3. 3
Telenet Context
3
Never give up…
John F. Kennedy
“The time to repair the roof is when the sun is shining.”
4. 4
Raising standards means PREPARING FOR THE FUTURE
The challenge is to go from GROWTH TO GROWTH without falling into decline
The secret of constant profitable growth Raising standards
4
B
A
Are you about to reach point A ?
Do you have plans to accelerate your growth ?
Why raise the standard?
5. 5
Key Financials
From innovating challenger to a mature innovator
0
500
1.000
1.500
2.000
2.500
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Revenue
0
200
400
600
800
1.000
1.200
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Adj EBITDA
2007-2013: historical consolidated IFRS financials / 2014-2017: analyst consensus compiled on July 8, 2014 and based on estimates of 18 sell-side analysts
11.7
4.5
14.6
4.4
% rolling CAGR
6. 6
The story of Telenet A strong brand and service offering
Legacy Telenet Network
Interkabel Network = acquired Oct 1, 2008
+ 1/3rd of Brussels
Strong network
Product leadership
Internet
Broadband
Telephony
Fixed
Television
Cable & Digital
Mobile
Tel & Internet
All-in-one
Digital
Speed leadership vs DSL
Transparant rate plans
The ultimate viewing experience
Enjoy the freedom of 3G & WiFi
Best value for your money
Service is key
Our people
Solid financials
•Fully upgraded bi- directional Hybrid Fiber Coax (HFC) network, Fiber to the node
•Covering 2,9M HH (63% of BE)
•2,8M homes passed with our cable (98% reach)
•2,3M unique customers (81% cable penetration)
•Strong diversified MT
•Balance btw long track record and outside experience
•Great company culture, promote from within
•Strong revenue growth and significant runway ahead
•Sustained focus on efficiency and disciplined cost control
•Prudent balance sheet management
•Customer loyalty closely measured
•Management reward system based on satisfaction levels
•Leading service levels thru efficiency
7. 7
Finance vision requires transformational change Ahead of the curve
7
Proactive value driver
Scorekeeper
Firefighting
Structured processes
Steward and stakeholder
Catalyst of change
Individuals
Team
Lots of data
Actionable insights
From … 'Keeping up'
To … ‘Ahead of the Curve'
8. 8
Pro-actively respond to changing demands 2014 ambition
Finance, Procurement and Supply Chain to add sustainable value and increase business partner satisfaction through excellence in service, cost and quality
ROLE
Finance, Procurement and Supply Chain on the move to proactively respond to the changing demands of Telenet's future
2014 AMBITION
9. 9
Ahead of the curve Sustainable value growth and increased business partnership through 8 initiatives with clear deliverables / KPIs
9
Design and implement 3yr planning horizon as part of LRP
Deliver structured link of 3y strategic action plan with budget
Implement regular scenario planning with adequate tools
Set up “Are we on track” analyses
Shape 3-year planning horizon
2016 targets closely monitored
Run cost control program incl. synergy exploration with LGI
Implement enhanced investment planning based on RoI logic
Hardwire continuous improvement and cost awareness
Alignment with Capex Rolling Project
Stabilize RoS and improve continuously
€x M OCF increase
Propose, align and implement binding 'Financial calendar'
Propose, align and implement streamlined budget process with binding deadlines and clear input processes
Fix budget process
Binding budgeting calendar for Telenet
Establish a cash lab for ongoing cash analytics and mgmt
Run dedicated TWC & cash program assessing cash levers
Strengthen cash & TWC awareness for continuous improvement
Hunt for Cash
€x M FCF increase
Align definitions across departments and with LGI
Establish E2E alignment between Controlling, BO & BI
Define business unit P&Ls (carve-out TfB)
Establish BI tiger team to ensure delivery of commitments
Create E2E business insights
Max 10 crisp dashboards, align P&Ls and 50 key definitions
Execute transition to US-GAAP
Set up training program on US-GAAP also covering remaining reporting in IFRS
Convert to US-GAAP
US-GAAP as standard for all internal reporting
Perform capability & high potentials screening
Compile manual for HR leadership planning in Finance
Foster top talent attraction for Finance
Attract, keep & develop talent
Fin leadership program, Fin competency map
Perform Finance health check and clarify all interfaces (roles and responsibilities) within department and beyond
Take full ownership of risk governance
Procure 2 Pay LG Project
Prepare Fusion implementation
Clear Finance health dashboard, Risk Gov. implemented
Prepare Finance for the future
1
2
3
4
5
6
7
8
10. From volume to value - part 1 2. Creating E2E business insight
11. 11
Business office objective Report with business insight, facilitate performance drivers & scenario planning
11
BO objectives
Create P&L review with business insights
Facilitate drill-down of performance gaps
Facilitate scenario planning / value analysis
Design summarized management reports that include key business drivers
Provide a clear indication of the status of (value based) KPI’s with a identification of risks and opportunities
Description
Example
Assist the business responsible in calculating the effects of different scenarios on the P&L
Provide management with clear insights into what specific parts of the business are responsible for under- or over- performance and assist in defining necessary actions
12. 12
Business office From multiple operational reports to a single management report for RMD & SLT
Currently there is a multitude of operational reports which are shared with the RMD management team inhibiting an optimal steering of the Residential market
Current situation
In the future the amount of operational reports will be reduced and the remaining reports will only be used by the operational teams to manage the day-to-day business
Dashboard Hotspot
Triing Dashboard
SLT & RMD
Entertain- ment report
Mobile report
Fixed report
Yelo TV dashboard
CI+ Sales Dashboard
Daily KPI Dashboard
Future situation
Operational steering
Tactical & strategic steering
With this project we aim to create 3 reports for RMD and consolidate them for RMD and SLT to facilitate tactical & strategic steering
Example reports
Example reports
Management
reports
Dashboard Hotspot
Triing Dashboard
Daily KPI Dashboard
SLT & RMD
Entertain- ment
Mobile
Fixed
Yelo TV s dashboard
CI+ Sales Dashboard
Daily KPI Dashboard
Other
Daily KPI Dashboard
13. 13
Step by step approach for business KPI reporting Ensure managebility and acceptability
• Base
• List price revenue
• Other revenue
• PAC & PRC
• SAC & SRC
• Base
• List price revenue
• Key KPIs on customer dynamics (e.g. Whop & Whoppa report)
Q2-2014
~ Q4-2014
Level of management insights
~ Q2-2015
Volume focus - Household
Volume dynamics translated into value indicators, based on list price
Extend business steering from volume & list pricing to ROI based steering
Examples
1 PAC = Promotion Acquisition Costs; PRC = Promotion Retention Costs; SAC = Subscriber Acquisition Costs; SRC = Subscriber Retention Costs
1
2
3
14. 14
Business office value driver tree Facilitating deep understanding of impact initiatives allowing proactive steering
Value driver analysis
Input for strategy
1.Develop different scenarios
2.Estimate impact of scenarios based on impact on value drivers
3.Optimize strategy and initiatives based on impact assessments
•Understand historic performance based on value drivers
•Analyze value driver trends
•Analyze and understand sensitivity of value driver and its impact on financial results (short, medium term)
•Understand impact of initiatives
16. 16
Business office Critical success factors
•xx
Management commitment
Focus and simplicity
Focus on clear links between financial and non financial drivers
Select performance indicators that are easy to understand
Ensure clear link with P&L that is well understood by BO and controlling
Focus only on metrics that are easy to measure and for which information is available
Management needs to commit to drive and support implementation of the performance management framework (KPI/prioritisation has to be accepted within the company)
Management has to be available for decision-making, validation of and participation in project work
Collaborate intensively to employees directly involved in the performance management implementation (especially BI, controlling and business)
Require involvement and education of an internal Business Office experts to build up knowledge in-house
Establish regular progress meetings as part of a structured governance process (monthly)
Clear division of responsibilities between Control, Business Office and BI shop
Knowledge and communication
Governance
17. From volume to value – part 2 Polaris, a Business Intelligence perspective
18. 18
Creating sustainable growth Based on strategy with expensive innovation
Deliver an Amazing Customer Experience underpinned by a Superior Pipe
Amazing Customer Experience
Superior Pipe
19. 19
Realizing an amazing customer experience Data is the key
It is all about making it personalized
20. 20
Polaris as a strategy Data as company asset, a cube with value driven BI applications
Cube characteristics
Consistent
Comparable – reusable
Connected
Single version of the truth
Pricing definition
Channel Balancing Management
Migration of products
Customer lifetime
value
Call Driver
analysis
Shift to
e-care
Network roll out optimizer
Device usage monitor
Orion – TfB reporting
Interactive dashboard
Simulation tool
P&L statement
per channel
Scenario
analysis
Commissioning
Target migrations
Profiling
Commissioning
CLV model
Costs drill-down
Usage
simulation
Performance
management
Forecasting
model
Automated analysis
Dashboard for e-care development
Geographical map
Usage per household
Forecasting model
NPV/payback
In-house
performance
Mobile usage
Overall TfB reporting
Campaigns
Ongoing
