Proximus Sa · EURONEXT:PROX
Proximus Sa — Investor Presentation (August 2023)
52 slides from Proximus Sa's investor presentation, August 2023
Slide 1: Company presentation
Company presentation Proximus Group Version – August 2023
Slide 2: Table of content
Table of content • Why investing in Proximus • Who we are • Our brands & the markets we operate in • bold2025, a new 3-year strategy • Key figures Full Year 2022 & dividend • Contact information
Slide 3: Why investing in Proximus
Why investing in Proximus 03 3 Track record Sound financial Loyal and of strong position, Valuable growing strategic & attractive assets customer base execution dividend Nationwide high-quality Mobile & Strong, multi-branded market #Inspire2022 strategy Strong cost reduction Fixed networks, respecti
Slide 4: Who we are
Group 4 Who we are
Slide 5: Proximus is an established company, ready for the future
Proximus is an established company, 5 ready for the future 1930 1992 1994 2004 2006 2008 2015 2017 2021 2022 2023 Creation of RTT becomes Creation of Belgacom enters Strengthening ICT Multi-brand Belgacom Bics acquires Proximus Proximus acquires Agreement for the RTT Belgacom Proximus as the stock m
Slide 6: Our sense of purpose
6 Our sense of purpose Boldly building a connected world that people trust so society blooms
Slide 7: Our Governance structure
Our Governance structure 7 Shareholders Board of Directors General policy, strategy, supervises operational management. Audit & Nomination & Transformation Compliance Remuneration & Innovation Committee Committee Committee CEO & Executive Committee Operational management including, but not limited t
Slide 8: Our governance model: Board of Directors
Our governance model: Board of Directors 8 14 Board members 50% independent Stefaan De Clerck Martin De Prycker Cécile Coune Catherine Rutten Karel De Gucht Béatrice de Mahieu Joachim Sonne 6 Women / 8Men Chairman Board members are appointed at the AGM upon proposal by the Board of Directors after r
Slide 9: Our executive committee (the leadership squad)
Our executive 9 committee (the leadership squad) Guillaume Boutin CEO Jan Geert Mark Dirk Anne-Sophie Renaud Jim Antonietta Van Acoleyen Standaert Reid Lybaert Lotgering Tilmans Casteele Mastroianni Human Capital Network & Finance Corporate Enterprise Customer Consumer Digital & IT Lead Lead Wholesa
Slide 10: As a group, we employ 11,634 FTEs
As a group, we employ 10 11,634 FTEs Average Age pyramid 14,090 46YR (Proximus SA – end 2022) 13,391 12,932 o/w 8,616 13,627 Proximus SA 8% 54% 38% 11,532 11,634 Higher efficiency & 12,644 digitalisation 12,143 2,627 Women allowed for the Domestic headcount 10,577 10,427 5,988 to decrease.. Men 19 2
Slide 11: Shareholder structure
Shareholder structure 11 Situation 31/12/2022 Total number of shares Free-float Belgian Government Market Capitalization Dividend yield 338,025,135 42% 54% ~€ 2.9Bn ~13.3% Number of shares Number of shares Number of shares % shares % Voting rights % Dividend rights with voting rights with dividend r
Slide 12: Our brands and the markets we operate in
Group 12 Our brands and the markets we operate in
Slide 13: Our complementary brands meet the demands of a wide range of customers
Our complementary brands 13 meet the demands of a wide range of customers Domestic International Companies’ No frills Former The Proximus Operates in Best-in-class Fast growing premium offering, Mobile-only Group Benelux. international leader in brand, with Fixed and brand, telecom Specialised in wh
Slide 14: In the Residential market
In the Residential market, 14 PROXIMUS Brands Belgium • Cable player in North & 2/3 of Brussels • National player Flanders • Leader in North for Fixed • Challenger for Fixed in North • Leader for Fixed in South • National leader for Mobile Brussels 11.5 M c. inhabitants • National challenger for c.5
Slide 15: Our residential unit grew 2022 revenue by 2.4%
Our residential unit grew 2022 revenue by 2.4% 15 2.4% 2.6% 2,261 Increasing number of customers take Revenue 2,152 2,207 both Fixed and Mobile products. FY’22 of 2,261M€ 61.3% 64.4% 57.8% 2020 2021 2022 2020 2021 2022 2,823K Overall ARPC at 52.5€ in 2022; +1% YoY customers, Mobile Postpaid only Con
Slide 16: In Residential, fiber, pricing power, convergence & premium content drive growth
In Residential, the fiber commercialisation, pricing power, 16 convergent strategy & premium content drive growth Fiber commercialization Pricing power +2pp market share gains in fiber zones Price indexations of €3-4 on after 12m1 internet in January ‘23 >€7 ARPC uplift fiber vs. copper2 >15% less c
Slide 17: In the Business market, Proximus holds a solid position in Telco
In the Business market, Proximus holds a solid position 17 in Telco, and is challenger in a very fragmented IT market Belgium Main telecom competitors: Niche players International players • Maintains solid position in Telco Main IT competitors (fragmented market) market. • Belgian market leader for
Slide 18: The Business unit returned to growth in 2022
The Business unit returned to growth in 2022, 18 one year earlier than planned Revenue FY’22 of 1,894M€ +1.7% The B2B customers ≈ we service: 1,864 1,862 1,894 179 158 201 • Small enterprises 374 388 391 • Medium enterprises • Corporates Telco 1,305 1,312 1,295 IT Services IT Products Others 2020 20
Slide 19: Enabling players in the Wholesale market
Enabling players in the Wholesale market, 19 thanks to the open best network. Fixed B2C MVNO competitors: competitors: • The only national fix-mobile player, building the open fiber and 5G network of reference for Belgium. • Solid position in the Wholesale Fixed B2B telco B2B market, mobile competit
Slide 20: Proximus operates internationally through Telesign and Bics
Proximus operates internationally 20 through its subsidiaries Telesign and Bics Fast growing leader in digital identity Key competitors: services to internet properties, digital champions and cloud native businesses and with a growth path in programmable communications. Key competitors: Global leade
Slide 21: Telesign is a leading Authentication and Digital Identity player
Telesign is a leading Authentication and Digital Identity player 21 Business Global Sticky Blue Strong Excellent Overview Footprint Chip Customer Technological Financial Profile Base Moat Telesign offers solutions 65+ TOP across the full spectrum of end user account security, Countries with 8/10 Com
Slide 22: You interact with Telesign to…
You interact with Telesign to… 22 Social Detect bots and block fake users. Protect user accounts Media and send multifactor authentication text-messages. Detect synthetic identity fraud and strengthen KYC FinTech process. Defend against SIM Swap attacks. Send bill reminders and payment confirmations
Slide 23: BICS makes international communications possible
BICS makes international BICS is at the heart of international connectivity, 23 communications possible enabling the global mobility of people, applications and things wherever they are Revenue M€ Connecting 5+ billion mobile subscribers 1,132 66 Growth 964 999 37 43 Providing seamless cloud communi
Slide 24: Customers & partners work with BICS for…
Customers & partners work with BICS for… 24 Selection of our customers & partners Telco Enterprises Legacy Voice Allow Voice call delivery worldwide Deliver alert, reminder, notification messages sent by Messaging Enterprises (e.g. airlines company) to their consumers Core Roaming Enable travelers t
Slide 25: bold2025 Proximus' new 3-year strategy
Group 25 bold2025 Proximus’ new 3-year strategy
Slide 26: bold2025 strategy pillars
We deliver great value for through exceptional 26 our stakeholders strengths bold Act for an inclusive society & Roll out #1 gigabit network 2025 be sustainable in everything we do for Belgium Boldly building a Delight customers with Engineer technology assets connected world unrivalled experience t
Slide 27: On mobile, Proximus will continue its leadership via rapid 5G roll-out
On mobile, Proximus will continue its leadership and differentiate from competition via rapid 5G roll-out 27 5G population coverage 100% Acquired significantly more spectrum than competition Expand innovation capabilities e.g. slicing & low-latency Outphase 3G by the end of 2024 Ramp up benefits fro
Slide 28: Proximus ambitions to extend fiber coverage to 95% by 2032
Proximus ambitions to ~6M HP* ambition by 2032 28 extend its fiber coverage to 95% of Proximus & financial consortium Belgian premises by (MoU, Flanders & Proximus standalone Wallonia, by 2032) 2032, together with its 1.7 2.2 (incl. 100% of Brussels, by 2026) Fiber partners. Proximus & GSC (GoFiber,
Slide 29: Proximus closed end-June 2023 with >25% fiber coverage
Proximus closed end-June 2023 with > 25% fiber coverage 29 115 Cities 50% Fiber coverage target end-2025 Fiber Homes & Businesses passed (‘000) 1282 813 460 153 272 57 2017 2018 2019 2020 2021 2022
Slide 30: The Proximus domestic IT modernization is well on track
The Proximus domestic IT modernization is well on track, unlocking cost savings on the way 30 Key achievements and milestones for 2025 Simplified digital layer & Single ordering chain for State-of-the-art data Modernization of private refactored channels to high-volume products platform providing re
Slide 31: Further advancing digital channels to improve customer experience
Further advancing digital channels to improve customer experience & shift to e-sales / e-servicing 31 Streamline our e-sales & e-service channels Decrease in retail stores1 Boost e-sales -25% Simplify & optimize 20% 30% the webshop 2019 2022 2022 2025e Increase in automated Decrease mass market serv
Slide 32: The Proximus agile transformation is gaining speed
The Proximus agile transformation is gaining speed, simplifying the organization drastically 32 Agile transformation Putting an even larger focus on customer centricity Tribes: +4,000 employees Improve customer-centricity 2019-2022 #1 brand NPS Service circles: +800 employees across segments by 2025
Slide 33: Proximus goes all-in for Net Zero CO2 by 2040
Proximus goes all-in for Net Zero CO2 across the value chain by 2040 and will be truly circular by 2030 by acting NOW 33 Towards Net Zero CO2 by 2040 Be truly circular by 2030 Proximus CO2 footprint in KTons (Scope 1+2+3) -30% 779 Eco-centric design of CPEs Devices Refurbished phones & call for recy
Slide 34: Proximus direct emissions limited to 6% of total
Proximus direct emissions limited to 6% of total 34 Scope 1 Scope 2 6% - 31.5 Ktons circa 0% - 0 Kton Direct emissions Own indirect emissions from fossil fuel from electricity usage combustion and refrigerant gases Procurement 85% 551.4 KTons • Goods & services • Upstream transportation Breakdown of
Slide 35: Strong in recycling and refurbishment
Strong in recycling and refurbishment +120,000 35 smartphones collected in 2022 Encourage customers to collect mobile +683,000 devices and we are refurbished equipment launching more and in 2022 more proposals for smartphones Reduce use of raw materials by leasing and renting equipment from customer
Slide 36: Achieving #1 in customer experience and NPS across segments
Achieving #1 in customer experience and NPS across segments 36 Brand NPS Superior connectivity experience Convergent 46 43 21 Digital-first, 17 17 while valorizing Voicebot/ Multi-disciplinary human contact chatbot service circles when it matters 7 Anchoring continuous improvement on customer feedba
Slide 37: BICS & Telesign offer innovative platforms in synch with customer feedback
BICS & Telesign offer innovative platforms in synch with customer feedback & new industry trends 37 Enabling mission critical services Communication as a Service One stop shop Telco Enterprises IoT as a Service interconnect & customers customers roaming Anti-fraud & analytics Product innovations Pro
Slide 38: Aiming for profitable growth, locally and internationally
Aiming for profitable growth, locally and internationally 38 Win-back & Accelerate expand in Domestic International growth Continue commercial momentum driven by Consolidate leadership in digital communications via market share gains, increased revenues per customer an advanced platform with global
Slide 39: Major step in International segments strategy: Route Mobile
Major step in International segments strategy, becoming one of the worldwide leaders in digital communications 39 Agreement for acquisition of controlling interest of ≥ 57.56% in Route Mobile. Highly value accretive transaction, with high product and footprint complementarity between Route Mobile an
Slide 40: Bold2025 is a growth strategy creating long term value
Bold2025 is a growth strategy 40 creating long term value 2022-2025 bold GROW domestic revenue & RETURN domestic EBITDA to the level of 2022 by 2025 2025 ACCELERATE international EBITDA, incl. Direct Margin growing at high single digit CAGR GROW group EBITDA as from 2024, with Boldly building a 2025
Slide 41: Key figures FY 2022
41 Key figures FY 2022 PDF: Q2 2023 results
Slide 42: Key financial figures 2022
Key financial figures 2022 42 € 5,909 M €3,722 M €1,786 M FY 2022 Underlying Group revenue Underlying Group direct margin Underlying Group EBITDA +5.9% YoY +4.0% YoY +0.8% YoY € 1,305M 1.5x Proximus definition €181 M €450 M Group CAPEX (excl. Spectrum & 2.3x S&P definition Adjusted Free Cash flow Ne
Slide 43: Growing Domestic Internet and Postpaid customer base
43 Growing Postpaid Domestic Internet and Net adds 42 44 387 Mobile Postpaid Group 38 166 (‘000) -11 customer base 2021 2022 2021 2022 2021* 2022 Total base Group +1.7% YoY -0.7% YoY + 3.6% YoY (‘000) to 2,216K to 1,710K to 4,817K *Incl. acquisition of Mobile Vikings in June’21, 191K
Slide 44: >75% of the Group revenue is Domestic
44 >75% of the Group revenue is Domestic topline 44 Domestic, International mainly generated by Residential & generated € 1.6Bn Business customers Group revenue FY 2022 Domestic revenue FY 2022 € 5,909M € 4,478M +5.9% +2.2% 5,909 4,356 4,381 4,478 5,479 5,578 2,152 2,207 2,261 4,478 4,356 4,381 Dome
Slide 45: Group operating expenses totaled €1.9bn
45 The Group direct margin is The Group operating 45 63% of revenue, expenses totaled € 1.9bn, and 75% for Domestic € 1.3Bn workforce related Group Opex 2022 Group DM 2022 € 1,936M € 3,722M +7.1% +4.0% 1,936 3,722 1,807 3,576 3,579 1,740 1,695 3,360 1,578 1,633 3,283 3,286 Domestic Domestic BICS BIC
Slide 46: Group EBITDA €1,786M, +0.8% YoY
46 46 Group EBITDA €1,786M, Group Ebitda 2022 € 1,786M +0.8%YoY +0.8% with cost efficiencies mitigating 1,836 1,772 1,786 inflation impacts. 2022 EBITDA margin at 30.2%. 1,706 1,654 1,665 Domestic BICS Telesign Eliminations 101 102 120 30 17 1 2020 2021 2022
Slide 47: Proximus invested €1.3Bn in 2022, path to normalizing levels
Proximus invested € 1.3Bn3 in 2022, 47 with path to normalizing levels post 2023 peak. Group CAPEX breakdown €1.3Bn • Fiber roll-out in standalone peaked and to Fiber slow down, with Fiber JVs to step up pace. €1Bn • Increase in Fiber customer termination and Customer1 activation cost • IT-transform
Slide 48: FCF of 2022 reflecting increased Fiber investments
FCF of 2022 reflecting increased Fiber investments 48 FCF €M 376 Accelerated Fiber rollout, with 32% more 237 homes passed with Fiber compared to 2021 is 167 181 a main driver for the decrease in adjusted FCF 2021 2022 FCF FCF adjusted for acquisitions
Slide 49: Keeping a sound financial position and securing long term debt
49 Keeping a sound financial position and securing long term debt 49 2,758M€ 2.3 X >99% of outstanding LT debt Adjusted Net Debt end’22 Net debt / EBITDA at fixed rate refinancing (excl. lease liabilities) (S&P definition) at year-end 2022 Green PDF: EUR 500 million Bond bond 750 2% 400 Credit ratin
Slide 50: 2023 outlook
2023 outlook 50 Outlook Outlook Guidance metrics FY2022 FY 2023 FY 2023 16 January 2023 28 July 2023 Underlying Domestic € 4,478M Upper end of +[1-3%] YoY revenue +1% to +3% YoY € 1,665M Underlying Domestic EBITDA Around -3% YoY Around -3% YoY International Direct Margin1 € 377M High single digit gr
Slide 51: Stable dividend of €1.2/share for 2023, rebasing as of 2024
We maintain a stable dividend of €1.2/share for 2023 51 while ensuring a sound financial position by rebasing dividend as of 2024 The rebased sustainable dividend incorporates Dividend/share in €, accounting view All currently known macro and inflationary headwinds. Dividend: over the result of Expe
Slide 52: Contact Investor Relations
Contact Investor Relations 52 Call: Proximus Investor E-mail: +32 2 202 82 41 Relations website: investor.relations@proximus.com www.proximus.com/en/investors Additional information • Most recent results publications: Quarterly results | Proximus Group • Annual report: Annual reports | Proximus Grou