Proximus Sa · EURONEXT:PROX
Proximus Sa — Debt Investor Presentation (November 2023)
44 slides from Proximus Sa's debt investor presentation, Nov 8, 2023
Slide 1: Fixed Income Investor Presentation: Green bond issuance
Fixed Income Investor Presentation: Green bond issuance Proximus 8 November 2023
Slide 2: Disclaimer
Disclaimer This communication has been prepared by Proximus, SA de droit public. Except for the some of the financial figures, none of Selling restrictions the information in these materials has been independently verified, approved, endorsed, audited by Proximus’ auditor or reviewed by a third part
Slide 3: Table of content and Speakers
Table of content Speakers Proximus Overview and Credit Highlights Mark Reid Finance Lead Societal Responsibility Catherine Bals Sustainability Lead Green Bond Issuance 3
Slide 4: Proximus overview and credit highlights
Proximus overview and credit highlights 4
Slide 5: Key credit highlights
Key credit highlights Excellent Domestic performance: achieving strong revenue growth in 2023, driven by sustained customer gains and pricing strategy, while efficiencies mitigate inflationary cost pressure. Diversifying Internationally with BICS as innovative communication platform and Telesign ope
Slide 6: Proximus Group key figures
Proximus Group key figures FY2022 Group underlying revenue Free Cash Flow (adjusted) Proximus is listed on the Brussels Euronext stock exchange: € 5,909 Mio € 181 Mio - In the BEL20 - In the BEL ESG Index Market Capitalization (Oct.23) Group underlying EBITDA Capex* € 1,786 Mio € 1,305 Mio Public li
Slide 7: Proximus providing digital services and communication solutions
Proximus providing digital services and communication solutions on the Belgian and international markets Domestic International 7
Slide 8: Proximus Domestic
Proximus Domestic Largest telco operator in Belgium Fixed Internet 2,216K Proximus is a provider of digital services and Digital TV 1,710K communication solutions Domestically, we secured undisputed network Mobile Postpaid 4,817K leadership both in fixed & Note: End of 2022 mobile 93 years of histor
Slide 9: Proximus International
Proximus International a unique growth engine for our group Global Countries with Footprint 65+ active customers Leading Blue Chip Authentication customers 8/10 Top internet companies are customers * International and Digital subsidiaries in pole Identity player Strong position to capture Technologi
Slide 10: Proximus is a financially resilient and diversified Group
Proximus is a financially resilient and diversified Group • Group underlying revenue FY 2022 Group underlying EBITDA FY 2022 € 5,909M +5.9% € 1,786M +0.8% 5,909 1,836 5,479 5,578 1,772 1,786 4.478 4.356 4.381 Domestic Domestic 1.706 1.654 1.665 International International Eliminations Eliminations 1
Slide 11: Boldly building a connected world that people trust
We have set out our strategy for the next 3 years until 2025 “Boldly building a connected world that people trust so society blooms” 11
Slide 12: We deliver great value for our stakeholders
We deliver through exceptional great value for strengths our stakeholders Act for an inclusive society & Roll out #1 gigabit network be sustainable in everything we do for Belgium Delight customers with Engineer technology assets unrivalled experience to enable digital ecosystems Grow profitably loc
Slide 13: bold2025 is a growth strategy for Proximus Group
bold2025 is a growth strategy for Proximus Group While acting as a force for good in society and being a digital catalyst Revenue growth on EBITDA growth, CAPEX to return to FCF to return back to commercial momentum including 220M€ cost normalized levels after growth, supported by and pricing strate
Slide 14: First year of our strategy being executed very well
First year of our strategy being executed very well with 2023 guidance raised above initial expectations Key 2023 Strategic YTD strong revenue growth and EBITDA better than expected Revised Highlights FY 2023 guidance Revenue Q3 YTD (M€) EBITDA Q3 YTD (M€) Very strong commercial momentum driven by 3
Slide 15: Keeping a sound financial position
Keeping a sound financial position Adjusted Net 2,758M€ Debt YE 22' C e r (excl. Lease liabilities) S&P net debt/EBITDA to stay well below 3.0X 3.0x Expecting limit increase from of outstanding LT >99% debt at fixed rate Route Mobile transaction C e r 2.5x S&P 1.6x Proximus definition Credit rating
Slide 16: Stable investment grade rating
Stable investment grade rating A2, Stable Outlook BBB+, Stable Outlook 14 February 2023 7 February 2023 • Proximus’ A2 rating reflects the company’s solid retained cash • Proximus holds a leading position in Belgium with an estimated market flow and its low, although deteriorating, leverage ratio, w
Slide 17: Strong financial position backed by solid liquidity
Strong financial position backed by solid liquidity Around €3,4B financing structure Around €0,9B available liquidity Commercial Paper 7% Cash & Cash Investments, equivalent; cash & cash 260 equivalents 0,2 20% Investment Loan EIB 400 12% 183 400 2,350 Institutional Bonds Private Placements 750 Inst
Slide 18: Societal responsibility
Societal responsibility More info
Slide 19: We achieved a series of major milestones over the last years
We achieved a series of major milestones over the last 3 years ~1.6 million Largest 100,000 5 billion 1st Belgian Fiber spectrum registered Doktr mobile subscribers company Homes Passed holder in users and 93% connected via with net-zero (Q3’23) Belgium patient satisfaction BICS targets validated by
Slide 20: Boldly building…
Boldly building… …a connected world… …that people trust… …so society blooms. Building the best Ensuring cybersecurity for Going all in in the gigabit network for Belgium our customers fight against global warming Developing digital solutions Supporting Europe in Investing in digital accessibility, f
Slide 21: a connected world
Boldy building a connected world that people trust so society blooms
Slide 22: Bringing Fiber to 26% of Belgian premises
Building the best gigabit network in the 1. Building the best gigabit network for Belgium world Bringing Fiber to 26% of Belgian premises Fiber is the future, green and circular by design -88% GHG emissions per Gb transmitted through Fiber compared to legacy technologies* Innovative solutions to rea
Slide 23: Ambition of 100% gigabit coverage
Building the best gigabit network in the world Ambition of 100% gigabit coverage • Fiber, a more durable technology: ✓ lower carbon impact vs copper ✓ low production impact Fiber coverage ambition ✓ -15% overall electricity use vs copper homes & businesses passed, cumulative (user equipment included
Slide 24: Ambition of 100% 5G coverage
Building the best gigabit network in the world Ambition of 100% 5G coverage 5G coverage ambition 193 All • Differential spectrum package secured for best indoor cities and major 100% of Belgium and outdoor experience over next 20 years municipalities cities • To a more durable mobile network: Today
Slide 25: so society blooms
Boldy building a connected world that people trust so society blooms
Slide 26: Acting with an SBTi approved Net Zero target for 2040
Going all-in in the fight against climate change Acting with an SBTi approved Net Zero target for 2040 Scope 1 Scope 2 6% - 31.5 Ktons Direct emissions from fossil fuel circa 0% - 0 Kton Own indirect emissions from electricity usage Targets Procurement 85% combustion and vs 2020 baseline refrigerant
Slide 27: Scope 1 & 2: energy consumption control and shift to renewable
Going all-in in the fight against climate change Scope 1 & 2: energy consumption control and shift to renewable Keep electricity Move away from Maintain a strong consumption fossil fuel in our green electricity under control operations sourcing strategy Efficiencies on fixed Fossil free heating in b
Slide 28: Our activities have an intensive electricity consumption profile
1. Going Going all-in in all theinfight in the against fight against climate climate change change Proximus consumption profile Buildings Fix Technical, Network Our activities have an intensive electricity Offices & shops 21% 36% consumption profile Electricity efficiency programs have delivered tan
Slide 29: Engaging with suppliers on Scope 3
Going all-in in the fight against climate change Engaging with suppliers on Scope 3 Supplier Engagement Program 150 Top suppliers • Select suppliers according to emission intensity representing 85% of 2022 scope 3 and long-term partnership towards 2030 Category 1&2 emissions • Cluster suppliers acco
Slide 30: Source less/right to be truly circular by 2030
Going all-in in the fight against climate change Source less/right to be truly circular by 2030 • Zero waste by 2030: up to 90% reused, composted or recycled by 2025, vs 87% in 2022 Waste Belgium in KTons • Network equipment shared, recycled or reused 15 11 • Network equipment shared, recycled or re
Slide 31: Implementing our ESG strategy is value accretive
Implementing our ESG strategy is value accretive …a connected world… …that people trust… …so society blooms. Building the best Ensuring cybersecurity for Going all in in the gigabit network for Belgium our customers fight against global warming Developing digital solutions Supporting Europe in Inves
Slide 32: Our 2022 ESG ratings, alliances, initiatives and awards
Our 2022 ESG ratings Alliances, initiatives and awards 32
Slide 33: Green Bond
Green Bond More info 33
Slide 34: Proximus' Sustainable Finance Framework
Proximus’ Sustainable Finance Framework Released in 2021 Use of Proceeds Process for Project Evaluation and Selection Financing and/or refinancing of projects within • A Sustainable Finance Committee in place Energy Efficiency, Renewable Energy, Clean Transportation, Green Buildings, Circular • Prox
Slide 35: Proximus' Sustainable Finance Framework: selected use of proceeds
Proximus’ Sustainable Finance Framework Selected use of proceeds GHG impact Other impact GBP/GLP Supported Contribution to EU Scope 4 Sustainable Scope 1 Scope 2 Scope 3 Category SDG’s Environmental Objectives (Enabling) impact Clean transportation ✓ Pollution reduction Green buildings ✓ ✓ Material
Slide 36: Proceeds will be used to fund multiple green projects
Proceeds will be used to fund multiple green projects – with a clear impact reporting Selected green projects identified Eligible Green Projects Eligible Green Projects versus outstanding green liabilities by Category (2020-2023) by Type (2020-2023) (estimate in €M) Circular Other (circular + networ
Slide 37: Transaction overview: Proximus Green Bond
Transaction overview: Proximus Green Bond Issuer Proximus SA de Droit Public Issuer Rating A2 by Moody’s (stable) / BBB+ by S&P (stable) Notes Rating (Expected) A2 by Moody’s / BBB+ by S&P Form of the Notes Reg S, Belgian dematerialised Status Senior Unsecured Currency Euro Size Benchmark Tenor 10 y
Slide 38: Annexes
Annexes Q3 2023 Financials: - Group Consolidated balance sheet - Group Consolidated Income statement - Group Consolidaqted Cash Flow stement Green Bond reporting: - November 2021 transaction - Allocation report - Impact report 38
Slide 39: Consolidated Group balance sheet
Consolidated Group balance sheet As reported Q3 2023 39
Slide 40: Consolidated Group income statement
Consolidated Group income statement As reported Q3 2023 40
Slide 41: Consolidated Group cash flow statement
Consolidated Group cash flow statement As reported Q3 2023 41
Slide 42: Allocation reporting
Allocation reporting Proximus Green Finance Allocation Reporting prossimus Total Portfolio of Green Eligible Projects 2 Amount of eligible project added in 2021
Slide 43: Impact reporting
Impact reporting Proximus Green Finance Impact Reporting Pp ro 4 im US Portfolio date: 31st December 2021 darmonized Framework for img ting’ and GRI standards ‘abatement of Carbon Secale. Smilies “cuter Coe emissions Emissions through our Financing scope 1 & scope 2 market 1) 4.386 million euro the
Slide 44: Accelerating International growth
Accelerating International growth Majority stake in Route Mobile, creating a global leader in communication solutions and digital identity (announced 17th July 2023) Transaction ➢ Agreement for the acquisition of controlling interest of ~58% of Route Mobile (closing expected end Q1 2024) Strategic r
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