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Vivendi — Investor Presentation (April 2012)
27 slides from Vivendi's investor presentation, Apr 13, 2012
Slide 1: Company Presentation
Company Presentation April 2012 Amos Genish Chief Executive Officer
Slide 2: Presenter Amos Genish
Presenter Amos Genish CEO Founder and CEO since 1999 Over 22 years of experience as a Senior Executive in the technology and telecommunications sectors 1 GVT Strategic Plan 3rd draft.ppt
Slide 3: GVT develops a unique model rolling out the most modern network in Brazil
GVT develops a unique model rolling out the most modern network in Brazil with the best Triple Play offer (Fixed Voice, Broadband and Pay TV), innovation, and highest quality maintaining its competitive advantage Sustainable competitive advantages in a favorable macroeconomic and competitive environ
Slide 4: Financial results
Financial results CAGR R$ millions 39.0 36% 21% NET REVENUES 21.4 43.1 27.4 37.2 PayTV 6.8 41% Corporate 34.4 44.6 43.1 Retail1 EBITDA 503 656 1,009 1,393 40% EBITDA Margin 38.1% 38.6% 41.8% 41.5% CapEx R$ million 762 698 1,317 1,843 EURO millions NET REVENUE 498 601 1,029 1,446 43% EBITDA 190 240 4
Slide 5: Operational results
Operational results Lines in service CAGR PayTV Corporate Retail Net New Adds CAGR PayTV Corporate Retail 4 * Includes ISP and VONO
Slide 6: Brazilian economy expected to continue to grow
Brazilian economy is expected to continue to grow due to internal and external factors, resulting in an improvement of income distribution and spurring growth of Corporate segment ABC classes expected to gain Corporate will grow 13% by 2017 13 million people over 2011 – 2017 Population by socio-econ
Slide 7: Regulatory and Competitive environment
Regulatory and Competitive environment 1 Regulation 2 Competition Reduction of MTR No Major movements yet by the incumbents to upgrade their networks to fiber connectivity, Upside to GVT Margin but not strong allowing GVT to maintain its competitive enough reduction to trigger material advanta
Slide 8: Market and Competitive environment – Intense and growing competitive environment
Market and Competitive environment – Intense and growing competitive environment Competitors Market data America Number of Number of 2011- Telefonica Portugal (2011 data) Movil (Slim) TIM Sky lines 2011 lines 2017 2017 Group Telecom Group (M) (M) CAGR Group EBITDA margin (%) 26.2% 36.3% 31.4% 27.1%
Slide 9: Drivers of Growth and Margin
Strategy and drivers GVT aims to become the 1st alternative player in Telecom and Pay-TV through continuous network expansion, product innovation and excellence in customer relationship Strategy by Segments Data Centers: Broadband: Pay-TV: gain Voice: Corporate portfolio increase market share mainta
Slide 10: Accelerate Coverage - Accelerate network expansion and population coverage
Accelerate Coverage - Accelerate network expansion and population coverage, be in most mid-sized and large Brazilian cities Market in covered cities (M) (households + businesses) GVT is currently present in 119 cities 28 ~185 cities in 2017 17 19 Region IV: Nationwide long RR distance AP (Embratel)
Slide 11: Accelerate Coverage – GVT is increasing its market share nationally
Accelerate Coverage – GVT is increasing its market share nationally GVT is gaining Market Share in all segments and all cities. However, GVT still has opportunities to further expand geographically and gain higher market share nationwide 2008 2009 2010 2011 2017 # of cities in 75 81 95 119 ~185 oper
Slide 12: Accelerate Coverage – Continue to expand backbone and access network
Accelerate Coverage – Continue to expand backbone and access network Backbone extension evolution Accesses of last mile built-out per year Route Kilometers Growth CapEx Efficiency* Network Utilization Despite GVT’s network being young, GVT has reached network utilization at the same level of incumbe
Slide 13: Take the lead on innovation – Most advanced network in Brazil
Take the lead on innovation – Most advanced network in Brazil GVT’s most up-to-date core network architecture enabling the Company to lead on product innovation and performance Core with full IP convergence based on IMS (IP Multimedia Subsystem) and SIP Protocol, supporting Multimedia Services and
Slide 14: Take the lead on innovation - From a dumb pipe to a smart pipe
Take the lead on innovation - From a dumb pipe to a smart pipe Voice Broadband IPTV Personalized Music GVT‘s Video Games Content Home Gateway (connected home) Pipe Internet Security Online Backup Home Monitoring (2012) VAS Home Surveillance (2012) TV 13
Slide 15: Take the lead on innovation - GVT unique full IP Convergence
Take the lead on innovation - GVT unique full IP Convergence (IMS, SIP) will allow to launch new innovative voice products New services Mediaphone Video call / conference One number 1 Internet access HD Voice HD Voice Portable phone everywhere RCS (Rich Communication Suite) 2 1 One uniq
Slide 16: Take the lead on innovation – Broadband leadership
Take the lead on innovation – Broadband leadership • GVT’s network topology and technology, combining optical fiber rings with a short copper last mile, enable Superior quality GVT to provide ultra high speeds up to 100Mbps with premium quality and affordable prices broadband with • The expansion of
Slide 17: Take the lead on innovation – GVT's Pay TV is the 1st based on IPTV
Take the lead on innovation – GVT’s Pay TV is the 1st in the market based on IPTV technology GVT launched commercially its TV offer in January 2012 Pay TV completes GVT’s triple-play offer, bringing to the market an innovative and differentiated product with competitive pricing, following GVT’s
Slide 18: Take the lead on innovation – Fast growing market share of new net adds in TV
Take the lead on innovation – Fast growing market share of new net adds in TV segment Share of GVT TV Net New Adds - Total segment Share of GVT TV Net New Adds – only in states where nationwide GVT operates * 8% 10% 11% 14% 5% 8% 2% 3% 3% 5% oct/11 nov/11 dec/11 jan/12 feb/12 oct/11 nov/11 dec/11 ja
Slide 19: Take the lead on innovation – GVT will develop its Datacenter Business
Take the lead on innovation – GVT will develop its Datacenter Business by opening new additional sites and moving towards high-value managed services Brazilian Datacenter market(1) will grow at 9.5% CAGR from 2012 to 2016, reaching around R$ 4 Billion(2) GVT launched 3 Datacenters in 2011 and pl
Slide 20: Reference of customer care – reduce churn rate
Reference of customer care – GVT will actively reduce its churn rate by increasing the gap vis-à-vis competition and the engagement of its customer base Product gap (%) Cost benefit gap (%) Quality gap (%) Does it present low level of technical Does it always bring innovation vs. the Is broadband co
Slide 21: Make the organization more efficient
Make the organization more efficient – GVT will continue to invest in innovation to further enhance its value proposition, while undertaking efficiency improvement programs GVT has the highest EBITDA margin among Brazilian Telcos Key initiatives to improve EBITDA Margin 45% 42% 42% 39% GVT Innovatio
Slide 22: 2012, Mid Term and Long Term outlook for GVT
2012, Mid Term and Long Term outlook for GVT • Revenue growth in the mid 30’s Financial • EBITDA Margin around 40% 2012 guidance (Telecom + PayTV) • Total CapEx R$ 2.3billion (of which R$500 million to Pay TV) • FCF* Telecom: Breakeven • Revenue: ~ R$ 7 billion in 2014 (CAGR 2011-2014: 31%), ~ R$ 10
Slide 23: GVT develops a unique model rolling out the most modern network in Brazil
GVT develops a unique model rolling out the most modern network in Brazil with the best Triple Play offer (Fixed Voice, Broadband and Pay TV), innovation, and highest quality maintaining its competitive advantage Sustainable competitive advantages in a favorable macroeconomic and competitive environ
Slide 24: Appendix
Appendix 23
Slide 25: HIGHLIGHTS
Vivendi’s support encourages GVT to accelerates growth Revenues: €1,446m, +41% (+39% at constant currency) Growth fueled by coverage expansion and excellent value In euro millions - IFRS 2011 2010 Change Constant proposition Currency Broadband service revenues up 58% and Voice revenues Revenues
Slide 26: Important legal disclaimer
Important legal disclaimer This presentation contains forward-looking statements with respect to Vivendi’s financial condition, results of operations, business, strategy, plans and outlook of Vivendi, including projections regarding the payment of dividends as well as the impact of certain transacti
Slide 27: Vivendi Investor Relations Team
Vivendi Investor Relations Team 26