Slide 1: RBC Capital Markets 2011 Telecom & Media Fixed Income Conference
RBC Capital Markets 2011 Telecom & Media Fixed Income Conference May 18, 2011 Siim Vanaselja EVP & CFO
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in the attached presentation, including, but not limited to, statements relating to our 2011 financial guidance (including revenues, EBITDA, capital intensity, Adjusted EPS and free cash flow), Bell Media’s financial profile, BCE Inc.’s dividend policy, ou
Slide 3: Continued progress in executing on Strategic Imperatives
Continued progress in executing on Strategic Imperatives • CTV acquisition completed April 1 – one full quarter ahead of schedule • Launched Bell Media • Achieved highest Q1 incumbent postpaid market share: 46% • Double-digit wireless EBITDA growth and 40% margin • Solid growth in TV, Internet and H
Slide 4: Q1 2011 financial performance
Q1 2011 financial performance Bell Q1’11 Y/Y • Service revenue growth of 1.8% Revenues – Strong wireless, TV and Internet revenue growth $3,882M 1.0% $3,473 1.8% – Y/Y Business Markets performance impacted by Olympics Service and lower data product and ICT sales Product $409 (6.2%) EBITDA $1,505M 6.
Slide 5: Bell's improving revenue mix
Bell’s improving revenue mix Operating revenue mix — 2011E Pro forma ~80% ~30% ~11% ~27% ~12% ~20% Wireless Bell TV/Fibe Wireline Internet/Data Media Wireline Voice • CTV acquisition further shifting Bell’s revenue mix away from traditional wireline voice Changing revenue mix de-risking Bell’s reven
Slide 6: Solid capital markets execution
Solid capital markets execution • Strong investment grade credit ratings with stable outlooks Strong credit profile • Net debt to Adjusted EBITDA maintained below 2.0x • Preferred shares now treated at 50% equity • Over $2.1B of cash and credit facilities post-CTV closing • Accessed $3B of low-cost
Slide 7: Strong liquidity position and credit profile
Strong liquidity position and credit profile Liquidity position ($M) • Healthy liquidity position – Over $2.1B in cash at end of Q1’11 Cash balance (March 31, 2011) $2,147 – Credit facilities capacity increased to $2B 2011E Free Cash Flow(1) ~$2,200-$2,300 • 2011 normal course financing requirements
Slide 8: Solid capital structure
Solid capital structure Net debt ($M) • Capital structure and financial flexibility underpinned by strong investment grade Bell debentures 7,625 ratings Capital leases & other 2,703 – DBRS: A (low) / Stable Preferred shares (@ 50%) 1,385 – S&P: BBB+ / Stable – Moody’s: Baa1 / Stable A/R securitizati
Slide 9: Increased 2011 financial guidance
Increased 2011 financial guidance(1) February 10 May 12 • Increased revenue, EBITDA and Adjusted Guidance Guidance EPS guidance reflects CTV acquisition Revenue growth 1% to 2% 9% to 11% – Strong CTV earnings accretion of ~$0.07 per share for 2011 EBITDA growth 2% to 4% 8% to 10% • No change to free
Slide 10: Summary
Summary Continued wireless operating strength Highest market share of incumbent postpaid net adds, growing ARPU, and strong smartphone sales achieved while generating 12.2% wireless EBITDA growth and 40% margins Positive wireline operating trends Reduced NAS landline losses, slowing voice revenue er