Slide 1: Capital Markets & Cash Deployment Strategy
Capital Markets & Cash Deployment Strategy Analyst Call December 10, 2010
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in this presentation including, but not limited to, statements relating to our 2010 financial guidance (including revenue, EBITDA, adjusted earnings per share, free cash flow and capital intensity), Bell Canada’s objective of achieving a surplus position i
Slide 3: Raising dividend by 7.7% to $1.97 per share
Raising dividend by 7.7% to $1.97 per share Annualized common dividend per share • Effective for 2011 commencing with Q1’11 dividend payment on April 15 to holders of record on March 15 • Strong track record of consistent and 35% sustainable dividend increases $1.97 – 35% increase since Q4 2008 $1.8
Slide 4: Maintaining strong liquidity position
Maintaining strong liquidity position Bell liquidity position ($M) • Business performance and substantial cash flow generation provide ample flexibility to Cash balance -- Sept. 30, 2010 1,170 support dividend growth objective Q4 Activity • Expected available cash balance(1) at YE’10 (1) Free cash f
Slide 5: Most effective use of surplus cash
Most effective use of surplus cash Bell cash available ($M) • 2011 normal course financing requirements – ~$700M required for maturing debt, capital Cash available -- Dec. 31, 2010 ~1,500 lease repayments, and xwave acquisition 2011 financing requirements • Expected closing of CTV transaction in Q2’
Slide 6: $750M special pension contribution
$750M special pension contribution Bell pension funding forecast (1) ($M) 2009 2010 2011 2012 2013 2014 Regular $521 ~$500 ~$400 ~$400 ~$400 ~$400 Special $500 $750 - - - - Total $1,021 ~$1,250 ~$400 ~$400 ~$400 ~$400 (1) Assumes expected ROA of 10% for 2010 and 7% for 2011 to 2014, a 4.25% discount
Slide 7: 2010 financial guidance update
2010 financial guidance update • On track to meet guidance for revenue growth, EBITDA and capital intensity • Adjusted EPS revised upwards reflecting tax deductibility of special pension payment – Effective tax rate for FY’10 now expected to be ~19%, down from previous expectation of 20% • Free cash