Slide 1: Q1 2005 Results
Q1 2005 Results May 4, 2005 Michael J. Sabia President & CEO Siim Vanaselja Chief Financial Officer
Slide 2: 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 state
Slide 3: Good start to the year
Good start to the year 4 Revenue growth 4.8% and EBITDA growth 5.1% i Data growth of 6.6% driven by DSL and new VAS services i $120M of cost savings – capturing the benefits from 5,000 employee departures 4 Operational transformation on track… i Significant progress on service simplification and int
Slide 4: DSL & Video deliver strong quarters
DSL & Video deliver strong quarters Record first quarter for DSL Video growth continues 23% 1,936K 9.2% 1,532K Video Net Adds DSL Net Adds 1,568K 1,403K 128K 110K 16% 29K 81% 16K Q1'04 Q1'05 Q1'04 Q1'05 Subscribers Subscribers 4 Subscribers exceed 1.9M 4 Strong subscriber acquisitions i Footprint in
Slide 5: Wireless: a slow start to postpaid
Wireless: a slow start to postpaid 82K Net Adds 4 Strong quarter for prepaid (before cancellations) i Christmas promotions and Virgin launch 4 Slow start to postpaid – strengthened in March Prepaid i Highly competitive market dynamics 71% i Customer reactions to billing delays Postpaid 22% 45% 4 Ach
Slide 6: Consumer: meeting market challenges
Consumer: meeting market challenges Revenues 4 Revenue growth of 1.7% $1,825M $1,856M i Slower quarter in wireless 1.7% 4 Wireline erosion continues i Residential line losses of 1.7% i LD erosion improved from Q4 4 Strong progress towards winning the broadband home Q1'04 Q1'05 i Bundle subscribers e
Slide 7: Business: strategy is delivering
Business: strategy is delivering Revenues 4 Strongest top-line performance since launch of Business $1,435M $1,478M iRevenue growth improves for third 3.0% consecutive quarter iBusiness VAS growth exceeds 50% iCost savings drive EBITDA growth of over 5% 4 Enterprise: continued progress on transformi
Slide 8: BGM and Telesat: continued strong performance
BGM and Telesat: continued strong performance Bell Globemedia Telesat Revenues Operating Income Revenues Operating Income ↑ 4.1% ↑ 60% ↑ 29% ↑ 19% $356M $342M $108M $64M $84M $40M $37M $31M Q1’04 Q1’05 Q1’04 Q1’05 Q1’04 Q1’05 Q1’04 Q1’05 4 Revenues grew 4.1% in Q1 4 Revenues grew 29% in Q1 led by: 4
Slide 9: Financial review
Financial review BCE Bell Q1’05 Y/Y Q1’05 Y/Y Revenues $4,859M 4.8% $4,209M 2.5% EBITDA $1,938M 5.1% $1,815M 3.4% EBITDA margin 39.9% 0.1pt 43.1% 0.4pt 4 Revenue growth improved for 5th consecutive quarter 4 EBITDA margin increased through cost savings Solid performance 9
Slide 10: EBITDA drives EPS growth
EBITDA drives EPS growth 4 Achieved Q1 EPS(1) of $0.51, growth of 2% i Growth of 8%, excluding increase in pension expense i Strong contribution from operations Earnings per share $0.02 $0.54 $0.06 $0.03 $0.51 $0.50 Q1'04 EBITDA FX, MTS Pension & Q1'05 EPS (1) amortization (1) Before net gains (loss
Slide 11: Cost savings flow through to EBITDA
Cost savings flow through to EBITDA 4 Achieved $120M of cost reduction i Bulk of savings from employee reduction program i Galileo initiatives in Consumer and Business 4 Offsetting pressures from: i Legacy erosion and reprice in excess of growth contributions i CDN impact Bell Canada EBITDA ($M) $12
Slide 12: Free Cash Flow on track
Free Cash Flow on track FCF after dividends ($M) 4 On track to meet FCF target of $700-900M for 2005 i Q1’05 reduced by expected impacts Anticipated impacts 43 4 Capex increased in line with planned 94 priorities i Bell Canada capital intensity 200 reached 15.8% 256 i Approximately two-thirds of cap
Slide 13: Outlook for remainder of year
Outlook for remainder of year 4 Deliver financial targets 4 Ensure operational excellence i Wireless back on track i Meet the cable threat i Continue strong progress in Business 4 Drive strategic priorities 2005 Financial Outlook Revenue growth: ≥ GDP Galileo savings: $500M-$600M EPS(1): Single digi
Slide 14: Bell Canada
ca Bell Canada Enterprises