Bce Inc. · TSX:BCE
Bce — TD Securities Telecom & Media Forum 2012
19 slides from Bce's conference presentation, Jun 14, 2012
Slide 1: TD Securities Telecom & Media Forum
TD Securities Telecom & Media Forum June 14, 2012 George Cope President & CEO
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in the attached presentation, including, but not limited to, statements relating to our 2012 financial guidance (including revenues, EBITDA, capital intensity, Adjusted EPS and free cash flow), BCE Inc.’s (BCE) expected dividend payout ratio, our expected
Slide 3: Continued disciplined focus on our strategic imperatives
Continued disciplined focus on our strategic imperatives 1 2 3 4 5 6 Invest in Accelerate Leverage Expand Achieve a Improve broadband wireless wireline media competitive customer networks & momentum leadership cost service services structure $ Our goal: to be recognized by customers as Canada’s lead
Slide 4: New strategic imperative: Expand Media Leadership
New strategic imperative: Expand Media Leadership • Establishes Bell as both an English and French language media leader • Integrated distribution and broadcast of content across all communication + platforms • Controls rising content costs • Opportunity to offer fully-integrated set of advertising
Slide 5: Astral strengthens Bell's Quebec media position
Astral strengthens Bell’s Quebec media position French language TV(1) Bell 6% 35% Astral 32% 26% 14% 19% Other (1) Aggregate viewership market share of 2+ AMA, FY2011. Astral market share reflects 100% share of joint venture. • Accelerates expansion of media assets, particularly French language cont
Slide 6: Bell's evolving revenue mix
Bell’s evolving revenue mix Operating revenue mix(1) 81% 30% 10% 25% 16% 19% Wireless Satellite/Fibe TV Internet/Data Media Wireline Voice (1) Pro Forma Astral. Astral included in Bell Media segment. 81% of revenues driven by growth segments 6
Slide 7: Expanding Bell's next-generation wireless network
Expanding Bell’s next-generation wireless network Whitehorse Yellowknife Edmonton Vancouver Toronto Québec City Calgary Halifax Ottawa Peterborough Montréal Guelph Kitchener-Waterloo Belleville • LTE speeds of up to 75 Mbps available in 16 Canadian cities Hamilton London • Complemented by HSPA+ netw
Slide 8: Bell regains wireless market share leadership
Bell regains wireless market share leadership Postpaid net additions market share (incumbents) 2007 2011 18% 23% 39% 50% 32% 38% Significant growth for Bell Wireless since 2007 8
Slide 9: Key wireless metrics continue to move in right direction
Key wireless metrics continue to move in right direction Postpaid net adds market share (incumbents) Blended ARPU Q1’12 81k Bell +4.2% $53.84 36.4% Rogers 63k 27.2% $51.68 Telus 36.4% Q1'11 Q1'12 • Maintained strong market share in Q1’12 • 31% data revenue growth in Q1’12 • Smartphone mix at 52%, up
Slide 10: Growth in Fibe TV and triple-play households
Growth in Fibe TV and triple-play households IPTV ready homes • 120K Fibe TV subscribers at end of Q1’12 ~3.3M • Quebec City Fibe launch on March 12th 42% ~2M • IPTV footprint at 2.2M homes • Highest satisfaction rate of any Bell service • 86% of Fibe TV customers taking three products 2011 2012 Fib
Slide 11: NAS line losses stabilizing
NAS line losses stabilizing NAS line losses Q1’12 Y/Y Residential NAS 71k (7k) Residential NAS – Adjusted (1) 67k 2k Business NAS 25k (30k) Business NAS – Adjusted (1) 23k (4k) Total NAS 97k (37k) Total NAS – Adjusted (1) 90k (2k) (1) Excluding contribution of wholesale customers via a 3rd party res
Slide 12: Bell Business Markets
Bell Business Markets Market leader in connectivity and ICT services • Leverage network assets, broadband fibre expansion and service to expand customer relationships and share of wallet • Overall Business Markets performance expected to stabilize in 2012 – Higher data product sales in Q1’12 – Slowi
Slide 13: Significant investments in data hosting
Significant investments in data hosting • Major Bell data centres across Canada • Hypertec acquisition in 2010 • State-of-the-art centre in Gatineau region to open in 2012 • Investment in Q9 networks – 30% equity interest for $180M – Leading hosting provider in Canada with 11 data centrea – Compleme
Slide 14: Summary of key 2012 priorities
Summary of key 2012 priorities Maintain wireless Leverage broadband fibre Improve Business Markets Drive customer service competitiveness and IPTV footprint roll-out performance and cost improvements • Continue to deploy LTE • IPTV footprint expansion • Leverage network and • Invest more than to ~3.
Slide 15: Financial performance & Capital structure
Financial performance & Capital structure
Slide 16: Q1 financial performance
Q1 financial performance Bell Q1’12 Y/Y • Strong revenue and EBITDA contribution from Bell Media and Bell Wireless Revenue $4,333M 11.6% • Wireless EBITDA growth of 13% best in 5 years EBITDA $1,605M 6.6% Margin 37.0% (1.8 pts) • Wireless service margin expande to 42,9% Capital expenditures $680M (3
Slide 17: 2012 financial guidance & outlook
2012 financial guidance & outlook February 9th FY2012 Guidance(1) Expectation Revenue growth 3%-5% On track EBITDA growth 2%-4% On track Capital intensity ≤16% On track Adjusted EPS(2) $3.13-$3.18 On track Free cash flow(3) $2,350M-$2,500M On track Common dividend per share $2.17 $2.17 Dividend payo
Slide 18: Strong balance sheet and credit profile
Strong balance sheet and credit profile Liquidity position ($M) • Strong credit profile Cash balance (03/31/12) 369 – Investment grade ratings with stable outlook – Preserves access to capital markets at attractive 2012E Free Cash Flow(1) ~2,350-2,500 terms Credit Facilities 2,000 (1) Before common
Slide 19: Continuing to execute capital markets strategy
Continuing to execute capital markets strategy Annualized common dividend per share • 49% increase in dividend since Q4’08 • 2012 dividend increased by 5% to $2.17 – Supported by strong underlying Adjusted 49% EPS and free cash flow growth $2.17 – Maintaining payout ratio(1) below mid-point $2.07 $1