Proximus Sa · EURONEXT:PROX
Proximus Sa — Investor Presentation (December 2015)
44 slides from Proximus Sa's investor presentation, December 2015
Slide 1: Company Presentation
Company Presentation Investor Relations December 2015
Slide 2: Introduction to Proximus
Introduction to Proximus pro3ssimus
Slide 3: Proximus is a telecommunications company operating in Belgian and international markets
Proximus is a Our high-quality We are investing in We put the customer at We contribute to the telecommunications interconnected fixed and future-proof networks the heart of everything we economic, social and company operating in the mobile networks offer and innovative solutions, do. Our aim is to
Slide 4: We constantly keep people in touch with the world
We constantly keep people in touch with the world so they can live better and work smarter
Slide 5: Company history and milestones
FIRST TO OFFER DIGITAL NEW CEO TV & 3G SERVICES FIT FOR GROWTH 2015 1930 RTT IS BORN Belgacom TV, the first Digital TV AQUISITION REMAINING STAKE IN MOBILE STRATEGY offer on the Belgian market. Belgacom acquires the remaining 25% stake in Proximus from Dominique Leroy appointed Vodafone, enabling a
Slide 6: Transparency declarations
Total number of shares 31 October Number of % % % Number of Number of 2015 shares shares Voting Dividend shares with shares with rights rights voting rights dividend rights Belgian state 180,887,569 53.51 56.18 55.94 180,887,569 180,887,569 Free-float own shares 16,025,313 4.74 0.00 0.42 0 1,371,324
Slide 7: Share information and analyst coverage
Stock quote Currency EUR Market Brussels (EUR) ISIN code BE0003810273 Share information List Large Cap Bloomberg Thomson Stock market Ticker code code Industry Fixed Line Telecommunications First market of Euronext Brussels PROX PROX BB PROX-BT Market Capitalization € 10.6Bio Number of Shares 338,02
Slide 8: Board of Directors and governance
We are currently a limited liability company under public law, governed by the law of 21 March 1991 on autonomous public sector enterprises. For matters not otherwise explicitly regulated, Proximus is governed by Belgian corporate law. The Board of Directors defines the company’s general policy and
Slide 9: Organisation and management
Technology BICS PLC Enterprise Consumer Customer Proximus PLC under Business Unit Business Unit & Operations (International Carrier Services) Belgian Public Law Wholesale Telindus Scarlet NL & LUX Tango STAFF & SUPPORT Corporate Strategy & Finance HR Affairs Transformation CEO Chief Human Chief Tech
Slide 10: Committed employees
With 13,964 committed employees* we : • Have a huge pool of talent, amongst others internal experts in network and IT • Benefit from an extended distribution network (retail points, customer service, customer advisors, …) allowing best in class access for our customers • Can address the professional
Slide 11: Digital economy and Corporate Social Responsibility
• 4 Nov’15 Proximus received the CDP Climate Leadership Award • Proximus member of FTSE4Good Digital economy Corporate Social Responsibility Education • Education on safe use of internet • Give young people the tools to teach the older generation Children educated per year • Supporting technology tr
Slide 12: Our complementary brands meet the demands of a wide range of customers
Our complementary brands meet the demands of a wide range of customers Best quality and service with a No frills offering for customers The Proximus Group telecom Best-in-class international full choice of features – looking for the best prices operator in Luxembourg, wholesale solutions for voice b
Slide 13: Belgian market and competitors
• Cable competitor North: Telenet • Leader in North for Fixed broadband & dTV • Challenger in Mobile • In process of acquiring Base • Challenger in North for Fixed BELGIUM broadband & dTV 11.2 million inhabitants • National leader in Mobile • Cable competitor mainly in Brussels 4.8 million household
Slide 14: Competitive position by segment
• Telenet high focus on Flanders, but national coverage via multiple access technology • Maintains solid position in Telco market. • Telenet challenger for fixed voice and fixed • Market leader for fixed as well as mobile. internet/data • One of challengers on fragmented • In process of acquiring Ba
Slide 15: Market shares of Fixed Internet, TV and Mobile
• Solid market share for Fixed internet, growing YoY • Being a challenger on the TV market share we have grown our market share to 34.7% • Postpaid market share of 47.1%; total Mobile market share of 40.5% Group market shares of Fixed Internet – TV – Mobile Postpaid 44.4% 45,8% 32,4% 34,7% 46,6% 47,
Slide 16: Fit for Growth strategy
Telco Generate Market Revenue & share EBITDA Growth by 2016 Customer Offer best-in- centric leaner class customer organization experience & strengthened by simplify to new brand structurally reduce costs Invest in networks and IT systems, building Cloud, TV Replay, the foundation of Netflix, Eleven
Slide 17: Nation-wide high-quality Fixed and Mobile network
Nation-wide, A successful Proximus = Innovative Sound high-quality convergence strong brand solutions financial Fixed and strategy . position Mobile . network 17
Slide 18: Fixed network and mobile customer experience
A fixed network fit for the right Best true mobile customer customer purpose experience as top priority up-to >1000 Mbps Average download speed on 4G capable device (*) Technology evolution 300 dedicated video grade speed Mbps up-to 100 Mbps Proximus 21.4 Mbps 25% - up-to 40% 70 Mbps Mobistar 17.1 M
Slide 19: Convergent offers and households per x-play
• First, and still only Belgian operator to offer full convergent offers for its customers, combining Fixed with Mobile • Upselling of services lead to a continued improvement of the Proximus customer mix , with growing number of 3- Play and 4-Play customers CBU Households per x-play Q3’15 Household
Slide 20: Revenue per household and churn
Quality of customer mix improving as Average Revenue per Household goes up, while churn levels are lower. 55.3% of Households/Small Offices combine Higher revenue per household, for 4-Play Packs at low annualized full- Fixed and Mobile all x- Plays (ARPH) churn rate 116.9 € 117.2 € 19% 4-Play 84.6 €
Slide 21: Fixed-mobile convergence beyond packaging
Fixed-Mobile convergence is more than packaging of products: Mobile coverage extender Cloud storage Security • €5/month • 10 GB free for internet customers • €5/month (€25/month for Business) • 100 GB €2.95/month Guaranteeing quality cell • 1 TB €9.95/month • Norton security (antivirus, parental pho
Slide 22: Our strength: Proximus strong brand
Our strength 3- Proximus = strong brand Fixed & ICT Reliability and Trust” 1930 1987 2015 Mobile “ Quality and Innovation” 22
Slide 23: Innovation milestones
Catch-up TV Consumer WiFi hotspot in Belgium Netflix directly on TV (partnership with FON) settop box Commercial offer for “Internet of Things” Convergent packs via new LoRa™ (fixed + mobile) All IP network Mobile app to track usage (MyProximus) EAP-SIM Upgrading fixed network Digital TV in Belgium
Slide 24: Net debt evolution YTD September 2015
Net debt evolution YTD Sept’ 15 (in m€) Net debt/EBITDA Net Debt Non Net sale of December controlling treasury Net Debt Sep 2014 FCF Dividends interests shares Other 2015 FCF YTD September 2015 • Solid credit ratings: • Standard & Poor’s: A/A-1/Stable 522 -328 • Moody’s: A1/P-1/Stable -36 19 -21 -1,
Slide 25: Debt maturity schedule
Debt maturity schedule • Proximus took the opportunity to tap the bonds markets, on 1 Oct’ 15 (in m€) to take advantage of the very attractive interest rate environment and improving its debt maturity schedule. Institutional Eurobonds Ұ private placement • Proximus successfully issued € 500 m Senior
Slide 26: EMTN bonds overview and liquidity
Overview EMTN bonds: Weighted average yield Liquidity at 30 October 2015:: Amount Tenor in in Maturity Coupon ISIN m€ years • Cash and cash equivalents: € 935 m • EMTN Programme: 3.500m (2.430m outstanding) 675 10 23 Nov 2016 4.375% BE0932180103 • Committed credit line (bilaterals/club/syndicate): €
Slide 27: Shareholder return policy
Proximus intends to pay out a stable yearly dividend of EUR 1.50 per share (interim dividend of EUR 0.50 and ordinary dividend of EUR 1.00) over the year 2015 and 2016, provided the Group’s financial performance is in line with current expectations. Dividend per share (over the results of the year)
Slide 28: Assets, strategy, growth and sound financials
Assets Strategy Growth Sound financial • Offering customers the best convergent networks • Good execution on Fit-for-growth strategy, Provide excellent • • Strong market positions Growing customer base , good position • Our extended distribution quality and service to the ARPU trends, increasing dat
Slide 29: Financials YTD September 2015
Financials YTD September 2015 pro3ssimus
Slide 30: Reported to underlying figures
In order to allow like for like comparison, Proximus provides a clear view on the operational-driven trends of the business by isolating revenues and cost that are unusual or not directly related to Proximus’ business operations, and which had a significant impact on the year-on-year variance on the
Slide 31: YTD September 2015 key figures
€ 4,493 m € 522 m 13,964 +3.1% YoY FTE’s Underlying Group REVENUE Free cash flow € 1,320m € 698 m +3.8% YoY Underlying Group EBITDA Capex 31
Slide 32: Core revenue by segment and product group
YTD September ‘15 Core revenue up +2.7% Per business segment 49 4,493 Consumer: + 3.7% YoY 22 -15 78 2 • Rising revenue from Fixed & Mobile • Mobile service revenue, +1.5% YoY 4,357 • TV revenue, +15.6% YoY +2.7% • Firm 3- and 4-Play revenue growth driven by larger base and higher ARPH +3.1% Underly
Slide 33: Underlying Group EBITDA by segment
Underlying Group EBITDA totaled €1, 320 m, a €48m or 3.8% improvement YoY. • Proximus’ Core business, up 2.1% YOY and sequentially improving from the prior two quarters. Higher Direct Margin posted in the Consumer and Business segment, partly offset by higher expenses (HR and non-HR costs), includin
Slide 34: Net income YTD September 2015
YTD September ’15 Net income (Group share) totaled € 343m. The decrease versus the same period of 2014 is for a large part explained by recorded incidentals in 2014 and 2015*, higher depreciation and amortization due to higher asset base and higher finance cost following a partial bond buyback. This
Slide 35: Capex 2015
Capex 2015 in €m 698 623 75 198 200 623 Spectrum Without Spectrum Q3'14 Q3'15 YTD Sep '14 YTD Sep '15 1,200 18% Capex in m€ and as 16.7% ~ 900m 17% % of Underlying 16% 1,100 14.3% EUR 13.9% excl. 15% Revenue Spectrum 14% 13% 1,000 16 12% 75 11% Spectrum 900 12 0 10% 09% 08% without 800 07% 978 06% S
Slide 36: From EBITDA to FCF
YTD (in m€) 90 -76 The positive impact from the 48 -72 629 -140 higher underlying EBITDA and 42 522 lower income tax payments (mainly a timing impact) were more than offset by less cash received from the sale of FCF YTD-SEP '14 higher underlying income tax cash paid for cash used for disposals other
Slide 37: Quarterly income statement
in mio € Q114 Q214 Q314 Q414 FY 2014 Q115 Q215 Q315 YTD-SEP Q3 VAR YoY Total Revenues 1,480 1.,631 1,486 1,515 6.122 1,482 1.511 1,509 4,503 1.60% Total OPEX -1,075 -1,072 -1,051 -1,159 -4,358 -1,058 -1,055 -1,165 -3,278 10.80% Costs of materials and charges -575 -620 -592 -633 -2.42 -589 -590 -592
Slide 38: Outlook 2015 and interim dividend
Outlook 2015 Revised Outlook 2015 Guidance metrics FY 2014 (31 July 2015) (30 October 2015) Through the good progress on its ‘Fit-for-Growth’ strategy, the Core underlying revenue 4,287 million Around 2% growth Around 2% growth company closed another quarter with solid financial results. Taking into
Slide 39: Forward-looking statements
“This communication might include some forward-looking statements, without limitation, regarding Proximus’ financial or operational results, certain strategic plans or objectives, macro-economic trends, regulation, future market conditions and other risk factors. These forward-looking statements rel
Slide 40: Appendix
Appendix pro3ssimus
Slide 41: Tango, Luxembourg operator
Strengthened by a powerful distribution network with 11 Tango and 8 partner sales outlets, Tango is committed to providing technical assistance to all its Tango is the leading alternative customers through its technical service. Luxembourgish operator offering fixed telephony, mobile and Internet se
Slide 42: Scarlet business model
Business Model From ISP... Scarlet provides essential “no-frills” products and services, using a light cost-structure (mostly on-line Scarlet was initially an internet Service provider, distribution, straightforward & focused organisation, ...) being an important part of the market consolidation in
Slide 43: BICS wholesale telecommunication solutions
Delivers best-in-class wholesale N°1 in Signaling services with access telecommunication solutions to any to > 850 mobile networks communication service provider worldwide € 1.6 bio revenues HQ in Brussels with offices in Bern, Madrid, Dubai, New York, Singapore, Beijing, Accra, Cape Town, Miami, Mo
Slide 44: For further information
For further information Investor relations Nancy Goossens: +32 2 202 82 41 Sarah Franklin: +32 2 202 77 11 Director Investor Relations Investor Relations Manager E-mail: investor.relations@proximus.com Proximus investor relations website : www.proximus.com/en/investors