Mobistar 2015 Financial Results Analysts & Investors - - PowerPoint PPT Presentation

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Mobistar 2015 Financial Results Analysts & Investors - - PowerPoint PPT Presentation

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Mobistar 2015 Financial Results Analysts & Investors Presentation 1 MOBISTAR - FINANCIAL RESULTS 2015 Sharp acceleration of postpaid customer growth in Q4 2015 laying a solid foundation for 2016 JEAN MARC HARION Mobistar CEO 2

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MOBISTAR - FINANCIAL RESULTS 2015

2015 Financial Results

Analysts & Investors Presentation

Mobistar

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“Sharp acceleration of postpaid customer growth in Q4 2015 laying a solid foundation for 2016”

JEAN MARC HARION Mobistar CEO

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MOBISTAR - FINANCIAL RESULTS 2015

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MOBISTAR - FINANCIAL RESULTS 2015

in in in in € € € €m m m m 2015 guidance 2015 guidance 2015 guidance 2015 guidance provided provided provided provided in in in in Feb Feb Feb Feb 2015 2015 2015 2015 2015 guidance 2015 guidance 2015 guidance 2015 guidance upgraded upgraded upgraded upgraded in in in in Oct Oct Oct Oct 2015 2015 2015 2015 2015 2015 2015 2015 Mobile Mobile Mobile Mobile Service revenues Service revenues Service revenues Service revenues 1,006.2 1,006.2 1,006.2 1,006.2

year-on-year excl. reg. 0.0 %

Restated Restated Restated Restated EBITDA* EBITDA* EBITDA* EBITDA* 260 260 260 260-

  • 280

280 280 280 >280 >280 >280 >280 282.8 282.8 282.8 282.8

margin / year-on-year excl. reg. 26.0 % / +4.8 %

Capex Capex Capex Capex excl excl excl excl. . . . licenses licenses licenses licenses ~190 ~190 ~190 ~190 ~190 ~190 ~190 ~190 193.1 193.1 193.1 193.1

margin / year-on-year excl. reg. 17.8 % / -10.3 %

* before any impact related to the cable opportunity

restated EBITDA* guidance achieved with €283m

despite an additional pylon tax provision of 10 million euros in Q4 2015

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MOBISTAR - FINANCIAL RESULTS 2015

  • …and while realizing 28k postpaid net adds in the

…and while realizing 28k postpaid net adds in the …and while realizing 28k postpaid net adds in the …and while realizing 28k postpaid net adds in the fourth quarter and getting ready for the commercial fourth quarter and getting ready for the commercial fourth quarter and getting ready for the commercial fourth quarter and getting ready for the commercial launch of Mobistar’s convergent offering launch of Mobistar’s convergent offering launch of Mobistar’s convergent offering launch of Mobistar’s convergent offering

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2015 Key events

2015 2016

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attractive range of 4G tariff plans rich device portfolio largest 3G and 4G coverage 360° services

facilitating 4G access for our customers

from network and tariff plans to devices and services

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4G coverage superiority testified by IBPT

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MOBISTAR - FINANCIAL RESULTS 2015

coverage maps provided by the regulator’s Atlas tool

http://www.ibpt.be/en/consumers/internet-tv/quality-of-service/coverage-maps

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12 12 12 12€ € € €

500 MB 500 MB 500 MB 500 MB 2H voice 2H voice 2H voice 2H voice

15 15 15 15€ € € €

1 GB 1 GB 1 GB 1 GB 2H30 voice 2H30 voice 2H30 voice 2H30 voice

20 20 20 20€ € € €

1 GB 1 GB 1 GB 1 GB 2H30 voice 2H30 voice 2H30 voice 2H30 voice

Unlimited M*

iCoyote iCoyote iCoyote iCoyote

Unlimited Unlimited Unlimited

25 25 25 25€ € € €

2 GB 2 GB 2 GB 2 GB 3H30 voice 3H30 voice 3H30 voice 3H30 voice

45 45 45 45€ € € €

4 GB 4 GB 4 GB 4 GB

Unlimited voice Unlimited voice Unlimited voice Unlimited voice iCoyote iCoyote iCoyote iCoyote

60 60 60 60€ € € €

10 GB 10 GB 10 GB 10 GB

Unlimited voice Unlimited voice Unlimited voice Unlimited voice iCoyote iCoyote iCoyote iCoyote 100 MIN 100 MIN 100 MIN 100 MIN 100 SMS 100 SMS 100 SMS 100 SMS 100 MB 100 MB 100 MB 100 MB 500 MIN 500 MIN 500 MIN 500 MIN 500 SMS 500 SMS 500 SMS 500 SMS 500 MB 500 MB 500 MB 500 MB

+ Unlimited SMS + Unlimited SMS

attractive and transparent tariff plans

designed to answer customers data and roaming expectations

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MOBISTAR - FINANCIAL RESULTS 2015

42.2 €

15 15 15 15 € € € € 20.9 20.9 20.9 20.9 € € € € 20 20 20 20 € € € €

23.7 € 18.1 € 20.2 € 25.8 €

Dolphin 20** Dolphin 20** Dolphin 20** Dolphin 20**

IBPT Benchmark IBPT Benchmark IBPT Benchmark IBPT Benchmark heavy user profile heavy user profile heavy user profile heavy user profile 6H 6H 6H 6H voice, voice, voice, voice, Unlimited Unlimited Unlimited Unlimited SMS SMS SMS SMS, , , , 1 GB 1 GB 1 GB 1 GB

UK FR BE BE BE BE NL LU DE

* Mobistar Dolphin 15: 2H30 voice, unlimited SMS, 1 GB, Facebook & Twitter unlimited ** Mobistar Dolphin 20: 2H30 voice, unlimited on-net voice, unlimited SMS, 1 GB, Facebook & Twitter unlimited

competitive mobile prices compared to EU peers

Mobistar’s prices even better than IBPT’s Belgium benchmark

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Dolphin 15* Dolphin 15* Dolphin 15* Dolphin 15*

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Insurance Insurance Insurance Insurance Repair Repair Repair Repair Assistance Assistance Assistance Assistance MyStart MyStart MyStart MyStart MySwap MySwap MySwap MySwap

360º device service offer available for our customers

to boost 4G smartphone adoption

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BuyBack BuyBack BuyBack BuyBack “Your old device has a value”

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attract digitize convert satisfy

shop digitalization increase upsell and satisfaction

500 screens, web experience in shops, new prices in 3 hours

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550,000 HAND registered members

2,300,000 rewards offered, incl. exclusive events

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James Bond Urban Trail

Brussels Namur

2015 2014

18/09 22/09 Mika Lady Gaga Goose Color Run

Brussels Brussels Ghent Antwerp Antwerp

Stan Van Samang Star Wars

Brussels

Summer Festivals

Brussels, Antwerp, Liège, Charleroi…

2015

11/02 12/07 12/10 01/11 08/11 17/12 12/07

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Mobistar postpaid customers excl. M2M & MVNO

Postpaid Mobile churn

enriched customer experience leads to churn reduction

back to early 2012 levels

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MOBISTAR - FINANCIAL RESULTS 2015 2015 2012 2013 2014

Open Telecommunication law Open Telecommunication law Open Telecommunication law Open Telecommunication law

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Mobistar active customers excl. M2M & MVNO Q3 2014 prepaid excl. Colruyt MVNO internalistation

Postpaid quarterly net adds in Belgium (‘k)

Q4 2015 28 28 28 28 Q3 2015 8 8 8 8 Q2 2015 9 9 9 9 Q1 2015

  • 5

5 5 5 Q4 2014 7 7 7 7 Q3 2014 1 1 1 1 Q2 2014

  • 20

20 20 20 Q1 2014

  • 42

42 42 42

sharp acceleration of postpaid customers recruitment

driven by solid gross adds and a significant churn improvement

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  • 54

54 54 54

+41 +41 +41 +41

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increasing number of internet connected devices per

person, smartphone remains the king

Secondary Secondary Secondary Secondary devices devices devices devices Third device Third device Third device Third device Main Main Main Main device device device device work, work, work, work, information information information information communication communication communication communication entertainment entertainment entertainment entertainment communication communication communication communication communication communication communication communication infotainment infotainment infotainment infotainment work, work, work, work, infotainment infotainment infotainment infotainment infotainment infotainment infotainment infotainment

distinctive use distinctive use distinctive use distinctive use complementary use complementary use complementary use complementary use Yesterday Yesterday Yesterday Yesterday Today Today Today Today

communication communication communication communication infotainment infotainment infotainment infotainment infotainment, infotainment, infotainment, infotainment, work work work work work work work work communication communication communication communication information information information information

seamless switching seamless switching seamless switching seamless switching Tomorrow Tomorrow Tomorrow Tomorrow

s s s smartphone obsession area martphone obsession area martphone obsession area martphone obsession area Fourth device Fourth device Fourth device Fourth device

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99% 99% 99% 99% outdoor coverage 88% 88% 88% 88% indoor coverage

“ on the road ” “ on the road ” “ on the road ” “ on the road ” “ at home ” “ at home ” “ at home ” “ at home ” “ at work ” “ at work ” “ at work ” “ at work ” “ in public “ in public “ in public “ in public transport” transport” transport” transport”

strong outdoor & indoor 4G coverage

anytime and everywhere during the customer journey

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50% 4G+ pop. coverage by mid-2016

Commercial launch in Q2 2016 Q2 2016 Q2 2016 Q2 2016 4G+ speed = 4G x2 = 4G x2 = 4G x2 = 4G x2

21% 4G+ pop. coverage EY 2016

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4G customer base is growing fast

growing customer appetite for 4G smartphones & services

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MOBISTAR - FINANCIAL RESULTS 2015

>1,000,000 >1,000,000 >1,000,000 >1,000,000

4G active users 4G active users 4G active users 4G active users

% of 4G users / total base

8 % 11 % 16 % 19 % 23 % 26 % 32 %

x2 x2 x2 x2

Mobistar 4G launch

2015 45% 2013 61% 2014 55%

smartphone penetration smartphone penetration smartphone penetration smartphone penetration is progressing is progressing is progressing is progressing

% of 4G users / total base

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4G = more than 62% of total data consumption

1 out of every 3 Mobistar’s customers is using 4G

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in Dec 2014

  • f total data usage

in Dec 2015 Volume Volume Volume Volume

x2 x2 x2 x2

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Mobistar’s prepaid & postpaid 4G data users base excl. M2M & MVNO / End of period

mobile data usage is growing exponentially

as customers fully embrace the benefits in their daily lives and work

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Average data consumption per month in MB

110 290 510 250 550

860

EoP 2015 EoP 2013 EoP 2014 Mobistar data users base Mobistar total users base

860

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mobile data traffic is picking up …

… but is this extremely low compared to international benchmark

Source: tefficient, “Mobile data usage per any SIM and month for 25 markets” 2015 figures: Mobistar’s internal estimation

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Postpaid ARPU increased YoY in Q4 2015:

Q3 2015

3.6%

Q2 2015

0.6%

Q1 2015

  • 1.1%

3.6%

Q4 2015

Postpaid ARPU, annual rolling (incl. visitor roaming)

4G and data usage driving postpaid ARPU growth

ability to monetize mobile data confirmed

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MOBISTAR - FINANCIAL RESULTS 2015 Growth trend impacted for the first time by decrease in low margin incoming SMS revenues

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4G substitution for broadband connection at home

leveraging Mobistar’s excellent 4G network with Easy Internet @Home

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Already 2.000 customers

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mobile substitution for broadband connection at work

Mobiline service to complement our new fix Pulse services

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BE BE BE BE

triple-play prices are expensive in Belgium

compared to European benchmark

FR LU DE BE

€ 39 € 66 € 70

€ 74

€ 86 Prices (in euros) IBPT IBPT IBPT IBPT benchmark benchmark benchmark benchmark Internet >100 Mbps Internet >100 Mbps Internet >100 Mbps Internet >100 Mbps + + + + TV + fixed TV + fixed TV + fixed TV + fixed voice voice voice voice

* IBPT Price prices benchmark Report December 2015

NL

2% to 5% yearly 2% to 5% yearly 2% to 5% yearly 2% to 5% yearly price increase price increase price increase price increase

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Recommendation Satisfaction

Mobistar operationally ready to launch its cable offer

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>3,000 >3,000 >3,000 >3,000

friendly testers activated friendly testers activated friendly testers activated friendly testers activated

55 / 45 55 / 45 55 / 45 55 / 45

  • n Telenet network / VOO
  • n Telenet network / VOO
  • n Telenet network / VOO
  • n Telenet network / VOO

75 75 75 75

are external testers are external testers are external testers are external testers

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looking forward to see you on Monday, February 15

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2015 financial results

LUDOVIC PECH Mobistar CFO

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Mobistar key financials

improving financials with a growing customer base

in in in in € € € €m m m m FY 2015 FY 2015 FY 2015 FY 2015 FY 2014 FY 2014 FY 2014 FY 2014

  • Var. (%)
  • Var. (%)
  • Var. (%)
  • Var. (%)

Insight Insight Insight Insight Total turnover Total turnover Total turnover Total turnover 1,235.4 1,235.4 1,235.4 1,235.4 1,248.7 1,248.7 1,248.7 1,248.7

  • 1.1%

FY revenues stable excluding €13m regulatory impact Driven by postpaid ARPU & customer growth Lower handset sales

Direct costs 544.4 564.5

  • 3.6%

Reaping the benefits of distribution overhaul more than compensating for net adds acceleration

Labor costs 133.9 135.9

  • 1.5%

Net decrease with reallocation on customer facing

Indirect costs 281.1 273.4 2.8%

Negatively impacted by €10m additional provision for Walloon pylon tax.

Restated EBITDA Restated EBITDA Restated EBITDA Restated EBITDA 276.0 276.0 276.0 276.0 274.9 274.9 274.9 274.9 0.4%

€283m excluding cable costs (in % of service revenues) 25.4% 24.7%

EBITDA EBITDA EBITDA EBITDA 321.3 321.3 321.3 321.3 255.4 255.4 255.4 255.4 25.8%

including €54m settlement with Proximus (in % of service revenues) 29.6% 23.0%

CAPEX CAPEX CAPEX CAPEX 193.1 193.1 193.1 193.1 215.3 215.3 215.3 215.3

  • 10.3%

Progressive normalization of CAPEX after peak last year due to 4G accelerated roll-out (in % of service revenues) 17.8% 19.4%

Operational Operational Operational Operational Cash Flow Cash Flow Cash Flow Cash Flow (EBITDA - CAPEX) 128.2 128.2 128.2 128.2 40.1 40.1 40.1 40.1 219.5%

Reflecting restated EBITDA stabilization and CAPEX normalization 32

MOBISTAR - FINANCIAL RESULTS 2015

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regulatory impact

continues fading out being largely limited to EU roaming in 2015

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Revenues impact EBITDA impact

12,8 0,7 12,1 37,6 11,2 26,4 YTD 2015 9,6 0,4 9,3 YTD 2014 25,5 6,6 18,9 MTR EU Roaming

EU Roaming

  • Belgium : €10.0m
  • Luxembourg : €2.1m

MTR

  • Luxembourg : €0.7m

EU Roaming

  • Belgium : €8.1m
  • OLU : €1.1m

MTR

  • Luxembourg : €0.4m
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544 564

  • 3.6%

3.6% 3.6% 3.6%

2015 2014

415

2014

409 1.4% 1.4% 1.4% 1.4%

2015

  • Reaping the benefits of the

distribution overhaul

  • Cost reduction in spite of

accelerated customer growth

  • Content costs included

Direct costs Indirect costs

cost structure evolution

resources reallocated to growth opportunities with €14m net opex savings

in million euros

  • Increase of property expenses

related to network sites roll-out

  • Includes €10m additional provision
  • n pylon tax
  • Cable costs

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in million euros

headcount

  • Labor cost decrease by 1.5%
  • Reallocation toward customer facing

and growth areas, including cable

  • Sales forces now include Carrefour

shop-in-shops and Walcom retail network In fulltime equivalent Sales

+146

Growth

+21

2014

1,579

  • 34

Other

1,712

2015

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MOBISTAR - FINANCIAL RESULTS 2015

5 7

+1.2% +1.2% +1.2% +1.2%

2015

283

276 2014

280

275

  • Restated EBITDA stabilization

Restated EBITDA excluding cable costs

restated EBITDA stabilization / Capex normalization

in spite of pylon tax provision & cable costs / 99 % 4G coverage

in million euros

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Cable costs before launch

total CAPEX

193 215

  • 10.3%

10.3% 10.3% 10.3% 2015 2014

  • 69 % of total group CAPEX allocated

to network

  • #1 4G network

in million euros

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consolidated net income and financial debt

debt refinanced and improved cash flow generation profile

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MOBISTAR - FINANCIAL RESULTS 2015 in in in in € € € €m m m m 2015 2015 2015 2015 2014 2014 2014 2014 YoY YoY YoY YoY (%) (%) (%) (%) Insight Insight Insight Insight EBITDA EBITDA EBITDA EBITDA 321.3 321.3 321.3 321.3 255.4 255.4 255.4 255.4 25.8% 25.8% 25.8% 25.8% Lower restructuring costs FY figures include €54m Proximus settlement

  • Depreciation. & other expenses
  • 202.2
  • 194.5

4.0% Reflecting last quarters evolution of CAPEX Operating Income Operating Income Operating Income Operating Income 119.1 119.1 119.1 119.1 60.9 60.9 60.9 60.9 95.5% 95.5% 95.5% 95.5% Reflecting the evolution of EBITDA Financial results

  • 6.7
  • 8.8
  • 23.9%

Tax

  • 35.8
  • 8.8

306.6% Reflecting the increase of taxable income Net income Net income Net income Net income 76.6 76.6 76.6 76.6 43.3 43.3 43.3 43.3 76.9% 76.9% 76.9% 76.9% Include €54m Proximus settlement minus tax Earning per share 1.28 0.72 Net financial Net financial Net financial Net financial debt debt debt debt 407.5 407.5 407.5 407.5 538.1 538.1 538.1 538.1

  • 24.3%

24.3% 24.3% 24.3% Net financial debt/EBITDA 1.3 2.1

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net financial debt and leverage

healthy balance sheet

(in million euros)

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Leverage: 2.1x Leverage: 2.1x Leverage: 2.1x Leverage: 2.1x Leverage 1.3x Leverage 1.3x Leverage 1.3x Leverage 1.3x

408 457 500 519 538 1.3 1.7 1.9 2.0 2.1 Q1 2015 Q4 2014 Q4 2015 Q3 2015 Q2 2015

Net debt/EBITDA ratio Net financial debt

Net Financial Debt and Leverage

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mobile price stabilization / market repair further development of data usage / monetization of 4G investment restated EBITDA guidance including rebranding before the end of 2016 improved operating cash flow generation with mobile capex normalization

in in in in € € € €m m m m 2016 guidance 2016 guidance 2016 guidance 2016 guidance Restated EBITDA Restated EBITDA Restated EBITDA Restated EBITDA (excl. cable) (excl. cable) (excl. cable) (excl. cable) 270 270 270 270-

  • 290

290 290 290

2016 outlook

investing in future growth while protecting EBITDA margin

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…and one more thing

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Q1 2016 Roadshow Schedule

DATE LOCATION BROKER ROADSHOW / CONF .

11 11 11 11-

  • 12

12 12 12-

  • 13 Jan. 2016

13 Jan. 2016 13 Jan. 2016 13 Jan. 2016 US West Coast Macquarie Management roadshow 17 Feb 2016 17 Feb 2016 17 Feb 2016 17 Feb 2016 Brussels KBC Management roadshow 18 Feb 2016 18 Feb 2016 18 Feb 2016 18 Feb 2016 London Barclays Management roadshow 25 25 25 25 Feb 2016 Feb 2016 Feb 2016 Feb 2016 Brussels KBC Management roadshow 1 March 2016 1 March 2016 1 March 2016 1 March 2016 Paris Oddo Management roadshow 8 March 2016 8 March 2016 8 March 2016 8 March 2016 New York JPMorgan Management roadshow 9 March 2016 9 March 2016 9 March 2016 9 March 2016 Toronto Exane Management roadshow 10 March 2016 10 March 2016 10 March 2016 10 March 2016 Montreal Exane Management roadshow 15 15 15 15-

  • 17 March 2016

17 March 2016 17 March 2016 17 March 2016 London Citigroup Management roadshow 22 March 2016 22 March 2016 22 March 2016 22 March 2016 Italy Banca Akros Management roadshow

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https://www.linkedin.com/x company/mobistar

contact

siddy.jobe@mail.mobistar.be +32 2 745 80 92

IR Webpage

https://corporate.mobistar.be @pressmobistar @harion

SIDDY JOBE DIRECTOR INVESTOR RELATIONS

Investor Relations