Sunrise Communications Ag Class A · SIX:SUNN

Sunrise Communications Ag Class A — H1 2011 Earnings Presentation

26 slides from Sunrise Communications Ag Class A's earnings presentation, Aug 24, 2011

  1. Slide 1: Financial Results January – June 2011

    August 24, 2011 Sunrise Communications Holdings S.A. Financial Results January – June 2011

  2. Slide 2: Key Messages

    Key Messages Sunrise continues its good financial performance driven by postpaid and LLU customer growth:  Mobile postpaid subscriber base grew by +140.5 thousand or +15.5% YoY with a postpaid subscriber base growth of +32.7 thousand in Q2’2011 alone (excluding M2M subscribers)  Continued EBITDA g

  3. Slide 3: Overview of Results

    Overview of Results Income statement Year to date Quarter to date CHF million 2011 2010 Q2'11 Q2'10 Mobile 626 578 327 297 Landline Services 262 328 128 158 of which hubbing 63 103 30 47 Landline Internet 87 89 44 44 Revenues 976 994 499 499 Revenues (excl. Hubbing) 913 891 469 452 % growth 2.4% 3.8

  4. Slide 4: Revenue and Gross Profit Development

    Revenue and Gross Profit Development Comments Revenue Gross Profit CHF million 800 900 1'000 1'100 500 600 700 800 Revenue excluding low margin hubbing business increased CHF 21.6 million or H1'2010 +994 H1'2010 +629 2.4% YoY. Postpaid +57 +67 Prepaid (2) Prepaid +6 Mobile: Higher postpaid customer

  5. Slide 5: Operational Trends

    Operational Trends © Sunrise 24.08.2011 5

  6. Slide 6: Operational Trends: Mobile

    Operational Trends: Mobile Comments ‘000 Subscriber ARPU (CHF)  Mobile subscribers up 7.0% YoY driven +7.0% especially by strong intake of postpaid 2‘040 1‘906 (0.9%)  Still strong demand for smart phones 46.7 46.3  Underlying originating ARPU increased by 6.0% to CHF 42.0 1'048 +15.5% 7.1 4.3 90

  7. 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 +4.5% ADSL) have grown +4.5% YoY driven by (0.6%) 360  Attractive bundle prices including line rental, 345 voice services and xDSL 81.0 80.6  Triple play offer

  8. Slide 8: 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 596 +1.6% play products, off the Sunrise network or 540 are substituting their service with mobile 4

  9. Slide 9: Capital Expenditure Development

    Capital Expenditure Development Comments CAPEX CHF millio n Change in office building (9)  In H1’2010, Sunrise Communications AG exchanged its H1'2010 +78 Zurich office location with Credit Suisse. The CAPEX is related to the leasehold improvements for the new headquarter Change in office (9) LLU (

  10. Slide 10: Working Capital Development

    Working Capital Development Comments Change Net Working Capital  Trade AR: Seasonal pattern in customer CHF million H1 2011 payment behavior – higher customer Trade AR (12) payments in December. Trade AP (35) Inventory (1)  Trade AP: Higher spending in Q4 (Capex Other (11) and Marketing) leads to

  11. Slide 11: Net Cash Debt Development

    Net Cash Debt Development Net Debt Dec 31, 2010 Jun 30, 2011 million CHF Term Loan A 500 481 Term Loan B (1) 312 309 Senior Secured Notes (2) 765 752 Total senior debt 1'577 1'543 Senior Notes (3) 704 684 Total cash borrowings 2'281 2'227 Fair value of cross currency swaps 95 131 Adjusted cash debt

  12. Slide 12: Update on Markets and Operations

    Update on Markets and Operations © Sunrise 24.08.2011 12

  13. 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 – we make your day Excellence in Customer Excellence Entrepreneurial Spirit Operations © Sunrise 24.08.2011 13

  14. Slide 14: Sunrise Brand Relaunch – June 6th, 2011

    Sunrise Brand Relaunch – June 6th, 2011 © Sunrise 24.08.2011 14

  15. Slide 15: Retail chain expansion

    Retail chain expansion  Opening of 8 new shops in the first half year of 2011  2 new shops in August (Brugg AG on August 18 and Gossau SG on August 25)  Around 10 new shops in urban and regional areas still to come until end of 2011  More than 40 new jobs by end of 2011  Shops are pre-eminent c

  16. Slide 16: New Mobile Postpaid Portfolio

    New Mobile Postpaid Portfolio Extension of the Introduction of a new Retention of the successful flatrate product line: successful youth offer: portfolio: Sunrise sunflat Sunrise flex MTV mobile For all those who want to For all those who want to For all those under 26. make endless phone make flexi

  17. Slide 17: Customer Experience

    Customer Experience  Bi-weekly customer experience board with top management involvement in place  Top issues identified, e.g. contact center strategy, invoice, network outages  End-2-End Process Management structure defined  Short term measures:  Communication of first service promise towards

  18. Slide 18: Business Sunrise

    Business Sunrise  On track after the launch of the new sub-brand in January  New customers in all segments: self- employed, small and medium companies and large customers  Several deals won, cases such as Valora or the Canton of Berne (BEWAN project)  Compared to the first half year of 2010, Bus

  19. Slide 19: IPTV Service

    IPTV Service  Sunrise aims at offering quadruple play out of one hand.  The Sunrise IPTV project is on track.  Technical trials are ongoing.  Friendly user trial will start beginning of October 2011.  Launch is anticipated by end of 2011 or beginning 2012.  IPTV is seen primarily as a product

  20. Slide 20: UMTS 900 MHz Introduction on Mobile Broadband Network

    UMTS 900 MHz Introduction on Mobile Broadband Network UMTS EDGE © Sunrise 24.08.2011 20

  21. Slide 21: Update Regulatory Topics

    Update Regulatory Topics Topics Sunrise position / status LRIC method • High level of ULL and IC prices due to LRIC method • Federal administrative court confirmed application of LRIC method • Pointed out possibility to change LRIC in ordinance Mobile license • 16th of May ComCom published revised c

  22. Slide 22: Sunrise Management Board

    Sunrise Management Board As per end of October 2011 Oliver Steil Andreas Gregori CEO Chief Commercial Officer André Krause Jon Erni CFO, replacing Daniel Pindur Executive Director Business Sunrise Kamran Ziaee Hans Jörg Denzler Chief Technical Officer Executive Director Wholesale © Sunrise 24.08.201

  23. Slide 23: Appendix

    Appendix © Sunrise 24.08.2011 23

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Thank you

    Thank you © Sunrise 24.08.2011 26

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