Investor & Analyst Meeting 1 March 2013
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 forwardlooking 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
Competitive dynamics changed
Belgacom well placed to face the change
+ 175,000 TV
- Group revenue grew versus 2011 - EBITDA as expected under pressure - Belgacom financially sound company
– Mobile market became more volatile in 2012 – New Telecom law accelerated customer rotation in Q4 – Belgacom responded to the new market conditions – Convergence strategy giving key support – Solid growth of Fixed products – PACKS increasingly with mobile
+ 46,000 BB
+ 148,000 PACKS
+ 153,000 cards
- 196,000 cards
FY 2012 guidance achieved Revised Guidance FY’12
Full-year 2012
(excl. Telco Law)
(excl. Telco Law)
Metrics
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
FY 2012 reported
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.
Acc impact new telco law
FY 2012 after adjustment for guidance
Revenue
6,462
12
6,474
EBITDA
1,784
34
1,819
Belgacom intends to ensure its shareholders an attractive return on Result 2012
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 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. Slide 7
Financial results Ray Stewart CFO
FY 2012 Group revenue grew, underlying revenue up 1.9% YoY +1.9% Underlying
Revenue evolution – in million ₏ Success of TV, growth in Fixed and Mobile data, solid revenue Tango
ICT & mobile data
-4 other -40 Roaming
-46 MTR
Voice volumes, destination mix, data growth, dollar
+0.9% reported
FY 2012 CBU revenue supported by convergence strategy
+1.5%
Revenue evolution – in million ₏
MTR and Roaming
Underlying
Solid growth of Fixed & Mobile Data, Belgacom TV and TANGO
+1.4% reported
2012 EBU revenue, limited erosion in challenging economic & competitive context +0.4%
Revenue evolution – in million ₏
Underlying
2,349
10 -46
MTR and Roaming
-2
-17
Organic revenue growth of mobile data and growth ICT offsetting pressure on voice, ex-regulation
-2.3% reported
2,294
FY 2012 Group ebitda under pressure, underlying 1.1% lower Ebitda evolution – in million ₏
-1.1% Underlying
-40m Roaming -12m MTR -3m other
-6.7% reported
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
2015
2016
2018
2026
€ 129m
€ 145m
€ 950m
€ 500m
€ 73m
Outlook for 2013 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%
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 â‚Ź -93m on revenue and about â‚Ź -53m on EBITDA. Accelerated network investments to maintain network superiority
Invest in high-quality fixed & mobile network to maintain leadership in convergence Accelerated network investments
Group Capex
13%-14%*
in â‚Ź millio n / % of revenue 14% 12%
12 .1%
11.7%
734
777
753
2010
2011
2012
11.1%
900 800 700 600 500 400 300 200 100 0
10% 8% 6% 4% 2%
0%
Outlook 2013
- 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
*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
Global network strategy Introduction
Global network strategy with important value enablers for a convergent interconnected world
Mobile network
Mobile network innovation driving leadership superiority
Fixed network
Fixed network innovation driving customer value
Network simplification
Network simplification driving efficiency 18
Mobile network 3G+ upgrade for superior mobile data experience
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
Fastest down- and upload speed available in the market
1
70% increase of overall network capacity for data
2
Significantly better 3G indoor coverage vs competitors
2
30% average speed increase & top speed increase with HSPA+
Mobile data usage still in early stages with 35% of devices on our network being 3G compatible
Belgacom Base Mobistar
2
50%
1 Source: 2
55%
60%
65%
% 3G indoor coverage
1
70%
90%
75%
80%
85%
Important market value with customers having devices not supporting 4G yet, both now and in future
Information provided during Analyst Presentation and/or Press Conference by KPN Group and Mobistar upon Full Year 2012 results announcement Figure mentioned is 3G indoor coverage announced by Mobistar for EO 2013
Mobile network 4G as an important enabler of our convergence strategy
Belgacom is determined to maintain its mobile leadership through investment in 4G roll-out
First to launch 4G
Further roll-out of 4G
1
First Belgian operator to deploy 4G in 8 large cities in November 2012
1
4G further improves mobile speed experience to average 2030Mbps speed with peak speeds up to 50-60Mbps
2
High speed backhauling deployed for fast data transmission
2
4G is deployed in existing 1800Mhz spectrum
Only 4G deployment in Brussels if regulatory framework is changed
New 2600Mhz spectrum will be used for targeted capacity & performance
Fixed network Speed technology roadmap in coming years Copper has a promising evolutionary path allowing a stepwise increase of bit rate. Speed evolution in Mbps 2013 to >2018
up-to-1000
g.fast & fiber evolution
up-to-200 pair bonding on two vdsl pairs up-to-200
download
fiber-to-the-home in new residential zonings up-to-100
vectoring + dynamic line management for vectoring up-to-70
vectoring up-to50
30
dynamic line management
vdsl2
Fixed network Dynamic Line Management & Vectoring
To substantially increase bandwidth, Dynamic Line Management (DLM) & Vectoring will be deployed
Fast-track Dynamic Line Management
Powerful vectoring technology
1
A speed profile is applied to a VDSL2 line in function of the line distance
1
Crosstalk is interference between copper pairs in same cable
2
Line characteristics however often allow higher speeds
2
Crosstalk limits the achievable speed on VDSL
DLM monitors stability of lines and dynamically applies maximum possible speed when a line is sufficiently stable
Vectoring cancels crosstalk in the copper cables resulting in a significant bit rate increase of copper lines
DLM is an in-house developed technology and will improve the average speed experience with 30%
Vectoring brings up-to-70 Mbps speeds and 15 Mbps upstream
Fixed network Vectoring pioneer with even higher speeds in pipeline 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
1
Belgacom is the first operator in the world to deploy vectoring on this scale
Strong Regulatory Framework was negotiated, disentangling all blocking points required for full-fledged vectoring
full-fledged vectoring
How we will further increase speed soon after
2
Only operator with an in-house developed technology to bring speed at maximum line capabilities
DLM will be applied on top of our Vectored lines to further increase speeds up-to-100 Mbps
up-to-100 Mbps
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 in new zonings
Pair Bonding of VDSL lines
G.Fast & Fiber evolution
1
FTTH will be deployed in new residential zonings as of S2 2013
1
Pair bonding increases bit rate by combining speed of 2 VDSL lines
1
2
Fiber costs are comparable to copper for new residential zonings
2
Both lines will be vectored and controlled by DLM
2
FTTH offers speeds up-to-200 Mbps
Pair Bonding brings speeds up-to-200 Mbps
G.fast technology is currently analysed by standardization bodies Both evolutions aim at bringing fiber distribution close to the customer
Evolution brings speeds up-to-1000 Mbps
Network simplification Leaner operations through a simplified all-IP-network
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
Transformation – Physical removal of legacy technologies, PSTN switches and technical buildings
Operational benefits from network simplification
1
Lower cost to maintain – Lower maintenance, utility,
2
Higher efficiency to operate – Substantial cost savings in
Consolidation – Migration of products & services to the new IP based network
operating the network through efficiency increase of field
force
3 Automation – Optimization of network architecture towards fully automated customer activation
powering and building cost of building facilities
Better customer experience with instant servicing – Significant simplification & agility gain with one network for all services
Network Simplification+ Vision for a lean future Thorough simplification towards a lean network
CORE NETWORK
Simplification+ goals
1
Outphasing of legacy equipment
2
Full fiber to the street cabinet
3
Eliminate technical buildings
4
Fully automated customer activation
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
copper fiber
Combined with product & process simplification
Network Simplification+ Vision for a lean future Thorough simplification towards a lean network
CORE NETWORK
Outphasing legacy equipment
Simplification+ goals
1
Outphasing of legacy equipment
2
Full fiber to the street cabinet
3
Eliminate technical buildings
4
Fully automated customer activation
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
copper fiber
Combined with product & process simplification
Network Simplification+ Vision for a lean future Thorough simplification towards a lean network
CORE NETWORK
Full fiber to the street cabinet
copper fiber
Simplification+ goals
1
Outphasing of legacy equipment
2
Full fiber to the street cabinet
3
Eliminate technical buildings
4
Fully automated customer activation
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
Combined with product & process simplification
Network Simplification+ Vision for a lean future Thorough simplification towards a lean network
CORE NETWORK
Eliminate technical buildings
Simplification+ goals
1
Outphasing of legacy equipment
2
Full fiber to the street cabinet
3
Eliminate technical buildings
4
Fully automated customer activation
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
copper fiber
Combined with product & process simplification
Network Simplification+ Vision for a lean future Thorough simplification towards a lean network
CORE NETWORK
Simplification+ goals
1
Outphasing of legacy equipment
2
Full fiber to the street cabinet
3
Eliminate technical buildings
4
Fully automated customer activation
Fully automated customer activation
•
First wave includes outphasing of 30 buildings and outphasing of our legacy ATM and PSTN switching
copper fiber
Combined with product & process simplification
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
>
Mobile network innovation driving leadership superiority
Fixed network
>
Fixed network innovation driving customer value
Network simplification
>
Network simplification driving efficiency
3G+ upgrade for superior mobile data experience
Fiber speeds on copper with vectoring and dynamic line management
Leaner operations through network simplification
4G roll out as important enabler of our convergence strategy
Speed acceleration with FTTH in new zonings
Combined with strong product & process simplification
Consumer Business Unit Dominique Leroy Executive Vice President CBU
CBU vision Deploy convergence & defend mobile leadership
Retain • Mobile and fixed customers with focus on high value customers • Convergence as leverage for churn reduction
Develop
Acquire
• Cross-sell on existing customers (fixed or mobile)
• Multiple plays with focus on families
• ARPU stimulation via monetization & product tiering
• High-value mobile & high potential segments (youth & nest leavers)
Optimize investments via value based management approach
Convergence
mobile
CBU prepaid evolution in 2012 Prepaid park declining following market trends prepaid market EOP (000)
5.938 5.910 5.969 6.005 6.015 6.078
CBU net prepaid ARPU (â‚Ź)
CBU prepaid growth & EOP (000)
15.3 5.606
14.1
2.116
5.410
14.4 14.9 14.0 14.2 14.4 13.6
1.923 +15 -48
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
+5
-21
0
-80 -68
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
net-adds
Prepaid market decreased to 5.4 Mio cards in Q4-12
-44
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
park
Decrease of prepaid park with acceleration as from Q3-12
Relatively flat prepaid ARPU in 2012 vs. 2011
CBU answer to prepaid market evolution Focus on high-value prepaid customers & conversions
Prepaid market trends Declining prepaid market
Evolution of Belgacom approach for prepaid
less tactical recruitment prepaid actions
1 Focus on value creation • stimulate acquisition & reloads via low-costs channels (Web)
focus on high-value prepaid customers
• limit tactical recruitment prepaid actions
Higher conversions to postpaid
2 Push valuable conversions • proactive conversions to postpaid
more attractive postpaid tariffs driving migrations new telecom law removing barrier to postpaid as no more contract
CBU postpaid evolution in 2012 Mobile postpaid market volatility amplified as from Q4-12
Change in customers’ behaviour triggered by new law (fixed term contract) and new low price offers as from October
Weekly port-in + port-out* CBU postpaid in 2012
*
w1
w11
w21
w31
w41
new FTC law *Sum of port-in and port-out in absolute numbers
w51
CBU postpaid evolution in 2012 Impacts on net-adds & ARPU mainly as from October
postpaid growth & EOP (000)
1.720
1.690
+1
+24
+33
+27
net CBU postpaid ARPU (â‚Ź)
+10
+50
29.2
30.0
30.0
28.6
27.9
27.3
Q4-11
Q1-12
Q2-12
28.9
26.6
+17
-37
Q1-11
Q2-11
Q3-11
Q4-11
net-adds
Q1-12
Q2-12
Q3-12
Q4-12
Q1-11
Q2-11
Q3-11
Q3-12
Q4-12
park
Growth of CBU postpaid park in 2012 but negative impacts on netadds in Q4-12
CBU postpaid ARPU decreasing YoY in Q4
CBU answer to postpaid evolution Defend postpaid market shares
Repositioning of Proximus brand Focus on retention of postpaid customers at risk (stand-alone)
New segmented postpaid portfolio
Review go to market proposal to support value
1 stand-alone
CBU answer to postpaid evolution Defend postpaid market shares & deploy convergence
Repositioning of Proximus brand Focus on retention of postpaid customers at risk (stand-alone)
New segmented postpaid portfolio
Review go to market proposal to support value
Attractive & transparent price positioning
stand-alone
2
Boost convergence Cross-sell mobile on existing fixed customers
1
Mobile data in packs convergence
Evolution of mobile positioning Reassure customers that Proximus is the best choice
Proximus = leader in mobile 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
Re-position Proximus as the best choice providing abundance offers and quality materialized by superior service & mobile network
Focus on retention of stand-alone postpaid Priority in Q4-12 set on customers at risk
Proactive retention postpaid
> 30% customers contacted in Q4-12
Tariffs check-up
Migration campaign Proactive Migrations Generation MTV
SMS Emailing Outbound calls BTL Tactical ATL
Q4-12
Short-term retention via tariffs check-up & proactive migrations of all Generation MTV 15/25 customers to new profile (more value for same commitment)
Redesign of CBU postpaid offers Propose segmented offers matching customers’ profiles
Voice
Smartphone
Youth
Devices & customers’ needs leveraging category selection • smart for smartphone users (hero category) • easy for voice users • generation MTV for youth & nest leavers
15€ 20€ 25€ 35€ 45€ 75€
Multi-range offers with product tiering as answer to current decrease of mobile market value by allowing stimulation of upward migrations
Evolution to more value for same commitment Value included in offers highly increased in 2012 Generation MTV 15
Gen. MTV 25 Smart 20
Intense 90 Smart 75
Q4-11
Q4-12
Q4-11
Q4-12
Q4-11
Q4-12
Voice :
60 Min
100 Min
120 Min
120 Min
Unlimited
Unlimited
SMS :
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Data :
/
500 Mb
250 Mb
1G
1G
5G
Tariffs :
15€ (10€)
15€ (10€)
25€ (20€)
20€ (15€)
90€ (85€)
75€ (60€)
stand-alone (in pack)
+40 Min Data included
-5 € Data x 4 + (4G option)
-15 € to -25€ Data x 5 + (4G included)
High impact of postpaid market evolution in 2012 on value for money provided to the customers (higher features for same or lower price)
Evolution of go to market for mobile Volatility & ARPU pressure imply focus on value creation Discounts
Commitments in value and time
OR
Strong acquisition promotions
Drive higher commitments
Tactical joint offers
Tactical or structural retention effect
Convergence / mobile in pack
Switch from acquisition to retention approach as from the start to ensure payback of initial acquisition costs and long-term value creation
fixed
CBU internet evolution in 2012 internet growth supported by internet everywhere
broadband growth & EOP (000)
1,193
1,156
+18 +8
+5
+15
+1
+10 +13 +12
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
net-adds
• Positive evolution of internet park and better netadds results than in 2011 • Limited impacts of new FTC law on internet net-adds evolution
park
Successful launch of internet everywhere contributed to improve the positive evolution of CBU internet park in 2012
CBU TV evolution in 2012 TV growth driven by packs approach
• Positive evolution of TV park driven by packs approach and new TV features
TV growth & EOP (000)
1,386 1,211
+72 +54
Q1-11
+59
+52
+43
+48
+39
+46
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12
net-adds
park
• Limited impacts of new FTC law on TV net-adds evolution
CBU TV everywhere TV everywhere allowing convergence
Downloaded TVE Apps
382,839
181,629
Q4-11
Q1-12
• 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
>51,000 paying TVE subscribers Q2-12
Q3-12
Q4-12
NEW
Packs & convergence
Packs as support to true convergence
any device
anywhere, anytime
any content Sport
Home view & Home control Optimal network fixed-FONspot-mobile VOD
Social media
convergence offers
TV everywhere
Music
New services as revenue stream
CBU packs strategy is successful Growth of number of products per household
3-play & 4-play Consumer park EOP (000) 743 633
2.55 Q1-11
Q2-11
Q3-11
Q4-11
Q1-12
Q2-12
Q3-12
Q4-12
Growth of number of 3-Play and 4-Play packs
Revenue generating units per household in Q4-12
CBU convergence strategy is successful Growth of x-plays positively impacts ARPU & churn
fixed ARPU per HH
43 â‚Ź
churn rates / x-play (Q4-12)
40%
46 â‚Ź
Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 1-Play
Increase of fixed ARPU per household driven by positive evolution of number of products per household
2-Play
3-Play
4-Play
Packs strategy has positive impacts on churn
40% of 2012 net adds of Packs included a mobile component
Deployment of CBU vision Strong distribution network & high service quality
Service chart
Call centers agents
Improved website
Strong distribution network
500,000 calls/month
2.3 mio visitors/month
132 Belgacom centers & 57 The Phone House
Materialize CBU vision New shop experience : the Belgacom shop of the future
Centered on customer experience & solutions
Consumer Business Unit Conclusions
• 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
Enterprise Business Unit Bart Van Den Meersche Executive Vice-President
EBU Strategy Maintain telco leadership differentiate with convergence + servicing
Grow in adjacent IT
Building on our strengths
build on telco assets in adjacent IT market
converged national networks tier 3 data centres in Belgium large installed customer base broad solution portfolio channel richness
SOLUTION CENTRICITY solution differentiation through convergence & servicing
slide 58
Solution Centricity differentiation strategy Capturing value in the interconnected world
Our mission is helping our customers do better business in the interconnected world (any service/application/device, anytime, anywhere and on any device)‌ Wide variety of devices
Belgacom convergent networks & data centers (backbone for our cloud solutions)
Thousands of apps
‌ 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.
ARPU decreasing YoY.
Growth & EOP (000)
net ARPU (â‚Ź)
Weekly port-in + port-out * EBU in 2012
41.8 41.9 40.6 39.5 38.7 37.2
1,486
1,408
+24
+30
+22
+36
+29
+21 +16 +5
Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12Q3-12Q4-12
w1
w11
*Sum of port-in and port-out in absolute numbers
w21
w31
w41
New Telecom law
w51
net-adds
park
35.5
33.9
Standing our ground Performance versus the market
Telco revenues excluding regulation
-0.5% (full year)
IT revenues
+2.8% (full year)
excluding M&A effects
In IT growing faster than the market*. 2.0%
EBU maintained its Telco Leadership.
186
182 167 Q4 11
Q1 12
172 Q2 12
167 Q3 12
Q4 12
Q4’12 IT revenues 2% YoY growth *source SITSI
Standing our ground Benefits of Solution Centricity are materialising Convergence at the heart
Positive Impact on major product lines EBU
Customers in 3 Universes: +24% in H2 2012 thanks to Office & Go launch
Stable Fixed Data revenue of
â‚Ź388M
Lower Churn rates with multi-play customers
Churn Rates / x-play (Q4 ’12)
1-Play
2-Play
Results 2012 compared to 2011
3-Play
M2M cards
+36%
Solid Mobile Customers Growth
Advanced Mobile Data revenues
+5.5%
+15.3%*
Web Grade Cloud revenues
IT services revenue
+46%
+9%
4-Play
*YoY revenue increase excluding regulation impact
EBU priorities 2013 & beyond
Maintain telco leadership
Grow in adjacent IT
Digital Office
Lead in Cloud Collaboration Mobile Data
Enrich our network with sector-specific solutions
Maintain telco leadership through double convergence Our ambition is to maintain our leadership in traditional telco through convergence and servicing.
Fixed
Mobile
Cloud
• continued need for speed: FTTC (Broadway), vectoring, …
• mobile network leadership: 4G roll-out
• roll-out of BeCloud strategy: hybrid, enterprise + web-grade
• continued core innovation: app aware networking, …
• continued innovation: Explore on mobile, mobile managed services, …
• cloud is the future backbone for all our solutions on any device
• pro-active Tariff check-up
• strong reseller and partner approach (f.e.TechData)
• moving broadband customers to VDSL2 • increased servicing offer on Explore and Office & Go
Grow in adjacent IT
We aim to further increase IT revenues. We will build on our international capabilities and leverage synergies across countries.
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
Secure Connectivity
Onsite IT
•including recognized outsourcing skills, extended with Smart Sourcing •allows EBU to provide truly fully convergent end-toend solutions for their professional customers
*Unified Communications
Cloud services
Digital Office
Business applications
Residential applications
Horizontal & vertical applications.
Belgacom TV. Deezer. …
Rich unified calling. Wherever you are. Transparent price. Convergence of fixed – mobile voice in simple packs.
Integrated servicing. Seamless integrated support on all connectivity & devices.
Business Broadband • Remote 24/7 support • Guaranteed onsite repair time • Mobile Internet as backup • Secure & smart cloud access • Online data back-up
• Scalable • Modular • Transparent price
Lead in 3 growth domains EBU will focus on growth pools where we have a competitive advantage.
Cloud
Collaboration
Mobile data
•cloud as future backbone of EBU’s convergent strategy
•launch of FMU* as a true enabler of Telco Network convergence
•launch of business solutions on Mobile Data
•be the domestic leader •29 product launches in 2012 •automated ordering & provisioning •exclusive distribution agreement with
TechData
•launch of UCaaS** •broad onsite solutions portfolio •one stop shop for our customers •wide variety of onsite, hybrid and cloud solutions *Fix-Mobile-Unification
•Mobile Device Management portfolio (BYOD*** opportunities) •stimulate mobile data via partner agreements with app developers •M2M partnership with Vodafone
**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
Entreprise Business Unit Conclusions
• 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
Q&A Q&A