Proximus Sa · EURONEXT:PROX
Proximus Sa — Investor Presentation (September 2024)
55 slides from Proximus Sa's investor presentation, September 2024
Slide 1: Company presentation Proximus Group September 2024
Company presentation Proximus Group September 2024
Slide 2: Content
Content • Reasons to invest in Proximus Group • Introduction to the company • Key achievement in the markets we operate in • Financial results - summary • Sustainability • FY2023 – Key figures • Appendix
Slide 3: Reasons to invest in Proximus Group
Reasons to invest in Proximus Group Robust Domestic Telco & IT International Track record of strong Investing in growth, operations returned to diversification in strongly execution of 3YR strategy maintaining sound financial EBITDA growth growing markets bold2025 position & attractive dividend Dome
Slide 4: Introduction to Proximus Group
Introduction to Proximus Group
Slide 5: Proximus is an established company
Proximus is an established company Largest Telco in Belgium and leading positions in global Digital Communication market 1930 1992 1994 2004 2006 2008 2015 2017 2021 2022 2024 Creation of RTT becomes Creation of Belgacom enters Strengthening ICT Multi-brand Belgacom Bics acquires Proximus Proximus a
Slide 6: Proximus Group Key Figures FY2023
Proximus Group Key Figures FY2023 Group underlying revenue Free Cash Flow (adjusted1) Proximus is listed on the Brussels Euronext stock exchange: € 6,042M € 61M - - In the BEL MID Index In the BEL ESG Index CapEx2 Group underlying EBITDA € 2.3Bn Market Capitalization 1,757M 1,325M (September 2024) €
Slide 7: Proximus diversifying outside of the domestic Telecom & IT market
Proximus diversifying outside of the domestic Telecom & IT market ~30% of its Group revenue to come from International Domestic market International Telco & IT Digital communications Acquired on May 8, 2024 Key Figures FY 20231 Pro-Forma Revenue c. 4.7 B€ c. 1.9 B€ DM c. 3.5 B€ c. 480 M€ EBITDA c. 1
Slide 8: Our complementary brands meet the demands of a wide range of customers
Our complementary brands meet the demands of a wide range of customers Domestic International Companies’ premium brand, with high service levels and focus largely on convergent family offers No frills offering, Fixed and Mobile, for customers looking for the best prices Key global Fast growing Indus
Slide 9: In January 2023, Proximus launched its 3-year strategy: bold2025
We deliver In January 2023, great value for through exceptional Proximus launched its our stakeholders strengths 3-year strategy: bold2025 Act for an inclusive society & Roll out #1 gigabit network be sustainable in everything we do for Belgium Sense of purpose: “Boldly building a connected world th
Slide 10: Key achievement in the markets we operate in
Key achievement in the markets we operate in.
Slide 11: Domestically, Proximus is the largest telco operator in Belgium
Domestically, Proximus is the largest telco operator in Belgium, providing services to the residential, business and wholesale market Fixed Internet 2,267K Proximus is a FY2023 revenue of 4,665M€ +2.3% provider of digital Residential and Business Digital TV 1,674K services and communication Business
Slide 12: Proximus owns a nation-wide Fixed network, being upgraded to Fiber
Proximus owns a nation-wide Fixed network, being upgraded to Fiber Scaling Fiber footprint drives strong customer growth 164 1983k Cities and municipalities Fiber Homes & with Fiber works ongoing Businesses passed 38% 481k Fiber Coverage Activated Fiber lines; in the Street +49% YoY Proximus Fiberkl
Slide 13: In June'24 we announced 2 significant strategic steps
In June’24 we announced 2 significant strategic steps securing ownership of a highly utilized Fiber network MoU signed with Wyre/Telenet Acquiring 100% in Fiberklaar Accelerated & extended roll-out, achieving ~81% Ensures capture of full value of Fiberklaar network fiber coverage in Flanders with hi
Slide 14: MoU with Wyre/Telenet across ~2.0M fiber HP
Proximus has signed an MoU with Wyre/Telenet across ~2.0M fiber HP and have access to Wyre's Coax network Intended collaboration structure as per announced MoU1 Outside MoU Collaboration zone in fiber deployment and network usage collaboration zone ~2.7M HP ~0.9M HP Dense: ~0.9M Medium dense: ~2.0M
Slide 15: 5G coverage of >40% end-2023
5G coverage of >40% end-2023 General recognition for our mobile network quality Network upgrade Best Mobile network Network consolidation • ~50% of active Proximus sites • >40% 5G indoor coverage end • Leveraging the largest Belgian moved to Nokia 2023; 100% in the 2025-2026 spectrum portfolio to de
Slide 16: In the Residential market
In the Residential market, Belgium • Cable player in North & 2/3 of Brussels PROXIMUS • Leader in North for Fixed Brands Flanders • Preparing to launch in South Brussels c.11.5 M • National player inhabitants • • Challenger for Fixed in North Leader for Fixed in South c.5.0 M • National leader for M
Slide 17: Proximus residential unit grew 2023 revenue by 6.0%
Proximus residential unit grew 2023 revenue by 6.0% Increasing number of +2.4% +6.0% Convergent customers +2.6% Revenue 2,396 2,207 2,261 1,048 1,112 FY’23 of 2,152 933 996 +5.6% H1’24 2,396M€ YoY 1,145 H1’24 +6.2% 2020 2021 2022 2023 2020 2021 2022 2023 55.4€ average ARPC in 2023; 2,841K Mobile Pos
Slide 18: Residential revenue growth driven by Fiber, pricing & convergence
Residential revenue growth driven by success of Fiber, pricing & convergent strategy, premium content Fiber commercialization Pricing strategy >€6 ARPC uplift fiber vs. copper2 Indexation Jan ’24 for ~ 4% Almost 2M HP and 481k HA in H1 ‘24 Indexation July ’23 for ~4% Maintaining high migration rate
Slide 19: In the Business market, Proximus holds a solid position in Telco
In the Business market, Proximus holds a solid position in Telco, and is challenger to leader in a very fragmented IT market Main telco Belgium competitors Niche players International players • Maintains solid position in Telco market. Main IT competitors (fragmented market) • Belgian market leader
Slide 20: Business unit continued its growth trajectory
Business unit continued its growth trajectory, with revenue up by 3% for FY’23, and sustaining in H1’24 Revenue FY’23 of 1,953M€ Telco IT Products YoY IT Services Others H1’24 The B2B customers +1.7% +3.1% +4.0% we service: ≈ 1,894 1,953 1,864 1,862 +9.2% • Small enterprises 179 158 201 229 IT Produ
Slide 21: Enabling players in the Wholesale market
Enabling players in the Wholesale market, thanks to the open best network in Belgium Fixed B2C MVNO competitors: competitors: • The only national fix-mobile player, building the open fiber and 5G network of reference for Belgium. • Solid position in the Wholesale telco B2B market, mobile backhauling
Slide 22: Internationally, Proximus is one of the leading companies in global communications
Internationally, Proximus is one of the leading companies in global communications, present in the CPAAS, DI, Mobility and P2P markets 445 M€ Direct margin FY23 CPaaS 10.5bn Transactions/month (Route Mobile) Proximus is a P2P Voice provider of digital Digital Identity 300+ services and & Messaging C
Slide 23: You are using our solutions everyday
You are using our solutions everyday Example of use cases When you call or text your friend abroad When you receive text to update you on flight’s delay When you book a train ticket on WhatsApp When you sign up for new video game When your bank wants to send you transaction alerts in any part of the
Slide 24: International activities encompass the entire value chain of digital communications
Proximus International activities encompass the entire value chain of digital communications.. Connect Engage Protect Description Number one interoperability service …enabling a leading …providing the most provider with connections to MNOs and communication platforms to secure and trusted OTTs1 resu
Slide 25: No other player matching our end-to-end presence
..with no other player matching our end-to-end presence Connect Engage Protect P2P Voice & Messaging Mobility services CPaaS Digital Identity Market Mature market with few Constant innovation, shifting Market concentrated to Emerging market with high landscape independent global leaders from P2P to
Slide 26: We expect to outperform the market with a superior product offering
We expect to outperform the market, thanks to our unique position, bringing a superior and complementary product offering P2P Voice & Messaging Mobility services CPaaS Digital Identity Market CAGR 2023-261 (5)-(10)% c. +5% +10-15% c. +15% Weight in DM PXS Int’l c. 25% c. 20% c. 45% c. 10% Our ambiti
Slide 27: International segment to create significant value for the Group
We expect our international segment to create significant value for the Group over the coming years 2-3Y deliver value potential 2026+ Capture above fair Cash generation Several options to share in growing Deliver on synergy unlock value markets potential Deliver high-quality services High cash conv
Slide 28: Financial results
Financial results
Slide 29: Closed a strong FY'23, both commercially & financially
Closed a strong FY’23, both commercially & financially.. Group underlying revenue FY 2023 +2.2% Group underlying EBITDA FY 2023 -1.6% € 6,042M 5,909 6,042 € 1,757M 1,772 1,786 1,757 5,578 Domestic Domestic 4,478 4,665 4,381 1,654 1,665 1,636 International International (reported) (reported) Eliminat
Slide 30: Sustained the strong momentum in H1 2024
..and sustained the strong momentum in H1 2024 Guidance upgrade for Domestic revenue/EBITDA & Group EBITDA in Q2 Domestic International Group H1’24 Domestic +xx% 5.0% 5.3% H1’24 EBITDA 4.0% revenue of 2,401M€ of 934M€, 1.4% 3.5% Growing direct up +5.1% -0.4% 4.5% 4.6% 213 Sustained a 4.2% 4.3% margi
Slide 31: We expect to end 2024 with Group EBITDA growing up to 2.5%
We expect to end 2024 with Group EBITDA growing up to 2.5% YoY on pro-forma basis, Capex reflecting Fiberklaar consolidation Guidance Outlook FY2023 YTD24 Outlook FY 2024 FY 2024 metric 23 Feb 2024 comparable Actuals 26 July 2024 Underlying Domestic Growing Growing 4,665M€ +4.6% YoY revenue up to 1%
Slide 32: Financial policy
Financial policy
Slide 33: Attractive 3-year dividend policy
Attractive 3-year divided policy Over 2024 result, intention to return a gross dividend of €0.6/share: €/share, gross 1,2 1,2 1,2 Over 2024 result, intention to 0,6 0,6 return a gross dividend of 0,4 €0.6/share: • interim of €0.5/share in Dec’24 23e 24e 25e • remainder of €0.1/share in April ’25 Cas
Slide 34: Keeping a sound financial position
Keeping a sound financial position Debt maturity schedule S&P adjusted (as per end Jun’24) Net Debt/EBITDA Peaking in ’24 and stabilizing ~3.0x as of ’25 to ’27 green green Senior credit ratings bond bond S&P BBB+ (Negative outlook) Moody’s A3 (Stable outlook) 750 750 400 700 500 500 2.7% Weighted a
Slide 35: Sustainability
Sustainability Our contribution to the environment and society PDF: Sustainability report 2023
Slide 36: Our key ESG commitments
Our key ESG commitments Theme 3 year ambitions Status 2023 Connectivity 50% fiber coverage by end 2025 (>3 Mio connectable)1 29% of the total Belgian premises connectable 34% “Fiber in the street”2 coverage 100% 5G indoor coverage in 20251 40% indoor coverage We anticipate to reach 100% indoor cover
Slide 37: Net Zero CO2 across the value chain by 2040
Proximus goes all-in for Net Zero CO2 across the value chain by 2040 and will be truly circular by 2030 by acting NOW Towards Net Zero CO2 by 2040 Be truly circular by 2030 Proximus CO2 footprint in KTons (Scope 1+2+3) Eco-centric design of CPEs -0.6% Devices Refurbished phones & call for 555 551 re
Slide 38: Acting with an SBTi approved Net Zero target for 2040
Acting with an SBTi approved Net Zero target for 2040 Proximus Group CO2Scope Scope 1 footprint 2 in 2023 5% - 27.4 Ktons circa 0% - 0 Kton Own indirect emissions Targets Direct emissions vs 2020 baseline Targets from electricity usage from fossil fuel combustion and refrigerant gases vs 2020 baseli
Slide 39: Strong in recycling and refurbishment
Strong in recycling and refurbishment +128,002 smartphones collected in 2023 Encourage customers +799,432 to collect mobile refurbished equipment devices and we are in 2023 launching more and more proposals for Reduce use of raw smartphones materials by leasing and renting equipment from customers a
Slide 40: FY 2023 Key Figures
FY 2023 Key Figures PDF: Q4 2023 results
Slide 41: Growing Internet and Mobile Postpaid customer base
Growing Domestic Net adds Group 51 166 156 38 Internet and (‘000) Mobile Postpaid -11 -36 2022 2023 2022 2023 customer base 2022 2023 Total base Group 2.3% YoY + -2.1% YoY +3.2% YoY (‘000) to 2,267K to 1,674K to 4,973K 41
Slide 42: >75% of the Group revenue is Domestic
>75% of the Group revenue is Domestic topline Domestic, International mainly generated by Residential generated € 1.5bn & Business customers Group revenue FY 2023 Domestic revenue FY 2023 € 6,042M € 4,665M 2.2% 4,665 4,356 4,381 4,478 5,909 6,042 5,479 5,578 2,261 2,396 2,152 2,207 4,478 4,665 4,356
Slide 43: The Group Direct margin is 64% of revenue
The Group Direct margin The Group operating expenses is 64% of revenue, totaled € 2.1bn, and 75% for Domestic € 1.3Bn workforce related Group DM 2023 Group OpEx 2023 € 3,849M € 2,091M +8.0% +3.4% 2,091 3,722 3,849 1,936 3,576 3,579 1,807 1,740 1,845 3,360 3,481 1,695 3,283 3,286 1,578 1,633 303 303
Slide 44: Group EBITDA €1,757M, -1.6% YoY
Group EBITDA 2023 € 1,757M Group EBITDA €1,757M, -1.6% -1.6%YoY 1,836 1,772 1,786 1,757 with cost efficiencies mitigating inflation impacts. 2023 EBITDA margin at 1,706 1,654 1,665 1,636 29.1%. 131 118 121 121 2020 2021 2022 2023 Domestic International 44
Slide 45: Proximus invested c. 1.3bn€ in 2023
Proximus invested c. 1.3bn€1 in 2023 Group CapEx (bn€) 1.305 1.325 • Fiber roll-out on Proximus balance sheet 1.203 • Fiber customer termination and activation 1.000 cost rising • IT-transformation and Digitalization • Ongoing implementation of Mobile network consolidation 2020 2021 2022 2023 1 Excl
Slide 46: FCF of 2023 reflecting increased Fiber investments
FCF of 2023 reflecting increased Fiber investments FCF €M 181 167 Accelerated Fiber rollout, with 36% more homes passed with Fiber compared to 2022 is a main 61 driver for the decrease in adjusted FCF 18 2022 2023 FCF Adjusted FCF 46
Slide 47: Contact Investor Relations
Contact Investor Relations Nancy Goossens Adrien Peillon Investor Relations Lead Investor Relations manager Call: Proximus Investor E-mail: +32 2 202 82 41 Relations website: investor.relations@proximus.com www.proximus.com/en/investors
Slide 48: Appendix
Appendix
Slide 49: Additional information
Additional information • Most recent results publications: Quarterly results | Proximus Group • Annual report: Annual reports | Proximus Group • CMD’s: Ad hoc | Proximus Group • ESG: ESG achievements - Environmental, social and corporate governance | Proximus Group • BICS: www.BICS.com • Telesign: w
Slide 50: As a group, we employed 11,654 FTEs end-2023
As a group, we employed 11,654 FTEs end-2023 o/w 8,485 Average Proximus SA Age pyramid 13,391 12,932 46YR (Proximus SA – end 2023) 2,582 11,532 11,634 11,654 Women Higher efficiency & digitalisation allowed 12,644 12,143 10,427 10,358 5,903 Men 8% 48% 44% for the Domestic headcount to 10,577 decreas
Slide 51: Our Governance structure
Our Governance structure 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 to,
Slide 52: Our governance model: Board of Directors
Our governance model: Board of Directors 14 Board members Catherine Béatrice de 50% independent Martin De Cécile Karel Joachim Stefaan Prycker2 Coune1 Rutten De Gucht Mahieu Sonne De Clerck 7Women / 7Man Chairman Independent Director Independent Director Independent Director Independent Director The
Slide 53: Our executive committee
Our executive committee (the leadership squad) Guillaume Boutin CEO Jan Geert Mark Ben Anne-Sophie Renaud Jim Antonietta Van Acoleyen Standaert Reid Appel Lotgering Tilmans Casteele Mastroianni Human Capital Network & Finance Corporate Enterprise EnterpriseIT Enterprise Customer Consumer Digital & I
Slide 54: Credit ratings
Credit ratings A3, Stable Outlook BBB+, Negative Outlook 20 September 2024 18 September 2024 • Proximus’ A3 rating reflects the company’s moderate size and • Proximus holds a leading position in Belgium with an estimated its leading position in Belgium with market shares in fixed market share of 45%
Slide 55: Shareholder structure
Shareholder structure Situation 30/06/2024 Total number of shares Free-float Belgian Government Market Capitalization Gross Dividend yield 338,025,135 42% 54% ~€ 2.5bn ~8% Number of shares Number of shares Number of shares % shares % Voting rights % Dividend rights with voting rights with dividend r
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