第一組 組長： 陳宜軒 組員： 黃婕昕 林政陸 指導教授：黃光渠 教授

Outline ‧ About EE ‧ Financial ratios ‧ IFE & EFE

History of EE Deutsche Telekom and France Télécom announced plans to merge their respective UK ventures on 8 September The merger was cleared by the European Commission on 1 March The joint venture was announced as completed on 1 April 2010, and the name Everything Everywhere was announced on 11 May About EE 1

the most advanced digital communications company in UK Britain’s biggest 3G mobile network 1st in Britain to offer superfast 4G mobile services fixed Fiber Broadband service has now reached 15 million households have lots of conversations with customers About EE 2

Vision & Mission They believe in giving the UK the best network and best service so our customers trust us with their digital lives. How to achieve this goal 1.Best network 2.Best service 3.Customer trust and relevance About EE 3

Financial Ratio 4

Debt/Asset ratio almost under 50%, which means EE’s financial structure is strong. Note the long-term debt-to-equity rate, it become twice in Because EE had been issue new bonds. 5

TIE ratio jump up to 8.6 in 2012, due to EE started their 4G service and earned a little bit money before other rival enter the market. Second reason is that EE paid off their shareholders’ loans (intersest rate 0.6%)by new Eurbond loan(interest rate 0.25%). 6

A/R turnover decline form 88.3 to 59.97, it represents that due to more and more short-term prepaid customers. New service provided by 4G attract more customer to use their system, raise their sales and direct raise their inventtory turnover. 7

8 Because EE has large investment in 4G network technology in2011, its EPS fall down from 2011 to Even if EE has profit in 4G, it still can’t balance the large investment and cause its cash flow fall down.

Revenue External Purchase Amortisation &Depreciation 單位： (£m) 25.65% 23.69% 1.9% 2.36% 41.11%1.21% 9

IFE & EFE 10

IFE WeightRatingWeighted Score Internal Strengths Wide network coverage Maintain Market Leadership Strong Customer Base Strong brand equity and recognition in Europe Excellent Marketing Capacity Comprehensive Services Portfolio through 3G & 4GEE networks High service price at 3G Low service price at 4G Many 4G device for handsets Internal Weaknesses poor bottom-line performance company's involvement in litigations Steady decline in average revenue per user (ARPU) Total Weighted Score EE's 3G network covers 98% of the UK population. 2. EE's 4G coverage is still way ahead which coverage in 30 of the UK's 69 cities, over 60% of the UK population. EE: 30 UK city 02: 13UKcity Vodafone: 11 UK city EE has 15 different 4G devices, including the network-exclusive Huawei Ascend P1 LTE. O2 offer 13 different devices, Vodafone has 13 different handsets. EE has cut the cost of access to its 4G network EE's cheapest 4G plan was £26. Vodafone's entry-level offer for a 4G handset plan is £34, O2 offers a similar deal at £32. EE offer 3G plan with £32 and £37 Vodafone offer £29 O2 offer £32. rivals that any attempt to stop its rollout of fourth-generation mobile services

EFE WeightRatingWeighted Score Opportunities Increasing mobile data market Growing smart phone market New technology -Fiber Broadband investmentFiber Broadband Oversea investment in new emerging nations Technology innovation with lower operating cost Trend of globalization for telecom industry Threats Weak 4G market Regulatory changes from government in fixed line Competitive pressures from other rival Uncertainty of new technology deployment No presence in key emerging markets Economic slowdown in the European Union Total Weighted Score new Fibre Broadband network. It gives you a home broadband connection typically 10 times faster than the UK average. EE Q results: 4G rises in a weak market

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