Bce Inc. · TSX:BCE
Bce — CIBC 10th Annual Eastern Institutional Investor Conference 2011
10 slides from Bce's conference presentation, Sep 21, 2011
Slide 1: CIBC 10th Annual Eastern Institutional Investor Conference
CIBC 10th Annual Eastern Institutional Investor Conference September 21, 2011 Siim Vanaselja Executive Vice President & CFO
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in the attached presentation, including, but not limited to, statements relating to our 2011 financial guidance (including revenues, EBITDA, capital intensity, Adjusted EPS and free cash flow), our LTE wireless network deployment plans, our expected 2011 y
Slide 3: Operating model focuses on key value drivers
Operating model focuses on key value drivers Maintaining wireless competitiveness Strongest market share of incumbent postpaid net adds in H1 2011(37%) Higher smartphone mix and blended ARPU growth Positive wireline operating trends Reduced NAS landline losses and slowing voice revenue erosion ARPU
Slide 4: Solid strategic progress in 2011
Solid strategic progress in 2011 • CTV acquisition completed April 1 • Launched Bell Media • Fibre build-out supports IPTV and broadband Internet • Fibe TV footprint more than 1.1M households TV • Wireless LTE network launch in 2011 • Capturing over 1/3 of incumbent postpaid net adds • Maintaining w
Slide 5: Significant wireless market share gain
Significant wireless market share gain Postpaid net additions market share (incumbents) Q1 2007 H1 2011 6% 32% 37% 57% 37% 31% Strong postpaid subscriber growth with higher smartphone mix 5
Slide 6: Strong execution by Bell Media
Strong execution by Bell Media • Healthy y/y organic growth in advertising and subscriber revenues in TV and Digital in Q2’11 • Rebranding /A\ Network to CTV Two • Launched TSN Radio in Toronto market • Strong new Fall programming line-up • Progress in concluding BDU agreements for TSN/RDS rate incr
Slide 7: Bell's improving revenue mix
Bell’s improving revenue mix Operating revenue mix — 2011E Pro forma ~80% ~30% ~11% ~27% ~12% ~20% Wireless Satellite/Fibe Wireline Media Wireline TV Internet/Data Voice 80% of revenues now driven by growth segments 7
Slide 8: Financial review
Financial review May 12 FY2011 YTD Q2’11 Y/Y Increased Expectation Guidance(1) Revenues $8,244M 7.2% 9% to 11% On track EBITDA $3,159M 8.3% 8% to 10% On track Margin 38.3% 0.4 pts Capital Intensity 14.1% (1.2 pts) ~16% On track Adjusted EPS(2) $1.58 13.7% $2.95 to $3.05 On track Free Cash Flow(3) $6
Slide 9: Strong capital markets positioning
Strong capital markets positioning • Strong investment grade credit ratings Strong credit profile • Net debt to Adjusted EBITDA maintained below 2.0x • Over $2.2B of cash & credit facilities post-CTV closing • Issued $345M of BCE preferred shares in July’11 Substantial liquidity • Accessed $3B of lo
Slide 10: Increasing returns to shareholders
Increasing returns to shareholders Annualized common dividend per share Share buyback program (Dec. 2008 to Dec. 2010) Amount ($) ~$1.5B 42% $2.07 $1.97 Shares repurchased $1.83 56.2M $1.74 and cancelled $1.62 $1.54 $1.46 Average price per $26.43 share repurchased Q4’08 Q1’09 Q3’09 Q1’10 Q3’10 Q1’11
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