Proximus Sa · EURONEXT:PROX
Proximus Sa — FY2022 Earnings Presentation
43 slides from Proximus Sa's earnings presentation, Feb 17, 2023
Slide 1: Proximus Group Results presentation Q4 & FY 2022
Proximus Group Results presentation Q4 & FY 2022 17 February 2023 Guillaume Boutin, CEO Follow the webcast here. To ask a question, register here for the Q&A.
Slide 2: Cautionary statement
2 Cautionary statement . This presentation is a subset of the company’s results release. Please consult proximus.com/investors for the overall disclosed information. This communication may include some forward-looking statements, without limitation, regarding Proximus’ financial or operational resul
Slide 3: Agenda
3 Agenda • Highlights Q4 • Financial & Operational performance • bold2025 • Outlook 2023 • Q&A
Slide 4: Highlights Q4
Highlights Q4
Slide 5: Group delivering +8.1% revenue and +1.4% EBITDA growth for Q4
Group 5 Proximus Group delivering +8.1% revenue and +1.4% EBITDA growth for Q4, and continued commercial traction Sustained strong Key strategic Continued strong Group revenue developments commercial momentum growth in Q4… Revenue YoY 8.1% Successfully delivered last Q of +9K +31K Domestic Group #In
Slide 6: Proximus selected for the new BEL ESG index
Group 6 Proximus one of the 20 companies selected to be part of the new BEL ESG index Tracking Brussels listed companies that demonstrate the best ESG practices Inclusions based on broad ESG standards and approaches adopted by institutional and private investors ✓ 20 companies scoring best on Enviro
Slide 7: Strong Q4 revenue & Direct Margin growth for all segments
7 Group 7 Strong Q4 revenue & Direct Margin growth for all segments Revenue Direct Margin 8.1% 3.8% 53 1,558 11 0 935 53 16 7 1,441 24 -13 900 +2.1% +20.4% +61.5% +2% +12.3% +48.7% Q4’21 Domestic BICS Telesign Elims Q4’22 Q4’21 Domestic BICS Telesign Elims Q4’22 Revenue Opex Ebitda 5.9% 1.4% 13 0 52
Slide 8: Inspire2022 successfully concluded with a return to growth
Inspire2022 successfully concluded with a return to growth Outlook FY 2022 Result Guidance metrics Revised upward FY 2022 28 October 2022 Underlying Domestic revenue Growing € 4,176M Build the best Operate like a Excl. terminals around +2% YoY +2.5% GIGABIT NETWORK “DIGITAL native” for Belgium compa
Slide 9: Closing the year 2022 with > 21% fiber coverage
9 Group 9 Closing the year 2022 with > 21% fiber coverage Proximus Fiberklaar Unifiber 93 Cities 50% Fiber coverage target end-2025
Slide 10: 1.3M Fiber Homes Passed, record +158K added in Q4
Group 10 We closed 2022, with a total of 1.3M Fiber Homes Passed, in Q4 we added a record +158K new Homes Passed 1.3M 23% Fiber Homes & Businesses Passed Network filling rate* (in K, total base and additions in the period) +58% +32% 1,282 250 23% 1,124 1,031 200 909 21% 813 150 19% 467 100 353 158 1
Slide 11: Strong customer demand for Fiber, 252k activated lines
Group 11 Strong customer demand for Fiber, 252k activated Fiber lines by the close of the year 2022 Total park & net adds1 (in K) +73% 252 +70% 220 Increasing Fiber share Lower churn 194 in total acquisitions levels vs Copper 170 >30% 31 146 2 27 25 23 20 Q4’21 Q4’22 106 62 ARPC in €3 68% Migration
Slide 12: Widening product superiority and focus on customer satisfaction
Group 12 Widening product superiority, targeted segmental offers and focus on customer satisfaction Contact center volumes Superior connectivity (per purpose) 10 Gbps FY21 FY22 FY21 FY22 Administrative Technical Accommodating fast evolving Higher Consumer NPS retained, while cost of living impacts c
Slide 13: Financial & Operational performance
Financial & Operational performance
Slide 14: Domestic
Domestic
Slide 15: Strong demand for Internet & Mobile, TV decline moderated
15 Domestic 15 Continue strong demand for Internet & Mobile, TV decline moderated from Q3 Postpaid Internet base 2,216K; TV base 1,710K; Postpaid base 4,817K; Fixed Voice 1,810K; + 38k YoY - 11k YoY + 166k YoY -195k YoY +1.7% YoY -0.7% YoY +3.6% YoY -9.7% YoY Net adds; Group (‘000) -45 -46 -42 53 52
Slide 16: Complementary brands and targeted offers for all segments
Residential 16 Growth supported by our complementary brands, new targeted offers addressing all segments in the market New in 2022 Early New Product & care adopters & For price cord seekers 2022 seekers cutters Flex XS MVIK Internet TRIO Mobile Mar’22 Dec’22 Mar’22 Dec’22 Mar’22 Dec’22 Premium solut
Slide 17: Residential services revenue Q4 +2.6%, total +0.7%
Residential 17 Residential services revenue Q4 +2.6%,total +0.7% Residential revenue (€M, YoY ) • Customer Services revenue +2.6% 3.6% 4.3% 3.0% +2.4% 1.9% 0.7% ✓ Continued good customer growth for 572 570 576 2,261 Mobile postpaid (Q4 +23,000) and 553 562 2,207 68 65 62 247 Internet (Q4 +9,000). 61
Slide 18: Growing Convergent base and higher ARPC
Residential 18 Growing Convergent base and higher ARPC driving Residential customer services revenue increase +2.6% Customer Customers (in K) +3.2% ARPC (overall, €) Growing Convergent base, services revenue (in €M) Supported by Jan’22 & May’22 +52,000 net adds over 2022 or price indexation & upsell
Slide 19: Q4'22 Business revenue +4.1%
Business 19 Q4’22 Business revenue +4.1%, including strong IT products revenue Business revenue (€M, YoY ) Q4 revenue 3.7% 4.1% +1.7% Services revenue -0.9%, 1.0% 0.6% -1.6% growth in Fixed Data and IT services, off-set by Fixed Voice 497 1,862 1,894 erosion. 477 468 471 459 Products revenue +31.9%,
Slide 20: B2B Fixed Data and recurring IT services growth
Business 20 B2B continued to see positive Fixed Data and recurring IT services growth, for large part offsetting Fixed Voice erosion Business Services revenue (€M) Q4 -0.6% -0.9% 1,597 1,587 +2.7% Fixed Data 402 398 > Internet revenue up: +4.6% ARPU & base +0.7% YoY 298 270 71 64 > Growing share of
Slide 21: Wholesale Services revenue up, interconnect decline
Wholesale 21 Wholesale continued positive track for Services revenue, sustained decline in interconnect revenue Wholesale revenue (€M, YoY ) 1.1% 3.3% -2.1% -2.3% -0.7% -8.1% • Q4 Fixed & Mobile Services 286 75 70 70 72 280 revenue +7.8%: 69 > Mobile revenue 140 > JV services revenue 41 34 164 37 35
Slide 22: Domestic business delivered continued top line growth in Q4
22 Domestic 22 Domestic business delivered continued top line growth in Q4 +2.2% Revenue Q4 (underlying, €M) FY 4,478 2.1% 88 1,155 1,132 4,381 11 15 1,068 1,043 3 -89 -4 +2.4% excl. terminals Q4’21 Terminals Q4’21 Residential Business Wholesale Non-Services Q4’22 Terminals Q4’22 (Residential & excl
Slide 23: Cost efficiency savings partially offset inflationary impacts
Domestic 23 Continued delivery of cost efficiency savings partially offset inflationary impacts OPEX (underlying, €M) Domestic Opex (€M) Q4 2.1% FY 3.8% 450 28 1,695 35 1,633 441 FY2021 WF Non-WF FY2022 Domestic headcount (FTE) -151 10,577 10,427 Q4’21 Lower Inflation Customer Transformation Q4’22 H
Slide 24: Domestic EBITDA growth +1.8% in Q4
24 Domestic 24 Direct Margin growth and effective inflation mitigation drove +1.8% Domestic EBITDA growth in Q4 EBITDA +0.7% Q4 (underlying, €M) FY 1,665 +1.8% 1,654 389 382 Q4’21 Direct Margin Workforce costs Non-Workforce costs Q4’22 FY21 FY22 *Aggregate of Residential Prepaid, Business IT product
Slide 25: International
International
Slide 26: BICS record revenue growth in Q4 of +20.4%
26 BICS 26 BICS delivered a record revenue growth in Q4 of +20.4% +13.3% Enterprise 20.4% Telco Revenue (€M, YoY ) 16.4% Q4 revenue: revenue: 11.2% +40.0% YoY +15.8% YoY 9.0% 1,132 Core +20.6% 4.5% 999 307 311 Increased post Covid 19 traveling 311 270 436 Core 259 245 118 118 386 Growth Growth +30.5
Slide 27: Telesign Q4 revenue +61.5%
27 Telesign 27 Telesign Q4 revenue +61.5% continued growth in sales bookings and NRR rising to 147% +46.9% +44.5% Revenue (€M, YoY ) in CC Strong quarter for both Communication and Digital Identity, 61.5% 39.5% 44.0% 30.9% 15.1% Communication performance driven by e- 473 commerce seasonality (Black
Slide 28: Group
Group
Slide 29: Group 2022 strong revenue growth and return to EBITDA growth
29 Group 29 At Group level for 2022, we delivered strong revenue growth and a return to EBITDA growth Revenue Direct Margin 5.9% 4.0% 146 5,909 36 34 3,722 133 74 5,578 97 3,579 -1 -45 FY21 Domestic BICS Telesign Elims FY22 FY21 Domestic BICS Telesign Elims FY22 Revenue Opex Ebitda 7.1% 0.8% 50 1,93
Slide 30: FY'22 Capex of €1.3bn
30 Group 30 FY’22 Capex of €1.3bn Group Capex €M, excl. spectrum & football rights • Strong YOY increase in Proximus Fiber HP +8.4% • Increase in Fiber customer termination and 1,305 activation cost 1,203 • IT-transformation and Digitalization • Ongoing implementation of Mobile network consolidation
Slide 31: 2022 FCF reflects accelerated Fiber investments
Group 31 2022 FCF reflects accelerated Fiber investments and unfavourable YoY evolution of BWC (€M) 21 10 194 6 139 376 14 237 -305 Incl. Fiber 181 167 investments & spectrum auction -136 -13 deposits FY21 Acquisitions FCF Underlying Income Interest Early Fiber Cash AP/AR/ FCF Acquisitions FY22 2021
Slide 32: Proximus continues to manage a sound financial position
32 Proximus continues to manage a sound financial position Adjusted Net Financial Position (excl. lease liabilities) 2.3X (YTD, €M) Net debt / EBITDA (S&P definition) at year-end 2022 Credit ratings S&P BBB+ (stable outlook) 167 Moody’s A2 (stable outlook) 202 -2,740 -2,758 -387 * Net fin position F
Slide 33: Our 2025 ambition
33 Our 2025 ambition
Slide 34: Boldly building a connected world that people trust
34 We deliver great value for through exceptional our stakeholders strengths Act for an inclusive society & Roll out #1 gigabit network be sustainable in everything we do for Belgium Boldly building a Delight customers with Engineer technology assets connected world unrivalled experience to enable d
Slide 35: 2023 outlook
Group 35 2023 outlook Outlook Dividend over 2022 result Guidance metrics FY2022 FY 2023 16 January 2023 Annual gross dividend over result of € 1.2/share, in line with announced 3-year € 4,478M dividend policy (2020-2022) Underlying Domestic revenue +[1-3%] YoY Dividend of gross €0.70/share payable U
Slide 36: Q&A
Q&A To ask a question, join the conference call → Register here for the Q&A to receive your dial-in details.
Slide 37: Appendix
Appendix
Slide 38: From reported to underlying
38 Appendix 38 From reported to underlying GROUP GROUP GROUP GROUP Revenue EBITDA Revenue EBITDA (EUR million) Q4 '21 Q4 '22 Q4 '21 Q4 '22 YTD '21 YTD '22 YTD '21 YTD '22 Reported 1,441 1,559 425 419 5,579 5,914 1,828 1,826 Adjustments 0 -1 -16 -4 -1 -5 -56 -40 Underlying 1,441 1,558 409 415 5,578 5
Slide 39: EBITDA conversion to FCF
Appendix 39 EBITDA conversion to FCF (€M) 1,826 1,786 -40 -78 -1,441 30 181 167 -30 -36 -13 -46 Reported Adjustements Underlying AP/AR/ Cash Fiber Income Interest Early Leave Others FCF Acquisitions FCF Ebitda Ebitda Inventory Capex equity tax payments Plan/FFP FY22 2022 FY22 FY22 FY22 injections pa
Slide 40: Net income (Group share)
Appendix 40 Net income (Group share) (€M) +1.5% 14 8 4 450 4 -8 443 -16 FY21 Underlying Adjustments D&A Net Tax expense Others (*) FY22 Ebitda finance result * Includes Non-controlling interests and Share of loss from associates
Slide 41: Continued access to credit markets and refinancing secured
Appendix 41 Continued access to credit markets & near term refinancing secured at low interest rates Debt maturity schedule (€M) >99% of outstanding LT debt at fixed rate * Refinancing of 2024 & 2025 bonds hedged in Q1’22 at low interest rates Average debt maturity of 7 years Weighted cost of debt a
Slide 42: Shareholder structure
Appendix 42 Shareholder structure Status 31/12/2022 Total number of shares Free-float Belgian Government Market Capitalization Dividend yield 338,025,135 42% 54% ~€ 2.9Bn ~13.3% Number of shares Number of shares Number of shares % shares % Voting rights % Dividend rights with voting rights with divi
Slide 43: Contact Investor Relations
Contact Investor Relations Call: Proximus Investor E-mail: Relations website: +32 2 202 82 41 investor.relations@proximus.com www.proximus.com/en/investors