Vivendi Se · EURONEXT:VIV
Vivendi — SFR — Investor Presentation (October 2010)
21 slides from Vivendi's investor presentation, October 2010
Slide 1: SFR Investor presentation October 2010
SFR Investor presentation October 2010 1
Slide 2: Agenda
AGENDA 1 Integrated fixed/mobile operator with strong assets 2 H1 2010 performance overview 2
Slide 3: Agenda
AGENDA 1 Integrated fixed/mobile operator with strong assets 2 H1 2010 performance overview 3
Slide 4: SFR is well positioned to create value
SFR is well positioned to create value We have the right size… … and key assets to leverage Integrated fixed/mobile operator Large customer bases and strong brand €12.4bn turnover (2009) Strong distribution and customer care N°1 alternative operator in France on channels Fixed and Mobile
Slide 5: SFR, 1st alternative operator on all telecoms market segments
SFR, 1st alternative operator on all telecoms market segments SFR covers all segments of the Consumer Enterprise Wholesale French telecoms market 20.6m mobile customers, 140k enterprise Addressing more with 75% postpaid customers than 25m 4.7m broadband Internet 200 operators and customers c
Slide 6: Strong distribution and customer care channels
Strong distribution and customer care channels Controlled physical SFR web site distribution 820 « espace SFR » ~15% of total sales made online 5,000 sales people ~50% of total customer care acts done via online selfcare Call Centers SFR assistance 11,000 advisors 1,200 technicians 120,000 contacts
Slide 7: Leading alternative broadband infrastructure in France
Leading alternative broadband infrastructure in France 3G/3G+ network coverage at end 2011 18,000 radio sites Leading Mobile 99% 2G coverage* Broadband >84% 3G coverage* as of mid-2010 network 98% 3G coverage* targeted by end 2011 Fixed network infrastructure The 1st alternative 73% unbund
Slide 8: Leveraging synergies between fixed and mobile networks
Leveraging synergies between fixed and mobile networks Objectives: Off-loading traffic to the fixed network WiFi: “Always best connected” application facilitating seamless Increase network capacity to roaming on SFR’s 3m WiFi hotspots for 3G dongles and webphones manage mobile data traffic gro
Slide 9: Agenda
AGENDA 1 Integrated fixed/mobile operator with strong assets 2 H1 2010 performance overview 9
Slide 10: Mobile commercial performance
Mobile commercial performance Postpaid net adds : SFR # 1 in postpaid customer recruitment in H1 2010 Mobile postpaid net adds market share (%) 2009: 36% H1 2010: 37% 50% 2008: 29% 39% 40% 38% 40% 37% 35% 32% 31% 32% 26% 30% 25% 20% 10% 0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
Slide 11: Fixed Broadband Internet commercial performance
Fixed Broadband Internet commercial performance Broadband Internet net adds : ~30% net adds market share maintained since end 2008 ADSL net adds market share (%) H1 2010: 39% 50% 2009: 31% 43% 40% 2008: 14% 33% 34% 31% 31% 33% 30% 27% 20% 14% 9% 10% 4% 0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4
Slide 12: Operational highlights
Operational highlights LA POSTE MOBILE DIFFERENTIATED TARIFFS • SFR in exclusive negotiations • June 2010: 1st « SIM only » with La Poste for a partnership offer available with all to launch a mobile offer (MVNO) postpaid plans for customers not wishing a new handset • A growth opportunity based on
Slide 13: Zoom #1: Growth in broadband access
Zoom #1: Growth in broadband access DATA CLIENT BASES REVENUE GROWTH June 2009 June 2010 (H1 2010 vs H1 2009) Webphones 0.3m x6 2.0m BROADBAND MOBILE +18% mobile data revenues growth PC 441k +77% 781k (3G usb key) Consumers 4.2m 4.7m BROADBAND (households) +13% +10% FIXED fixed data revenues growth
Slide 14: Zoom #2: Growth in IPTV services
Zoom #2: Growth in IPTV services IPTV IPTVsubscribers subscribers 2.4m IPTV users i.e. 52% of the ADSL customer base (+11 pts YoY) 2.4m 2.0m +43% IPTV services penetration driven by the 1.7m 1.3m commercial success of the neufbox triple-play offer and continuation of unbundling June Dec.2009 08
Slide 15: Zoom #3: Growth in Enterprise
Zoom #3: Growth in Enterprise Innovative packaged solutions introduced since Common fixed / mobile Enterprise customers early 2010 for SMEs and large corporates % total Enterprise customer base 28% 30% +6pts 22% SFR Business Serenity Video conferencing 20% (security solution) 10% Internet 0% Pack Bu
Slide 16: H1 2010 SFR Financials
H1 2010 SFR Financials Solid organic revenue growth in H1 2010 in euro millions - IFRS H1 09 H1 10 Change FY 09 Mobile services revenues: +5.3% excl. Revenues 6,140 6,248 +1,8% 12,425 regulatory impact* Mobile 4,442 4,430 -0,3% 8,983 Broadband Internet & Fixed 1,865 1,975 +5,9% 3,775 Broadband
Slide 17: Revenue growth trends
Revenue growth trends SFR revenue growth vs. France GDP growth, per quarter YoY quarterly growth 8% 6% 4% 2% 0% -2% -4% -6% Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 GDP growth Total revenue growth excl. regulatory impacts* Total revenue growth Source: Insee and SFR SFR revenue growth trends
Slide 18: Impacts from regulation
Impacts from regulation France has been front-runner in Europe in Mobile Termination Rates cuts Termination rates cuts over 2009-2010 Mobile Termination Rates evolutions cts€/min 12 Mobile Termination Rates • Orange/SFR: 6.5 to 4.5 cts€/min • Bouygues : 8.5 to 6 cts€/min 10 July, 1st Euro tariffs (r
Slide 19: Control of OPEX
Control of OPEX OPEX evolution FY 2010 OPEX trends (2008-2009) YoY growth 100% Commercial Slight increase of acquisition and retention costs +6% costs in order to support commercial momentum in 2010 (incl. +440k iPhone in H1) 30% 28% Slight decrease of revenue-related costs in Revenue-related co
Slide 20: Control of CAPEX
Control of CAPEX CAPEX evolution FY 2010 CAPEX trends (2008-2009) CAPEX trends 1 593 m€ Stable CAPEX trend year-on-year, with 1 441 m€ rebalancing of investments between Fixed and Variable Mobile in 2010 vs. 2009 : Capex (23%) Decrease of Fixed & Broadband CAPEX Fixed & 574 m€ 828 m€ broadband (40
Slide 21: SFR FY 2010 Guidance
SFR FY 2010 Guidance Initial FY 2010 Guidance (announced March 1st, 2010): Mobile: slight decrease in EBITDA Broadband & Fixed: slight increase in EBITDA Revised FY 2010 Guidance (announced September 1st, 2010): Mobile: slight decrease in EBITDA / Confirmed Broadband & Fixed: double-digi