Proximus Sa · EURONEXT:PROX
Proximus Sa — Belgacom — Q4 2013 Earnings Presentation
85 slides from Proximus Sa's earnings presentation, Mar 18, 2014
Slide 1: Belgacom Presentation Q4 2013 results
Belgacom Presentation Q4 2013 results Group financials ‘13 Performance indicating Outlook ’14 – slide 31 Executive summary – slide 4 highlights ‘13 Network & Simplification – slide 32 Mobile: Group overview – slide 17 Group Revenue – slide 5 Detailed segment results CBU Service Revenue – slide 18 CB
Slide 2: Cautionary Statement
Cautionary Statement “This communication might include some forward-looking statements, without limitation, regarding Belgacom’s financial or operational results, certain strategic plans or objectives, macro-economic trends, regulation, future market conditions and other risk factors. These forward-
Slide 3: Group Financials
Group Financials Executive summary – slide 4 Group Revenue – slide 5 CBU Revenue – slide 6 EBU Revenue – slide 7 Operating expenses - slide 8 FTE evolution – slide 9 EBITDA – slide 10 Capex – slide 11 FCF/FIN POS – slide 12-13 P&L – slide 14 Ray Stewart Balance sheet – slide 15 Slide 3
Slide 4: Executive summary Q4 2013
Executive summary- Q4 2013 - Group revenue: € 1,582m; -3.8% YoY Group - CBU and EBU mobile revenue erosion softens Revenue - BICS revenue down on expiration of temporary contracts - € 20m capital gain from building sales (network simplification) - Group ebitda: € 413m, -3.7% YoY or -8.3% one-offs ex
Slide 5: Group revenue impacted by regulation and mobile pressure
Group revenue impacted by regulation, pressure on mobile in segments ; and in Q4 by lower BICS revenue -3.8% reported +20 1,644 -15 -19 -14 +3 -2 1,582 -29 Q4 -5.0% Like-for-Like 2013 (in mio €) Q4 2012 Net Impact Regulatory Underlying Underlying Underlying BICS Intra-group Q4 2013 One-offs impact C
Slide 6: CBU revenues
CBU revenues under pressure by mobile disruption, partly compensated by solid fixed revenue and contribution of Scarlet and Tango 581 7 4 -6 3 -5 556 -24 -4 -4.2% Q4 reported* 2013 (in mio €) Q4 2012 Regulatory Fixed Voice Fixed Data TV Mobile Service Subsidiaries Terminals & Q4 2013 impact Revenue
Slide 7: EBU revenues
EBU revenues pressured by mobile disruption and roaming regulation 579 -8 -4 -1 557 -7 -3 -3.8% Q4 reported* 2013 (in mio €) Q4 2012 Regulatory Fixed Voice Fixed Data ICT Mobile Service Terminals & Q4 2013 impact Revenue Others *like-for -like idem, no one-off effects in Q4 -4.2% reported 2,294 2 FY
Slide 8: Good cost management
Good cost management Operating expenses (total of HR & non-HR) slightly down vs. 2012 Quarterly Non-HR expenses (€ million) Quarterly HR expenses (€ million) 270 -5.0% 310 +1.7% 290 25 0 256 290 290 288 270 230 244 250 278 281 278 283 282 226 224 225 210 230 19 0 217 218 216 210 190 170 170 150 150
Slide 9: FTE evolution
FTE evolution Belgacom headcount in FTE 25000 Estimated cash-out for Telindus Jan ‘12 : The termination benefits PTS -6,300 FTE +2,600 FTE Phone House 20000 +518 FTE* € million 2014 51 2015 21 BeST -4,160 FTE 2016 7 15000 2006-2012 15,699 2017 6 Tutorship & FMS -3,900 2018-2033 21* FTE (* Cumulative
Slide 10: Group EBITDA impacted by regulation and mobile margin pressure
Group Ebitda impacted by regulation and mobile margin pressure. Q4 2013 showing slight improvement from previous quarters +16 -3.7% reported -5 +4 429 -17 Q4 +8 -1 413 2013 -8.3% -17 -4 (in mio €) Like-for-Like Q4 2012 One-offs One-offs Regulatory Underlying Underlying Underlying Underlying BICS Q4
Slide 11: Capex: EUR 852 million invested
EUR 852 million invested, or 13.5% of Group revenue, spectrum license excluded Increased network investments vs. 2012: to maintain network superiority on mobile speed and coverage, substantially increased bandwidth on fixed network via dlm and vectoring technology making operations leaner thro
Slide 12: FY'13 Free Cash Flow of € 505 million
FY’13 Free Cash Flow of € 505 million Q4 Free Cash Flow (in mio € ) Belgacom generated € 95m of FCF in Q4’13, or € -59m YoY. Main drivers for the FCF decline are : 154 - lower EBITDA, 95 - higher cash paid for Capex - Higher cash paid for income tax - partly offset by a favorable evolution in workin
Slide 13: Sound financial position
Sound financial position • Net financial debt at € 1,815m, € 214m higher versus end 2012 • The outstanding long term financial gross debt amounted to € 1.9Bio • Credit ratings: Standard & Poor’s A; Moody’s A1 – both stable outlook ( 7 01) 50 5 ( 1 ,601) 25 ( 1 ,815) ( 38) ( 6) Net debt FCF Dividends
Slide 14: Group – quarterly P&L
Group – quarterly P&L * The 2012 financial figures have been restated after the adoption of the IAS 19R revision VAR in mio € Q112 Q212 Q312 Q412 FY12 Q113 Q213 Q313 Q413 FY13 Q4/Q4 VAR FY Restated* Revenues (1) 1,5 8 8 1,6 11 1,6 20 1,6 44 6 ,46 2 1,5 8 6 1,5 8 3 1,5 6 8 1,5 8 2 6 ,318 -3.8 % -2.2%
Slide 15: Belgacom consolidated balance sheet
Belgacom consolidated balance sheet As o f 31 D e ce mb e r As o f 31 D e ce mb e r (EUR millio n) 2 0 12 Re s tate d 2 0 13 NO N-CURRENT ASSETS 6,19 2 6,2 5 4 Goodwill 2,339 2,320 Intangible assets with finite useful life 1,097 1,185 Property, plant and equipment 2,467 2,558 Investments in associat
Slide 16: Consumer Business Unit highlights '13
Consumer Performance Business indicating Unit highlights ‘13 Dominique Leroy Mobile: Group overview – slide 17 CBU Service Revenue – slide 18 CBU postpaid – slide 19 CBU prepaid – slide 20 CBU re-pricing – slide 21 EBU operationally – slide 22 EBU Service Revenue – slide 23 Fixed – slide 24 Converge
Slide 17: Mobile service revenue decline slowing in Q4'13
Mobile service revenue decline slowing in Q4’13 G roup Mobile Service Revenue - Reported : i.e. the YoY variance -5% -4% between the sum of the Group Mobile Voice and Mobile Data Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 revenue -1% -3% -5% -10% Reported - On comparable basis: i.e. the Reporte
Slide 18: CBU Mobile Service Revenue
CBU Mobile Service Revenue Mobile Service revenue showing first signs of recovery in Q4’13, some mobile disruption effects started to annualise Mobile service revenue showing Evolution re-priced postpaid first signs of recovery in Q4’13 customers 0% CBU Mobile Service Revenue -2% Q1'12 Q2'12 Q3'12 Q
Slide 19: CBU Mobile Postpaid
CBU Mobile Postpaid We increased our Postpaid subscriber base by >200K in 2013. Mobile disruption had significant ARPU impact, though somewhat stabilising. postpaid churn back to solid Postpaid net adds acceptable levels Blended postpaid ARPU showing ‘out of bundle’ revenue dropped with ~50% some st
Slide 20: CBU Mobile Prepaid
CBU Mobile Prepaid In a shrinking prepaid market the customer loss is slowing down. Prepaid ARPU is less impacted. Prepaid loss continued, though is Prepaid churn remains high with new slowing since its peak in Q1’13 telco law removing postpaid barriers Prepaid ARPU impact less significant Slide 20
Slide 21: CBU Mobile price plans became more abundant
CBU Mobile price plans became more abundant Some examples Q3-13 Q3-13 Q3-13 Distribution per commitment In Feb ’14 Belgacom opened its 4G-network to all its customers, while New in continuing to valorise its network investments through speed tiering. 2014 >50 € On the same day, Belgacom introduced a
Slide 22: EBU mobile differentiation strategy successful
EBU mobile differentiation strategy successful mobile churn under control & subscriber base increased with >140k cards % EBU Packs with mobile voice component Continued customer growth 26% in a highly competitive, saturated market 8% Mobile Acquisition EBU (K cards) Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'
Slide 23: EBU mobile revenue under pressure
EBU mobile revenue under pressure further erosion to be controlled mobile service revenue showing first adv. data revenue showing upward trend signs of recovery in Q4’13 with regulation impact lessening EBU advanced data YoY % growth EBU Mobile Service Revenue -5% Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
Slide 24: Solid performance of fixed products
Solid performance of fixed products Broadband customer evolution net adds total 1,677 Other 6% Belgian Fixed internet market 28 1,647 1,652 1,660 1,637 1,700 23 1,600 Belgacom 18 44% still growing, but at slower pace Internet penetration @ 79% 1,500 13 17 1,400 Cable 11 10 Belgacom market shar
Slide 25: Our convergence strategy remains Belgacom's main force
Our convergence strategy remains Belgacom’s main force…. Pack evolution % Packs with mobile voice component Packs evolution net adds total 1,295,000 1,314,000 25% 1,278,000 1,237,000 1,259,000 1,300,000 1,214,000 80 1,177,000 1,143,000 1,200,000 60 1,100,000 13% 1/4th of 54 1,000,000 Packs 40 includ
Slide 26: Strategic priorities
Strategic priorities ‘Fit for Growth’ overview – slide 27 Invest – slide 28 Transform – slide 29 Growth – slide 30 Ray Stewart 2014 Outlook – slide 31 Slide 26
Slide 27: Strategic Priorities: 'Fit for Growth'
Strategic Priorities : ‘Fit for Growth’ Grow Back to sustainable growth Customer Efficient Experience Organisation Good to Transform Gold culture Brand Simplification differentiation Leader in convergent services Invest Seamless network and IT Slide 27
Slide 28: Invest
Invest To build the foundation of our next wave of growth Access • Maintain mobile leadership and further deploy 4G networks • Push legacy copper network to max capabilities (vectoring, DLM) • Gradually introduce FTTH • Push digital (e-sales, e-services) IT and • Renew selling and ordering systems •
Slide 29: Transform
Transform • Product usage experience (TV Everywhere, FON, …) Develop superior • Touchpoints experience (call centers, technicians, …) customer experience • End-to-end process (first time right) • 360°customer communication quality • Products and services portfolio Simplify to structurally • Network
Slide 30: Grow
Grow • Exploit mobile leadership • Improved broadband experience Regain • Roll-out fiber in greenfield and gradually in brownfield to offer the market shares ultimate broadband experience • Superior customer experience (web, shops of the future, …) • Deliver solution-centricity to unlock value in EB
Slide 31: 2014 Outlook
2014 Outlook Revenue: Group EBITDA: Group Capex: • Core business (excl. BICS): 1% to • Decline by • About 2% revenue decline, assuming 3%-4% €900 m continued stability in the Belgian Mobile market. • BICS: 2014 revenue could be 10% to 15% lower versus 2013, though should only have a minor impact on
Slide 32: Network and Simplification
Network and Simplification Coverage overview – slide 33 Spectrum – slide 34 Network & simplification strategy - slide 35 Invest in Mobile – slide 36 Invest in Fixed – slide 39 Ray Stewart Transform to reduce cost – slide 44 Slide 32
Slide 33: Convergence strategy enabled by network quality
Convergence strategy enabled by network quality Fixed Network Mobile Network1 Wi-fi Hot Spots @ 99.85% DSL @ > 99% (among world leaders) 3G & 2G coverage @ ~800,000 FON HD spots in Belgium @ ~ 89% VDSL @ 50% > 93% TV 4G coverage coverage 4G peak 57 Mbps 4G avg. 19Mbps ~13 million On avera
Slide 34: Spectrum: Belgian situation
Spectrum: Spectrum -The Belgian Belgian situation situation 900 MHz & 1800 MHz 2100 MHz 2600 MHz 800 MHz • 900 MHz & 1800 MHz • Used for 2G, 3G and 4G • Used for 3G • Will be used for 4G • Will be used for 4G • Belgian operators allowed • Proximus, Mobistar & Base • Out of 5 candidates, 4 • Out of 3
Slide 35: Network & simplification strategy
Network & simplification strategy Invest and transform to return to growth Strategic focus is to invest in our Access Networks, in Simplicity and in better Customer Service Invest in Mobile Invest in Fixed Transform to reduce cost Accelerate simplification of Maintain our mobile network Push our leg
Slide 36: Invest in Mobile
1 Invest in Mobile Maintain mobile network leadership Belgacom is determined to maintain its mobile leadership through continued investment Best mobile 3G network Best mobile 4G network • Significantly better 3G indoor coverage in comparison with • First to reach 50% outdoor population coverage and
Slide 37: Invest in Mobile: importance of Brussels
1 Invest in Mobile Zoom-in: importance of Brussels in Mobile business High business importance of large urban area of Brussels with nearly a quarter of all data traffic of Belgacom driven by this area. Therefore, important to be a first mover in 4G seen high market potential Best mobile 3G network i
Slide 38: Invest in Mobile: best mobile experience
1 Invest in Mobile Best mobile experience for our customers Speed tiering with 4G for everyone Seamless convergence of network connectivity • All customers with 4G capable devices will have access to • Employ our fixed assets for better mobile experience with 4G through 2 different experience levels
Slide 39: Invest in Fixed
2 Invest in Fixed Dynamic investment track ahead of us Push our legacy copper network to maximum capabilities while gradually preparing for the introduction of Fiber-To-The-Home (FTTH) in Brownfield areas in function of copper network renewal Speed evolution in Mbps 2014 to >2018 6 FTTH in Brownfiel
Slide 40: Invest in Fixed: DLM & Vectoring
2 Invest in Fixed Step 1 Dynamic Line Management & Step 2 Vectoring After 2.5 years of intensive engineering efforts in close collaboration with Alcatel-Lucent the Vectoring technology has been proven to work on our network. Mass roll-out started at beginning of 2014 Fast track Dynamic Line Manageme
Slide 41: Vectoring working live in our network
2 Invest in Fixed Zoom-in: Vectoring working live in our network today Belgacom is first in the world with nationwide activation of the Vectoring technology on an existing VDSL2 network for a significantly better broadband experience Powerful vectoring technology Results from the technical field tri
Slide 42: Vectoring optimization & DLM on top
2 Invest in Fixed Step 3 Vectoring optimization & Step 4 DLM on top Further optimization of Vectoring technology Dynamic Line Management on top of Vectoring START START Q1 2015 Q2 2015 Extend Vectoring capabilities beyond 400 meter through Belgacom is the only operator with the in-house further opti
Slide 43: FTTH in new zonings & brownfields
2 Invest in Fixed Step 5 FTTH in new zonings & Step 6 FTTH in Brownfields Belgacom will deploy Fiber-To-The-Home (FTTH) deployment in new residential zonings and will gradually and selectively introduce FTTH in function of the step-by-step renewal of our copper network FTTH in new zonings FTTH in br
Slide 44: Transform to reduce cost
3 Transform to reduce cost Network simplification on track with 650.000 lines migrated Network Simplification aims at simplifying our network & decreasing operational costs and generates savings as of year one growing to 35M€ recurrent savings as from 2018 Fixed Voice consolidation Fixed Data consol
Slide 45: IT enablers for higher efficiency & simplicity
3 Transform to reduce cost IT enablers for higher efficiency & simplicity Employ new IT enablers to simplify products & processes for better customer service & higher efficiency IT to enable a converged customer experience IT to enable higher efficiency & simplicity Full convergence of IT architectu
Slide 46: Q4 2013 results per business unit
Belgacom Company presentation Investor Relations Q4 2013 results per business unit Consumer Business Unit (CBU) Enterprise Business Unit (EBU) Service Delivery Engine &Wholesale (SDE&W) Staff and Support (S&S) Belgacom International Carries Services (BICS) 46 46 Slide
Slide 47: Consumer Business Highlights
Consumer Business Highlights Our convergence strategy remains successful and is materialised through more value for the customer and new solutions. Despite a rough 2013 on the mobile market, we returned to customer growth for postpaid thanks to strong acquisition campaigns and a persistent churn man
Slide 48: Consumer - P&L
Consumer - P&L 61 0 CBU revenue (EUR mio) Q4’13 Revenue -4.2% lower, reg. impact Q4 ’13 of €-6m (-1.0%) -4.2% 59 0 – controlled decrease in Mobile revenue, only partly offset by the 587 continued firm performance of the Fixed revenues &Tango. 581 57 0 577 575 55 0 567 556 – multi-brand strategy st
Slide 49: Consumer - Fixed voice
Consumer - Fixed voice Fixed Voice price increase results in higher ARPU, line erosion largely explaining revenue decline Fixed voice revenue (EUR mio) 14 0 -4.5% Fixed Voice benefitted from price changes, bringing relief 13 0 12 0 to the declining Voice revenue resulting from the yoy line 11 0 lo
Slide 50: Consumer – Mobile Voice
Consumer – Mobile Voice Postpaid adding 52,000 net adds to a growing Mobile customer base; controlled Mobile Voice revenue decline Mobile voice revenue (EUR mio) Q4 ‘12 -21.8% yoy; a touch better versus the -23.7% in Q3’13 16 0 -21.8% 14 0 Besides regulation, largely the cumulative result of the
Slide 51: Consumer - Fixed Data
Consumer - Fixed Data Strong Fixed Internet revenue grew 4.9%, driven by price adjustments and larger customer base Fixed data revenue (EUR mio) +4.9% Revenue growth driven by growing customer base and 92 90 88 price changes of Feb and July ‘13. 90 89 89 86 84 82 85 85 85 87 FY ’13, CBU recorded
Slide 52: Consumer - Mobile Data
Consumer - Mobile Data Roaming regulation and the mobile customer evolution feeding further Mobile data revenue decline Mobile data revenue (EUR mio) -3.9% Mobile Data revenue impacted by regulation, the yoy 12 0 SMS Adv Data 100 97 98 95 96 lower mobile customer base and more abundant offers. 97
Slide 53: Belgacom TV
Belgacom TV Firm TV revenue growth through larger TV customer base and higher ARPU TV revenue (EUR mio) +11.3% TV revenue +11.3% YoY driven by continued growth of 69 subscribers 64 66 67 61 62 55 57 235 +13.3% 267 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 TV growth & EOP (000) 1,386 1,412 1,428 1,44
Slide 54: Tango Luxembourg
Tango Luxembourg Tango revenue (EUR mio) +8.2% 28 32 32 33 Q4 2013, Tango’s revenue +8.2% YoY to € 33m. 30 29 27 28 28 114 +11.2% 127 FY ’13 € 127m revenue, up 11.2% YoY Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Tango mobile customers EOP (000) Continued growth in mobile customer base 274 278 28
Slide 55: Enterprise Business Highlights
Enterprise Business Highlights EBU stood its ground in 2013, which was a very challenging year, marked by a difficult economic & competitive environment. EBU continued mobile customer growth through network differentiation and competitive pricing. We see first signs of recovery on mobile service rev
Slide 56: Enterprise – quarterly P&L
Enterprise – quarterly P&L EBU revenue (EUR mio) Slight improvement from previous Q’s like-for-like* -3.8% 62 0 57 0 – Regulation impact of € -8m (-1.4%) in Q4’13 52 0 579 576 560 579 554 554 557 – pressure on mobile revenue from more abundant offers 533 47 0 – rate of Mobile revenue decline showe
Slide 57: Enterprise - Fixed Voice
Enterprise - Fixed Voice Stable Fixed line erosion, while Fixed Voice ARPU is slightly up Fixed voice revenue (EUR mio) -4.3% Fixed voice revenue impacted by lowered Fixed-to-Mobile rates on 1 Jan ’13 and continued line erosion 14 0 13 0 12 0 124 120 Price increases gave some relief 118 119 118
Slide 58: Enterprise - Mobile Voice
Enterprise -- Mobile Enterprise Mobile Voice Voice Mobile Solid Voice growth, customer revenuerevenue declineunder showing some pressure sequential due improvement to pricing and regulation on the back of continued strong customer growth 13 0 Mobile voice revenue (EUR mio) Revenue -13.4%; showing
Slide 59: Enterprise - Fixed Data
Enterprise -- Fixed Enterprise Fixed Data Data Fairly stable Fixed Data revenue in spite of migrations to Explore platform Slightly positive revenue trend continued; Internet customer base fairly stable and uptake of converged Packs with Internet 10 2 Fixed data revenue (EUR mio) Q4’13 Fixed Data
Slide 60: Enterprise – Mobile Data
Enterprise – Mobile Data Fourth quarter mobile data revenue variance showing strong sequential improvement, nearly stable year-on-year Mobile data revenue (EUR mio) Q4’13 Mobile Data revenue stable YoY 80 SMS ADV Data -0.3% – Q4’13 non-SMS Data revenue € 30m, +8.5%, improving vs previous Q’s by lo
Slide 61: Enterprise - ICT
Enterprise –- ICT Enterprise ICT Seasonally ICT higher revenue up fourth-quarter by 6.1% on like-for-likeICT revenue compared to basis previous quarters -0.1% Q4’13 ICT revenue stable YoY at € 186m 692 +1.3% 701 – Seasonally higher in Q4 – Impacted by difficult economic climate, with customers del
Slide 62: Service Delivery Engine & Wholesale – P&L
Service livery & Delivery Wholesale& Wholesale - P&L – P&L 98 SDE&W revenue (EUR mio) -4.7% Slowing wholesale revenue 93 88 – Lower broadband volumes, partially compensated for by the commercial wholesale offer to Base. 83 78 78 73 68 76 75 76 75 74 73 – Growth in Roaming volumes not entirely comp
Slide 63: Staff & Support – P&L
Staff & support Staff Support -– P&L P&L S&S Revenue(EUR mio) Q4’13 revenue of € 25m, including € 20m capital gain on +125.1% 30 25 the sale of technical buidlings * 25 20 34 +74.4% 60 15 18 FY ’13 revenue of € 60m, including capital gains of € 31m 10 5 9 7 7 11 7 10 resulting from the sale of t
Slide 64: BICS
Consumer Business BICS Unit Dominique Leroy Products and services – slide 65 Global Presence Network – slide 66 Market Segments – slide 67 Voice – slide 68 Mobile Data – slide 69 Going Forward – slide 70 Q4 results – slide 71 Slide 64
Slide 65: BICS Products and Services
BICS Products and Services Sending Receiving End user Service End user Local partner Providers • Fixed Operators • Fixed Operators • Mobile Operators • Mobile Operators • MVNOs • OTTs Wholesale only, • xSPs • xSPs International only • Voice Collecting & terminating international voice traffic all ov
Slide 66: Global Presence Network
Global Presence Network • 100+ Points of Presence (PoPs) • Ownership in 40 submarine cables • Satellite connectivity to “hard to reach” countries Slide 66
Slide 67: Market Segments
Market Segments Voice Mobile Data Capacity • Market size • 2012 revenue 24 B€ 2 B€ 3 B€ • CAGR bottom 1% 9% n.a. line (mid-term) • Profitability 3-5% 30-40% >20% (EBITDA margin) • CAPEX intensity Low Low High • Labour intensity Low Low Low • BICS Position Leader - #2 Leader - #2 “Niche” Slide 67
Slide 68: Voice
Voice commodity in declining trend, managed to protect margins • Part of business is volatile: 2014 revenue to decline YoY due to end of commercial agreement of limited duration -• Growth of Peer to Peer VoIP (Skype) impedes market volume growth • Termination rate downward trend pressures revenue an
Slide 69: Mobile Data
Mobile Data volume growth but price pressure • Increasing competition in attractive segment. Price pressure on the core services - • Messaging and Roaming transactions still growing steadily • Opportunities provided by new segments (OTT, MVNO), new applications (Machine + to Machine, Application to
Slide 70: Going Forward
Going Forward create more value Extend the product portfolio with a set of value added Leverage on the footprint and Improve the mix with lower services : the customer base (400+ GSM revenue but high margin business intelligence, fraud operators) products protection and remediation, advanced roaming
Slide 71: International Carrier Services – P&L
International Carrier Services International Carrier Services – P&L P&L 46 0 BICS Revenue (EUR mio) -6.8% Revenue Q4’13 down 6.8% from strong comparable base 44 0 – lower Voice traffic towards the Asian region (ended agreements) 437 42 0 430 40 0 38 0 409 424 417 413 401 – Reduced EU MTRs, negativ
Slide 72: Other topics
Consumer Business Other topics Unit Dominique Leroy Shareholder remuneration & structure – slide 73 Pricing – slide 74 Regulation & legal – slide 80 Belgian economy – slide 84 Slide 72
Slide 73: Shareholder remuneration & structure
Shareholder remuneration & structure For 2013: a total dividend of EUR 2.18 gross per share, of which € 0.50 per share was paid in December 2013 and € 1.68 per share is payable in April 2014: •Ex-coupon date: 22 April 2014 •Record date: 24 April 2014 •Payment date: 25 April 2014 For the next 3 years
Slide 74: Pricing – Fixed products
Pricing – Fixed products Classic Happy Time XL No Limit National Anytime Happy time international € 20.99 / month € 20.99 / month € 30.67 / month € 21.99 / month Note: Free to FIX & to MOB during Free to FIX ,to MOB & to Lower tariffs during peak OffPeak & Weekend Free to FIX Anytime most European c
Slide 75: Pricing – Mobile Voice (Postpaid)
Pricing – Mobile Voice (Postpaid) Easy+ 10 Easy+ 15 Easy+ 25 Easy+ 45 € 10 / month € 15 / month € 25 / month € 45 / month For non- € 10 /month PACK € 20 /month PACK € 35 /month PACK 20 min + 150 min + Smartphone unlimited SMS unlimited SMS 240 min unlimited SMS Unlimited min unlimited SMS users € 0.
Slide 76: Pricing – Mobile Voice (Prepaid)
Pricing – Mobile Voice (Prepaid) Reload bonus For each reload within 31 days, with Pay&Go Easy you get : For non- Pay & Go Easy • Bonus 1 (towards fix and Mobile): € 10 reload= 30min, € 15 reload= 60min, € 25 € 0.27/ min Smartphone € 0.12 / SMS reload= 90min, € 50 reload= 200 min € 0.25 / MMS OR Bon
Slide 77: Pricing – Mobile Data
Pricing – Mobile Data Standard Pay & Surf € 0.5 / MB (prepaid ) Or € 4.99 50 MB € 0.85 / MB € 9.99 500 MB (postpaid) General Prepaid Only GSM Only Laptop & Tablet Only iPad Only Laptop Only Prepaid Only Prepaid Only Pay & Surf Daily Comfort Favorite Favorite for iPad Pay & Surf for iPad € 4.99 /
Slide 78: Pricing converged PACKS
Pricing converged PACKS - examples of possible combinations TV + Fix TV + Internet € 35.75 / month € 53.95 / month Fix+ Internet TV + TV + Fix + Internet TV € 53.95 / month Classic (incl. Happy TV Everywhere Time XL) € 62.95 / month + Classic (incl. Happy Internet Comfort Time XL and Happy TV TV + M
Slide 79: Scarlet pricing
Scarlet pricing Positioning Scarlet as no frills brand, with very attractive pricing for ‘price seekers’ €8 € 18 € 28 125 min + 500 min + 1000min + 250 SMS 500 SMS 1000 SMS +50 MB incl +250 MB incl +500 MB incl € 0.16 / min € 0.16 / min € 0.16 / min € 0.09 / SMS € 0.09 / SMS € 0.09 / SMS € 0.20 / MM
Slide 80: Regulation Overview financial impact
Regulation Overview financial impact Outlook Estimated impact Regulation impacts FY 2014 Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 (Decrease in EUR million) Revenue ~ € 10m €10m €10m €9m €10m €38m MTR EBITDA ~ € 5m €1m €1m €0m €1m €2m Roaming Revenue ~ € 25m €15m €19m €7m €5m €46m (i.e. Voice, SMS and
Slide 81: Regulation – MTR
Regulation – MTR • Luxembourg - Luxembourg regulator implements symmetrical MTR at 0.98 €cts, down from 8.2 €cts – On 16 January 2014, the Luxembourg regulator, ILR, published its final decision concerning its review of the MTR market analysis. The three mobile operators (EPT, Tango and Orange) are
Slide 82: Regulation – Roaming
Regulation – Roaming Mobile voice and data-roaming: EU Roaming III Regulation regulation • Roaming III Regulation entered into force on 1 July 2012. • This regulation covers a ten-year period until 30 June 2022. • It imposed a further lowering of the existing regulated price caps, and extended the r
Slide 83: Regulation – Cable
Regulation – Cable Decision to open-up the Belgian Cable Network On 18 July 2011, the Belgian regulators published their final decision on broadband & broadcast regulation: – On the broadcast Market Each cable operator has ‘Significant Market Power’ (SMP) in its area a is submitted to the following
Slide 84: Macro economic environment
Macro economic environment Belgium & Euro area - prospects GDP growth forecast (%)1 Belgium Euro area Unemployment rate forecast (%)2 Belgium Euro area 12.2% 12.2% 1.9% 11.4% 1.1% 10.2% 1.4% -0.3% 0.0% 1.1% -0.6% -0.4% 8.7% 9.1% 7.2% 7.6% 2011 2012 2013 2014 2011 2012 2013 2014 Inflation forecast (%
Slide 85: For further information: Belgacom Investor Relations
For further information: Belgacom Investor Relations e-mail: investor.relations@belgacom.be Tel: +32 2 202 82 41