Bce Inc. · TSX:BCE
Bce — Credit Suisse Media & Communications Convergence Conference 2009
14 slides from Bce's conference presentation, Jun 10, 2009
Slide 1: Credit Suisse Media & Communications Convergence Conference
Credit Suisse Media & Communications Convergence Conference Dana Point, California June 10, 2009 Siim Vanaselja EVP & Chief Financial Officer
Slide 2: Safe harbour notice
Safe harbour notice This presentation may contain forward-looking statements with respect to items such as revenue, EBITDA, earnings per share, free cash flow, capital intensity, capital structure model and other statements that are not historical facts. Several assumptions were made by BCE in prepa
Slide 3: 5 strategic imperatives
5 strategic imperatives Our goal Strategic imperatives 1 “To be 1 Achieve a competitive cost structure 2 recognized by 2 3 Accelerate wireless customers as Canada’s leading 3 4 Leverage wireline momentum communications 5 company” 4 Invest in broadband network and services 5 Improve customer service
Slide 4: What's changed at Bell since July 2008
What’s changed at Bell since July 2008 Focus on cost… … balanced with investments in strategic imperatives 9 New organizational structure 9 Changed culture to pay for performance 9 Removed 3 layers of management 9 New HSPA wireless network build 9 Launched new satellite for HD capacity 9 Reduced wir
Slide 5: Wireless EBITDA growth in current environment
Wireless EBITDA growth in current environment Wireless EBITDA growth Three consecutive quarters of leading EBITDA growth versus peers Reflects lower retention spend and disciplined handset pricing 15.8% 13.6% 10.8% 6.8% 6.0% 5.9% 1.0% 0.7% 0.6% 0.2% Q2’08 Q3’08 Q4’08 Q1’09 Q2’08 Q3’08 Q4’08 Q1’0
Slide 6: Next generation wireless network
Next generation wireless network Global standard Path to next generation data services Customer More choice in handsets benefits Improved rural coverage International roaming Bell/TELUS agreement lowers capital requirement Network operating cost savings Financial Lower handset costs
Slide 7: Slowing telephone line losses
Slowing telephone line losses Fewer local line losses Significant improvement Line losses improve for six straight Erosion rate 6.6% quarters Residential Business 5.3% Economy softened SMB results Bundles contributing to improving trend in residential NAS erosion Steady level of winbacks 106
Slide 8: Strong Bell TV growth
Strong Bell TV growth Revenue per sub EBITDA Solid revenue and EBITDA growth $68.84 $92M Revenue up 8.7% $64.65 $77M EBITDA up 19.5% Industry-leading churn of 1.1% Over 1.8M TV subscribers Maintaining HD leadership Most HD channels in Canada HD penetration over 25% PVR penetration over
Slide 9: Best-in-class wireline EBITDA performance
Best-in-class wireline EBITDA performance Wireline EBITDA growth Telco peer performance benchmark: LTM ended Q1’09 -1.6% -3.0% -5.9% -6.2% Leading our North American peers 9
Slide 10: Disciplined capital management
Disciplined capital management Capital intensity Rigorous new capital governance – single company priorities list Q1 Capital Intensity on track at 13.3% 20%-20.4% 19.3% 17.7% 17.7% 16.5% 16.4% 15%-16% 13.5%-14.6% $2.5B 2008 2009E 2008 2009E* 2008 2009E* 2008 2009E* Source: Company guidance and s
Slide 11: Accelerated fibre broadband investment
Accelerated fibre broadband investment By 2012: 5.0M homes an Pl t ed a ler e A cc By 2013: 4.6M homes n 2.5M homes Pla today $1 Billion+ invested 2009 2010 2011 2012 2013 11
Slide 12: Capital structure model
Capital structure model Maintain strong Solid investment grade metrics 1 credit profile Ample access to short- and long-term capital Ensure ample Strong, reliable cash flow generation 2 liquidity Attractive debt maturity profile Return cash to Target dividend payout ratio of 65%-75% of Adj
Slide 13: Executing on our Priorities
Executing on our Priorities Solid operating results given macroeconomic environment Q1 results reflect continued execution on strategic imperatives – Abating NAS losses – Higher residential household ARPU – Wireless margin expansion in tough environment – Disciplined cost and capital management
Slide 14: today
today just got better Bell
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