)
Gaming Halls – Investment by Use
Gaming Halls – Investment by B.U.
(1) In total, 42 of Codere Mexico’s 91 gaming halls will be renovated over the 2016-17 period.(2) Primarily include improvement of the Hipodromo de las Americas racetrack.
Credit Overview
Gaming Halls Renovation (i.e. Catch-up Maintenance Capex)
24
Credit Overview
Change in Net Working Capital
(1) Figure reflects the non-cash portion of income statement exchange gains (losses).(2) Figure reflects the non-cash impact on shareholders equity of exchange rate fluctuations upon consolidation (ie. conversion of local accounts to EUR).(3) Figure reflects variation between management reporting of NWC and accounting (cash flow statement) presentation related to authorized deferred gaming taxes in Spain.(4) Figure reflects €5.5 mm in provisions related to amounts due (i.e. accounts receivable) from VIPs at Carrasco Nobile (included in Impairment Charges).(5) Figure reflects other adjustments to reconcile BS evolution with CFS.(6) Figure reflects total cash impact on cash flow from operation.
-101.1 -99.6
-1.5
5.1
-8.4-9.1
-0.9
3.2 2.96.2
1.5 8.19.3
0.9
-5.5 -0.2
NWC31/12/15
AccountsReceivable
TaxesReceivable
PrepaidExpenses Inventory
AccountsPayable
TaxesPayable
Other ShortTerm
LiabilitiesNWC
30/06/16∆ NWC
1H 2016
Non-CashFX Impact(P&L) (1)
Non-CashFX Impact
(BS) (2)Other
Var. (3)
C.N.Provision
(4)Other Adj.
(5)CFO
Impact (6)
EUR
mm
Balance Sheet Cash Flow Statement
Assets Liabilities
+1.5
25
5.5x
2.5x
Mar-16 Jun-16
Leverage Ratio (Net Debt / LTM Adjusted EBITDA) (2, 3)
0.2 0.4 6.3 6.1
109.5
59.9
16.9
15.8
Mar-16 Jun-16
Senior Debt
HY Debt
OpCo Debt
Capital Leases
3.6 6.9 88.1 82.0
1,287.1
670.5
130.0
194.6
Mar-16 Jun-16
Senior Debt
HY Debt
OpCo Debt
Capital Leases
Credit Overview
Credit Profile (1)
82.1
Total Debt
132.9
116.0
320.8
Mar-16 Jun-16
954.0
1,508.8
- 554.8
+204.8
- 50.8
Total Cash Interest Expense (4)
(1) Figures reflect consolidated accounts, except where noted otherwise.(2) Figures include 50% of HRU debt (€10.1mm), cash (€3.0mm), and LTM Adjusted EBITDA (€9.5mm), as per NSPN Issuance Agreement.(3) Figures reflect ARS @Blue Rate.(4) Figures reflect full year figure based on debt capitalization as at March 31st and June 30th (as applicable).
- 3.0x
Figures in EUR mm, except where noted otherwise.
26
39.5
34.4
2.8 2.7
1.7 0.9
Uruguay (Carrasco) Mexico Colombia Panama Spain Italy
6.9 82.0
327.3
343.3
194.6
1
Senior Private Notes -First Ranking
HY Notes -Second Ranking
HY Notes -Third Ranking
OpCo Debt
Capital Leases
Credit Overview
Debt Capitalization (as at June 30, 2016) (1)
Senior PrivateNotes
HY Notes
OpCo Debt
Corporate Debt
954.0
75.4%
24.6%
Fixed Floating
94.2%
3.6%
2.2%
USD MXP Other
Total Debt
Fixed vs Floating
OpCo Debt
Currency
(1) Figures reflect consolidated accounts.
Figures in EUR mm, except where noted otherwise.
27
41.2
40.9
1
Cash Interest PIK Interest
0.4 6.1
28.8
31.1
15.8
1
Senior Private Notes -First Ranking
HY Notes -Second Ranking
HY Notes -Third Ranking
OpCo Debt
Capital Leases
Credit Overview
Interest Expense (based on Debt Capitalization as at June 30, 2016)
82.1 82.1
76.8%
23.2%
Fixed Floating
95.2%
3.3%1.5%
USD MXP Other
OpCo Debt
Corporate Debt
Total Interest (Consolidated)
Fixed vs Floating
PIK vs Cash Interest
Currency
Figures in EUR mm, except where noted otherwise.
28
Credit Overview
Capital Structure (as at June 30, 2016) (1)
Figures in EUR mm, except where noted otherwise.
(1) Figures reflect consolidated accounts for restructuring transaction and based on exchange rates as at June 30, 2016.(2) Interest rate reflects blended interest rate for all OpCo debt as at June 30, 2016.(3) Libor rate reflects the 1% floor, as established in the NSPNs Issuance Agreement; Libor on June 30, 2016 was below 1%.(4) Figure reflects LTM consolidated figure through June 30, 2016 (ARS @ Blue rate).(5) Maintenance covenant: Net Debt / EBITDA of 6.0x (as per NSPNs Issuance Agreement).(6) Figure reflects proforma interest expense based on financial debt and interest rates as at June 30, 2016; includes 50% of HRU profoma interest expense.(7) Figure reflects LTM Total Adjusted EBITDA divided by proforma total interest expense.
Interest Rate
Amount Spread / Coupon
O/S Leverage Libor Cash PIK Total Maturity Comments
OpCo Debt (2) 82.0 - - - 7.4% Various 39.5 mm in Uruguay and 34.4 mm in Mexico
OpCo Capital Leases (2) 6.9 - - - 5.2% Various -
OpCo Debt 88.9 0.36 x
NSPNs (3) 194.6 1.00% 7.00% - 8.00% Apr-21 USD 218.9 mm par value; callable @ par
Sub-Total 283.5 1.14 x
2nd Lien Notes 343.3 - 5.50% 3.50% 9.00% Jun-21 USD 383.1 mm par value; callable 102 / 102 / 101 / 100
Sub-Total 626.8 2.51 x
3rd Lien Notes 327.3 - 0.00% 9.00% 9.00% Jun-21 USD 355.8 mm par value; callable 102 / 102 / 101 / 100
Sub-Total 954.0 3.82 x
Total Debt 954.0 - - - 8.6% -
(-) Cash -320.8 - - - - -
Net Debt 633.2 2.54 x
(+) 50% of HRU Net Debt 7.2
Total Net Debt 640.4 2.47 x
LTM Total Adjusted EBITDA (4) 249.5
(+) 50% of HRU LTM EBITDA 9.5
LTM Total Adjusted EBITDA (5) 259.0
CoveragePF Total Interest Expense (6) 82.5
EBITDA / Interest Expense (7) 3.14 x
29
Index
• Operating Results
• Credit Overview
• Company Outlook
• Appendix
30
Exchange Rates versus EUR (avg.)
Company Outlook
3Q 2016 EBITDA Guidance (1)
(1) Total adjusted EBITDA figures include 50% of HRU.(2) Figures reflect change versus period ARS @ Blue Rates.
3Q 2016 3Q 2015 2Q 2016
ARS 17.00 1.1% (2) 5.8%
MXP 20.72 12.8% 1.8%
USD 1.12 0.5% -0.6%
Chg. versus
Total Adjusted EBITDA:
€65 – 68 mm
31
Index
• Operating Results
• Credit Overview
• Company Outlook
• Appendix
32
19.76
16.75
13.5814.99
17.91
10.66 10.419.48 10.14 10.54
14.21
16.76 16.64
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
@Blue Rate
@Offical Rate
16.97
17.89
16.40
17.52
19.13 18.88
19.64
20.60
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
1.261.21
1.081.12 1.12 1.09
1.14 1.11
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
2,552
2,9042,772
2,892
3,498 3,429 3,4413,238
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Appendix
Exchange Rate Evolution (End of Period)
EUR / ARS EUR / MXN
EUR / USD EUR / COP
-0.7%
+11.0%
+4.9 %
+17.6%
-2.6%
-0.9%
-5.9%
+12.0%
33
17.8417.12
14.8414.14
16.81 16.29
10.98 10.619.77 9.94 10.33
11.27
16.04 16.07
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
@Blue Rate
@Offical Rate
17.37 17.2916.78 16.98
18.37 18.32
19.8320.36
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
1.321.25
1.12 1.11 1.11 1.09 1.10 1.13
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
2,5292,714 2,770 2,764
3,299 3,3513,581
3,370
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Appendix
Exchange Rate Evolution (Period Average)
EUR / ARS EUR / MXN
EUR / USD EUR / COP
+0.2%
+13.6%
+2.7%
+19.9%
+2.7%
+1.8% -5.9%
+21.9%
34
Appendix
Argentine Peso Devaluation (thru June 30, 2016)
On December 17, 2015, the Argentine government lifted currency controls (thereby allowing the ARS to trade freely) which resulted in a 34,7% devaluation against the EUR.
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
EUR
/AR
S (@
Off
icia
l Ra
te)
Year End
(31/12/2015)
34,7% Argentine
Peso Devaluation
(17/12/2015)
+4.5% +15.1%
+18.2%
35
6.587.49 8.15
8.97
10.79 10.53
12.9013.79
14.89
16.59
19.76
16.75
13.5814.99
17.91
14.20
5.84 5.74 6.05 6.50 6.55 7.017.85
9.01
11.03 11.15 10.66 10.419.48 10.14 10.54
14.21
16.76 16.64
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2012 2013 2014 2015 2016
EUR
mm
EUR / ARS @ Blue Rate EUR / ARS @ Official Rate
Appendix
ARS Blue Rate (Argentina)
• In October 2011, in response to the negative macroeconomic situation of Argentina and resultant capital flight, the government introduced foreign exchange (“capital”) controls.
• This weak economic environment eventually led to run away inflation which both reduced Argentine citizen purchasing power anddemand for local savings.
• Due to the capital controls in place, these individuals were unable to move their savings to hard currency safe havens (e.g. USD), at least not at official exchange rates, which led to the emergence of an unofficial foreign currency market (to satisfy this demand to shift savings out of ARS and into, for example, USD).
• The rate at which the USD traded versus the ARS in this unofficial rate was referred to as the USD Blue Rate.
• For multi-national companies with operations in Argentina, the primary channel utilized to upstream cash during this period was through the purchase of Argentine sovereign bonds in ARS followed by, after meeting minimum hold period requirements, the sale of these bonds in USD (incurring a cost approximately equal to the difference between the ARS Official Rate and ARS BlueRate, or a similar alternate effective rate).
• On December 17, 2015, following the election of a new national government in Argentina, the foreign exchange controls were lifted, resulting in a 36% devaluation in the USD/ARS exchange rate.
EUR / ARS Blue Exchange Rate (End of Period)
36
972 1,074 1,1511,284
1,4541,570
1,7361,871
19.7%20.4% 20.5%
21.2%22.1% 22.3%
23.1%23.6%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)AR
S m
m
285 314 341 344
455 431506 479
20.7% 21.4% 22.1%20.5%
24.1%22.3%
25.1%
22.8%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)AR
S m
m
4,935 5,271 5,6026,063
6,5747,036
7,5067,930
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
AR
S m
m
Revenue
1,378 1,465 1,544 1,6751,889 1,927 2,014 2,099
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
AR
S m
m
Revenue
Appendix
Argentina (Local Currency)
Quarter LTM
+4.2%
+25.3% +5.6%+30.7%
+5.3%+39.2%
-2.3 p.p.+2.3 p.p.
+0.5 p.p.+2.4 p.p.
+7.8%+45.7%
Adjusted EBITDA Adjusted EBITDA
37
20.2 19.3 19.1 19.216.5 15.6 15.3 14.8
17.3%16.4% 16.1% 15.9%
13.9% 13.6% 13.7% 13.8%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
USD
mm
5.95.0
4.1 4.23.2
4.1 3.8 3.7
19.2% 16.1% 14.0% 14.2% 11.3% 14.9% 14.8% 14.3%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
USD
mm
30.9 30.929.0 29.9 28.3 27.6
25.7 26.0
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
USD
mm
Revenue
117.0 117.2 118.5 120.6 118.0 114.8 111.5 107.6
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
USD
mm
Revenue
Appendix
Panama (Local Currency)
Quarter LTM
+1.2%
-13.0%-3.5%
-10.8%
-2.6%
-11.9%
-0.5 p.p.
+0.1 p.p.+0.1 p.p.
-2.1 p.p.
-3.3%
-22.9%
Adjusted EBITDA Adjusted EBITDA
38
17,436 19,049 19,309 19,366 21,583 20,677 19,379 20,408
21.1%22.9% 22.8% 22.8%
24.9%23.8%
22.7% 23.5%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
CO
P m
m
3,938
6,319
4,485 4,6256,154
5,413
3,187
5,654
18.7%
28.4%
21.6% 22.3%
26.9%
24.3%
16.5%
25.3%
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
Ma
rgin (%
)
CO
P m
m
82,782 83,340 84,520 84,845 86,686 86,707 85,250 86,893
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
CO
P m
m
Revenue
21,053 22,28420,764 20,745
22,893 22,30519,307
22,387
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
CO
P m
m
Revenue
Appendix
Colombia (Local Currency)
Quarter LTM
+15.9%
+7.9%
+1.9%
+2.4%
+77.4%
+22.2%
+8.8 p.p.+3.0 p.p.
+0.8 p.p.
+0.7 p.p.
+5.3%
+5.4%
Adjusted EBITDA Adjusted EBITDA
39
-74.2 -75.1-51.5
-24.0
-105.8-92.1
-215.6
-296.9
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
UYU
mm
-20.5-16.2
9.82.8
-102.3
-2.5
-113.7
-78.5
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
UYU
mm
603.0 561.2 602.9701.7 687.8
844.7763.6
687.7
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
UYU
mm
Revenue
143.8 135.0
197.3225.6
129.8
292.0
116.1149.7
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2014 2015 2016
UYU
mm
Revenue
Appendix
Uruguay – Carrasco Nobile (Local Currency)
Quarter LTM
+28.9%
-33.6%
-9.9%
-2.0%
Adjusted EBITDA Adjusted EBITDA
40
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