Bce Inc. · TSX:BCE
Bce — TD Securities Telecom & Media Forum 2011
11 slides from Bce's conference presentation, Jun 9, 2011
Slide 1: TD Securities Telecom & Media Forum
TD Securities Telecom & Media Forum June 9, 2011 Siim Vanaselja EVP & Chief Financial Officer
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in the attached presentation, including, but not limited to, statements relating to our 2011 financial guidance (including revenues, EBITDA, capital intensity, Adjusted EPS and free cash flow), Bell Media’s financial profile, BCE Inc.’s dividend policy, ou
Slide 3: Operating model focused on key value drivers
Operating model focused on key value drivers 5 Strategic Imperatives 1 Accelerate wireless 2 Leverage wireline momentum Our goal 3 Invest in broadband networks and services To be recognized by customers as Canada’s leading 4 Achieve a competitive cost structure communications company 5 Improve custo
Slide 4: Strong Q1 operating momentum
Strong Q1 operating momentum Continued wireless operating strength Highest market share of incumbent postpaid net adds (46%), ARPU growth, and strong smartphone sales achieved while generating 12.2% EBITDA growth and 40% margins Positive wireline operating trends Reduced NAS landline losses, slowing
Slide 5: Executing on Strategic Imperatives in Q1'11
Executing on Strategic Imperatives in Q1’11 • CTV acquisition completed April 1 – one full quarter ahead of schedule • Launched Bell Media • Broadest HSPA+ network with best choice in devices and most points of distribution • Highest Q1 incumbent postpaid market share: 46% • Smartphone users represe
Slide 6: Bell's improved revenue mix
Bell’s improved revenue mix Operating revenue mix — 2011E Pro forma ~80% ~30% ~11% ~27% ~12% ~20% Wireless Satellite/Fibe Wireline Media Wireline TV Internet/Data Voice 80% of revenues driven by growth segments 6
Slide 7: Increased 2011 financial guidance
Increased 2011 financial guidance February 10 May 12 Q1’11 Y/Y Guidance Guidance Revenues $3,882M 1.0% 1% to 2% 9% to 11% EBITDA $1,505M 6.4% 2% to 4% 8% to 10% Margin 38.8% 2.0 pts Capital Intensity 13.3% (1.8 pts) ~16% No change Adjusted EPS $0.72 18.0% $2.90 to $3.00 $2.95 to $3.05 Free Cash Flow
Slide 8: Solid capital markets execution
Solid capital markets execution • Strong investment grade credit ratings with stable outlooks Strong credit profile • Net debt to Adjusted EBITDA maintained below 2.0x • Over $2.1B of cash and credit facilities post-CTV closing • Accessed $3B of low-cost debt since Nov’10 Substantial liquidity – Iss
Slide 9: Increasing returns to shareholders
Increasing returns to shareholders Annualized common dividend per share Share buyback program (Dec. 2008 to Dec. 2010) Amount ($) ~$1.5B 42% $2.07 $1.97 Shares repurchased $1.83 56.2M $1.74 and cancelled $1.62 Up 10¢ $1.54 $1.46 Average price per $26.43 share repurchased Q4’08 Q1’09 Q3’09 Q1’10 Q3’1
Slide 10: Strategic imperatives paying dividends
Strategic imperatives paying dividends Total shareholder returns Dec. 12, 2008 – Jun 7, 2011 108.6% 65.3% 22.5% 11.0% 34.9% 25.6% Total shareholder return of ~109%, including 6 dividend increases, since December 2008 10
Slide 11: Summary: Strong start to year
Summary 9 Strong start to year • Strong financials with continued wireless momentum and CTV earnings accretion 9 Key 2011 priorities support our 5 Strategic Imperatives • Maintain wireless market share momentum • Scale IPTV and leverage to drive triple-play household penetration • Capture strategic