Sunrise Communications Ag Class A · SIX:SUNN
Sunrise Communications Ag Class A — 9M 2011 Earnings Presentation
20 slides from Sunrise Communications Ag Class A's earnings presentation, Nov 24, 2011
Slide 1: Financial Results January – September 2011
November 24, 2011 Sunrise Communications Holdings S.A. Financial Results January – September 2011
Slide 2: Key Messages
Key Messages Sunrise continues its good financial performance driven by strong postpaid and LLU customer growth: Mobile postpaid subscriber base grew by +132.2 thousand or +14.1% YoY with a growth of +22.4 thousand in Q3’2011 alone (excluding M2M subscribers) Despite significant MTR cut of CHF -42 m
Slide 3: Overview of Results
Overview of Results Income / Capex /Cash flow Year to date Quarter to date CHF million 2011 2010 Q3'11 Q3'10 Mobile 964 909 338 331 Landline Services 389 486 128 158 of which hubbing 94 152 31 49 Landline Internet 132 132 45 44 Revenues 1'485 1'527 510 533 Revenues (excl. Hubbing) 1'392 1'375 479 48
Slide 4: Revenue and Gross Profit Development
Revenue and Gross Profit Development Comments Revenue Gross Profit CHF million 1'300 1'400 1'500 1'600 1'700 800 900 1'000 1'100 Revenue excluding low margin hubbing 9 months business increased by CHF 16.3 million or 2010 +1'527 Q3'2010 +962 1.2% YoY. Postpaid +91 +106 Prepaid (5) Prepaid +6 Mobile:
Slide 5: Operational Trends
Operational Trends © Sunrise 24.11.2011 5
Slide 6: Operational Trends: Mobile
Operational Trends: Mobile Comments ‘000 Subscriber ARPU (CHF) Mobile subscribers up 6.1% YoY driven +6.1% (0.7%) 2'071 especially by strong intake of postpaid 48.5 47.8 1'952 Still strong demand for smart phones 7.0 4.2 Underlying originating ARPU increased by 6.0% to CHF 43.6 938 1'070 +14.1% MTR
Slide 7: Operational Trends: Landline Retail Bundles
Operational Trends: Landline Retail Bundles Comments ‘000 Subscriber ARPU/AMPU (CHF) Double play connections (landline retail voice and +4.8% ADSL) have grown +4.8% YoY driven by 363 +0.7% Attractive bundle prices including line rental, 347 voice services and xDSL 79.9 80.5 Triple play offer bundlin
Slide 8: Operational Trends: Landline Retail Voice
Operational Trends: Landline Retail Voice Comments ‘000 Subscriber ARPU (CHF) Low margin CPS Voice customers – (9.8%) mostly acquired as part of the Tele 2 586 acquisition - continue to churn to double +2.1% play products, off the Sunrise network or 529 44.1 are substituting their service with mobil
Slide 9: Capital Expenditure Development
Capital Expenditure Development Comments CAPEX CHF millio n 9 months 2010 +109 Change in office building (9) 2010 one-off cost related to relocation of Sunrise Change in headquarter (9) office building LLU (11) LLU (11) LLU roll-out completed, household coverage more than 85%. 2011 has only minor LL
Slide 10: Net Cash Debt Development
Net Cash Debt Development Net Debt Dec 31, 2010 Sep 30, 2011 million CHF Term Loan A 500 481 Term Loan B (1) 312 309 Term Loan B (new) (2) 0 326 Senior Secured Notes (3) 765 751 Total senior debt 1'577 1'867 Senior Notes (4) 704 682 Total cash borrowings 2'281 2'549 Fair value of cross currency swap
Slide 11: Update on Markets, Regulatory and Operations
Update on Markets, Regulatory and Operations © Sunrise 24.11.2011 11
Slide 12: Mobile market development
Mobile market development Postpaid net adds (‘000) Mobile revenue (million CHF) 54 (19%) +0.1% 339 5'965 5'969 285 52 (64%) +7.1%* 132 (39.0%) 1'203 1'288 80 (28.2%) (20.2%) (21.6%) LTM 30.09.2010 LTM 30.09.2011 LTM 30.09.2010 LTM 30.09.2011 Sunrise Postpaid Market Sunrise Postpaid Market Market gro
Slide 13: Regulatory update
Regulatory update Topics Sunrise position / status Mobile license auction July 19th, 2011 ComCom published revised conditions for mobile auction to be held in February/March 2012 Sunrise is well positioned to undertake all necessary actions for future infrastructure investments FTTH LOI with several
Slide 14: IPTV service
IPTV service Sunrise will be offering quadruple play based on customer demands Friendly user trials started in October 2011 Launch is anticipated beginning 2012 IPTV is seen as a product to gain new customers searching for attractive quadruple play offerings and retaining existing customers © Sunris
Slide 15: Change of Networking Outsourcing Partner
Change of Networking Outsourcing Partner The existing contract with ALU did not give sufficient flexibility to fulfill Sunrise requirements The current strategy focuses on improved customer satisfaction and high quality of services requiring greater flexibility, speed and optimal operation and maint
Slide 16: UMTS 900 roll-out on mobile broadband network
UMTS 900 roll-out on mobile broadband network EDGE (enhanced) UMTS Sunrise will roll-out the UMTS 900 mobile Strategic project with a duration of 18-24 broadband network nationwide offering months customers improved mobile broadband Limited flexibility with our current network experience outsourcing
Slide 17: Acquisition of NextiraOne Switzerland completing the business portfolio offering
Acquisition of NextiraOne Switzerland completing the business portfolio offering Core CPE network Network type Wide Area Network (WAN) Local Area Network (LAN), Local exchange Market players Carriers only System network integrators Swiss competitors Swisscom, Sunrise, Cablecom, Colt Swisscom, Nextir
Slide 18: Strategic purchasing partnership with Telefónica
Strategic purchasing partnership with Telefónica Sunrise entered into a strategic purchasing partnership with Telefónica: Benefit from Telefónica‘s global purchasing contracts for soft- and hardware Benefit from Telefónica‘s international roaming agreements Participate in global bids of Telefónica E
Slide 19: Disclaimer
Disclaimer This Presentation and any materials distributed in connection herewith (the "Presentation") include forward-looking statements. Forward-looking statements are statements regarding or based upon our management’s current intentions, beliefs or expectations relating to, among other things, S
Slide 20: Thank you
Thank you © Sunrise 24.11.2011 20
Sunrise Communications Holdings — 9M 2011 Earnings Presentation on 6ix