Slide 1: Swisscom – “delivering the BEST”
Swisscom – “delivering the BEST” 2013 analyst and investor presentation Zürich 6 February 2014
Slide 2: Agenda “delivering the BEST”
Agenda “delivering the BEST” 2 Ch. Topic Speaker Welcome & Introduction Bart Morselt, IR 1 BEST strategy Urs Schaeppi, CEO Introduction strategic framework 2 BEST infrastructure Heinz Herren, CTO At home On the move Investment Transformation and innovation 3 BEST experiences Urs Schaeppi, CEO Commer
Slide 3: Agenda “delivering the BEST”
Agenda “delivering the BEST” 3 Ch. Topic Speaker Welcome & Introduction Bart Morselt, IR 1 BEST strategy Urs Schaeppi, CEO Introduction strategic framework 2 BEST infrastructure Heinz Herren, CTO At home On the move Investment Transformation and innovation 3 BEST experiences Urs Schaeppi, CEO Commer
Slide 4: Swisscom 2020: Delivering the best
Swisscom 2020: Delivering the best Trustworthy companion in the digital world 4 Everything always on Best Infrastructure Fast and secure access, always available everywhere Internet- based Best Experiences trustworthy Innovative and exciting services simple accompanied by competent inspiring Global
Slide 5: Everything always on
Everything always on In the future, Swisscom customers will be able to access all their private and business applications and data in realtime on their digital devices 5 Trends Yesterday > Unconnected 80% of the Swiss of all active > Fragmented handsets In population uses the Switzerland internet se
Slide 6: Internet based
Internet based In the future, all services will be based on the internet protocol which enhances the customer experience and allows faster introduction of new products and services 6 Trends Yesterday Multiple local 1 million IP TV customers in CH. Platforms 54% Only growing digital TV segment. of Sw
Slide 7: Global Competition
Global Competition Over the last years, new, global competitors have entered the Telco market, driving the availability and usage of free, internet-based communications services 7 Trends 19 Billion Yesterday 750 Bn min. OTT messages were sent Local operators global OTT voice traffic in 2013. In 2018
Slide 8: These trends are driving the Swisscom strategy
These trends are driving the Swisscom strategy 8 Trends Implications Best infrastructure Best experiences Best opportunities
Slide 9: Best infrastructure
Best infrastructure Fast and secure access, always available everywhere 9 Technological transformation Major investments in infrastructure e.g. Fiber, LTE and Cloud allow Swisscom to offer its customers the best quality, availability and security Efficiency improvement Modern infrastructure – such a
Slide 10: Best experiences
Best experiences Innovative and exciting services accompanied by competent customer advice 10 Transition to new business models Changing customer needs such as Access Services „always on“ drive demand for innovative and all-inclusive subscription models as well as personalised customer interactions
Slide 11: Best opportunities
Best opportunities Innovation and sustainable growth in core and adjacent markets 11 Growth in Switzerland Swisscom take advantage of the best business opportunities. These allow the company to grow sustainably within and outside the core business Fastweb growth and cash flow generation New growth o
Slide 12: Swisscom 2020: Delivering the best
Swisscom 2020: Delivering the best Trustworthy companion in the digital world 12 Everything always on Best Infrastructure Fast and secure access, always available everywhere Internet- based Best Experiences trustworthy Innovative and exciting services simple accompanied by competent inspiring Global
Slide 13: Agenda “delivering the BEST”
Agenda “delivering the BEST” 13 Ch. Topic Speaker Welcome & Introduction Bart Morselt, IR 1 BEST strategy Urs Schaeppi, CEO Introduction strategic framework 2 BEST infrastructure Heinz Herren, CTO At home On the move Investment Transformation and innovation 3 BEST experiences Urs Schaeppi, CEO Comme
Slide 14: At home: The Future of Wireline Ultra Broadband
At home: The Future of Wireline Ultra Broadband Switzerland is already one of the leading broadband nations in Europe. Further growth in demand will accelerate adoption of ultra broadband. 14 Switzerland – Leading BB in Europe* Demand for Speed Will Grow Further Mbps > Xxx FTTx/ Measured Measured FT
Slide 15: At home: Ubiquitous Wireline Broadband
At home: Ubiquitous Wireline Broadband Swisscom has a multi-year commitment to bring ultra broadband closer to the home while closing the digital gaps in rural Switzerland. 15 FTTx Rollout FTTH Subscriber Uptake Homes connected Homes passed 79% 80% 800'000 Target Coverage 76% 80% HH 72% 700'000 60%
Slide 16: At home: Ubiquitous Wireline Broadband
At home: Ubiquitous Wireline Broadband Fibre rollout stimulates broadband growth in Switzerland. Swisscom observes strong customer affinity towards high speed FTTH services. 16 12/2013 2011-12 Broadband customers in FTTH turf xDSL subscribers in marketable footprint 40’000 Fibre subscribers in marke
Slide 17: On the move: The Future Of Ultra Wireless Broadband
On the move: The Future Of Ultra Wireless Broadband Swisscom aims to delight customers by exceeding customer quality and speed expectation, while positively impacting the overall ARPU. 17 Demand for data driving takeup… …and delight reflected in higher ARPU 8 6'000.0 Wireless GGSN data traffic volum
Slide 18: On the move: Ubiquitous Wireless Broadband
On the move: Ubiquitous Wireless Broadband Swisscom is committed to continue delighting its customers with the best mobile network in Switzerland in 2014 and beyond. 18 2G pop. coverage 3G pop. coverage 4G pop. coverage 99.8% 99% >>90% YE 2014 (presently 85%) Ubiquitous Mobile Broadband Coverage Cap
Slide 19: On the move: Best Wireless Network (2014 & beyond)
On the move: Best Wireless Network (2014 & beyond) Equipped with large spectrum resources, excellent infrastructure & high-speed backhaul, Swisscom is well prepared for the future. 19 Spectrum Resources –after Refarming 2014 > Switzerland is a Top 5 European market with regards to spectrum allocatio
Slide 20: Investment: Towards the best infrastructure
Investment: Towards the best infrastructure Through sustained investments, Swisscom continues building robust infrastructure capable of serving future customer demands. 20 100% 100% Wireless network 15% 18% 21% 19% Fixed network: Fibre (FTTx) Fixed Network & Copper 29% 27% access, Backbone & transpo
Slide 21: Transformation and Innovation: IP Runs Full-Steam
Transformation and Innovation: IP Runs Full-Steam Swisscom continues migrating customers from the analogue world into the digital IP future. 21 2013 2014 2015 2016 2017 2018 Customers in Analogue World The Transformation Target 2018 > All-IP program launched > Fixed network & services The Inevitable
Slide 22: Transformation and Innovation: Swisscom’s Cloud is for everyone
Transformation and Innovation: Swisscom’s Cloud is for everyone – including ourselves Swisscom is building a modern, secure & cost-effective Swiss cloud 22 Better customer value proposition Internal benefits Residential Customers Value proposition Networking and IT > MyDigitalLife: anywhere, > Reduc
Slide 23: Transformation and Innovation: into the ICT World
Transformation and Innovation: into the ICT World Swisscom turns itself into a full-fledged ICT company with an innovative portfolio of products (hardware and software) 23 The ICT World: one of Gartner‘s Top10 Business-Drivers The ICT world of “Anything is Software defined” and “Programmable Everyth
Slide 24: Transformation and Innovation – Accelerate into ICT
Transformation and Innovation – Accelerate into ICT Innovations further accelerate the transformation into an ICT company, with innovative products around our core business. 24 Focus Areas Exemplary Innovations > Messaging, Videoconferencing iO: Make calls, chat and more > Mobile Payment > Security,
Slide 25: Summary
Summary With excellent and future-proof infrastructure we will continue to delight our customers on our way to an integrated ICT company. 25 We bring fiber > 34% FTTx household coverage EoY 2014 closer to all Swiss > Strong inclination of copper based BB customers to migrate to home FTTH > First lau
Slide 26: Agenda “delivering the BEST”
Agenda “delivering the BEST” 26 Ch. Topic Speaker Welcome & Introduction Bart Morselt, IR 1 BEST strategy Urs Schaeppi, CEO Introduction strategic framework 2 BEST infrastructure Heinz Herren, CTO At home On the move Investment Transformation and innovation 3 BEST experiences Urs Schaeppi, CEO Comme
Slide 27: Revenues 2013 (w/o exceptionals)
Revenues 2013 (w/o exceptionals) 27 in CHF mm Swisscom Switzerland Without FX, -78 hubbing and M&A effects, revenue went down CHF 92 mm YOY (-0.8%). +15 +2 -92 -33 -21 Q1 Q2 Q3 Q4 +7 -41 -21 After a declining 11,279 Service revenue in -23 Hardware 11,187 Q1 and Q2, Q3 -37 -18 Other (-0.8%) Esp. in Q
Slide 28: Overview revenues
Overview revenues 28 CHF mm 85% of dynamics in revenue development are based on service revenue -21 development for 1P and bundles +7 within Swisscom -29 Switzerland -6 -274mm (-11%) SCS -150mm (-5%) +381mm (+33%) Focus on where the big moves are on the revenue side: 1P and bundles at SCS
Slide 29: Swiss service revenues – single play and bundles
Swiss service revenues – single play and bundles*) 29 Change YoY in CHF mm Sales of 1P and bundles Sales of 1P plus YoY revenues in Q4: separately bundles together Bundles +90 +21mm growth YoY in Q4 2013 (up from +7mm in Q3) Single Play -69 Total core +21 Q4 with continued revenue growth in core bus
Slide 30: Swiss service revenues – single play
Swiss service revenues – single play 30 Change YoY in CHF mm YoY 1P revenues in Q4: 1P mobile access Single Play -69 continues to grow o/w 1P wireline -61 1P mobile -8 (+84 access, and -92 traffic) 1P mobile total (sum of mobile access + mobile traffic) nearly back to growth 1P wireline decline stab
Slide 31: Swiss service revenues – RGU development
Swiss service revenues – RGU development 31 RGU‘s (000) YoY change in RGU‘s (000) 400 Revenue Generating Units (RGU’s) YoY Q4 350 (compared to Q4 2012): 300 Wireless +190 250 Wireline +159 200 Total: +349 150 100 50 0 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 wireless wireline (voice+BB+TV) total At the base of r
Slide 32: Swiss service revenues – RGU development
Swiss service revenues – RGU development 32 YoY change in RGU‘s (000) Revenue Generating Units (RGU’s) in Q4: 1P -313 2P +62 3P +348 4P +252 Total +349 (+3% yoy) RGU growth in bundles higher than 1P decline. Net growth of 3% p.a.
Slide 33: Swiss service revenues – bundle penetration
Swiss service revenues – bundle penetration 33 Penetration on total customer base (%) e.g. 55% of broadband 80% customers take this product as part of a bundle Percentage of product in a 70% bundle (rather than multiple 1P's (%) standalone) on 31.12.2013: 60% TV 72% Broadband 55% 50% TV (%) Fixed vo
Slide 34: Consistent high ratings for network and service quality
Consistent high ratings for network and service quality 34 Multiple sources • Number 1 in Europe in delivery of average speed (Akamai study) confirm Swisscom’s strength of network • Number 2 in Europe in delivery of peak speed performance • Number 1 in Europe in delivery above 4 and above 10 Mbps in
Slide 35: Agenda “delivering the BEST”
Agenda “delivering the BEST” 35 Ch. Topic Speaker Welcome & Introduction Bart Morselt, IR 1 BEST strategy Urs Schaeppi, CEO Introduction strategic framework 2 BEST infrastructure Heinz Herren, CTO At home On the move Investment Transformation and innovation 3 BEST experiences Urs Schaeppi, CEO Comme
Slide 36: 2013 - A strong performance above expectations
2013 - A strong performance above expectations 36 Leadership in Customers Growth FASTWEB customer acquisition over performing the market in each segment Positive EBITDA Evolution EBITDA growth (505 mm Euro, +1.0% YoY) EBITDA margin increase (~31.0%, +1.4 p.p. YoY) FCF Generation 40.0 mm Euro FCF gen
Slide 37: FASTWEB leadership confirmed in the Consumer...
FASTWEB leadership confirmed in the Consumer... 37 FASTWEB Outperforming the Market Broadband Net Adds 2012-2013 (‘000) 172 175 In a competitive broadband market, FASTWEB was leader in broadband customer acquisitions 49 59 and outperformed the market also in 2013 1 2012 2013 Net Adds FASTWEB Net Add
Slide 38: ...and in the Corporate market
...and in the Corporate market 38 FASTWEB Market Share Growing in the Corporate Market Corporate Voice and Data Corporate VAS/ICT2 28,1% In a highly competitive Corporate 26,4% market, FASTWEB share for core Voice and Data services increased 14,8% also in 2013 10,3% The Company built scale in ICT/VA
Slide 39: FTTS above plan in terms of roll out, commercial results and technical performance
FTTS above plan in terms of roll out, commercial results and technical performance 39 12 Cities Completed to Date Strong Sales in FTTS Areas1 Technical Performance Boost March-December Sales YoY Change (%) Download Speeed Before/After Migration 76% Bitrate Post Migration 18% FTTS Areas ULL Areas1 •
Slide 40: 2014 Strategy - Setting the scene
2014 Strategy - Setting the scene 40 Global Trends • Explosive cocktail between customer needs • Incumbents/gobal players will increase and global opportunities investments in UBB (fixed and mobile) • Increasing quality coupled with competitive • Increasing focus on media convergence price requests
Slide 41: Complete roll out and exploit FTTS benefits across the entire footprint
1 Complete roll out and exploit FTTS benefits across the entire footprint 41 FASTWEB NGAN Covering 20% of the Market Fully Exploiting FTTS-Driven Benefits • Complete FTTS build out in further 11 cities1 • ~200k active FTTS customers EoP 2014 • FASTWEB ultra broadband services available • COGS reduct
Slide 42: Convergence
2 Preparing for a converging world by leveraging FASTWEB assets 42 Mobile WiFi Scale up mobile for UBB gaining full control to provide ubiquitous Leverage fixed assets to access Media provide unique services Convergence Fixed/Media converging offer over IP CDN Mobile On net delivering of OTT content
Slide 43: Services
3 Push on Corporate B2B Cloud services to fuel growth in adjacent markets 43 FASTWEB Corporate Service Model Evolution Yesterday Now Next steps Housing IAAS1 CAAS/SAAS3 Services Private Cloud PAAS2 Big data platforms IoT4 platforms Digital society services Reactive approach Competence center + Next-
Slide 44: Agenda “delivering the BEST”
Agenda “delivering the BEST” 44 Ch. Topic Speaker Welcome & Introduction Bart Morselt, IR 1 BEST strategy Urs Schaeppi, CEO Introduction strategic framework 2 BEST infrastructure Heinz Herren, CTO At home On the move Investment Transformation and innovation 3 BEST experiences Urs Schaeppi, CEO Comme
Slide 45: Revenue breakdown
Revenue breakdown 45 in CHF mm Topline increased w/o exceptionals YOY by CHF 50 mm -92 mainly thanks to acquisitions. -105 +247 +50 -92 -21 +7 Without FX, -78 -21 hubbing and M&A 11,384 11,279 11,187 11,434 effects, revenue (-0.8%) (+0.4%) went down CHF 92 mm YOY (-0.8%). Reported Revenue Revenue Re
Slide 46: Revenue (w/o exceptionals) breakdown
Revenue (w/o exceptionals) breakdown 46 in CHF mm Swisscom Switzerland Without FX, -78 ∑ hubbing and M&A effects, revenue went down CHF Q1: -14 -7 -9 -3 -5 -15 -7 - 60 92 mm YOY (-0.8%). Q2: -2 -4 -16 +1 +24 +0 +1 + 4 Q3: +13 +2 -15 +2 -9 +1 +15 + 9 Q4: +18 +2 -13 +8 -51 -7 -2 - 45 After a declining
Slide 47: EBITDA breakdown
EBITDA breakdown 47 in CHF mm Q1: - 76 Q2: -55 Q3: +23 EBITDA w/o Q4: +21 exceptionals down w/o exceptionals -87 CHF 87 mm, with trends improving QoQ +96 -79 -87 -9 4,477 4,302 YoY EBITDA lower 4,381 4,398 4,311 due to lower revenue, higher direct cost and increased repair & maintenance as EBITDA EB
Slide 48: EBITDA (w/o exceptionals) breakdown
EBITDA (w/o exceptionals) breakdown 48 in CHF mm EBITDA w/o exceptionals down -38 -10 -10 -5 -13 - 76 Q1: CHF 87 mm. -18 -9 -9 -16 -3 -55 Q2: Q3: +17 -1 -11 +6 +12 +23 Q4: +35 +2 -8 -6 -2 +21 EBITDA of Swisscom Switzerland w/o -87 exceptionals down -4 -18 CHF 81 mm, with -38 -21 -6 trend improving
Slide 49: Net result
Net result 49 in CHF mm In 2013, net income of the group amounts to CHF 1,695 mm. tax rate 16.5% EPS Decrease of net 32.53 income is mainly driven by lower EBITDA as well as 4,302 -2,044 2,258 -251 -8 +30 -334 1,695 -10 1,685 higher depreciation. Reported EBIT Net Net Other financial Depreciation in
Slide 50: Capital expenditure
Capital expenditure 50 in CHF mm Increase YoY* (+CHF 227mm) mostly driven by Fastweb Without the one-off (in CHF mm) investment in 2013 1'516 695 185 = 2‘396 2012 for mobile frequency CH: Mobile frequency licences licenses, CAPEX increased 2012 1'492 531 146 = 2‘169 +360 = 2‘529 by CHF 227 mm. Swiss
Slide 51: Operating free cashflow
Operating free cashflow 51 in CHF mm Decrease in NWC of 78 CHF mm (less tied up capital) 4,302 -2,396 31.12.2013 +129 +60 +8 +64 CAPEX down by -183 -6 1,978 CHF 133 mm mainly due to the 2012 one-off investment for ∆ -175 +133 +59 -233 +77 +24 +42 +169 +96 mobile Decrease in NWC of 109 CHF mm frequen
Slide 52: Use of cash flow 2013 – 58% paid to shareholders
Use of cash flow 2013 – 58% paid to shareholders 52 in CHF mm CHF 22 /share Operating Free Cash Cashflow 1,978 Flow generated -251 Net Interest -278 Taxes paid Usage of -1,140 Dividend cashflow -50 Other effects (mainly acquisitions) -259 Net debt reduction 16% 58% 26% % of OpFCF 16% 74% 100% cumula
Slide 53: Refinancing transactions in 2013
Refinancing transactions in 2013 53 Eurobond Very attractive pricing obtained • Amount: EUR 500 Mio. as proof of strong credit quality • Tenor: 7 years Achieved the goal to further diversify the funding sources • Coupon: 2% Partial pre-financing of the bond • Rating: A/A2 maturing in April 201
Slide 54: Financing situation as per YE 2013
Financing situation as per YE 2013 54 Financing mix Maturity profile in MCHF Average cost of debt 2.4 % Average duration 3.6 years Ratio fixed to floating financing 88.4 % fixed / 11.6% floating
Slide 55: Dividends
Dividends 55 Payments per share since 1998 Proposal to in CHF general assembly 2 2014 for 2013: proposal to 8 8 8 general assembly to again pay CHF 22 / share 11 15 11 11 12 13 14 16 17 18 19 20 21 22 22 22 Dividend time 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 56: Outlook 2014 – returning to modest growth
Outlook 2014 – returning to modest growth 56 CHF bln 2013 2014 E*) Splits into: Revenues 11.434 ~11.5 ~ CHF 9.45 bln for Swisscom w/o Fastweb + ~ € 1.65 bln for Fastweb EBITDA 4.302 ~4.35 > CHF 3.7 bln for Swisscom w/o Fastweb + > € 0.5 bln for Fastweb CAPEX 2.396 2.4 ~ CHF 1.75 bln for Swisscom w/o
Slide 57: Agenda “delivering the BEST”
Agenda “delivering the BEST” 57 Ch. Topic Speaker Welcome & Introduction Bart Morselt, IR 1 BEST strategy Urs Schaeppi, CEO Introduction strategic framework 2 BEST infrastructure Heinz Herren, CTO At home On the move Investment Transformation and innovation 3 BEST experiences Urs Schaeppi, CEO Comme
Slide 58: Attachments
Attachments S swisscom
Slide 59: Bundles replacing 1P
Bundles replacing 1P 59 Business model for local telco can no longer rely on usage based charging CHF mm per quarter, Swisscom Switzerland traffic & access revenues Relative share 1'650 1'682 1'648 1'614 1'653 1'682 1'642 1'627 1'648 1'664 1'635 1'670 1'656 1'600 1'596 1'628 Relative share 1P Traffi
Slide 60: RGU’s
RGU’s 60 Swisscom Switzerland Access Lines/Subs/Products (000) YTD, (Change to 31.12.2012 in brackets) Number of Fixed Voice products TV & Access Broadband Mobile in Bundle Sum Δ 1P Single Play 276 (+6) 2,073 (-277) 810 (-129) 5,988 (+87) 1 9,147 (-313) (-3.3%) 2Play 279 (+31) 2 558 (+62) (+12.5%) B
Slide 61: ARPU
ARPU 61 YTD, (Change to 31.12.2012 in brackets) TV (incl. Number Weighted VOD and of average per Pay per Fixed Voice products underlying 1) 2) View & Access Broadband Mobile in Bundle product 1,2) 1P Single Play 20 (-6) 52 (-1) 36 (-2) 39 (-3) 1 42 (-2) 2Play 112 (-2) 2 56 (-1) Bundles 3Play 136 (+3
Slide 62: Revenues (RGU x ARPU)
Revenues (RGU x ARPU) 62 Net revenues (CHF mm) YTD, (Change to prior year in brackets) Fixed Voice TV & Access Broadband Mobile Sum Δ 1P Single Play 93 (+17) 1,362 (-194) 760 (-78)1) 2,782 (-150) 4,997 (-405) (-7.5%) 2Play 358 (+30) 358 (+381) (+32.5%) Bundles 3Play 746 (+159) 746 4Play 449 (+192) 4
Slide 63: TV market Switzerland
TV market Switzerland 63 Market volumes (000) digital TV Market 4‘240 Market digital + analogue 4‘159 4‘060 share: Market Digital TV * 3‘992 3‘755 17 % 3‘537 720 Satellite/Terrestrial * 730 73 2% Sunrise * 38 Analogue TV 1) 1'010 24 % CATV / Net Integrators * 1'052 2‘401 1) 1‘920 742 809 19 % UPC Ca
Slide 64: Handsets & SACs
Handsets & SACs 64 Handsets (in ‘000) and smartphone share 71% 63% 557 425 468 470 300 285 368 322 307 359 328 312 358 366 407 352 SAC/SRC in CHF mm (mobile and wireline products together) 20 20 21 15 20 Corporate 20 17 19 17 19 15 16 14 15 17 14 Segments 93 92 111 94 94 98 127 85 108 128 94 93 98 1
Slide 65: Group revenue
Group revenue 65 in CHF mm w/o exceptionals: -92 (-0.8%) Q1: -60; Q2: +4; Q3: + 9; Q4: -45 ∑ Without FX, hubbing and M&A Q1: +95 -126 -7 -15 -7 -8 - 68 effects, revenue Q2: +105 -125 +23 -0 +1 +39 +43 Q3: +91 -93 -5 +1 +15 +52 +61 went down CHF Q4: +90 -80 -46 -7 -2 +59 +14 92 mm YOY (-0.8%). +381 -
Slide 66: Group EBITDA
Group EBITDA 66 in CHF mm Q1: - 76 EBITDA w/o Contribution Margin Q2: -55 exceptionals down -50 Q3: +23 CHF 87 mm YOY, in Q4: +21 Q3 and Q4 above prior year. -87 -37 -13 -31 +5 -11 EBITDA of Swisscom Switzerland w/o 4,398 exceptionals down 4,311 Swisscom Switzerland (-2.0%) CHF 81 mm. w/o exceptiona
Slide 67: Segment ‘Residential’
Segment ‘Residential’ 67 Top line up due to one off effect Q4/13 Q4oQ4 31.12.2013 YoY (acquisition). 1) Net revenue in MCHF 1'332 -1.0% 5'145 0.6% Adjusted, top line is below prior year Direct costs in MCHF -376 -14.0% -1'313 0.0% 2) level driven by lower Indirect costs in MCHF -258 3.6% -934 2.2% h
Slide 68: Segment ‘Small & Medium Enterprises’
Segment ‘Small & Medium Enterprises’ 68 Lower revenue due to price Q4/13 Q4oQ4 31.12.2013 YoY erosion effects 1) Net revenue in MCHF 291 0.7% 1'151 -0.9% in wireless as well as Direct costs in MCHF -40 -2.4% -151 3.4% continuous Indirect costs in MCHF 2) -38 2.7% -136 2.3% decrease of wireline Contr
Slide 69: Segment ‘Corporate’
Segment ‘Corporate’ 69 Q4/13 Q4oQ4 31.12.2013 YoY 1) Net revenue in MCHF 462 -2.5% 1'787 -2.6% Price erosion leads to lower Direct costs in MCHF -108 -0.9% -398 -1.7% top line of 2.6% Indirect costs in MCHF 2) -124 -2.4% -482 -0.6% YOY). Contribution margin 2 in MCHF 230 -3.4% 907 -4.0% Contribution
Slide 70: Segment ‘Wholesale’
Segment ‘Wholesale’ 70 Q4/13 Q4oQ4 31.12.2013 YoY Revenue from external customers in MCHF 145 1.4% 588 -1.0% Intersegment revenue in MCHF 94 1.1% 378 1.6% CM2 up by 4.6% (CHF +17 mm Net revenue in MCHF 239 1.3% 966 0.0% YOY) due to shift Direct costs in MCHF -139 -3.5% -564 -2.9% in revenue mix. 1)
Slide 71: Segment ‘Networks and support functions’
Segment ‘Networks and support functions’ 71 Lower personnel Q4/13 Q4oQ4 31.12.2013 YoY expenses (CHF -46 Personnel expenses in MCHF -188 -17.5% -712 -6.1% mm YOY) driven by lower restructuring Rent in MCHF -49 8.9% -187 2.2% cost. Maintenance in MCHF -55 5.8% -197 6.5% IT expenses in MCHF -74 -3.9%
Slide 72: Segment ‘Fastweb’
Segment ‘Fastweb’ 72 W/o low margin Q4/13 Q4oQ4 31.12.2013 YoY wholesale hubbing net Consumer revenue in MEUR 186 2.8% 744 2.8% revenues decreased 1.0% YOY. Enterprise revenue in MEUR 212 -3.2% 771 -2.5% 1) Wholesale revenue in MEUR 31 -20.5% 127 -31.4% 1) The revenue increase Net revenue in MEUR 42
Slide 73: Segment ‘Other’
Segment ‘Other’ 73 Q4/13 Q4oQ4 31.12.2013 YoY Swisscom IT services Swisscom IT Services in MCHF 169 26.1% 612 17.5% external revenue up due to one off effect Group Related Business in MCHF 89 2.3% 329 6.8% (acquisition) Hospitality Services in MCHF 15 -31.8% 56 -18.8% Other in MCHF 9 -10.0% 35 -7.9%
Slide 74: Pension costs impacting EBITDA
Pension costs impacting EBITDA 74 2012 Δ 2012 Δ 2013 in CHF mio reported restated reported Service cost(recurring) Servie cost (recurring) 208 207 51 258 Plan amendments -55 -157 - Net interest -7 - - Operating pension cost (EBITDA) 146 -96 50 208 258 Net interest Net interest (financial (financialr
Slide 75: Pension plan deficit
Pension plan deficit 75 valuation differences between Swiss pension law and IFRS reconciliation IFRS deficit 2012 2013 difference of CHF 1.7 billion due to different actuarial … decrease of CHF 0.8 billion due to discount rate and performance 106% … assumptions … valuation profit cash equity / oth
Slide 76: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements 76 ”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