Bce Inc. · TSX:BCE
Bce — Scotia Capital Telecom & Tech Conference 2010
18 slides from Bce's conference presentation, Nov 16, 2010
Slide 1: Scotia Capital Telecom & Tech Conference
Scotia Capital Telecom & Tech Conference November 16, 2010 George Cope President & Chief Executive Officer
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in this presentation including, but not limited to, statements relating to our 2010 financial guidance (including revenue, EBITDA, adjusted earnings per share, free cash flow and capital intensity), our dividend policy, the proposed acquisition of CTVglobe
Slide 3: Keeping a sharp focus on key drivers of value
Keeping a sharp focus on key drivers of value Our Goal 5 Strategic Imperatives 1 Accelerate wireless To be recognized by customers as 2 Leverage wireline momentum Canada’s leading communications 3 Invest in broadband networks and services company 4 Achieve a competitive cost structure 5 Improve cust
Slide 4: Acquisitions accelerate Strategic Imperatives
Acquisitions accelerate 5 Strategic Imperatives 700+ stores across Canada Leading value + youth brand Strengthens IT and eHealth services Québec’s largest data hosting centre Preferred access to Canadiens content Canada’s #1 media company CTV acquisition expected to close in Q2’11 4
Slide 5: Industry structure today
Industry structure today Video content is part of an integrated business Launched IPTV and DTH Video content is now viewed on 3+ screens Launched Launching on Sept.9 Acquisition substantially strengthens our competitive position and manages rising content costs 5
Slide 6: Delivering on all screens: Bell TV Anytime, Anywhere
4 Delivering on all 3 … screens Bell TV Anytime, Anywhere More than 15 million Bell screens by 2015 6
Slide 7: Bell Wireless has accelerated
1. Accelerate wireless Bell Wireless has accelerated + Fastest, largest, global Best choice in devices The most distribution points #1 telecom brand Rapid growth in data usage 7
Slide 8: Continued strong wireless operating momentum
1. Accelerate wireless Continued strong wireless operating momentum YTD Wireless data revenue growth Metrics* Q3’10 Y/Y y/y increase Postpaid gross additions 933k 23.4% 41% Total gross additions 1,447k 13.9% 42% Postpaid net additions 343k 55.5% Total net additions 292k 39.2% Postpaid ARPU $63.50 0.
Slide 9: Significant market share gain
1. Accelerate wireless Significant market share gain Postpaid net adds market share (incumbents) 2007 YTD Q3 2010 50% 29% 18% 33% 38% 32% Bell’s best Q3 performance in 25 years 9
Slide 10: Our consumer business has evolved...
2. Leverage wireline momentum Our consumer business has evolved... Consumer Wireline revenue mix (YTD Q3’10) Canada’s largest Internet provider LD Internet 10% 17% Local voice 33% TV 57% Bell TV HD 40% leadership TV and Internet are driving growth 10
Slide 11: Bell is Canada's largest Internet provider
2. Leverage wireline momentum / 3. Invest in broadband networks and services Bell is Canada’s largest Internet provider • FTTN driving broadband growth • Higher Residential Internet ARPU driven by usage Internet ARPU FTTN subscribers Residential 28% 4.5% Q3'09 Q3'10 Q3'09 Q3'10 Broadband network str
Slide 12: Bell TV continues to deliver strong performance
2. Leverage wireline momentum Bell TV continues to deliver strong performance Retail ARPU Video revenues • Strong financial performance 5.8% $73.34 9.3% $437M $69.35 • Maintaining industry leadership $400M – HD leader with more than 100 channels – Best selection of set-top boxes – Innovative Remote
Slide 13: Business Markets
2. Leverage wireline momentum Business Markets Business Markets EBITDA margin • Continuing focus on growing EBITDA margins and cash flow + 4.4 pts • IP growth and cost savings helping to mitigate decline in connectivity • Fewer business NAS losses y/y YTD Q3’09 YTD Q3’10 • Successfully retaining lar
Slide 14: Maintaining strong focus on cost control in 2010
4. Achieve a competitive cost structure Maintaining strong focus on cost control in 2010 2010: External Focus • Vendor and contract renegotiations • HST & capital tax savings • Working capital management t um en M om 2009: Internal Focus • Reduced Bell workforce by 12% • Consolidated Bell locations
Slide 15: Highest customer satisfaction in 5 years
5. Improve customer service Highest customer satisfaction in 5 years • 95% completion rate on Same Day 8M fewer customer calls since 2008 Next Day Agent calls handled – Bell Residential Services call centres • Single point of contact for household billing inquiries 16% • Customized support in stores
Slide 16: Financial performance on track
Financial performance on track February 4 August 5 FY2010 YTD Q3’10 Y/Y Guidance Guidance Expectation Revenues $11,408M 3.4% 1%-2% 2%-3% On track EBITDA $4,446M 2.8% 2%-4% No change On track Capital expenditures $1,603M 8.4% Capital Intensity 14.1% 1.8 pts ≤16% No change On track Adjusted EPS1 $2.24
Slide 17: Increasing total shareholder returns
Increasing total shareholder returns Common share dividend Delivering on dividend growth model (Annualized common dividend per share) • 25% increase since Q4’08 +25% • Two 5% dividend increases in 2010 $1.83 $1.74 $1.62 Share buybacks $1.54 $1.46 • 2010 NCIB program for up to $500M to be completed b
Slide 18: today
today just got better