Slide 1: Q3 2002 Results
Q3 2002 RESULTS October 23, 2002 Michael J. Sabia Siim Vanaselja President President & & CEO CEO Chief Chief Financial Financial Officer Officer 1
Slide 2: Safe Harbor Notice
Safe Harbor Notice Certain Certain statements statements made made inin this this presentation presentation constitute constitute forward-looking forward-looking statements statements and and are are subject subject to to important important risks risks and and uncertainties uncertainties which whic
Slide 3: Q3 Highlights
Q3 Highlights è Disciplined execution leads to improved profitability, despite slower data revenue growth 4 Productivity savings of $150M in Q3 4 Capital intensity of 18.5% YTD vs. 21.7% last year 4 Free Cash flow positive in Q3 before monetizations è Balanced progress on DSL, DTH and wireless è Fin
Slide 4: Financial Results
Financial Results Consolidated Consolidated Q3 Q3 02 02 Q3 Q3 02 02 // Q3 Q3 01 01 YTD YTD 02 02 // YTD YTD 01 01 Revenue Revenue $4,822M $4,822M 0.1% 0.1% 2.6% 2.6% Excl Excl impact impact of of regulatory regulatory changes changes 2.2% 2.2% 4.2% 4.2% EBITDA EBITDA $1,952M $1,952M 4.0% 4.0% 5.4% 5
Slide 5: Bell Canada – Revenue Snapshot
Bell Canada – Revenue Snapshot Q3 Q3 02 02 Q3 Q3 02/01 02/01 YTD YTD 02/01 02/01 Total Total $4,314M $4,314M (0.3%) (0.3%) 2.3% 2.3% Excl Excl impact impact of of regulatory regulatory changes changes 2.1% 2.1% 4.0% 4.0% Local Local $1,526M $1,526M (6.7%) (6.7%) (2.7%) (2.7%) Excl Excl impact impact
Slide 6: Growth in Connections
Growth in Connections Growth Growth in in EOP EOP Subscribers Subscribers Q3 Q3 Focusing Focusing onon (% (% increase increase Q3 Q3 02 02 vs vs Q3 Q3 01) 01) Net Net Adds Adds profitable profitable growth: growth: •• DSL DSL EBITDA EBITDA positive positive for for the the second second DSL DSL 60%
Slide 7: Bell Globemedia
Bell Globemedia Improved subscriber growth Expense controls drive and TV advertising drive positive EBITDA margin revenues up 11% $273M $273M $246M $246M Production Production & & Sundry Sundry 11% 11% Subscriber Subscriber 13% 13% $17M $17M Advertising Advertising 10% 10% Q3 01 Q3 01 Q3 02
Slide 8: BCE Emergis
BCE Emergis Market environment Significant improvement in remains soft EBITDA $132M $132M $142M $142M $135M $135M $19M $19M $11M $11M ($20M) ($20M) Recurring Non-recurring Q1 Q1 02 02 Q2 Q2 02 02 Q3 Q3 02 02 Q1 Q1 02 02 Q2 Q2 02 02 Q3 Q3 02 02 Financial Financial performance performance improving im
Slide 9: Driving Operating Performance: Productivity gains
Driving Operating Performance Productivity gains Acquisition Acquisition Support Support $165M $165M $160M $160M $515M $515M $365M $365M $140M $140M Q1 Q1 YTD YTD Q2 Q2 YTD YTD Q3 Q3 YTD YTD Servicing Servicing $190M $190M Cumulative Cumulative impact impact of of savings savings is is powerful powe
Slide 10: Increasing Capex Efficiency
Increasing Capex Efficiency Intensity Intensity declines declines from from 21.7% 21.7% to to 18.5% 18.5% $3.8B $3.8B Savings Savings from: from: Spectrum Spectrum è è Improved Improved 13% $2.7B $2.7B returns returns on on 8% Prod/Certen/Other wireline wireline 18% Prod/Certen/Other investments inv
Slide 11: Financial Flexibility: Cash Generation
Financial Flexibility: Cash Generation Free Free Cash Cash Flow Flow before before monetizations* monetizations* Improving $138M $138M Productivity Q1 Q1 02 02 Q2 Q2 02 02 ($2M) ($2M) Q3 Q3 02 02 and ($460M) ($460M) Capex Efficiency ** after after capex capex and and dividends dividends Clear Clear
Slide 12: Looking Ahead
Looking Ahead Consolidated Consolidated Full Full Year Year 2002 2002 2003 2003 to to benefit benefit from: from: Guidance Guidance è è Solid Solid fundamental fundamental base base Revenues Revenues approx. approx. $19.5B $19.5B è è Growth Growth drivers drivers continue continue to to outpace outp