Proximus Sa · EURONEXT:PROX
Proximus Sa — Q4 2024 Earnings Presentation
46 slides from Proximus Sa's earnings presentation, Feb 28, 2025
Slide 1: Investor & analyst presentation
Investor & analyst presentation 28 February, 2025 Guillaume Boutin Chief Executive Officer
Slide 2: Cautionary statement
Cautionary statement This presentation is a subset of the company’s results release. Please consult proximus.com/investors for the overall disclosed information. This communication may include some forward-looking statements, without limitation, regarding Proximus’ financial or operational results,
Slide 3: Agenda
Agenda › Strategic execution delivered › Results overview Q4/FY 2024 › Final year of bold2025 › Q&A
Slide 4: Strategic execution delivered
Strategic execution delivered ✓ Strong financials, meeting 2024 guidance & achieving 2025 EBITDA target 1 year early ✓ Sustained strong commercial performance, growth outperforming the market ✓ Best networks in Belgium, with 68% of 5G and 37% Fiber coverage ✓ Well positioned for new entrant launch,
Slide 5: We delivered on our raised FY24 guidance
We delivered on our raised FY24 guidance, supported by a strong Q4 Domestic revenue, up by +3.2%, and +6.6% EBITDA growth for Proximus Global Domestic Global Group Revenue up on sustained customer growth and Direct margin sees strong +xx% increase from EBITDA growth on both segments good landing of
Slide 6: Throughout 2024 we sustained a very strong commercial performance
Throughout 2024 we sustained a very strong commercial performance Quarterly Net adds – Total Domestic (total Residential, Business, Tango, in ‘000) Fixed Voice base 1,498K; -153k YoY, -9.3% YoY -39 -34 -35 -40 -43 Internet base Postpaid base Convergence base 2,313K; 5,095K; 1,172K; Q4’23 Q1’24 Q2’24
Slide 7: We continue to win a large and growing part of the Residential market growth
We continue to win a large and growing part of the Residential market growth, in an intense competitive environment Residential - Total subscription growth ** (in ‘000) Customers love our brands (NPS) 5.0% +5.1% 3.9% 2,617 2,720 2,855 3,001 Residential - Convergent 46 46 42 42 Postpaid 2021 2022 202
Slide 8: We have the best networks in Belgium, with scaling 5G coverage
We have the best networks in Belgium, with scaling 5G coverage returning high customer satisfaction Proximus secured significant spectrum amount to ensure excellent network quality to customers Proximus 20 20 20 45 50 50 40 120 Orange Belgium 20 20 20 30 30 30 40 100 Telenet 10 20 20 15 40 30 30 100
Slide 9: Fiber footprint scaling to >37% HP
Fiber footprint scaling to > 37% HP, and Fiber in the Street for >42% of the population. Fiber being deployed in 171 cities and municipalities +143k Fiber Homes & 2,224k Fiber Homes & >42% Fiber in the street Businesses Passed in Q4 Businesses Passed end-Q4 (in K, additions in the period, Proximus a
Slide 10: Fiber continues to be a strong driver of our commercial performance
Fiber continues to be a strong driver of our commercial performance FIBER Increasing Fiber share Lower churn Total park & net adds (in K) in total acquisitions +42% -27% 564 +8pp 519 481 441 397 Q4’23 Q4’24 Copper Fiber Maintaining high ARPC in € 45 44 44 40 38 migration rate +5€ Q4’23 Q1’24 Q2’24 Q
Slide 11: Fiber coverage in the dense areas reaches over 80%
Fiber coverage in the dense areas reaches over >80%, for mid- dense we continue to work towards Fiber collaboration Dense Mid- Dense Rural ~30% ~50% ~20% Fiber P2MP Fiber P2P HFC Fiber P2P Subsidized Standalone build Collaboration 80% Done Conclusion expected end- Discussions + Q2 ’25 + ongoing 11
Slide 12: New entrant launched, with initial effects in line with expectations
New entrant launched, with initial effects broadly unfolding in line with our expectations New B-Brand portfolio, maintaining headline pricing to keep max value in market, while staying relevant for customers. Digi Mobile offer broadly in line with our expectations: Skinny offer, no 5G, no voicemail
Slide 13: Proximus B2B strong commercial momentum, largest managed cybersecurity deal
Proximus B2B strong commercial momentum in Q4 continues in Q1, winning the largest managed cybersecurity deal for the public sector in Belgium Strong commercial momentum in Q4 Cybersecurity frame contract Security-as-a-service 2 (SECAAS2) with Belgian Federal Government Largest managed security deal
Slide 14: 220M€ efficiency program savings confirmed
220M€ efficiency program savings confirmed; upcoming wave of retirements to support future efficiency ambition We will continue tight cost control and are Domestic efficiency program to take out another 70M€ identifying new pools of efficiencies …. costs in 2025, on track for 220M€ in total ✓ Managi
Slide 15: Very strong Q4 with Proximus Global at top of market growth
Very strong Q4 with Proximus Global performing at the top of market growth Communications & Data | Q4 Direct margin growth Strategic Strong FY24 growth in outperforming listed digital communications companies (% YoY Q4 Direct margin) collaborations key markets 16% YoY growth Bilateral Group partners
Slide 16: Confident about delivery of >100M€ EBITDA synergy commitment
We remain confident about the delivery of our synergy commitment of >100M€ EBITDA impact 3 main synergy categories Synergy phasing (€M) EBITDA synergies building up to reach >100M€ at run rate, 3 years after closing (May 2024) Upsell, Cross-sell and sell through Strategic >100 1 partnerships (e.g. S
Slide 17: Active asset portfolio management set to deliver >500M€ by 2027
Active asset portfolio management advancing well , set to deliver >500M€ by 2027. Closed agreements to bring 238M€ over the next 2 months. Sale of HQ 30M€ Proceeds in final stage received for HQ in before signing Q4’23 Continued active management of non-core assets will deliver a total of >500M€ by
Slide 18: Results Q4/FY 2024
Results Q4/FY 2024
Slide 19: Domestic revenue growth sustained with +3.2% YoY in Q4
Domestic revenue growth sustained with +3.2% YoY in Q4, revenue from Services up by +2.9% YoY Q4 Revenue (underlying, M€) FY +3.4% +3.2% 4,826 4,665 11 1,234 6 1,049 19 1 1,022 1,196 +3.7% 3,776 +2.9% 3,644 Services revenue Q4’23 Residential Business Wholesale Non-Services Q4’24 FY23 FY24 Customer S
Slide 20: Residential revenue for Q4 up by +3.2% YoY
Residential revenue for Q4 up by +3.2% YoY, mainly driven by revenue from Services, up by 4.1% Residential revenue (M€, YoY ) 8.3% Q4 revenue +4.3% 5.9% 5.3% 2,500 2,396 Fading double impact of price 3.1% 3.2% 221 indexations 237 306 Customer Services revenue +4.1% YoY 644 624 620 616 620 58 279 sup
Slide 21: Residential services revenue has a strong convergent profile
The Residential services revenue has a strong profile, with a high and growing portion of revenue from Convergent customers Q4 Customer services revenue up by +4.1% YoY Customers (in K) • Convergent revenue grew +7.8% +1.1% • 64% of the services revenue is generated by convergent customers 2,841 2,8
Slide 22: Q4 B2B revenue up by 2.1%
Q4 B2B revenue up by 2.1%, with total Services revenue broadly stable, and Products up by 12.2% Business revenue (M€, YoY) 2.2% Q4 revenue 4.8% 1,996 3.1% 1,954 2.1% -0.5% 298 318 Services revenue +0.2%, -1.2% 33 37 Strong performance in IT Services 494 502 505 505 and Fixed Data, offset by in Fixed
Slide 23: Q4 B2B Services revenue stable YoY
Q4 B2B Services revenue stable YoY as strong increase in IT Services revenue offsets lower Mobile revenue and ongoing Fixed Voice erosion Business Services revenue (M€) Q4 +8.4% IT Services Q4 FY • Driven by growth in both recurring and one-shot services in Cloud, Security and Smart Mobility service
Slide 24: Strong growth in Wholesale Services
Strong growth in Wholesale Services nearly offsetting the YoY decline in low margin interconnect revenue Wholesale revenue (M€, YoY) Q4 revenue -1.8% Fixed & Mobile Services revenue 3.3% -0.5% 258 253 +17.9% -8.3% -4.9% -4.9% • Additional roaming volumes 68 • Services provided to JV’s 63 59 64 63 11
Slide 25: Q4 OpEx increased following topline growth and transformation
Despite efficiencies outpacing inflation effects, Q4 OpEx increased following topline growth & strategic transformation initiatives Q4 FY OpEx (management view, underlying, M€) Domestic OpEx (M€) 4.4% +5.5% 15 1,926 66 513 1,845 486 FY23 WF Non-WF FY24 Domestic headcount (FTE) Including transitory/p
Slide 26: Q4 Domestic EBITDA stable, FY24 +2.8% YoY
Q4 Domestic EBITDA stable, FY’24 +2.8% YoY on strong Direct margin growth and cost efficiencies Q4 FY (M€) +2.8% -0.1% 1,682 1,636 26 -26 392 392 -1 Q4’23 Direct margin Workforce costs Non-Workforce Q4’24 FY23 FY24 costs 26
Slide 27: Proximus Global Direct margin moves up on CPaaS and Mobility growth
Proximus Global Direct margin moves up on strong growth in CPaaS and Mobility services -3.2% at constant currency Revenue (M€) +1.9% at -3.4% All Qs on pro forma basis constant currency Revenue up +1.9% (constant currency) 1,731 1,672 +2.7% 663 598 ✓ Growth in higher-margin CPaaS and 461 452 468 473
Slide 28: Proximus Global EBITDA up +6.6% on a pro forma basis
Proximus Global EBITDA up +6.6% on a pro forma basis EBITDA (M€) EBITDA positive EBITDA up +6.6% year-on-year Q4 All Q’s on pro forma basis through all 3 brands: ✓ BICS ✓ Telesign ✓ Strong Q4 Direct margin growth ✓ RouteMobile outpacing OpEx increase +6.2% OpEx increase: 169 +6.6% 159 ✓ Mainly drive
Slide 29: FY24 Group CapEx in line with guidance
FY’24 Group CapEx in line with guidance, reflecting investment in Fiber build, customer related capex and Mobile network consolidation Group CapEx M€, booked, excl. spectrum & football rights On pro forma basis +2.0% CapEx reached its peak at 1,355M€ for FY’24 1,329 1,355 Other • Lower Proximus Fibe
Slide 30: Adj. FCF slightly down YoY
Adj. FCF slightly down YoY. EBITDA increase and lower JV equity injections nearly offset higher income tax, interests and cash CapEX FCF ( YoY, M€) Operations Investing -28 Lower JV equity injections following M&A-related -14 Fiberklaar transaction costs 93 consolidation (Route Mobile and Fiberklaar
Slide 31: Fully delivering on our guidance for the year 2024
Fully delivering on our guidance for the year 2024 Outlook Guidance Outlook Outlook Actuals FY 2024 FY 2024 FY 2024 FY 2024 ✓Sustained strong metric 25 Oct 2024 23 Feb 2024 26 Jul 2024 commercials Underlying Domestic Growing Growing Growing +3.4% YoY revenue up to 1% up to 2.5% up to 3% ✓Good landin
Slide 32: Focus on 2025
Focus on 2025 Leverage different Closing & Strengthening our Strengthen Global brands, reinforcing operationalizing our position in B2B digital communications Proximus as fixed network telco and IT and leadership and continue premium, contain collaboration improve to grow at top of value in the mark
Slide 33: Guidance 2025
Guidance 2025 Strong foundations and strategic focus will support a broadly stable revenue and EBITDA for Domestic, despite elevated competitive headwinds. Proximus Global will grow EBITDA, including a ramp up of synergies. CapEx continues to reflect high Fiber investment yet is now beyond peak year
Slide 34: Q&A
Q&A To ask a question, join the conference call → Register here for the Q&A to receive your dial-in details.
Slide 35: Appendix
Appendix
Slide 36: We delivered our plans while remaining a responsible employer
We delivered our plans while remaining a stable, sustainable responsible employer Employee satisfaction Digital inclusion • 84% of employees would • Social tariffs for recommend Proximus as 150,000+ citizens in 2024 employer • 16,000 people trained via • 77% employee engagement digital inclusion pro
Slide 37: Q4 Group EBITDA +0.5% on pro forma basis
Q4 Group EBITDA +0.5%, on pro forma basis, driven by Direct margin growth (all underlying, M€) Revenue Direct margin 2.9% 3.6% 12 1,689 38 12 1,031 -3 26 -2 1,642 995 +3.2% +1.9%* +3.0% +9.3%* Q4’23 Domestic Proximus Others** Q4’24 Q4’23 Domestic Proximus Others** Q4’24 Global Global OpEx EBITDA 0.5
Slide 38: FY24 Group EBITDA +3.1% on pro forma basis
FY ’24 Group EBITDA +3.1%, on pro forma basis Direct margin continued to grow, while the FY cost increase moderated (all underlying, M€) Revenue Direct margin 1.6% 160 3.9% 6,430 23 1 4,063 126 -58 -3 6,331 3,912 +3.4% -3.2%* +3.6% +5.3%* FY23 Domestic Proximus Others** FY24 FY23 Domestic Proximus O
Slide 39: Strong liquidity position and well-balanced maturity profile
Strong liquidity position and well-balanced maturity profile with leverage staying within comfort zone of 3x EBITDA ~20% ~80% Leverage within comfort zone (M€, Proximus SA) (M€, Proximus Group) 2.9x 2.6x 2.3x Green Green bond bond 4,507 3,919 3,912 700 3,267 3,131 2,758 750 750 400 700 509 787 595 2
Slide 40: From reported to underlying – EBITDA adjustments
From reported to underlying – EBITDA adjustments Q4’23 Q4’24 (M€) 441 11 437 9 48 3 421 -24 -6 -2 401 5 -25 -3 Reported Lease Lease Transformation Acquisitions, Litigation / Underlying Reported Lease Lease TransformationAcquisitions, Litigation / Underlying depreciations interest mergers and regulat
Slide 41: Adjusted FCF benefiting from higher EBITDA
Adjusted FCF benefiting from higher EBITDA, positive impact of change in WC and lower equity injections YoY Q4 FCF Operations Investing ( YoY, M€) -21 41 -34 99 16 -2 96 -68 -20 10 -9 1 FCF Adjustments Adjusted FCF Underlying Change in Interests paid Income Tax paid Cash CapEx Cash Other Adjusted FC
Slide 42: EBITDA conversion to FCF FY 2024
EBITDA conversion to FCF FY 2024 (M€) 1,950 1,850 -100 -77 -117 -108 58 -1,474 -16 -785 -727 Reported Adjustments Underlying Change in WC Interests paid Income Tax paid Cash Capex Cash Other FCF FY ’24 Adjustments FCF FY ’24 EBITDA FY ’24 EBITDA and received Investing adjusted FY ’24 FY ’24 FY ’24 4
Slide 43: Net income (Group share)
Net income (Group share) (M€) 25.1% 71 93 47 2 447 -74 357 -50 FY ’23 Underlying Adjustments D&A Net Tax expense Others (*) FY ’24 EBITDA finance result * Include Non-controlling interests and Share of loss from associates 43
Slide 44: Adjusted Net Financial Position FY 2024
Adjusted Net Financial Position (excl. lease liabilities) FY 2024 (M€) Net fin position Net fin position at end at end December Adj. Free December 2023 Cash Flow M&A RM sell-down* Dividends New debts** Hybrid bond Other*** 2024 -727M€ total FCF 58 -3,131 90 700 11 -785 -3,912 -360 -494 * In septembe
Slide 45: Shareholder structure
Shareholder structure Status 31/12/2024 Total number of shares Free-float Belgian Government Market Capitalization Gross Dividend yield 338,025,135 42% 54% ~€ 1.62Bn ~11.9% Number of shares Number of shares Number of shares % shares % Voting rights % Dividend rights with voting rights with dividend
Slide 46: Contact Investor Relations
Contact Investor Relations Nancy Goossens Adrien Peillon Investor Relations Lead Investor Relations manager Call: Proximus Investor E-mail: +32 2 202 82 41 Relations website: investor.relations@proximus.com +32 2 202 62 17 www.proximus.com/en/investors