Third Largest National Provider

Transcription

1 Safe Harbour This presentation contains certain forward-looking statements and there are risks that actual results may differ materially from those contemplated by these forward-looking statements. Additional information on these risks can be found in the Company s filings with the Canadian securities commissions. The Company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Third Largest National Provider 1

2 Corporate Priorities Deliver IP Services Optimize Business Create Value Deliver IP Services Fibre Route Network Access Point U.S. Network Access Points Edmonton Burnaby KamloopsCalgary Saskatoon Vancouver Victoria Richmond Winnipeg Spokane Regina Seattle 19,000 19,000 Km Km Fiber-Optic Fiber-Optic Network Network City Networks 100, ,000 Business Business Customers Customers 8 8 U.S. U.S. Connections Connections St. John s Thunder Bay Quebec Montrea l Area Champlain Hall SudburyOttawa GTA Hamilton London Detroit Buffalo Halifax New York Chicago Ranked #2 In Business Markets 2

3 Optimize Business Capitalize on synergy opportunities Gain efficiencies of scale & scope Strengthen cost structure Create Value Share Performance* MTS S&P/TSX Comp CAGR 20% ** January Oct *Assumes $100 invested Jan 7/97. Includes price appreciation & dividend reinvested **Compound Annual Growth Rate Jan 7/1997 to Oct 29/2004 3

4 Create Value Dividend Yield * (%) Telus Aliant BCE MTS *Based on November 4, 2004 closing prices Balancing Growth & Investment Customers & Shareholders 4

5 Balancing Growth & Investment Customers Delivering new & improved services Opportunity to invest & capture growth Pursue new markets Enhance customer satisfaction Balancing Growth & Investment Shareholders Return on investment Sustainable & profitable growth Prudent cash management & utilization Strong Track Record of Success 5

6 Balancing Growth & Investment Bell West investment Concluded sale August 3/04 Received proceeds of $645 M MTS TV Exceptional progress-to-date Well positioned for entrance of cable telephony Competitive Landscape 3 National Players Niche Players Entering Market Strengthening Balance Sheets 6

7 Broadband IP Evolution Catalyst for Change Customers Service Providers Regulators Higher Expectations & Demands New Investment Requirements Foster Competition Vision Capabilities Execution 7

8 Vision Delivering new IP-services to national business market Lead the Manitoba market Capabilities Leading edge network & service approach Entrepreneurial & results-oriented team 8

9 Execution Strong track record Pragmatic thinking Prudent approach Organizational Structure MTS Bill Fraser CEO NATIONAL OPERATIONS John MacDonald President MANITOBA OPERATIONS Cheryl Barker President 9

10 $40M Annual Operating Synergies National Service Porfolio Connectivity Infrastructure Management Information Technology 10

11 National Operations Next Generation Products 8 new services introduced 12 new services to be launched in 2004 Fully managed enterprise IP telephony solution Wholesale VoIP access Network Resident IP Telephony Sales quotas & bookings on track Looking Ahead Build Value 11

12 Manitoba Operations Wireless Growth (%) Revenue Customers * *At September 30 Manitoba Operations High-Speed Internet Customers * 97,451 61,628 82,678 34,015 11, ** Consumer Market Share >50% * At December 31 **At Sept. 30 Consumer Market Share >50% 12

13 Manitoba Operations Digital TV Customers 25,422 19,972 8, Jan Dec June 2004 Sept Manitoba Operations Traditional Services Local Long Distance Directory 13

14 Proforma * Financial Outlook Revenue EBITDA Free Cash Flow Capital Spending EPS Cash EPS** Proforma YTD Sept $1.5 B $500 M $225 M $202 M $2.02 $3.20 Proforma 2004 Targets $2.0-$2.1 B $670-$680 M $265-$295 M $315 M >$2.75 $4.15-$4.30 * Assumes Allstream and MTS existed as one company on January 1, Excludes one-time costs for the acquisition of Allstream and the special payments for the pension plans unfunded positions. ** EPS plus future taxes. Progress Report Issued $570 M in long-term debt Received solid credit ratings Reached settlement with Bell Canada Concluded sale of investment in Bell West 14

15 Progress Report Quarterly dividend increased by 160% $0.65 per share Attractive yield Substantial Issuer Bid Offer closed September 21, 2004 Purchased 18,604,645 shares at $43 per share Delivered $800 M value to shareholders 15

16 MTS / Allstream Strengths Leading edge network Growing portfolio of IP services Strong national growth opportunity Strong, skilled employee base Experienced management team Excellent financial position Well Positioned to Create & Deliver Long-term Shareholder Value 16