Sunrise Communications Ag Class A · SIX:SUNN

Sunrise Communications Ag Class A — Q2 2014 Earnings Presentation

23 slides from Sunrise Communications Ag Class A's earnings presentation, Aug 21, 2014

  1. Slide 1: Financial results Second quarter 2014

    Sunrise Communications Holdings S.A. Financial results Second quarter 2014 1

  2. Slide 2: Q2 Highlights

    Q2 Highlights • Successful launch of new offers accelerates growth momentum • Freedom – new mobile portfolio: 150k new Freedom subscribers per end of Jun’14 • Sunrise Home - new wireline portfolio: >25% increase in weekly orders vs. 2014 average • Growing subscriber base in Mobile and TV • Mobile Po

  3. Slide 3: Agenda

    Agenda 1 Delivering Value 2 Growth Momentum 3 Financial performance 4 Conclusions and Outlook © Sunrise 21.08.2014 3

  4. Slide 4: Delivering value - Our approach

    Delivering value - Our approach 1 Invest Invest into mobile and fixed network and customer experience: • LTE rolled-out and backhaul capacity increased, Mobile core exchanged 3 Growth Momentum 4 Value Creation • Capex LTM CHF 297m • Customer care capacity increased by Growing customer base and Reven

  5. Slide 5: Sunrise Freedom – Contract freedom for everyone

    Sunrise Freedom – Contract freedom for everyone Unique mobile proposition in Switzerland fulfilling the need of our customers for transparency and flexibility The beginning of a new era in 3 simple steps  Fair: • No obligations, no commitment • New mobile phone at any time 1  Transparent: • Subscr

  6. Slide 6: Sunrise Home – Only pay for what you need

    Sunrise Home – Only pay for what you need New fixed portfolio with competitive positioning and attractive bundling opportunities New, flexible offer for internet, TV and landline  Fair & Transparent: • Customise package so you only pay for what you need • Take advantage of Sunrise Advantage converg

  7. Slide 7: Unique convergence Advantage

    Unique convergence Advantage The best offer for a household in Switzerland - Customer benefits from a discount if he combines Sunrise Home with a mobile subscription New Fixed / Mobile convergence solution  Fair: The more services customers pick, the more they benefit  Transparent: Advantages clea

  8. Slide 8: Agenda

    Agenda 1 Delivering Value 2 Growth Momentum 3 Financial performance 4 Conclusions and Outlook © Sunrise 21.08.2014 8

  9. Slide 9: Achieving service excellence

    Achieving service excellence Solving rate and accessibility rate improving Shops and call centre NPS improving Solving Rate Accessibility Rate Shops Call Centre 100% 140% 92% 90% 120% 80% 77% 70% 100% 60% Indexed to 100% in Q2’13 50% 80% Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 •

  10. Slide 10: Mobile subscribers and ARPU momentum

    Mobile subscribers and ARPU momentum Mobile subscribers (‘000) Blended ARPU (CHF) 2,494 2,491 2,477 2,487 +0.8 (+2%) 2,137 2,142 +0.8 41.0 41.9 (+2%) 39.6 1,261 1,233 1,202 1,199 36.5 35.7 34.9 941 925 36.8 37.5 36.2 33.0 31.4 32.1 1,053 1,067 1,078 1,090 1,045 1,049 151 168 180 191 197 198 4.3 4.4

  11. Slide 11: Postpaid primary versus secondary

    Postpaid primary versus secondary Why introducing a new postpaid subscriber split From single to multi-device • Increasing use of multiple devices, e.g. tablets, requiring additional SIM cards, driven by convergence – accessing content from everywhere • Sunrise is serving this increasing customer ne

  12. Slide 12: Landline internet subs. and ARPU momentum

    Landline internet subs. and ARPU momentum Subscribers (‘000) Internet and Sunrise TV ARPUs (CHF) +14% +7% 358 352 46.8 346 45.7 340 44.1 330 42.4 41.1 40.1 38.6 39.3 37.4 38.0 300 287 272 257 241 74 83 89 58 66 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Internet only Blended Interne

  13. Slide 13: Agenda

    Agenda 1 Delivering Value 2 Growth Momentum 3 Financial performance 4 Conclusions and Outlook © Sunrise 21.08.2014 13

  14. Slide 14: Revenue and EBITDA

    Revenue and EBITDA Revenue (CHF million) EBITDA (CHF million) +28 (+6%) +9 (+6%) 520 526 170 517 159 498 470 151 151 132 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Q2’13 Q3’13 Q4’13 Q1’14 Q2’14 Growth momentum and reduced customer migration Positive top line trend reflected in proportionately effects triggered r

  15. Slide 15: Capital expenditure breakdown

    Capital expenditure breakdown Capex as a % of revenues 10.7% 12.4% CHF million 114 +16.1% 98 73 27 11 3 H1’13 H1’14 Mobile network Landline network IT investments Other investments investments • Substantial step-up in infrastructure investments with focus on best blend of technologies and spectrum t

  16. Slide 16: Overview of results

    Overview of results Financial Results H1 - 2013 H1 - 2014 Q2'2013 Q2'2014 CHF million Mobile 613 637 309 346 Landline Services 274 256 139 128 of which hubbing 69 76 36 39 Landline Internet 97 103 49 51 Total revenues 984 996 498 526 % yoy growth 1.1% 5.6% Revenues (excl. hubbing) 916 920 462 486 %

  17. Slide 17: Net debt and leverage ratio

    Net debt and leverage ratio Net debt Dec 31, 2013 Jun 30, 2014 CHF million Senior Secured Notes 755 753 Senior Secured Notes issued July 2012 523 522 Floating Rate Notes issued July 2012 205 203 Senior Unsecured Notes 689 683 Utilized RCF 95 60 Total cash-pay borrowings 1) 2'267 2'221 Fair value of

  18. Slide 18: Agenda

    Agenda 1 Delivering Value 2 Growth Momentum 3 Financial performance 4 Conclusions and Outlook © Sunrise 21.08.2014 18

  19. Slide 19: Conclusion - Q2'14 marks an inflection point

    Conclusion - Q2’14 marks an inflection point 1 Invest Invest into mobile and fixed network and customer experience: • Connect network test 2013 - #2 with strongest improvements 3 Growth Momentum 4 Value Creation • Continued network investments utilizing UMTS/LTE in low frequency Growing customer bas

  20. Slide 20: BACKUP

    BACKUP © Sunrise 21.08.2014 20

  21. Slide 21: Pro-forma mobile prepaid subscriber statistics 12 month activity rule

    Pro-forma mobile prepaid subscriber statistics 12 month activity rule • For transparency reasons, pro-forma mobile prepaid subscribers based on a 12 month activity rule instead of Sunrise’s 3 month activity rule are provided • Sunrise still believes, that the 3 month activity rule is a fairer repres

  22. Slide 22: Thank you

    Thank you © Sunrise 20.08.2014 22

  23. Slide 23: 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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