Bce Inc. · TSX:BCE
Bce — Bank of America Merrill Lynch Global Telecom & Media Conference 2012
10 slides from Bce's conference presentation, May 31, 2012
Slide 1: Bank of America Merrill Lynch Global Telecom & Media Conference
Bank of America Merrill Lynch Global Telecom & Media Conference May 31, 2012 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 2012 financial guidance (including revenues, EBITDA, capital intensity, Adjusted EPS and free cash flow), BCE Inc.’s (BCE) expected dividend payout ratio, our expected
Slide 3: Canada's largest communications company
Canada’s largest communications company 22 million customer connections Revenues: ~$20 billion Enterprise value: ~$50 billion #1 Local exchange carrier Employees nationwide: ~60,000 #1 Enterprise service provider #1 Internet provider Dividend yield: ~5.4% #2 Wireless carrier One of the most widely-h
Slide 4: Key 2012 priorities
Key 2012 priorities Maintain wireless Leverage broadband fibre Improve Business Markets Drive customer service competitiveness and IPTV footprint roll-out performance and cost improvements • Continue to deploy LTE • IPTV footprint expansion • Leverage network and • Invest more than to ~3.3M homes th
Slide 5: New strategic imperative: Expand Media Leadership
New strategic imperative: Expand Media Leadership • Strong first year for Bell Media with meaningful EBITDA and cash flow contribution Strategic Rationale • Leading conventional and specialty TV channels • Specialty programming rate increases • Integrated distribution and broadcast • Top online and
Slide 6: Media improving Bell's mix of growth services
Media improving Bell’s mix of growth services Bell’s operating mix(1) Revenue EBITDA Wireless Wireless Wireline 30% Wireline ~32% (ex. TV + Internet) (ex. TV + Internet) 37% 63% ~61% ~39% TV TV + + Media Internet Media Internet 16% 17% ~12% ~17% • Increases contribution from Bell’s Media acquisition
Slide 7: Strong balance sheet and credit profile
Strong balance sheet and credit profile Liquidity position ($M) • Ample liquidity maintains financial flexibility – $369M in cash at end of Q1’12 Cash balance (03/31/12) 369 – $2B of credit facilities and $500M of available A/R 2012E Free Cash Flow(1) ~2,350-2,500 securitization capacity Credit Faci
Slide 8: Continuing to execute capital markets strategy
Continuing to execute capital markets strategy Annualized common dividend per share • 49% increase in dividend since Q4’08 • 2012 dividend increased by 5% to $2.17 – Supported by strong underlying Adjusted 49% EPS and free cash flow growth $2.17 – Maintaining payout ratio(1) below mid-point of $2.07
Slide 9: Q1 financial performance
Q1 financial performance Bell Q1’12 Y/Y • Robust revenue and EBITDA growth with strong contribution from Bell Media and Bell Wireless Revenue $4,333M 11.6% – Excluding Bell Media, revenue flat and EBITDA up 1.3% – Margin impact from increased media contribution EBITDA $1,605M 6.6% Margin 37.0% (1.8
Slide 10: 2012 financial guidance & outlook
2012 financial guidance & outlook February 9th FY2012 Guidance(1) Expectation Revenue growth 3%-5% On track EBITDA growth 2%-4% On track Capital intensity ≤16% On track Adjusted EPS(2) $3.13-$3.18 On track Free cash flow(3) $2,350M-$2,500M On track Common dividend per share $2.17 $2.17 Dividend payo
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