Sunrise Communications Ag Class A · SIX:SUNN
Sunrise Communications Ag Class A — Q1 2011 Earnings Presentation
22 slides from Sunrise Communications Ag Class A's earnings presentation, May 26, 2011
Slide 1: Financial Results January – March 2011
May 26, 2011 Sunrise Communications Holdings S.A. Financial Results January – March 2011
Slide 2: Key Messages
Key Messages Sunrise continues its good financial performance driven by postpaid and LLU customer growth: Mobile revenue increased to CHF 299.8 million or +6.6% YoY driven by increased postpaid customer base. Underlying operational business (i.e. excluding MTR) performed even better. Continued E
Slide 3: Overview of Results
Overview of Results Income statement Quarter to date million CHF Q1'11 Q1'10 Mobile 300 281 Landline Services 134 169 of which hubbing 33 56 Landline Internet 44 45 Revenues 477 495 % growth -3.7% - Revenues (excl. Hubbing) 444 439 % growth 1.0% - EBITDA 141 131 % margin 29.6% 26.5% % margin (excl.
Slide 4: Revenue and Gross Profit Development
Revenue and Gross Profit Development Comments Revenue Gross Profit in million CHF - 200 400 600 - 200 400 600 Revenue decline is mainly driven by low Q1'2010 +495 Q1'2010 +310 margin wholesale business (hubbing) without GP impact. Postpaid +26 +31 Prepaid -1 Prepaid +3 Mobile: Higher customer base l
Slide 5: Operational Trends
Operational Trends © Sunrise May 26, 2011 5
Slide 6: Operational Trends: Mobile
Operational Trends: Mobile Comments ‘000 Subscriber ARPU (CHF) Mobile subscribers up 7.5% YoY driven 7.5% especially by strong intake of postpaid. 2‘020 1‘878 -4.0% Still strong demand for smart phones, white iPhone successfully started. 45.2 43.4 Underlying originating ARPU increased by 1'015
Slide 7: Mobile: Share of Smart Phones
Mobile: Share of Smart Phones Comments New customer acquisition Share of smart phones still increasing for 100% new customer acquisitions. On new customer acquisitions, the share of other smart phones compared to iPhone was maintained. iPhone sale to new customers is around 50% of total iPhone
Slide 8: Operational Trends: Landline Retail Bundles (ADSL and retail Voice)
Operational Trends: Landline Retail Bundles (ADSL and retail Voice) Comments ‘000 Subscriber ARPU/AMPU (CHF) Double play connections (landline retail voice 4.1% -2.2% and ADSL) have grown +4.1% YoY driven by 358 344 Attractive bundle prices including line 81.2 79.4 rental, voice services and xDS
Slide 9: Operational trends: Landline Retail Voice
Operational trends: Landline Retail Voice Comments ‘000 Subscriber ARPU (CHF) Low margin CPS Voice customers – -9.3% mostly acquired as part of the Tele 2 acquisition - continue to churn to double 618 0.1% play products, off the Sunrise network or 560 are substituting their service with mobile. 43
Slide 10: Capital Expenditure Development
Capital Expenditure Development Comments Capex in millio n CHF Overall guidance of CHF 1 billion over 5 years has not changed. Q1'2010 +40 In Q1’2010, Sunrise Communications AG exchanged its Zurich office location with Credit Suisse. The Capex is Change in related to the leasehold improvements for t
Slide 11: Net Cash Debt Development
Net Cash Debt Development Pro-forma post Net Debt Transaction close 31. Dec 2010 31. Mar 2011 million CHF million CHF million CHF Term Loan A 500 500 500 Term Loan B 321 312 316 Senior Secured Notes 808 765 783 Total senior debt 1'629 1'577 1'599 Senior Notes 769 704 731 Total cash borrowings 2'398
Slide 12: Update on Markets and Operations
Update on Markets and Operations © Sunrise May 26, 2011 12
Slide 13: CEO Agenda – Objective 2014
CEO Agenda – Objective 2014 Sunrise aims for achieving a clear positioning and sound performance around Customer Excellence, Excellence in Operations and Entrepreneurial Spirit Sunrise – customer focused, agile & young, responsive, service and quality oriented, innovative Excellence in Customer Exce
Slide 14: Retail chain expansion
Retail chain expansion Opening of 20 new shops this year in urban and regional centers to extend the footprint of Sunrise. Creating more than 40 new jobs. Shops are pre-eminent customer touch points and support customer experience and operational excellence. © Sunrise May 26, 2011 14
Slide 15: Customer Experience
Customer Experience Overall transformation program designed Short-term task force running Measurement of customer satisfaction done and translated into cockpit Hiring of new people ongoing Tighter quality management of parties being set up Partly reversal of outsourcing / off shoring © S
Slide 16: Business Sunrise
Business Sunrise Business Sunrise – the new brand of Sunrise The new Business Sunrise sub-brand is successfully launched in the 1st quarter 2011. Very positive response of the market and the values communicated. Key messages of new brand: high service quality, personalized customer service, high fle
Slide 17: Technology initiatives
Technology initiatives Customer centric IT Improve customer experience Reduce time to market Network topic ULL 2G 3G Upgrades /HSDPA Upgrade network to HSDPA+ (21/5.8 MBit/sec) Rollout IPTV FTTH deployment © Sunrise May 26, 2011 17
Slide 18: IPTV Service
IPTV Service Sunrise is developing an IPTV service in order to be able to provide telecommunication and TV solutions out of one hand. Trial period expected to be from June to November 2011. Launch is anticipated by end of 2011 or beginning 2012. Implementation of service is cost lean. IPTV i
Slide 19: Appendix
Appendix © Sunrise May 26, 2011 19
Slide 20: Hubbing – Business logics
Hubbing – Business logics Business scheme Business logic International International Trading high volumes of international voice Customer Supplier minutes with our voice platform in the worldwide market buying from Opportunistic business approach without long- selling to term commitments Focus
Slide 21: 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 22: Thank you
Thank you © Sunrise May 26, 2011 22
Sunrise Communications Holdings — Q1 2011 Earnings Presentation on 6ix