1 March 2013 Investor & Analyst Meeting Belgacom Group Results FY 2012
Mar 14, 2016
1 March 2013
Investor & Analyst Meeting
Belgacom Group Results FY 2012
Cautionary Statement
“This communication might include some forward-looking statements, without limitation, regarding Belgacom’s financial or operational results, certain strategic plans or objectives, macro-economic trends, regulation, future market conditions and other risk factors. These forward-looking statements rely on a number of assumptions concerning future events and are subject to uncertainties and other factors, many of which are outside Belgacom’s control. Therefore the actual future results may differ materially from those expressed in or implied by the statements.
Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication.
Belgacom disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.“
Agenda
Introduction Didier Bellens - CEO Group financial results Ray Stewart – CFO
Network & IT Geert Standaert – EVP SDE&W
Consumer Business Unit Dominique Leroy - EVP CBU
Enterprise Business Unit Bart Van Den Meersche - EVP EBU
Q&A All
Introduction
Didier Bellens CEO
Executive summary on FY 2012
Belgacom delivered on its 2012 financial expectations
- Group revenue grew versus 2011
- EBITDA as expected under pressure
- Belgacom financially sound company
Competitive dynamics changed
Belgacom well placed to face
the change
– Convergence strategy giving key support
– Solid growth of Fixed products
– PACKS increasingly with mobile
– Mobile market became more volatile in 2012
– New Telecom law accelerated customer rotation in Q4
– Belgacom responded to the new market conditions
+ 175,000 TV + 46,000 BB + 148,000 PACKS + 153,000 cards - 196,000 cards
FY 2012 guidance achieved
Metrics Revised Guidance FY’12
(excl. Telco Law)
Full-year 2012
(excl. Telco Law)
Group revenue
Up to +1%
+1.1%
Group EBITDA Between “-4% to -5% “
-4.9%
Capex/Revenue Upper end of “10% to 12%” 11.6%
• The outlook did not take into
account the one-off accounting
adjustment on revenue (EUR -12
million) and EBITDA (EUR -34
million) recorded in the second
quarter 2012 following the new
Telecom Law that was passed on
28 June 2012.
Revenue 6,462 12 6,474
EBITDA 1,784 34 1,819
FY 2012
reported
Acc impact new
telco law
FY 2012 after
adjustment for
guidance
Belgacom intends to ensure its shareholders an attractive return
Slide 7
A total gross normal dividend of EUR 1.68 per share will be proposed to
the Annual Shareholders Meeting of 17 April 2013 . As a result, Belgacom
exceptionally increased its dividend to a total of EUR 2.49 gross per
share for the 2012 full-year results. Key dates for the normal dividend:
– Ex-dividend date: 23/04/2013
– Record date: 25/04/2013
– Payment date: 26/04/2013
on Result
2012
on Result
2013
With the current limited visibility on the Belgian market due to
competitive pressure and the unfavourable economy, the Board of
Directors agreed to address shareholder return at a later stage, and
consider returning a EUR 0.50 interim dividend per share in December
2013 if Belgacom’s financial performance for the year 2013 at that time
proves to be in line with its full-year outlook.
Financial results
Ray Stewart CFO
FY 2012 Group revenue grew, underlying revenue up 1.9% YoY
Success of TV, growth in Fixed and Mobile data, solid
revenue Tango
ICT & mobile data
Voice volumes,
destination mix, data growth, dollar
-46 MTR
-40 Roaming
-4 other
+0.9% reported
+1.9% Under-
lying Revenue evolution – in million €
FY 2012 CBU revenue supported by convergence strategy
Solid growth of Fixed & Mobile
Data, Belgacom TV and TANGO
+1.4% reported
+1.5% Under-
lying
Revenue evolution – in million €
MTR and Roaming
2,349
2,294
-46 -2 -17
10
2012 EBU revenue, limited erosion in challenging economic & competitive context
Organic revenue growth of mobile data and growth ICT offsetting
pressure on voice, ex-regulation
-2.3% reported
+0.4% Under-
lying
Revenue evolution – in million €
MTR and Roaming
FY 2012 Group ebitda under pressure, underlying 1.1% lower
-40m Roaming -12m MTR -3m other
-1.1% Under-
lying
-6.7% reported
Ebitda evolution – in million €
2012 Free Cash Flow of € 691 million
FCF evolution – in million €
* Excluding non-recurring and non-cash related items
Sound financial position
- Net financial debt at EUR 1,601 m
- The outstanding long term financial gross debt amounted to € 1.9Bio
- Credit ratings: Standard & Poor’s A; Moody’s A1 – both stable outlook
Debt maturing
2013 € 129m
2015 € 145m
2016 € 950m
2018 € 500m
2026 € 73m
Outlook for 2013
- Current operating environment with lower visibility due to a more volatile competitive landscape and an unfavourable economy.
- The guidance takes into account an estimated negative impact from regulatory measures of about € -93m on revenue and about € -53m on EBITDA.
- Accelerated network investments to maintain network superiority
Metrics Reported FY 2012
Restated FY 2012
(incl IAS19 revision)
Outlook FY 2013
(vs restated 2012)
Group revenue
6,462
6,462
between -1% and -2%
Group EBITDA 1,784 1,801
Between -4% and -6%
Capex/Revenue Between 13% and 14%
Invest in high-quality fixed & mobile network to maintain leadership in convergence
Accelerated network
investments - maintain network
superiority on mobile speed and coverage,
- substantially increase the bandwidth on fixed network via vectoring technology
- make operations leaner through a simplified network
734 777 753
11.1%12.1% 11.7%
0
100
200
300
400
500
600
700
800
900
0%
2%
4%
6%
8%
10%
12%
14%
2010 2011 2012 Outlook 2013
Group Capex in € million / % of revenue
13%-14%*
*This does not include capex for a potential bidding in the 800 Mhz spectrum auction that might occur before
year-end
Network & IT and wholesale
Geert Standaert Executive Vice President SDE&W
18
Global network strategy Introduction
Mobile network
innovation driving
leadership superiority
Network simplification
driving efficiency
Fixed network
innovation driving
customer value
Mobile network Fixed network Network simplification
Global network strategy with important value enablers for a convergent interconnected world
50% 55% 60% 65% 70% 75% 80% 85% 90%
Mobistar
Base
Belgacom
Mobile network 3G+ upgrade for superior mobile data experience
Fastest down- and upload speed available in the market
Significantly better 3G indoor coverage vs competitors
% 3G indoor coverage 1
1 Source: Information provided during Analyst Presentation and/or Press Conference by KPN Group and Mobistar upon Full Year 2012 results announcement 2 Figure mentioned is 3G indoor coverage announced by Mobistar for EO 2013
70% increase of overall network capacity for data
30% average speed increase & top speed increase with HSPA+
2
Mobile data usage still in early stages with 35% of devices on
our network being 3G compatible
Important market value with customers having devices not
supporting 4G yet, both now and in future
Ambition is to remain the best mobile operator for all type of customers on the Belgian market. 3G+ upgrade will bring 8 Mbps download and up-to-21 Mbps top speeds, 42 Mbps for dual carrier devices
Best mobile 3G network Further boost experience for 3G customers
1
2
1
2
Belgacom is determined to maintain its mobile leadership through investment in 4G roll-out
Mobile network 4G as an important enabler of our convergence strategy
First Belgian operator to deploy 4G in 8 large cities in
November 2012
High speed backhauling deployed for fast data transmission
4G further improves mobile speed experience to average 20-
30Mbps speed with peak speeds up to 50-60Mbps
4G is deployed in existing 1800Mhz spectrum
First to launch 4G Further roll-out of 4G
1
2
1
2
New 2600Mhz spectrum will be used for targeted
capacity & performance Only 4G deployment in Brussels if regulatory framework is changed
Fixed network Speed technology roadmap in coming years
30
up-to-50
up-to-70
up-to-100
up-to-200
up-to-1000
up-to-200 download
dynamic line management
vdsl2
vectoring
vectoring + dynamic line management for vectoring
fiber-to-the-home in new residential zonings
pair bonding on two vdsl pairs
g.fast & fiber evolution
Copper has a promising evolutionary path allowing a stepwise increase of bit rate.
Speed evolution in Mbps 2013 to >2018
Fixed network Dynamic Line Management & Vectoring
A speed profile is applied to a VDSL2 line in function of the
line distance
Line characteristics however often allow higher speeds
Crosstalk is interference between copper pairs in same cable
Crosstalk limits the achievable speed on VDSL
To substantially increase bandwidth, Dynamic Line Management (DLM) & Vectoring will be deployed
Fast-track Dynamic Line Management Powerful vectoring technology
1
2
1
2
DLM is an in-house developed technology and will improve
the average speed experience with 30%
DLM monitors stability of lines and dynamically applies
maximum possible speed when a line is sufficiently stable
Vectoring brings up-to-70 Mbps speeds and 15 Mbps upstream
Vectoring cancels crosstalk in the copper cables resulting in a
significant bit rate increase of copper lines
Fixed network Vectoring pioneer with even higher speeds in pipeline
Belgacom is the first operator in the world to deploy
vectoring on this scale
Only operator with an in-house developed technology to bring
speed at maximum line capabilities
Belgacom is in better position to increase speed then other EU peers thanks to our access strategy over past years with a strong Fiber-The-The-Curb network topology and a dense 85% VDSL2 coverage
How we are ahead of other EU operators How we will further increase speed soon after
1 2
Strong Regulatory Framework was negotiated, disentangling
all blocking points required for full-fledged vectoring
DLM will be applied on top of our Vectored lines to further
increase speeds up-to-100 Mbps
up-to-100 Mbps full-fledged vectoring
Fixed network Speed acceleration with FTTH, Pair Bonding & G.Fast
Belgacom will start with Fiber-To-The-Home (FTTH) deployment in new residential zonings in 2013. Future evolutions of speed acceleration is currently described by Pair Bonding and G.fast & Fiber evolution.
FTTH will be deployed in new
residential zonings as of S2 2013
Fiber costs are comparable to
copper for new residential zonings
FTTH in new zonings Pair Bonding of VDSL lines G.Fast & Fiber evolution
Pair bonding increases bit rate by
combining speed of 2 VDSL lines
Both lines will be vectored and
controlled by DLM
G.fast technology is currently
analysed by standardization
bodies
Both evolutions aim at bringing
fiber distribution close to the
customer
1
2
1
2
1
2
FTTH offers speeds
up-to-200 Mbps
Evolution brings speeds
up-to-1000 Mbps
Pair Bonding brings speeds
up-to-200 Mbps
Network simplification Leaner operations through a simplified all-IP-network
Lower cost to maintain – Lower maintenance, utility,
powering and building cost of building facilities
Higher efficiency to operate – Substantial cost savings in
operating the network through efficiency increase of field
force
Better customer experience with instant servicing –
Significant simplification & agility gain with one network for
all services
Program aims at simplifying our network and decreasing operational costs. In its ambition to be an agile company, Belgacom will also focus on substantially simplifying its IT and product portfolios
Approach in simplifying our networks Operational benefits from network simplification
1
2
Transformation – Physical removal of legacy technologies,
PSTN switches and technical buildings
Consolidation – Migration of products & services to the new IP
based network
Automation – Optimization of network architecture towards
fully automated customer activation
3
Outphasing of legacy equipment
Full fiber to the street cabinet
Eliminate technical buildings
Fully automated customer activation
CORE NETWORK
copper
fiber
Network Simplification+ Vision for a lean future
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
Combined with product & process simplification
Thorough simplification towards a lean network Simplification+ goals
1
2
3
4
Outphasing of legacy equipment
Full fiber to the street cabinet
Eliminate technical buildings
Fully automated customer activation
CORE NETWORK
copper
fiber
Network Simplification+ Vision for a lean future
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
Combined with product & process simplification
Thorough simplification towards a lean network Simplification+ goals
1
2
3
4 Outphasing
legacy equipment
Outphasing of legacy equipment
Full fiber to the street cabinet
Eliminate technical buildings
Fully automated customer activation
CORE NETWORK
copper
fiber
Network Simplification+ Vision for a lean future
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
Combined with product & process simplification
Thorough simplification towards a lean network Simplification+ goals
1
2
3
4
Full fiber to the street cabinet
Outphasing of legacy equipment
Full fiber to the street cabinet
Eliminate technical buildings
Fully automated customer activation
CORE NETWORK
copper
fiber
Network Simplification+ Vision for a lean future
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
Combined with product & process simplification
Thorough simplification towards a lean network Simplification+ goals
1
2
3
4
Eliminate technical buildings
•
Outphasing of legacy equipment
Full fiber to the street cabinet
Eliminate technical buildings
Fully automated customer activation
CORE NETWORK
copper
fiber
Network Simplification+ Vision for a lean future
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
Combined with product & process simplification
Thorough simplification towards a lean network Simplification+ goals
1
2
3
4
Fully automated customer activation
Global network strategy Value enablers for a convergent interconnected world
Belgacom has all assets in hands to cope with a changing telecom ecosystem
Mobile network innovation
driving leadership superiority
Fixed network innovation
driving customer value
Network simplification driving
efficiency > > >
Mobile network Fixed network Network simplification
Fiber speeds on copper with
vectoring and dynamic line
management
Leaner operations through
network simplification
3G+ upgrade for superior mobile
data experience
Speed acceleration with FTTH in
new zonings
4G roll out as important enabler of
our convergence strategy
Combined with strong product &
process simplification
Consumer Business Unit
Dominique Leroy Executive Vice President CBU
Optimize investments via value based management approach
CBU vision Deploy convergence & defend mobile leadership
Retain Develop Acquire
• Mobile and fixed
customers with
focus on high
value customers
• Convergence
as leverage for
churn reduction
• Cross-sell on
existing customers
(fixed or mobile)
• ARPU stimulation
via monetization
& product tiering
• Multiple plays
with focus on
families
• High-value mobile
& high potential
segments (youth
& nest leavers)
Convergence
mobile
CBU prepaid evolution in 2012 Prepaid park declining following market trends
Relatively flat prepaid
ARPU in 2012 vs. 2011
Decrease of prepaid
park with acceleration
as from Q3-12
Prepaid market
decreased to 5.4 Mio
cards in Q4-12
-48 -21
+15 +5
0 -44
-80 -68
2.116
1.923
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
CBU prepaid growth & EOP (000)
net-adds park
14.1 15.3
14.4 14.9 14.0 14.2 13.6
14.4
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
CBU net prepaid ARPU (€)
5.938 5.910 5.969 6.005 6.015 6.078
5.606 5.410
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
prepaid market EOP (000)
Focus on value creation
• stimulate acquisition & reloads
via low-costs channels (Web)
• limit tactical recruitment prepaid
actions
Push valuable conversions
• proactive conversions
to postpaid
Declining prepaid market
less tactical recruitment
prepaid actions
focus on high-value prepaid
customers
CBU answer to prepaid market evolution Focus on high-value prepaid customers & conversions
1
Prepaid market trends Evolution of Belgacom approach for prepaid
Higher conversions to
postpaid
more attractive postpaid
tariffs driving migrations
new telecom law removing
barrier to postpaid as no more
contract
2
*
w1 w11 w21 w31 w41 w51
Weekly port-in + port-out* CBU postpaid in 2012
CBU postpaid evolution in 2012 Mobile postpaid market volatility amplified as from Q4-12
new FTC law
Change in customers’
behaviour triggered
by new law (fixed
term contract) and
new low price offers
as from October
*Sum of port-in and port-out in absolute numbers
+1 +24 +33 +27 +10
+50 +17
-37
1.690 1.720
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
postpaid growth & EOP (000)
net-adds park
CBU postpaid evolution in 2012 Impacts on net-adds & ARPU mainly as from October
CBU postpaid ARPU decreasing
YoY in Q4
Growth of CBU postpaid park in
2012 but negative impacts on net-
adds in Q4-12
29.2 30.0 30.0 28.6 27.9 27.3
28.9 26.6
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
net CBU postpaid ARPU (€)
CBU answer to postpaid evolution Defend postpaid market shares
Focus on retention of
postpaid customers
at risk (stand-alone)
New segmented
postpaid portfolio
Review go to market
proposal to support
value
Repositioning of Proximus brand
stand-alone
1
CBU answer to postpaid evolution Defend postpaid market shares & deploy convergence
Focus on retention of
postpaid customers
at risk (stand-alone)
New segmented
postpaid portfolio
Review go to market
proposal to support
value
Repositioning of Proximus brand
stand-alone
convergence
Cross-sell mobile
on existing fixed
customers
Attractive &
transparent price
positioning
Mobile data in packs
1
2 Boost convergence
Proximus = leader in mobile
Re-position Proximus as the best choice providing abundance offers and quality
materialized by superior service & mobile network
Evolution of mobile positioning Reassure customers that Proximus is the best choice
new tariffs service & network quality
• Communication campaigns
re-enforcing Proximus image of
best mobile operator
• Materialize messages by new
products portfolio and continuity
of customer experience programs
• Invest in mobile network including
4G to support network leadership
&
Q4-12
Proactive retention postpaid
Tariffs check-up
Proactive Migrations Generation MTV
Short-term retention via tariffs check-up & proactive migrations of all Generation MTV
15/25 customers to new profile (more value for same commitment)
Focus on retention of stand-alone postpaid Priority in Q4-12 set on customers at risk
> 30% customers contacted in Q4-12
Migration campaign
SMS
Emailing
Outbound calls
BTL
Tactical ATL
Multi-range offers with product tiering as answer to current decrease of mobile market
value by allowing stimulation of upward migrations
Redesign of CBU postpaid offers Propose segmented offers matching customers’ profiles
Devices & customers’
needs leveraging
category selection
• smart for smartphone
users (hero category)
• easy for voice users
• generation MTV for
youth & nest leavers
Voice Smartphone Youth
45€ 15€ 20€ 25€ 35€ 75€
High impact of postpaid market evolution in 2012 on value for money provided to the
customers (higher features for same or lower price)
Evolution to more value for same commitment Value included in offers highly increased in 2012
-15 € to -25€
Data x 5 + (4G included)
-5 €
Data x 4 + (4G option)
+40 Min
Data included
Voice :
SMS :
Data : 1 G
Unlimited
Unlimited
90€ (85€)
5G
Unlimited
Unlimited
75€ (60€)
250 Mb
120 Min
Unlimited
25€ (20€)
1 G
120 Min
Unlimited
20€ (15€)
/
60 Min
Unlimited
15€ (10€)
500 Mb
100 Min
Unlimited
15€ (10€)
Intense 90 Gen. MTV 25 Generation MTV 15
Tariffs : stand-alone (in pack)
Smart 20 Smart 75
Q4-11 Q4-12 Q4-11 Q4-12 Q4-11 Q4-12
Tactical or structural retention effect
Switch from acquisition to retention approach as from the start to ensure payback of
initial acquisition costs and long-term value creation
Evolution of go to market for mobile Volatility & ARPU pressure imply focus on value creation
Commitments in value and time Discounts
Strong acquisition promotions
Drive higher commitments
Tactical joint offers
Convergence / mobile in pack
OR
fixed
Successful launch of internet everywhere contributed to improve the positive evolution
of CBU internet park in 2012
CBU internet evolution in 2012 internet growth supported by internet everywhere
+8 +5 +1
+18 +15
+10 +13 +12
1,156 1,193
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
broadband growth & EOP (000)
net-adds park
• Positive evolution
of internet park
and better net-
adds results than in
2011
• Limited impacts
of new FTC law on
internet net-adds
evolution
CBU TV evolution in 2012 TV growth driven by packs approach
+54 +59 +52
+72
+43 +48 +39
+46
1,211
1,386
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
TV growth & EOP (000)
net-adds park
• Positive evolution of TV park driven by packs
approach and new TV features
• Limited impacts
of new FTC law on TV net-adds evolution
CBU TV everywhere TV everywhere allowing convergence
181,629
382,839
Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
Downloaded TVE Apps
>51,000 paying TVE subscribers
• TV everywhere as paying service as from Q4-12
• New content available (all key Belgian channels)
• New platform with improved customer experience
• Wi-fi and 3G/4G
NEW
Packs & convergence
Packs as support to true convergence
New services as revenue stream
any content
convergence offers
Optimal network fixed-FONspot-mobile
VOD
Home view & Home control
Sport
TV everywhere
Social media Music
anywhere, anytime any device
CBU packs strategy is successful Growth of number of products per household
Revenue
generating units
per household
in Q4-12
Growth of number of 3-Play and 4-Play packs
633
743
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
3-play & 4-play Consumer park EOP (000)
2.55
CBU convergence strategy is successful Growth of x-plays positively impacts ARPU & churn
43 € 46 €
Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
fixed ARPU per HH
Packs strategy has positive
impacts on churn
Increase of fixed ARPU
per household driven by
positive evolution of
number of products per
household
1-Play 2-Play 3-Play 4-Play
churn rates / x-play (Q4-12)
40% of 2012 net adds of
Packs included a mobile
component
40%
Deployment of CBU vision Strong distribution network & high service quality
Service chart Call centers agents 500,000 calls/month
Improved website 2.3 mio visitors/month
Strong distribution network 132 Belgacom centers & 57 The Phone House
Centered on customer experience & solutions
Materialize CBU vision New shop experience : the Belgacom shop of the future
• Convergence strategy remains successful and the main focus for CBU
• CBU Internet and TV continue to grow while erosion of fixed voice is
decreasing
• Market is under pressure on mobile due to new telco law and new offers
but strategy focused on retention and value creation delivers
• New services in 2013 (Home & Care, TV everywhere, 4G, …) will support
new revenue streams
• Focus on high quality network, distribution, servicing and branding
Consumer Business Unit Conclusions
Enterprise Business Unit
Bart Van Den Meersche Executive Vice-President
slide 58
Maintain telco leadership
Grow in adjacent IT
differentiate with convergence + servicing
build on telco assets in adjacent IT market
SOLUTION CENTRICITY solution differentiation through convergence & servicing
Building on our strengths converged national networks
tier 3 data centres in Belgium
large installed customer base
broad solution portfolio
channel richness
EBU Strategy
Our mission is helping our customers do better business in the interconnected world (any service/application/device, anytime, anywhere and on any device)…
Solution Centricity differentiation strategy Capturing value in the interconnected world
Wide variety of devices Thousands of apps Belgacom convergent networks & data centers (backbone for our cloud solutions)
… by providing them with convergent ICT solutions
Mobile market volatility amplified as of Q412,
Some spill-over effect on low-end business market from new telco law and mobile competition
Mobile disruption in Q4 2012. Driven by price competition
and new Telecom Law
Growth of EBU park in 2012. Net-adds remain
positive.
Weekly port-in + port-out * EBU in 2012
w1 w11 w21 w31 w41 w51
New Telecom law
+24 +30
+22 +29
+5
+36
+21 +16
1,408 1,486
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12Q3-12Q4-12
Growth & EOP (000)
net-adds park
ARPU decreasing YoY.
41.8 41.9 40.6 39.5 38.7 37.2 35.5
33.9
net ARPU (€)
*Sum of port-in and port-out in absolute numbers
Standing our ground Performance versus the market
EBU maintained its Telco Leadership. 182
167 172
167
186
Q4 11 Q1 12 Q2 12 Q3 12 Q4 12
2.0%
*source SITSI
Telco revenues excluding regulation
-0.5% (full year)
+2.8% (full year)
IT revenues excluding M&A effects
In IT growing faster than the market*.
Q4’12 IT revenues 2% YoY growth
Standing our ground Benefits of Solution Centricity are materialising
Convergence at the heart Positive Impact on major product lines EBU
Lower Churn rates with multi-play customers
1-Play 2-Play 3-Play 4-Play
Churn Rates / x-play (Q4 ’12)
Advanced Mobile Data
revenues
+15.3%*
Stable Fixed Data revenue of
€388M
Web Grade Cloud revenues
+46%
Solid Mobile Customers
Growth
+5.5%
M2M cards
+36%
IT services revenue
+9%
Results 2012 compared to 2011
Customers in 3 Universes: +24% in H2 2012 thanks to Office & Go launch
*YoY revenue increase excluding regulation impact
EBU priorities 2013 & beyond
Digital Office
Lead in Cloud Collaboration Mobile Data
Enrich our
network with sector-specific
solutions
Maintain telco leadership
Grow in adjacent IT
Fixed •continued need for speed: FTTC (Broadway), vectoring, …
•continued core innovation: app aware networking, …
•moving broadband customers to VDSL2
• increased servicing offer on Explore and Office & Go
Cloud • roll-out of BeCloud strategy: hybrid, enterprise + web-grade
•cloud is the future backbone for all our solutions on any device
• strong reseller and partner approach (f.e.TechData)
Mobile •mobile network leadership: 4G roll-out
•continued innovation: Explore on mobile, mobile managed services, …
•pro-active Tariff check-up
Maintain telco leadership through double convergence
Our ambition is to maintain our leadership in traditional telco through convergence and servicing.
Grow in adjacent IT
IT •extremely broad IT portfolio:
•Onsite & Offsite (Tier 3 datacenters) •National & International •Covering all main IT domains: LAN, Security, UC*, datacenter,..
•supported by best in class, secure connectivity
• including recognized outsourcing skills, extended with Smart Sourcing
•allows EBU to provide truly fully convergent end-to-end solutions for their professional customers
We aim to further increase IT revenues. We will build on our international capabilities and leverage synergies across countries.
Cloud services
Secure Connectivity
Onsite IT
*Unified Communications
Digital Office
• Scalable
• Modular
• Transparent price
Business Broadband
Integrated servicing. Seamless integrated support on all connectivity & devices.
Rich unified calling. Wherever you are. Transparent price. Convergence of fixed – mobile voice in simple packs.
Business applications Horizontal & vertical applications.
Residential applications Belgacom TV. Deezer. …
•Remote 24/7 support •Guaranteed onsite repair time •Mobile Internet as backup
•Secure & smart cloud access •Online data back-up
Lead in 3 growth domains
Cloud •cloud as future backbone of EBU’s convergent strategy •be the domestic leader •29 product launches in 2012 •automated ordering & provisioning •exclusive distribution agreement with TechData
Mobile data • launch of business solutions on Mobile Data •Mobile Device Management portfolio (BYOD*** opportunities) •stimulate mobile data via partner agreements with app developers •M2M partnership with Vodafone
Collaboration • launch of FMU* as a true enabler of Telco Network convergence • launch of UCaaS** •broad onsite solutions portfolio •one stop shop for our customers •wide variety of onsite, hybrid and cloud solutions
EBU will focus on growth pools where we have a competitive advantage.
*Fix-Mobile-Unification **Unified Communications as a Service *** Bring Your Own Device
Enrich our network with sector-specific solutions
We will connect deeper into sectors that will increasingly collaborate and interact, use mobilized apps, fixed & mob networks and cloud platforms.
Enrich our network to sector-specific needs Building on our core assets we’ll adapt both • our secure and scalable networks • our private and cloud platforms
Example: • public Wifi for Finance (Belfius)
Specific ICT Projects
Work with sector-leading organizations and partners to build innovative solutions Example: • Smart Metering
• EBU’s solution centricity strategy aims to both maintain telco leadership and grow in adjacent IT
• the benefits of this strategy started materialising in 2012
• EBU maintained its telco market share
• in IT EBU grew faster than the market
• in 2013 we will continue our solution centric strategy with focus on
• full functional convergence including both telco & IT with cloud as an important backbone
•winning in cloud, collaboration and mobile data
• sector-specific solutions
Entreprise Business Unit Conclusions
Q&A Q&A