Sunrise Communications Ag Class A · SIX:SUNN

Sunrise Communications Ag Class A — H1 2012 Earnings Presentation

24 slides from Sunrise Communications Ag Class A's earnings presentation, Aug 23, 2012

  1. Slide 1: Financial Results January – June 2012

    August 23, 2012 Sunrise Communications Holdings S.A. Financial Results January – June 2012

  2. Slide 2: Key messages

    Key messages  Revenue growth from 955.8 to 1’023.1 million or +7.0% YoY driven by a continued growth of our valuable mobile postpaid customer base and acquisition of Business Sunrise Enterprise Solutions GmbH (BSES)  On the basis of attractive rate plans, mobile postpaid subscriber base grew by +9

  3. Slide 3: Mobile subscribers and ARPU development

    Mobile subscribers and ARPU development Mobile subscribers (‘000) Blended ARPU (CHF) 44.7 44.9 2'116 2'123 2'117 2'040 2'071 4.3 2'020 4.3 1'105 1'132 1'146 1'048 1'070 1'015 40.4 40.6 1'005 992 1'001 1'011 991 971 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q2-11 Q2-12 Prepaid Postpaid Originating Terminat

  4. Slide 4: Landline internet subscribers and ARPU development

    Landline internet subscribers and ARPU development xDSL subscribers (‘000)* Bundled (DSL/Voice) ARPU and AMPU (CHF) 362 366 366 368 369 358 80.4 79.7 49.8 52.2 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2-11 Q2-12 * Includes single, double and triple-play subscribers ARPU AMPU Stable internet subscriber b

  5. Slide 5: Revenue, gross profit and EBITDA

    Revenue, gross profit and EBITDA Revenue EBITDA / EBITDA margin CHF million CHF million 529 178 509 514 499 33 160 488 152 32 36 146 142 141 467 31 30 33 9% 36% 5% 31% 1% 30% 30% -2% 30% -6% -6% 496 27% 468 478 478 459 434 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Reven

  6. Slide 6: Overview of results

    Overview of results Financial Results H1 - 12 H1 - 11 Q2 - 12 Q2 - 11 CHF Million Mobile 639 609 322 317 Landline Services 295 260 147 127 of which hubbing 67 63 36 30 Landline Internet 89 87 44 44 Total revenues 1'023 956 514 488 % yoy growth 7.0% 5.2% Revenues excl. Acquisition of BSES 981 956 494

  7. Slide 7: Capital expenditure

    Capital expenditure CAPEX Comments CHF million Mobile Network: 10 3 70  Rollout of UMTS/HSPA 10  Network infrastructure 47 Landline Network:  IPTV rollout  Corporate Ethernet product development 6 months Mobile Landline Other 6 months 2011 network investments 2012  Investments in fiber and site

  8. Slide 8: New financing structure

    New financing structure Net Debt Dec 31, 2011 June 30, 2012 June 30, 2012 CHF million Actual Actual Pro forma 1) Term Loan A 463 426 0 Term Loan B 309 304 0 Term Loan B (new) 326 319 0 Senior Secured Notes 753 747 747 Fixed Rate Senior Secured Notes issued July 2012 0 0 520 Floating Rate Senior Secu

  9. Slide 9: Update on markets and operations

    Update on markets and operations © Sunrise 23.08.2012 9

  10. Slide 10: Comprehensive fixed proposition with addition of TV offering

    Comprehensive fixed proposition with addition of TV offering IPTV successfully launched in January 2012 • Sunrise is the only full service alternative to Swisscom in the market offering quad play (Mobile, Broadband, Telephony and IPTV) from one provider • Leading IPTV product • Full range of content

  11. Slide 11: Large mobile spectrum allocation secured will enable superior quality network

    Large mobile spectrum allocation secured will enable superior quality network • Very large spectrum allocation in 800 and 900 MHz bands (50MHz), vital frequencies for UMTS900 and LTE rollout – similar allocation to Swisscom and superior to Orange • Sunrise in position to meet increasing bandwidth re

  12. Slide 12: Clear and immediate benefits of large sub-1 GHz allocation

    Clear and immediate benefits of large sub-1 GHz allocation Greater flexibility • Existing GSM 900 MHz grid easily upgraded – uses existing sites, antennas and permits, avoids • Sunrise position improved additional capex • With a nationwide UMTS900 network, • New UMTS Equipment is MSR (Multi Standard

  13. Slide 13: New partnership with Huawei and TQ Net initiative will further enhance infrastructure

    New partnership with Huawei and TQ Net initiative will further enhance infrastructure Mobile network partnership with Huawei TQ Net program • In a landmark deal, Sunrise has partnered with • Sunrise has Huawei, to install, operate and maintain its network launched its TQ Net (Top • Huawei supplies 4

  14. Slide 14: Majority of contract sales are based on smartphones

    Majority of contract sales are based on smartphones Best devices – all-in tariffs – no speed difference - best customer experience Smartphone share of postpaid handset sales (%) 68 72 91 90 1.- CHF Sunrise flat 4 24 months Jan’11 Jun’11 Dec’11 Jun’12 Share of smartphones in Sunrise’s postpaid base i

  15. Slide 15: «Best value» proposition for various user profiles

    «Best value» proposition for various user profiles Best value rate plans matching diverse needs of our customers Individual Youth Frequent User International User All-in packages Community flat All-in flat International flat from CHF 25.- for only CHF 29.- from CHF 30.- from CHF 110.- + to 15 countr

  16. Slide 16: Sunrise delivers «Best Value» to its customers

    Sunrise delivers «Best Value» to its customers Developing with customer’s needs • New all-in tariffs launched in May 2012 • Total freedom to the customer with calls, messaging and high speed internet included Defending Sunrise’s best value proposition Mobile postpaid gross activations • Price reduct

  17. Slide 17: sunrise24.ch – the new online offer

    sunrise24.ch – the new online offer Soon to be launched Always cheaper than any other Swiss-Flatrate SIM only offer – take your phone with you Very high flexibility due to short contract duration Online bill, online service Being mobile in the Top Quality Network of Sunrise Take your number wi

  18. Slide 18: Questions & answers

    Questions & answers © Sunrise 23.08.2012 18

  19. Slide 19: Back up - Operational trends

    Back up - Operational trends © Sunrise 23.08.2012 19

  20. Slide 20: Mobile – operational trends

    Mobile – operational trends Subscriber (‘000) ARPU (CHF) Comments +3.8% +0.3%  Mobile subscriber base up 3.8% YoY driven by an increase of postpaid 44.7 44.9 customers 2'117 2'040 4.3 4.3  Continued strong demand for smart phones 1'048 1'146 +9.3%  Q2 postpaid growth slower than previous quarters

  21. Slide 21: Landline internet – operational trends

    Landline internet – operational trends Subscriber (‘000) ARPU/AMPU (CHF)* Comments +1.9%  Growth in xDSL connections of +1.9% (0.8%) 369 YoY 362  Q1 on Q2 2012 development is stable 80.4 79.7  ARPU decreased by -0.8%  Majority of our xDSL subscriber base are double play subscribers (xDSL and fix

  22. Slide 22: Landline voice – operational trends

    Landline voice – operational trends Subscriber (‘000) ARPU (CHF) Comments  Single play landline voice customers continue to decline (31.8%)  Subscribers churn to double play (1.2%) products, off the Sunrise network or are substituting their service with mobile services  ARPU decrease of -1.2% due

  23. Slide 23: Thank you

    Thank you © Sunrise 23.08.2012 23

  24. Slide 24: Disclaimer

    Disclaimer This presentation and any materials distributed in connection herewith (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 for any securities, and nei

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