Bce Inc. · TSX:BCE
Bce — Shareholder Meeting (April 2015)
56 slides from Bce's shareholder meeting presentation, Apr 30, 2015
Slide 1: Annual General Meeting 2015
ANNUAL GENERAL MEETING 2015
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in this presentation are forward-looking statements. These statements include, without limitation, statements relating to our 2015 financial guidance (including revenues, Adjusted EBITDA, capital intensity, Adjusted EPS and free cash flow), our intention t
Slide 3: Siim A. Vanaselja, EVP and Chief Financial Officer
SIIM A. VANASELJA Executive Vice-President and Chief Financial Officer
Slide 4: 2014 financial summary
2014 financial summary Actual Target Result Revenue growth 3.5% 2% - 4% Adjusted EBITDA growth 3.7% 3% - 5% Capital Intensity 16.8% 16% - 17% Adjusted EPS $3.18 $3.10 - $3.20 Free Cash Flow growth 6.7% 3% - 7% Achieved all 2014 financial guidance targets
Slide 5: Financial targets for 2015
Financial targets for 2015 2015 Guidance Target Revenue growth 1% - 3% Adjusted EBITDA growth 2% - 4% Capital Intensity approx. 17% Adjusted EPS $3.28 - $3.38 Growth approx. 3% - 6% Free Cash Flow $2.95B - $3.15B Growth approx. 8% - 15%
Slide 6: Q1 2015 financial performance
Q1 2015 financial performance ($ Millions) Q1 2015 Y/Y Revenue $5,240 2.8% Adjusted EBITDA $2,094 3.6% Margin 40.0% 0.3 pts Adjusted net earnings $705 12.6% Adjusted EPS $0.84 3.7% Free Cash Flow $231 (11.8%) Reconfirming 2015 financial guidance with a strong set of Q1 results
Slide 7: Significant shareholder value creation
Significant shareholder value creation BCE Enterprise Value ($B) • Market capitalization up 126% Common equity (market capitalization) – $4B of equity issued for CTV Debt & Preferred shares and Bell Aliant acquisitions $70.1 – $1.6B of share buybacks $24.5 • Debt component of Enterprise $34.6 Value
Slide 8: Strong balance sheet and credit profile
Strong balance sheet and credit profile Attractive long-term debt Strong liquidity Favourable credit maturity profile position profile $1.25B of new issues $3B+ liquidity Investment-grade credit in 2014 ratings with stable outlooks $900M+ annual free cash Average debt term: flow after divi
Slide 9: Delivering superior total shareholder returns
Delivering superior total shareholder returns 1-Year Total Return (2014) 5-Year Total Return (2010-2014) 139% 107% 44% 21.7% 10.6% 13.3% S&P/TSX S&P/TSX S&P/TSX S&P/TSX Composite Index Telecom Index Composite Index Telecom Index Proven strategy with strong operational execution and financial results
Slide 10: George A. Cope, President and CEO
GEORGE A. COPE President and Chief Executive Officer
Slide 11: Canada's largest communications company
Canada’s largest communications company Customer Revenues Enterprise One of the most connections value widely held stocks in Canada 21M+ $21B+ $70.1B
Slide 12: A focus on communications growth services
A focus on communications growth services Wireless Broadband Media TV Business Voice Home Phone 31% 27% 12% 11% 10% 9% Home Phone to generate just 9% of revenue in 2015
Slide 13: 57,000+ Bell team members Canada-wide
57,000+ Bell team members Canada-wide 600 38,000 Bell retirees 2,500 2,000 400 400 6,400 27,000 18,000 1 in 310 Canadian workers is employed by BCE
Slide 14: Canada's most recognized brands
Canada’s most recognized brands Bell Bell Bell Media Sports Wireless Wireline Conventional Specialty Radio Digital TV and Pay TV Out of Home
Slide 15: 2015: Canada's most valuable brands
2015: Canada’s most valuable brands #1 #2 #3 Bell remains the #1 communications brand in the country Source: Brand Finance / Globe and Mail, February 2015
Slide 16: Our goal and strategic imperatives
6 Strategic Imperatives 1 Invest in Broadband Networks & Services Our 2 Improve Customer Service goal 3 Accelerate Wireless 4 Leverage Wireline Momentum To be recognized by customers as 5 Expand Media Leadership Canada’s leading communications 6 Achieve a Competitive Cost Structure company
Slide 17: Invest in Broadband Networks & Services
1 Invest in Broadband Networks & Services
Slide 18: Investing in Canada's broadband leadership
Investing in Canada’s broadband leadership Fibe TV and Fibe Internet expansion Satellite leadership Data hosting centres Integrated Broadcast Management System 4G LTE network growth BCE expects to invest $20 Billion from 2015 to end of 2020
Slide 19: Building out high speed fibre
Building out high speed fibre 7.9M 7.6M 6.6M Fibre to Neighbourhood Fibre to Premise 2013 2014 2015 2016 Expanding to more than 7.9 Million locations this year
Slide 20: Bell leads Netflix speed rankings
Bell leads Netflix speed rankings Bell Fibe #1 on Bell Fibe #1 on Source: NETFLIX Global Speed Index Canadian ISP Rank March 2015
Slide 21: World leading mobile technology to reach 98% of Canadians in 2015
World leading mobile technology to reach 98% of Canadians in 2015 LTE sites in service ~4,549 +1,893 2,656 1,799 964 2012 2013 2014 2015 Increased LTE network speeds by 45% last year
Slide 22: LTE Advanced will support the next mobile revolution
LTE Advanced will support the next mobile revolution Explosive mobile video growth on next-generation high speed networks
Slide 23: Bell leads the way in wireless speeds
Bell leads the way in wireless speeds 90 /100 89 /100 82 /100 PCMag/Fastest Mobile Networks Canada 2014
Slide 24: Improve Customer Service
Ey a ‘My Improve Customer Service 2
Slide 25: Enhancing the customer experience
Enhancing the customer experience Flexible evenings & weekend service Personalized welcome for new customers Upgraded flagship stores
Slide 26: Service improvements by the numbers
Service improvements by the numbers Wed. 2-4 pm Call Centre Calls handled On time tech arrival 2-hr appointment 1.7M >98% windows Self Serve MyBell usage Churn Technicians rated 29% Mobility 6 bps excellent Fibe TV 12 bps 95%
Slide 27: Accelerate Wireless
3 Accelerate Wireless
Slide 28: Share of wireless service revenue growth
Share of wireless service revenue growth 2007 2014 Bell 36% Bell20% 12% 26% Bell 54% 47% 52% 54% -1%
Slide 29: Share of wireless EBITDA growth
Share of wireless EBITDA growth 2007 2014 Bell 17.9% 36% 21.5% Bell 12% 30% Bell 50% 52% 60.6% 20% Bell generating 50% of industry profit growth
Slide 30: Acquiring top wireless retailer GLENTEL
Acquiring top wireless retailer GLENTEL 368 Canadian Selling both Bell and retail locations Rogers brands
Slide 31: Why we bought GLENTEL
Why we bought GLENTEL • Prime retail locations • High profile retail brands • Generates significant Mobility sales • Key strategic asset in a double cohort year
Slide 32: Leverage Wireline Momentum
4 Leverage Wireline Momentum
Slide 33: Welcome Bell Aliant!
Welcome Bell Aliant! Integrated national structure across all business units now in place
Slide 34: Canada's largest Internet provider
Canada’s largest Internet provider Subscribers (000s) 3,298 2,004 1,943 1,541(1) 1,494(1) 698 (1) TELUS and Vidéotron based on analyst consensus for Q1’15
Slide 35: Canada's second largest TV provider
Canada’s second largest TV provider TV subscribers (000s) 2,760 2,658 1,983 1,769(1) 939(1) 780 Expect to be Canada’s #1 TV provider by year end (1) TELUS and Vidéotron based on analyst consensus for Q1’15
Slide 36: Reinventing the TV experience with Bell IPTV
Reinventing the TV experience with Bell IPTV Best HD picture quality on TV The most HD on demand 1 PVR for 6 TVs Exclusive Wireless TV Apps on TV Watch on tablets and smartphones Just launched: Restart TV 1 million Bell IPTV customers and growing
Slide 37: Bell has solutions for every industry
Bell has solutions for every industry 99 of Canada’s top 100 companies are Bell customers
Slide 38: Bell has solutions for companies of all sizes
Bell has solutions for companies of all sizes Bell Mid- Dedicated sales Fibe TV for Large Total Connect coverage Small business size 75% of FP 500 companies are Bell customers
Slide 39: Opportunities for Bell security services
Opportunities for Bell security services Cyber attacks a growing risk to North American business
Slide 40: Leadership in data hosting and cloud services
Leadership in data hosting and cloud services
Slide 41: Expand Media Leadership
5 Expand Media Leadership edia | Bell Media Medic Bell Media a Media Bell Media
Slide 42: Bell Media leads the industry
Bell Media leads the industry Conventional TV Specialty TV Pay TV Bell Media Radio Digital Out of Home #1 #1 #1 #1 #1 #2
Slide 43: Canada's news leader
Canada’s news leader Steve Anthony and Pooja Handa Lisa LaFlamme Canada’s Best National News Anchor Michelle Dubé and Ken Shaw
Slide 44: Canada's sports leader
Canada’s sports leader
Slide 45: Home to 8 of the top 10 shows on TV
is home to 8 of the top 10 shows on TV 1 2 3 4 Marvel’s Agents of The Big Bang Theory The Odd Couple The Flash S.H.I.E.L.D. 6 8 9 10 CSI: Cyber Gotham Criminal Minds Agent Carter
Slide 46: Canada's premium on demand streaming service
Canada’s premium on demand streaming service Launched December Just $4 per month
Slide 47: Achieve a Competitive Cost Structure
6 Achieve a Competitive Cost Structure
Slide 48: $100 million in operational and capital efficiency
$100 million in operational and capital efficiency
Slide 49: Cost savings reinvested in strategic growth
Cost savings reinvested in strategic growth $
Slide 50: Value creation
wT Value creation Lé
Slide 51: Acquisitions aligned to our strategic imperatives
Acquisitions aligned to our strategic imperatives Bell Achieve a Invest in Leverage Improve Accelerate Expand Transaction Competitive Broadband Wireline Customer Wireless Media Value (Net) Cost Structure Networks Momentum Service $135 M $142 M $50 M $3.0 B $533 M $2.5 B
Slide 52: Added more than $35 billion in shareholder value
Added more than $35 billion in shareholder value Annualized Dividend per Share 11 increases since 2008 78% $2.60 $2.47 $2.27 $2.33 $2.07 $2.17 Total Shareholder $1.97 $1.74 $1.83 Returns $1.54 $1.62 $1.46 Dec. 31, 2008 – Apr. 29, 2015 201% Up 13¢ Q4 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q2 20
Slide 53: Bell Let's Talk
wT Bell Let's Talk
Slide 54: Care and access enhanced in every region
Care and access enhanced in every region
Slide 55: Thanks for your support!
Thanks for your support! 2015 2014 122,150,772 2013 texts, calls, 2012 96,266,266 109,451,718 texts, calls, tweets and 2011 78,520,284 texts, calls, tweets and shares 66,079,236 texts, calls tweets and shares texts and and tweets shares $6,107,538.60 calls $5,472,585.90 $3,926,014.20 $4,813,313.30 f
Slide 56: Annual General Meeting 2015
ANNUAL GENERAL MEETING 2015