Agenda
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360° EiExperience A unique service experience for our customers
Speed leadership through Fibernet
Internet Television Richest experience & !""#$%&'( convergence Platform
Bundles
Maximize ARPU per unique customer
20 Broadband Internet
Speed leadership with Fibernet Broadband internet Consistently growing by approx. 100, 000 subscribers per annum
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F; ! 20 ;= @. %. XC 4C !\ ! 15 ^= FB !. ! 10 0% 10% 20% 30% 40% 50% I)@,&H$%:&H:"&6,",#$:#)%"6,$(:6)#:W;)&2343Y %$"1#+<_."1$>+5(-$::&<<&$(W/.-!W."1$<353W-5>)+:&(&-$(<"?3&()5(5?V<&< X$3+_@1$5825(8U&3*53?+5<3M92><8$U(W$(?VK?53K++21$5825(8<"2<#1&>3&$(<&(#?"8+8JaMRE@6$?":+8$U(LW>1&#+<&(#?"8+4^=W$(?V1+#"11&()K++<U&3*$"33+:>$151V 27 8&<#$"(3<51+&(#?"8+8W1+["&1+8?&(+1+(35?<&(#?"8+8W+D#?Y<$#&5?351&KKW($(Ͳ1+#"11&()K++<+D#?"8+8W>1&#+<5<>+1HMA5("51VHOMM But… there is clearly going to be a need for more bandwidth ?%"1';,$ )#)"#,$",# #77)#$:77)(6$%`#)`,(#)%" !"234=b#$:77)(%"#.,a0a,0,",# HOOQͲHOMN ",#9%$+9)00,c':0d F&?+%*51&() ;(3+1(+34&8+$ ;(3+1(+34&8+$3$=4 d+2]!535 4&8+$-5??&() /(?&(+E5:&() 4$;7 434bDF> ;)00)%".%'$1 %7;'1)( 4b2KJ ?E^Z M)00)%" =DP A0',Z:- R]R1 FD2DFbD2D;)00)%" .%'$1%7G)&,% =3C3=b3C3H)00)%" HOOQ HOMO HOMM HOMH HOMS HOMN &)/)#:06.%#%1 28 %$"1#+_-&<#$4&13"5? X+3U$1' ;(8+D,3+5:5(5?V<&< Fibernet ItInternet a ttht the spee d o f light More bandwidth More connected devices More multidiltimedia 29 Fibernet NdtNew product lineup antici pat es growing bdidthbandwidth needs R%9"1#$,:; >MH61 4CMH61 >3MH61 D3MH61 433MH61 ]%0';, 4C^A C3^A 433^A IQU IQU U$)(,V;%"#. J&(#?Y4^=L X4J[K3 X=3[D> X>>[KC XD>[KC XKK[33 U$)(,9)#. WeeY #$)60,Ͳ60:-WeY X>C[33 Ͳ XC>[KC XF>[KC XKK[33 JeL.D#?"8&()@5<&#-52?+=4<"2<#1&>3&$( 30 JeeL;(531&>?+Ͳ>?5V%*5'+,@5<&#(+3 8$U(<31+5:<>++8*5<2++(">)158+83$MR92>< Broadband market ppgoised for further growth A$%:&H:"&6,",#$:#)%"6,$)".:H)#:"# JAA?"?VHOMOL =J[2P =J[FP A,0/)';.:19,00Ͳ&,G,0%6,&H$%:&H:"& )"#,$",#;:$+,# =3[4P =3[DP =4[=P 2C[DP ?%;6:$,&#%0,:&)"/H$%:&H:"& (%'"#$),1b1#)001)/")7)(:"#/$%9#. %66%$#'")#-:.,:& E11';)"/,c':0;:$+,#6,",#$:#)%":1LTb f2CPH$%:&H:"&;:$+,#/$%9#. U,",#$:#).)%"/$%9#.2343G1233KJ&(I>3 3[KJ 3[K3 3[JC 3[J3 3[F3 EH%G, 31 RS QS Ric hest experience and convergence Digital TV SiltfSuperior platform appeals t55%fTVto 55% of TV customers i5in 5 years time RR)/)#:0)/)#:0a]",#:&&)#)%"1 JOOOL R)/)#:0)g:#)%" $:#, JIL #$(6+1<&$( 153+ $K SHQ !&)&35? ^(5?$) 3$35? =4<"2<#1&2+1 25<+ 2>C HMT >CP RGI MRM MRG GGI GHI GR CCP KP 43P 44P 4>P 44P NSI HSI HTI 233C 233D 233F 233J 233K 2343 233F 233J 233K 2343 ^865(#+8&(3+15#3&6+8&)&35?=4>?53K$1:$KK+1&()0!,S!5(831"+Ͳ4/!W !00&!"1#:00,&H%@,1J!+#ͲHOMOL PRI$K8&)&35?=4#"<3$:+1<*56+0!W 0&)*!+K %35(8518!+K X+U+?+#31$(&#>1$)15::&())"&8+J.7EL53315#3+8:$1+(+U"<+1<3$ 6&8+$Ͳ$(Ͳ8+:5(8W 7B;9.?&(+">+D3+(8+8U&3*E$?K-*5((+?W =CP ;(3+15#3&6+5>>?5&$(<+(1&#*+8U&3*U+53*+115851,$(?&(+>$135?5(8 $3*+1K+53"1+ 33 Digital TV CtidContinued strong marktket share oftf net additions R)/)#:0a];:$+,#1.:$,1Ͳ A,0/)'; Z,0:#)G,;:$+,#1.:$,%7",#:&&)#)%"1NA,0/)';JeL JA"(+HOMOL MTO 80% =+?+(+3 @+?)5#$: @+?)5#$: fF1++=4g ^%=B^ 4// MPO 70% -$8&3+? =44?55(8+1+(]=h?h%53 !== MNO 60% HI MHO SI 50% NI MOO 40% MOI TO 30% STI PO 20% NO MSI HO 10% O 0% O>233JO4233KO2233KO=233KO>233KO42343O22343O=2343 SOI =+?+(+3 @+?)5#$: 951'+3<*51+$K(+3588< JeL951'+3<*51+$K(+3588&3&$(<#5?#"?53+8$(3*+25<&<$K=+?+(+3Z< 5(8@+?)5#$:Z< !&)&35?=4<"2<#1&2+1<5(8+D#?"8+<$3*+1!&)&35?=4>?53K$1:< 34 %$"1#+_@+?)5#$:W=+?+(+3W3+5:5(5?V<&< Every analog TV customer converting to digital doubles the ARPU on average R)/)#:0)g:#)%"$:#,JIL EZUQ6,$#-6,%7('1#%;,$ !&)&35? ^(5?$) @5<##+<<K++ !&)&35?<+16&#+< NRI RGI GGI GHI @2 TPI QRI RRI NSI HSI HTI MNI RI 233C 233D 233F 233J 233K 2343 E":0%/a]1'H1($)H,$ R)/)#:0a]1'H1($)H,$ ?%"#)"',&(%"G,$1)%"%7('1#%;,$17$%; 5":G,$:/,b,:(.('1#%;,$(%"G,$#)"/7$%; :":0%/#%&)/)#:0a] :":0%/#%&)/)#:0&%'H0,1#.,EZUQ !"($,:1,7$%;'6#:+,%7:&&)#)%":01,$G)(,1B $,"#:0b(%"#,"#6:(+:/,1b]5R:"&)"#,$:(#)G)#- 35 The value chain from analoggg to digital TV Analog Rental Channel On-demand / Cable TV Box Packs Interactivity X4>[> XJ XCͲ X2F U:-6,$'1, 1+(35?K++ >+1588&3&$(5?>5#' 2C:":0%/a] \,#Ͳ#%6H%@9)#. \,0,(#)%"%7 ])&,%%" (.:"",01 8R:"&.:$&&)1+ #.,;:#)( R,;:"& 23:":0%/$:&)% J3&)/)#:0a] (.0.:"",01 A&A$%:&(:1#) "/%" (.:"",01 (.:"",01 \,0,(#)%"%7 R,;:"& >a]1,#1 =3&)/)#:0$:&)% 6:-a] (.:"",01 !"#,$:(#)G, (%"",(#:H0, (.:"",01 :660)(:#)%"1 36 ^??>1&#+< 51+ 1+35&? >1&#+< >+1:$(3* 5(8&(#?"8&() 4^= Very advanced customer base, technology penetration ahead of US markets 8RH%@ ]5R'1,$1 V R]Z6,",#$:#)%" 6,",#$:#)%" #%#:0 a]H:1, PRI GGI NNI NRI RRI GMI RHI SNI STI 233K 2343 Q\Ͳ 2343 233K 2343 Q\Ͳ 2343 233K 2343 Q\Ͳ 2343 37 %$"1#+_X&+?<+( 1+<+51#*,=+?+(+3 Video on demand >47 million VOD transac tions i2010in 2010 or 373.7 per customer per month ]5Ra$:"1:(#)%"1 ^$%9#.%66%$#'")#),1B HO RYO 9&$ ?%"G)"(,1,")%$1 315(<5#3&$(< NYR MR NYO !;6$%G,:9:$,",11 NYH MO SYR !;6$%G,,:1,%7'1, SYR SYR SYP SYO R U$)(,6,$(,6#)%" HYR :"&&,7)")#,0-B O HYO O42343 O22343 O=2343 O>2343 \,:$(.*$,(%;;,"& 4/!315(<5#3&$(< ^6+15)+4/!"<+>+1&!=4>+1:$(3* !;6$%G,& ^Q! <@#,"1)G, 0)H$:$- \'6,$)%$9)"&%9 E00;:`%$1#'&)%1 a.,:#$, ?.:$:(#,$)1#)(1 E000%(:0:"&;:`%$ ]5R H$%:&(:1#,$1 fC33;%G),1 U:-a] 8R%"Ͳ&,;:"& I$,,#%:)$ 38 Our payTV offering: PRIME Movie & Sports Attrac tive linear pay TV c hanne ls comp lemen te d by r ic h VOD library C(.:"",01 UZ!M<M%G), E00;:`%$1#'&)%1 8R(.:"",0 F(.0.:"",01 UZ!M<\6%$# !"#,$":#)%":01%((,$ UZ!M<5"Ͳ Q"0);)#,&]5R &,;:"& !"(0'&,&)"1'H1($)6#)%" 39 Opportunity to convert remaining 45% of analog TV subscriber base to digital a%#:0(:H0,#,0,G)1)%"1'H1($)H,$1 SOOO ;(3+1'52+? 5#["&<&3&$( HROO HOOO MROO CCP MOOO h23P(%"G,$1)%" %7$,;:)")"/ :":0%/ a] ROO ('1#%;,$1 #%&)/)#:06,$:""'; O 233> 233C 233D 233F 233J 233K 2343 2344, 2342, 234=, 234>, !&)&35? ^(5?$) 40 Innovation and time to market has been a key driver for digital TV 2011 2010 =RͲa] 2010 Z,;%#,U]Z W9,H*;%H)0,Y 2007 8)/.Ͳ R,7)")#)%" 2005 !"#,$:(#)G)#- :"&]5R 41 Yelo The next step: wathtch TV vitirtua llyeverywhere >90,000 downloads >1, 000, 000 sessions >1,500 co-creatorscreators 42 Yelo The next step: wathtch TV vitirtua llyeverywhere 5" a]^')&, T)G,a] &&&,;:"& 43 Telephony Mobile complementary to fixed and WiFi Fixed telephony Fixed li ne remai ns a rel evant prod uct as part of b undl es I)@,&#,0,6.%"-",#:&&)#)%"1JOOOL I)@,& #,0;:$+,# 1.:$, JILe MMH =+?+(+3 -$:>+3&3&$( QM QS TM GG GT F> PG PRI RQI RPI NT RM PQI HQ NNI P SMI SRI NMI 4KKK 2333 2334 2332 233= 233> 233C 233D 233F 233J 233K 2343 233F 233J 233K O=2343 JeL$( =+?+(+3 K$$3>1&(3, #$:>+3&3&$( 853558i"<3+8 25<+8 $( $U( +<3&:53&$(< -$(3&("+8>+(+3153&$(5:$()<3$"1#"<3$:+125<+,1+5#*&()HTYQI533*++(8$KHOMOW X+3(+U<"2&22<#1&2+1)1$U3*8&81&6+(22&V53315#3&6+K?53ͲK?8K++153+>?5(<5(8:"??&3&> ?+Ͳ>?*?5V)1$U3*W %"<35&(+8:51'+3<*51+)5&(<8+<>&3+:53"1+5(8&(3+(<+?V#$:>+3&3&6+:51'+3W B+?&52&?&3V5(8#*+5>K?53ͲK++>?5(<1+:5&('+V5865(35)+<$6+1:$2&?+Y 45 Mobile telephony SlidSolid mark ktet sh are i n net additi ons f uel ldbed by idSIMtititimproved SIM activation rate U%1#6:)&;%H)0,;:$+,#1.:$,1Ͳ ",# M%H)0,#,0,6.%"-",#:&&)#)%"1JOOOL :&&1A,0/)';Jj=!kSMOL PQ NSNS NH =+?+(+3 71$D&:"<J-@cL 9$2&<351 @^%. SM MS 233D 233F 233J 233K 2343 4JP \!M:(#)G:#)%"$:#, 2FP MOOI QOI TOI GOI POI ROI NOI 4DP SOI =KP HOI MOI OI i:"Ͳ3K M:-Ͳ3K \,6Ͳ3K i:"Ͳ43 M:-Ͳ43 \,6Ͳ43 46 %$"1#+_@+?)5#$:W9$2&<351W\7XW=+?+(+3W3+5:5(5?V<&< Mobile telephony IdtitfhihtlltihdtbidiIncreased appetite for higher rate plans, selective handset subsidies j:0+*a:0+3 j:0+* j:0+* jj0+:0+* j:0+* a:0+4C a:0+23 a:0+=3 a:0+>C M)"'#,1 )"(0'&,&WeY Ͳ JJ 44J 4FD 23D 5Z \M\ Ͳ 42C 4DD 2C3 2K4 )"(0'&,& R:#: Ͳ Ͳ Ͳ Ͳ 233MA )"(0'&,& U$)(,V;%"#. X3[33 X4C[33 X23[33 X=3[33 X>C[33 J&(#?Y4^=L U$)(,6,$ X3[4F X3[4F X3[4F X3[4F X3[4F ;)"'#,WeY U$)(,6,$ X3[42 X3[42 X3[42 X3[42 \M\ X3[42 JeL=$?5(8?&(+5(8:$2&?+(":2+1<&(@+?)&":,8"1&()>+5'5(8$KKͲ>+5'*$"1< 47 Jd5?'l=5?'MR,HO,SO5(8NR5??*56+5HNͲ:$(3*<"2<#1&>3&$(>+1&$8]#5(2+#$:>?+:+(3+82V<+>5153+:$2&?+8535<"2<#1&>3&$( Mobile telephony AlithihltAppealing more to higher value customers T)/.# M]L5 T:'"(. ",9 $:#,60:"1 a%&:- O=233K O>233K O>2343 9&8 0&)* C$U L,9\:0,1 9&8 C$U C$U 9&8 O=233K O>233K O>2343 9&8 0&)* E(#)G, \'H1($)H,$ 9&8 A:1, C$U C$U C$U 48 Unleash the power of WiFi Telenet Hotspots / WiFi homezone + Telenet Mobile a,0,",# 8%#16%#1Bf4b2330%(:#)%"1 W:)$6%$#1b#$:)"1#:#)%"1b.%#,01b.)/.9:-6:$+)"/1Y a,0,",# $,1)&,"#):0j)I) f=3P6,",#$:#)%" !"#,$":#)%":0(%G,$:/, f4>3b3330%(:#)%"1)"KC(%'"#$),1 #.$%'/.)U:11 49 The convergent future: mobile needs fixed internet WiFi at home Connected through Home Gateway 50 Our stepped approach in Small Business (SoHo/SME) 1997 - 2009 2010 2011 !"#,$",# a,0,6.%"- Z,1)&,"#):0 1 H'1)",11 H'1)",11 6$%&'(#1 6$%&#&'(#1 6$%&'(#1 2 Z,1)&,"#):0\,$G)(,1 U$%7,11)%":0 M:":/,& k5",1)g,7)#1:00l 1,$G)(,1 1,$G)(,1 \:0,1b Z,1)&,"#):0\:0,1 56#);)g:#)%"%7 M:$+,#)"/ 3 ?.:"",0E66$%:(. 1:0,1(.:"",01 \,$G)(,,@(,00,"(, 51 Small Business Dedicated service and product innovation enables market penetration increase and ARPU uplift PQI aHO+:>?$V++< Z,6$,1,"#1 C3P%7A2A#,0,(%; ;:$+,# MON9+(8HOMO aHOO\#"<3$:+1< 11.8% 13.3% 9.6% 9.1% 7% 7.9% ^$%9 )"/ 1.:$, 9)#.)" a,0,",# (1#%;,$('1#%;,$ H:1, ;X= =.C Jan/09 Jan/10 Jan/11 <'$%R%(1)1 =[3H'1)",116$%&'(#1 1#$%"/0- );6$%G, EZUQ a,0,",# \;:00 A'1)",11)"#,$",#;:$+,# 1.:$, )"($,:1,& FP---%- 52 Conclusion: n PdProduct ldleaders hip a]B#., '0#);:#,G),9)"/,@6,$),"(, m^(5?$)3$8&)&35?315(<&3&$(_1+8"#+3$35?#$<3$K$U(+1<*&>$K<+33$>2$D+< m9"?3&<#1++(]8+6&#+_j+?$ mB&#*+<3+D>+1&+(#+_(+U"<+1&(3+1K5#+U&3*<+51#*l1+#$::+(8 !"#,$",#B,@#,"&)"/16,,&0,:&,$1.)6 m%>++8?+58+1<*&>_."1$!$#<&< SYOnf1+5?<>++8g m=*+#52?+K$??$U<V$"_0$:+<>$3< m95'+*&Ͳ<>++81+?+65(3_:"?3&<#1++(<+16&#+<Jj+?$L M%H)0,B0,:&#.,1;:$#6.%",9:G, m.D3+(8<"2<&83V:$8+?3$3$>Ͳ+(8<:513>*$(+< m^#*&+6+>1&#+]65?"+>51&3V m0$3<>$3]d&F& #$6+15)+ a,0,6.%"-B,".:"(,G:0',%7#.,7)@,&0)", mC$U+<3:51)&(5?#$<3&(31&>?+>?5V2"(8?+< m%9.<$?"3&$(< mF&D+8Ͳ3$Ͳ:$2&?+315KK&# A'"&0,1BH,1#G:0',7%$-%'$;%",- m%:513>*$(+?+58+1<*&> m71&#+]65?"+>51&3V m0$3<>$3]d&F& #$6+15)+ 53 Conclusion: o Key grow th dr ivers M)/$:#)%"7:(#%$-N M%H)0,$,G,"', m,0%G)$#'%'1()$(0, );6$%G,LU]V('1#%;,$ A:1)(7,, I)@,&1,$G)(,1 F&2+1(+3] LU] M%H)0,1,$G)(,1 d&F& EZUQ6,$('1#%;,$ A$%:&H:"& M)/$:#)%" ,"/)", \)"/0,60:- a$)60,60:- O':&60:- U%$#:H0, 5"0)", Iteration &,G)(,1 (%"#,"# %:513>*$(+ X+U1+6+("+ =52?+3< M:$+,#,G,"#1 54+5( -$::&<<&$( @1$5825(8 <"16+V HOMO Television