Sunrise Communications Ag Class A · SIX:SUNN

Sunrise Communications Ag Class A — Investor Presentation (September 2015)

13 slides from Sunrise Communications Ag Class A's investor presentation, September 2015

  1. Slide 1: Sunrise Communications Group AG Investor Presentation, September 2015

    Sunrise Communications Group AG Investor Presentation, September 2015

  2. Slide 2: Disclaimer

    Disclaimer This document and any materials distributed in connection herewith (including any oral statements) (together, the “Presentation”) do not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer to purchase or subscribe

  3. Slide 3: Sunrise – leading fully integrated challenger in Switzerland

    Sunrise – leading fully integrated challenger in Switzerland • Present in affluent and quality focused Swiss market • Diversified company set-up • Fully integrated player benefiting from cross-selling Fully integrated Swiss • Serving residential, business, and wholesale customers telecommunication p

  4. Slide 4: Cash flow growth – delivering cash flows and dividends

    Sunrise - delivering cash flows and dividends • Leveraging the different growth levers well on track Multiple growth • Strong customer intake in mobile postpaid in Q2’15 levers • Q2’15 internet growth accelerated with TV continuing strongly • Track record of adj. EBITDA margin improvement • 2011-14

  5. Slide 5: Multiple investments in fundamentals to drive subscriber momentum

    Multiple investments in fundamentals to drive subscriber momentum ● Freedom mobile tariff since Q2’14: handset and service contracts separated, no fixed contract duration Innovative ● Sunrise Home landline portfolio launched in Q3’14; internet speeds offering increased to up to 1 Gbit/sec in Q3’15 ●

  6. Slide 6: BILANZ Telecom Ranking 2015

    Sunrise BILANZ Telecom Ranking 2015 Salt Source: Bilanz 18/2015; 4.-17. September 2015 © Sunrise Sep’2015 6

  7. Slide 7: BILANZ Telecom Ranking 2015 (continued)

    Sunrise BILANZ Telecom Ranking 2015 (continued) Sunrise with best results of «big providers» in Bilanz telecom ranking 2015 for the residential market Mobile experience Full service (quad-play) experience Quality 5 Mobile 23 Support Innovation 3 Fixed Voice 17 Internet Flexibility Price TV Sunrise S

  8. Slide 8: Solid subscriber momentum in Q2'15

    Solid subscriber momentum in Q2’15 Postpaid mobile quarterly net adds (‘000) Prepaid mobile quarterly net adds (‘000) 25 21 -3 Free SIM Exit -6 -13 11 17 15 16 3 13 14 -28 -31 1 0 6 1 2 -48 -55 Secondary 16 19 15 11 12 14 12 Primary Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q4’13 Q1’14 Q2’14 Q3’14 Q

  9. Slide 9: Lower Q2'15 revenue largely offset by cost efficiencies

    Lower Q2’15 revenue largely offset by cost efficiencies Revenue (CHFm) Adjusted OPEX 1 (CHFm) - 36 (-7%) -13 Adjusted EBITDA 1 (CHFm) (-8%) 524 488 170 -3 157 (-2%) 76 158 155 70 Commercial 34.2% Non-commercial 32.6% 94 88 Q2’14 Q2’15 Q2’14 Q2’15 Q1’15 Q2’15 • FX -> less low margin hardware & hubbin

  10. Slide 10: Becoming simpler & more digital

    Becoming simpler & more digital CUSTOMER BEHAVIOR IS … AND SUNRISE NEEDS TO INCREASINGLY BECOMING BECOME SIMPLER AND MORE ONLINE CENTRIC… DIGITAL “Average minutes spent on phones daily” 90 • Supporting better customer experience Simplification • Simplification is a “Average number of times people of

  11. Slide 11: Equity free cash flow acceleration

    Equity free cash flow acceleration Illustrative upside potential to eFCF1 (CHFm) Strong YoY increase in eFCF in Q2’15 (CHFm) ~305 120 ~170 57 63 ~135 15 (7) 67 Capex Reduced Upside potential normalization interest costs to eFCF (12) Q2’14 Δ Interests Δ CAPEX Δ NWC Q2’15 eFCF Factoring Q2’15 (excl. b

  12. Slide 12: Cash flow growth – on track to deliver cash flow and dividend returns

    Sunrise on track to deliver cash flow and dividend returns • Q2’15 with strong subscriber momentum Multiple growth • Value conversion more challenging levers • FX, structural telecoms pressures (prepaid, retail voice), Freedom tariff introduction, value mix • Revenue headwinds largely offset by impr

  13. Slide 13: Q&A

    Q&A © Sunrise Sep’2015 13

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