Bce Inc. · TSX:BCE
Bce — Shareholder Meeting (April 2016)
45 slides from Bce's shareholder meeting presentation, April 2016
Slide 1: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in this presentation are forward-looking statements. These statements include, without limitation, statements relating to our 2016 financial guidance (including revenues, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow), BCE’s 2016 annu
Slide 3: George A. Cope, President and Chief Executive Officer
GEORGE A. COPE President and Chief Executive Officer
Slide 4: Canada's first communications company
Canada’s first communications company Bell founded April 29, 1880 in Montréal • 2,100 phone lines • 150 team members • $29,670 in revenue • $11,500 in salaries Technicians – 1889 Chief operator – 1906
Slide 5: Canada's largest communications company
Canada’s largest communications company Customer Annual Enterprise Nationwide One of the most connections revenue value team widely held stocks in Canada 21M+ $22B $75B 50,000
Slide 6: Our goal
6 Strategic Imperatives 1 Improve Customer Service Our 2 Invest in Broadband Networks & Services goal 3 Accelerate Wireless To be recognized 4 Leverage Wireline Momentum by customers as Canada’s leading 5 Expand Media Leadership communications company 6 Achieve a Competitive Cost Structure
Slide 7: Improve Customer Service
1 Improve Customer Service
Slide 8: Continued service progress in Q1
Improve Customer Service Continued service progress in Q1 Bell Self-Serve Calls handled 30 million visits Down 14% Transactions up 11% Residential churn Residential assurance Fibe TV: Down 14 bps Down 29% Internet: Down 8 bps CCTS complaints Wireless postpaid churn Down 16% y/y Down 3 bps Better ser
Slide 9: Customers say service is improving
Improve Customer Service Customers say service is improving “I would recommend Bell Mobility to family and friends” 55% increase since 2011
Slide 10: Invest in Broadband Networks & Services
2 Invest in Broadband Networks & Services
Slide 11: The leader in broadband technologies
Invest in Broadband Networks and Services The leader in broadband technologies Mobile 4G LTE Data hosting centres Integrated Broadcast Management System Fibe TV and Fibe Internet Satellite TV Investing $3.7 billion this year in broadband network leadership
Slide 12: Building out our high-speed fibre network
Invest in Broadband Networks and Services Building out our high-speed fibre network 8M 8.2M 7.6M 6.7M FTTN FTTH / MDU 2013 2014 2015 2016 Expanding to more than 8.2 million locations this year
Slide 13: LTE Advanced to cover 75% of population in 2016
Invest in Broadband Networks and Services LTE Advanced to cover 75% of population in 2016 LTE Advanced takes mobile data speeds up to 335 Mbps
Slide 14: Bell LTE network consistently ranked #1
Invest in Broadband Networks and Services Bell LTE network consistently ranked #1 “This year, Bell is clearly Canada's fastest mobile network... Bell installed some new technology that’s resulted in speeds that simply blow US carriers away” Source: PCMag
Slide 15: Accelerate Wireless
3 Accelerate Wireless ay Hoe Bees a8 seas al i ET if U ‘ | te
Slide 16: The clear industry leader in Q4
Accelerate Wireless The clear industry leader in Q4 Share of Q4 2015 postpaid wireless net additions 49.5% 33.6% 16.8%
Slide 17: Significant wireless revenue and EBITDA growth
Accelerate Wireless Significant wireless revenue and EBITDA growth Wireless revenue Wireless EBITDA ($000) ($000) +40% $6,876 +65% $2,828 $4,906 $1,718 2010 2015 2010 2015 8.7% compounded annual growth rate in wireless EBITDA
Slide 18: Leverage Wireline Momentum
4 Leverage Wireline Momentum
Slide 19: Internet will become the #1 connection in 2016
Leverage Wireline Momentum Internet will become the #1 connection in 2016 Home 2012 Phone TV penetration 2016 surpasses 100% Internet penetration Home Phone surpasses TV 75% TV 50% 25% Internet 0% 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
Slide 20: Canada's largest Internet provider
Leverage Wireline Momentum Canada’s largest Internet provider Subscribers (000s) 2015 3,413 2,048 1,961 1,568 1,566 717
Slide 21: Canada's fastest Internet service
Leverage Wireline Momentum Canada’s fastest Internet service Current # of Gigabit Fibe capable locations 650K 1.3M 250K Gigabit Fibe capability for ~3 million locations by the end of 2016
Slide 22: Bell becomes Canada's #1 TV provider in 2015
Leverage Wireline Momentum Bell becomes Canada’s #1 TV provider in 2015 Subscribers (000s) 2,738 2,652 1,896 1,737 1,005 761 Fibe has made Bell the fastest growing TV company
Slide 23: Fibe TV taking market share from cable
Leverage Wireline Momentum Fibe TV taking market share from cable TV subscriber growth 2010-2015 Ranked as the top TV service (000s) in Canada 635 -75 -409
Slide 24: Leading the way in TV innovation
Leverage Wireline Momentum Leading the way in TV innovation Trending Trending • Trending • Restart 1108 RDS 1137 Canal Vie 1150 VRAK 1127 Investigation 1161 Super Écran Le hockey des Canadiens Mordu de toi Code F Ray Donovan Le Trône de fer • Fibe TV app • CraveTV and Netflix • Wireless TV
Slide 25: Leading the way in TV innovation
Leverage Wireline Momentum Leading the way in TV innovation Trending • Trending Restart • Restart • Fibe TV app • CraveTV and Netflix • Wireless TV
Slide 26: Leading the way in TV innovation
Leverage Wireline Momentum Leading the way in TV innovation Trending • Trending Restart • Restart NEW CTV National News With L… NEW CTV News Montreal NEW The Daily Sho Fibe TV • Fibe TV app app NEW CTV News Barrie The Tonight Show Starring Jimmy Fallon < Man Vs. • CraveTV and < Maps to the Stars The
Slide 27: Leading the way in TV innovation
Leverage Wireline Momentum Leading the way in TV innovation Trending • Trending Restart • Restart Fibe TV • Fibe TV app app • CraveTV CraveTV and and Netflix Netflix • Wireless TV
Slide 28: Leading the way in TV innovation
Leverage Wireline Momentum Leading the way in TV innovation Trending • Trending Restart • Restart Fibe TV • Fibe TV app app • Netflix CraveTV andand NetflixTV Crave WirelessTV • Wireless TV
Slide 29: Expand Media Leadership
5 Expand Media Leadership
Slide 30: Bell Media leads the industry
Expand Media Leadership Bell Media leads the industry Conventional TV Specialty TV Pay TV Radio Digital Out of Home
Slide 31: Bell Media in Québec
Expand Media Leadership Bell Media in Québec Conventional TV Specialty Pay Out of Home Digital Radio
Slide 32: Historic content deal with HBO
Expand Media Leadership Historic content deal with HBO Premium HBO Bell Media programming exclusive Available across all English and French-language platforms Original content partnership
Slide 33: Ownership supports TV sports leadership
Expand Media Leadership Ownership supports TV sports leadership Long-term broadcast agreements RDS and TSN confirmed as Canada’s #1 sports networks in Q1
Slide 34: Achieve a Competitive Cost Structure
6 Achieve a Competitive Cost Structure 34
Slide 35: Leading wireline profitability among peers
Achieve a Competitive Cost Structure Leading wireline profitability among peers Wireline EBITDA margin 2015 41% 28% 27% 23% Disciplined cost management delivers industry-leading margins
Slide 36: Shareholder value creation
Shareholder value creation
Slide 37: 2015 financial summary
2015 financial summary Actual Target Result Revenue growth 2.2% 1% - 3% Adjusted EBITDA growth 3.0% 2% - 4% Capital intensity 16.9% approx. 17% Adjusted EPS $3.36 $3.28 - $3.38 Free cash flow growth 9.3% 8% - 15% Achieved all 2015 financial guidance targets
Slide 38: $39 billion in enterprise value added since end of 2008
$39 billion in enterprise value added since end of 2008 12 $2.73 dividend $2.60 $2.47 increases $2.27 $2.33 $2.17 $2.07 $1.97 87% $1.54 $1.62 $1.74 $1.83 $1.46 increase in dividend per Q4 Q1 Q3 Q1 Q3 Q1 Q2 Q1 Q3 Q1 Q1 Q1 Q1 common share 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2014 2015 201
Slide 39: Bell outperformed our North American peers
Bell outperformed our North American peers 7-year Total Shareholder Return (Dec 31, 2008 to Apr 25, 2016) 241% 192% 135% 105% 76% 86% S&P/ TSX 60 Index
Slide 40: Bell Let's Talk
Bell Let's Talk
Slide 41: 2010: $50M investment
2010: $50M investment Renewing the Bell Let’s Talk initiative 5 more years, total commitment of at least $100 million 41
Slide 42: 2015: $100M investment
2015: $100M investment Renewing the Bell Let’s Talk initiative 5 more years, total commitment of at least $100 million 42
Slide 43: More than 100 organizations funded since 2010
More than 100 organizations funded since 2010 Banque de cerveaux Douglas – Bell Canada $1.43 million raised at Bal des lumières in Montréal Support for both major institutions and grassroots community groups
Slide 44: Changing attitudes and perceptions
Changing attitudes and perceptions Increased Youth Are more aware of awareness 81% 87% mental health issues Believe the stigma Reduced Youth around mental illness stigma 51% 65% has been reduced Believe attitudes about Improved Youth mental health issues have attitudes 70% 79% changed for the better
Slide 45: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016