Bce Inc. · TSX:BCE
Bce — RBC Capital Markets Whistler 2003: The View from the Summit
11 slides from Bce's conference presentation, Feb 19, 2003
Slide 1: Achieving Balanced Performance
Achieving Balanced Performance Michael J. Sabia President President & & CEO CEO RBC RBC Capital Capital Markets Markets Whistler Whistler 2003: 2003: The The View View from from the the Summit Summit February February 19, 19, 2003 2003
Slide 2: Three Key Pillars
Three Key Pillars Top priority is Focus Bell Canada Simplify and better Profitable growth understand customer to increase share of wallet Key to delivering Productivity improving returns in challenging markets Maximizing long-term position while managing short-term challenges
Slide 3: Disciplined Execution
Disciplined Execution Year-over-year Growth 10.0% Revenue EBITDA Key Contributors: 8.0% 8.0% 6.0% Ä Ä Stable Stable regulatory regulatory 6.0% 4.0% environment environment 4.0% 2.0% 2.0% Ä Ä Broadest Broadest scope scope of of 0.0% 0.0% platforms platforms in in N.A. N.A. (2.0%) (2.0%) Ä Ä Relentles
Slide 4: Customer Insight is Key to the Future
Customer Insight is Key to the Future A customer-centric approach … … to uncover untapped potential … Better Insight 100% Share Share of of Telecom Telecom Wallet Wallet Ä Understand segment needs Ä Accelerate learning Simplification Ä Align channels 0% Consumer SME Ä Front-line tools Ä One Bill Ä 1
Slide 5: Aligning Channels and Segments to Maximize Opportunity
Aligning Channels and Segments to Maximize Opportunity Segment Customer Sales % Sales Group Coverage Growth Top 5% High 13 Large Next 35% Average 20 Enterprise The Rest Very Low -8 Top 5% High 16 Mid-Market Next 35% Average -3 Enterprise The Rest Very Low -15 Top 20% Average 4 SME The Rest Low -11 C
Slide 6: Discipline Drives Productivity
Discipline Drives Productivity The Productivity Imperative BCE Incremental EBITDA Ä Target major productivity gains for $600M- third year in a row $655M $650M Ä Realize simplification for both customers and internally $470M Ä Focus on sustainable improvements Ä Call Centres Ä Supply chain Ä Field op
Slide 7: Improving EPS
Improving EPS Î Solid EPS growth despite: $1.85 – $1.95 Î Prudent pension $1.81 assumptions Î Expensing of stock options Î Full year price cap impact Î Dilution from Directories sale 2002 Regulatory Pension Depreciation Expense & Other should lessen Growth & Stock Bell Buyback 2003E beyond 2003 Prod
Slide 8: Reducing Capital Intensity
Reducing Capital Intensity Bell Capex Key Investments 23% Ä 40% Growth sectors 20% $3.9B* 17-18% Ä Meeting demand growth – $3.4B ExpressVu, BB/IP, DSL, & Wireless ExpressVu BB/IP Ä 30% Core wireline DSL Ä Meet demand Wireless Ä Mandatory requirements Wireline Ä 10% Common tools Ä Continued focus on
Slide 9: Driving Positive Free Cash Flow and Returns
Driving Positive Free Cash Flow and Returns Making BCE durably Achieving improved Free Cash Flow positive returns Free Cash Flow 13%-14% (after dividends) 11% ROE 9% Positive FCF 4%-6% FCF 1% yield ($0.7B) ($2.8B) -6% 2001 2002 2003E 2001 2002 2003E 2004E Creating value for shareholders
Slide 10: Balanced Performance Action Plan
Balanced Performance Action Plan Building BCE’s customer-centred future… Î Simplification Î Better access and insight Medium-term game plan Î Commitment to service to drive profitable growth Î Increase loyalty and share-of-wallet …While driving execution and financial discipline Î Relentless pursuit
Slide 11: Safe Harbor Notice
Safe Harbor Notice Certain statements made in the attached presentation are forward-looking statements and are subject to important risks, uncertainties and assumptions. The results or events predicted in these statements may differ materially from actual results or events. The forward- looking stat
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