Altice Europe N : France - Q3 2020 M

MANAGEMENT'S DISCUSSION AND ANALYSIS

ALTICE FRANCE

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2020

1

Contents
Basis of Preparation	3
Key Factors Affecting Our Results of Operations	4
Discussion and Analysis of Our Results of Operations	8
Significant Events Affecting Historical Results	8
Revenue	9
Adjusted EBITDA	11
Other items Impacting Profit/(Loss)	12
Liquidity and Capital Resources	14
Other Disclosures	17

2

Basis of Presentation

The discussion and analysis for each of the periods presented is based on the financial information derived from the unaudited consolidated financial statements as of and for the nine month period ended September 30, 2020.

Please refer to the Glossary for a definition of the key financial terms discussed and analysed in this document.

Disclaimers:

The following discussion and analysis is intended to assist in providing an understanding of the Group's financial condition, changes in financial condition and results of operations and should be read together with the consolidated financial statements of Altice France as of and for the nine month period ended September 30, 2020, including the accompanying notes. Some of the information in this discussion and analysis includes forward- looking statements that involve risks and uncertainties.

Unless the context otherwise requires, when used in this section, the terms "we," "our," "Company," the "Group," and "us" refer to the business constituting the Group as of September 30, 2020, even though we may not have owned such business for the entire duration of the periods presented.

The Group applies International Financial Reporting Standards (IFRS) as endorsed in the European Union. Adjusted EBITDA and Capex are not defined in IFRS, they are "non-GAAP measures". Management believes that these measures are useful to readers of Altice France's financial statements as they provide a measure of operating results excluding certain items that we believe are either outside of our recurring operating activities, or items that are non-cash. Excluding such items enables trends in our operating results and cash flow generation to be more easily observable. We use the non-GAAP measures internally to manage and assess the results of our operations, make decisions with respect to investments and allocation of resources, and assess the performance of management personnel. Such performance measures are also the de facto metrics used by investors and other members of the financial community to value other companies operating in our industry, and thus are a basis for comparability between us and our peers. Moreover, our debt covenants are based on Adjusted EBITDA and other associated metrics.

3

Key Factors Affecting Our Results of Operations

Our operations and the operating metrics discussed below have been, and may continue to be, affected by certain key factors as well as certain historical events and actions. The key factors affecting the ordinary course of our business and our results of operations include, among others, network upgrades, competition, acquisitions and integration of acquired businesses, disposals, macro-economic and political risks in the areas where we operate, our pricing and cost structure, churn and the introduction of new products and services, including multi-play services.

Acquisitions and Integration of Businesses

We have from time to time made significant direct and indirect equity investments in, and divestments of, several cable and telecommunication businesses and ancillary service providers in various jurisdictions. Due to the significant nature of certain of these acquisitions, the comparability of our results of operations based on the Historical Consolidated Financial Information may be affected.

Our revenues for the nine month period ended September 30, 2020 increased by 1.5% to €8,009.9 million, from €7,810.5 million for the nine month period ended September 30, 2019. Adjusted EBITDA increased by 1.6% to €3,129.7 million, from €3,080.4 million for the nine month period ended September 30, 2019. The increases in revenues and Adjusted EBITDA were impacted by such acquisitions and disposals. See "-Discussionand Analysis of Our Results of Operations-Ninemonth period ended September 30, 2020 compared to the nine month period ended September 30, 2019-SignificantEvents Affecting Historical Results".

At the core of Altice France's strategy is a return to revenue, profitability and cash flow growth and, as a result, deleveraging. Altice France benefits from a unique asset base which is fully converged, fibre rich, media rich, active across consumers and businesses and holds the number two position in its market with nationwide fixed and mobile coverage. The reinforced operational focus offers significant value creation potential. In parallel, Altice France is advancing with its preparations for the disposal of non-core assets. Key elements of the Altice France's growth and deleveraging strategy include:

• Operational and financial turnaround under the leadership of a new management team;
• Optimizing commercial performance with a particular focus on customer services;
• Continuing to invest in best-in-class infrastructure commensurate with Altice France's market position;
• Monetizing content investments through various pay TV models and growing advertising revenue, and;
• Execution of the non-core asset disposal program, including part of Altice France's mobile tower portfolio

For the nine month period ended September 30, 2020 and 2019, we incurred restructuring and other non-recurring cost and income (respectively) of €127.9 million and €2,686.3 million, which primarily include costs with respect to renegotiations or termination of contractual arrangements, employee redundancies, fees paid to external counsel, capital gain or loss on investing activities and other administrative expenses related to reorganization of existing or newly acquired businesses. In addition, we generally record goodwill relating to such acquisitions. As of September 30, 2020, the goodwill recorded on our balance sheet amounted to €11,045.3 million. Goodwill is subject to impairment reviews in accordance with IFRS and any impairment charge on goodwill would have a negative impact on operating profit/net operating income. For the nine month period ended September 30, 2020, we did not incur any impairment losses.

Multi-Play Strategy

We have implemented a business strategy focused on the provision and expansion of multi-play product offerings, including triple- and quad-play bundles. Customers who elect to subscribe for our multi-play bundles rather than our individual services realize comparative cost savings on their monthly bill. We believe that the enhanced value proposition associated with our bundled services enables us to meet our customers' communication and entertainment requirements while concurrently both increasing customer loyalty and attracting new customers. As a result of our focus on providing subscribers with multi-play bundles, we have experienced an increase in the

4