Slide 1: SFR Investor Presentation March 2010
SFR Investor Presentation March, 2010 1
Slide 2: Agenda
AGENDA 1 Integrated fixed/mobile operator with strong assets 2 Growth opportunities 3 2009 performance overview 2
Slide 3: Agenda
AGENDA 1 Integrated fixed/mobile operator with strong assets 2 Growth opportunities 3 2009 results overview 3
Slide 4: SFR is an integrated fixed/mobile operator with strong assets and opportunities of value creation
SFR is an integrated fixed/mobile operator with strong assets and opportunities of value creation 1 Generating scale effects due to the increased size of the SFR group 2 Promoting a single brand, for all offers and customers 3 Capitalizing on large customer bases both on mobile and fixed 4 Leveragin
Slide 5: SFR, global operator with strong positions on all segments
SFR, global operator with strong positions on all segments SFR covers all segments of the Consumer Enterprise Wholesale French telecoms market 20.4m mobile customers, 140k enterprise with 73% postpaid customers Addressing 25m customers 4.4m broadband Internet 200 operators and customers 8 MV
Slide 6: A strong multi-channel distribution and customer support
A strong multi-channel distribution and customer support A strong distribution network providing enhanced proximity and quality of service for our customers 800 “espace SFR” distributing both mobile and fixed offers Evolution of “espace SFR” stores 765 800 800 665 730 590 2004 2005 2006 2007 200
Slide 7: Online at the core of customer relationships
Online at the core of customer relationships All customer relationship activities go Share of online transactions in sales online 15% Sales, selfcare, e-billing, online assistance X2 10% Enhanced customer experience 5% Increased flexibility Multi-channel shopping combining online and 0% 20
Slide 8: 1st alternative broadband infrastructure in France
1st alternative broadband infrastructure in France 3G/3G+ network coverage at end 2011 (98% pop. coverage target) Leading mobile broadband network 81% population coverage in 3G/3G+ at end 2009, extending to 98% by end 2011 7.2 Mbps HSDPA deployed over 100% of 3G network 2m WiFi hotspots Th
Slide 9: Leveraging synergies between fixed and mobile networks
Leveraging synergies between fixed and mobile networks Objectives: Off-loading traffic to the fixed network WiFi: “Always best connected” application facilitating seamless Increase network capacity to roaming on SFR’s 2m WiFi hotspots for 3G dongles and webphones manage mobile data traffic gro
Slide 10: Agenda
AGENDA 1 Integrated fixed/mobile operator with strong assets 2 Growth opportunities 3 2009 performance overview 10
Slide 11: Growth in broadband
Growth in broadband CLIENT BASES TRAFFIC REVENUES End 2008 End 2009 (2009 vs. 2008) (Q4 09 vs. Q4 08) BROADBAND Webphones 0.1m x11 1.1m MOBILE x3 +31% mobile data mobile data traffic growth revenues growth PC 321k x2 664k Consumers BROADBAND 3.9m +15% 4.4m (households) +25% +9% FIXED fixed data fixe
Slide 12: Focus on mobile data services
Focus on mobile data services Fast adoption of webphones: 1.1m user base as of end 2009 Growing choice of devices offered to customers ~15/20% of gross adds 8% penetration in postpaid base April Oct. Nov. March Q2 2010 Q4 2010 2009 2009 2009 2010 Applications by SFR SFR SFR TV SFR WiFi Mon Com
Slide 13: Focus on IPTV services
Focus on IPTV services IPTV IPTVsubscribers subscribers 2m IPTV users or 45% of the ADSL customer base 2.0m +58% IPTV services penetration driven by the 1.3m commercial success of the neufbox triple-play offer and pursuit of unbundling Dec. 08 Dec. 09 TV More than 140 channels included and mor
Slide 14: Growth in Enterprise driven by converged fixed/mobile propositions
Growth in Enterprise driven by converged fixed/mobile propositions Common fixed / mobile Enterprise customers Integrated solution for SMEs: “Pack Business” Packaged quadruple-play offering % total Enterprise customer base 28% Broadband Internet 30% Switchboard access +6pts 22% 20% Fixed phone lines
Slide 15: Agenda
AGENDA 1 Integrated fixed/mobile operator with strong assets 2 Growth opportunities 3 2009 performance overview 15
Slide 16: SFR 2009 Highlights
SFR 2009 Highlights Execution of the integration plan in less than 12 months Positive results Excellent commercial performance in contract customer growth in 2009 for delivered following the acquisition of both broadband Internet (#1 in ADSL net adds in Q4) and mobile (#1 in Neuf Cegetel postpai
Slide 17: Strong commercial performance for SFR in 2009 in Mobile
Strong commercial performance for SFR in 2009 in Mobile… Postpaid net adds : SFR # 1 in postpaid customer recruitment in 2009 Postpaid net adds market shares Market share (%) 50% 2009: 36% 2008: 29% 39% 40% 40% 35% 32% 31% 32% 26% 30% 25% 20% 10% 0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 So
Slide 18: … as well as in Fixed Broadband Internet
… as well as in Fixed Broadband Internet Broadband Internet net adds : ~30% net adds market share maintained for 5 consecutive quarters ADSL net 2009: 31% adds market 40% share (%) 2008: 14% 35% 33% 31% 31% 30% 27% 20% 14% 9% 10% 4% 0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Launch of the «
Slide 19: Control of Opex
Control of Opex OPEX trends YoY growth 100% Commercial Investment in acquisition and retention costs +6% to support strong commercial results and launch costs of iPhone in April 2009 Interconnection Interconnection costs growing due to the costs success of abundance offers (voice, data, +7% cont
Slide 20: Control of CAPEX
Control of CAPEX CAPEX trends CAPEX trends 1 593 m€ 1 441 m€ Increase in fixed CAPEX in 2009 driven by Variable (i) strong growth in ADSL sales, which Capex translate into 370 m€ variable CAPEX (23%) Fixed & 574 m€ 828 m€ (ii) and close to 150 m€ investment in fiber broadband (40%) Fiber Fixed (52
Slide 21: Appendices
Et le monde est & vous. 4 APPENDICES 21
Slide 22: Financial figures
Financial figures In euro millions - IFRS 2009 2008 Change Revenues 12,425 11,553 + 7.6% Mobile 8,983 8,990 - 0.1% Broadband Internet & Fixed 3,775 2,882 + 31.0% Intercos (333) (319) EBITDA 3,967 3,958 + 0.2% Mobile 3,306 3,501 - 5.6% Broadband Internet & Fixed 661 457 + 44.6% EBITA 2,530 2,542 - 0.
Slide 23: KPI
KPI 2009 2008 Change MOBILE Customers (in '000)* 20,395 19,652 + 3.8% Proportion of postpaid clients* 72.6% 69.1% +3,5 pts 3G customers (in '000)* 8,386 5,934 + 41.3% Market share on customer base (%)* 33.2% 33.9% -0,7 pt Network market share (%) 34.9% 35.8% -0,9 pt 12-month rolling blended ARPU (€/
Slide 24: Detailed revenues
Detailed revenues IFRS 2009 2008 % 2008 % Change on in euro millions Actual Actual Change comparable a comparable basis* basis* Outgoing revenues net of promotions 6,939 82% 6,953 81% - 0.2% 6,962 81% -0.3% Mobile incoming 963 11% 897 10% + 7.4% 897 10% Fixed incoming revenues 315 4% 393 5% - 19.8%