Analysts presentation

Analysts presentation

November 20th, 2009

Jean-Marc Tassetto

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Agenda

Premium brand

Anti-churn

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To become the global operator,

champion of client satisfaction

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Customer service at the core of the Neufbox by SFR

proposition



Guaranteed installation



48H assistance



Back-up 3G+ key made

available if necessary



800 Espace SFR

in France



Personalized assistance

ALL SFR SERVICES



Internet



HD TV



Fixed Telephony



Music

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Le Pacte SFR: umbrella brand of relational initiatives at SFR

A program rewarding mobile and ADSL customer loyalty

Gifts and free services without obligations

A customized program available at www.lepactesfr.fr

4 strong engagements by SFR

7 October 20, 2009

Le Pacte SFR « 100% personnalisé »

Segmented bonus catalogue

October 3, 2008

Le Pacte SFR « pour tous »

Le Pacte

« The more you top up, the more you gain »

1

2

3

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5

6

2,1 million

2/3

« Inspires trust »

« Gives me the feeling to be a special client » « Encourages me to stay loyal to SFR »

June 9, 2009

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Building on our base of 25M customers

« The more you top up the more you gain »

Price discount and bonuses for

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Agenda

Premium brand

Anti-churn

11

In early 2008, we launched a company wide anti-churn program to shift our

business model from acquisition to retention

Shifting SFR’s Business

Model from Acquisition to retention

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Key building blocks

Churn probability modelling

A

Segmentation based on customer value

B

Retention specific KPIs and dashboard

C

Rebalancing of SAC / SRC

D

Responsibilities for retention

E

Mobile

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Postpaid churn

Tariff plan migrations

Upward migrations activated on every channel front line / web / stores

Communication on upward migrations with a single brand & single special offer: Tremplin

+75% upward migration between Q3 2008 and Q3 2009

16.5%

_13.1%

Privilège handset renewal: price based on customer risk, value & loyalty

Handset selection based on our customer segmentation 5

Key levers and indicators

Postpaid churn

(12-month rolling)

Le Pacte

An « above the line » simple claim : one year with SFR = one bonus

A « below the Line » generosity based on value and risk 5

Retention platform

Dedicated retention platform with trained customer care representatives

Oral contract termination

15pt gain in retention performance

Tremplin

Mobile

6

Direct marketing

Set up of an industrialized process to proactively call customers at risk

13 Key building block

A similar program has been implemented on ADSL customer

base

ADSL churn reduction

Datamining and segmentation (risk / value)

Reactive

retention Root cause

and quality Proactive retention Migrations to Neufbox de SFR Offer

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₂

3

4

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ADSL

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19.6%

14.3%

ADSL churn

Set up of an industrialized process to proactively call customers at risk: 600k contacts since September 2008

-5.3 pts

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Reactive retention

“Hot” retention: customers who have sent their contract termination letter are contacted as part of the “hot” retention process, improvement of number of contacts by

+18pt vs one year earlier

Improvement of performance: + 6pt on “hot” retention rate 2

Key levers and indicators

ADSL churn

(annualized semester churn)

Migrations

1 million Club / Tele 2 / SFR customers migrated to

Neufbox de SFR and SFR billing system 3

Root cause and quality

Network QoS program

Deployment of new generation box on customer base

Customer care QoS program 4

Offer

Guaranteed installation, 48h repair service, end to end follow-up

Innovation on the box 5

All of SFR service

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Customer Relationship Management expertise, organisation and

tools at the center of our anti-churn program



Know our customers

J

Get qualification data



Predict their churn appetency

J

Develop scoring model for customer

appetency to switch operator



Increase the efficiency of marketing

campaigns

J

Define the best offer and communication

for each customer

J

Implement it on all direct marketing

contacts (mailing, emailing and telesales)

and customer induced contacts (customer

care, point of sale, Web)

16 Key building blocks of growth

Increase customer ARPU Manage customer value

Accelerate mobile revenue growth

2 B e lo w t h e l in e c a m p a ig n s D ir e c t m a rk e ti n g 1 M ig ra ti o n s 5 L o y a lt y a n d h a n d s e t re n e w a l p ro g ra m s 4 R e te n ti o n & d is tr ib u ti o n s tr a te g y 7 C u s to m e r e x p e ri e n c e a n d i rr it a n ts 8 U n p a id b ill s / c o lle c ti o n 9 A g g re s s iv e c o n q u e s t in h y b ri d p la n s 11 E q u ip m e n t o p ti o n s a n d a d d it io n a l s a le s 3 O ff e rs R e te n ti o n P la tf o rm 6 ₁₂ N e w s e rv ic e s a n d o p ti o n s

Churn probability modelling

A

Segmentation based on customer value

B

Retention specific KPIs and dashboard

C

Rebalancing of SAC / SRC

D

Responsibilities for retention

E P re p a id c a rd t o p u p 10

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Agenda

Premium brand

Anti-churn

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Essentiel

Illimythics 3G+

llimythics 3G+ Full Internet

SFR HV offers

Target

30-60

19-30

Mobile experts

Illimythics Pro

PRO

Customer needs Voice Voice / SMS

TV & Surf

Internet emails WiFi TV Texto MMS…

Voice Internet emails International calls

High value plans for all segments

25.90€ 33.90€ 44.90€

1H tariff plan

+8€

+11€

3H tariff plan

+11€

+11€

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Illimythics 3G+ Full Internet

Illimythics 3G+ Full Internet Plan

14 handsets available from 1€

Handsets

24/24 unlimited SFR VVM

Other services

24/24 unlimited TV

Multimedia

Emails, 24/24 unlimited SFR WiFi

Mails/WiFi

24/24 unlimited Internet 3G+

Internet

24/24 UNLIMITED SMS and MMS all op.

SMS/MMS

24/24 UNLIMITED calls to 3 SFR mobile numbers

or

Twice more time to all operators from 6pm to 8am and week-end

or

UNLIMITED calls to all operators from 9:30 to midnight (from 2H plan)

or

UNLIMITED calls to all operators from 8pm to 8 am + WE (+10€/month from 3H plan)

or

or Christmas EXTRA LARGEadvantage

Voice advantages

1H

44.40€/month

Christmas only

39.90€/month

2H

52.90€/month

3H

60.90€/month

4H

72.90€/month

5H

82.90 €/month

6H

92.90 €/month

10H

122.90 €/month

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Enriched proposition for our fixed and mobile high value

customers with over 2 million WiFi hotspots

SFR’s dual SSID approach allows Mobile

Broadband and smartphone WiFi access

Customer benefit thanks to high density of

Neufbox

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Smartphones applications: 1 million downloads

SFR WiFi (Full Internet)

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Devices

Mobile devices strongly associated with Illimythics 3G+ Full Internet offers and applications

A large choice of mobile broadband offers for netbooks

Blackberry Gemini Curve 8520

1€ MTV 4.0 1€ Blackberry Storm 2 9520 149€ 49€ and more Find&Go

Windows phone

Keyboard for the mass

market

A large range of

smartphones

First Windows 7 3G+

embedded netbook

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Mobile broadband offer portfolio covering all needs and

benefiting SFR clients

The youth

with valuable

heavy use

Internet

enthusiasts loyal

to their operator

Occasional

users with

limited budget

Specific

tariffs for

SFR

customers

- 10€

- 5€

- 5€

- 5€

The most competitive

offer of the market

Tariffs for all

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« Entrepreneur Pack » a complete broadband, fixed and

mobile telephony bundle

Internet and fixed

telephony

Business day

unlimited mobile

telephony

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Open innovation to reach out to all our customers

In partnership with Europ Assistance, SFR has designed a specific offer to stay in touch

with your family, ease your everyday life and if need be assist you 24/24

A simple and robust

mobile handset

To ease the use of your mobile

Specific tariff plans adapted to seniors

To call your family and be reached anytime

Optional24/24 health assistance

To access health information or get assistance wherever you are

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From 23.90€

9.90 €

Programmes de l’antenne proposés en catch-up

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+ 20 channels included pour les

in Illimythics 3G+ and Full Internet plans

+ 30 channels included in forfaits

I/G Phone (MTV & AB)

FIXED MOBILE

+ 150 channels included

26 TV options

(channel pack or unit channel) 20 ethnic options 35 € 15 € 8 € 10 € 6 € +

+ 30 channels included (MTV &

AB)

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Catch-up and VoD



Aug. 4th 2009: Launch of catch-up TV, M6 Replay.

Strong adoption: M6Replay used by 15% of IPTV

customers.



Oct. 2009: Launch of new interface of Dailymotion via

set top box on Oct. 20

_{Already more than 200k}

videos streamed everyday



Oct. 6th 2009: Launch of catch-up TV, Canal à la

demande. Strong adoption: Canal à la demande used

by

of Canal IPTV subscribers.

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SFR live concerts on all screens

PHOENIX – The best of THE TING TINGS – The best of

BEN HARPER – The best of FRANZ FERDINAND – Le Concert

Channel 80

Mobile

Web: