Slide 1: 2011 Annual General Shareholder Meeting
2011 ANNUAL GENERAL SHAREHOLDER MEETING
Slide 2: Caution concerning forward-looking statements
Caution concerning forward-looking statements Certain statements made in this presentation, including, but not limited to, statements relating to our 2011 financial guidance (including revenues, EBITDA, capital intensity, Adjusted EPS and free cash flow), BCE Inc.’s dividend policy, our Fibe TV depl
Slide 3: Siim Vanaselja, Chief Financial Officer
SIIM VANASELJA Chief Financial Officer
Slide 4: 2010 financial summary
2010 financial summary1 $M 2010 Actual 2010 Guidance Result Except per share amounts Revenue growth 2.7% 2%-3% Achieved EBITDA growth 2.4% 2%-4% Achieved Capital intensity 16.0% ≤16% Achieved Adjusted earnings per share $2.84 $2.80-$2.85 Achieved Growth rate Y/Y 13.6% 12%-14% Free cash flow
Slide 5: Bell's improved revenue mix
Bell’s improved revenue mix Operating revenue mix – 2011E Pro forma ~80% ~30% ~11% ~27% ~12% ~20% Wireless Bell TV/Fibe Wireline Internet/Data Media Wireline Voice • Changing revenue mix de-risking Bell’s revenue profile • CTV acquisition further shifts Bell’s revenue mix away from traditional wirel
Slide 6: Solid capital markets execution
Solid capital markets execution Capital Markets model Strong credit profile Substantial liquidity Growing sustainable free cash flow Increasing total shareholder returns
Slide 7: Solid capital markets execution
Solid capital markets execution Capital Markets model Strong credit profile • Healthy balance sheet Substantial liquidity • Strong investment grade credit ratings with stable outlooks Growing sustainable • Maintaining sound financial policies free cash flow – Net debt to EBITDA credit ratio maintain
Slide 8: Solid capital markets execution
Solid capital markets execution Capital Markets model Strong credit profile • Over $2.1B of cash and credit facilities Substantial liquidity at YE2010 • Accessed low cost debt Growing sustainable – Issued $1B of 5-year debt at 3.6% in Nov. 2010 free cash flow – Issued $1B of 7-year debt at 4.4% in M
Slide 9: Solid capital markets execution
Solid capital markets execution Capital Markets model Strong credit profile • 9% free cash flow1 growth in 2010 Substantial liquidity • Free cash flow coverage ratio of ~1.6x • Supports dividend growth and accelerating Growing sustainable broadband investment to drive future growth free cash flow In
Slide 10: Solid capital markets execution
Solid capital markets execution Capital Markets model Strong credit profile • Two dividend increases in 2010 totalling 13% Substantial liquidity • 2011 dividend increases: – Q1 increase of 7.7% to $1.97 per share per year Growing sustainable – Q2 increase of 5% to $2.07 per share per year free cash
Slide 11: Increasing cash returns to shareholders
Increasing cash returns to shareholders * Just announced Continued commitment to dividend growth model Share buyback program (Annualized common dividend per share) (Dec. 2008 to Dec. 2010) Amount ($) ~$1.5B 42% $2.07 Shares repurchased $1.97 56.2M $1.83 and cancelled $1.74 $1.54 $1.62 Up $1.46 10¢ A
Slide 12: Q1 2011 financial performance
Q1 2011 financial performance1 $M • Strong operational momentum Q1 2011 Y/Y Except per share amounts at Bell Wireless • Rigorous wireline cost Revenues $3,882 1.0% management EBITDA $1,505 6.4% • Robust EBITDA and earnings Margin 38.8% 2.0 pts growth • Free cash flow in line with Adjusted net earnin
Slide 13: Increased financial guidance with Bell Media
Increased financial guidance with Bell Media 2011 outlook1 Revenue growth 9%-11% EBITDA growth 8%-10% Capital intensity ~16% Adjusted EPS $2.95-$3.05 6%-9% Free cash flow $2.2B-$2.3B Annualized common share dividend $2.07 1 Bell Canada revenue, EBITDA and capital intensity guidance, excluding Bell A
Slide 14: 2011 Annual General Shareholder Meeting
2011 ANNUAL GENERAL SHAREHOLDER MEETING
Slide 15: George Cope, President and Chief Executive Officer
GEORGE COPE President and Chief Executive Officer
Slide 16: Strategic Imperatives
5 Strategic Imperatives 1 Achieve a competitive cost structure 2 Improve customer service 3 Leverage wireline momentum Our goal To be recognized 4 Accelerate wireless by customers as Canada’s leading communications 5 Invest in broadband networks company and services 15
Slide 17: Acquisitions accelerate strategic imperatives
Acquisitions accelerate strategic imperatives 16
Slide 18: Bell Media: Canada's #1 media company
Bell Media: Canada’s #1 media company • CTV: 100% ownership • $3.3B acquisition • EPS accretive in 2011 • Thomson family invests $750M in BCE Transaction closed April 1 – Full quarter ahead of plan 17
Slide 19: Industry structure in 2006
Industry structure in 2006 Video was a separate business viewed on one screen 18
Slide 20: Industry structure today
Industry structure today Video is essential to our multi-screen business… CTV acquisition puts Bell in a leading position 19
Slide 21: Delivering content on all screens
4 Delivering content on all 3 screens Bell TV anytime, anywhere More than 15 million Bell screens by 2015 20
Slide 22: Announcements at close
4 announcements at close Bell Media Best sports Bell TV Online Bell Mobile TV launch coverage enhanced enhanced Canada’s #1 Canada’s newest More top-rated on- Instant access to media organization all-sports station demand programs live content 21
Slide 23: Delivering Strategic Imperatives in 2011
Delivering 5 Strategic Imperatives in 2011 1 Achieve a competitive cost structure 2 Improve customer service 3 Leverage wireline momentum 4 Accelerate wireless 5 Invest in broadband networks and services 22
Slide 24: Achieve a competitive cost structure
1 Achieve a competitive cost structure 23
Slide 25: Significant cost savings continue
Significant cost savings continue 2008-2009: $400 million $ 2010: $290 million 2011: $200 million $890 million saved Reducing costs while improving service 24
Slide 26: Improve customer service
2 Improve customer service 25
Slide 27: Enhanced team structure and service
Enhanced team structure and service 1 Service 2 Field Services 3 Networks Customer Operations Service Installation and Repair Wireline, Wireless and Satellite Structure supports better collaboration and efficiency 26
Slide 28: Improved service in the field
Improved service in the field • Same Day Next Day service • Internet Full Install • Express Install 9 million fewer call centre calls since 2008 27
Slide 29: Easier for customers to do business with us
Easier for customers to do business with us • One call for all services • Instant response to feedback Enhanced Enhanced online online experience experience • Fast-track to live help • Interactive touch screens in stores 7 million+ visits to bell.ca in April – Up 25% over 2010 28
Slide 30: Leverage wireline momentum
3 Leverage wireline momentum
Slide 31: Bell Business Markets service innovation
Bell Business Markets service innovation Contact Centre Wireless Solutions Data Centre and E-Health Solutions Managed Infrastructure Video Services Unified Communications Security Cloud Canada’s leading technology company for business 30
Slide 32: Bell is the proven "go to" company
Bell is the proven “go to” company Unmatched skills for the most demanding assignments 31
Slide 33: Preferred choice of Canada's retailers
Preferred choice of Canada’s retailers 100,000+ terminals connected on the Bell network 32
Slide 34: Bell's changing residential revenue mix
Bell’s changing residential revenue mix 2.1 million Internet subs 2 million Bell TV subs Bell Media (~25%), Internet (~15%), TV (~30%) ~70% ~30% Launching Fibe TV 25 million CTV viewers Local voice (~25%), LD (~5%) TV, Internet and Content are driving revenue 33
Slide 35: Fibe TV ready for prime time
Fibe TV ready for prime time • Toronto and Montréal launched • Expanding in 2011 • Targeting 2M homes by year-end • Cool features • Better than cable Fastest-growing TV technology in North America
Slide 36: Bell's Fibe TV opportunity
Bell’s Fibe TV opportunity Rural Suburban Urban 0.5M homes 4M homes 3.5M homes Bell Satellite TV (2M subscribers) Bell Fibe TV Bell TV portfolio Fibe TV confirms Bell’s TV leadership in all markets 35
Slide 37: Accelerate wireless
4 Accelerate wireless 36
Slide 38: Bell wireless has accelerated
Bell wireless has accelerated… Fastest, Best choice The most #1 telecom largest, global in devices distribution brand 37
Slide 39: Best network and technology leadership
Best network and technology leadership 2009 2010 2011 Launched world- First to offer 42 Mbps Next-generation LTE leading HSPA+ speeds to launch in certain network markets 38
Slide 40: Best devices
Best devices Apple iPhone 4 BlackBerry Bold 9780 and PlayBook Motorola ATRIX 4G Samsung Galaxy 551 HTC HD7 HTC Incredible S 4G 4G Novatel Wireless U547 Best and broadest choice - 4G smartphones and messaging devices, turbo sticks and tablets
Slide 41: Cool new stores
Cool new stores
Slide 42: Mobile TV leadership
Mobile TV leadership 41
Slide 43: More mobile competition in 2011
More mobile competition in 2011 Meeting the competition head on with multi-brand strategy 42
Slide 44: Bell regains market share leadership
Bell regains market share leadership Postpaid net adds share (incumbents) Q1 2007 Q1 2011 6% 25% Bell 37% 46% 57% 29% Dramatic growth for Bell Mobility over three years 43
Slide 45: Slide 45
Slide 46: Invest in broadband networks and services
5 Invest in broadband networks and services
Slide 47: Investing for the future
Investing for the future Wireless HSPA+ Nimiq 6 Broadband Fibe TV network and LTE launch fibre network rollout Capital expenditures of $6 billion over 2010 and 2011 46
Slide 48: Providing best broadband infrastructure
Providing best broadband infrastructure Fibre to the Fibre to the Fibre to the Fibre to the Neighbourhood Home Basement Business Ensuring Canada’s leadership in broadband 47
Slide 49: Explosive growth in Internet usage
Explosive growth in Internet usage Average hours per visitor (Q4 2010) Canadians lead the world in time spent online • We are broadband leaders • Watch more YouTube than any other country • Internet use and growth has not been hindered • Prices per Mbps are falling 0 10 20 30 40 50 Source: comScore,
Slide 50: Disciplined execution paying dividends
Disciplined execution paying dividends Total shareholder (Dec. 31, 2008 – returns Yesterday) 67.4% 58.2% 5.1% 7.7% 37.6% 28.8% 49
Slide 51: Bell Let's Talk
Bell Let's Talk
Slide 52: A pressing national health concern
A pressing national health concern 1 in 5 experience Underfunded #1 cause of mental illness 5% of health budget workplace disability 1 in 3 don’t get the Yet mental illness is Costs the economy care they need 15% of health burden $51 billion a year Far-reaching consequences touch all Canadians 51
Slide 53: $50M investment
$50M investment investment Corporate Canada’s largest Mental Health initiative ever 52
Slide 54: Bell Mental Health initiative
Bell Mental Health initiative 1 2 3 4 Anti-stigma Community Care Workplace Research and Access Health 53
Slide 55: Bell Let's Talk Day a huge success
Bell Let’s Talk Day a huge success Message $3,303,961.80 donated to mental health 66,079,236 total Bell text messages and long distance calls 54
Slide 56: Bell Gateway Building
Bell Gateway Building * Just announced • Global research leader • Canada’s largest mental health and addiction teaching hospital • First mental health facility named by a corporate donor $10 million donation to open front door of CAMH redevelopment 55
Slide 57: 2011 Annual General Shareholder Meeting
2011 ANNUAL GENERAL SHAREHOLDER MEETING