Driving Canada s digital future Rob Malcolmson, Senior Vice President, Regulatory October 29, 2015
Canada s largest communications company Customer connections 21M+ Revenues $21B+ Enterprise value $74B One of the most widely held stocks in Canada 2
Strong focus on growth services Wireless 31% Broadband 27% Media 12% TV 56% 81% 11% Business Voice 10% Home Phone 9% Home Phone to generate just 9% of revenue in 2015 3
Added more than $40 billion in shareholder value Annualized Dividend per Share 78% $1.46 $1.54 $1.62 $1.74 $1.83 $1.97 $2.07 $2.17 $2.27 $2.33 $2.47 $2.60 Total Shareholder Returns Dec. 31, 2008 Oct 23, 2015 235% Up 13 Q4 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 Q2 2011 Q1 2012 Q3 2012 Q1 2013 Q1 2014 Q1 2015 11 increases since 2008 4
Canada s most recognized brands Bell Wireless Bell Wireline Bell Media Sports Conventional TV Specialty and Pay TV Radio Out of Home 5
2015: Canada s most valuable brands #1 #2 #3 Bell remains the #1 communications brand in the country Source: Brand Finance / Globe and Mail, February 2015 6
Highlights YTD 2015 LTE at 93% of population Launched LTE Advanced Reached 1 million IPTV subscribers IPTV footprint exceeded 6 million homes Launched new Fibe TV features Launched Gigabit Fibe 2015 FIFA world cup sets viewership record Showtime exclusive licensing deal Completed Glentel Acquisition Acquired Toronto Argonauts Crave TV goes direct to consumers Bell Let s Talk celebrates 5 years 7
Trends & Challenges
Trends: Smartphones nearing the end of adoption cycle But mobile data traffic will keep growing 207 Petabytes /mth 31 Petabytes /mth 2014 2019 Cisco VNI Index 9
Trends: Messaging is replacing talking... And Internet traffic per household will keep growing 166.8 Gigabytes /mth 56.2 Gigabytes /mth 2014 2019 Cisco VNI Index 10
Trends: Viewership habits have changed 50% 80% 75% Watch streaming on demand video at least once per day Binge watch video once per week Share of total TV time that millennials watch on devices other than a TV Must provide access to the best content on the right platforms 11
Industry Challenges: New and non-traditional competitors Our Industry doesn't stand still 12
Industry Challenges: Technology is enabling substitution 13 New apps and hardware leveraging the Internet to deliver services
Industry Challenges: Higher content costs 14 National and global players are competing to buy content for more platforms
Industry Challenges: Regulatory intervention Can add uncertainty to intensely competitive market 15
Digital infrastructure will be key
Leading investments in digital infrastructure $3.7 Billion in capital expenditures $575 Million in R&D Delivering the best wireless and wireline networks and services 17
The opportunity ahead BCE expects to invest $20 Billion from 2015 to end of 2020 Enables Canadians to fully benefit from the digital economy Connects communities smaller cities, towns and rural areas as well as large urban centres to the best communications technologies Propels the economy and creates jobs Every $1 Billion invested in fibre-to-the-home networks creates approx. 19,000 direct and indirect jobs 18
The benefits of better digital infrastructure More consumer information and entertainment choices Job creation Business productivity and innovation E-commerce and M-commerce E-health E-government Tourism Telecommuting Increases property values Distance learning Eliminates digital divide Better broadband generates greater value and stimulates growth 19
Wholesale access to new fibre networks CRTC decision provides resellers with access to our fibre networks Essentially, the government is playing chicken with the large players and their capex budgets. July 22, 2015 Decision risks slowing investments in the digital infrastructure Canada s modern economy requires 20
What can the Government of Canada do? Modern economies need 21 st century digital infrastructure fibre broadband networks Mandated access policies have not driven widespread fibre network deployments Firm reliance on facilities-based competition policies is needed to incent massive private sector investment The best approach is to ensure that rules governing the industry do not undermine advanced digital infrastructure deployments 21
Bell Let s Talk
5 more years and a $100 million commitment National program built on 4 action pillars anti-stigma, care & access, research and workplace health
Community partners coast to coast to coast 24
And here in Ottawa... Community Fund recipients First major gift $1 Million New in 2015 Telemedicine Program 25
Because of all you have done and all that you do...