Proximus Sa · EURONEXT:PROX
Proximus Sa — Investor Presentation (July 2022)
44 slides from Proximus Sa's investor presentation, July 2022
Slide 1: Company presentation
Company presentation Proximus Group Version – July 2022 (2023 version available as from mid-March)
Slide 2: Table of content
Table of content • Why investing in Proximus • Who we are • Our brands & the markets we operate in • Our #inspire2022 strategy • Our international segments • Key figures Full Year 2021 • Contact information
Slide 3: Why investing in Proximus
Why investing in Proximus 03 Sound financial Loyal and Strong position, Valuable growing strategic & attractive assets customer base execution dividend Nationwide high-quality, future- Strong market positions in #Inspire2022; a 3-year Sound financial position proof Mobile & Fixed networks, Residenti
Slide 4: Who we are
Group 4 Who we are
Slide 5: Proximus is an established company, ready for the future
Proximus is an established company, 05 ready for the future 1930 1992 1994 2004 2006 2008 2015 2017 2021 Creation of RTT becomes Creation of Belgacom Strengthening Multi-brand Belgacom Bics acquires Proximus the RTT Belgacom Proximus as enters the stock ICT offer- strategy: rebranding to 100% of acq
Slide 6: Our sense of purpose, our ambition
06 Our sense of purpose We open up a world of digital opportunities, so people live better and work smarter Our ambition Make Proximus the reference operator in Europe to the benefit of our customers, our employees, our shareholders and society
Slide 7: Our Governance structure
Our Governance structure 07 Shareholders Board of Directors General policy, strategy, supervises operational management. Audit & Nomination & Transformation Compliance Remuneration & Innovation Committee Committee Committee CEO & Executive Committee Operational management including, but not limited
Slide 8: Our governance model: Board of Directors
Our governance model: Board of Directors 08 14 Board members • 50% Stefaan De Clerck Martin De Prycker Pierre Demuelenaere Catherine Rutten Karel De Gucht Béatrice de Mahieu Joachim Sonne independent Chairman • 43% female Board members are proposed by the Nomination & Remuneration Committee and appo
Slide 9: Our executive committee
Our executive 09 committee (the leadership squad) Guillaume Boutin CEO Jan Geert Mark Dirk Anne-Sophie Renaud Jim Antonietta Van Acoleyen Standaert Reid Lybaert Lotgering Tilmans Casteele Mastroianni Human Capital Network & Finance Corporate Enterprise Customer Consumer Digital & IT Lead Lead Wholes
Slide 10: As a group, we employ 11,532 FTEs
As a group, we 10 employ 11,532 FTEs Age pyramid 14,090 13,391 o/w 8,797 (Proximus SA – end 2021) 12,931 Proximus SA Increased 11,532 Average efficiency and digitalisation allowed for 13,627 2,634 Female 45YR 12,644 12,143 10,577 Domestic 6,163 headcount Male decrease. 19 22 24 26 28 30 32 34 36 38
Slide 11: Shareholder structure
Shareholder structure 11 Situation 31/12/2021 Total number of shares Free-float Belgian Government Market Capitalization Dividend yield 338,025,135 42% 54% ~€ 5.5Bn ~7.0% Number of shares Number of shares Number of shares % shares % Voting rights % Dividend rights with voting rights with dividend ri
Slide 12: Our brands and the markets we operate in
Group 12 Our brands and the markets we operate in.
Slide 13: Our complementary brands meet the demands of a wide range of customers
Our complementary brands meet 13 the demands of a wide range of customers Domestic International Companies’ No frills Former The Proximus Operates in Best-in-class Fast growing premium offering, Mobile-only Group Benelux. international leader in brand, with Fixed and brand, telecom Specialised in wh
Slide 14: Residential market: national mobile leader, challenger for Fixed
In the Residential market, Proximus is a national mobile 14 leader, and challenger for Fixed Internet in Flanders Belgium PROXIMUS Brands Flanders • Cable player in North & 2/3 of Brussels • Leader in North for Fixed • National player Brussels • • Challenger for Fixed in North Leader for Fixed in So
Slide 15: Our residential unit
Our residential unit 15 Increasing number of customers take Revenue FY’21 of 2,207M€ both Fixed and Mobile products. 61.3% 55.9% 57.8% 2,839K residential customers, under 3 brands:……..……… Q1'20 2020 2021 Average ARPC at 52€ in 2021 Convergent customers Fixed only 996k 961k 80.0 89.4 52 23.0 30.5 882
Slide 16: Business market: solid position in Telco, challenger in IT
In the Business market, Proximus holds a solid position 16 in Telco, and is challenger in a very fragmented IT market Belgium Main telecom competitors: Niche players International players • Maintains solid position in Telco Main IT competitors (fragmented market) market. • Belgian market leader for
Slide 17: Our business unit
Our business unit 17 Revenue FY’21 of 1,862M€ IT products Other 158 Fixed Voice The customers Terminals 78 8% 298 16% we service 4% • Small enterprises IT services 388 • Medium enterprises 21% 447 Fixed Data • Corporates 24% 464 25% Mobile End’21: 435k lines End’21: 1,746k SIM End’21: 706k lines Pos
Slide 18: Growing player in the Wholesale market
Growing player in the Wholesale market, 18 with great potential through open network Fixed B2C MVNO competitors: competitors: • National player, building the open fiber and 5G network of Belgium. • Maintains solid position in wholesale Telco B2B market, mobile backhauling market, Fixed B2B tradition
Slide 19: The International Market
The International Market 19 We operate internationally through Telesign and Bics Fast growing leader in digital identity Key competitors: services to internet properties, digital champions and cloud native businesses and with a growth path in programmable communications. Key competitors: Global lead
Slide 20: Telesign is a Leading Authentication and Digital Identity Player
Telesign is a Leading Authentication and Digital Identity Player 20 Business Global Sticky Blue Strong Excellent Overview Footprint Chip Customer Technological Financial Profile Base Moat Telesign offers solutions 65+ TOP across the full spectrum of end user account security, Countries with 8/10 Com
Slide 21: BICS makes international communications possible
BICS is at the heart of BICS makes international international connectivity, 21 enabling the global mobility of communications possible people, applications and things wherever they are Connecting 5+ billion mobile subscribers FY revenue 999 M€ Providing seamless cloud communications for application
Slide 22: Our #inspire2022 strategy
Our #inspire2022 strategy 22 Build the best Operate like a GROW PROFITABLY Act for a GIGABIT NETWORK “DIGITAL native” through partners GREEN and for Belgium company & ecosystems digital society
Slide 23: High-quality Fixed and Mobile networks
We run our services on high-quality 23 Fixed and Mobile networks Our country-wide copper-based Our best-in-class Mobile network is Fixed network in the process of being upgraded to 5G; in the process being upgraded to Fiber of a network consolidation 82Mbps Differential spectrum package of 285 MHz A
Slide 24: Ambition to extend fiber coverage to 95% of premises by 2032
24 24 MoU signed with consortium of Belgian financial Ambition to partners, I4B as anchor investor +1.7M HP ambition by 2032, on top of existing roll-out extend fiber plans of Proximus, Fiberklaar & Unifiber. coverage to Total Joint Venture investment of approx. € 4Bn Open to onboard new partners to
Slide 25: Rolling out Fiber across Belgium
Rolling out Fiber across Belgium, 25 targeting 22% Fiber coverage by end-2022 > 1 Million HP End-June 2022 Fiber Homes & Businesses passed (‘000) 1031 813 460 153 272 57 2017 2018 2019 2020 2021 H1 2022
Slide 26: Building out 5G coverage for national coverage by end-2024
Building out 5G coverage to 26 achieve national coverage by end-2024 Expanding 5G coverage for a Innovation with development modern, efficient network of 5G use cases The 5G innovation platform, launched in April 2021, allows 99 companies to test and validate their own 5G use cases Indoor coverage –
Slide 27: Digital solutions that facilitate daily life for citizens
Proximus adds value to Belgian society with digital 27 solutions that facilitate the daily life for citizens Smart advertising E-education E-banking E-health Stel je pack samen op maat van elk gezinslid. Web- promo Vanaf € 49,99 /maand gedurende 3 maanden Voor elke nieuwe internetabonnee die voor Fl
Slide 28: Partners and ecosystems offering co-creation to Belgian companies
In a fast-growing digital world, Proximus with its 28 partners and ecosystems, offers co-creation and innovative solutions to Belgian companies Launch of Microsoft & Proximus Ada center of excellence Google combining AI & cybersecurity 5G drones & Cloud solutions Smart innovation with HCL buildings
Slide 29: Track record in doing business with a heart for sustainability
Proximus has track record in doing business with a heart for sustainability 29 Planet Society People • 2016: First Telco worldwide to set • Best 4G deep indoor, 92% coverage • 32 M€ in employee re/up-skilling & SBTi’s & carbon neutral for own and 5G Light available in c. 70 cities 41 training hours/
Slide 30: Clear targets for net zero emissions by 2040
Proximus has clear targets to achieve net zero emissions by 30 2040 and already become truly circular by 2030 ambitions 2016 2019 2025 2030 2040 Carbon Emissions SBTi target set1 100% renewable Fossil fuel free 100% renewable Net Zero Emissions electricity1 management cars energy CO2 emissions in KT
Slide 31: Proximus direct emissions limited to 6% of total
Proximus direct emissions limited to 6% of total 31 Scope 1 Scope 2 6% - 27 Ktons circa 0% - 0 Kton Direct emissions Own indirect emissions from fossil fuel from affiliates electricity usage combustion and refrigerant gases Procurement 79% 459 KTons • Goods & services • Upstream transportation Break
Slide 32: Strong in recycling and refurbishment
Strong in recycling and refurbishment 32 +80,000 smartphones collected in 2021 +845,000 Encourage customers refurbished equipment to collect mobile in 2021 devices and we are launching more and Reduce use of raw more proposals for materials by smartphones leasing and renting equipment from customers
Slide 33: Closing the digital divide through e-education and inclusivity
We close the digital divide by lowering the barriers for 33 entry, focusing on e-education and inclusivity
Slide 34: Key figures FY 2021
34 Key figures FY 2021.
Slide 35: Key financial figures 2021
Key financial figures 2021 35 € 5,578 M €1,807 M € 1,203M FY 2021 Underlying Group revenue Underlying Group Expenses Group CAPEX (excl. Spectrum & +1.8% YoY +3.9% YoY football rights) €3,579 M € 1,772 M € 376 M Underlying Underlying Adjusted Group direct margin Group EBITDA Free Cash flow +0.1% YoY
Slide 36: Growing Domestic customer base
36 Postpaid growing 195 Domestic Net adds Group 48 42 36 44 174 (‘000) customer 2020 2021 2020 2021 2020 2021 base; Total base Group 1.9% YoY + 2.6% YoY + + 9.1% YoY (‘000) to 2,178K to 1,721K to 4,651K * *Incl. acquisition of Mobile Vikings in June’21, 191K
Slide 37: Three quarters of Group revenue is Domestic
37 ¾ of the Group revenue is Domestic topline is mainly 37 Domestic. International generated by Residential & generated € 1.3Bn. Business customers Group revenue FY 2021 Domestic € 5,578M € 4,381M 327 286 999 2,207 1,862 4,381 Domestic BICS TeleSign Intercompany eliminations Residential Business Who
Slide 38: Group direct margin is 64% of revenue
38 The Group direct margin is The operating expenses 38 64% of revenue, totaled € 1.8bn, of which and 75% for Domestic. € 1.2Bn workforce related Group DM 2021 Group Opex 2021 € 3,579M € 1,807M 79 63 227 126 3,286 1,633 Domestic BICS Telesign Intercompany eliminations Domestic BICS TeleSign Intercom
Slide 39: Group EBITDA €1,772M
39 39 Group EBITDA Group Ebitda 2021 1,772M €1,772M, of € which 93% is 102 17 coming from Domestic. 1,654 2021 EBITDA margin at 31.8%. Domestic BICS TeleSign
Slide 40: Proximus invested €1.2Bn in 2021
Proximus invested € 1.2Bn in 2021 40 (excl. spectrum & football rights) Fiber build Mobile network Customer related Digitalization & IT transformation customer experience FTTH/B 4G population coverage Customer journeys Automation & AI boosting Rationalizing IT landscape in 45 cities • outdoor 100% e
Slide 41: Sound financial position and secured long term debt
41 Keeping a sound financial position and securing long term debt 41 2,740M€ 1.5 X >99% of outstanding LT debt Adjusted Net Debt end’21 Net debt ratio at fixed rate refinancing (excl. lease liabilities) Green bond Credit ratings 1.64 % 8 Yr Weighted average Weighted average debt S&P A (negative outl
Slide 42: Guidance metrics and outlook
42 Guidance Outlook Outlook metrics FY 2022 revision Feb’22 July’22 Underlying Domestic revenue Growing Growing excl. Terminals up to 1% YoY by 1%-2% YoY Growing up to 1% Underlying Domestic EBITDA Upper range YoY Growing Underlying Group EBITDA Around -1% YoY up to 1% YoY Capex Close to € 1.3Bn Rei
Slide 43: Attractive shareholder return
Attractive shareholder return 43 Dividend policy Notwithstanding Proximus’ elevated investment needs driven by the Fiber network rollout, it remains committed to an attractive remuneration for its shareholders. Over the result of 2021 an annual gross dividend of € 1.2 per share was returned, in line
Slide 44: Contact Investor Relations
Contact Investor Relations 44 Call: Proximus Investor E-mail: +32 2 202 82 41 Relations website: investor.relations@proximus.com www.proximus.com/en/investors Additional information • Most recent results publications: Quarterly results | Proximus Group • Annual report: Annual reports | Proximus Grou