Swisscom Ag · SIX:SCMN
Swisscom — Swisscom Ag Ittigen R/Shs — Q2 2025 Earnings Presentation
41 slides from Swisscom's earnings presentation, Aug 7, 2025
Slide 1: Q2 2025 results
Q2 2025 results Investor and analyst presentation 07 August 2025
Slide 2: Agenda
Agenda Introduction Louis Schmid, Head of Investor Relations Swisscom 1. Achievements Christoph Aeschlimann, CEO Swisscom 2. Business update – Switzerland and Italy Christoph Aeschlimann, CEO Swisscom 3. Financial results Eugen Stermetz, CFO Swisscom Questions & answers Appendix 2
Slide 3: Achievements
1 Achievements Christoph Aeschlimann CEO Swisscom 3
Slide 4: Q2 highlights
Q2 highlights Another quarter of success highlighted by compelling news Strongest Telco brand Hotline test winner Successful launch of beem in Switzerland, Another win, Unique convergent connectivity service with higher score1 with a new record score2 for B2B customers Progressing as planned Positiv
Slide 5: Q2 operational results
Q2 operational results RGU base broadly stable in Switzerland and Italy Switzerland Italy Postpaid Broadband TV1 Fixed voice W+ access lines Mobile Broadband W+ access lines B2C+B2B B2C+B2B B2C+B2B B2C+B2B Wholesale B2C+B2B B2C+B2B Wholesale +63 +51 +45 +50 +11 +7 Q1 25 Q2 25 Net adds in k Q1 25 Q2
Slide 6: Q2 financial results
Q2 financial results Q2 financials as expected, reaffirming FY guidance Group key figures EBITDAaL development in CHF mn (YOY pro forma) in CHF mn (YOY) Q2 25 H1 25 Stability Transitional in year Switzerland in Italy Revenue 3'687 7'446 (-3.3%) (-2.3%) Q1 Q2 -3 -3 -15 -4 -5 -50 -33 -31 -54 2'618 -90
Slide 7: Business update – Switzerland and Italy
2 Business update – Switzerland and Italy Christoph Aeschlimann CEO Swisscom 7
Slide 8: Strategic priorities 2025
Strategic priorities 2025 Roadmap 2025 to drive long-term value creation Cement Build #1 position #1 customer choice in Switzerland in Italy Manage Integrate Vodafone Italia Telco top line and capture synergy potential Execute Telco cost Stabilise B2C Telco top line transformation and grow beyond co
Slide 9: B2C: drive differentiation further to effectively defend RGU base
Manage Telco top line B2C: drive differentiation further to effectively defend RGU base Telco RGU & net adds Own brand updates in k (YOY) Expand inflow momentum on 1st brand +24 +20 Net adds • Reinforced brand awareness: 'Discover your Q1 Q2 -11 -3 possibilities' campaign with focus on best 2nd/3rd
Slide 10: B2C: keep managing customer value and NPS advantage
Manage Telco top line B2C: keep managing customer value and NPS advantage Telco ARPU Leading in customer service Q2, in CHF (YOY) Continuously deliver best customer experience 89 • Leader in customer service: Swisscom with (+1) another Hotline connect test win • Swisscom Callfilter: over 2.35mn cust
Slide 11: B2B: innovate Telco and lead in cloud, security and AI adoption
Manage Telco top line & achieve profitable IT growth B2B: innovate Telco and lead in cloud, security and AI adoption Telco IT IT service revenue4 ARPU Cement #1 cyber security in CHF mn Focus on customer lifetime Q2, in CHF (YOY) +2 value provider position in Switzerland 304 306 45 • New OT-/CPS3-se
Slide 12: Network and Wholesale: enhance and monetise network leadership
Manage Telco top line Network and Wholesale: enhance and monetise network leadership Network Wholesale Telco Pop coverage Market share access ports3 Drive Nextgen mobile (YOY in pp) Further cement in % of all Swiss access ports network leadership in Wholesale 17.8 • 5G+ coverage further up 5G+ 87% (
Slide 13: On track to achieve CHF 50+mn Telco cost savings
Execute Telco cost transformation On track to achieve CHF 50+mn Telco cost savings Telco cost Telco cost savings 2025 in CHF mn, indicative Drive digitalisation and automatization in customer care Digital push - B2C 50+ indexed, YOY • Launch of co-pilot for call centre providing knowledge support an
Slide 14: Integration progressing as planned, on track for synergy ramp-up in H2
Integrate Vodafone Italia and capture synergy potential Integration progressing as planned, on track for synergy ramp-up in H2 Fastweb+Vodafone Mobile customer transition proceeding as planned • Migration of SIMs to own network running as scheduled • On track to ramp-up mobile cost synergies from H2
Slide 15: B2C: from volume to value - a strategic shift underway
Stabilise B2C Telco top line and grow beyond core B2C: from volume to value - a strategic shift underway From volume … … to value 1 Acquisition 1 Illustrative examples Acquisition • Push on (low quality) volume-boosting Illustrative examples Acquisition volumes Acquisition volumes sales channels, e.
Slide 16: B2C: value approach showing first positive trend
Stabilise B2C Telco top line and grow beyond core B2C: value approach showing first positive trend … Telco mobile RGU & net adds Value focus starts paying off New aligned front-book prices in k (YOY pro forma) Q1 Q2 • Acquisition volumes reducing, but sales Net adds quality increasing (higher value
Slide 17: B2C: journey towards top line stabilisation goes on
Stabilise B2C Telco top line and grow beyond core B2C: … whilst journey towards top line stabilisation goes on Telco broadband RGU & net adds Operational trends improving New aligned front-book prices in k (YOY pro forma) • Improved inflow ARPU Net Q1 Q2 +13 +21 adds Q1 Q2 • Churn improved thanks to
Slide 18: B2B: cementing strong position through innovation leadership
Scale up B2B IT B2B: cementing strong position through innovation leadership Telco IT RGU RGU base growing base in k (YOY pro forma) Fastweb AI offering • In mobile pushed by TM9 Launch of 'Fastweb AI agreement, while broadband Suite' for SMEs, Enterprises with stabilisation signs 4’389 1’129 and PA
Slide 19: Network and Wholesale: topping 1 million UBB lines
Scale up Wholesale Network and Wholesale: topping 1 million UBB lines Network Wholesale Telco Pop coverage UBB lines in % in k (YOY) Ongoing 5G expansion Ambition 2025: ~89%, UBB business growing 2030:~95% • Top line up +9.5% YOY, mostly +31% across Italy’s most awarded pushed by main customers' 1'0
Slide 20: Financial results
3 Financial results Eugen Stermetz CFO Swisscom 20
Slide 21: Revenue and EBITDAaL development as anticipated
Group revenue and EBITDAaL Revenue and EBITDAaL development as anticipated Revenue in CHF mn Q1 Q2 1 Lower Q2 Telco service revenue and hard- -8 -5 -9 -8 -6 and software sales, only partially offset by -24 -47 -53 -60 Wholesale growth -126 -107 (-1.4%) | Q1: -41, Q2: -66 2 Q2 Telco service revenue d
Slide 22: OpFCF adjusted broadly flat, Switzerland slightly positive
Group CAPEX and OpFCF OpFCF adjusted broadly flat, Switzerland slightly positive CAPEX in CHF mn 1 H1 lower due to different phasing H1 24 Adjustments and compared to prior year pro forma Switzerland Italy1 Others2 currency3 H1 25 2 Normalised run-rate in Q2, Q1 lower due 1 2 3 to one-time effects i
Slide 23: EBITDAaL adjusted broadly stable
Switzerland revenue and EBITDAaL EBITDAaL adjusted broadly stable Revenue in CHF mn Q1 Q2 1 Q2 Telco service revenue decrease +7 +4 0 -24 (CHF -13mn) -6 -12 -25 -2 -53 -43 2 Lower Q2 Telco service revenue (CHF -18mn) -77 and hard- and software sales (CHF -27mn, -18 +11 (-1.9%) 3'974 with low margina
Slide 24: Telco service revenue and cost savings largely as expected
Switzerland EBITDAaL drivers Telco service revenue and cost savings largely as expected Telco EBITDAaL adjusted IT EBITDAaL in CHF mn and YOY changes in CHF mn and YOY changes 2'582 574 -523 margin 1 Q2 delivery above quarterly 719 3'156 -992 52.0% 142 margin 6.0% run-rate 1'863 1'641 752 -707 2 Q2
Slide 25: OpFCF adjusted slightly higher
Switzerland CAPEX and OpFCF OpFCF adjusted slightly higher CAPEX in CHF mn 1 Non-recurring CAPEX impacted by Telco cloud activation in prior year Wireless Wireline Backbone & network access network infrastructure IT Other H1 25 2 Higher CAPEX for server licences purchase and Telco cloud infrastructu
Slide 26: Revenue stable and EBITDAaL development as expected
Italy revenue and EBITDAaL Revenue stable and EBITDAaL development as expected Revenue in EUR mn +22 1 Telco service revenue decline by EUR -42mn Q1 Q2 +15 +1 in Q2 (EUR -25 wireless, EUR -17mn wireline), -21 -7 -8 -5 partially mitigated by energy business and -23 -13 hardware sales (handsets) +23 +
Slide 27: EBITDAaL adjusted impacted by ongoing Telco erosion
Italy EBITDAaL drivers EBITDAaL adjusted impacted by ongoing Telco erosion, mainly in B2C W- EBITDAaL adjusted in EUR mn and YOY changes 653 3'593 2'539 401 -1'693 margin 1'017 23.0% 1 Q2 with continuing decline -1'072 1'522 2 Growing Wholesale and Energy business in Q2 828 3 Q2 increase driven by c
Slide 28: OpFCF adjusted lower and in line with FY guidance
Italy CAPEX and OpFCF OpFCF adjusted lower and in line with FY guidance CAPEX in EUR mn 1 Fastweb's FWA strategy change (rollout Wireless Wireline Backbone & stop of dedicated network) in 2024 and network access network infrastructure IT Other Adjustments1 H1 25 different phasing of major mobile net
Slide 29: On track to achieve planned synergies in 2025
Italy synergies and integration cost On track to achieve planned synergies in 2025 Ramp-up plan 2025-2029 Q2 update Synergies in EUR mn Synergy realisation Target FY 25 ~60 100% Run-rate: EUR ~600mn Realised in H1 25 14 ~90% Direct cost: EUR ~240mn ~70% Indirect cost: EUR ~300mn • Full-year target c
Slide 30: Group free cash flow
Group free cash flow OpFCF stable, FCF higher due to improved NWC YOY in CHF mn +9 989 989 H1 25 -233 -69 1 3 -184 -16 496 OpFCF Δ -17 +29 +12 +153 +15 -60 +5 +18 +143 1'006 -29 977 H1 24 -386 -6 -9 2 -189 -34 353 OpFCF Vodafone OpFCF Change in Change in defined Net interest Income Other FCF Italia
Slide 31: Group net income
Group net income Net income impacted by PPA amortisation and additional interest expense in CHF mn 3'290 2'474 2'474 816 tax rate1 H1 25 -1'562 18.4% -782 946 -180 -141 625 EBITDAaL Δ -144 +484 +340 +467 +807 -501 -449 -143 -115 +47 -211 1 1 1 2 3 2’618 2'483 tax rate1 -484 2'134 349 H1 24 18.4% -1'
Slide 32: Successful refinancings in Q2
Financing and credit ratings Successful refinancings in Q2 Partial refinancing of acquisition bank loans Ratings A- (outlook stable) confirmed (Jul 2025) A2 (outlook stable) Two EURO bonds1 issued in Q2 • Public, in May 2025: EUR 500mn (7y, coupon 3.125%) Rate mix Currency mix • Semi-public, in June
Slide 33: Guidance for full-year 2025 confirmed
Guidance 2025 Guidance for full-year 2025 confirmed Financials FY 2024 Guidance FY 2025 Group Group Switzerland2 Italy2 CHF mn CHF mn CHF mn EUR mn Group4 Switzerland Italy CHF bn CHF bn EUR bn restated pro forma1 pro forma Revenue 11'017 15'358 7'976 7'372 Revenue 15.0-15.2 7.9-8.0 ~7.3 Incl. EUR c
Slide 34: Q&A
Q&A 34
Slide 35: Appendix
Appendix 35
Slide 36: Group - adjusted EBITDAaL
Appendix Group - adjusted EBITDAaL in CHF mn 2024 pro forma 2025 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDAaL 1'367 1'251 1'350 1'076 5'044 1'277 1'197 -90 -54 Regulatory litigations -24 -24 +24 Transaction cost Vodafone Italia 6 7 5 42 60 -6 -7 Restructuring cost 13 13 2 +2 Adjustments Switz
Slide 37: Group - adjusted CAPEX and OpFCF
Appendix Group - adjusted CAPEX and OpFCF in CHF mn 2024 pro forma 2025 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CAPEX -897 -715 -733 -770 -3'115 -779 -706 +118 +9 INWIT consolidation CAPEX 43 7 8 10 68 7 6 -36 -1 Integration cost CAPEX 3 16 +3 +16 Adjustments Italy 43 7 8 10 68 10 22 -33 +15 Adju
Slide 38: Switzerland - adjusted EBITDAaL, CAPEX and OpFCF
Appendix Switzerland - adjusted EBITDAaL, CAPEX and OpFCF 2024 2025 YOY in CHF mn Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDAaL 886 817 847 779 3'329 865 819 -21 +2 Regulatory litigations -24 -24 +24 Transaction cost Vodafone Italia 6 7 5 42 60 -6 -7 Restructuring cost 13 13 2 +2 Adjustments EBITD
Slide 39: Italy - adjusted EBITDAaL, CAPEX and OpFCF
Appendix Italy - adjusted EBITDAaL, CAPEX and OpFCF in EUR mn 2024 pro forma 2025 YOY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 EBITDAaL 480 416 496 294 1'686 422 386 -58 -30 Integration cost OPEX 176 176 6 14 +6 +14 Adjustments EBITDAaL 176 176 6 14 +6 +14 EBITDAaL adjusted 480 416 496 470 1'862 428 4
Slide 40: Cautionary statement regarding forward looking statements
Cautionary statement regarding forward looking statements • "This communication contains statements that constitute "forward-looking statements". In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations
Slide 41: Investor contact
Investor contact Louis Schmid Anastasia Henkel Head Investor Relations Investor Relations Manager louis.schmid@swisscom.com anastasia.henkel@swisscom.com +41 58 221 62 79 +41 58 221 40 80 41
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